Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

Significant Accounting Policies [Abstract]

Summary of cash, cash equivalents and investments

The following is a summary of cash, cash equivalents and investments at March 31, 2013 and December 31, 2012 (in thousands):

	Amortized  Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses			Fair Value
As of March 31, 2013
Cash	$	13,164	$	—	$	—		$	13,164
Money market funds		14,437		—		—			14,437
Certificates of deposits		1,160		—		—			1,160
Commercial paper		3,247		1		(1	)		3,247
Corporate notes and bonds		25,770		5		(19	)		25,756
Municipal securities		201		—		—			201
U.S. government agency securities		1,509		—		—			1,509
	$	59,488	$	6	$	(20	)	$	59,474
Classified as:
Cash and cash equivalents	$	29,753	$	—	$	—		$	29,753
Short-term investments		29,735		6		(20	)		29,721
	$	59,488	$	6	$	(20	)	$	59,474

	Amortized  Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses			Fair Value
As of December 31, 2012
Cash	$	11,116	$	—	$	—		$	11,116
Money market funds		17,235		—		—			17,235
Certificates of deposits		1,880		—		(1	)		1,879
Commercial paper		5,745		1		(1	)		5,745
Corporate notes and bonds		20,172		7		(6	)		20,173
U.S. government agency securities		202		—		—			202
	$	56,350	$	8	$	(8	)	$	56,350
Classified as:
Cash and cash equivalents	$	30,853	$	—	$	(1	)	$	30,852
Short-term investments		25,497		8		(7	)		25,498
	$	56,350	$	8	$	(8	)	$	56,350

Summary of estimated fair value of available-for-sale securities classified by the stated maturity date

The following table summarizes the estimated fair value of our available-for-sale securities classified by the stated maturity date of the security (in thousands):

	March 31, 2013		December 31, 2012
Due within one year	$	27,934	$	23,885
Due within two years		1,787		1,613
	$	29,721	$	25,498

Fair value assets measured on recurring basis

In accordance with ASC 820, the following table represents our fair value hierarchy for our financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012 (in thousands):

As of March 31, 2013	Level 1		Level 2		Level 3		Total
Money market funds	$	14,437	$	—	$	—	$	14,437
Certificates of deposits		1,160		—		—		1,160
Commercial paper		—		3,247		—		3,247
Corporate notes and bonds		—		25,756		—		25,756
Municipal securities		—		201		—		201
U.S. government agency securities		—		1,509		—		1,509
Total	$	15,597	$	30,713	$	—	$	46,310

As of December 31, 2012	Level 1		Level 2		Level 3		Total
Money market funds	$	17,235	$	—	$	—	$	17,235
Certificates of deposits		1,879		—		—		1,879
Commercial paper		—		5,745		—		5,745
Corporate notes and bonds		—		20,173		—		20,173
U.S. government agency securities		—		202		—		202
Total	$	19,114	$	26,120	$	—	$	45,234

Fair value of stock-based awards valuation assumptions

The fair value of our stock-based awards was estimated using the following weighted average assumptions for the three months ended March 31, 2013 and 2012:

	Stock Option Plan						Employee Stock Purchase Plan
	Three Months Ended March 31,
	2013			2012			2013			2012
Risk-free interest rate		0.6	%		0.6	%		0.1	%		0.04	%
Expected term (in years)		3.7			3.6			0.5			0.5
Volatility		56.5	%		57.5	%		53.6	%		75.3	%
Expected dividend		0	%		0	%		0	%		0	%
Weighted average grant-date fair value	$	1.75		$	0.98		$	1.30		$	0.77

Stock-based compensation expense

We recorded the following stock-based compensation expense for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013		2012
Stock-based compensation expense related to grants of:
Stock options	$	657	$	980
Employee Stock Purchase Plan ("ESPP")		28		15
restricted stock units ("RSUs")		111		—
	$	796	$	995
Stock-based compensation expense recognized in:
Cost of service	$	92	$	93
Cost of software and other		3		10
Research and development		209		286
Sales and marketing		108		138
General and administrative		384		468
	$	796	$	995

Computation of basic and diluted net loss per share

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts):

	Three months ended  March 31,
	2013		2012
Net income (loss)	$	1,882	$	(4,373	)
Basic:
Weighted-average shares of common stock outstanding		50,085		48,418
Shares used in computing basic earnings (loss) per share		50,085		48,418
Basic earnings (loss) per share	$	0.04	$	(0.09	)
Diluted:
Weighted-average shares of common stock outstanding		50,085		48,418
Add: Common equivalent shares outstanding		2,056		—
Shares used in computing diluted earnings (loss) per share		52,141		48,418
Diluted earnings (loss) per share	$	0.04	$	(0.09	)