Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 01, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Central Index Key | '0000943034 | ' |
Entity Registrant Name | 'IMAGE SENSING SYSTEMS INC | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 4,987,795 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,221 | $3,564 |
Marketable securities | ' | 2,639 |
Accounts receivable, net of allowance for doubtful accounts of $683 and $1,173, | 6,395 | 5,252 |
Inventories | 3,537 | 3,589 |
Prepaid expenses and other current assets | 1,204 | 1,414 |
Total current assets | 12,357 | 16,458 |
Property and equipment: | ' | ' |
Furniture and fixtures | 615 | 620 |
Leasehold improvements | 523 | 511 |
Equipment | 4,177 | 3,988 |
Property and equipment, gross | 5,315 | 5,119 |
Accumulated depreciation | 4,408 | 4,094 |
Property and equipment, net | 907 | 1,025 |
Deferred income taxes | 137 | 139 |
Intangible assets, net | 5,322 | 6,463 |
Other assets | 150 | 300 |
TOTAL ASSETS | 18,873 | 24,385 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Accounts payable | 3,618 | 2,409 |
Accrued compensation | 481 | 1,202 |
Warranty and other current liabilities | 2,010 | 1,959 |
Total current liabilities | 6,109 | 5,570 |
Deferred income taxes | 172 | 175 |
Other long-term liabilities | 126 | 126 |
Shareholders' equity: | ' | ' |
Preferred stock, $.01 par value; 5,000,000 shares authorized, none issued or outstanding | ' | ' |
Common stock, $.01 par value; 20,000,000 shares authorized, 4,987,795 and 4,974,847 outstanding, respectively | 50 | 49 |
Additional paid-in capital | 23,576 | 23,276 |
Accumulated other comprehensive income | 96 | 604 |
Accumulated deficit | -11,256 | -5,415 |
Total shareholders' equity | 12,466 | 18,514 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $18,873 | $24,385 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $683 | $1,173 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares outstanding | 4,987,795 | 4,974,847 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Product sales | $4,514 | $4,341 | $9,063 | $10,657 |
Royalties | 2,626 | 3,400 | 8,337 | 9,167 |
Total revenue | 7,140 | 7,741 | 17,400 | 19,824 |
Cost of revenue: | ' | ' | ' | ' |
Product sales | 2,557 | 2,944 | 5,437 | 6,511 |
Total cost of revenue | 2,557 | 2,944 | 5,437 | 6,511 |
Gross profit | 4,583 | 4,797 | 11,963 | 13,313 |
Operating expenses: | ' | ' | ' | ' |
Selling, marketing and product support | 2,139 | 2,792 | 7,328 | 7,545 |
General and administrative | 1,317 | 1,464 | 4,187 | 4,426 |
Research and development | 1,297 | 1,651 | 4,536 | 4,138 |
Investigation matter | ' | 476 | 152 | 3,214 |
Amortization of intangible assets | 390 | 328 | 1,172 | 1,009 |
Impairment of investment | 150 | ' | 150 | ' |
Restructuring | ' | ' | 460 | ' |
Total operating expenses | 5,293 | 6,711 | 17,985 | 20,332 |
Loss from operations | -710 | -1,914 | -6,022 | -7,019 |
Other income (expense), net | 12 | 1 | 26 | -1 |
Loss before income taxes | -698 | -1,913 | -5,996 | -7,020 |
Income tax expense (benefit) | -145 | 22 | -155 | -1,887 |
Net loss | ($553) | ($1,935) | ($5,841) | ($5,133) |
Net loss per share: | ' | ' | ' | ' |
Basic | ($0.11) | ($0.39) | ($1.17) | ($1.04) |
Diluted | ($0.11) | ($0.39) | ($1.17) | ($1.04) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic | 4,985 | 4,970 | 4,980 | 4,949 |
Diluted | 4,985 | 4,970 | 4,980 | 4,949 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Loss before income taxes | ($553) | ($1,935) | ($5,841) | ($5,133) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 724 | 476 | -509 | 170 |
Comprehensive income (loss) | $171 | ($1,459) | ($6,350) | ($4,963) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities: | ' | ' |
Net loss | ($5,841) | ($5,133) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ' | ' |
Depreciation | 428 | 665 |
Amortization | 1,172 | 1,009 |
Stock-based compensation | 299 | 149 |
Impairment of investment | 150 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | -1,143 | 725 |
Inventories | 52 | -10 |
Prepaid expenses and current assets | 202 | -2,176 |
Accounts payable | 1,209 | -333 |
Accrued liabilities | -663 | 688 |
Net cash used for operating activities | -4,135 | -4,416 |
Investing activities: | ' | ' |
Sales and maturities of marketable securities | 2,639 | 5,943 |
Purchases of marketable securities | ' | -5,009 |
Purchases of property and equipment | -331 | -302 |
Purchase of other investments | ' | -300 |
Capitalized software development costs | -42 | -714 |
Net cash provided by (used for) investing activities | 2,266 | -382 |
Financing activities: | ' | ' |
Proceeds from exercise of stock options | ' | 9 |
Net cash provided by financing activities | ' | 9 |
Effect of exchange rate changes on cash | -474 | 146 |
Decrease in cash and cash equivalents | -2,343 | -4,643 |
Cash and cash equivalents at beginning of period | 3,564 | 8,334 |
Cash and cash equivalents at end of period | $1,221 | $3,691 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Note A: Basis of Presentation | |
Image Sensing Systems, Inc. (referred to herein as “we,” the “Company,” “us” and “our”) develops and markets software-based computer enabled detection products for use in traffic, security, police and parking applications. We sell our products primarily to distributors and also receive royalties under a license agreement with a manufacturer/distributor for certain of our products. Our products are used primarily by governmental entities. | |
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q, which requires the Company to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is the opinion of management that the unaudited condensed consolidated financial statements include all adjustments consisting of normal recurring accruals considered necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated. | |
Operating results for the three-month and nine-month periods ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The accompanying condensed consolidated financial statements of the Company should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 as filed with the SEC. | |
Summary of Significant Accounting Policies | |
The Company believes that of its significant accounting policies, the following are particularly important to the portrayal of the Company’s results of operations and financial position and may require the application of a higher level of judgment by the Company’s management and, as a result, are subject to an inherent degree of uncertainty. | |
Revenue Recognition | |
We recognize revenue on a sales arrangement when it is realized or realizable and earned, which occurs when all of the following criteria have been met: persuasive evidence of an arrangement exists; delivery and title transfer have occurred or services have been rendered; the sales price is fixed and determinable; collectability is reasonably assured; and all significant obligations to the customer have been fulfilled. | |
Certain sales may contain multiple elements for revenue recognition purposes. We consider each deliverable that provides value to the customer on a standalone basis as a separable element. Separable elements in these arrangements may include the hardware, software, installation services, training and support. We initially allocate consideration to each separable element using the relative selling price method. Selling prices are determined by us based on either vendor-specific objective evidence (“VSOE”) (the actual selling prices of similar products and services sold on a standalone basis) or, in the absence of VSOE, our best estimate of the selling price. Factors considered by us in determining estimated selling prices for applicable elements generally include overall economic conditions, customer demand, costs incurred by us to provide the deliverable, as well as our historical pricing practices. Under these arrangements, revenue associated with each delivered element is recognized in an amount equal to the lesser of the consideration initially allocated to the delivered element or the amount for which payment is not deemed contingent upon future delivery of other elements in the arrangement. Under arrangements where special acceptance protocols exist, installation services and training may not be considered separable. Under those circumstances, revenue for the entire arrangement is recognized upon the completion of installation, training and fulfillment of any other significant obligations specific to the terms of the arrangement. Arrangements that do not contain any separable elements are typically recognized when the products are shipped and title has transferred to the customer. | |
Revenue from arrangements for services such as maintenance, repair, consulting and technical support are recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. | |
Econolite Control Products, Inc. (Econolite) is our licensee that sells certain of our products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. | |
We record provisions against sales revenue for estimated returns and allowances in the period when the related revenue is recorded based on historical sales returns and changes in end user demand. | |
Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Inventories | |
Inventories are primarily electronic components and finished goods and are valued at the lower of cost or market on the first-in, first-out accounting method. | |
Income Taxes | |
We record a tax provision for the anticipated tax consequences of the reported results of operations. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those deferred tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. We believe it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining net realizable value of deferred tax assets. In the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our financial condition and operating results. We recognize penalties and interest expense related to unrecognized tax benefits in income tax expense. | |
Intangible Assets | |
Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows and reviewed for impairment. At both September 30, 2014 and December 31, 2013, we determined there was no impairment of intangible assets. At both September 30, 2014 and December 31, 2013, there were no indefinite-lived intangible assets. | |
We capitalize certain software development costs related to software to be sold, leased, or otherwise marketed. Capitalized software development costs include purchased materials and services and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. A certain amount of judgment and estimation is required to assess when technological feasibility is established, as well as the ongoing assessment of the recoverability of capitalized costs. In evaluating the recoverability of capitalized software costs, the Company compares expected product performance, utilizing forecasted revenue amounts, to the total costs incurred to date and estimates of additional costs to be incurred. If revised forecasted product revenue is less than, and/or revised forecasted costs are greater than, the previously forecasted amounts, the net realizable value may be lower than previously estimated, which could result in the recognition of an impairment charge in the period in which such a determination is made. | |
We reached technological feasibility for certain software products and, as a result, have capitalized a total $909,000 of software development costs through the period ended September 30, 2014. Once the software products are available for release, the capitalized development costs will begin to be amortized to cost of sales over the products’ estimated economic life using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated time of product revenue recognition. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Note B: Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 provides new guidance related to how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 specifies new accounting for costs associated with obtaining or fulfilling contracts with customers and expands the required disclosures related to revenue and cash flows from contracts with customers. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early application not permitted. The Company is currently determining its implementation approach and assessing the impact of ASU 2014-09 on the condensed consolidated financial statements. |
Fair_Value_Measurements_And_Ma
Fair Value Measurements And Marketable Securities | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Measurements And Marketable Securities | ' | |||||||||||||
Note C: Fair Value Measurements and Marketable Securities | ||||||||||||||
The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-tier fair value hierarchy based upon observable and non-observable inputs as follows: | ||||||||||||||
• | Level 1 – observable inputs such as quoted prices in active markets; | |||||||||||||
• | Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |||||||||||||
• | Level 3 – unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | ||||||||||||||
The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. | ||||||||||||||
Investments are comprised of high-grade municipal bonds, U.S. government securities and commercial paper and are classified as Level 1 or Level 2, depending on trading frequency and volume and our ability to obtain pricing information on an ongoing basis. | ||||||||||||||
The amortized cost and market value of our available-for-sale securities by major security type were as follows (in thousands): | ||||||||||||||
31-Dec-13 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Bank certificates of deposit | $ | — | $ | 2,639 | $ | — | $ | 2,639 | ||||||
$ | — | $ | 2,639 | $ | — | $ | 2,639 | |||||||
We evaluate impairment at each reporting period for securities where the fair value of the investment is less than its cost. Unrealized gains and losses on our available-for-sale investments are primarily attributable to general changes in interest rates and market conditions. The aggregate unrealized gain or loss on available-for-sale investments was immaterial as of December 31, 2013. | ||||||||||||||
Classification of available-for-sale investments as current or noncurrent is dependent upon our intended holding period, the security’s maturity date, or both. There were no available-for-sale investments with gross unrealized losses that had been in a continuous unrealized loss position for more than 12 months as of December 31, 2013. | ||||||||||||||
Proceeds from maturities or sales of available-for-sale securities were $2.6 million for the nine-month period ended September 30, 2014, and $2.6 million and $5.9 million for the three and nine-month periods ended September 30, 2013, respectively. There were no proceeds from maturities or sales of available-for-sale securities during the three-month period ended September 30, 2014. Realized gains and losses are determined using the specific identification method. Realized gains and losses related to sales of available-for-sale investments during the three and nine-month periods ended September 30, 2014 and September 30, 2013 were immaterial and included in other income (expense), net. | ||||||||||||||
Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||
Our intangible assets and other long-lived assets are nonfinancial assets that were acquired either as part of a business combination, individually or with a group of other assets. These nonfinancial assets were initially, and have historically been, measured and recognized at amounts equal to the fair value determined as of the date of acquisition. | ||||||||||||||
Financial Instruments not Measured at Fair Value | ||||||||||||||
Certain of our financial instruments are not measured at fair value and are recorded at carrying amounts approximating fair value, based on their short-term nature or variable interest rate. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable and other current assets and liabilities. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Note D: Inventories | ||||||||
Inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Components | $ | 2,666 | $ | 2,797 | ||||
Finished goods | 871 | 792 | ||||||
$ | 3,537 | $ | 3,589 | |||||
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Intangible Assets | ' | |||||||||||||
Note E: Intangible Assets | ||||||||||||||
Intangible assets consisted of the following (dollars in thousands): | ||||||||||||||
30-Sep-14 | ||||||||||||||
Gross | Accumulated | Net | Weighted | |||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||
Amount | Value | Useful Life | ||||||||||||
(in Years) | ||||||||||||||
Developed technology | $ | 8,142 | $ | (5,410 | ) | $ | 2,732 | 2.9 | ||||||
Trade names | 3,267 | (2,303 | ) | 964 | 3.8 | |||||||||
Other intangible costs | 1,849 | (1,132 | ) | 717 | 2.4 | |||||||||
Software development costs | 909 | — | 909 | |||||||||||
Total | $ | 14,167 | $ | (8,845 | ) | $ | 5,322 | 3 | ||||||
31-Dec-13 | ||||||||||||||
Gross | Accumulated | Net | Weighted | |||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||
Amount | Value | Useful Life | ||||||||||||
(in Years) | ||||||||||||||
Developed technology | $ | 8,152 | $ | (4,587 | ) | $ | 3,566 | 3.6 | ||||||
Trade names | 3,267 | (2,110 | ) | 1,157 | 4.5 | |||||||||
Other intangible assets | 1,874 | (1,001 | ) | 873 | 3.1 | |||||||||
Software development costs | 867 | — | 867 | |||||||||||
Total | $ | 14,160 | $ | (7,698 | ) | $ | 6,463 | 3.5 |
Credit_Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Credit Facilities | ' |
Note F: Credit Facilities | |
On May 12, 2014, the Company entered into a revolving line of credit with Alliance Bank. This revolving line of credit agreement and related documents (collectively, “Alliance Credit Agreement”) with Alliance Bank provide up to $5.0 million of credit. The Alliance Credit Agreement expires in May 2015 and bears interest at a fixed annual rate of 3.95%. Any advances are secured by inventories, accounts receivable, cash, marketable securities, and equipment. We are subject to certain covenants under the Alliance Credit Agreement. At September 30, 2014 we had no borrowings under the Alliance Credit Agreement, and we were in compliance with all financial covenants. | |
Prior to May 12, 2014, we had a revolving line of credit with Associated Bank, National Association (“Associated Bank”) that was initially entered into as of May 1, 2008. We requested, and Associated Bank granted, a termination to the Credit Agreement effective on May 12, 2014 in connection with the revolving line of credit from Alliance Bank described above. |
Warranties
Warranties | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
Warranties | ' | |||||||
Note G: Warranties | ||||||||
We generally provide a standard two-year warranty on product sales. Reserves to honor warranty claims are estimated and recorded at the time of sale based on historical claim information and are analyzed and adjusted periodically based on claim trends. | ||||||||
Warranty liability and related activity consisted of the following (in thousands): | ||||||||
Nine-Month Periods Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 934 | $ | 520 | ||||
Warranty provisions | 203 | 209 | ||||||
Warranty claims | (268 | ) | (550 | ) | ||||
Adjustments to preexisting warranties | 37 | 467 | ||||||
Ending balance | $ | 906 | $ | 646 |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Note H: Stock-Based Compensation | ||||||||||||||
We compensate officers, directors and key employees with stock-based compensation under stock plans approved by our shareholders and administered under the supervision of our Board of Directors. Stock option awards are granted at exercise prices equal to the closing price of our stock on the day before the date of grant. Generally, options vest proportionally over periods of three to five years from the dates of the grant, beginning one year from the date of grant, and have a contractual term of nine to ten years. | ||||||||||||||
Performance stock options are time based; however, the final number of awards earned and the related compensation expense is adjusted up or down as of the last day of the performance period to the extent the performance target is met. The actual number of shares that will ultimately vest ranges from 90% to 100% of the targeted amount if the minimum performance target is achieved. For performance stock awards granted in 2014, the performance target is revenue. We evaluate the likelihood of meeting the performance target at each reporting period and adjust compensation expense, on a cumulative basis, based on the expected achievement of each performance target. | ||||||||||||||
Compensation expense, net of estimated forfeitures, is recognized ratably over the vesting period. Stock-based compensation expense included in general and administrative expense for the three-month periods ended September 30, 2014 and 2013 was $113,000 and $63,000, respectively. Stock-based compensation expense included in general and administrative expense for the nine-month periods ended September 30, 2014 and 2013 was $299,000 and $149,000, respectively. At September 30, 2014, a total of 461,157 shares were available for grant under these plans. | ||||||||||||||
Stock Options | ||||||||||||||
A summary of the option activity for the first nine months of 2014 is as follows: | ||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price per | Contractual | |||||||||||||
Share | Term (in years) | |||||||||||||
Options outstanding at December 31, 2013 | 339,750 | $ | 6.73 | 6.9 | $ | 9,000 | ||||||||
Granted | 167,500 | $ | 4.92 | 9.3 | $ | 4,650 | ||||||||
Exercised | — | $ | — | — | $ | — | ||||||||
Expired | — | $ | — | — | $ | — | ||||||||
Forfeited | (49,250 | ) | $ | 6.63 | — | $ | 325 | |||||||
Options outstanding at September 30, 2014 | 458,000 | $ | 6.08 | 7.6 | $ | — | ||||||||
Options exercisable at September 30, 2014 | 154,750 | $ | 7.26 | 5.6 | $ | — | ||||||||
There were no options exercised during the three and nine month periods ended September 30, 2014 and the three month period ended September 30, 2013. The total intrinsic value of options exercised was $8,049 during the nine month period ended September 30, 2013. As of September 30, 2014, there was $563,000 of total unrecognized compensation cost related to non-vested stock options. The weighted average period over which the compensation cost is expected to be recognized is 2.7 years. | ||||||||||||||
Stock Awards | ||||||||||||||
We issue stock awards as a portion of the annual retainer for each director on a quarterly basis. The stock awards are fully vested at the time of issuance. Compensation expense related to stock awards is determined on the grant date based on the publicly quoted fair market value of our common stock and is charged to earnings on the grant date. During the quarter ended September 30, 2014, there were stock awards issued for 3,644 shares with a weighted-average grant date fair value of $6.86. For the nine months ended September 30, 2014, there were stock awards issued for 12,948 shares with a weighted-average grant date fair value of $5.07. |
Loss_per_Common_Share
Loss per Common Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net loss per share: | ' | |||||||||||||
Loss per Common Share | ' | |||||||||||||
Note I: Loss per Common Share | ||||||||||||||
Net loss per share is computed by dividing net loss by the daily weighted average number of common shares outstanding during the applicable periods. Diluted net loss per share includes the potentially dilutive effect of common shares subject to outstanding stock options using the treasury stock method. Under the treasury stock method, shares subject to certain outstanding stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding. As a result, stock options to acquire 458,000 and 128,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the three-month periods ended September 30, 2014 and 2013, respectively, and 339,000 and 171,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the nine-month periods ended September 30, 2014 and 2013, respectively. The potentially dilutive effect of common shares subject to certain outstanding stock options is determined based on net loss. A reconciliation of these amounts is as follows: | ||||||||||||||
Three-Month Periods Ended | Nine-Month Periods Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net loss | $ | (553 | ) | $ | (1,935 | ) | $ | (5,841 | ) | $ | (5,133 | ) | ||
Denominator: | ||||||||||||||
Weighted average common shares outstanding | 4,985 | 4,967 | 4,980 | 4,939 | ||||||||||
Dilutive potential common shares | — | — | — | — | ||||||||||
Shares used in diluted net loss per common share calculations | 4,985 | 4,967 | 4,980 | 4,939 | ||||||||||
Basic net loss per common share | $ | (0.11 | ) | $ | (0.39 | ) | $ | (1.17 | ) | $ | (1.04 | ) | ||
Diluted net loss per common share | $ | (0.11 | ) | $ | (0.39 | ) | $ | (1.17 | ) | $ | (1.04 | ) |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||||||||||
Note J: Segment Information | |||||||||||||||||||||||||||||||||||||||||
The Company’s Chief Executive Officer and management regularly review financial information for the Company’s three discrete operating segments. Based on similarities in the economic characteristics, nature of products and services, production processes, type or class of customer served, method of distribution and regulatory environments, the operating segments have been aggregated for financial statement purposes and categorized into three reportable segments: Intersection, Highway and License Plate Recognition (“LPR”). Autoscope® video is our machine-vision product line, and revenue consists of royalties (all of which are received from Econolite), as well as a portion of international product sales. Video products are normally sold in the Intersection segment. The Autoscope® radar is our radar product line, and revenue consists of international and North American product sales as well as a portion of royalties (all of which are received from Econolite). Radar products are normally sold in the Highway segment. Autoscope® license plate recognition is our LPR product line. All segment revenues are derived from external customers. | |||||||||||||||||||||||||||||||||||||||||
Operating expenses and total assets are not allocated to the segments for internal reporting purposes. Due to the changes in how we manage our business, we may reevaluate our segment definitions in the future. | |||||||||||||||||||||||||||||||||||||||||
The following tables set forth selected unaudited financial information for each of our reportable segments (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Three-Month Periods Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
Intersection | Highway | LPR | Total | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Revenue | $ | 3,194 | $ | 3,586 | $ | 3,059 | $ | 2,794 | $ | 887 | $ | 1,361 | $ | 7,140 | $ | 7,741 | |||||||||||||||||||||||||
Gross profit | 2,883 | 3,058 | 1,443 | 1,238 | 257 | 501 | 4,583 | 4,797 | |||||||||||||||||||||||||||||||||
Amortization of intangible assets | — | — | 122 | 122 | 268 | 206 | 390 | 328 | |||||||||||||||||||||||||||||||||
Intangible assets | — | — | 576 | 1,778 | 4,746 | 4,409 | 5,322 | 6,187 | |||||||||||||||||||||||||||||||||
Nine-Month Periods Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
Intersection | Highway | LPR | Total | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Revenue | $ | 9,001 | $ | 10,293 | $ | 5,229 | $ | 4,409 | $ | 3,170 | $ | 5,122 | $ | 17,400 | $ | 19,824 | |||||||||||||||||||||||||
Gross profit | 8,230 | 8,963 | 2,609 | 1,669 | 1,124 | 2,681 | 11,963 | 13,313 | |||||||||||||||||||||||||||||||||
Amortization of intangible assets | — | — | 366 | 367 | 806 | 642 | 1,172 | 1,009 | |||||||||||||||||||||||||||||||||
Intangible assets | — | — | 576 | 1,778 | 4,746 | 4,409 | 5,322 | 6,187 | |||||||||||||||||||||||||||||||||
Restructuring
Restructuring | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||
Restructuring | ' | ||||||||||
Note K: Restructuring | |||||||||||
In the first quarter of 2014, the Company implemented restructuring plans to improve our financial performance in Europe. These plans included the closure of our office in Poland. Because of these actions, restructuring charges of approximately $460,000 were recorded related primarily to facilities and employee terminations. | |||||||||||
The following table shows the restructuring activity for 2014 (in thousands): | |||||||||||
Termination | Facility Costs | Total | |||||||||
Benefits | and Contract | ||||||||||
Termination | |||||||||||
Balance at January 1, 2014 | $ | — | $ | — | $ | — | |||||
Charges | 60 | 400 | 460 | ||||||||
Payments/settlements | (45 | ) | (177 | ) | (222 | ) | |||||
Balance at March 31, 2014 | $ | 15 | $ | 223 | $ | 238 | |||||
Charges | — | — | — | ||||||||
Payments/settlements | (15 | ) | (223 | ) | (238 | ) | |||||
Balance at June 30, 2014 | $ | — | $ | — | $ | — |
Other_Assets
Other Assets | 9 Months Ended |
Sep. 30, 2014 | |
Other Assets [Abstract] | ' |
Other Assets | ' |
Note L: Other Assets | |
In January 2013, we acquired a minority interest in the shares of common stock of Municipal Parking Services, Inc. (MPS) for an aggregate purchase price of $300,000. The investment was accounted for under the cost method and was included in Other Assets on our Condensed Consolidated Balance Sheets. In April 2013, the Chief Executive Officer of MPS was appointed to our Board of Directors. | |
In October 2014, our minority interest in MPS was purchased by MPS for $150,000. We recorded an impairment charge of $150,000 in operating expenses in the third quarter of 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note M: Commitments and Contingencies | |
Litigation | |
We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with GAAP, we record a liability in our Consolidated Financial Statements with respect to any of these matters when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. With respect to any currently pending legal proceedings, we have not established an estimated range of reasonably possible additional losses either because we believe that we have valid defenses to claims asserted against us or the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate. We currently do not expect the outcome of these matters to have a material effect on our consolidated results of operations, financial position or cash flows. Litigation, however, is inherently unpredictable, and it is possible that the ultimate outcome of one or more claims asserted against us could adversely impact our results of operations, financial position or cash flows. We expense legal costs as incurred. | |
Investigation Matter | |
As previously disclosed, Polish authorities conducted an investigation into violations of Polish law related to tenders in the City of Łodź, Poland. A Special Subcommittee of our Audit Committee comprised solely of independent directors retained independent counsel and accounting advisors who conducted an investigation focusing on possible violations of Company policy, internal controls, and laws, including the Foreign Corrupt Practices Act, the U.K. Anti-Bribery Act and Polish law. We voluntarily disclosed this matter to the United States Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”). | |
During the third quarter of 2014, we received a letter from the DOJ informing us that their inquiry into this matter has been closed, citing the Company’s voluntary disclosure, thorough investigation, cooperation and voluntary enhancements to its compliance program. Additionally, the SEC previously notified the Company that it had closed its investigation without recommending enforcement action. | |
Neither the Company nor any of our subsidiaries was charged with any offense, and there were no fines levied at the close of the investigation by the DOJ or SEC. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Revenue Recognition | ' |
Revenue Recognition | |
We recognize revenue on a sales arrangement when it is realized or realizable and earned, which occurs when all of the following criteria have been met: persuasive evidence of an arrangement exists; delivery and title transfer have occurred or services have been rendered; the sales price is fixed and determinable; collectability is reasonably assured; and all significant obligations to the customer have been fulfilled. | |
Certain sales may contain multiple elements for revenue recognition purposes. We consider each deliverable that provides value to the customer on a standalone basis as a separable element. Separable elements in these arrangements may include the hardware, software, installation services, training and support. We initially allocate consideration to each separable element using the relative selling price method. Selling prices are determined by us based on either vendor-specific objective evidence (“VSOE”) (the actual selling prices of similar products and services sold on a standalone basis) or, in the absence of VSOE, our best estimate of the selling price. Factors considered by us in determining estimated selling prices for applicable elements generally include overall economic conditions, customer demand, costs incurred by us to provide the deliverable, as well as our historical pricing practices. Under these arrangements, revenue associated with each delivered element is recognized in an amount equal to the lesser of the consideration initially allocated to the delivered element or the amount for which payment is not deemed contingent upon future delivery of other elements in the arrangement. Under arrangements where special acceptance protocols exist, installation services and training may not be considered separable. Under those circumstances, revenue for the entire arrangement is recognized upon the completion of installation, training and fulfillment of any other significant obligations specific to the terms of the arrangement. Arrangements that do not contain any separable elements are typically recognized when the products are shipped and title has transferred to the customer. | |
Revenue from arrangements for services such as maintenance, repair, consulting and technical support are recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. | |
Econolite Control Products, Inc. (Econolite) is our licensee that sells certain of our products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. | |
We record provisions against sales revenue for estimated returns and allowances in the period when the related revenue is recorded based on historical sales returns and changes in end user demand. | |
Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Inventories | ' |
Inventories | |
Inventories are primarily electronic components and finished goods and are valued at the lower of cost or market on the first-in, first-out accounting method. | |
Income Taxes | ' |
Income Taxes | |
We record a tax provision for the anticipated tax consequences of the reported results of operations. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those deferred tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. We believe it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining net realizable value of deferred tax assets. In the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our financial condition and operating results. We recognize penalties and interest expense related to unrecognized tax benefits in income tax expense. | |
Intangible Assets | ' |
Intangible Assets | |
Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows and reviewed for impairment. At both September 30, 2014 and December 31, 2013, we determined there was no impairment of intangible assets. At both September 30, 2014 and December 31, 2013, there were no indefinite-lived intangible assets. | |
We capitalize certain software development costs related to software to be sold, leased, or otherwise marketed. Capitalized software development costs include purchased materials and services and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. A certain amount of judgment and estimation is required to assess when technological feasibility is established, as well as the ongoing assessment of the recoverability of capitalized costs. In evaluating the recoverability of capitalized software costs, the Company compares expected product performance, utilizing forecasted revenue amounts, to the total costs incurred to date and estimates of additional costs to be incurred. If revised forecasted product revenue is less than, and/or revised forecasted costs are greater than, the previously forecasted amounts, the net realizable value may be lower than previously estimated, which could result in the recognition of an impairment charge in the period in which such a determination is made. | |
We reached technological feasibility for certain software products and, as a result, have capitalized a total $909,000 of software development costs through the period ended September 30, 2014. Once the software products are available for release, the capitalized development costs will begin to be amortized to cost of sales over the products’ estimated economic life using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated time of product revenue recognition. |
Fair_Value_Measurements_And_Ma1
Fair Value Measurements And Marketable Securities (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Schedule of amortized cost and market value of our available-for-sale securities by major security type | ' | |||||||||||||
The amortized cost and market value of our available-for-sale securities by major security type were as follows (in thousands): | ||||||||||||||
31-Dec-13 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Bank certificates of deposit | $ | — | $ | 2,639 | $ | — | $ | 2,639 | ||||||
$ | — | $ | 2,639 | $ | — | $ | 2,639 | |||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory | ' | |||||||
Inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Components | $ | 2,666 | $ | 2,797 | ||||
Finished goods | 871 | 792 | ||||||
$ | 3,537 | $ | 3,589 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of Intangible Assets | ' | |||||||||||||
Intangible assets consisted of the following (dollars in thousands): | ||||||||||||||
30-Sep-14 | ||||||||||||||
Gross | Accumulated | Net | Weighted | |||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||
Amount | Value | Useful Life | ||||||||||||
(in Years) | ||||||||||||||
Developed technology | $ | 8,142 | $ | (5,410 | ) | $ | 2,732 | 2.9 | ||||||
Trade names | 3,267 | (2,303 | ) | 964 | 3.8 | |||||||||
Other intangible costs | 1,849 | (1,132 | ) | 717 | 2.4 | |||||||||
Software development costs | 909 | — | 909 | |||||||||||
Total | $ | 14,167 | $ | (8,845 | ) | $ | 5,322 | 3 | ||||||
31-Dec-13 | ||||||||||||||
Gross | Accumulated | Net | Weighted | |||||||||||
Carrying | Amortization | Carrying | Average | |||||||||||
Amount | Value | Useful Life | ||||||||||||
(in Years) | ||||||||||||||
Developed technology | $ | 8,152 | $ | (4,587 | ) | $ | 3,566 | 3.6 | ||||||
Trade names | 3,267 | (2,110 | ) | 1,157 | 4.5 | |||||||||
Other intangible assets | 1,874 | (1,001 | ) | 873 | 3.1 | |||||||||
Software development costs | 867 | — | 867 | |||||||||||
Total | $ | 14,160 | $ | (7,698 | ) | $ | 6,463 | 3.5 |
Warranties_Tables
Warranties (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
Schedule of Warranty Liability and Related Activity | ' | |||||||
Warranty liability and related activity consisted of the following (in thousands): | ||||||||
Nine-Month Periods Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 934 | $ | 520 | ||||
Warranty provisions | 203 | 209 | ||||||
Warranty claims | (268 | ) | (550 | ) | ||||
Adjustments to preexisting warranties | 37 | 467 | ||||||
Ending balance | $ | 906 | $ | 646 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Summary of the option activity | ' | |||||||||||||
A summary of the option activity for the first nine months of 2014 is as follows: | ||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price per | Contractual | |||||||||||||
Share | Term (in years) | |||||||||||||
Options outstanding at December 31, 2013 | 339,750 | $ | 6.73 | 6.9 | $ | 9,000 | ||||||||
Granted | 167,500 | $ | 4.92 | 9.3 | $ | 4,650 | ||||||||
Exercised | — | $ | — | — | $ | — | ||||||||
Expired | — | $ | — | — | $ | — | ||||||||
Forfeited | (49,250 | ) | $ | 6.63 | — | $ | 325 | |||||||
Options outstanding at September 30, 2014 | 458,000 | $ | 6.08 | 7.6 | $ | — | ||||||||
Options exercisable at September 30, 2014 | 154,750 | $ | 7.26 | 5.6 | $ | — |
Loss_per_Common_Share_Tables
Loss per Common Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net loss per share: | ' | |||||||||||||
Reconciliation of the numerator and denominator of basic and diluted earnings per share computations | ' | |||||||||||||
The potentially dilutive effect of common shares subject to certain outstanding stock options is determined based on net loss. A reconciliation of these amounts is as follows: | ||||||||||||||
Three-Month Periods Ended | Nine-Month Periods Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net loss | $ | (553 | ) | $ | (1,935 | ) | $ | (5,841 | ) | $ | (5,133 | ) | ||
Denominator: | ||||||||||||||
Weighted average common shares outstanding | 4,985 | 4,967 | 4,980 | 4,939 | ||||||||||
Dilutive potential common shares | — | — | — | — | ||||||||||
Shares used in diluted net loss per common share calculations | 4,985 | 4,967 | 4,980 | 4,939 | ||||||||||
Basic net loss per common share | $ | (0.11 | ) | $ | (0.39 | ) | $ | (1.17 | ) | $ | (1.04 | ) | ||
Diluted net loss per common share | $ | (0.11 | ) | $ | (0.39 | ) | $ | (1.17 | ) | $ | (1.04 | ) |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of selected unaudited financial information for each of our reportable segments | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables set forth selected unaudited financial information for each of our reportable segments (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Three-Month Periods Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
Intersection | Highway | LPR | Total | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Revenue | $ | 3,194 | $ | 3,586 | $ | 3,059 | $ | 2,794 | $ | 887 | $ | 1,361 | $ | 7,140 | $ | 7,741 | |||||||||||||||||||||||||
Gross profit | 2,883 | 3,058 | 1,443 | 1,238 | 257 | 501 | 4,583 | 4,797 | |||||||||||||||||||||||||||||||||
Amortization of intangible assets | — | — | 122 | 122 | 268 | 206 | 390 | 328 | |||||||||||||||||||||||||||||||||
Intangible assets | — | — | 576 | 1,778 | 4,746 | 4,409 | 5,322 | 6,187 | |||||||||||||||||||||||||||||||||
Nine-Month Periods Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
Intersection | Highway | LPR | Total | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Revenue | $ | 9,001 | $ | 10,293 | $ | 5,229 | $ | 4,409 | $ | 3,170 | $ | 5,122 | $ | 17,400 | $ | 19,824 | |||||||||||||||||||||||||
Gross profit | 8,230 | 8,963 | 2,609 | 1,669 | 1,124 | 2,681 | 11,963 | 13,313 | |||||||||||||||||||||||||||||||||
Amortization of intangible assets | — | — | 366 | 367 | 806 | 642 | 1,172 | 1,009 | |||||||||||||||||||||||||||||||||
Intangible assets | — | — | 576 | 1,778 | 4,746 | 4,409 | 5,322 | 6,187 | |||||||||||||||||||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||
Schedule of restructuring activity | ' | ||||||||||
The following table shows the restructuring activity for 2014 (in thousands): | |||||||||||
Termination | Facility Costs | Total | |||||||||
Benefits | and Contract | ||||||||||
Termination | |||||||||||
Balance at January 1, 2014 | $ | — | $ | — | $ | — | |||||
Charges | 60 | 400 | 460 | ||||||||
Payments/settlements | (45 | ) | (177 | ) | (222 | ) | |||||
Balance at March 31, 2014 | $ | 15 | $ | 223 | $ | 238 | |||||
Charges | — | — | — | ||||||||
Payments/settlements | (15 | ) | (223 | ) | (238 | ) | |||||
Balance at June 30, 2014 | $ | — | $ | — | $ | — |
Basis_of_Presentation_Narrativ
Basis of Presentation (Narrative) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Accounting Policies [Abstract] | ' |
Royalty percentage of gross profit on licensed products | 50.00% |
Capitalized software development cost | $909 |
Fair_Value_Measurements_And_Ma2
Fair Value Measurements And Marketable Securities (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Proceeds from maturities or sales of available-for-sale securities | $2,600 | $2,600 | $5,900 |
Fair_Value_Measurements_And_Ma3
Fair Value Measurements And Marketable Securities (Schedule Of Fair Value Of Available-For-Sale Securities By Major Security) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Bank certificates of deposit | $2,639 |
Fair Value Inputs Level2 [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Bank certificates of deposit | $2,639 |
Inventories_Schedule_of_Invent
Inventories (Schedule of Inventory) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Components | $2,666 | $2,797 |
Finished goods | 871 | 792 |
Total | $3,537 | $3,589 |
Intangible_Assets_Schedule_Of_
Intangible Assets (Schedule Of Intangible Assets) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $14,167 | $14,160 |
Accumulated Amortization | -8,845 | -7,698 |
Net Carrying Value | 5,322 | 6,463 |
Weighted Average Useful Life (in Years) | '3 years 1 month 6 days | '3 years 6 months |
Developed Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 8,142 | 8,152 |
Accumulated Amortization | -5,410 | -4,587 |
Net Carrying Value | 2,732 | 3,566 |
Weighted Average Useful Life (in Years) | '2 years 10 months 25 days | '3 years 7 months 6 days |
Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 3,267 | 3,267 |
Accumulated Amortization | -2,303 | -2,110 |
Net Carrying Value | 964 | 1,157 |
Weighted Average Useful Life (in Years) | '3 years 9 months 18 days | '4 years 6 months |
Other Intangible Costs [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,849 | 1,874 |
Accumulated Amortization | -1,132 | -1,001 |
Net Carrying Value | 717 | 873 |
Weighted Average Useful Life (in Years) | '2 years 4 months 24 days | '3 years 1 month 6 days |
Computer Software Development Costs [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 909 | 867 |
Net Carrying Value | $909 | $867 |
Weighted Average Useful Life (in Years) | '3 years | '3 years |
Credit_Facilities_Narrative_De
Credit Facilities (Narrative) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Debt Disclosure [Abstract] | ' |
Current revolving line of credit agreement, maximum amount | $5,000 |
Line of credit facility, interest rate | 3.95% |
Expiration date of credit agreement | 31-May-15 |
Warranties_Schedule_of_Warrant
Warranties (Schedule of Warranty Liability and Related Activity) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Product Warranties Disclosures [Abstract] | ' | ' |
Beginning balance | $934 | $520 |
Warranty provisions | 203 | 209 |
Warranty claims | -268 | -550 |
Adjustments to preexisting warranties | 37 | 467 |
Ending balance | $906 | $646 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Intrinsic value of options exercised | $8,049 | ' | $8,049 | ' |
Stock-based compensation expense | 113,000 | 63,000 | 299,000 | 149,000 |
Shares available for grant | 461,157 | ' | 461,157 | ' |
Total unrecognized compensation cost related to non-vested stock options | $563,000 | ' | $563,000 | ' |
Weighted average period over which compensation cost is expected to be recognized | ' | ' | '2 years 8 months 12 days | ' |
Stock awards granted, shares | 3,644 | ' | 12,948 | ' |
Stock awards granted, weighted average grant date fair value | $6.86 | ' | $5.07 | ' |
Minimum [Member] | ' | ' | ' | ' |
Performance stock options that will vest, percentage | ' | ' | 90.00% | ' |
Maximum [Member] | ' | ' | ' | ' |
Performance stock options that will vest, percentage | ' | ' | 100.00% | ' |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Number of Shares, outstanding - beginning of year | 339,750 | ' |
Number of Shares, Granted | 167,500 | ' |
Number of Shares, Forfeited | -49,250 | ' |
Number of Shares, outstanding - end of period | 458,000 | 339,750 |
Number of Shares, exercisable - end of period | 154,750 | ' |
Weighted Average Exercise Price per Share, outstanding - beginning of year | $6.73 | ' |
Weighted Average Exercise Price per Share, Granted | $4.92 | ' |
Weighted Average Exercise Price per Share, Forfeitures in Period | $6.63 | ' |
Weighted Average Exercise Price per Share, outstanding - end of period | $6.08 | $6.73 |
Weighted Average Exercise Price per Share, exercisable - end of period | $7.26 | ' |
Options outstanding, weighted average remaining contractual term | '7 years 7 months 6 days | '6 years 10 months 25 days |
Granted, weighted average remaining contractual term | '9 years 3 months 19 days | ' |
Options exercisable, weighted average remaining contractual term | '5 years 7 months 6 days | ' |
Options outstanding, aggregate intrinsic value, beginning | $9,000 | ' |
Options granted, aggregate intrinsic value | 4,650 | ' |
Options forfeited, aggregate intrinsic value | 325 | ' |
Options outstanding, aggregate intrinsic value, ending | ' | $9,000 |
Loss_per_Common_Share_Narrativ
Loss per Common Share (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net loss per share: | ' | ' | ' | ' |
Shares excluded from diluted weighted shares outstanding | 458 | 128 | 339 | 171 |
Loss_per_Common_Share_Reconcil
Loss per Common Share (Reconciliation of the numerator and denominator per share computations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net loss | ($553) | ($1,935) | ($5,841) | ($5,133) |
Denominator: | ' | ' | ' | ' |
Weighted average common shares outstanding | 4,985 | 4,970 | 4,980 | 4,949 |
Shares used in diluted net loss per common share calculations | 4,985 | 4,970 | 4,980 | 4,949 |
Basic net loss per common share | ($0.11) | ($0.39) | ($1.17) | ($1.04) |
Diluted net loss per common share | ($0.11) | ($0.39) | ($1.17) | ($1.04) |
Segment_Information_Financial_
Segment Information (Financial Information By Reportable Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | $7,140 | $7,741 | $17,400 | $19,824 | ' |
Gross profit | 4,583 | 4,797 | 11,963 | 13,313 | ' |
Amortization of intangible assets | 390 | 328 | 1,172 | 1,009 | ' |
Intangible assets | 5,322 | 6,187 | 5,322 | 6,187 | 6,463 |
Intersection [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 3,194 | 3,586 | 9,001 | 10,293 | ' |
Gross profit | 2,883 | 3,058 | 8,230 | 8,963 | ' |
Highway [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 3,059 | 2,794 | 5,229 | 4,409 | ' |
Gross profit | 1,443 | 1,238 | 2,609 | 1,669 | ' |
Amortization of intangible assets | 122 | 122 | 366 | 367 | ' |
Intangible assets | 576 | 1,778 | 576 | 1,778 | ' |
LPR [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 887 | 1,361 | 3,170 | 5,122 | ' |
Gross profit | 257 | 501 | 1,124 | 2,681 | ' |
Amortization of intangible assets | 268 | 206 | 806 | 642 | ' |
Intangible assets | $4,746 | $4,409 | $4,746 | $4,409 | ' |
Restructuring_Summary_Of_Restr
Restructuring (Summary Of Restructuring Activity) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance, beginning | $238 | ' |
Charges | ' | 460 |
Payments/settlements | -238 | -222 |
Balance, ending | ' | 238 |
Termination Benefits [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance, beginning | 15 | ' |
Charges | ' | 60 |
Payments/settlements | -15 | -45 |
Balance, ending | ' | 15 |
Facility Costs And Contract Termination [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance, beginning | 223 | ' |
Charges | ' | 400 |
Payments/settlements | -223 | -177 |
Balance, ending | ' | $223 |
Other_Assets_Narrative_Details
Other Assets (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Other Assets [Abstract] | ' | ' | ' |
Cost of minority interest of Municipal Parking Servcies, Inc. | ' | ' | $300,000 |
Impairment charge of minority interest | ' | 150,000 | ' |
Proceeds from sale of minority interest | $150,000 | ' | ' |