x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
77-0492262
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. employer identification no.)
|
Large accelerated filer ¨
|
Accelerated filer x
|
Non-accelerated filer ¨
|
Smaller reporting company ¨
|
|
|
Page
|
PART I
|
FINANCIAL INFORMATION
|
|
|
|
|
Item 1
|
3
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
Item 2
|
15
|
|
Item 3
|
24
|
|
Item 4
|
24
|
|
|
|
|
PART II
|
OTHER INFORMATION
|
|
|
|
|
Item 1
|
25
|
|
Item 1A
|
25
|
|
Item 2
|
36
|
|
Item 3
|
36
|
|
Item 4
|
36
|
|
Item 5
|
36
|
|
Item 6
|
37
|
|
|
38
|
ITEM 1.
|
|
September 30, 2012
(unaudited)
|
|
|
December 31, 2011
(audited)
|
|
|||
Assets
|
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
24,334
|
|
|
$
|
14,020
|
|
Marketable investments
|
|
|
55,795
|
|
|
|
74,666
|
|
Accounts receivable, net
|
|
|
7,845
|
|
|
|
5,193
|
|
Inventories
|
|
|
12,477
|
|
|
|
10,729
|
|
Deferred tax asset
|
|
|
49
|
|
|
|
55
|
|
Other current assets and prepaid expenses
|
|
|
1,443
|
|
|
|
1,432
|
|
Total current assets
|
|
|
101,943
|
|
|
|
106,095
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
885
|
|
|
|
853
|
|
Long-term investments
|
|
|
1,050
|
|
|
|
3,027
|
|
Deferred tax asset, net of current portion
|
|
|
470
|
|
|
|
446
|
|
Intangibles, net
|
|
|
2,876
|
|
|
|
446
|
|
Goodwill
|
1,339
|
—
|
||||||
Other long-term assets
|
|
|
517
|
|
|
|
486
|
|
Total assets
|
|
$
|
109,080
|
|
|
$
|
111,353
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,297
|
|
|
$
|
2,573
|
|
Accrued liabilities
|
|
|
9,486
|
|
|
|
9,262
|
|
Deferred revenue
|
|
|
6,299
|
|
|
|
5,185
|
|
Total current liabilities
|
|
|
18,082
|
|
|
|
17,020
|
|
|
|
|
|
|
|
|
|
|
Deferred rent
|
|
|
1,347
|
|
|
|
1,448
|
|
Deferred revenue, net of current portion
|
|
|
1,411
|
|
|
|
840
|
|
Income tax liability
|
|
|
471
|
|
|
|
478
|
|
Total liabilities
|
|
|
21,311
|
|
|
|
19,786
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
Convertible preferred stock, $0.001 par value; authorized: 5,000,000 shares; none issued and outstanding
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.001 par value; authorized: 50,000,000 shares; issued and outstanding: 14,127,344 and 13,948,395 shares at September 30, 2012 and December 31, 2011, respectively
|
|
|
14
|
|
|
|
14
|
|
Additional paid-in capital
|
|
|
98,865
|
|
|
|
95,719
|
|
Accumulated deficit
|
|
|
(10,950
|
)
|
|
|
(3,325
|
)
|
Accumulated other comprehensive loss
|
|
|
(160
|
)
|
|
|
(841
|
)
|
Total stockholders’ equity
|
|
|
87,769
|
|
|
|
91,567
|
|
Total liabilities and stockholders’ equity
|
|
$
|
109,080
|
|
|
$
|
111,353
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|||||||||||
|
September 30,
|
|
|
September 30,
|
|
|||||||||||
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|||||
Net revenue:
|
|
|
|
|
|
|
|
|
||||||||
Products
|
|
$
|
15,128
|
|
|
$
|
12,005
|
|
|
$
|
42,138
|
|
$
|
31,599
|
|
|
Service
|
|
4,298
|
|
|
3,227
|
|
|
12,606
|
|
|
|
10,149
|
|
|||
Total net revenue
|
|
|
19,426
|
|
|
|
15,232
|
|
|
|
54,744
|
|
|
|
41,748
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Products
|
|
|
6,618
|
|
|
|
4,580
|
|
|
|
19,237
|
|
|
12,078
|
|
|
Service
|
|
|
2,210
|
|
|
|
2,192
|
|
|
|
6,710
|
|
|
|
6,394
|
|
Total cost of revenue
|
|
|
8,828
|
|
|
|
6,772
|
|
|
|
25,947
|
|
|
|
18,472
|
|
Gross profit
|
|
|
10,598
|
|
|
|
8,460
|
|
|
|
28,797
|
|
|
|
23,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
7,014
|
|
|
|
6,426
|
|
|
|
21,563
|
|
|
|
18,720
|
|
Research and development
|
|
|
2,217
|
|
|
|
2,352
|
|
|
|
6,305
|
|
|
|
6,828
|
|
General and administrative
|
|
|
2,475
|
|
|
|
2,310
|
|
|
|
8,824
|
|
|
|
7,226
|
|
Total operating expenses
|
|
|
11,706
|
|
|
|
11,088
|
|
|
|
36,692
|
|
|
|
32,774
|
|
Loss from operations
|
|
|
(1,108
|
)
|
|
|
(2,628
|
)
|
|
|
(7,895
|
)
|
|
|
(9,498
|
)
|
Interest and other income, net
|
|
|
152
|
|
|
|
91
|
|
|
|
392
|
|
|
|
474
|
|
Loss before income taxes
|
|
|
(956
|
)
|
|
|
(2,537
|
)
|
|
|
(7,503
|
)
|
|
|
(9,024
|
)
|
Provision (benefit) for income taxes
|
|
|
(64
|
)
|
|
|
326
|
|
|
122
|
|
|
150
|
|||
Net loss
|
|
$
|
(892
|
)
|
|
$
|
(2,863
|
)
|
|
$
|
(7,625
|
)
|
|
$
|
(9,174
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
$
|
(0.06
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.54
|
)
|
|
$
|
(0.67
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
|
14,127
|
|
|
|
13,862
|
|
|
|
14,061
|
|
|
|
13,765
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|||||||||||
|
September 30,
|
|
|
September 30,
|
|
|||||||||||
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|||||
Net loss
|
|
$
|
(892
|
)
|
|
$
|
(2,863
|
)
|
|
$
|
(7,625
|
)
|
|
$
|
(9,174
|
)
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
||||||||
Net change in unrealized gain on available-for-sale securities
|
|
267
|
|
|
35
|
|
|
804
|
|
|
|
725
|
|
|||
Provision (benefit) for income taxes related to items of other comprehensive income
|
|
|
102
|
|
|
(262
|
)
|
|
|
123
|
|
|
|
(194
|
)
|
|
Other comprehensive income, net of tax
|
|
|
165
|
|
|
|
297
|
|
|
|
681
|
|
|
|
919
|
|
Comprehensive loss
|
|
$
|
(727
|
)
|
|
$
|
(2,566
|
)
|
|
$
|
(6,944
|
)
|
|
$
|
(8,255
|
)
|
|
Nine Months Ended
|
|
||||||
|
September 30,
|
|
||||||
|
2012
|
|
|
2011
|
|
|||
Cash flows from operating activities:
|
|
|
|
|
|
|
||
Net loss
|
|
$
|
(7,625
|
)
|
|
$
|
(9,174
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
2,334
|
|
|
|
3,105
|
|
Tax benefit from stock-based compensation
|
|
|
—
|
|
|
21
|
||
Excess tax benefit related to stock-based compensation
|
|
|
—
|
|
|
|
(21
|
)
|
Depreciation and amortization
|
|
|
1,186
|
|
|
|
483
|
|
Other
|
|
|
(113
|
)
|
|
|
235
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(2,698
|
)
|
|
|
106
|
|
Inventories
|
|
|
(196
|
)
|
|
|
(3,211
|
)
|
Other current assets and prepaid expenses
|
|
|
717
|
|
|
|
1,951
|
|
Other long-term assets
|
(31
|
)
|
(493
|
)
|
||||
Accounts payable
|
|
|
(276
|
)
|
|
|
855
|
|
Accrued liabilities
|
|
|
(163
|
)
|
|
|
1,086
|
|
Deferred rent
|
|
|
(24
|
)
|
|
|
(10
|
)
|
Deferred revenue
|
|
|
905
|
|
|
(698
|
)
|
|
Income tax liability
|
|
|
(7
|
)
|
|
|
12
|
|
Net cash used in operating activities
|
|
|
(5,991
|
)
|
|
|
(5,753
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment
|
|
|
(358
|
)
|
|
|
(421
|
)
|
Disposal of property and equipment
|
—
|
36
|
||||||
Business acquisition
|
|
|
(5,091
|
)
|
|
|
—
|
|
Proceeds from sales of marketable and long-term investments
|
|
|
26,361
|
|
|
|
17,597
|
|
Proceeds from maturities of marketable investments
|
|
|
34,445
|
|
|
|
35,085
|
|
Purchase of marketable investments
|
|
|
(39,864
|
)
|
|
|
(46,255
|
)
|
Net cash provided by investing activities
|
|
|
15,493
|
|
|
|
6,042
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options and employee stock purchase plan
|
|
|
812
|
|
|
|
1,045
|
|
Excess tax benefit related to stock-based compensation
|
|
|
—
|
|
|
|
21
|
|
Net cash provided by financing activities
|
|
|
812
|
|
|
|
1,066
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
10,314
|
|
|
|
1,355
|
|
Cash and cash equivalents at beginning of period
|
|
|
14,020
|
|
|
|
12,519
|
|
Cash and cash equivalents at end of period
|
|
$
|
24,334
|
|
|
$
|
13,874
|
|
September 30, 2012
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross Unrealized Losses
|
|
Fair Market Value
|
|
|||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
||||||||
Cash
|
|
$
|
1,853
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,853
|
|
Money market funds
|
|
14,577
|
|
|
—
|
|
|
—
|
|
|
14,577
|
|
||||
Commercial paper
|
|
|
7,904
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,904
|
|
Total cash and cash equivalents
|
|
|
24,334
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agencies
|
|
|
23,884
|
|
|
|
51
|
|
|
|
(1
|
)
|
|
|
23,934
|
|
Municipal securities
|
|
|
6,046
|
|
|
|
32
|
|
|
|
(1
|
)
|
|
|
6,077
|
|
Commercial paper
|
|
|
7,507
|
|
|
|
2
|
|
|
|
—
|
|
|
|
7,509
|
|
Corporate debt securities
|
|
|
18,215
|
|
|
|
61
|
|
|
|
(1
|
)
|
|
|
18,275
|
|
Total marketable investments
|
|
|
55,652
|
|
|
|
146
|
|
|
|
(3
|
)
|
|
|
55,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term investment in auction rate securities
|
|
|
1,200
|
|
|
|
—
|
|
|
|
(150
|
)
|
|
|
1,050
|
|
Total cash, cash equivalents, marketable investments and long-term investments
|
|
$
|
81,186
|
|
|
$
|
146
|
|
|
$
|
(153
|
)
|
|
$
|
81,179
|
|
December 31, 2011
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross Unrealized Losses
|
|
Fair Market Value
|
|
|||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
||||||||
Cash
|
|
$
|
2,153
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,153
|
|
Money market funds
|
|
7,318
|
|
|
—
|
|
|
—
|
|
|
7,318
|
|
||||
Commercial paper
|
|
|
4,549
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,549
|
|
Total cash and cash equivalents
|
|
|
14,020
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government notes
|
|
|
3,655
|
|
|
|
10
|
|
|
|
—
|
|
|
|
3,665
|
|
U.S. government agencies
|
|
|
41,535
|
|
|
|
44
|
|
|
|
(14
|
)
|
|
|
41,565
|
|
Municipal securities
|
|
|
6,091
|
|
|
|
44
|
|
|
|
(1
|
)
|
|
|
6,134
|
|
Commercial paper
|
|
|
4,747
|
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
4,747
|
|
Corporate debt securities
|
|
|
18,574
|
|
|
|
15
|
|
|
|
(34
|
)
|
|
|
18,555
|
|
Total marketable investments
|
|
|
74,602
|
|
|
|
114
|
|
|
|
(50
|
)
|
|
|
74,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term investment in auction rate securities
|
|
|
3,900
|
|
|
|
—
|
|
|
|
(873
|
)
|
|
|
3,027
|
|
Total cash, cash equivalents, marketable investments and long-term investments
|
|
$
|
92,522
|
|
|
$
|
114
|
|
|
$
|
(923
|
)
|
|
$
|
91,713
|
|
|
Amount
|
|
||
Due in less than one year
|
|
$
|
35,073
|
|
Due in 1 to 5 years
|
|
|
28,626
|
|
Due in 5 to 10 years
|
|
|
—
|
|
Due in greater than 10 years
|
|
|
1,050
|
|
|
$
|
64,749
|
|
●
|
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.
|
●
|
Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.
|
●
|
Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
|
September 30, 2012
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
|||||||
Cash equivalents:
|
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
|
$
|
14,577
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
14,577
|
|
Commercial paper
|
|
|
—
|
|
|
|
7,904
|
|
|
|
—
|
|
|
|
7,904
|
|
Short-term marketable investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agencies
|
|
|
—
|
|
|
|
23,934
|
|
|
|
—
|
|
|
|
23,934
|
|
Municipal securities
|
|
|
—
|
|
|
|
6,077
|
|
|
|
—
|
|
|
|
6,077
|
|
Commercial paper
|
|
|
—
|
|
|
|
7,509
|
|
|
|
—
|
|
|
|
7,509
|
|
Corporate debt securities
|
|
|
—
|
|
|
|
18,275
|
|
|
|
—
|
|
|
|
18,275
|
|
Long-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale auction rate securities
|
|
|
—
|
|
|
|
—
|
|
|
|
1,050
|
|
|
|
1,050
|
|
Total assets at fair value
|
|
$
|
14,577
|
|
|
$
|
63,699
|
|
|
$
|
1,050
|
|
|
$
|
79,326
|
|
December 31, 2011
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
|||||||
Cash equivalents:
|
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
|
$
|
7,318
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
7,318
|
|
Commercial paper
|
|
|
—
|
|
|
|
4,549
|
|
|
|
—
|
|
|
|
4,549
|
|
Short-term marketable investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government notes
|
|
|
—
|
|
|
|
3,665
|
|
|
|
—
|
|
|
|
3,665
|
|
U.S. government agencies
|
|
|
—
|
|
|
|
41,565
|
|
|
|
—
|
|
|
|
41,565
|
|
Municipal securities
|
|
|
—
|
|
|
|
6,134
|
|
|
|
—
|
|
|
|
6,134
|
|
Commercial paper
|
|
|
—
|
|
|
|
4,747
|
|
|
|
—
|
|
|
|
4,747
|
|
Corporate debt securities
|
|
|
—
|
|
|
|
18,555
|
|
|
|
—
|
|
|
|
18,555
|
|
Long-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale auction rate securities
|
|
|
—
|
|
|
|
—
|
|
|
|
3,027
|
|
|
|
3,027
|
|
Total assets at fair value
|
|
$
|
7,318
|
|
|
$
|
79,215
|
|
|
$
|
3,027
|
|
|
$
|
89,560
|
|
Amount
|
||||
Balance at December 31, 2011
|
$ | 3,027 | ||
Total gains and losses included in other comprehensive loss
|
723 | |||
Settlements
|
(2,700 | ) | ||
Balance at September 30, 2012
|
$ | 1,050 |
|
September 30, 2012
|
|
|
December 31, 2011
|
|
|||
Raw materials
|
|
$
|
8,077
|
|
|
$
|
6,587
|
|
Finished goods
|
|
|
4,400
|
|
|
|
4,142
|
|
Total
|
|
$
|
12,477
|
|
|
$
|
10,729
|
|
Purchase price paid
|
|
$
|
5,091
|
|
Assets (liabilities acquired)
|
|
|
|
|
Inventory
|
|
|
1,552
|
|
Customer relationship intangible assets
|
|
|
2,510
|
|
Other identified intangible assets
|
780
|
|||
Goodwill
|
|
|
1,339
|
|
Deferred service revenue
|
|
|
(780
|
)
|
Accrued warranty liability
|
|
|
(310
|
)
|
Total
|
|
$
|
5,091
|
|
|
September 30, 2012
|
|
||||||||||
|
Gross Carrying
Amount
|
|
|
Accumulated
Amortization
Amount
|
|
|
Net
Carrying
Amount
|
|
||||
Patent sublicense
|
$
|
1,218
|
$
|
896
|
$
|
322
|
||||||
Technology sublicense
|
|
538
|
|
|
538
|
|
|
—
|
|
|||
Customer relationship intangible related to acquisition
|
2,510
|
335
|
2,175
|
|||||||||
Other identified intangible assets related to acquisition
|
780
|
401
|
379
|
|||||||||
Goodwill
|
|
|
1,339
|
|
|
|
—
|
|
|
|
1,339
|
|
Total
|
|
$
|
6,385
|
|
|
$
|
2,170
|
|
|
$
|
4,215
|
|
|
December 31, 2011
|
|
||||||||||
|
Gross Carrying
Amount
|
|
|
Accumulated
Amortization
Amount
|
|
|
Net
Carrying
Amount
|
|
||||
Patent sublicense
|
|
$
|
1,218
|
|
|
$
|
793
|
|
|
$
|
425
|
|
Technology sublicense
|
|
|
538
|
|
|
|
517
|
|
|
|
21
|
|
Total
|
|
$
|
1,756
|
|
|
$
|
1,310
|
|
|
$
|
446
|
|
Fiscal Year Ending December 31,
|
|
Amount
|
|
|
2012 (remainder)
|
|
$
|
310
|
|
2013
|
|
|
696
|
|
2014
|
|
|
696
|
|
2015
|
|
|
569
|
|
2016
|
|
|
558
|
|
Thereafter
|
|
|
47
|
|
Total
|
|
$
|
2,876
|
|
Amount
|
||||
Beginning Balance – December 31, 2011
|
$ | 1,121 | ||
Add: Accruals for warranties issued during the period
|
2,414 | |||
Add: Warranties assumed with business acquisition
|
310 | |||
Less: Settlements made during the period
|
(2,599 | ) | ||
Ending Balance –September 30, 2012
|
$ | 1,246 |
|
September 30
|
|
||||||
|
2012
|
|
2011
|
|
||||
Beginning Balance
|
|
$
|
5,838
|
|
|
$
|
6,765
|
|
Add: Payments received
|
|
|
9,335
|
|
|
6,332
|
|
|
Add: Contract revenue assumed with business acquisition
|
|
|
780
|
|
|
|
—
|
|
Less: Revenue recognized
|
|
|
(8,359
|
)
|
|
|
(7,024
|
)
|
Ending Balance
|
|
$
|
7,594
|
|
|
$
|
6,073
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|||||||||||
|
September 30,
|
|
|
September 30,
|
|
|||||||||||
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|||||
Cost of revenue
|
|
$
|
169
|
|
|
$
|
179
|
|
|
$
|
480
|
|
|
$
|
505
|
|
Sales and marketing
|
|
|
177
|
|
|
|
210
|
|
|
|
476
|
|
|
|
625
|
|
Research and development
|
|
|
126
|
|
|
|
184
|
|
|
|
419
|
|
|
|
524
|
|
General and administrative
|
|
|
337
|
|
|
|
321
|
|
|
|
959
|
|
|
|
1,451
|
|
Total stock-based compensation expense
|
|
$
|
809
|
|
|
$
|
894
|
|
|
$
|
2,334
|
|
|
$
|
3,105
|
|
Shares
|
||||
Stock options
|
898 | |||
Restricted stock Units
|
148 | |||
Performance stock units
|
42 | * | ||
Total
|
1,088 |
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|||||||||||
|
September 30,
|
|
|
September 30,
|
|
|||||||||||
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|||||
Options to purchase common stock
|
|
|
3,910
|
|
|
|
3,990
|
|
|
|
3,680
|
|
|
|
3,619
|
|
Restricted stock units
|
|
|
132
|
|
|
|
56
|
|
|
|
79
|
|
|
|
62
|
|
Performance stock units
|
16
|
—
|
|
14
|
—
|
|
||||||||||
Employee stock purchase plan shares
|
|
|
30
|
|
|
|
30
|
|
|
|
52
|
|
|
|
51
|
|
Total
|
|
|
4,088
|
|
|
|
4,076
|
|
|
|
3,825
|
|
|
|
3,732
|
|
|
● |
Executive Summary. This section provides a general description and history of our business, a brief discussion of our product lines and the opportunities, trends, challenges and risks we focus on in the operation of our business.
|
|
●
|
Critical Accounting Policies and Estimates. This section describes the key accounting policies that are affected by critical accounting estimates.
|
|
●
|
Results of Operations. This section provides our analysis and outlook for the significant line items on our Consolidated Statements of Operations.
|
|
●
|
Liquidity and Capital Resources. This section provides an analysis of our liquidity and cash flows, as well as a discussion of our commitments.
|
|
● |
Continuing to expand our product offerings ─ both through internal development and sourcing from other vendors.
|