Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 18, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SMSI | |
Entity Registrant Name | SMITH MICRO SOFTWARE INC | |
Entity Central Index Key | 948,708 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 46,968,272 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 11,398 | $ 8,819 |
Short-term investments | 1,679 | 4,078 |
Accounts receivable, net of allowances for doubtful accounts and other adjustments of $135 (2016) and $201 (2015) | 5,459 | 8,145 |
Income tax receivable | 13 | 13 |
Inventories, net of reserves for excess and obsolete inventory of $145 (2016) and $158 (2015) | 27 | 39 |
Prepaid expenses and other current assets | 899 | 692 |
Total current assets | 19,475 | 21,786 |
Equipment and improvements, net | 2,150 | 2,492 |
Other assets | 196 | 195 |
Total assets | 21,821 | 24,473 |
Current liabilities: | ||
Accounts payable | 1,480 | 1,708 |
Accrued liabilities | 5,539 | 5,064 |
Deferred revenue | 1,107 | 440 |
Total current liabilities | 8,126 | 7,212 |
Non-current liabilities: | ||
Deferred rent and other long-term liabilities | 3,110 | 3,235 |
Total non-current liabilities | $ 3,110 | $ 3,235 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share; 5,000,000 shares authorized; none issued or outstanding | ||
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 46,968,272 and 45,729,272 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | $ 47 | $ 46 |
Additional paid-in capital | 225,129 | 224,867 |
Accumulated comprehensive deficit | (214,591) | (210,887) |
Total stockholders' equity | 10,585 | 14,026 |
Total liabilities and stockholders' equity | $ 21,821 | $ 24,473 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts receivable | $ 135 | $ 201 |
Reserves for excess and obsolete inventory | $ 145 | $ 158 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 46,968,272 | 45,729,272 |
Common stock, shares outstanding | 46,968,272 | 45,729,272 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 7,214 | $ 10,529 |
Cost of revenues | 2,113 | 2,118 |
Gross profit | 5,101 | 8,411 |
Operating expenses: | ||
Selling and marketing | 2,370 | 2,191 |
Research and development | 3,923 | 3,341 |
General and administrative | 2,486 | 2,877 |
Total operating expenses | 8,779 | 8,409 |
Operating income (loss) | (3,678) | 2 |
Interest and other income (expense), net | (2) | (1) |
Income (loss) before provision for income taxes | (3,680) | 1 |
Provision for income tax expense | 26 | 11 |
Net loss | (3,706) | (10) |
Other comprehensive income, before tax: | ||
Unrealized holding gains on available-for-sale securities | 2 | 1 |
Other comprehensive income, net of tax | 2 | 1 |
Comprehensive loss | $ (3,704) | $ (9) |
Net loss per share: | ||
Basic and diluted | $ (0.08) | $ 0 |
Weighted average shares outstanding: | ||
Basic and diluted | 46,094 | 45,501 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated comprehensive deficit [Member] |
BALANCE at Dec. 31, 2015 | $ 14,026 | $ 46 | $ 224,867 | $ (210,887) |
BALANCE, Shares at Dec. 31, 2015 | 45,729,272 | 45,729,000 | ||
Non-cash compensation recognized on stock options and ESPP | $ 40 | 40 | ||
Restricted stock grants, net of cancellations | 321 | $ 1 | 320 | |
Restricted stock grants, net of cancellations, shares | 1,391,000 | |||
Cancellation of shares for payment of withholding tax | (105) | (105) | ||
Cancellation of shares for payment of withholding tax, shares | (166,000) | |||
Employee stock purchase plan | 7 | 7 | ||
Employee stock purchase plan, shares | 14,000 | |||
Comprehensive loss | (3,704) | (3,704) | ||
BALANCE at Mar. 31, 2016 | $ 10,585 | $ 47 | $ 225,129 | $ (214,591) |
BALANCE, Shares at Mar. 31, 2016 | 46,968,272 | 46,968,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net loss | $ (3,706) | $ (10) |
Adjustments to reconcile net loss to net cash provided by (used by) operating activities: | ||
Depreciation and amortization | 426 | 495 |
Provision for doubtful accounts and other adjustments to accounts receivable | 12 | |
Provision for excess and obsolete inventory | 3 | 5 |
Non-cash compensation related to stock options, ESPP and restricted stock | 361 | 576 |
Loss on disposal of assets | 2 | |
Change in operating accounts: | ||
Accounts receivable | 2,686 | 606 |
Income tax receivable | 673 | |
Inventories | 9 | 5 |
Prepaid expenses and other assets | (208) | 62 |
Accounts payable and accrued liabilities | 17 | (522) |
Deferred revenue | 667 | (1,167) |
Net cash provided by operating activities | 257 | 735 |
Investing activities: | ||
Capital expenditures | (86) | (21) |
Sales (purchases) of short-term investments | 2,401 | (919) |
Net cash provided by (used in) investing activities | 2,315 | (940) |
Financing activities: | ||
Cash received from stock sale for employee stock purchase plan | 7 | 8 |
Cash received from exercise of stock options | 9 | |
Net cash provided by financing activities | 7 | 17 |
Net increase (decrease) in cash and cash equivalents | 2,579 | (188) |
Cash and cash equivalents, beginning of period | 8,819 | 10,165 |
Cash and cash equivalents, end of period | 11,398 | 9,977 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | $ 21 | $ 6 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | 1. The Company Smith Micro Software, Inc. (“we,” “us,” “our,” “Smith Micro,” or the “Company”) provides software solutions to simplify and enhance the mobile experience. As a leader in wireless connectivity, our applications ensure high quality of service for mobile users while optimizing networks for wireless service providers and enterprises. Using our intelligent device software, along with premium voice, video and messaging applications, we create new opportunities to engage consumers and monetize mobile services. In addition to wireless solutions, Smith Micro develops 2D/3D graphics software used by professional artists, animators, illustrators, and designers worldwide. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying interim consolidated balance sheet and statement of stockholders’ equity as of March 31, 2016, and the related statements of operations and comprehensive loss and cash flows for the three months ended March 31, 2016 and 2015 are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments, which are normal and recurring, necessary to fairly state the financial position, results of operations and cash flows. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 9, 2016. Intercompany balances and transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2016. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued final guidance in Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, In February 2016, the FASB issued ASU No. 2016-02, Leases, In November 2015, the FASB issued final guidance in ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, The Company has early adopted this standard for the interim and annual period ending December 31, 2015 on a prospective basis. As such, prior periods were not retrospectively adjusted. Due to the Company’s full valuation allowance on its deferred tax assets, the nature of the change on the balance sheet is not significant. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 4. Net Income (Loss) Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For periods with a net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, common stock subject to repurchase by the Company and options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Three Months Ended March 31, 2016 2015 (unaudited, in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (3,706) $ (10) Denominator: Weighted average shares outstanding - basic 46,094 45,501 Potential common shares - options (treasury stock method) - - Weighted average shares outstanding - diluted 46,094 45,501 Shares excluded (anti-dilutive) - 229 Shares excluded due to an exercise price greater than weighted average stock price for the period 1,605 976 Net loss per common share: Basic ($0.08) ($0.00) Diluted ($0.08) ($0.00) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 5. Stock-Based Compensation Stock Plans During the three months ended March 31, 2016, the Company granted 1.4 million shares of restricted stock with a weighted average grant date fair value of $0.68 per share. This cost will be amortized ratably over a period of 12 to 48 months. As of March 31, 2016, there were 6.8 million shares available for future grants under the 2015 Stock Plan. Employee Stock Purchase Plan The Company’s most recent six-month offering period ended March 31, 2016 and resulted in 14,000 shares being purchased/granted at a fair value of $0.50 per share. Stock Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation. Restricted stock is valued using the closing stock price on the date of the grant. Options are valued using a Black-Scholes valuation model. Stock-based non-cash compensation expense related to stock options, restricted stock grants and the employee stock purchase plan were recorded in the financial statements as follows (in thousands): Three Months Ended March 31, 2016 2015 (unaudited) Cost of revenues $ 2 $ 3 Selling and marketing 70 75 Research and development 121 169 General and administrative 168 329 Total non-cash stock compensation expense $ 361 $ 576 Total share-based compensation for each quarter includes cash payment of income taxes related to grants of restricted stock in the amount of $0 and $32,000 for the three months ended March 31, 2016 and 2015, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures. The carrying value of accounts receivable, foreign cash accounts, prepaid expenses, other current assets, accounts payable, and accrued expenses are considered to be representative of their respective fair values because of the short-term nature of those instruments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash equivalents and short-term investments at fair value. Our cash equivalents and short-term investments are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 825, Financial Instruments, an entity can choose to measure at fair value many financial instruments and certain other items that are not currently required to be measured at fair value. Subsequent changes in fair value for designated items are required to be reported in earnings in the current period. This Topic also establishes presentation and disclosure requirements for similar types of assets and liabilities measured at fair value. As permitted, the Company has elected not to use the fair value option to measure our available-for-sale securities under this Topic and will continue to report as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities. We have made this election because the nature of our financial assets and liabilities are not of such complexity that they would benefit from a change in valuation to fair value. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 7. Cash and Cash Equivalents Cash and cash equivalents generally consist of cash, government securities, mutual funds, and money market funds. These securities are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation (“FDIC”) coverage, and have original maturity dates of three months or less. As of March 31, 2016 and December 31, 2015, bank balances totaling approximately $11.1 million and $8.5 million, respectively, were uninsured. |
Short-Term Investments
Short-Term Investments | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | 8. Short-Term Investments Short-term investments consist of U.S. government agency and government sponsored enterprise obligations. The Company accounts for these short-term investments as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities. These debt and equity securities are not classified as either held-to-maturity securities or trading securities. As such, they are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with unrealized gains or losses recorded as a separate component of accumulated other comprehensive income in stockholders’ equity until realized. Available-for-sale securities with contractual maturities of less than 12 months were as follows (in thousands): March 31, 2016 December 31, 2015 Amortized cost basis Gross unrealized gain(loss) Fair value Amortized cost basis Gross unrealized gain(loss) Fair value Government securities/money market 1,680 (1 ) 1,679 4,080 (2 ) 4,078 Total $ 1,680 $ (1 ) $ 1,679 $ 4,080 $ (2 ) $ 4,078 There were no realized gains or losses for the three months ended March 31, 2016 and 2015. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | 9. Accounts Receivable The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and those losses have been within management’s estimates. Allowances for product returns are included in other adjustments to accounts receivable on the accompanying consolidated balance sheets. Product returns are estimated based on historical experience and management estimations. |
Impairment or Disposal of Long
Impairment or Disposal of Long Lived Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment or Disposal of Long Lived Assets | 10. Impairment or Disposal of Long Lived Assets Long-lived assets to be held are reviewed for events or changes in circumstances which indicate that their carrying value may not be recoverable. They are tested for recoverability using undiscounted cash flows to determine whether or not impairment to such value has occurred as required by FASB ASC Topic No. 360, Property, Plant, and Equipment. The Company determined there was no impairment as of March 31, 2016. |
Equipment and Improvements
Equipment and Improvements | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Equipment and Improvements | 11. Equipment and Improvements Equipment and improvements are stated at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets, generally ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. |
Segment, Customer Concentration
Segment, Customer Concentration and Geographical Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment, Customer Concentration and Geographical Information | 12. Segment, Customer Concentration and Geographical Information Segment Information Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting. The Company has two primary business units based on how management internally evaluates separate financial information, business activities and management responsibility. Wireless includes our NetWise®, CommSuite®, and QuickLink® family of products. Graphics includes our consumer-based products: Poser®, Anime Studio®, Manga Studio®, MotionArtist® and StuffIt®. The Company does not separately allocate operating expenses to these business units, nor does it allocate specific assets. Therefore, business unit information reported includes only revenues. The following table shows the revenues generated by each business unit (in thousands): Three Months Ended March 31, 2016 2015 (unaudited) Wireless $ 5,973 $ 9,219 Graphics 1,241 1,310 Total revenues $ 7,214 $ 10,529 Customer Concentration Information A summary of the Company’s customers that represent 10% or more of the Company’s net revenues is as follows: Three Months Ended March 31, 2016 2015 Wireless: Sprint (& affiliates) 65.0% 64.7% Comcast 5.6% 10.8% Graphics: FastSpring 13.6% 9.5% The three customers listed above comprised 84% and 90% our accounts receivable as of March 31, 2016 and 2015, respectively. Geographical Information During the three months ended March 31, 2016 and 2015, the Company operated in three geographic locations; the Americas, EMEA (Europe, the Middle East, and Africa) and Asia Pacific. Revenues, attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands): Three Months Ended March 31, 2016 2015 (unaudited) Americas $ 7,142 $ 10,312 EMEA 62 52 Asia Pacific 10 165 Total Revenues $ 7,214 $ 10,529 The Company does not separately allocate specific assets to these geographic locations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Leases The Company leases its buildings under operating leases that expire on various dates through 2022. Future minimum annual lease payments under such leases as of March 31, 2016 are as follows (in thousands): Year Ending December 31, Operating 2016-9 months remaining $ 1,328 2017 1,536 2018 1,534 2019 1,507 2020 1,519 2021 1,530 Beyond 33 Total $ 8,987 As of March 31, 2016, $4.6 million of the remaining lease commitments expense has been accrued as part of the 2013 Restructuring Plan, partially offset by future estimated sublease income of $2.4 million. Rent expense under operating leases was $0.3 million for both the three months ended March 31, 2016 and 2015. As a condition of our Pittsburgh lease that was signed in November 2010, the landlord agreed to incentives of $40.00 per square foot, or a total of $2.2 million, for improvements to the space. These costs have been included in deferred rent in our long-term liabilities and are being amortized over the ten year lease term. Pennsylvania Opportunity Grant Program On September 26, 2011, we received $1.0 million from the State of Pennsylvania to help fund our agreement to start-up a new facility. The grant carried with it an obligation, or commitment, to employ at least 232 people within a three-year time period that ended on December 31, 2013. We received an extension of time to meet this employment commitment. The new deadline is April 30, 2016. This grant contains conditions that would require us to return a pro-rata amount of the monies received if we fail to meet these conditions. As such, the monies have been recorded as a liability in the accrued liabilities line item on the balance sheet until we are irrevocably entitled to retain the monies, or until it is determined that we need to return a portion or all of the monies received. Litigation The Company may become involved in various legal proceedings arising from its business activities. While management does not believe the ultimate disposition of these matters will have a material adverse impact on the Company’s consolidated results of operations, cash flows or financial position, litigation is inherently unpredictable, and depending on the nature and timing of these proceedings, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. Other Contingent Contractual Obligations During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include: intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of Company products; indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease; indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company; indemnities involving the accuracy of representations and warranties in certain contracts; and indemnities to directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware. In addition, the Company has made contractual commitments to employees providing for severance payments upon the occurrence of certain prescribed events. The Company may also issue a guarantee in the form of a standby letter of credit as security for contingent liabilities under certain customer contracts. The duration of these indemnities, commitments and guarantees varies, and in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees may not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes We account for income taxes as required by FASB ASC Topic No. 740, Income Taxes. This Topic clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Topic also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Topic requires an entity to recognize the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. In addition, the Topic permits an entity to recognize interest and penalties related to tax uncertainties either as income tax expense or operating expenses. The Company has chosen to recognize interest and penalties related to tax uncertainties as income tax expense. The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax liabilities against gross deferred tax assets); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies and (4) future taxable income exclusive of reversing temporary differences and carryforwards. In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. A significant factor in the Company’s assessment is that the Company has been in a five-year historical cumulative loss as of the end of fiscal year 2015. These facts, combined with uncertain near-term market and economic conditions, reduced the Company’s ability to rely on projections of future taxable income in assessing the realizability of its deferred tax assets. After a review of the four sources of taxable income as of December 31, 2015 (as described above), and after consideration of the Company’s continuing cumulative loss position as of December 31, 2015, the Company will continue to reserve its U.S.-based deferred tax amounts, which total $74.9 million, as of March 31, 2016. The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2012, 2013 and 2014 tax years. State income tax returns are subject to examination for a period of three to four years after filing. The outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. We may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. It is the Company’s policy to classify any interest and/or penalties in the financial statements as a component of income tax expense. |
Restructuring Expenses
Restructuring Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | 15. Restructuring Expenses 2014 Restructuring On May 6, 2014, the Board of Directors approved a plan of restructuring intended to streamline and flatten the Company’s organization, reduce overall headcount by approximately 20% and reduce its overall cost structure by approximately $2.0 million per quarter. The restructuring plan resulted in special charges totaling $1.8 million recorded during the three month period ended June 30, 2014. These charges were for non-cash stock-based compensation expense of $1.3 million, severance costs for affected employees of $0.4 million, and other related costs of $0.1 million. 2013 Restructuring On July 25, 2013, the Board of Directors approved a plan of restructuring intended to bring the Company’s operating expenses better in line with revenues. The restructuring plan involved a realignment of organizational structures, facility consolidations/closures and headcount reductions of approximately 26% of the Company’s worldwide workforce. The restructuring plan was implemented primarily during the three month period ended September 30, 2013 and resulted in annualized savings of approximately $16.0 million. The restructuring plan resulted in special charges totaling $5.6 million recorded in the year ended December 31, 2013. These charges were for lease/rental terminations of $3.3 million, severance costs for affected employees of $1.1 million, equipment and improvements write-offs as a result of our lease/rental terminations of $1.0 million and other related costs of $0.2 million. In the year ended December 31, 2014, we increased the reserve by $0.6 million due to changes in our assumptions on future sublease income on our lease terminations of $0.8 million, partially offset by adjustments to our one-time employee termination benefits. Following is the activity in our restructuring liability account for the period ended March 31, 2016 (in thousands): December 31, 2015 March 31, 2016 Balance Provision-net Usage Balance Lease/rental terminations 2,123 - (83) 2,040 Relocation, move, transition travel, other 86 - - 86 Total (1) $ 2,209 $ - $ (83) $ 2,126 (1) $0.4 million is included in accrued liabilities and $1.7 million is included in deferred rent and other long-term liabilities. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events The Company evaluates and discloses subsequent events as required by ASC Topic No. 855, Subsequent Events. The Topic establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. On April 7, 2016, pursuant to the Share Purchase Agreement, dated as of March 8, 2016 , by and between Smith Micro Software, Inc. (the “Company”) and Birdstep Technology ASA (“Birdstep”), the Company completed its previously announced acquisition of 100% of the outstanding capital stock of Birdstep’s wholly owned Swedish subsidiary, Birdstep Technology AB (the “Acquisition”). Pursuant to the terms of the Share Purchase Agreement, the Company paid a net purchase price of $2 million in cash to Birdstep at the closing. Concurrently with the closing of the Acquisition, the Company entered into a Transitional Services Agreement with Birdstep. As a result of the Acquisition, Birdstep Technology AB has become a wholly-owned subsidiary of the Company. Approximately 21 employees will continue as employees of Birdstep Technology AB following the Closing. The Company has evaluated this acquisition and concluded that separate financial statements for Birdstep and pro forma financial information for the transaction are not required to be filed under SEC regulation S-X 8-04 and 8-05. Subsequent events have been evaluated as of the date of this filing and no further disclosures were required. |
The Company (Policies)
The Company (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Smith Micro Software, Inc. (“we,” “us,” “our,” “Smith Micro,” or the “Company”) provides software solutions to simplify and enhance the mobile experience. As a leader in wireless connectivity, our applications ensure high quality of service for mobile users while optimizing networks for wireless service providers and enterprises. Using our intelligent device software, along with premium voice, video and messaging applications, we create new opportunities to engage consumers and monetize mobile services. In addition to wireless solutions, Smith Micro develops 2D/3D graphics software used by professional artists, animators, illustrators, and designers worldwide. |
Basis of Presentation | Basis of Presentation The accompanying interim consolidated balance sheet and statement of stockholders’ equity as of March 31, 2016, and the related statements of operations and comprehensive loss and cash flows for the three months ended March 31, 2016 and 2015 are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments, which are normal and recurring, necessary to fairly state the financial position, results of operations and cash flows. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 9, 2016. Intercompany balances and transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2016. |
Recent Accounting Pronouncements | In March 2016, the Financial Accounting Standards Board (“FASB”) issued final guidance in Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, In February 2016, the FASB issued ASU No. 2016-02, Leases, In November 2015, the FASB issued final guidance in ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, The Company has early adopted this standard for the interim and annual period ending December 31, 2015 on a prospective basis. As such, prior periods were not retrospectively adjusted. Due to the Company’s full valuation allowance on its deferred tax assets, the nature of the change on the balance sheet is not significant. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For periods with a net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, common stock subject to repurchase by the Company and options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Three Months Ended March 31, 2016 2015 (unaudited, in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (3,706) $ (10) Denominator: Weighted average shares outstanding - basic 46,094 45,501 Potential common shares - options (treasury stock method) - - Weighted average shares outstanding - diluted 46,094 45,501 Shares excluded (anti-dilutive) - 229 Shares excluded due to an exercise price greater than weighted average stock price for the period 1,605 976 Net loss per common share: Basic ($0.08) ($0.00) Diluted ($0.08) ($0.00) |
Stock-Based Compensation | Stock Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation. Restricted stock is valued using the closing stock price on the date of the grant. Options are valued using a Black-Scholes valuation model. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures. The carrying value of accounts receivable, foreign cash accounts, prepaid expenses, other current assets, accounts payable, and accrued expenses are considered to be representative of their respective fair values because of the short-term nature of those instruments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash equivalents and short-term investments at fair value. Our cash equivalents and short-term investments are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 825, Financial Instruments, an entity can choose to measure at fair value many financial instruments and certain other items that are not currently required to be measured at fair value. Subsequent changes in fair value for designated items are required to be reported in earnings in the current period. This Topic also establishes presentation and disclosure requirements for similar types of assets and liabilities measured at fair value. As permitted, the Company has elected not to use the fair value option to measure our available-for-sale securities under this Topic and will continue to report as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities. We have made this election because the nature of our financial assets and liabilities are not of such complexity that they would benefit from a change in valuation to fair value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents generally consist of cash, government securities, mutual funds, and money market funds. These securities are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation (“FDIC”) coverage, and have original maturity dates of three months or less. As of March 31, 2016 and December 31, 2015, bank balances totaling approximately $11.1 million and $8.5 million, respectively, were uninsured. |
Short-Term Investments | Short-Term Investments Short-term investments consist of U.S. government agency and government sponsored enterprise obligations. The Company accounts for these short-term investments as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities. These debt and equity securities are not classified as either held-to-maturity securities or trading securities. As such, they are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with unrealized gains or losses recorded as a separate component of accumulated other comprehensive income in stockholders’ equity until realized. Available-for-sale securities with contractual maturities of less than 12 months were as follows (in thousands): March 31, 2016 December 31, 2015 Amortized cost basis Gross unrealized gain(loss) Fair value Amortized cost basis Gross unrealized gain(loss) Fair value Government securities/money market 1,680 (1 ) 1,679 4,080 (2 ) 4,078 Total $ 1,680 $ (1 ) $ 1,679 $ 4,080 $ (2 ) $ 4,078 |
Accounts Receivable | Accounts Receivable The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and those losses have been within management’s estimates. Allowances for product returns are included in other adjustments to accounts receivable on the accompanying consolidated balance sheets. Product returns are estimated based on historical experience and management estimations. |
Impairment or Disposal of Long Lived Assets | Long-lived assets to be held are reviewed for events or changes in circumstances which indicate that their carrying value may not be recoverable. They are tested for recoverability using undiscounted cash flows to determine whether or not impairment to such value has occurred as required by FASB ASC Topic No. 360, Property, Plant, and Equipment. The Company determined there was no impairment as of March 31, 2016. |
Equipment and Improvements | Equipment and Improvements Equipment and improvements are stated at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets, generally ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. |
Segment Information | Segment Information Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting. The Company has two primary business units based on how management internally evaluates separate financial information, business activities and management responsibility. Wireless includes our NetWise®, CommSuite®, and QuickLink® family of products. Graphics includes our consumer-based products: Poser®, Anime Studio®, Manga Studio®, MotionArtist® and StuffIt®. |
Income Taxes | We account for income taxes as required by FASB ASC Topic No. 740, Income Taxes. This Topic clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Topic also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Topic requires an entity to recognize the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. In addition, the Topic permits an entity to recognize interest and penalties related to tax uncertainties either as income tax expense or operating expenses. The Company has chosen to recognize interest and penalties related to tax uncertainties as income tax expense. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | For purposes of this calculation, common stock subject to repurchase by the Company and options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Three Months Ended March 31, 2016 2015 (unaudited, in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (3,706) $ (10) Denominator: Weighted average shares outstanding - basic 46,094 45,501 Potential common shares - options (treasury stock method) - - Weighted average shares outstanding - diluted 46,094 45,501 Shares excluded (anti-dilutive) - 229 Shares excluded due to an exercise price greater than weighted average stock price for the period 1,605 976 Net loss per common share: Basic ($0.08) ($0.00) Diluted ($0.08) ($0.00) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Non-Cash Compensation Expenses | Stock-based non-cash compensation expense related to stock options, restricted stock grants and the employee stock purchase plan were recorded in the financial statements as follows (in thousands): Three Months Ended March 31, 2016 2015 (unaudited) Cost of revenues $ 2 $ 3 Selling and marketing 70 75 Research and development 121 169 General and administrative 168 329 Total non-cash stock compensation expense $ 361 $ 576 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities Recorded at Fair Value with Unrealized Gains or Losses | Available-for-sale securities with contractual maturities of less than 12 months were as follows (in thousands): March 31, 2016 December 31, 2015 Amortized cost basis Gross unrealized gain(loss) Fair value Amortized cost basis Gross unrealized gain(loss) Fair value Government securities/money market 1,680 (1 ) 1,679 4,080 (2 ) 4,078 Total $ 1,680 $ (1 ) $ 1,679 $ 4,080 $ (2 ) $ 4,078 |
Segment, Customer Concentrati27
Segment, Customer Concentration and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues Generated by Each Business Unit | The following table shows the revenues generated by each business unit (in thousands): Three Months Ended March 31, 2016 2015 (unaudited) Wireless $ 5,973 $ 9,219 Graphics 1,241 1,310 Total revenues $ 7,214 $ 10,529 |
Company's Customers that Represent 10% or More of Company's Net Revenues | A summary of the Company’s customers that represent 10% or more of the Company’s net revenues is as follows: Three Months Ended March 31, 2016 2015 Wireless: Sprint (& affiliates) 65.0% 64.7% Comcast 5.6% 10.8% Graphics: FastSpring 13.6% 9.5% |
Company Revenue in Different Geographic Locations | Revenues, attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands): Three Months Ended March 31, 2016 2015 (unaudited) Americas $ 7,142 $ 10,312 EMEA 62 52 Asia Pacific 10 165 Total Revenues $ 7,214 $ 10,529 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Company Lease of Buildings under Non-Cancellable Operating Leases | Future minimum annual lease payments under such leases as of March 31, 2016 are as follows (in thousands): Year Ending December 31, Operating 2016-9 months remaining $ 1,328 2017 1,536 2018 1,534 2019 1,507 2020 1,519 2021 1,530 Beyond 33 Total $ 8,987 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
2013 Restructuring [Member] | |
Activity in Restructuring Liability Account | Following is the activity in our restructuring liability account for the period ended March 31, 2016 (in thousands): December 31, 2015 March 31, 2016 Balance Provision-net Usage Balance Lease/rental terminations 2,123 - (83) 2,040 Relocation, move, transition travel, other 86 - - 86 Total (1) $ 2,209 $ - $ (83) $ 2,126 (1) $0.4 million is included in accrued liabilities and $1.7 million is included in deferred rent and other long-term liabilities. |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||
Net loss available to common stockholders | $ (3,706) | $ (10) |
Denominator: | ||
Weighted average shares outstanding - basic | 46,094 | 45,501 |
Potential common shares - options (treasury stock method) | 0 | 0 |
Weighted average shares outstanding - diluted | 46,094 | 45,501 |
Shares excluded (anti-dilutive) | 229 | |
Shares excluded due to an exercise price greater than weighted average stock price for the period | 1,605 | 976 |
Net loss per common share: | ||
Basic | $ (0.08) | $ 0 |
Diluted | $ (0.08) | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Common stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock purchase plan (ESPP), shares purchased/granted | 14 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 48 months | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 12 months | |
Restricted stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock, granted | 1,400 | |
Weighted average grant date fair value | $ 0.68 | |
Cash payment of income taxes related to grants included in share-based compensation | $ 0 | $ 32,000 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock purchase plan, grant date fair value | $ 0.50 | |
Two Thousand Fifteen Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for future grants | 6,800 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Non-Cash Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | $ 361 | $ 576 |
Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 2 | 3 |
Selling and marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 70 | 75 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 121 | 169 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | $ 168 | $ 329 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Institution | Dec. 31, 2015USD ($) | |
Cash and Cash Equivalents [Abstract] | ||
Financial institutions to held securities | Institution | 2 | |
Cash and cash equivalents original maturity dates | Three months or less | |
Bank balances | $ | $ 11.1 | $ 8.5 |
Short-Term Investments - Availa
Short-Term Investments - Available-for-Sale Securities Recorded at Fair Value with Unrealized Gains or Losses (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | $ 1,680 | $ 4,080 |
Gross unrealized gain (loss) | (1) | (2) |
Fair value | 1,679 | 4,078 |
Government securities/money market [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 1,680 | 4,080 |
Gross unrealized gain (loss) | (1) | (2) |
Fair value | $ 1,679 | $ 4,078 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized gains (losses) recognized | $ 0 | $ 0 |
Impairment or Disposal of Lon36
Impairment or Disposal of Long Lived Assets - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Asset Impairment Charges [Abstract] | |
Asset impairment charges | $ 0 |
Equipment and Improvements - Ad
Equipment and Improvements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 7 years |
Segment, Customer Concentrati38
Segment, Customer Concentration and Geographical Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016LocationBusiness_Unit | Mar. 31, 2015Location | |
Revenue, Major Customer [Line Items] | ||
Number of primary business units | Business_Unit | 2 | |
Number of geographic locations | Location | 3 | 3 |
Customer Concentration Risk [Member] | Accounts receivable [Member] | Sprint and Fast Spring [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration percentage | 84.00% | 90.00% |
Segment, Customer Concentrati39
Segment, Customer Concentration and Geographical Information - Revenues Generated by Each Business Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Total Revenues | $ 7,214 | $ 10,529 |
Wireless [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | 5,973 | 9,219 |
Graphics [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | $ 1,241 | $ 1,310 |
Segment, Customer Concentrati40
Segment, Customer Concentration and Geographical Information - Company's Customers that Represent 10% or More of Company's Net Revenues (Detail) - Revenues [Member] - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Wireless [Member] | Sprint and affiliates [Member] | ||
Revenue from External Customer [Line Items] | ||
Customer concentrating on 10% or more of net revenue | 65.00% | 64.70% |
Wireless [Member] | Comcast [Member] | ||
Revenue from External Customer [Line Items] | ||
Customer concentrating on 10% or more of net revenue | 5.60% | 10.80% |
Graphics [Member] | FastSpring [Member] | ||
Revenue from External Customer [Line Items] | ||
Customer concentrating on 10% or more of net revenue | 13.60% | 9.50% |
Segment, Customer Concentrati41
Segment, Customer Concentration and Geographical Information - Company Revenue in Different Geographic Locations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Total Revenues | $ 7,214 | $ 10,529 |
Americas [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | 7,142 | 10,312 |
EMEA [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | 62 | 52 |
Asia Pacific [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | $ 10 | $ 165 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)$ / ft² | Mar. 31, 2015USD ($) | Dec. 31, 2013People | Sep. 26, 2011USD ($) | |
Leases [Abstract] | ||||
Expiration of non-cancellable operating leases | Through 2,022 | |||
Accrued lease commitments expense | $ 4.6 | |||
Estimated sublease income | 2.4 | |||
Rent expense under operating leases | $ 0.3 | $ 0.3 | ||
Incentives per square feet | $ / ft² | 40 | |||
Incentives for improvements to space | $ 2.2 | |||
Lease agreement term | 10 years | |||
Amount received to start-up new facility | $ 1 | |||
Minimum number of people to be employed | People | 232 | |||
Time period to meet employment commitment | 3 years | |||
New deadline to meet employment commitment | Apr. 30, 2016 |
Commitments and Contingencies43
Commitments and Contingencies - Company Lease of Buildings under Non-Cancellable Operating Leases (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Leases [Abstract] | |
2016-9 months remaining | $ 1,328 |
2,017 | 1,536 |
2,018 | 1,534 |
2,019 | 1,507 |
2,020 | 1,519 |
2,021 | 1,530 |
Beyond | 33 |
Total | $ 8,987 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Valuation allowance | $ 74.9 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Federal income tax returns subject to examination description | Federal income tax returns of the Company are subject to IRS examination for the 2012, 2013 and 2014 tax years. |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Federal income tax returns subject to examination description | State income tax returns are subject to examination for a period of three to four years after filing. |
Restructuring Expenses - Additi
Restructuring Expenses - Additional Information (Detail) $ / qtr in Millions, $ in Millions | May. 06, 2014$ / qtr | Jun. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
2014 Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Reductions in company's worldwide workforce | 20.00% | ||||
Reduction of overall cost structure | $ / qtr | 2 | ||||
Special charges for restructuring plan | $ 1.8 | ||||
Severance costs for affected employees | 0.4 | ||||
Other restructuring related costs | 0.1 | ||||
Non-cash stock based compensation expense | $ 1.3 | ||||
2013 Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Reductions in company's worldwide workforce | 26.00% | ||||
Special charges for restructuring plan | $ 5.6 | ||||
Severance costs for affected employees | 1.1 | ||||
Other restructuring related costs | 0.2 | ||||
Annualized savings | $ 16 | ||||
Lease/rental termination charges for restructuring | $ 0.8 | 3.3 | |||
Equipment and improvements write-offs due to lease/rental terminations | $ 0.6 | $ 1 |
Restructuring Expenses - Activi
Restructuring Expenses - Activity in Restructuring Liability Accounts (Detail) - 2013 Restructuring [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 2,209 |
Provision-net | 0 |
Usage | (83) |
Ending Balance | 2,126 |
Lease/rental terminations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 2,123 |
Provision-net | 0 |
Usage | (83) |
Ending Balance | 2,040 |
Relocation, move, transition travel, other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 86 |
Provision-net | 0 |
Ending Balance | $ 86 |
Restructuring Expenses - Acti47
Restructuring Expenses - Activity in Restructuring Liability Accounts (Parenthetical) (Detail) $ in Millions | Mar. 31, 2016USD ($) |
Restructuring and Related Activities [Abstract] | |
Restructuring liability is included in deferred rent and other long term liabilities | $ 0.4 |
Restructuring liability included in accrued liabilities | $ 1.7 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Birdstep Technology's [Member] $ in Millions | Apr. 07, 2016USD ($)Employees |
Subsequent Event [Line Items] | |
Acquisition agreement date | Mar. 8, 2016 |
Business acquisition, equity interests acquired | 100.00% |
Number of employees | Employees | 21 |
Cash payment to be made for business acquisition | $ | $ 2 |