Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 24, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TYPE | |
Entity Registrant Name | MONOTYPE IMAGING HOLDINGS INC. | |
Entity Central Index Key | 1,385,292 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,626,782 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 97,583 | $ 87,520 |
Accounts receivable, net of allowance for doubtful accounts of $331 at September 30, 2016 and $264 at December 31, 2015 | 18,091 | 15,179 |
Income tax refunds receivable | 2,457 | 2,558 |
Prepaid expense and other current assets | 7,392 | 3,846 |
Total current assets | 125,523 | 109,103 |
Property and equipment, net | 14,551 | 15,204 |
Goodwill | 275,134 | 185,735 |
Intangible assets, net | 96,454 | 69,264 |
Restricted cash | 18,331 | 9,304 |
Other assets | 2,872 | 3,177 |
Total assets | 532,865 | 391,787 |
Current liabilities: | ||
Accounts payable | 1,376 | 1,385 |
Accrued expenses and other current liabilities | 26,058 | 21,422 |
Accrued income taxes payable | 2,193 | 2,395 |
Deferred revenue | 11,083 | 10,086 |
Total current liabilities | 40,710 | 35,288 |
Revolving line of credit | 110,000 | |
Other long-term liabilities | 9,655 | 6,914 |
Deferred income taxes | 41,669 | 35,159 |
Reserve for income taxes, net of current portion | 2,423 | 2,316 |
Accrued pension benefits | 5,197 | 4,928 |
Commitments and contingencies (Note 13) | ||
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: 43,670,938 shares at September 30, 2016 and 42,019,646 shares at December 31, 2015 | 43 | 42 |
Additional paid-in capital | 270,664 | 256,215 |
Treasury stock, at cost, 2,078,965 shares at September 30, 2016 and 1,999,354 shares at December 31, 2015 | (50,481) | (50,455) |
Retained earnings | 109,810 | 108,908 |
Accumulated other comprehensive loss | (6,825) | (7,528) |
Total stockholders' equity | 323,211 | 307,182 |
Total liabilities and stockholders' equity | $ 532,865 | $ 391,787 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 331 | $ 264 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 43,670,938 | 42,019,646 |
Treasury stock, shares | 2,078,965 | 1,999,354 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 52,229 | $ 49,352 | $ 150,804 | $ 141,803 |
Cost of revenue | 8,534 | 7,351 | 24,441 | 22,314 |
Cost of revenue-amortization of acquired technology | 1,327 | 1,048 | 3,589 | 3,315 |
Total cost of revenue | 9,861 | 8,399 | 28,030 | 25,629 |
Gross profit | 42,368 | 40,953 | 122,774 | 116,174 |
Operating expenses: | ||||
Marketing and selling | 16,538 | 15,472 | 45,273 | 42,980 |
Research and development | 7,781 | 5,155 | 21,108 | 16,244 |
General and administrative | 11,353 | 8,171 | 28,840 | 22,080 |
Amortization of other intangible assets | 941 | 862 | 2,418 | 2,354 |
Total operating expenses | 36,613 | 29,660 | 97,639 | 83,658 |
Income from operations | 5,755 | 11,293 | 25,135 | 32,516 |
Other (income) expense: | ||||
Interest expense | 429 | 253 | 753 | 801 |
Interest income | (78) | (16) | (204) | (26) |
Loss on foreign exchange | 360 | 44 | 794 | 656 |
Gain on derivatives | (93) | (120) | (299) | (48) |
Loss on extinguishment of debt | 112 | 112 | ||
Other expense, net | 5 | 6 | (16) | 4 |
Total other expense | 623 | 279 | 1,028 | 1,499 |
Income before provision for income taxes | 5,132 | 11,014 | 24,107 | 31,017 |
Provision for income taxes | 2,707 | 2,975 | 9,671 | 9,717 |
Net income | 2,425 | 8,039 | 14,436 | 21,300 |
Net income available to common shareholders-basic | 2,341 | 7,837 | 13,982 | 20,799 |
Net income available to common shareholders-diluted | $ 2,340 | $ 7,838 | $ 13,983 | $ 20,802 |
Net income per common share: | ||||
Basic | $ 0.06 | $ 0.20 | $ 0.36 | $ 0.54 |
Diluted | $ 0.06 | $ 0.20 | $ 0.35 | $ 0.53 |
Weighted average number of shares: | ||||
Basic | 39,977,120 | 38,770,626 | 39,348,437 | 38,808,446 |
Diluted | 40,261,247 | 39,230,783 | 39,699,790 | 39,382,558 |
Dividends declared per common share | $ 0.11 | $ 0.10 | $ 0.33 | $ 0.30 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,425 | $ 8,039 | $ 14,436 | $ 21,300 |
Other comprehensive income (loss), net of tax: | ||||
Unrecognized actuarial gain, net of tax of $4, $0, $12 and $0, respectively | 9 | 26 | ||
Foreign currency translation adjustments, net of tax of $118, $546, $688 and $(932), respectively | 131 | (23) | 677 | (2,569) |
Comprehensive income | $ 2,565 | $ 8,016 | $ 15,139 | $ 18,731 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrecognized actuarial gain, tax | $ 4 | $ 0 | $ 12 | $ 0 |
Foreign currency translation adjustments, tax | $ 118 | $ 546 | $ 688 | $ (932) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 14,436 | $ 21,300 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,114 | 7,906 |
Loss on retirement of fixed assets | 20 | |
Loss on debt extinguishment | 112 | |
Amortization of deferred financing costs and accreted interest | 165 | 374 |
Share based compensation | 12,705 | 9,841 |
Excess tax benefit on stock options | (404) | (1,692) |
Provision for doubtful accounts | 216 | 210 |
Deferred income taxes | 2,312 | 2,578 |
Unrealized currency loss on foreign denominated intercompany transactions | 422 | 161 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (372) | (9,385) |
Prepaid expenses and other assets | (2,778) | 1,500 |
Restricted cash | (9,027) | |
Accounts payable | (12) | 653 |
Accrued income taxes payable | 942 | 1,111 |
Accrued expenses and other liabilities | 2,359 | 885 |
Deferred revenue | 1,869 | 4,678 |
Net cash provided by operating activities | 31,947 | 40,252 |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,600) | (7,805) |
Acquisition of businesses, net of cash acquired | (120,444) | (14,289) |
Net cash used in investing activities | (122,044) | (22,094) |
Cash flows from financing activities | ||
Proceeds from line of credit | 110,000 | |
Payment of contingent consideration | (289) | |
Purchase of treasury stock | (18,601) | |
Common stock dividends paid | (12,961) | (11,128) |
Excess tax benefit on stock options | 404 | 1,692 |
Proceeds from exercises of common stock options | 2,390 | 6,627 |
Net cash provided by (used in) financing activities | 99,833 | (21,699) |
Effect of exchange rates on cash and cash equivalents | 327 | (469) |
Increase (decrease) in cash and cash equivalents | 10,063 | (4,010) |
Cash and cash equivalents at beginning of period | 87,520 | 90,325 |
Cash and cash equivalents at end of period | $ 97,583 | $ 86,315 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 professionals and consumer device manufacturers. Our end-user and embedded solutions for print, web and mobile environments enable consumers and professionals to create and consume dynamic content across multiple devices and mediums. Our technologies and fonts enable the display and printing of high quality digital text. Our solutions power the visual expression of the leading makers of a wide range of devices, including laser printers, digital copiers, mobile phones, e-book readers, tablets, automotive displays, digital cameras, navigation devices, digital televisions, set-top boxes, consumer appliances and Internet of Things devices, as well as provide a high-quality text experience in numerous software applications and operating systems. We also provide printer drivers and printer user interface technology to printer manufacturers and OEMs (original equipment manufacturers). We license our fonts and technologies to consumer 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 five domestic operating subsidiaries, Monotype Imaging Inc., Monotype ITC Inc., MyFonts Inc., Swyft Media Inc. and Olapic, Inc., and seven foreign operating subsidiaries, Olapic Argentina S.A., Monotype Ltd., Olapic UK Ltd., Monotype GmbH (“Monotype Germany”), Monotype Solutions India Pvt. Ltd., Monotype Hong Kong Ltd. and Monotype KK. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 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, 2015 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 September 30, 2016, 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, 2015, have not changed. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 3. Recently Issued Accounting Pronouncements Share Based Compensation In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification, Going Concern In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Revenue Recognition In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606), |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | 4. Acquisition Olapic, Inc. On August 9, 2016, the Company purchased all of the outstanding shares of Olapic, Inc., a privately-held company located in New York, New York; its wholly-owned subsidiaries Olapic UK Ltd., based in London, England; and Olapic Argentina S.A., based in Córdoba, Argentina (collectively, “Olapic”). Olapic is a provider of a leading visual commerce platform for collecting, curating, showcasing and measuring crowd sourced photos and videos. Olapic’s Earned Content Platform helps brands collect, curate, use and analyze user-generated content in the form of images and videos in their ecommerce experiences and across multiple marketing channels. This allows consumers to make more educated purchasing decisions, discover new products and connect to the brand’s community. The Company leverages photos and videos from social network sites to help to create powerful branded experiences that drive consumer engagement and increase conversions. The Company acquired Olapic for an aggregate purchase price of approximately $123.7 million, consisting of approximately $13.7 million in cash and borrowed $110.0 million from its line of credit, net of cash acquired. The Merger Agreement included an additional $9.0 million of consideration that has been placed in escrow and will be paid to the founders of Olapic contingent upon continued employment with the Company. Accordingly, this amount will be recognized as compensation expense over the service period contractually required to earn such amounts, which is $3.0 million after twenty four months and the remainder after thirty six months from the acquisition date. Monotype issued approximately $17.1 million of a combination of restricted stock awards or restricted stock units to the founders and employees of Olapic. These awards will vest over time based on continued employment, and accordingly will be accounted for as compensation expense. Seventy four employees from Olapic’s U.S. operations, eighty four employees from Olapic’s Argentina operations and forty UK and European employees joined the Company in connection with the acquisition. The results of operations of Olapic have been included in our consolidated results and revenue is included within the Creative Professional market beginning on August 9, 2016, the date of acquisition. The table below provides the Olapic employees by functional area who have joined the Company in connection with the acquisition: Number of Marketing and selling 117 Research and development 68 General and administration 13 Total 198 The purchase price was allocated to the assets and liabilities based upon their estimated fair value at the date of acquisition, as noted below (in thousands): Estimated Fair Cash $ 5,942 Accounts receivable and other current assets 3,125 Property and equipment and other assets 1,029 Goodwill 88,745 Identifiable intangible assets 33,000 Accounts payable and other accrued expenses (6,176 ) Deferred tax liability (1,966 ) Total purchase price 123,699 The estimated fair value of intangible assets acquired were recorded as follows: Estimated Fair (in thousands) Estimated Useful (in years) Developed technology $ 16,600 10 Customer relationships 7,900 10 Non-compete agreements 1,500 4 Indefinite-lived intangible assets: Trademarks and tradenames 7,000 Total $ 33,000 A portion of the purchase price has been allocated to intangible assets and goodwill, respectively, and is reflected in the tables above. The fair value of the assets acquired and liabilities assumed is less than the purchase price, resulting in the recognition of goodwill. The goodwill reflects the value of the synergies we expect to realize and the assembled workforce. The acquisition of Olapic was structured in such a manner that the goodwill is not expected to be deductible for tax purposes. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the acquisition, which remains preliminary as of September 30, 2016, and using assumptions that the Company’s management believes are reasonable given the information currently available. The final allocation of the purchase price to intangible assets, goodwill and deferred tax assets and liabilities may differ materially from the information presented in these condensed consolidated financial statements. We recorded revenue of $2.0 million and a net loss of $4.6 million from Olapic, since the acquisition date, which is included in our condensed consolidated statements of income, in the three and nine months ended September 30, 2016. Transaction costs of $0.7 million and $1.1 million are included in general and administrative expenses in our condensed consolidated statements of income for the three and nine months ended September 30, 2016, respectively. Pro Forma Results The following table shows unaudited pro forma results of operations as if we had acquired Olapic at the beginning of the periods presented (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 53,598 $ 50,726 $ 159,439 $ 145,101 Net income $ 939 $ 4,947 $ 4,768 $ 11,890 Net income per common share: basic $ 0.02 $ 0.12 $ 0.11 $ 0.29 Net income per common share: diluted $ 0.02 $ 0.12 $ 0.11 $ 0.29 Weighted average number of shares—basic 39,977,120 38,770,626 39,348,437 38,808,446 Weighted average number of shares—diluted 40,261,247 39,230,783 39,699,790 39,382,558 The unaudited pro forma results of operations are not necessarily indicative of the actual results that would have occurred had the transactions actually taken place at the beginning of the periods indicated. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 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: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. 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 September 30, 2016 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 30,722 $ 30,722 $ — $ — Cash equivalents—commercial paper 14,641 — 14,641 — Cash equivalents—corporate bonds 4,782 — 4,782 — Total assets $ 50,145 $ 30,722 $ 19,423 $ — Fair Value Measurement at December 31, 2015 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 21,808 $ 21,808 $ — $ — Cash equivalents—commercial paper 8,920 — 8,920 — Cash equivalents—corporate bonds 9,293 — 9,293 — Total assets $ 40,021 $ 21,808 $ 18,213 $ — The Company’s recurring fair value measures relate to short-term investments, which are classified as cash equivalents, derivative instruments and from time-to-time 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 derivatives 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 September 30, 2016, we had one 30-day forward contract to sell 2.6 million British pound sterling and purchase $3.4 million that together, had an immaterial fair value. There were no outstanding forward contracts at December 31, 2015. The Company’s non-financial assets and non-financial liabilities subject to non-recurring measurements include goodwill and intangible assets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The changes in the carrying value of goodwill are as follows (in thousands): Balance at December 31, 2015 $ 185,735 Acquisition 88,745 Foreign currency exchange rate changes 654 Balance at September 30, 2016 $ 275,134 Intangible Assets Intangible assets consist of the following (dollar amounts in thousands): Weighted- Average Amortization Period (Years) September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships 10 $ 67,844 $ (50,315 ) $ 17,529 $ 59,994 $ (48,767 ) $ 11,227 Acquired technology 11 70,938 (43,355 ) 27,583 54,424 (39,336 ) 15,088 Non-compete agreements 4 14,625 (12,575 ) 2,050 12,946 (12,111 ) 835 Indefinite-lived intangible assets: Trademarks 44,892 — 44,892 37,714 — 37,714 Domain names 4,400 — 4,400 4,400 — 4,400 Total $ 202,699 $ (106,245 ) $ 96,454 $ 169,478 $ (100,214 ) $ 69,264 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt On September 15, 2015, the Company entered into a new credit agreement (the “ New Credit Agreement Credit Facility Original Credit Agreement Borrowings under the Credit Facility bear interest at a variable rate not less than zero based upon, at the Company’s option, either LIBOR or the higher of (i) the prime rate as published in the Wall Street Journal, and (ii) 0.5% plus the overnight federal funds rate, plus in each case, an applicable margin. The applicable margin for LIBOR loans, based on the applicable leverage ratio, is 1.25%, 1.50% or 1.75% per annum, and the applicable margin for base rate loans, based on the applicable leverage ratio, is either 0.25%, 0.50% or 0.75%% per annum. At September 30, 2016 our rate, inclusive of applicable margins, was 1.8% for LIBOR. The Company is required to pay a commitment fee, based on the applicable leverage ratio, equal to 0.20%, 0.25% or 0.30% per annum on the undrawn portion available under the revolving credit facility and variable per annum fees in respect of outstanding letters of credit. In connection with the New Credit Agreement, the Company incurred closing and legal fees of $1.0 million, which have been accounted for as deferred financing costs and will be amortized to interest expense over the term of the New Credit Agreement. In addition to other covenants, the New Credit Agreement places limits on the Company 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. The New Credit Agreement also contains events of default, and affirmative covenants, including financial maintenance covenants which include (i) a maximum ratio of consolidated total debt to consolidated adjusted EBITDA of 3.00 to 1.00, and (ii) a minimum consolidated fixed charge coverage ratio of 1.25 to 1.00. At September 30, 2016, our leverage ratio was 1.69:1.00 and our fixed charge ratio was 4.19:1.00. Adjusted EBITDA, under the Credit Facility, is defined as consolidated net income (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 on a trailing twelve month basis, plus restructuring, issuance costs, cash non-operating costs and other expenses or losses minus cash non-operating gains and other non-cash gains. Failure to comply with these covenants, or the occurrence of an event of default, could permit the Lenders under the New Credit Agreement to declare all amounts borrowed under the New Credit Agreement, together with accrued interest and fees, to be immediately due and payable. In addition, the Credit Facility is secured by a lien on substantially all of the Company’s and its domestic subsidiaries’ tangible and intangible property by a pledge of all of the equity interests of the Company’s direct and indirect domestic subsidiaries and by a pledge by the Company’s domestic subsidiaries of 65% of the equity of their direct foreign subsidiaries, subject to limited exceptions. The Company was in compliance with all covenants under our Credit Facility as of September 30, 2016. |
Defined Benefit Pension Plan
Defined Benefit Pension Plan | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plan | 8. 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 Nine Months Ended 2016 2015 2016 2015 Service cost $ 23 $ 30 $ 71 $ 89 Interest cost 31 29 91 87 Amortization 13 20 38 58 Net periodic benefit cost $ 67 $ 79 $ 200 $ 234 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. 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 2016 2015 Provision for income taxes at statutory rate $ 1,796 35.0 % $ 3,855 35.0 % State and local income taxes, net of federal tax benefit 559 10.9 % 132 1.2 % Stock compensation 86 1.7 % 39 0.4 % Foreign rate differential (255 ) (4.9 )% (76 ) (0.7 )% Reversal of reserve for income taxes — — (689 ) (6.3 )% Research credits (141 ) (2.8 )% — — Permanent non-deductible acquisition related expense 905 17.6 % — — Disqualifying dispositions on incentive stock options (33 ) (0.6 )% (6 ) (0.1 )% Other, net (210 ) (4.2 )% (280 ) (2.5 )% Reported income tax provision $ 2,707 52.7 % $ 2,975 27.0 % Nine Months Ended 2016 2015 Provision for income taxes at statutory rate $ 8,437 35.0 % $ 10,856 35.0 % State and local income taxes, net of federal tax benefit 830 3.4 % 419 1.3 % Stock compensation 181 0.8 % 101 0.3 % Foreign rate differential (512 ) (2.1 )% (262 ) (0.8 )% Reversal of reserve for income taxes — — (1,031 ) (3.3 )% Research credits (300 ) (1.2 )% — — Permanent non-deductible acquisition related expense 1,324 5.5 % — — Disqualifying dispositions on incentive stock options (44 ) (0.2 )% (25 ) (0.1 )% Other, net (245 ) (1.1 )% (341 ) (1.1 )% Reported income tax provision $ 9,671 40.1 % $ 9,717 31.3 % At September 30, 2016, the reserve for uncertain tax positions was approximately $6.0 million. Of this amount, $3.6 million is recorded as a reduction of deferred tax assets and $2.4 million is classified as long term liabilities. The permanent non-deductible acquisition related expense consists of purchase consideration primarily from the Olapic and Swyft acquisitions that is contingent on continued employment of key employees. For financial reporting purposes, these amounts are treated as compensation expense recognized ratably over the minimum required employment periods, which range from January 2018 to August 2019. Since these transactions were accounted for as stock acquisitions, such amounts are not deductible for tax purposes. During the first quarter of 2015, the Company settled a tax audit related to its Japan subsidiary. As a result of this settlement, the Company recognized a tax benefit of $0.3 million. During the third quarter of 2015, the Company settled a tax audit related to its 2012 U.S. federal tax return. As a result of this settlement, the Company recognized a tax benefit of $0.2 million. Additionally, the Company recognized a tax benefit of $0.5 million in the quarter ended September 30, 2015, as a result of the expiration of the 2011 U.S. federal statute of limitations. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 10. 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, Earnings Per Share, 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 all periods presented, the two-class 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 Nine Months Ended 2016 2015 2016 2015 Numerator: Net income, as reported $ 2,425 $ 8,039 $ 14,436 $ 21,300 Less: net income attributable to participating securities (84 ) (202 ) (454 ) (501 ) Net income available to common shareholders—basic $ 2,341 $ 7,837 $ 13,982 $ 20,799 Denominator: Basic: Weighted-average shares of common stock outstanding 41,687,590 39,797,638 40,730,524 39,771,986 Less: weighted-average shares of unvested restricted common stock outstanding (1,710,470 ) (1,027,012 ) (1,382,087 ) (963,540 ) Weighted-average number of common shares used in computing basic net income per common share 39,977,120 38,770,626 39,348,437 38,808,446 Net income per share applicable to common shareholders—basic $ 0.06 $ 0.20 $ 0.36 $ 0.54 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income available to common shareholders—basic $ 2,341 $ 7,837 $ 13,982 $ 20,799 Add-back: undistributed earnings allocated to unvested shareholders (88 ) 105 33 227 Less: undistributed earnings reallocated to unvested shareholders 87 (104 ) (32 ) (224 ) Net income available to common shareholders—diluted $ 2,340 $ 7,838 $ 13,983 $ 20,802 Denominator: Diluted: Weighted-average shares of common stock outstanding 41,687,590 39,797,638 40,730,524 39,771,986 Less: weighted-average shares of unvested restricted common stock outstanding (1,710,470 ) (1,027,012 ) (1,382,087 ) (963,540 ) Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method 284,127 460,157 351,353 574,112 Weighted-average number of common shares used in computing diluted net income per common share 40,261,247 39,230,783 39,699,790 39,382,558 Net income per share applicable to common shareholders—diluted $ 0.06 $ 0.20 $ 0.35 $ 0.53 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 Nine Months Ended 2016 2015 2016 2015 Options 776,827 575,169 700,934 438,524 Unvested restricted stock 357,338 706,865 354,379 400,800 Unvested restricted stock units 15,873 22,513 14,681 15,065 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Share Purchases On August 30, 2016, the Company’s Board of Directors approved a share purchase program permitting repurchases of up to $25.0 million of the Company’s outstanding shares of common stock through December 31, 2017. During the third quarter of 2016, there were no purchases of common stock under the program. Intended to offset shareholder dilution, the Company expects to make repurchases periodically, either on the open market or in privately negotiated transactions, subject to availability, 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. Share Based Compensation We account for share based compensation in accordance with ASC Topic No. 718, Compensation—Stock Compensation Three Months Ended Nine Months Ended 2016 2015 2016 2015 Marketing and selling $ 2,164 $ 1,693 $ 5,349 $ 4,568 Research and development 1,180 633 2,869 1,819 General and administrative 1,962 1,274 4,487 3,454 Total expensed $ 5,306 $ 3,600 $ 12,705 $ 9,841 Property and equipment — — — 82 Total share based compensation $ 5,306 $ 3,600 $ 12,705 $ 9,923 In the three and nine months ended September 30, 2015, approximately $0 and $82 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 September 30, 2016, the Company had $42.3 million of unrecognized compensation expense, which is net of expected forfeitures, related to employees and directors’ unvested stock options, restricted stock units and restricted stock awards that are expected to be recognized over a weighted average period of 2.9 years. As of September 30, 2016, most of the performance criteria was not met on the performance-based restricted stock units; however, if the Company had determined achievement of those performance criteria was probable, the Company would have $5.5 million of unrecognized compensation expense related to these awards. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. 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. Olapic’s revenue has been included in our Creative Professional market. The following table presents revenue for these two major markets (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Creative Professional $ 27,798 $ 22,472 $ 75,170 $ 63,654 OEM 24,431 26,880 75,634 78,149 Total $ 52,229 $ 49,352 $ 150,804 $ 141,803 Geographic segment information The Company attributes revenue 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 the Republic of 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 U.S., United Kingdom, Germany, China, Republic of Korea and Japan. The following summarizes revenue by location: Three Months Ended 2016 2015 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 32,230 61.7 % $ 27,154 55.0 % United Kingdom 2,105 4.0 4,029 8.2 Germany 6,139 11.8 5,877 11.9 Japan 11,625 22.3 12,235 24.8 Other Asia 130 0.2 57 0.1 Total $ 52,229 100.0 % $ 49,352 100.0 % Nine Months Ended 2016 2015 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 85,991 57.0 % $ 78,517 55.4 % United Kingdom 8,677 5.8 7,407 5.2 Germany 18,706 12.4 17,110 12.1 Japan 36,973 24.5 38,215 26.9 Other Asia 457 0.3 554 0.4 Total $ 150,804 100.0 % $ 141,803 100.0 % Long-lived assets, which include property and equipment, goodwill and intangible assets, but exclude other assets and deferred tax assets, are attributed to geographic areas in which Company assets reside and is shown below (in thousands): September 30, December 31, Long-lived assets: United States $ 323,142 $ 206,822 United Kingdom 4,004 4,581 Germany 55,571 55,269 Other 3,422 3,531 Total $ 386,139 $ 270,203 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Operating Leases We conduct operations in facilities under operating leases expiring through 2025. 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 Republic of Korea contain renewal options. The Company’s future minimum payments under non-cancelable operating leases as of September 30, 2016 are approximately as follows (in thousands): Years ending September 30: 2017 $ 4,655 2018 4,010 2019 3,465 2020 2,684 2021 2,659 Thereafter 6,490 Total $ 23,963 Legal Proceedings From time to time, we may be a party to various claims, suits and complaints. We do not believe that there are claims or 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 or unlimited liability. We believe the estimated fair value of these warranties is minimal. Accordingly, there are no liabilities recorded for these warranties as of September 30, 2016 and December 31, 2015. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Dividend Declaration On October 26, 2016 the Company’s Board of Directors declared a $0.11 per share quarterly cash dividend on our outstanding common stock. The record date is set for January 2, 2017 and the dividend is payable to shareholders of record on January 20, 2017. 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 Purchase Program Subsequent to September 30, 2016, the Company purchased 8,000 shares of common stock for $0.2 million, at an average price per share of $21.84 through October 20, 2016. The Company purchased these shares on the open market at prevailing market prices and in accordance with its previously announced share purchase program. At October 20, 2016, $24.8 million remains for future purchase under the Plan. |
Recently Issued Accounting Pr22
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Share Based Compensation | Share Based Compensation In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. |
Leases | Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification, |
Going Concern | Going Concern In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Revenue Recognition | Revenue Recognition In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606), |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Number of Employees Joined in Connection with Acquisition | The table below provides the Olapic employees by functional area who have joined the Company in connection with the acquisition: Number of Marketing and selling 117 Research and development 68 General and administration 13 Total 198 |
Summary of Purchase price Allocated to the Assets and Liabilities | The purchase price was allocated to the assets and liabilities based upon their estimated fair value at the date of acquisition, as noted below (in thousands): Estimated Fair Cash $ 5,942 Accounts receivable and other current assets 3,125 Property and equipment and other assets 1,029 Goodwill 88,745 Identifiable intangible assets 33,000 Accounts payable and other accrued expenses (6,176 ) Deferred tax liability (1,966 ) Total purchase price 123,699 |
Summary of Estimated Fair Value of Intangible Assets Acquired | The estimated fair value of intangible assets acquired were recorded as follows: Estimated Fair (in thousands) Estimated Useful (in years) Developed technology $ 16,600 10 Customer relationships 7,900 10 Non-compete agreements 1,500 4 Indefinite-lived intangible assets: Trademarks and tradenames 7,000 Total $ 33,000 |
Summary of Proforma Results of Operations | The following table shows unaudited pro forma results of operations as if we had acquired Olapic at the beginning of the periods presented (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 53,598 $ 50,726 $ 159,439 $ 145,101 Net income $ 939 $ 4,947 $ 4,768 $ 11,890 Net income per common share: basic $ 0.02 $ 0.12 $ 0.11 $ 0.29 Net income per common share: diluted $ 0.02 $ 0.12 $ 0.11 $ 0.29 Weighted average number of shares—basic 39,977,120 38,770,626 39,348,437 38,808,446 Weighted average number of shares—diluted 40,261,247 39,230,783 39,699,790 39,382,558 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 30,722 $ 30,722 $ — $ — Cash equivalents—commercial paper 14,641 — 14,641 — Cash equivalents—corporate bonds 4,782 — 4,782 — Total assets $ 50,145 $ 30,722 $ 19,423 $ — Fair Value Measurement at December 31, 2015 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 21,808 $ 21,808 $ — $ — Cash equivalents—commercial paper 8,920 — 8,920 — Cash equivalents—corporate bonds 9,293 — 9,293 — Total assets $ 40,021 $ 21,808 $ 18,213 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The changes in the carrying value of goodwill are as follows (in thousands): Balance at December 31, 2015 $ 185,735 Acquisition 88,745 Foreign currency exchange rate changes 654 Balance at September 30, 2016 $ 275,134 |
Intangible Assets | Intangible assets consist of the following (dollar amounts in thousands): Weighted- Average Amortization Period (Years) September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships 10 $ 67,844 $ (50,315 ) $ 17,529 $ 59,994 $ (48,767 ) $ 11,227 Acquired technology 11 70,938 (43,355 ) 27,583 54,424 (39,336 ) 15,088 Non-compete agreements 4 14,625 (12,575 ) 2,050 12,946 (12,111 ) 835 Indefinite-lived intangible assets: Trademarks 44,892 — 44,892 37,714 — 37,714 Domain names 4,400 — 4,400 4,400 — 4,400 Total $ 202,699 $ (106,245 ) $ 96,454 $ 169,478 $ (100,214 ) $ 69,264 |
Defined Benefit Pension Plan (T
Defined Benefit Pension Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Service cost $ 23 $ 30 $ 71 $ 89 Interest cost 31 29 91 87 Amortization 13 20 38 58 Net periodic benefit cost $ 67 $ 79 $ 200 $ 234 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 2016 2015 Provision for income taxes at statutory rate $ 1,796 35.0 % $ 3,855 35.0 % State and local income taxes, net of federal tax benefit 559 10.9 % 132 1.2 % Stock compensation 86 1.7 % 39 0.4 % Foreign rate differential (255 ) (4.9 )% (76 ) (0.7 )% Reversal of reserve for income taxes — — (689 ) (6.3 )% Research credits (141 ) (2.8 )% — — Permanent non-deductible acquisition related expense 905 17.6 % — — Disqualifying dispositions on incentive stock options (33 ) (0.6 )% (6 ) (0.1 )% Other, net (210 ) (4.2 )% (280 ) (2.5 )% Reported income tax provision $ 2,707 52.7 % $ 2,975 27.0 % Nine Months Ended 2016 2015 Provision for income taxes at statutory rate $ 8,437 35.0 % $ 10,856 35.0 % State and local income taxes, net of federal tax benefit 830 3.4 % 419 1.3 % Stock compensation 181 0.8 % 101 0.3 % Foreign rate differential (512 ) (2.1 )% (262 ) (0.8 )% Reversal of reserve for income taxes — — (1,031 ) (3.3 )% Research credits (300 ) (1.2 )% — — Permanent non-deductible acquisition related expense 1,324 5.5 % — — Disqualifying dispositions on incentive stock options (44 ) (0.2 )% (25 ) (0.1 )% Other, net (245 ) (1.1 )% (341 ) (1.1 )% Reported income tax provision $ 9,671 40.1 % $ 9,717 31.3 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Numerator: Net income, as reported $ 2,425 $ 8,039 $ 14,436 $ 21,300 Less: net income attributable to participating securities (84 ) (202 ) (454 ) (501 ) Net income available to common shareholders—basic $ 2,341 $ 7,837 $ 13,982 $ 20,799 Denominator: Basic: Weighted-average shares of common stock outstanding 41,687,590 39,797,638 40,730,524 39,771,986 Less: weighted-average shares of unvested restricted common stock outstanding (1,710,470 ) (1,027,012 ) (1,382,087 ) (963,540 ) Weighted-average number of common shares used in computing basic net income per common share 39,977,120 38,770,626 39,348,437 38,808,446 Net income per share applicable to common shareholders—basic $ 0.06 $ 0.20 $ 0.36 $ 0.54 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income available to common shareholders—basic $ 2,341 $ 7,837 $ 13,982 $ 20,799 Add-back: undistributed earnings allocated to unvested shareholders (88 ) 105 33 227 Less: undistributed earnings reallocated to unvested shareholders 87 (104 ) (32 ) (224 ) Net income available to common shareholders—diluted $ 2,340 $ 7,838 $ 13,983 $ 20,802 Denominator: Diluted: Weighted-average shares of common stock outstanding 41,687,590 39,797,638 40,730,524 39,771,986 Less: weighted-average shares of unvested restricted common stock outstanding (1,710,470 ) (1,027,012 ) (1,382,087 ) (963,540 ) Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method 284,127 460,157 351,353 574,112 Weighted-average number of common shares used in computing diluted net income per common share 40,261,247 39,230,783 39,699,790 39,382,558 Net income per share applicable to common shareholders—diluted $ 0.06 $ 0.20 $ 0.35 $ 0.53 |
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 Nine Months Ended 2016 2015 2016 2015 Options 776,827 575,169 700,934 438,524 Unvested restricted stock 357,338 706,865 354,379 400,800 Unvested restricted stock units 15,873 22,513 14,681 15,065 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [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 Nine Months Ended 2016 2015 2016 2015 Marketing and selling $ 2,164 $ 1,693 $ 5,349 $ 4,568 Research and development 1,180 633 2,869 1,819 General and administrative 1,962 1,274 4,487 3,454 Total expensed $ 5,306 $ 3,600 $ 12,705 $ 9,841 Property and equipment — — — 82 Total share based compensation $ 5,306 $ 3,600 $ 12,705 $ 9,923 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue for Major Markets | The following table presents revenue for these two major markets (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Creative Professional $ 27,798 $ 22,472 $ 75,170 $ 63,654 OEM 24,431 26,880 75,634 78,149 Total $ 52,229 $ 49,352 $ 150,804 $ 141,803 |
Schedule of Revenue by Geographic Segments | The following summarizes revenue by location: Three Months Ended 2016 2015 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 32,230 61.7 % $ 27,154 55.0 % United Kingdom 2,105 4.0 4,029 8.2 Germany 6,139 11.8 5,877 11.9 Japan 11,625 22.3 12,235 24.8 Other Asia 130 0.2 57 0.1 Total $ 52,229 100.0 % $ 49,352 100.0 % Nine Months Ended 2016 2015 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 85,991 57.0 % $ 78,517 55.4 % United Kingdom 8,677 5.8 7,407 5.2 Germany 18,706 12.4 17,110 12.1 Japan 36,973 24.5 38,215 26.9 Other Asia 457 0.3 554 0.4 Total $ 150,804 100.0 % $ 141,803 100.0 % |
Schedule of Assets by Geographic Segments | Long-lived assets, which include property and equipment, goodwill and intangible assets, but exclude other assets and deferred tax assets, are attributed to geographic areas in which Company assets reside and is shown below (in thousands): September 30, December 31, Long-lived assets: United States $ 323,142 $ 206,822 United Kingdom 4,004 4,581 Germany 55,571 55,269 Other 3,422 3,531 Total $ 386,139 $ 270,203 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 are approximately as follows (in thousands): Years ending September 30: 2017 $ 4,655 2018 4,010 2019 3,465 2020 2,684 2021 2,659 Thereafter 6,490 Total $ 23,963 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016SegmentSubsidiary | |
Nature Of Business [Abstract] | |
Number of business segments | Segment | 1 |
Number of subsidiaries, domestic | 5 |
Number of subsidiaries, foreign | 7 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) $ in Thousands | Aug. 09, 2016USD ($)Employees | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Revenue | $ 52,229 | $ 49,352 | $ 150,804 | $ 141,803 | |
Net loss | 2,425 | 8,039 | 14,436 | 21,300 | |
United States [Member] | |||||
Business Acquisition [Line Items] | |||||
Revenue | 32,230 | $ 27,154 | 85,991 | $ 78,517 | |
Olapic, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 123,700 | ||||
Business acquisition, cash purchase price | 13,700 | ||||
Business acquisition, line of credit | $ 110,000 | ||||
Number of employees joined in connection with the acquisition | Employees | 198 | ||||
Revenue | 2,000 | 2,000 | |||
Net loss | 4,600 | 4,600 | |||
Olapic, Inc. [Member] | General and Administrative [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of employees joined in connection with the acquisition | Employees | 13 | ||||
Transaction costs | 700 | 1,100 | |||
Olapic, Inc. [Member] | Founders and Employees [Member] | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration placed in escrow | $ 9,000 | ||||
Unrecognized compensation expense due to business acquisition | $ 3,000 | $ 3,000 | |||
Minimum period to recognize compensation expense from escrow deposit | 24 months | ||||
Olapic, Inc. [Member] | Founders and Employees [Member] | Restricted Stock Awards and Units [Member] | |||||
Business Acquisition [Line Items] | |||||
Stock awards issued/issuable upon acquisition | $ 17,100 | ||||
Olapic, Inc. [Member] | United States [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of employees joined in connection with the acquisition | Employees | 74 | ||||
Olapic, Inc. [Member] | Argentina [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of employees joined in connection with the acquisition | Employees | 84 | ||||
Olapic, Inc. [Member] | UK and European [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of employees joined in connection with the acquisition | Employees | 40 |
Acquisition - Schedule of Numbe
Acquisition - Schedule of Number of Employees Joined in Connection With Acquisition (Detail) - Olapic, Inc. [Member] | Aug. 09, 2016Employees |
Business Acquisition [Line Items] | |
Number of employees joined in connection with the acquisition | 198 |
Marketing and Selling [Member] | |
Business Acquisition [Line Items] | |
Number of employees joined in connection with the acquisition | 117 |
Research and Development [Member] | |
Business Acquisition [Line Items] | |
Number of employees joined in connection with the acquisition | 68 |
General and Administrative [Member] | |
Business Acquisition [Line Items] | |
Number of employees joined in connection with the acquisition | 13 |
Acquisition - Summary of Purcha
Acquisition - Summary of Purchase price Allocated to the Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Aug. 09, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 275,134 | $ 185,735 | |
Olapic, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 5,942 | ||
Accounts receivable and other current assets | 3,125 | ||
Property and equipment and other assets | 1,029 | ||
Goodwill | 88,745 | ||
Identifiable intangible assets | $ 33,000 | 33,000 | |
Accounts payable and other accrued expenses | (6,176) | ||
Deferred tax liability | (1,966) | ||
Total purchase price | $ 123,699 |
Acquisition - Summary of Estima
Acquisition - Summary of Estimated Fair Value of Intangible Assets Acquired (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Aug. 09, 2016 | |
Customer Relationships [Member] | ||
Acquired Finite And Indefinite Lived Intangible Asset [Line Items] | ||
Finite-lived intangible assets, estimated useful life | 10 years | |
Non-compete Agreements [Member] | ||
Acquired Finite And Indefinite Lived Intangible Asset [Line Items] | ||
Finite-lived intangible assets, estimated useful life | 4 years | |
Olapic, Inc. [Member] | ||
Acquired Finite And Indefinite Lived Intangible Asset [Line Items] | ||
Total | $ 33,000 | $ 33,000 |
Olapic, Inc. [Member] | Trademarks and Tradenames [Member] | ||
Acquired Finite And Indefinite Lived Intangible Asset [Line Items] | ||
Indefinite-lived intangible assets, estimated fair value at acquisition date | 7,000 | |
Olapic, Inc. [Member] | Developed Technology [Member] | ||
Acquired Finite And Indefinite Lived Intangible Asset [Line Items] | ||
Finite-lived intangible assets, estimated fair value at acquisition date | $ 16,600 | |
Finite-lived intangible assets, estimated useful life | 10 years | |
Olapic, Inc. [Member] | Customer Relationships [Member] | ||
Acquired Finite And Indefinite Lived Intangible Asset [Line Items] | ||
Finite-lived intangible assets, estimated fair value at acquisition date | $ 7,900 | |
Finite-lived intangible assets, estimated useful life | 10 years | |
Olapic, Inc. [Member] | Non-compete Agreements [Member] | ||
Acquired Finite And Indefinite Lived Intangible Asset [Line Items] | ||
Finite-lived intangible assets, estimated fair value at acquisition date | $ 1,500 | |
Finite-lived intangible assets, estimated useful life | 4 years |
Acquisition - Summary of Profor
Acquisition - Summary of Proforma Results of Operations (Detail) - Olapic, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 53,598 | $ 50,726 | $ 159,439 | $ 145,101 |
Net income | $ 939 | $ 4,947 | $ 4,768 | $ 11,890 |
Net income per common share: basic | $ 0.02 | $ 0.12 | $ 0.11 | $ 0.29 |
Net income per common share: diluted | $ 0.02 | $ 0.12 | $ 0.11 | $ 0.29 |
Weighted average number of shares-basic | 39,977,120 | 38,770,626 | 39,348,437 | 38,808,446 |
Weighted average number of shares-diluted | 40,261,247 | 39,230,783 | 39,699,790 | 39,382,558 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 50,145 | $ 40,021 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 30,722 | 21,808 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 14,641 | 8,920 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,782 | 9,293 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 30,722 | 21,808 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 30,722 | 21,808 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 19,423 | 18,213 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 14,641 | 8,920 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 4,782 | $ 9,293 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2016USD ($)Contract | Sep. 30, 2016GBP (£)Contract | Dec. 31, 2015Contract | |
Forward Contract to Sell [Member] | |||
Derivative [Line Items] | |||
Number of forward contract outstanding | 0 | ||
Forward contract outstanding | £ | £ 2,600,000 | ||
Forward Contract to Purchase [Member] | |||
Derivative [Line Items] | |||
Number of forward contract outstanding | 1 | 1 | |
Forward contract outstanding | $ | $ 3,400,000 | ||
Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Forward contract terms | 30-day forward contract |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 185,735 |
Acquisition | 88,745 |
Foreign currency exchange rate changes | 654 |
Goodwill, Ending Balance | $ 275,134 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships, Gross Carrying Amount | $ 67,844 | $ 59,994 |
Acquired technology, Gross Carrying Amount | 70,938 | 54,424 |
Non-compete agreements, Gross Carrying Amount | 14,625 | 12,946 |
Indefinite-lived intangible assets: | ||
Gross Carrying Amount | 202,699 | 169,478 |
Accumulated Amortization | (106,245) | (100,214) |
Net Balance | 96,454 | 69,264 |
Trademarks [Member] | ||
Indefinite-lived intangible assets: | ||
Net Balance, Indefinite-Lived Intangible Assets | 44,892 | 37,714 |
Net Balance, Indefinite-Lived Intangible Assets | 44,892 | 37,714 |
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 | |
Indefinite-lived intangible assets: | ||
Accumulated Amortization | $ (50,315) | (48,767) |
Net Balance, Finite-Lived Intangible Assets | $ 17,529 | 11,227 |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Amortization Period (Years) | 11 years | |
Indefinite-lived intangible assets: | ||
Accumulated Amortization | $ (43,355) | (39,336) |
Net Balance, Finite-Lived Intangible Assets | $ 27,583 | 15,088 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Amortization Period (Years) | 4 years | |
Indefinite-lived intangible assets: | ||
Accumulated Amortization | $ (12,575) | (12,111) |
Net Balance, Finite-Lived Intangible Assets | $ 2,050 | $ 835 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Sep. 15, 2015 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
New credit agreement entering date | Sep. 15, 2015 | |
Maximum increase in secured credit facility | $ 200,000,000 | |
Interest rate on outstanding borrowings | Borrowings under the Credit Facility bear interest at a variable rate not less than zero based upon, at the Company’s option, either LIBOR or the higher of (i) the prime rate as published in the Wall Street Journal, and (ii) 0.5% plus the overnight federal funds rate, plus in each case, an applicable margin. The applicable margin for LIBOR loans, based on the applicable leverage ratio, is 1.25%, 1.50% or 1.75% per annum, and the applicable margin for base rate loans, based on the applicable leverage ratio, is either 0.25%, 0.50% or 0.75%% per annum. At September 30, 2016 our rate, inclusive of applicable margins, was 1.8% for LIBOR. | |
Outstanding borrowings under credit facility | $ 0 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility, expiration date | Sep. 15, 2020 | |
New Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility, current borrowing capacity | $ 110,000,000 | |
Closing and legal fees | $ 1,000,000 | |
Silicon Valley Bank [Member] | New Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility term, years | 5 years | |
Secured revolving credit facility, current borrowing capacity | $ 150,000,000 | |
Percentage of fee payment on unused line of credit facility, lower end | 0.20% | |
Percentage of fee payment on unused line of credit facility | 0.25% | |
Percentage of fee payment on unused line of credit facility, higher end | 0.30% | |
Maximum acquisition expense | $ 2,000,000 | |
Period of calculating EBITDA (in month) | 12 months | |
Percentage of equity interest in direct foreign subsidiaries pledged | 65.00% | |
Credit facility financial covenants terms | (i) a maximum ratio of consolidated total debt to consolidated adjusted EBITDA of 3.00 to 1.00, and (ii) a minimum consolidated fixed charge coverage ratio of 1.25 to 1.00. | |
Leverage ratio | 169.00% | |
Fixed charge ratio | 419.00% | |
Silicon Valley Bank [Member] | New Credit Agreement [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility, minimum variable rate | 0.00% | |
Wells Fargo Capital Finance, LLC [Member] | Original Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility, current borrowing capacity | $ 120,000,000 | |
Secured revolving credit facility, expiration date | Jul. 13, 2016 | |
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] | ||
Credit facility basis spread on variable rate LIBOR | 0.50% | |
Variable interest rate | 1.80% | |
LIBOR Rate [Member] | Silicon Valley Bank [Member] | New Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Applicable leverage ratio, lower end | 1.25% | |
Applicable leverage ratio | 1.50% | |
Applicable leverage ratio, higher end | 1.75% | |
Base Rate [Member] | Silicon Valley Bank [Member] | New Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Applicable leverage ratio, lower end | 0.25% | |
Applicable leverage ratio | 0.50% | |
Applicable leverage ratio, higher end | 0.75% |
Defined Benefit Pension Plan -
Defined Benefit Pension Plan - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Postemployment Benefits [Abstract] | ||||
Service cost | $ 23 | $ 30 | $ 71 | $ 89 |
Interest cost | 31 | 29 | 91 | 87 |
Amortization | 13 | 20 | 38 | 58 |
Net periodic benefit cost | $ 67 | $ 79 | $ 200 | $ 234 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation Computed at Federal Statutory Rates to Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes at statutory rate | $ 1,796 | $ 3,855 | $ 8,437 | $ 10,856 |
State and local income taxes, net of federal tax benefit | 559 | 132 | 830 | 419 |
Stock compensation | 86 | 39 | 181 | 101 |
Foreign rate differential | (255) | (76) | (512) | (262) |
Reversal of reserve for income taxes | (689) | (1,031) | ||
Research credits | (141) | (300) | ||
Permanent non-deductible acquisition related expense | 905 | 1,324 | ||
Disqualifying dispositions on incentive stock options | (33) | (6) | (44) | (25) |
Other, net | 210 | (280) | (245) | (341) |
Reported income tax provision | $ 2,707 | $ 2,975 | $ 9,671 | $ 9,717 |
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 | 10.90% | 1.20% | 3.40% | 1.30% |
Stock compensation, tax rate | 1.70% | 0.40% | 0.80% | 0.30% |
Foreign rate differential, tax rate | (4.90%) | (0.70%) | (2.10%) | (0.80%) |
Reversal of reserve for income taxes, tax rate | (6.30%) | (3.30%) | ||
Research credits, tax rate | (2.80%) | (1.20%) | ||
Permanent non-deductible acquisition related expense, tax rate | 17.60% | 5.50% | ||
Disqualifying dispositions on incentive stock options, tax rate | (0.60%) | (0.10%) | (0.20%) | (0.10%) |
Other, net, tax rate | (4.20%) | (2.50%) | (1.10%) | (1.10%) |
Reported income tax provision, tax rate | 52.70% | 27.00% | 40.10% | 31.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2016 | |
Schedule Of Income Taxes [Line Items] | ||
Reserve for uncertain tax positions | $ 6 | |
Uncertain tax position reduction in deferred tax assets | 3.6 | |
Uncertain tax positions long term liabilities | 2.4 | |
United States [Member] | Tax Year 2012 [Member] | ||
Schedule Of Income Taxes [Line Items] | ||
Income tax benefit recognized through tax audit settlement | $ 0.2 | |
United States [Member] | Tax Year 2011 [Member] | ||
Schedule Of Income Taxes [Line Items] | ||
Income tax benefit recognized through tax audit settlement | $ 0.5 | |
Japan Subsidiaries [Member] | ||
Schedule Of Income Taxes [Line Items] | ||
Income tax settlement, benefit recognized | $ 0.3 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income, as reported | $ 2,425 | $ 8,039 | $ 14,436 | $ 21,300 |
Less: net income attributable to participating securities | (84) | (202) | (454) | (501) |
Net income available to common shareholders-basic | $ 2,341 | $ 7,837 | $ 13,982 | $ 20,799 |
Basic: | ||||
Weighted-average shares of common stock outstanding | 41,687,590 | 39,797,638 | 40,730,524 | 39,771,986 |
Less: weighted-average shares of unvested restricted common stock outstanding | (1,710,470) | (1,027,012) | (1,382,087) | (963,540) |
Weighted-average number of common shares used in computing basic net income per common share | 39,977,120 | 38,770,626 | 39,348,437 | 38,808,446 |
Net income per share applicable to common shareholders-basic | $ 0.06 | $ 0.20 | $ 0.36 | $ 0.54 |
Net income available to common shareholders-basic | $ 2,341 | $ 7,837 | $ 13,982 | $ 20,799 |
Add-back: undistributed earnings allocated to unvested shareholders | (88) | 105 | 33 | 227 |
Less: undistributed earnings reallocated to unvested shareholders | 87 | (104) | (32) | (224) |
Net income available to common shareholders-diluted | $ 2,340 | $ 7,838 | $ 13,983 | $ 20,802 |
Weighted-average shares of common stock outstanding | 41,687,590 | 39,797,638 | 40,730,524 | 39,771,986 |
Less: weighted-average shares of unvested restricted common stock outstanding | (1,710,470) | (1,027,012) | (1,382,087) | (963,540) |
Weighted-average number of common shares used in computing diluted net income per common share | 40,261,247 | 39,230,783 | 39,699,790 | 39,382,558 |
Net income per share applicable to common shareholders-diluted | $ 0.06 | $ 0.20 | $ 0.35 | $ 0.53 |
Weighted Average [Member] | ||||
Basic: | ||||
Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method | 284,127 | 460,157 | 351,353 | 574,112 |
Net Income Per Share - Schedu47
Net Income Per Share - Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 776,827 | 575,169 | 700,934 | 438,524 |
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 | 357,338 | 706,865 | 354,379 | 400,800 |
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 | 15,873 | 22,513 | 14,681 | 15,065 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Aug. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share based compensation, capitalized | $ 0 | $ 82,000 | |||
Unrecognized compensation expense | $ 42,300,000 | $ 42,300,000 | |||
Weighted-average period, years | 2 years 10 months 24 days | ||||
Performance Based Restricted Stock Units [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Unrecognized compensation expense | $ 5,500,000 | $ 5,500,000 | |||
Share Repurchase Program [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total amount authorized under repurchase program | $ 25,000,000 | ||||
Number of shares repurchased under stock repurchase program | 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | $ 5,306 | $ 3,600 | $ 12,705 | $ 9,841 |
Property and equipment | 0 | 82 | ||
Total share based compensation | 5,306 | 3,600 | 12,705 | 9,923 |
Marketing and Selling [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | 2,164 | 1,693 | 5,349 | 4,568 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | 1,180 | 633 | 2,869 | 1,819 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | $ 1,962 | $ 1,274 | $ 4,487 | $ 3,454 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016SegmentMarkets | |
Segment Reporting [Abstract] | |
Number of operating segment | Segment | 1 |
Number of major markets, segment reporting | Markets | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenue for Major Markets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total | $ 52,229 | $ 49,352 | $ 150,804 | $ 141,803 |
Creative Professional [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | 27,798 | 22,472 | 75,170 | 63,654 |
OEM [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 24,431 | $ 26,880 | $ 75,634 | $ 78,149 |
Segment Reporting - Schedule 52
Segment Reporting - Schedule of Revenue by Geographic Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total | $ 52,229 | $ 49,352 | $ 150,804 | $ 141,803 |
% of Total | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 32,230 | $ 27,154 | $ 85,991 | $ 78,517 |
% of Total | 61.70% | 55.00% | 57.00% | 55.40% |
United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 2,105 | $ 4,029 | $ 8,677 | $ 7,407 |
% of Total | 4.00% | 8.20% | 5.80% | 5.20% |
Germany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 6,139 | $ 5,877 | $ 18,706 | $ 17,110 |
% of Total | 11.80% | 11.90% | 12.40% | 12.10% |
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 11,625 | $ 12,235 | $ 36,973 | $ 38,215 |
% of Total | 22.30% | 24.80% | 24.50% | 26.90% |
Other Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 130 | $ 57 | $ 457 | $ 554 |
% of Total | 0.20% | 0.10% | 0.30% | 0.40% |
Segment Reporting - Schedule 53
Segment Reporting - Schedule of Assets by Geographic Segments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Long-lived assets: | ||
Total | $ 386,139 | $ 270,203 |
United States [Member] | ||
Long-lived assets: | ||
Total | 323,142 | 206,822 |
United Kingdom [Member] | ||
Long-lived assets: | ||
Total | 4,004 | 4,581 |
Germany [Member] | ||
Long-lived assets: | ||
Total | 55,571 | 55,269 |
Other [Member] | ||
Long-lived assets: | ||
Total | $ 3,422 | $ 3,531 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating leases expiry period | 2,025 | |
Period of licensing agreement term | 1 year | |
Warranty liabilities | $ 0 | $ 0 |
Commitments and Contingencies55
Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 4,655 |
2,018 | 4,010 |
2,019 | 3,465 |
2,020 | 2,684 |
2,021 | 2,659 |
Thereafter | 6,490 |
Total | $ 23,963 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Oct. 20, 2016 | Sep. 30, 2016 | Oct. 26, 2016 |
Subsequent Event [Line Items] | |||
Dividend payable, date of record | Jan. 2, 2017 | ||
Dividend payable, date to be paid | Jan. 20, 2017 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividend approved, amount per share | $ 0.11 | ||
Subsequent Event [Member] | Share Repurchase Program [Member] | |||
Subsequent Event [Line Items] | |||
Number of shares repurchased under stock repurchase program | 8,000 | ||
Total common stock aggregate purchase price | $ 0.2 | ||
Purchase of common stock, average price per share | $ 21.84 | ||
Stock repurchase program, remaining repurchase amount | $ 24.8 |