Revenue Recognition(Tables)

6 Months Ended

Jun. 30, 2017

Revenue From Contract With Customer [Abstract]

Disaggregated Revenue

The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands):

	Three Months Ended June 30, 2017										Six Months Ended June, 2017
	Third Party Software		Proprietary Software		Total Software		Professional Engineering Services		Total		Third Party Software		Proprietary Software		Total Software		Professional Engineering Services		Total
Primary geographical markets
North America	$	14,956	$	473	$	15,429	$	2,299	$	17,728	$	31,252	$	3,118	$	34,370	$	5,128	$	39,498
Europe		435		—		435		379		814		859		—		859		777		1,636
Asia		114		8		122		184		306		191		17		208		347		555
Total	$	15,505	$	481	$	15,986	$	2,862	$	18,848	$	32,302	$	3,135	$	35,437	$	6,252	$	41,689
Major products/services lines
Third-party software	$	15,505	$	—	$	15,505	$	—	$	15,505	$	32,302	$	—	$	32,302	$	—	$	32,302
Proprietary software		—		481		481		—		481		—		3,135		3,135		—		3,135
Professional engineering services		—		—		—		2,862		2,862		—		—		—		6,252		6,252
Total	$	15,505	$	481	$	15,986	$	2,862	$	18,848	$	32,302	$	3,135	$	35,437	$	6,252	$	41,689
Timing of revenue recognition
Products transferred at a point in time	$	15,505	$	481	$	15,986	$	91	$	16,077	$	32,302	$	3,135	$	35,437	$	681	$	36,118
Products and services transferred over time		—		—		—		2,771		2,771		—		—		—		5,571		5,571
Total	$	15,505	$	481	$	15,986	$	2,862	$	18,848	$	32,302	$	3,135	$	35,437	$	6,252	$	41,689

Schedule of Contract Balances and Changes in Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	As of June 30, 2017
Receivables	$	17,949
Short-term contract assets		636
Long-term contract assets		27
Short-term contract liabilities (deferred revenue)		2,287
Long-term contract liabilities (deferred revenue)		162

Significant changes in the contract assets and the contract liabilities balances during the periods are as follows (in thousands):

	Three Months Ended June 30, 2017				Six Months Ended June 30, 2017
	Contract Assets		Contract Liabilities*		Contract Assets		Contract Liabilities*
Revenue recognized that was included in the contract liability (def. revenue) balance at Jan. 1, 2017	$	—	$	83	$	—	$	2,710
Increases due to cash received, excluding amounts recognized as revenue during the period		—		46		—		975
Transferred to receivables from contract assets recognized at January 1, 2017		29		—		780		—
Performance obligations satisfied in previous periods		—		—		—		—
* Comprised of Deferred Revenue

Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include amounts of variable consideration attributable to royalties or unexercised contract renewals (in thousands):

	Remainder of 2017		2018		2019
Third-party software	$	72	$	110	$	36
Proprietary software		1,630		540		196
Professional engineering services		217		—		—

Summary of Impact of Adoption of Accounting Standards

In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated statements of operations was as follows:

	Three months ended June 30, 2017									Six months ended June, 2017
(in thousands, except per share amounts)	As Reported			Balances without adoption of Topic 606			Effect of Change Higher/(Lower)			As Reported			Balances without adoption of Topic 606			Effect of Change Higher/(Lower)
Revenue:
Software	$	15,986		$	16,257		$	(271	)	$	35,437		$	33,353		$	2,084
Professional engineering service		2,862			2,985			(123	)		6,252			5,929			323
Total revenue		18,848			19,242			(394	)		41,689			39,282			2,407
Cost of revenue:
Software		13,142			13,142			—			27,256			27,256			—
Professional engineering service		1,833			1,956			(123	)		4,307			4,106			201
Total cost of revenue		14,975			15,098			(123	)		31,563			31,362			201
Gross profit		3,873			4,144			(271	)		10,126			7,920			2,206
Operating expenses:
Selling, general and administrative		5,046			5,040			6			9,911			9,764			147
Research and development		1,446			1,446			—			2,793			2,793			—
Total operating expenses		6,492			6,486			6			12,704			12,557			147
Loss from operations		(2,619	)		(2,342	)		(277	)		(2,578	)		(4,637	)		2,059
Net loss	$	(2,560	)	$	(2,283	)	$	(277	)	$	(2,358	)	$	(4,417	)	$	2,059
Basic and diluted loss per share	$	(0.20	)	$	(0.18	)	$	(0.02	)	$	(0.19	)	$	(0.35	)	$	0.16

In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated balance sheet was as follows:

	As of June 30, 2017
(in thousands)	As Reported			Balances without adoption of Topic 606			Effect of Change Higher/(Lower)
Assets:
Contract Assets	$	636		$	540		$	96
Liabilities:
Deferred revenue - current		2,287			3,293			(1,006	)
Deferred revenue - noncurrent		162			1,120			(958	)
Shareholders' Equity:
Accumulated deficit		(98,576	)		(100,635	)		2,059