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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Net revenue (A) $ 34,157 [1] $ 48,958 [1] $ 120,706 [1] $ 155,601 [1]
Cost of revenue (B) 18,928 [2] 18,990 [2] 58,500 [2] 59,015 [2]
Extinguishment of liability (See Note 10) 0 0 (10,580) 0
Gross profit 15,229 29,968 72,786 96,586
Operating expenses:        
Research and development 12,784 15,707 40,110 45,951
Sales and marketing 13,283 19,427 51,022 59,830
General and administrative 7,723 9,869 25,617 28,506
Restructuring and other charges 2,048 1,877 3,805 4,075
Lease exit and related charges 154 0 703 3,066
Gain (Loss) Related to Litigation Settlement 0 11,525 0 11,525
Total operating expenses 35,992 58,405 121,257 152,953
Operating income (loss) (20,763) (28,437) (48,471) (56,367)
Other income (expenses):        
Interest income, net 80 166 396 992
Gain (loss) on sale of available for sale securities, net 0 0 2,371 0
Equity in net loss of Rhapsody investment (1,530) (2,629) (4,170) (6,209)
Other income (expense), net 325 (118) 153 (146)
Total other income (expenses), net (1,125) (2,581) (1,250) (5,363)
Income (loss) before income taxes (21,888) (31,018) (49,721) (61,730)
Income tax expense (benefit) 290 357 1,256 (210)
Net income (loss) (22,178) (31,375) (50,977) (61,520)
Basic net income (loss) per share (USD per share) $ (0.62) $ (0.88) $ (1.42) $ (1.73)
Diluted net income (loss) per share (USD per share) $ (0.62) $ (0.88) $ (1.42) $ (1.73)
Shares used to compute basic net income (loss) per share (shares) 36,003 35,670 35,912 35,490
Shares used to compute diluted net income (loss) per share (shares) 36,003 35,670 35,912 35,490
Comprehensive income (loss):        
Unrealized investment holding gains (losses), net of reclassification adjustments (323) (1,043) (3,936) (28)
Foreign currency translation adjustments, net of reclassification adjustments (2,338) 1,235 (2,147) (391)
Total other comprehensive income (loss) (2,661) 192 (6,083) (419)
Net income (loss) (22,178) (31,375) (50,977) (61,520)
Comprehensive income (loss) $ (24,839) $ (31,183) $ (57,060) $ (61,939)
[1] Quarters ended September 30, 2014 quarter ended September 30, 2014Components of Revenue License Fees5,925 10,503Service Revenue28,232 38,455Net Revenue34,157 48,958 9 months ended 9 months ended September 30, 2014 September 30, 2013Components of Revenue License Fees$21,168 $33,494Service Revenue99,538 122,107Net Revenue$120,706 $155,601
[2] Components of Cost of RevenueSeptember 30, 2014 September 30, 2013 License Fees2,044 2,062 Service Revenue16,884 16,928 Net Revenue Costs18,928 18,990 9 months ended 6 months ended September 30, 2014 September 30, 2013Components of Cost of Revenue License Fees$6,426 $6,377Service Revenue52,074 52,638Net Revenue Costs$58,500 $59,015