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Quarterly Results of Operations
 12 Months Ended
Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information [Text Block]
Quarterly Results of Operations

The following table sets forth selected unaudited quarterly statements of operations data for the eight quarters ending March 31, 2011 through December 31, 2012. The information for each of these quarters has been prepared on the same basis as our audited financial statements and, in the opinion of management, includes all adjustments necessary for a fair statement of the results of operations for such periods. This data should be read in conjunction with the financial statements and related notes.

 
 
Three Months Ended
 
 
March 31,
 
June 30,
 
September 30,
 
December 31,
 
 
2012
 
2012 (1)
 
2012 (2)
 
2012 (3)
 
 
(in thousands, except per share information)
 
 
 
 
 
 
 
 
 
Total revenues, net
 
$
27,531

 
$
26,824

 
$
26,025

 
$
30,780

Gross profit
 
17,244

 
15,875

 
15,222

 
19,130

Net loss
 
(1,438
)
 
(399
)
 
(608
)
 
(973
)
Net loss per common share - basic (4)
 
(0.06
)
 
(0.02
)
 
(0.02
)
 
(0.04
)
Net loss per common share - diluted (4)
 
(0.06
)
 
(0.02
)
 
(0.02
)
 
(0.04
)
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended
 
 
March 31,
 
June 30,
 
September 30,
 
December 31,
 
 
2011 (5)
 
2011
 
2011 (6)
 
2011
 
 
(in thousands, except per share information)
 
 
 
 
 
 
 
 
 
Total revenues, net
 
$
29,177

 
$
27,860

 
$
26,595

 
$
29,689

Gross profit
 
19,787

 
18,092

 
16,312

 
18,938

Gain on settlement and change in fair value of contingent consideration (7)
 
506

 
(6,439
)
 
—

 
—

Net (loss) income
 
(1,125
)
 
3,393

 
686

 
(6,527
)
Net (loss) income per common share - basic (4)
 
(0.08
)
 
0.14

 
0.03

 
(0.27
)
Net (loss) income per common share - diluted (4)
 
(0.08
)
 
0.13

 
0.03

 
(0.27
)

(1) 
During the second quarter of 2012, the Company recorded correcting entries to increase operating expenses by $51 thousand for the correction of immaterial errors in accrued expenses in the three months ended June 30, 2012.
(2) 
During the third quarter of 2012, the Company recorded a correcting entry to reduce stock-based compensation expense by $32 thousand for the correction of immaterial errors in additional paid-in capital for the three months ended September 30, 2012.
(3)
During the fourth quarter of 2012, the Company recorded correcting entries to reduce revenue by $87 thousand for the correction of immaterial errors in deferred revenue balances, to reduce stock-based compensation expense by $106 thousand for the correction of immaterial errors in additional paid-in capital, to increase royalty expenses by $39 thousand for the correction of immaterial errors in accrued royalties and to increase sales tax expense by $106 thousand for the correction of immaterial errors in other assets.
(4) 
Net (loss) income per share for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period.
(5) 
During the first quarter of 2011, the Company recorded correcting entries to increase consulting expenses by $36 thousand for the correction of immaterial errors in accrued expenses and to increase revenue by $88 thousand for the correction of immaterial errors in deferred revenue.
(6) 
During the third quarter of 2011, the Company recorded correcting entries to increase royalty and consulting expenses by $127 thousand for the correction of immaterial errors in capitalization of costs related to internal use software.
Management does not believe the misstatements or correcting adjustments described in footnotes one to three, five and six above are material to any previously issued interim or annual financial statements or to the results for the year ended December 31, 2012.
(7) 
For the three months ended June 30, 2011, includes a $6.4 million gain relating to the settlement of the contingent consideration liability with the sellers of MedCafe, Inc., a company that Epocrates acquired in 2010.
The Company's revenue is generally highest in the fourth quarter of each calendar year, primarily as a result of the annual budget approval processes of many of its customers in the pharmaceutical industry, and this trend is expected to continue. The Company may also experience fluctuations in its quarterly results, due to factors including, but not limited to, the timing of revenue recognition, its ability to retain and attract new customers and the general economic and regulatory environment in the U.S. Due to these factors, management believes that quarter-to-quarter comparisons of operating results are not meaningful and should not be relied upon as an indication of future performance.