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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Revenue [1] $ 17,579 $ 18,557 $ 52,953 $ 59,853
Cost of revenue [2] 4,239 5,343 14,000 18,199
Gross profit 13,340 13,214 38,953 41,654
Operating expenses:        
Research and development 8,052 7,152 23,398 22,085
Sales and marketing 4,998 4,883 15,878 17,534
General and administrative 4,586 5,081 15,526 15,638
Restructuring and other charges 632 557 1,320 2,271
Lease exit and related benefit 0 0 (454) 0
Total operating expenses 18,268 17,673 55,668 57,528
Operating loss (4,928) (4,459) (16,715) (15,874)
Other income (expenses):        
Interest income, net 72 116 270 353
Equity in net loss of Napster investment (737) 0 (737) (1,097)
Other income (expenses), net (112) (50) (195) (289)
Total other income (expenses), net (777) 66 (662) (1,033)
Loss from continuing operations before income taxes (5,705) (4,393) (17,377) (16,907)
Income tax expense 272 139 708 954
Net loss from continuing operations (5,977) (4,532) (18,085) (17,861)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent 0 198 0 717
Net loss $ (5,977) $ (4,334) $ (18,085) $ (17,144)
Income (Loss) from Continuing Operations, Per Basic Share $ (0.16) $ (0.12) $ (0.48) $ (0.48)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share 0.00 0.00 0.00 0.02
Basic net income (loss) per share (USD per share) (0.16) (0.12) (0.48) (0.46)
Income (Loss) from Continuing Operations, Per Diluted Share (0.16) (0.12) (0.48) (0.48)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share 0.00 0.00 0.00 0.02
Diluted net income (loss) per share (USD per share) $ (0.16) $ (0.12) $ (0.48) $ (0.46)
Shares used to compute basic net income (loss) per share 37,618 37,200 37,549 37,112
Shares used to compute diluted net income (loss) per share 37,618 37,200 37,549 37,112
Comprehensive income (loss):        
Unrealized investment holding gains (losses), net of reclassification adjustments   $ 0 $ 0 $ 10
Foreign currency translation adjustments, net of reclassification adjustments   562 (1,530) 1,802
Total other comprehensive income (loss) $ (325) 562 (1,530) 1,812
Net loss (5,977) (4,334) (18,085) (17,144)
Comprehensive loss (6,302) (3,772) (19,615) (15,332)
License and product revenue        
Revenue 5,827 6,873 17,770 23,677
Cost of revenue 1,523 2,163 4,743 6,683
Service revenue        
Revenue 11,752 11,684 35,183 36,176
Cost of revenue $ 2,716 $ 3,180 $ 9,257 $ 11,516
[1] Quarters ended September 30, Components of Revenue2018 2017License Fees5,827 6,873Service Revenue11,752 11,684Net Revenue17,579 18,557 Nine Months Ended September 30, Components of Revenue2018 2017License Fees$17,770 $23,677Service Revenue35,183 36,176Net Revenue$52,953 $59,853
[2] Quarters ended September 30, Components of Cost of Revenue2018 2017License Fees1,523 2,163Service Revenue2,716 3,180Net Revenue Costs4,239 5,343 Nine Months Ended September 30, Components of Cost of Revenue2018 2017License Fees$4,743 $6,683Service Revenue9,257 11,516Net Revenue Costs$14,000 $18,199