Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017 and December 31, 2016 (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of September 30, 2017
Cash	$	7,654	$	—	$	—		$	7,654
Money market funds		13,600		—		—			13,600
Certificates of deposit		1,211		—		(1	)		1,210
Commercial paper		997		—		—			997
Corporate notes and bonds		20,036		1		(19	)		20,018
U.S. government agency securities		5,917		—		(4	)		5,913
	$	49,415	$	1	$	(24	)	$	49,392
Classified as:
Cash and cash equivalents	$	21,254	$	—	$	—		$	21,254
Short-term investments		28,161		1		(24	)		28,138
	$	49,415	$	1	$	(24	)	$	49,392

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of December 31, 2016
Cash	$	7,593	$	—	$	—		$	7,593
Money market funds		9,297		—		—			9,297
Certificates of deposit		1,273		—		—			1,273
Commercial paper		4,989		—		—			4,989
Corporate notes and bonds		19,357		—		(40	)		19,317
U.S. government agency securities		10,941		1		(2	)		10,940
	$	53,450	$	1	$	(42	)	$	53,409
Classified as:
Cash and cash equivalents	$	16,890	$	—	$	—		$	16,890
Short-term investments		36,560		1		(42	)		36,519
	$	53,450	$	1	$	(42	)	$	53,409

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, 2017		December 31, 2016
Due within one year	$	21,647	$	27,730
Due within two years		6,491		8,789
	$	28,138	$	36,519

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, 2017 and December 31, 2016 (in thousands):

As of September 30, 2017	Level 1		Level 2		Level 3		Total
Money market funds	$	13,600	$	—	$	—	$	13,600
Certificates of deposit		—		1,210		—		1,210
Commercial paper		—		997		—		997
Corporate notes and bonds		—		20,018		—		20,018
U.S. government agency securities		—		5,913		—		5,913
Total	$	13,600	$	28,138	$	—	$	41,738

As of December 31, 2016	Level 1		Level 2		Level 3		Total
Money market funds	$	9,297	$	—	$	—	$	9,297
Certificates of deposit		—		1,273		—		1,273
Commercial paper		—		4,989		—		4,989
Corporate notes and bonds		—		19,317		—		19,317
U.S. government agency securities		—		10,940		—		10,940
Total	$	9,297	$	36,519	$	—	$	45,816

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, 2016	$	(2,288	)	$	(41	)	$	(2,329	)
Current-period other comprehensive income		175			18			193
Balance as of September 30, 2017	$	(2,113	)	$	(23	)	$	(2,136	)

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, 2017 and 2016. There were no stock option grants during the three month period ended September 30, 2017.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017				2016
Stock Option Plan:
Risk-free interest rate		—		0.99	%			1.43	%			0.92	%
Expected term		—	3.90 years			3.58 years				3.89 years
Volatility		—		48.89	%			46.21	%			48.34	%
Expected dividend		—		0	%			0	%			0	%
Weighted average fair value (per share)		—	$	0.99			$	0.96			$	0.96

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017				2016				2017				2016
Employee Stock Purchase Plan:
Risk-free interest rate			1.02	%			0.38	%			1.02	%			0.38	%
Expected term	0.5 years				0.5 years				0.5 years				0.5 years
Volatility			33.66	%			48.86	%			33.66	%			48.86	%
Expected dividend			0	%			0	%			0	%			0	%
Weighted average fair value (per share)		$	.59			$	0.84			$	.59			$	0.84

Stock-based Compensation Expense

We recorded the following stock-based compensation expense for the three and nine months ended September 30, 2017 and 2016 (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
Stock-based compensation expense related to grants of:
Stock options	$	27		$	266	$	86	$	679
Employee Stock Purchase Plan ("ESPP")		5			10		16		32
Restricted Stock Units ("RSU")		(4	)		385		193		1,065
	$	28		$	661	$	295	$	1,776
Stock-based compensation expense recognized in:
Cost of services	$	19		$	43	$	83	$	134
Cost of software and other		—			1		3		4
Research and development		(18	)		156		62		346
Sales and marketing		12			79		34		121
General and administrative		15			382		113		1,171
	$	28		$	661	$	295	$	1,776

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					Nine Months
	Ended					Ended
	September 30,					September 30,
	2017		2016			2017			2016
Net income (loss)	$	231	$	(2,129	)	$	(1,220	)	$	(12,467	)
Basic:
Weighted-average shares of common stock outstanding		18,692		18,446			18,613			18,372
Shares used in computing basic income (loss) per share		18,692		18,446			18,613			18,372
Basic income (loss) per share		0.01		(0.12	)		(0.07	)		(0.69	)
Diluted:
Weighted-average shares of common stock outstanding		18,692		18,446			18,613			18,372
Add: Common equivalent shares outstanding		22		-			-			-
Shares used in computing diluted income (loss) per share		18,714		18,446			18,613			18,372
Diluted income (loss) per share	$	0.01	$	(0.12	)	$	(0.07	)	$	(0.69	)

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,
	2017		2016
Stock options		417		4,475
RSUs		-		1,375
Warrants		-		324
Total common share equivalents		417		6,174