Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015 and December 31, 2014 (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of March 31, 2015
Cash	$	11,521	$	-	$	-		$	11,521
Money market funds		5,289		-		-			5,289
Certificates of deposits		3,600		2		-			3,602
Commercial paper		2,996		-		-			2,996
Corporate notes and bonds		42,158		8		(34	)		42,132
U.S. government agency securities		7,497		4		-			7,501
	$	73,061	$	14	$	(34	)	$	73,041
Classified as:
Cash and cash equivalents	$	16,810	$	-	$	-		$	16,810
Short-term investments		56,251		14		(34	)		56,231
	$	73,061	$	14	$	(34	)	$	73,041

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of December 31, 2014
Cash	$	9,572	$	—	$	—		$	9,572
Money market funds		9,859		—		—			9,859
Certificates of deposits		3,600		—		(5	)		3,595
Commercial paper		2,996		—		—			2,996
Corporate notes and bonds		45,819		—		(48	)		45,771
U.S. government agency securities		2,000		—		—			2,000
	$	73,846	$	—	$	(53	)	$	73,793
Classified as:
Cash and cash equivalents	$	23,354	$	—	$	—		$	23,354
Short-term investments		50,492		—		(53	)		50,439
	$	73,846	$	—	$	(53	)	$	73,793

Summary of Estimated Fair Value of Available-for-sale Securities Classified by 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, 2015		December 31, 2014
Due within one year	$	39,110	$	41,448
Due within two years		17,121		8,990
	$	56,231	$	50,438

Financial Assets (Cash Equivalents and Investments) Measured at Fair Value 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, 2015 and December 31, 2014 (in thousands):

As of March 31, 2015	Level 1		Level 2		Level 3		Total
Money market funds	$	5,289	$	—	$	—	$	5,289
Certificates of deposits		—		3,602		—		3,602
Commercial paper		—		2,996		—		2,996
Corporate notes and bonds		—		42,132		—		42,132
U.S. government agency securities		—		7,501		—		7,501
Total	$	5,289	$	56,231	$	—	$	61,520

As of December 31, 2014	Level 1		Level 2		Level 3		Total
Money market funds	$	9,859	$	—	$	—	$	9,859
Certificates of deposits		—		3,595		—		3,595
Commercial paper		—		2,996		—		2,996
Corporate notes and bonds		—		45,771		—		45,771
U.S. government agency securities		—		2,000		—		2,000
Total	$	9,859	$	54,362	$	—	$	64,221

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, which relate entirely to accumulated foreign currency translation losses associated with our foreign subsidiaries and unrealized losses on investments, consisted of the following (in thousands):

	Foreign Currency Translation Losses			Unrealized Losses on Investments			Total
Balance as of December 31, 2014		(1,975	)		(53	)		(2,028	)
Current-period other comprehensive income (loss)		6			33			39
Balance as of March 31, 2015	$	(1,969	)	$	(20	)	$	(1,989	)

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, 2015 and 2014:

	Stock Option Plan					Employee Stock Purchase Plan
	Three Months Ended March 31,
	2015			2014(1)		2015			2014
Risk-free interest rate		1.3	%				0.1	%		0.1	%
Expected term (in years)		3.8			—		0.5			0.5
Volatility		56.6	%		—		37.2	%		53.7	%
Expected dividend		0	%		—		0	%		0	%
Weighted average grant-date fair value	$	0.80			—	$	0.55		$	1.34

(1) The Company did not grant stock options to employees or directors during the three months ended March 31, 2014.

Stock-based Compensation Expense

We recorded the following stock-based compensation expense for the three months ended March 31, 2015 and 2014 (in thousands):

	Three Months Ended March 31,
	2015		2014
Stock-based compensation expense related to grants of:
Stock options	$	252	$	336
Employee Stock Purchase Plan (“ESPP”)		20		29
Restricted stock units (“RSUs”)		439		257
	$	711	$	622
Stock-based compensation expense recognized in:
Cost of service	$	62	$	87
Cost of software and other		4		3
Research and development		130		167
Sales and marketing		66		77
General and administrative		449		288
	$	711	$	622

Computation of Basic and Diluted Earnings (Loss) per Share

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

	Three months ended March 31,
	2015			2014
Net loss	$	(2,431	)	$	(482	)
Basic:
Weighted-average shares of common stock outstanding		54,237			53,313
Shares used in computing basic loss per share		54,237			53,313
Basic loss per share	$	(0.04	)	$	(0.01	)
Diluted:
Weighted-average shares of common stock outstanding		54,237			53,313
Add: Common equivalent shares outstanding		-			-
Shares used in computing diluted loss per share		54,237			53,313
Diluted loss per share	$	(0.04	)	$	(0.01	)

Potential Common Shares Outstanding Excluded from Computation of Diluted Loss per Share

The following potential common shares outstanding were excluded from the computation of diluted loss per share because including them would have been antidilutive (in thousands):

	Three months ended March 31,
	2015		2014
Stock options		3,711		5,139
RSUs		1,370		1,152
Warrants		490		490
Total common share equivalents		5,571		6,781