Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2016

Significant Accounting Policies [Abstract]

Summary of Cash, Cash Equivalents and Investments

The following is a summary of cash, cash equivalents and investments at September 30, 2016 and December 31, 2015 (in thousands):

As of September 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash	$	6,737	$	—	$	—		$	6,737
Money market funds		8,994		—		—			8,994
Certificates of deposit		1,780		1		—			1,781
Commercial paper		5,976		—		—			5,976
Corporate notes and bonds		21,061		7		(24	)		21,044
U.S. government agency securities		9,958		7		—			9,965
	$	54,506	$	15	$	(24	)	$	54,497
Classified as:
Cash and cash equivalents	$	15,731	$	—	$	—		$	15,731
Short-term investments		38,775		15		(24	)		38,766
	$	54,506	$	15	$	(24	)	$	54,497

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of December 31, 2015
Cash	$	8,486	$	—	$	—		$	8,486
Money market funds		19,112		—		—			19,112
Certificates of deposit		2,980		—		(1	)		2,979
Commercial paper		996		—		—			996
Corporate notes and bonds		31,255		—		(83	)		31,172
U.S. government agency securities		2,996		—		(7	)		2,989
	$	65,825	$	—	$	(91	)	$	65,734
Classified as:
Cash and cash equivalents	$	27,598	$	—	$	—		$	27,598
Short-term investments		38,227		—		(91	)		38,136
	$	65,825	$	—	$	(91	)	$	65,734

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):

	September 30, 2016		December 31, 2015
Due within one year	$	27,713	$	23,588
Due within two years		11,053		14,548
	$	38,766	$	38,136

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 September 30, 2016 and December 31, 2015 (in thousands):

As of September 30, 2016	Level 1		Level 2		Level 3		Total
Money market funds	$	8,994	$	—	$	—	$	8,994
Certificates of deposit		—		1,781		—		1,781
Commercial paper		—		5,976		—		5,976
Corporate notes and bonds		—		21,044		—		21,044
U.S. government agency securities		—		9,965		—		9,965
Total	$	8,994	$	38,766	$	—	$	47,760

As of December 31, 2015	Level 1		Level 2		Level 3		Total
Money market funds	$	19,112	$	—	$	—	$	19,112
Certificates of deposit		—		2,979		—		2,979
Commercial paper		—		996		—		996
Corporate notes and bonds		—		31,172		—		31,172
U.S. government agency securities		—		2,989		—		2,989
Total	$	19,112	$	38,136	$	—	$	57,248

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, 2015	$	(2,211	)	$	(91	)	$	(2,302	)
Current-period other comprehensive income (loss)		(13	)		82			69
Balance as of September 30, 2016	$	(2,224	)	$	(9	)	$	(2,233	)

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 and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Stock Option Plan:
Risk-free interest rate		0.99	%		1.33	%		0.92	%		1.25	%
Expected term	3.90 years			3.77 years			3.89 years			3.75 years
Volatility		48.89	%		51.42	%		48.34	%		54.65	%
Expected dividend		0	%		0	%		0	%		0	%
Weighted average fair value (per share)	$	0.33		$	0.51		$	0.32		$	0.71

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Employee Stock Purchase Plan:
Risk-free interest rate		0.38	%		0.09	%		0.38	%		0.09	%
Expected term	0.5 years			0.5 years			0.5 years			0.5 years
Volatility		48.86	%		39.25	%		48.86	%		39.25	%
Expected dividend		0	%		0	%		0	%		0	%
Weighted average fair value (per share)	$	0.28		$	0.38		$	0.28		$	0.38

Stock-based Compensation Expense

We recorded the following stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Stock-based compensation expense related to grants of:
Stock options	$	266	$	242	$	679	$	747
Employee Stock Purchase Plan (“ESPP”)		10		14		32		52
Restricted Stock Units (“RSU”)		385		479		1,065		1,430
	$	661	$	735	$	1,776	$	2,229
Stock-based compensation expense recognized in:
Cost of services	$	43	$	62	$	134	$	187
Cost of software and other		1		2		4		8
Research and development		156		156		346		442
Sales and marketing		79		110		121		276
General and administrative		382		405		1,171		1,316
	$	661	$	735	$	1,776	$	2,229

Computation of Basic and Diluted Net 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 September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net loss	$	(2,129	)	$	(3,871	)	$	(12,467	)	$	(21,911	)
Basic:
Weighted-average shares of common stock outstanding		55,337			54,637			55,116			54,465
Shares used in computing basic loss per share		55,337			54,637			55,116			54,465
Basic loss per share	$	(0.04	)	$	(0.07	)	$	(0.23	)	$	(0.40	)
Diluted:
Weighted-average shares of common stock outstanding		55,337			54,637			55,116			54,465
Add: Common equivalent shares outstanding		—			—			—			—
Shares used in computing diluted loss per share		55,337			54,637			55,116			54,465
Diluted loss per share	$	(0.04	)	$	(0.07	)	$	(0.23	)	$	(0.40	)

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):

	As of September 30,
	2016		2015
Stock options		4,475		3,733
RSUs		1,375		1,788
Warrants		324		490
Total common share equivalents		6,174		6,011