Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 22, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'Monotype Imaging Holdings Inc. | ' |
Entity Central Index Key | '0001385292 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 39,174,381 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $80,804 | $78,411 |
Accounts receivable, net of allowance for doubtful accounts of $167 at June 30, 2014 and $171 at December 31, 2013 | 9,455 | 8,317 |
Income tax refunds receivable | 799 | 3,334 |
Deferred income taxes | 3,558 | 3,557 |
Prepaid expenses and other current assets | 3,201 | 3,394 |
Total current assets | 97,817 | 97,013 |
Property and equipment, net | 5,731 | 3,568 |
Goodwill | 176,927 | 176,350 |
Intangible assets, net | 71,525 | 76,684 |
Other assets | 2,598 | 2,744 |
Total assets | 354,598 | 356,359 |
Current liabilities: | ' | ' |
Accounts payable | 1,520 | 1,112 |
Accrued expenses and other current liabilities | 18,431 | 20,439 |
Deferred revenue | 8,935 | 6,767 |
Total current liabilities | 28,886 | 28,318 |
Deferred revenue | 750 | 972 |
Deferred income taxes | 34,158 | 32,600 |
Reserve for income taxes, net of current portion | 2,795 | 2,496 |
Accrued pension benefits | 5,212 | 5,098 |
Commitments and contingencies (Note 15) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.001 par value, Authorized shares: 10,000,000; Issued and outstanding: none | ' | ' |
Common stock, $0.001 par value, Authorized shares: 250,000,000; Issued: 39,162,101 at June 30, 2014 and 39,277,713 at December 31, 2013 | 39 | 39 |
Additional paid-in capital | 219,517 | 209,376 |
Treasury stock, at cost, 1,075,375 shares at June 30, 2014 and 204,830 shares at December 31, 2013 | -26,160 | -2,279 |
Retained earnings | 88,564 | 78,741 |
Accumulated other comprehensive loss | 837 | 998 |
Total stockholders' equity | 282,797 | 286,875 |
Total liabilities and stockholders' equity | $354,598 | $356,359 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $167 | $171 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 39,162,101 | 39,277,713 |
Treasury stock, shares | 1,075,375 | 204,830 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $44,963 | $41,085 | $91,035 | $83,124 |
Cost of revenue | 7,322 | 6,016 | 13,830 | 12,025 |
Cost of revenue-amortization of acquired technology | 1,146 | 1,139 | 2,291 | 2,277 |
Total cost of revenue | 8,468 | 7,155 | 16,121 | 14,302 |
Gross profit | 36,495 | 33,930 | 74,914 | 68,822 |
Operating expenses: | ' | ' | ' | ' |
Marketing and selling | 11,987 | 10,392 | 23,105 | 20,311 |
Research and development | 4,910 | 4,891 | 10,663 | 9,863 |
General and administrative | 5,386 | 4,980 | 11,584 | 9,685 |
Amortization of other intangible assets | 1,431 | 1,487 | 2,863 | 2,977 |
Total operating expenses | 23,714 | 21,750 | 48,215 | 42,836 |
Income from operations | 12,781 | 12,180 | 26,699 | 25,986 |
Other (income) expense: | ' | ' | ' | ' |
Interest expense | 256 | 313 | 534 | 731 |
Interest income | -6 | -5 | -8 | -5 |
Loss on foreign exchange | 136 | 263 | 170 | 840 |
Loss on derivatives | 158 | 0 | 214 | 0 |
Other income, net | -3 | -1 | -4 | -37 |
Total other expense | 541 | 570 | 906 | 1,529 |
Income before provision for income taxes | 12,240 | 11,610 | 25,793 | 24,457 |
Provision for income taxes | 4,549 | 4,299 | 9,657 | 8,530 |
Net income | 7,691 | 7,311 | 16,136 | 15,927 |
Net income available to common stockholders-basic | 7,532 | 7,182 | 15,847 | 15,658 |
Net income available to common stockholders-diluted | $7,534 | $7,185 | $15,847 | $15,665 |
Net income per common share: | ' | ' | ' | ' |
Basic | $0.19 | $0.19 | $0.41 | $0.42 |
Diluted | $0.19 | $0.18 | $0.40 | $0.40 |
Weighted average number of shares: | ' | ' | ' | ' |
Basic | 38,714,178 | 37,725,082 | 38,713,432 | 37,415,514 |
Diluted | 39,623,517 | 39,029,653 | 39,865,906 | 38,758,807 |
Dividends declared per common share | $0.08 | $0.06 | $0.16 | $0.12 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $7,691 | $7,311 | $16,136 | $15,927 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrecognized actuarial gain | ' | 11 | ' | 11 |
Foreign currency translation adjustments | -166 | 363 | -161 | -680 |
Comprehensive income | $7,525 | $7,685 | $15,975 | $15,258 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $16,136 | $15,927 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 5,970 | 6,019 |
Loss on retirement of fixed assets | 9 | 4 |
Amortization of deferred financing costs and accretion of interest | 227 | 151 |
Adjustment to contingent consideration | -552 | ' |
Share based compensation | 5,016 | 3,835 |
Excess tax benefit on stock options | -1,951 | -4,110 |
Provision for doubtful accounts | ' | 35 |
Deferred income taxes | 1,772 | 3,246 |
Unrealized currency (gain) loss on foreign denominated intercompany transactions | -140 | 5 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,039 | -944 |
Prepaid expenses and other assets | 353 | 3 |
Accounts payable | 405 | 139 |
Accrued income taxes | 4,614 | -55 |
Accrued expenses and other liabilities | -2,540 | -1,353 |
Deferred revenue | 1,920 | 1,726 |
Net cash provided by operating activities | 30,200 | 24,628 |
Cash flows from investing activities | ' | ' |
Purchases of property and equipment | -2,472 | -632 |
Acquisition of business, net of cash acquired | -1,015 | -72 |
Net cash used in investing activities | -3,487 | -704 |
Cash flows from financing activities | ' | ' |
Payments on line of credit | ' | -22,321 |
Excess tax benefit on stock options | 1,951 | 4,110 |
Common stock dividends paid | -5,528 | -3,788 |
Purchase of treasury stock | -23,881 | ' |
Proceeds from exercises of common stock options | 3,111 | 10,570 |
Net cash used in financing activities | -24,347 | -11,429 |
Effect of exchange rates on cash and cash equivalents | 27 | -166 |
Increase in cash and cash equivalents | 2,393 | 12,329 |
Cash and cash equivalents at beginning of period | 78,411 | 39,340 |
Cash and cash equivalents at end of period | $80,804 | $51,669 |
Nature_of_the_Business
Nature of the Business | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of the Business | ' |
1. Nature of the Business | |
Monotype Imaging Holdings Inc. (the “Company” or “we”) is a leading provider of type, technology and expertise for creative applications and consumer electronics, or CE, devices. Our end-user and embedded solutions for print, web and mobile environments enable people to create and consume dynamic content on any and every device. Our technologies and fonts enable the display and printing of high quality digital text. Our technologies and fonts have been widely deployed across, and embedded in, a range of CE devices including laser printers, digital copiers, mobile phones, e-book readers, tablets, automotive displays, digital cameras, navigation devices, digital televisions, set-top boxes and consumer appliances, as well as in numerous software applications and operating systems. We also provide printer drivers, page description language interpreters, printer user interface technology and color imaging solutions to printer manufacturers and OEMs (original equipment manufacturers). We license our fonts and technologies to CE device manufacturers, independent software vendors and creative and business professionals and we are headquartered in Woburn, Massachusetts. We operate in one business segment: the development, marketing and licensing of technologies and fonts. We also maintain various offices worldwide for selling and marketing, research and development and administration. We conduct our operations through three domestic operating subsidiaries, Monotype Imaging Inc., Monotype ITC Inc. and MyFonts Inc., and five foreign operating subsidiaries, Monotype Ltd., Monotype GmbH, Monotype Solutions India Pvt. Ltd., Monotype Hong Kong Ltd. and Monotype KK. |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
2. Basis of Presentation | |
The accompanying unaudited condensed consolidated interim financial statements as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013 include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, such financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. The results for interim periods are not necessarily indicative of results to be expected for the year or for any future periods. | |
In management’s opinion, these unaudited condensed consolidated interim financial statements contain all adjustments of a normal recurring nature necessary for a fair presentation of the financial statements for the interim periods presented. | |
These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2013 as reported in the Company’s Annual Report on Form 10-K. | |
The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of June 30, 2014, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 have not changed. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
3. Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2014-9, Revenue from Contracts with Customers (Topic 606), which provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance is effective for annual reporting and interim periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective application, with early adoption not permitted. Accordingly, the standard is effective for the Company on January 1, 2017. The Company is currently evaluating the adoption method it will apply and the impact that this guidance will have on its financial statements and related disclosures. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2014 | |
Business Combinations [Abstract] | ' |
Acquisition | ' |
4. Acquisition | |
Mark Boulton Design | |
On April 7, 2014, the Company purchased all of the outstanding stock of Mark Boulton Design Limited, a privately-held Web design studio located in Cardiff, Wales, United Kingdom, for approximately $0.8 million in cash. The Company issued approximately $1.0 million in restricted stock awards in connection with the acquisition, which vest based upon continued employment over four years. In preliminary purchase accounting, the majority of the purchase price, or approximately $0.7 million, has been allocated to goodwill. Following the acquisition, Mark Boulton Design Limited became a wholly owned subsidiary of the Company. Seven former employees of Mark Boulton Design Limited joined the Company in connection with the acquisition. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
5. Derivative Financial Instruments | |||||||||||||||||
From time to time, we may incur foreign currency exchange gains and losses related to certain customers that are invoiced in U.S. dollars, but who have the option to make an equivalent payment in their own functional currencies at a specified exchange rate as of a specified date. In the period from that date until payment in the customer’s functional currency is received and converted into U.S. dollars, we can incur realized gains and losses. At June 30, 2014 there were no currency contracts outstanding. At December 31, 2013 there was one currency contract outstanding, which was entered into on that date, and accordingly, the fair value was materially equivalent to its book value. | |||||||||||||||||
We also incur foreign currency exchange gains and losses on certain intercompany assets and liabilities denominated in foreign currencies. We are currently utilizing 30-day forward contracts to mitigate our exposure on these currency fluctuations. These contracts are generally set to expire and are settled at month end. The instruments are not designated as hedging instruments, and accordingly, the gain or loss is recognized upon cash settlement and is included in loss on derivatives in the accompanying consolidated statements of income. At June 30, 2014 and December 31, 2013 there was one contract outstanding, to purchase and sell two different currencies forward, which was entered into on those dates. See Note 6 for details regarding the fair value of these instruments. | |||||||||||||||||
The following table presents the losses on our derivative financial instruments which are included in loss on derivatives in our accompanying condensed consolidated statements of income (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Currency swaps | $ | 158 | $ | — | $ | 214 | $ | — | |||||||||
Total | $ | 158 | $ | — | $ | 214 | $ | — | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
6. Fair Value Measurements | |||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the Financial Accounting Standards Codification established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |||||||||||||||||
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |||||||||||||||||
Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets and liabilities or market corroborated inputs. | |||||||||||||||||
Level 3: Unobservable inputs are used when little or no market data is available and requires the company to develop its own assumptions about how market participants would price the assets or liabilities. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |||||||||||||||||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimizes the use of unobservable inputs to the extent possible as well as considers counterparty and our own credit risk in its assessment of fair value. | |||||||||||||||||
The following table presents our financial assets and liabilities that are carried at fair value, classified according to the three categories described above (in thousands): | |||||||||||||||||
Fair Value Measurement at June 30, 2014 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents—money market funds | $ | 3,180 | $ | 3,180 | $ | — | $ | — | |||||||||
Cash equivalents—commercial paper | 9,948 | — | 9,948 | — | |||||||||||||
Cash equivalents—corporate bonds | 5,384 | — | 5,384 | — | |||||||||||||
Total assets | $ | 18,512 | $ | 3,180 | $ | 15,332 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Contingent acquisition consideration | $ | 1,444 | $ | — | $ | — | $ | 1,444 | |||||||||
Total liabilities | $ | 1,444 | $ | — | $ | — | $ | 1,444 | |||||||||
Fair Value Measurement at December 31, 2013 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents—money market funds | $ | 832 | $ | 832 | $ | — | $ | — | |||||||||
Cash equivalents—commercial paper | 8,998 | — | 8,998 | — | |||||||||||||
Cash equivalents—corporate bonds | 8,585 | — | 8,585 | — | |||||||||||||
Total assets | $ | 18,415 | $ | 832 | $ | 17,583 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Contingent acquisition consideration | $ | 2,302 | $ | — | $ | — | $ | 2,302 | |||||||||
Total liabilities | $ | 2,302 | $ | — | $ | — | $ | 2,302 | |||||||||
The Company’s recurring fair value measures relate to short-term investments, which are classified as cash equivalents, derivative instruments and contingent consideration. The fair value of our cash equivalents are either based on quoted prices for similar assets or other observable inputs such as yield curves at commonly quoted intervals and other market corroborated inputs. The fair value of our derivative instruments is based on quoted market prices from various banking institutions or an independent third party provider for similar instruments. In determining the fair value, we consider our non-performance risk and that of our counterparties. At June 30, 2014, we had one 30-day forward contract to sell 3.5 million British pounds sterling and purchase $6.0 million that together, had an immaterial fair value. At December 31, 2013, we had one 30-day forward contract outstanding to sell 3.0 million British pounds sterling and purchase $5.0 million that together, had an immaterial fair value. | |||||||||||||||||
For the contingent acquisition consideration, the Company estimated the fair value of the liability by probability weighting the range of possible achievement of the criteria upon which the contingent consideration to be paid will be determined. The resulting estimated amount was then adjusted to its estimated net present value based upon a present value factor that was derived by applying a risk adjusted discount rate over the applicable contingency period. The contingent acquisition consideration decreased by $0.6 million in the second quarter of 2014, as the estimated liability was revised based on changes in performance estimates. In the first quarter of 2014, the liability decreased due to the payment of $0.4 million in accordance with the terms of the underlying agreement. These decreases were partially offset by the accretion of the net present value of the liability. | |||||||||||||||||
The Company’s non-financial assets and non-financial liabilities subject to non-recurring measurements include goodwill and intangible assets. |
Property_and_Equipment
Property and Equipment | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
7. Property and Equipment | |||||||||
Property and equipment consists of the following (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer equipment and software | $ | 14,297 | $ | 11,371 | |||||
Furniture and fixtures | 1,214 | 1,170 | |||||||
Leasehold improvements | 881 | 866 | |||||||
Total cost | 16,392 | 13,407 | |||||||
Less accumulated depreciation and amortization | (10,661 | ) | (9,839 | ) | |||||
Property and equipment, net | $ | 5,731 | $ | 3,568 | |||||
At June 30, 2014, computer equipment and software includes $2.6 million of unamortized software costs related to internal use software projects in process. |
Intangible_Assets
Intangible Assets | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||||
8. Intangible Assets | |||||||||||||||||||||||||||
Intangible assets consist of the following (dollar amounts in thousands): | |||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Weighted- | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Average | Carrying | Amortization | Balance | Carrying | Amortization | Balance | |||||||||||||||||||||
Amortization | Amount | Amount | |||||||||||||||||||||||||
Period (Years) | |||||||||||||||||||||||||||
Customer relationships | 10 | $ | 57,293 | $ | (45,290 | ) | $ | 12,003 | $ | 57,319 | $ | (42,482 | ) | $ | 14,837 | ||||||||||||
Acquired technology | 12 | 51,258 | (32,029 | ) | 19,229 | 51,206 | (29,734 | ) | 21,472 | ||||||||||||||||||
Non-compete agreements | 4 | 12,068 | (11,939 | ) | 129 | 12,077 | (11,903 | ) | 174 | ||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||
Trademarks | 35,764 | — | 35,764 | 35,801 | — | 35,801 | |||||||||||||||||||||
Domain names | 4,400 | — | 4,400 | 4,400 | — | 4,400 | |||||||||||||||||||||
Total | $ | 160,783 | $ | (89,258 | ) | $ | 71,525 | $ | 160,803 | $ | (84,119 | ) | $ | 76,684 | |||||||||||||
Debt
Debt | 6 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
9. Debt | |
On July 13, 2011, the Company entered into a credit agreement with Wells Fargo Capital Finance, LLC, or the Credit Facility, which provides the Company with a five-year, $120.0 million secured revolving credit facility. Borrowings under the Credit Facility bear interest at a variable rate based upon, at the Company’s option, either LIBOR or the base rate (which is the highest of (i) the prime rate, (ii) 0.5% plus the overnight federal funds rate, or (iii) 1.0% in excess of the three-month LIBOR rate), plus in each case, an applicable margin. The applicable margin for LIBOR loans, based on the applicable leverage ratio, is either 2.25% or 2.50% per annum, and the applicable margin for base rate loans, based on the applicable leverage ratio, is either 1.25% or 1.50% per annum. At June 30, 2014 our rate, inclusive of applicable margins, was 3.75% for prime. At June 30, 2014, the Company had no outstanding debt under the Credit Facility. The Company, in accordance with the Credit Facility, is permitted to request that the Lenders, at their election, increase the secured credit facility to a maximum of $140.0 million. The Company is required to pay an unused line fee equal to 0.375% per annum on the undrawn portion available under the revolving credit facility and variable per annum fees in respect of outstanding letters of credit, if any. Such fees are included in interest expense in the accompanying condensed consolidated statements of income. The Credit Facility contains financial covenants which include (i) a maximum ratio of consolidated total debt to consolidated adjusted EBITDA of 3.00:1.00, and (ii) a minimum consolidated fixed charge coverage ratio of 1.25:1.00. Adjusted EBITDA, under the Credit Facility, is defined as consolidated net earnings (or loss), plus net interest expense, income taxes, depreciation and amortization and share based compensation expense, plus acquisition expenses not to exceed $2.0 million, plus restructuring, issuance costs, cash non-operating costs and other expenses or losses minus cash non-operating gains and other non-cash gains; provided however that the aggregate of all cash non-operating expense shall not exceed $250 thousand and all such fees, costs and expenses shall not exceed $1.5 million on a trailing twelve months basis. Failure to comply with these covenants, or the occurrence of an event of default, could permit the Lenders under the Credit Facility to declare all amounts borrowed under the Credit Facility, together with accrued interest and fees, to be immediately due and payable. In addition, the Credit Facility is secured by substantially all of our assets and places limits on the Company’s and its subsidiaries’ ability to incur debt or liens and engage in sale-leaseback transactions, make loans and investments, incur additional indebtedness, engage in mergers, acquisitions and asset sales, transact with affiliates and alter its business. We were in compliance with all covenants under our Credit Facility as of June 30, 2014. |
Defined_Benefit_Pension_Plan
Defined Benefit Pension Plan | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Defined Benefit Pension Plan | ' | ||||||||||||||||
10. Defined Benefit Pension Plan | |||||||||||||||||
Our German subsidiary maintains an unfunded defined benefit pension plan which covers substantially all employees who joined the company prior to the plan’s closure to new participants in 2006. Participants are entitled to benefits in the form of retirement, disability and surviving dependent pensions. Benefits generally depend on years of service and the salary of the employees. | |||||||||||||||||
The components of net periodic benefit cost included in the accompanying condensed consolidated statements of income were as follows (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 29 | $ | 30 | $ | 59 | $ | 59 | |||||||||
Interest cost | 44 | 40 | 88 | 79 | |||||||||||||
Net periodic benefit cost | $ | 73 | $ | 70 | $ | 147 | $ | 138 | |||||||||
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
11. Income Taxes | |||||||||||||||||
A reconciliation of income taxes computed at federal statutory rates to income tax expense is as follows (dollar amounts in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Provision for income taxes at statutory rate | $ | 4,284 | 35 | % | $ | 4,063 | 35 | % | |||||||||
State and local income taxes, net of federal tax benefit | 225 | 1.8 | % | 178 | 1.5 | % | |||||||||||
Stock compensation | 78 | 0.6 | % | 70 | 0.6 | % | |||||||||||
Research credits | — | — | (51 | ) | (0.4 | )% | |||||||||||
Disqualifying dispositions of incentive stock options | (25 | ) | (0.2 | )% | (32 | ) | (0.3 | )% | |||||||||
Other, net | (13 | ) | — | 71 | 0.6 | % | |||||||||||
Reported income tax provision | $ | 4,549 | 37.2 | % | $ | 4,299 | 37 | % | |||||||||
Six Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Provision for income taxes at statutory rate | $ | 9,028 | 35 | % | $ | 8,560 | 35 | % | |||||||||
State and local income taxes, net of federal tax benefit | 481 | 1.9 | % | 369 | 1.5 | % | |||||||||||
Stock compensation | 165 | 0.6 | % | 140 | 0.6 | % | |||||||||||
Research credits | — | — | (376 | ) | (1.5 | )% | |||||||||||
Disqualifying dispositions of incentive stock options | (42 | ) | (0.2 | )% | (181 | ) | (0.8 | )% | |||||||||
Other, net | 25 | 0.1 | % | 18 | 0.1 | % | |||||||||||
Reported income tax provision | $ | 9,657 | 37.4 | % | $ | 8,530 | 34.9 | % | |||||||||
At June 30, 2014, the reserve for uncertain tax positions was approximately $6.5 million. Of this amount, $3.7 million is recorded as a reduction of deferred tax assets and $2.8 million is classified as long term liabilities. |
Net_Income_Per_Share
Net Income Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
12. Net Income Per Share | |||||||||||||||||
Basic and diluted earnings per share are computed pursuant to the two-class method. The two-class method determines earnings per share for each class of common stock and participating security according to their respective participation rights in undistributed earnings. Unvested restricted stock awards granted to employees are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. In accordance with ASC Topic No. 260, diluted net income per share is calculated using the more dilutive of the following two approaches: | |||||||||||||||||
1 | Assume exercise of stock options and vesting of restricted stock using the treasury stock method. | ||||||||||||||||
2 | Assume exercise of stock options using the treasury stock method, but assume participating securities (unvested restricted stock) are not vested and allocate earnings to common shares and participating securities using the two-class method. | ||||||||||||||||
For the three months ended June 30, 2014 and the three and six months ended June 30, 2013, the two-class method was used in the computation of diluted net income per share as this approach was more dilutive. For the six months ended June 30, 2014, the treasury stock method was used in the computation of diluted net income per share, as this approach was more dilutive. The following presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands, except share and per share data): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income, as reported | $ | 7,691 | $ | 7,311 | $ | 16,136 | $ | 15,927 | |||||||||
Less: net income attributable to participating securities | (159 | ) | (129 | ) | (289 | ) | (269 | ) | |||||||||
Net income available to common shareholders—basic | $ | 7,532 | $ | 7,182 | $ | 15,847 | $ | 15,658 | |||||||||
Denominator: | |||||||||||||||||
Basic: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 39,555,875 | 38,420,617 | 39,438,705 | 38,070,822 | |||||||||||||
Less: weighted-average shares of unvested restricted common stock outstanding | (841,697 | ) | (695,535 | ) | (725,273 | ) | (655,308 | ) | |||||||||
Weighted-average number of common shares used in computing basic net income per common share | 38,714,178 | 37,725,082 | 38,713,432 | 37,415,514 | |||||||||||||
Net income per share applicable to common shareholders—basic | $ | 0.19 | $ | 0.19 | $ | 0.41 | $ | 0.42 | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income available to common shareholders—basic | $ | 7,532 | $ | 7,182 | $ | 15,847 | $ | 15,658 | |||||||||
Add-back: undistributed earnings allocated to unvested shareholders (1) | 96 | 91 | N/A | 195 | |||||||||||||
Less: undistributed earnings reallocated to unvested shareholders (1) | (94 | ) | (88 | ) | N/A | (188 | ) | ||||||||||
Net income available to common shareholders—diluted | $ | 7,534 | $ | 7,185 | $ | 15,847 | $ | 15,665 | |||||||||
Denominator: | |||||||||||||||||
Diluted: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 39,555,875 | 38,420,617 | 39,438,705 | 38,070,822 | |||||||||||||
Less: weighted-average shares of unvested restricted common stock outstanding | (841,697 | ) | (695,535 | ) | (725,273 | ) | (655,308 | ) | |||||||||
Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method | 909,339 | 1,304,571 | 973,470 | 1,343,293 | |||||||||||||
Weighted-average number of restricted stock, based on the treasury stock method (2) | N/A | N/A | 179,004 | N/A | |||||||||||||
Weighted-average number of common shares used in computing diluted net income per common share | 39,623,517 | 39,029,653 | 39,865,906 | 38,758,807 | |||||||||||||
Net income per share applicable to common shareholders—diluted | $ | 0.19 | $ | 0.18 | $ | 0.4 | $ | 0.4 | |||||||||
-1 | Adjustments to net income relate to net income per share calculations under the two class method; therefore, it is not applicable, or N/A, to all periods presented. | ||||||||||||||||
-2 | Adjustments pertain to net income per share calculations under the treasury stock method; therefore, it is not applicable, or N/A, for all periods presented. | ||||||||||||||||
The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Options | 689,410 | 441,924 | 417,058 | 316,393 | |||||||||||||
Unvested restricted stock | 395,520 | 89 | 233,813 | 33,752 | |||||||||||||
Unvested restricted stock units | 5,700 | — | 3,420 | — |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
13. Stockholders’ Equity | |||||||||||||||||
Share repurchases | |||||||||||||||||
On October 23, 2013, the Company’s Board of Directors approved a share repurchase program of up to $50.0 million of the Company’s outstanding shares of common shares over the next two years. Intended to offset shareholder dilution, the Company expects purchases under the program will be made periodically, on the open market as business and market conditions warrant. The share repurchase program does not obligate the Company to acquire any particular amount of common stock, and the program may be suspended or discontinued at management’s and/or the Board of Director’s discretion. As of June 30, 2014, the Company has repurchased a total of 941,269 shares of its common stock for an aggregate purchase price of $26.1 million, including brokers’ fees. As of December 31, 2013, the Company purchased 75,000 shares of common stock for an aggregate purchase price of $2.2 million, including brokers’ fees. | |||||||||||||||||
Share Based Compensation | |||||||||||||||||
We account for share based compensation in accordance with ASC Topic No. 718, Compensation – Stock Compensation, which requires the measurement of compensation costs at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. The following presents the impact of share based compensation expense on our condensed consolidated statements of income (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Marketing and selling | $ | 1,250 | $ | 973 | $ | 2,296 | $ | 1,750 | |||||||||
Research and development | 613 | 488 | 1,127 | 904 | |||||||||||||
General and administrative | 893 | 625 | 1,593 | 1,181 | |||||||||||||
Total expensed | $ | 2,756 | $ | 2,086 | $ | 5,016 | $ | 3,835 | |||||||||
Property and equipment | 40 | — | 63 | — | |||||||||||||
Total share based compensation | $ | 2,796 | $ | 2,086 | $ | 5,079 | $ | 3,835 | |||||||||
In the three months and six months ended June 30, 2014, approximately $40 thousand and $63 thousand, respectively, of share based compensation was capitalized as part of an internal software project, and this amount is included in property and equipment, net in our condensed consolidated balance sheet. As of June 30, 2014, the Company had $24.4 million of unrecognized compensation expense related to employees and directors unvested stock option awards and restricted stock awards that are expected to be recognized over a weighted average period of 2.0 years. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
14. Segment Reporting | |||||||||||||||||
We view our operations and manage our business as one segment: the development, marketing and licensing of technologies and fonts. Factors used to identify our single segment include the financial information available for evaluation by our chief operating decision maker in making decisions about how to allocate resources and assess performance. While our technologies and services are sold into two principal markets, Creative Professional and OEM, expenses and assets are not formally allocated to these market segments, and operating results are assessed on an aggregate basis to make decisions about the allocation of resources. The following table presents revenue for these two major markets (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Creative Professional | $ | 18,266 | $ | 14,654 | $ | 35,985 | $ | 29,986 | |||||||||
OEM | 26,697 | 26,431 | 55,050 | 53,138 | |||||||||||||
Total | $ | 44,963 | $ | 41,085 | $ | 91,035 | $ | 83,124 | |||||||||
Geographic segment information | |||||||||||||||||
The Company attributes revenues to geographic areas based on the location of our subsidiary receiving such revenue. For example, licenses may be sold to large international companies which may be headquartered in South Korea, but the sales are received and recorded by our subsidiary located in the United States. In this example, the revenue would be reflected in the United States totals in the table below. We market our products and services through offices in the United States, United Kingdom, Germany, Hong Kong, South Korea and Japan. The following summarizes revenue by location: | |||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Sales | % of Total | Sales | % of Total | ||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
United States | $ | 24,602 | 54.7 | % | $ | 23,359 | 56.8 | % | |||||||||
United Kingdom | 2,636 | 5.9 | 1,562 | 3.8 | |||||||||||||
Germany | 4,210 | 9.4 | 4,500 | 11 | |||||||||||||
Japan | 13,367 | 29.7 | 11,582 | 28.2 | |||||||||||||
Other Asia | 148 | 0.3 | 82 | 0.2 | |||||||||||||
Total | $ | 44,963 | 100 | % | $ | 41,085 | 100 | % | |||||||||
Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Sales | % of Total | Sales | % of Total | ||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
United States | $ | 48,538 | 53.3 | % | $ | 47,506 | 57.2 | % | |||||||||
United Kingdom | 5,329 | 5.9 | 2,945 | 3.5 | |||||||||||||
Germany | 8,687 | 9.5 | 8,120 | 9.8 | |||||||||||||
Japan | 28,081 | 30.9 | 24,307 | 29.2 | |||||||||||||
Other Asia | 400 | 0.4 | 246 | 0.3 | |||||||||||||
Total | $ | 91,035 | 100 | % | $ | 83,124 | 100 | % | |||||||||
Long-lived assets, which include property and equipment, goodwill and intangible assets, but exclude other assets, long-term investments and deferred tax assets, are attributed to geographic areas in which Company assets reside and is shown below (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Long-lived assets: | |||||||||||||||||
United States | $ | 189,388 | $ | 192,066 | |||||||||||||
United Kingdom | 5,791 | 4,926 | |||||||||||||||
Germany | 55,459 | 56,140 | |||||||||||||||
Asia (including Japan) | 3,545 | 3,470 | |||||||||||||||
Total | $ | 254,183 | $ | 256,602 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
15. Commitments and Contingencies | |||||
Operating Leases | |||||
We conduct operations in facilities under operating leases expiring through 2022. In accordance with the lease terms, we pay real estate taxes and other operating costs. Our leases in California, New York, Massachusetts, Germany, India and Japan contain renewal options. The Company’s future minimum payments under non-cancelable operating leases as of June 30, 2014, are approximately as follows (in thousands): | |||||
Years ending June 30: | |||||
2015 | $ | 2,902 | |||
2016 | 2,778 | ||||
2017 | 2,101 | ||||
2018 | 1,816 | ||||
2019 | 1,578 | ||||
Thereafter | 4,097 | ||||
Total | $ | 15,272 | |||
Legal Proceedings | |||||
From time to time, we may be a party to various claims, suits and complaints. We are not currently a party to any legal proceedings that, if determined adversely to us, would have a material adverse effect on our business, results of operations or financial condition. | |||||
Licensing Warranty | |||||
Under our standard license agreement with our OEM customers, we warrant that the licensed technologies are free of infringement claims of intellectual property rights and will meet the specifications as defined in the licensing agreement for a specified period, typically one year. Under the licensing agreements, liability for such indemnity obligations is limited generally to the total arrangement fee; however, exceptions have been made on a case-by-case basis, increasing the maximum potential liability to agreed upon amounts at the time the contract is entered into. We have never incurred costs payable to a customer or business partner to defend lawsuits or settle claims related to these warranties, and as a result, management believes the estimated fair value of these warranties is minimal. Accordingly, there are no liabilities recorded for these warranties as of June 30, 2014 and December 31, 2013. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
16. Subsequent Events | |
Acquisition | |
On July 14, 2014 the Company purchased all of the outstanding stock of FontShop International GmbH, a privately-held font distributor located in Berlin, Germany, its wholly-owned subsidiary FontShop International, Inc. based in San Francisco, California, the FontFont typeface library, FontShop AG of Berlin, the largest distributor of the FontFont library, and certain other typeface families for an aggregate purchase price of approximately $13.0 million in cash on hand. | |
Dividend Declaration | |
On July 25, 2014 the Company’s Board of Directors declared an $0.08 per share quarterly cash dividend on our outstanding common stock. The record date is set for October 1, 2014 and the dividend is payable to shareholders of record on October 21, 2014. Dividends are declared at the discretion of the Company’s Board of Directors and depend on actual cash from operations, the Company’s financial condition and capital requirements and any other factors the Company’s Board of Directors may consider relevant. Future dividend declarations, as well as the record and payment dates for such dividends, will be determined by the Company’s Board of Directors on a quarterly basis. | |
Share Repurchase Program | |
Subsequent to June 30, 2014, the Company repurchased 11,920 shares of common stock for $0.3 million, at an average price per share of $28.14. The Company purchased these shares on the open market at prevailing market prices and in accordance with its previously announced share repurchase program (“Plan”). At July 22, 2014, $23.6 million remains for future purchase under the Plan. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2014-9, Revenue from Contracts with Customers (Topic 606), which provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance is effective for annual reporting and interim periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective application, with early adoption not permitted. Accordingly, the standard is effective for the Company on January 1, 2017. The Company is currently evaluating the adoption method it will apply and the impact that this guidance will have on its financial statements and related disclosures. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Losses on Derivative Financial Instruments | ' | ||||||||||||||||
The following table presents the losses on our derivative financial instruments which are included in loss on derivatives in our accompanying condensed consolidated statements of income (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Currency swaps | $ | 158 | $ | — | $ | 214 | $ | — | |||||||||
Total | $ | 158 | $ | — | $ | 214 | $ | — | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value | ' | ||||||||||||||||
The following table presents our financial assets and liabilities that are carried at fair value, classified according to the three categories described above (in thousands): | |||||||||||||||||
Fair Value Measurement at June 30, 2014 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents—money market funds | $ | 3,180 | $ | 3,180 | $ | — | $ | — | |||||||||
Cash equivalents—commercial paper | 9,948 | — | 9,948 | — | |||||||||||||
Cash equivalents—corporate bonds | 5,384 | — | 5,384 | — | |||||||||||||
Total assets | $ | 18,512 | $ | 3,180 | $ | 15,332 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Contingent acquisition consideration | $ | 1,444 | $ | — | $ | — | $ | 1,444 | |||||||||
Total liabilities | $ | 1,444 | $ | — | $ | — | $ | 1,444 | |||||||||
Fair Value Measurement at December 31, 2013 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents—money market funds | $ | 832 | $ | 832 | $ | — | $ | — | |||||||||
Cash equivalents—commercial paper | 8,998 | — | 8,998 | — | |||||||||||||
Cash equivalents—corporate bonds | 8,585 | — | 8,585 | — | |||||||||||||
Total assets | $ | 18,415 | $ | 832 | $ | 17,583 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Contingent acquisition consideration | $ | 2,302 | $ | — | $ | — | $ | 2,302 | |||||||||
Total liabilities | $ | 2,302 | $ | — | $ | — | $ | 2,302 | |||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment consists of the following (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer equipment and software | $ | 14,297 | $ | 11,371 | |||||
Furniture and fixtures | 1,214 | 1,170 | |||||||
Leasehold improvements | 881 | 866 | |||||||
Total cost | 16,392 | 13,407 | |||||||
Less accumulated depreciation and amortization | (10,661 | ) | (9,839 | ) | |||||
Property and equipment, net | $ | 5,731 | $ | 3,568 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||||
Intangible assets consist of the following (dollar amounts in thousands): | |||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Weighted- | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Average | Carrying | Amortization | Balance | Carrying | Amortization | Balance | |||||||||||||||||||||
Amortization | Amount | Amount | |||||||||||||||||||||||||
Period (Years) | |||||||||||||||||||||||||||
Customer relationships | 10 | $ | 57,293 | $ | (45,290 | ) | $ | 12,003 | $ | 57,319 | $ | (42,482 | ) | $ | 14,837 | ||||||||||||
Acquired technology | 12 | 51,258 | (32,029 | ) | 19,229 | 51,206 | (29,734 | ) | 21,472 | ||||||||||||||||||
Non-compete agreements | 4 | 12,068 | (11,939 | ) | 129 | 12,077 | (11,903 | ) | 174 | ||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||
Trademarks | 35,764 | — | 35,764 | 35,801 | — | 35,801 | |||||||||||||||||||||
Domain names | 4,400 | — | 4,400 | 4,400 | — | 4,400 | |||||||||||||||||||||
Total | $ | 160,783 | $ | (89,258 | ) | $ | 71,525 | $ | 160,803 | $ | (84,119 | ) | $ | 76,684 | |||||||||||||
Defined_Benefit_Pension_Plan_T
Defined Benefit Pension Plan (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||
The components of net periodic benefit cost included in the accompanying condensed consolidated statements of income were as follows (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 29 | $ | 30 | $ | 59 | $ | 59 | |||||||||
Interest cost | 44 | 40 | 88 | 79 | |||||||||||||
Net periodic benefit cost | $ | 73 | $ | 70 | $ | 147 | $ | 138 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Tax Reconciliation Computed at Federal Statutory Rates to Income Tax Expense | ' | ||||||||||||||||
A reconciliation of income taxes computed at federal statutory rates to income tax expense is as follows (dollar amounts in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Provision for income taxes at statutory rate | $ | 4,284 | 35 | % | $ | 4,063 | 35 | % | |||||||||
State and local income taxes, net of federal tax benefit | 225 | 1.8 | % | 178 | 1.5 | % | |||||||||||
Stock compensation | 78 | 0.6 | % | 70 | 0.6 | % | |||||||||||
Research credits | — | — | (51 | ) | (0.4 | )% | |||||||||||
Disqualifying dispositions of incentive stock options | (25 | ) | (0.2 | )% | (32 | ) | (0.3 | )% | |||||||||
Other, net | (13 | ) | — | 71 | 0.6 | % | |||||||||||
Reported income tax provision | $ | 4,549 | 37.2 | % | $ | 4,299 | 37 | % | |||||||||
Six Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Provision for income taxes at statutory rate | $ | 9,028 | 35 | % | $ | 8,560 | 35 | % | |||||||||
State and local income taxes, net of federal tax benefit | 481 | 1.9 | % | 369 | 1.5 | % | |||||||||||
Stock compensation | 165 | 0.6 | % | 140 | 0.6 | % | |||||||||||
Research credits | — | — | (376 | ) | (1.5 | )% | |||||||||||
Disqualifying dispositions of incentive stock options | (42 | ) | (0.2 | )% | (181 | ) | (0.8 | )% | |||||||||
Other, net | 25 | 0.1 | % | 18 | 0.1 | % | |||||||||||
Reported income tax provision | $ | 9,657 | 37.4 | % | $ | 8,530 | 34.9 | % | |||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||||||
The following presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands, except share and per share data): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income, as reported | $ | 7,691 | $ | 7,311 | $ | 16,136 | $ | 15,927 | |||||||||
Less: net income attributable to participating securities | (159 | ) | (129 | ) | (289 | ) | (269 | ) | |||||||||
Net income available to common shareholders—basic | $ | 7,532 | $ | 7,182 | $ | 15,847 | $ | 15,658 | |||||||||
Denominator: | |||||||||||||||||
Basic: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 39,555,875 | 38,420,617 | 39,438,705 | 38,070,822 | |||||||||||||
Less: weighted-average shares of unvested restricted common stock outstanding | (841,697 | ) | (695,535 | ) | (725,273 | ) | (655,308 | ) | |||||||||
Weighted-average number of common shares used in computing basic net income per common share | 38,714,178 | 37,725,082 | 38,713,432 | 37,415,514 | |||||||||||||
Net income per share applicable to common shareholders—basic | $ | 0.19 | $ | 0.19 | $ | 0.41 | $ | 0.42 | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income available to common shareholders—basic | $ | 7,532 | $ | 7,182 | $ | 15,847 | $ | 15,658 | |||||||||
Add-back: undistributed earnings allocated to unvested shareholders (1) | 96 | 91 | N/A | 195 | |||||||||||||
Less: undistributed earnings reallocated to unvested shareholders (1) | (94 | ) | (88 | ) | N/A | (188 | ) | ||||||||||
Net income available to common shareholders—diluted | $ | 7,534 | $ | 7,185 | $ | 15,847 | $ | 15,665 | |||||||||
Denominator: | |||||||||||||||||
Diluted: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 39,555,875 | 38,420,617 | 39,438,705 | 38,070,822 | |||||||||||||
Less: weighted-average shares of unvested restricted common stock outstanding | (841,697 | ) | (695,535 | ) | (725,273 | ) | (655,308 | ) | |||||||||
Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method | 909,339 | 1,304,571 | 973,470 | 1,343,293 | |||||||||||||
Weighted-average number of restricted stock, based on the treasury stock method (2) | N/A | N/A | 179,004 | N/A | |||||||||||||
Weighted-average number of common shares used in computing diluted net income per common share | 39,623,517 | 39,029,653 | 39,865,906 | 38,758,807 | |||||||||||||
Net income per share applicable to common shareholders—diluted | $ | 0.19 | $ | 0.18 | $ | 0.4 | $ | 0.4 | |||||||||
-1 | Adjustments to net income relate to net income per share calculations under the two class method; therefore, it is not applicable, or N/A, to all periods presented. | ||||||||||||||||
-2 | Adjustments pertain to net income per share calculations under the treasury stock method; therefore, it is not applicable, or N/A, for all periods presented. | ||||||||||||||||
Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share | ' | ||||||||||||||||
The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Options | 689,410 | 441,924 | 417,058 | 316,393 | |||||||||||||
Unvested restricted stock | 395,520 | 89 | 233,813 | 33,752 | |||||||||||||
Unvested restricted stock units | 5,700 | — | 3,420 | — |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share Based Compensation Expense | ' | ||||||||||||||||
The following presents the impact of share based compensation expense on our condensed consolidated statements of income (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Marketing and selling | $ | 1,250 | $ | 973 | $ | 2,296 | $ | 1,750 | |||||||||
Research and development | 613 | 488 | 1,127 | 904 | |||||||||||||
General and administrative | 893 | 625 | 1,593 | 1,181 | |||||||||||||
Total expensed | $ | 2,756 | $ | 2,086 | $ | 5,016 | $ | 3,835 | |||||||||
Property and equipment | 40 | — | 63 | — | |||||||||||||
Total share based compensation | $ | 2,796 | $ | 2,086 | $ | 5,079 | $ | 3,835 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Revenue for Major Markets | ' | ||||||||||||||||
The following table presents revenue for these two major markets (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Creative Professional | $ | 18,266 | $ | 14,654 | $ | 35,985 | $ | 29,986 | |||||||||
OEM | 26,697 | 26,431 | 55,050 | 53,138 | |||||||||||||
Total | $ | 44,963 | $ | 41,085 | $ | 91,035 | $ | 83,124 | |||||||||
Schedule of Revenue by Geographic Segments | ' | ||||||||||||||||
The following summarizes revenue by location: | |||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Sales | % of Total | Sales | % of Total | ||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
United States | $ | 24,602 | 54.7 | % | $ | 23,359 | 56.8 | % | |||||||||
United Kingdom | 2,636 | 5.9 | 1,562 | 3.8 | |||||||||||||
Germany | 4,210 | 9.4 | 4,500 | 11 | |||||||||||||
Japan | 13,367 | 29.7 | 11,582 | 28.2 | |||||||||||||
Other Asia | 148 | 0.3 | 82 | 0.2 | |||||||||||||
Total | $ | 44,963 | 100 | % | $ | 41,085 | 100 | % | |||||||||
Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Sales | % of Total | Sales | % of Total | ||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
United States | $ | 48,538 | 53.3 | % | $ | 47,506 | 57.2 | % | |||||||||
United Kingdom | 5,329 | 5.9 | 2,945 | 3.5 | |||||||||||||
Germany | 8,687 | 9.5 | 8,120 | 9.8 | |||||||||||||
Japan | 28,081 | 30.9 | 24,307 | 29.2 | |||||||||||||
Other Asia | 400 | 0.4 | 246 | 0.3 | |||||||||||||
Total | $ | 91,035 | 100 | % | $ | 83,124 | 100 | % | |||||||||
Schedule of Assets by Geographic Segments | ' | ||||||||||||||||
Long-lived assets, which include property and equipment, goodwill and intangible assets, but exclude other assets, long-term investments and deferred tax assets, are attributed to geographic areas in which Company assets reside and is shown below (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Long-lived assets: | |||||||||||||||||
United States | $ | 189,388 | $ | 192,066 | |||||||||||||
United Kingdom | 5,791 | 4,926 | |||||||||||||||
Germany | 55,459 | 56,140 | |||||||||||||||
Asia (including Japan) | 3,545 | 3,470 | |||||||||||||||
Total | $ | 254,183 | $ | 256,602 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Payments Under Non-Cancelable Operating Leases | ' | ||||
The Company’s future minimum payments under non-cancelable operating leases as of June 30, 2014, are approximately as follows (in thousands): | |||||
Years ending June 30: | |||||
2015 | $ | 2,902 | |||
2016 | 2,778 | ||||
2017 | 2,101 | ||||
2018 | 1,816 | ||||
2019 | 1,578 | ||||
Thereafter | 4,097 | ||||
Total | $ | 15,272 | |||
Nature_of_the_Business_Additio
Nature of the Business - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Subsidiary | |
Segment | |
Nature Of Business [Abstract] | ' |
Number of business segments | 1 |
Number of subsidiaries, domestic | 3 |
Number of subsidiaries, foreign | 5 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (Mark Boulton Design Limited [Member], USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Apr. 07, 2014 | Apr. 07, 2014 |
Employees | ||
Mark Boulton Design Limited [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business acquisition, total purchase price | $0.80 | ' |
Number of employees joined in connection with the acquisition | 7 | ' |
Restricted stock awards issued in connection with acquisition | 1 | ' |
Restricted stock vesting period | '4 years | ' |
Goodwill associated with the transaction recognized | ' | $0.70 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Contract | Contract | Forward Contract to Sell [Member] | Forward Contract to Sell [Member] | Forward Contract to Purchase [Member] | Forward Contract to Purchase [Member] | As of March 31, 2014 [Member] | As of December 31, 2013 [Member] | |
Contract | Contract | Contract | Contract | Forward Contracts [Member] | Forward Contracts [Member] | |||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of forward contracts outstanding | 0 | 1 | 1 | 1 | 1 | 1 | ' | ' |
Forward contract terms | ' | ' | ' | ' | ' | ' | '30-day forward contract | '30-day forward contract |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Losses on Derivative Financial Instruments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative [Line Items] | ' | ' | ' | ' |
Loss on derivatives | $158 | $0 | $214 | $0 |
Currency Swaps [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Loss on derivatives | $158 | $0 | $214 | $0 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Total assets | $18,512 | $18,415 |
Liabilities: | ' | ' |
Contingent acquisition consideration | 1,444 | 2,302 |
Total liabilities | 1,444 | 2,302 |
Money Market Funds [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | 3,180 | 832 |
Commercial Paper [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | 9,948 | 8,998 |
Corporate Bonds [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | 5,384 | 8,585 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 3,180 | 832 |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | 3,180 | 832 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 15,332 | 17,583 |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | 9,948 | 8,998 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | 5,384 | 8,585 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 0 | 0 |
Liabilities: | ' | ' |
Contingent acquisition consideration | 1,444 | 2,302 |
Total liabilities | $1,444 | $2,302 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 |
USD ($) | USD ($) | Contract | Forward Contract to Sell [Member] | Forward Contract to Sell [Member] | Forward Contract to Purchase [Member] | Forward Contract to Purchase [Member] | As of December 31, 2013 [Member] | As of March 31, 2014 [Member] | |
Contract | GBP (£) | GBP (£) | USD ($) | USD ($) | Forward Contracts [Member] | Forward Contracts [Member] | |||
Contract | Contract | Contract | Contract | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
30-day forward contract outstanding | ' | ' | ' | £ 3.5 | £ 3 | $6 | $5 | ' | ' |
Number of forward contracts outstanding | 0 | ' | 1 | 1 | 1 | 1 | 1 | ' | ' |
Forward contract terms | ' | ' | ' | ' | ' | ' | ' | '30-day forward contract | '30-day forward contract |
Decrease in the contingent acquisition consideration | $0.60 | $0.40 | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | $16,392 | $13,407 |
Less accumulated depreciation and amortization | -10,661 | -9,839 |
Property and equipment, net | 5,731 | 3,568 |
Computer Equipment and Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | 14,297 | 11,371 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | 1,214 | 1,170 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | $881 | $866 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Property Plant And Equipment Useful Life And Values [Abstract] | ' |
Unamortized software costs related to software projects | $2.60 |
Intangible_Assets_Intangible_A
Intangible Assets - Intangible Assets (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Customer relationships, Gross Carrying Amount | $57,293 | $57,319 |
Non-compete agreements, Gross Carrying Amount | 12,068 | 12,077 |
Indefinite-lived intangible assets: | ' | ' |
Gross Carrying Amount | 160,783 | 160,803 |
Accumulated Amortization | -89,258 | -84,119 |
Net Balance | 71,525 | 76,684 |
Trademarks [Member] | ' | ' |
Indefinite-lived intangible assets: | ' | ' |
Net Balance, Indefinite-Lived Intangible Assets | 35,764 | 35,801 |
Net Balance, Indefinite-Lived Intangible Assets | 35,764 | 35,801 |
Domain Names [Member] | ' | ' |
Indefinite-lived intangible assets: | ' | ' |
Net Balance, Indefinite-Lived Intangible Assets | 4,400 | 4,400 |
Net Balance, Indefinite-Lived Intangible Assets | 4,400 | 4,400 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Weighted-Average Amortization Period (Years) | '10 years | ' |
Net Balance, Finite-Lived Intangible Assets | 12,003 | 14,837 |
Indefinite-lived intangible assets: | ' | ' |
Accumulated Amortization | -45,290 | -42,482 |
Acquired Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Weighted-Average Amortization Period (Years) | '12 years | ' |
Net Balance, Finite-Lived Intangible Assets | 19,229 | 21,472 |
Acquired technology, Gross Carrying Amount | 51,258 | 51,206 |
Indefinite-lived intangible assets: | ' | ' |
Accumulated Amortization | -32,029 | -29,734 |
Non-compete Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Weighted-Average Amortization Period (Years) | '4 years | ' |
Net Balance, Finite-Lived Intangible Assets | 129 | 174 |
Indefinite-lived intangible assets: | ' | ' |
Accumulated Amortization | ($11,939) | ($11,903) |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Jul. 13, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' |
New credit agreement entering date | ' | 13-Jul-11 | ' |
Secured revolving credit facility term, years | ' | '5 years | ' |
Secured revolving credit facility, current borrowing capacity | ' | ' | $120,000,000 |
Interest rate on outstanding borrowings | ' | 'Borrowings under the Credit Facility bear interest at a variable rate based upon, at the Companybs option, either LIBOR or the base rate (which is the highest of (i) the prime rate, (ii) 0.5% plus the overnight federal funds rate, and (iii) 1.0% in excess of the three-month LIBOR rate), plus in each case, an applicable margin. The applicable margin for LIBOR loans, based on the applicable leverage ratio, is either 2.25% or 2.50% per annum, and the applicable margin for base rate loans, based on the applicable leverage ratio, is either 1.25% or 1.50% per annum. At June 30, 2014 our rate, inclusive of applicable margins, was 3.75% for prime | ' |
Credit facility basis spread on variable rate LIBOR | ' | 1.00% | ' |
Credit facility reference rate LIBOR | ' | 'Three-month LIBOR | ' |
Outstanding debt under credit facility | 0 | 0 | ' |
Maximum increase in secured credit facility | 140,000,000 | 140,000,000 | ' |
Percentage of fee payment on unused line of credit facility | 0.38% | ' | ' |
Credit facility financial covenants terms | ' | '(i) a maximum ratio of consolidated total debt to consolidated adjusted EBITDA of 3.00:1.00, and (ii) a minimum consolidated fixed charge coverage ratio of 1.25:1.00. | ' |
Maximum acquisition expense | ' | 2,000,000 | ' |
Maximum cash non-operating expense | ' | 250,000 | ' |
Maximum amount of various fees, cost and expenses to be taken in adjusted EBITDA | ' | $1,500,000 | ' |
Period of calculating EBITDA (in month) | ' | '12 months | ' |
Minimum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Applicable margin leverage ratio for LIBOR loans | 2.25% | 2.25% | ' |
Applicable margin leverage ratio for base rate loan for LIBOR loans | ' | 1.25% | ' |
Maximum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Applicable margin leverage ratio for LIBOR loans | 2.50% | 2.50% | ' |
Applicable margin leverage ratio for base rate loan for LIBOR loans | ' | 1.50% | ' |
Federal Funds Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate on outstanding borrowings | ' | '0.5% plus the overnight federal funds rate | ' |
Libor Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate on outstanding borrowings | ' | '1.0% in excess of the three-month LIBOR rate | ' |
Credit facility basis spread on variable rate LIBOR | ' | 0.50% | ' |
Prime Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Variable interest rate | 3.75% | 3.75% | ' |
Defined_Benefit_Pension_Plan_C
Defined Benefit Pension Plan - Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Postemployment Benefits [Abstract] | ' | ' | ' | ' |
Service cost | $29 | $30 | $59 | $59 |
Interest cost | 44 | 40 | 88 | 79 |
Net periodic benefit cost | $73 | $70 | $147 | $138 |
Income_Taxes_Income_Tax_Reconc
Income Taxes - Income Tax Reconciliation Computed at Federal Statutory Rates to Income Tax Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes at statutory rate | $4,284 | $4,063 | $9,028 | $8,560 |
State and local income taxes, net of federal tax benefit | 225 | 178 | 481 | 369 |
Stock compensation | 78 | 70 | 165 | 140 |
Research credits | ' | -51 | ' | -376 |
Disqualifying dispositions of incentive stock options | -25 | -32 | -42 | -181 |
Other, net | -13 | 71 | 25 | 18 |
Reported income tax provision | $4,549 | $4,299 | $9,657 | $8,530 |
Provision for income taxes at statutory rate, tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefit, tax rate | 1.80% | 1.50% | 1.90% | 1.50% |
Stock compensation, tax rate | 0.60% | 0.60% | 0.60% | 0.60% |
Research credits, tax rate | ' | -0.40% | ' | -1.50% |
Disqualifying dispositions of incentive stock options, tax rate | -0.20% | -0.30% | -0.20% | -0.80% |
Other, net, tax rate | ' | 0.60% | 0.10% | 0.10% |
Reported income tax provision, tax rate | 37.20% | 37.00% | 37.40% | 34.90% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | ' |
Reserve for uncertain tax positions | $6.50 |
Uncertain tax position reduction in deferred tax assets | 3.7 |
Uncertain tax positions long term liabilities | $2.80 |
Net_Income_Per_Share_Schedule_
Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income, as reported | $7,691 | $7,311 | $16,136 | $15,927 |
Less: net income attributable to participating securities | -159 | -129 | -289 | -269 |
Net income available to common shareholders-basic | 7,532 | 7,182 | 15,847 | 15,658 |
Basic: | ' | ' | ' | ' |
Weighted-average shares of common stock outstanding | 39,555,875 | 38,420,617 | 39,438,705 | 38,070,822 |
Less: weighted-average shares of unvested restricted common stock outstanding | -841,697 | -695,535 | -725,273 | -655,308 |
Weighted-average number of common shares used in computing basic net income per common share | 38,714,178 | 37,725,082 | 38,713,432 | 37,415,514 |
Net income per share applicable to common shareholders-basic | $0.19 | $0.19 | $0.41 | $0.42 |
Net income available to common shareholders-basic | 7,532 | 7,182 | 15,847 | 15,658 |
Add-back: undistributed earnings allocated to unvested shareholders | 96 | 91 | ' | 195 |
Less: undistributed earnings reallocated to unvested shareholders | -94 | -88 | ' | -188 |
Net income available to common shareholders-diluted | $7,534 | $7,185 | $15,847 | $15,665 |
Diluted: | ' | ' | ' | ' |
Weighted-average shares of common stock outstanding | 39,555,875 | 38,420,617 | 39,438,705 | 38,070,822 |
Less: weighted-average shares of unvested restricted common stock outstanding | -841,697 | -695,535 | -725,273 | -655,308 |
Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method | 909,339 | 1,304,571 | 973,470 | 1,343,293 |
Weighted-average number of restricted stock, based on the treasury stock method | ' | ' | 179,004 | ' |
Weighted-average number of common shares used in computing diluted net income per common share | 39,623,517 | 39,029,653 | 39,865,906 | 38,758,807 |
Net income per share applicable to common shareholders-diluted | $0.19 | $0.18 | $0.40 | $0.40 |
Net_Income_Per_Share_Schedule_1
Net Income Per Share - Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share | 689,410 | 441,924 | 417,058 | 316,393 |
Unvested Restricted Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share | 395,520 | 89 | 233,813 | 33,752 |
Unvested Restricted Stock Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share | 5,700 | ' | 3,420 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | Oct. 23, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' | ' | ' |
Total amount authorized under repurchase program | ' | ' | $50,000,000 | ' | ' |
Stock repurchase program, period in force | ' | ' | '2 years | ' | ' |
Number of shares repurchased under stock repurchase program | 941,269 | 75,000 | ' | ' | ' |
Total common stock aggregate purchase price | 26,100,000 | 2,200,000 | ' | ' | ' |
Share based compensation, capitalized | ' | ' | ' | 40,000 | 63,000 |
Unrecognized compensation expense | ' | ' | ' | $24,400,000 | $24,400,000 |
Weighted average period, years | ' | ' | ' | ' | '2 years |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Share Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share based compensation, Total expensed | $2,756 | $2,086 | $5,016 | $3,835 |
Property and equipment | 40 | ' | 63 | ' |
Total share based compensation | 2,796 | 2,086 | 5,079 | 3,835 |
Marketing and Selling [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share based compensation, Total expensed | 1,250 | 973 | 2,296 | 1,750 |
Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share based compensation, Total expensed | 613 | 488 | 1,127 | 904 |
General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share based compensation, Total expensed | $893 | $625 | $1,593 | $1,181 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Markets | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segment | 1 |
Number of major markets, segment reporting | 2 |
Segment_Reporting_Schedule_of_
Segment Reporting - Schedule of Revenue for Major Markets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | $44,963 | $41,085 | $91,035 | $83,124 |
Creative Professional [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | 18,266 | 14,654 | 35,985 | 29,986 |
OEM [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | $26,697 | $26,431 | $55,050 | $53,138 |
Segment_Reporting_Schedule_of_1
Segment Reporting - Schedule of Revenue by Geographic Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | $44,963 | $41,085 | $91,035 | $83,124 |
% of Total | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | 24,602 | 23,359 | 48,538 | 47,506 |
% of Total | 54.70% | 56.80% | 53.30% | 57.20% |
United Kingdom [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | 2,636 | 1,562 | 5,329 | 2,945 |
% of Total | 5.90% | 3.80% | 5.90% | 3.50% |
Germany [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | 4,210 | 4,500 | 8,687 | 8,120 |
% of Total | 9.40% | 11.00% | 9.50% | 9.80% |
Japan [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | 13,367 | 11,582 | 28,081 | 24,307 |
% of Total | 29.70% | 28.20% | 30.90% | 29.20% |
Other Asia [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total | $148 | $82 | $400 | $246 |
% of Total | 0.30% | 0.20% | 0.40% | 0.30% |
Segment_Reporting_Schedule_of_2
Segment Reporting - Schedule of Assets by Geographic Segments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-lived assets: | ' | ' |
Total | $254,183 | $256,602 |
United States [Member] | ' | ' |
Long-lived assets: | ' | ' |
Total | 189,388 | 192,066 |
United Kingdom [Member] | ' | ' |
Long-lived assets: | ' | ' |
Total | 5,791 | 4,926 |
Germany [Member] | ' | ' |
Long-lived assets: | ' | ' |
Total | 55,459 | 56,140 |
Asia (Including Japan) [Member] | ' | ' |
Long-lived assets: | ' | ' |
Total | $3,545 | $3,470 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Operating leases expiry period | '2022 | ' |
Period of licensing agreement term | '1 year | ' |
Warranty liabilities | $0 | $0 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2015 | $2,902 |
2016 | 2,778 |
2017 | 2,101 |
2018 | 1,816 |
2019 | 1,578 |
Thereafter | 4,097 |
Total | $15,272 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 25, 2014 | Jul. 14, 2014 | Jul. 22, 2014 |
Common Stock [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | ||||
Common Stock [Member] | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Purchase of outstanding stock | ' | ' | ' | ' | ' | $13 | ' |
Dividend approved, amount per share | ' | ' | ' | ' | $0.08 | ' | ' |
Dividend payable, date of record | ' | ' | 1-Oct-14 | ' | ' | ' | ' |
Dividend payable, date to be paid | ' | ' | 21-Oct-14 | ' | ' | ' | ' |
Amount remaining for future purchases under the Plan | ' | ' | ' | ' | ' | ' | 23.6 |
Value of shares repurchased | ' | ' | ' | $0.30 | ' | ' | ' |
Average price per share of shares repurchased | ' | ' | ' | $28.14 | ' | ' | ' |
Number of shares repurchased under stock repurchase program | 941,269 | 75,000 | ' | 11,920 | ' | ' | ' |