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&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&lt;b&gt;&lt;i&gt;Cash and Cash Equivalents&lt;/i&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. Cash equivalents were $63.6&amp;#160;million, $42.5&amp;#160;million and $117.5&amp;#160;million as of December&amp;#160;31, 2011, 2012 and June&amp;#160;30, 2013 (unaudited), respectively, consisting primarily of money market funds.&lt;/font&gt;&lt;/p&gt;
&lt;/div&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Glossary Cash

 -URI http://asc.fasb.org/extlink&amp;oid=6506951



Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Glossary Cash Equivalents

 -URI http://asc.fasb.org/extlink&amp;oid=6507016



Reference 4: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 230

 -SubTopic 10

 -Section 50

 -Paragraph 1

 -URI http://asc.fasb.org/extlink&amp;oid=6367179&amp;loc=d3e4273-108586



Reference 5: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 02

 -Paragraph 1

 -Article 5



Reference 6: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 305

 -SubTopic 10

 -URI http://asc.fasb.org/subtopic&amp;trid=2122427



Reference 7: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Financial Reporting Release (FRR)

 -Number 203

 -Paragraph 02-03



Reference 8: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Technical Practice Aid (TPA)

 -Number 2110

 -Paragraph 6

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 95

 -Paragraph 7, 8, 9, 10

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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</LabelSeparator><Level>2</Level><ElementName>us-gaap_ReceivablesPolicyTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><PreferredLabelRole>terseLabel</PreferredLabelRole><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="D2013Q2YTD" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;div style="font-size:10.0pt;font-family:Times New Roman;"&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&lt;b&gt;&lt;i&gt;Allowance for Doubtful Accounts&lt;/i&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Trade accounts receivable are carried at the original invoiced amount less an allowance made for doubtful accounts. The Company maintains an allowance for doubtful accounts based on the probability of future collection. When management becomes aware of circumstances that may decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the net receivable to the amount that management reasonably believes will be collected. For all other customers, management determines the adequacy of the allowance based on historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with specific accounts. The Company reviews its allowance for doubtful accounts monthly and writes off receivable balances that are deemed to be uncollectible. Increases in the allowance are recorded in general and administrative expense in the period incurred. The Company does not have any off balance sheet credit exposure related to its customers.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Below is a summary of the changes in allowance for doubtful accounts for 2011, 2012 and the six months ended June&amp;#160;30, 2013 (in thousands):&lt;/font&gt;&lt;/p&gt;
&lt;div style="POSITION: relative; PADDING-BOTTOM: 0pt; PADDING-LEFT: 0pt; WIDTH: 67%; PADDING-RIGHT: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt;"&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&lt;!-- COMMAND=ADD_TABLEWIDTH,"120%" --&gt;&lt;/font&gt;&lt;/p&gt;
&lt;!-- User-specified TAGGED TABLE --&gt;
&lt;div align="center"&gt;
&lt;table border="0" cellspacing="0" cellpadding="0" width="120%" style="text-align:left;"&gt;

&lt;tr style="padding:0;"&gt;&lt;!-- TABLE COLUMN WIDTHS SET --&gt;
&lt;td style="FONT-FAMILY: arial;" align="left"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="12"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="7" align="right"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="82"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="12"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="7" align="right"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="88"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="12"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="7" align="right"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="63"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="12"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="7" align="right"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="68"&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" width="12"&gt;&lt;/td&gt;&lt;!-- TABLE COLUMN WIDTHS END --&gt;&lt;/tr&gt;
&lt;tr style="padding:0;" valign="bottom"&gt;
&lt;th style="FONT-FAMILY: arial;" align="center"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;" colspan="2" nowrap="nowrap" align="center"&gt;
&lt;div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 62pt; MARGIN-BOTTOM: 0pt;"&gt;&lt;font size="2"&gt;&lt;b&gt;Balance at&lt;br /&gt;
Beginning of&lt;br /&gt;
Period &lt;!-- COMMAND=ADD_SCROPPEDRULE,62pt --&gt;&lt;/b&gt;&lt;/font&gt;&lt;/div&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;" colspan="2" nowrap="nowrap" align="center"&gt;
&lt;div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 67pt; MARGIN-BOTTOM: 0pt;"&gt;&lt;font size="2"&gt;&lt;b&gt;Provision, net&lt;br /&gt;
of Recoveries &lt;!-- COMMAND=ADD_SCROPPEDRULE,67pt --&gt;&lt;/b&gt;&lt;/font&gt;&lt;/div&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;" colspan="2" nowrap="nowrap" align="center"&gt;
&lt;div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 47pt; MARGIN-BOTTOM: 0pt;"&gt;&lt;font size="2"&gt;&lt;b&gt;Write-offs &lt;!-- COMMAND=ADD_SCROPPEDRULE,47pt --&gt;&lt;/b&gt;&lt;/font&gt;&lt;/div&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;" colspan="2" nowrap="nowrap" align="center"&gt;
&lt;div style="BORDER-BOTTOM: #000000 1pt solid; WIDTH: 51pt; MARGIN-BOTTOM: 0pt;"&gt;&lt;font size="2"&gt;&lt;b&gt;Balance at&lt;br /&gt;
End of&lt;br /&gt;
Period &lt;!-- COMMAND=ADD_SCROPPEDRULE,51pt --&gt;&lt;/b&gt;&lt;/font&gt;&lt;/div&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/th&gt;&lt;/tr&gt;
&lt;tr style="padding:0;" valign="bottom" bgcolor="#CCEEFF"&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;
&lt;p style="TEXT-INDENT: -10pt; FONT-FAMILY: arial; MARGIN-LEFT: 10pt;"&gt;&lt;font size="2"&gt;Year ended December&amp;#160;31, 2010&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;110&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;206&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;(234&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;82&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="padding:0;" valign="bottom" bgcolor="white"&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;
&lt;p style="TEXT-INDENT: -10pt; FONT-FAMILY: arial; MARGIN-LEFT: 10pt;"&gt;&lt;font size="2"&gt;Year ended December&amp;#160;31, 2011&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;82&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;321&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;(178&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;225&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="padding:0;" valign="bottom" bgcolor="#CCEEFF"&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;
&lt;p style="TEXT-INDENT: -10pt; FONT-FAMILY: arial; MARGIN-LEFT: 10pt;"&gt;&lt;font size="2"&gt;Year ended December&amp;#160;31, 2012&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;225&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;362&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;(251&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;336&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="padding:0;" valign="bottom" bgcolor="white"&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;
&lt;p style="TEXT-INDENT: -10pt; FONT-FAMILY: arial; MARGIN-LEFT: 10pt;"&gt;&lt;font size="2"&gt;Six months ended June&amp;#160;30, 2013 (unaudited)&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;336&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;274&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;(252&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;" align="right"&gt;&lt;font size="2"&gt;358&lt;/font&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;&lt;/div&gt;
&lt;!-- end of user-specified TAGGED TABLE --&gt;&lt;/div&gt;
&lt;/div&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for trade and other accounts receivable, and finance, loan and lease receivables, including those classified as held for investment and held for sale. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the valuation allowance for receivables is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of origination fees and costs, including the amortization method for net deferred fees or costs (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status and (7) the treatment of foreclosures or repossessions (8) the nature and amount of any guarantees to repurchase receivables.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 235

 -SubTopic 10

 -Section 50

 -Paragraph 3

 -URI http://asc.fasb.org/extlink&amp;oid=6367646&amp;loc=d3e18780-107790



Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 114

 -Paragraph 20

 -Subparagraph b

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Emerging Issues Task Force (EITF)

 -Number 92-5

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 4: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 310

 -SubTopic 10

 -URI http://asc.fasb.org/subtopic&amp;trid=2196772



Reference 5: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Statement of Position (SOP)

 -Number 01-6

 -Paragraph 13

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 6: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 02

 -Paragraph 3-5

 -Article 5



Reference 7: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 310

 -SubTopic 20

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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 -Name Statement of Position (SOP)

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&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company derives its revenue from two sources:&lt;/font&gt;&lt;/p&gt;
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&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;(1)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;/font&gt;&lt;font size="2"&gt;&lt;i&gt;Subscription and support revenue&lt;/i&gt;&lt;/font&gt;&lt;font size="2"&gt;. Subscription and support revenue consists of subscription fees from customers accessing the Company's cloud-based software platform and applications, as well as related customer support services; and&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;(2)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;/font&gt;&lt;font size="2"&gt;&lt;i&gt;Professional services and other revenue&lt;/i&gt;&lt;/font&gt;&lt;font size="2"&gt;. Professional services and other revenue consists of fees associated with providing expert services that educate and assist the Company's customers on the best use of the Company's solutions as well as assist in the implementation of the Company's solution.&lt;/font&gt;&lt;/p&gt;&lt;/li&gt;&lt;/ul&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Revenue recognition commences when all of the following conditions are met:&lt;/font&gt;&lt;/p&gt;
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&lt;dt style="FONT-FAMILY: arial; MARGIN-BOTTOM: -11pt;"&gt;&lt;font size="2"&gt;&amp;#8226;&lt;/font&gt;&lt;/dt&gt;
&lt;dd style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;Persuasive evidence of an arrangement exists;&lt;/font&gt; &lt;font size="2"&gt;&lt;br /&gt;
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&lt;dt style="FONT-FAMILY: arial; MARGIN-BOTTOM: -11pt;"&gt;&lt;font size="2"&gt;&amp;#8226;&lt;/font&gt;&lt;/dt&gt;
&lt;dd style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;Collectability is reasonably assured.&lt;/font&gt;&lt;/dd&gt;&lt;/dl&gt;&lt;/li&gt;&lt;/ul&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In the majority of instances, revenue from new customers is generated under sales agreements with multiple elements, comprised of subscription and support fees from customers accessing the Company's cloud-based platform and applications and professional consultation services. The Company evaluates each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has stand-alone value and delivery of the undelivered element is probable and within the Company's control. Subscription and support have stand-alone value because they are routinely sold separately by the Company. Most of the professional services have stand-alone value because the Company has sold professional services separately, and there are several third party vendors that routinely provide similar professional services to the Company's customers on a stand-alone basis. Prior to the fourth quarter of 2011, some of the Company's professional services did not have stand-alone value because they were sold together with the subscription and support services. As such revenue was recognized ratably over the related subscription period, not to exceed billings amounts.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In October 2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No.&amp;#160;2009-13,&lt;/font&gt; &lt;font size="2"&gt;&lt;i&gt;Revenue Recognition (Topic 605): Multiple Deliverable Revenue Arrangements&amp;#160;&amp;#8212; a consensus of the FASB Emerging Issues Task Force&lt;/i&gt;&lt;/font&gt; &lt;font size="2"&gt;(ASU 2009-13), which amended the previous multiple deliverable arrangements' accounting guidance. ASU 2009-13 amended the accounting standards for multiple-element revenue arrangements to:&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Provide updated guidance on whether multiple deliverables exist, how the elements in an arrangement should be separated, and how the consideration should be allocated;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Require an entity to allocate revenue in an arrangement using estimated selling prices (ESP) of each element if a vendor does not have vendor specific objective evidence of selling price (VSOE) or third party evidence of selling price (TPE); and&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Eliminate the use of the residual method and require a vendor to allocate revenue using the relative selling price method, which eliminated the requirement to have VSOE of fair value on undelivered elements for revenue recognition.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company adopted this accounting guidance prospectively beginning January&amp;#160;1, 2011, for applicable arrangements entered into or materially modified on or after January&amp;#160;1, 2011 (the beginning of the Company's fiscal year).&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Prior to the adoption of ASU 2009-13, the Company was not able to establish VSOE of fair value for the undelivered elements, which in most instances was subscription and support services. As a result, the Company typically recognized subscription, support and professional services revenue ratably over the subscription and support contract period and presented subscription and support revenue and professional services revenue in the consolidated statements of operations and comprehensive loss based on the respective contractual prices.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As a result of the adoption of ASU 2009-13, the Company allocates total arrangement fees to each element in a multiple-element arrangement based on the relative selling price hierarchy of each element unless the fee allocated to the subscription and support under this method is less than the fee subject to refund if the performance conditions are not met. In these instances, since the professional services are generally completed prior to completion of the subscription and support, the allocation of the fee for subscription and support is at least equal to the contractual amounts subject to the performance condition.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The relative selling price hierarchy consists of the following: Selling price for a deliverable is based on its 1)&amp;#160;VSOE, if available, 2)&amp;#160;TPE, if VSOE is not available, or 3)&amp;#160;ESP, if neither VSOE nor TPE is available. Because the Company has been unable to establish VSOE or TPE for the elements of its arrangements, the Company establishes the ESP for each element primarily by considering the median of actual sales prices of each type of subscription and support sold and the weighted average of actual sales prices of professional services sold. For subscription and support arrangements, management considered other factors such as database sizes, pricing practices and market considerations.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Subscription and support revenue is recognized commencing upon delivery of the Company's cloud-based services, which is the date a new subscription is provisioned and made available to a new customer, or new or expanded capabilities are provisioned and added to an existing subscription, provided that all of the other revenue recognition criteria are first met, referred to as the "Commencement Date". Subscription and support revenue is recognized from the Commencement Date ratably thereafter over the remaining contractual term, which is generally three to 36&amp;#160;months. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Professional services and other have stand-alone value from the related subscription services. The majority of the Company's professional services contracts are offered on a time and material basis. When these services are not combined with subscription and support revenue in a multiple-element arrangement, services revenue is recognized as the services are rendered. In 2010 and 2011, the Company's professional services also consisted of a small number of fixed price contracts, where revenue is recognized on a proportional performance method, based on input measures, which include making reasonably dependable estimates of the total effort to complete the project. Certain standard and non-standard professional service arrangements include customer acceptance provisions. Services provided under arrangements that include customer acceptance provisions are typically provided on a time and material basis, and the revenue is deferred and recognized upon customer acceptance of the service deliverable.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company's professional services also consist of short-term implementation services, which are offered at a flat fee. The enablement services teams assist customers with standard adoption procedures for the Company's platform. Because such enablement services typically are completed within a short period (usually one to ten days), the Company recognizes revenue from this service upon completion. The implementation services consist of short-term (usually spanning approximately 90&amp;#160;days) "use it or lose it", services to assist customers with standard implementation and to implement the customer's first marketing campaign which are offered at a flat fee. Such flat fees are recognized ratably over the 90&amp;#160;day period.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Education revenue is recognized after the services are performed.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company's time and material and fixed price professional service contracts are generally delivered within one year from the date of the arrangement.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: arial;"&gt;&lt;font size="2"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company has established processes to determine ESP, allocate revenue in multiple-element arrangements using ESP, and make reasonably dependable estimates of the proportional performance method for professional services. Had the Company not adopted ASU 2009-13 effective January&amp;#160;1, 2011, and recognized all arrangements ratably, the Company's revenue for the year ended December&amp;#160;31, 2011 would have been lower by approximately $453,000.&lt;/font&gt;&lt;/p&gt;
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