Summary Of Operations And Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

Summary Of Operations And Significant Accounting Policies [Abstract]

Summary Of Stock-Based Compensation Expense Related To Employee Stock Options

The following table summarizes stock-based compensation expense related to employee stock options under ASC 718-10 included in Company’s Statements of Operations for the three months ended March 31, 2013 and 2012:

	Three Months Ended
	March 31,
	2013		2012
Cost of revenue	$	420	$	314
Product development expense		870		609
Sales and marketing expense		746		552
General and administrative expense		1,015		680
Total stock based compensation included in operating expenses	$	3,051	$	2,155

Weighted Average Assumptions Of Fair Value Options Using Black-Scholes Option-Pricing Model

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	Three Months Ended
	March 31,
	2013		2012
Dividend yield		0.0%			0.0%
Risk-free interest rate		0.88%	0.81%	-	0.87%
Expected life (in years)		5.0			5.0
Historical volatility		58.65%	60.29%	-	60.81%

Summary Of Stock Option Activity And Weighted Average Exercise Prices

A summary of the Company’s stock option activity and weighted average exercise prices follows:

		Weighted
		Average
	Options	Exercise Price
Options outstanding at December 31, 2012	9,841,479	$	11.06
Options granted	310,300		13.37
Options exercised	(124,943)		7.76
Options cancelled	(243,793)		13.92
Options outstanding at March 31, 2013	9,783,043		11.11
Options exercisable at March 31, 2013	3,494,350	$	6.62

Summary Of Status Of Nonvested Shares

A summary of the status of the Company’s nonvested shares as of December 31, 2012, and changes during the three months ended March 31, 2013 is as follows:

		Weighted
		Average Grant-
	Options	Date Fair Value
Nonvested Shares at December 31, 2012	6,621,251	$	6.84
Granted	310,300		6.68
Vested	(399,065)		3.81
Cancelled	(243,793)		7.16
Nonvested Shares at March 31, 2013	6,288,693	$	7.00

Reconciliation Of Shares Used In Calculating Basic And Diluted Earnings Per Share

A reconciliation of shares used in calculating basic and diluted earnings per share follows:

	Three Months Ended
	March 31,
	2013	2012
Basic	55,864,045	54,419,498
Effect of assumed exercised options	—	1,970,231
Diluted	55,864,045	56,389,729

Summary Of Financial Information By Segment

Summarized financial information by segment for the three months ended March 31, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate		Business		Consumer
Revenue:
Hosted services – Business	$	36,144	$	—	$	36,144	$	—
Hosted services – Consumer		3,620		—				3,620
Professional services		2,732		—		2,732		—
Total revenue		42,496		—		38,876		3,620
Cost of revenue		10,134		—		9,536		598
Sales and marketing		14,478		—		13,206		1,272
Amortization of intangibles		224		—		224		—
Unallocated corporate expenses		18,259		18,259		—		—
Operating income (loss)	$	(599)	$	(18,259)	$	15,910	$	1,750

Summarized financial information by segment for the three months ended March 31, 2012, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows:

	Consolidated		Corporate		Business		Consumer
Revenue:
Hosted services – Business	$	31,240	$	—	$	31,240	$	—
Hosted services – Consumer		3,848		—		—		3,848
Professional services		1,671		—		1,671		—
Total revenue		36,759		—		32,911		3,848
Cost of revenue		7,923		—		7,368		555
Sales and marketing		11,089		—		9,489		1,600
Amortization of intangibles		77		—		77		—
Unallocated corporate expenses		12,782		12,782		—		—
Operating income (loss)	$	4,888	$	(12,872)	$	15,977	$	1,693

Revenues Attributable To Domestic And Foreign Operations

Revenues attributable to domestic and foreign operations for the three months ended March 31, 2013 and 2012, follows:

	March 31,
	2013		2012
United States	$	30,085	$	28,156
United Kingdom		6,984		4,876
Other countries		5,427		3,727
Total revenue	$	42,496	$	36,759

Long-Lived Assets By Geographic Region

Long-lived assets by geographic region follows:

	March 31, 2013		December 31, 2012
United States	$	35,445	$	35,711
Israel		24,213		23,750
Australia		10,437		10,361
United Kingdom		2,497		2,600
Total long-lived assets	$	72,592	$	72,422

Changes In Carrying Amount Of Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2013 are as follows:

	Total		Business		Consumer
Balance as of December 31, 2012	$	32,645	$	24,621	$	8,024
Adjustments to goodwill:
Engage acquisition (see Note 3)		79		79		—
Balance as of March 31, 2013	$	32,724	$	24,700	$	8,024

The changes in the carrying amount of goodwill for the year ended December 31, 2012 are as follows:

	Total		Business		Consumer
Balance as of December 31, 2011	$	24,090	$	16,066	$	8,024
Adjustments to goodwill:
Engage acquisition		6,073		6,073		—
LookIO acquisition		2,405		2,405		—
Contingent earnout payments (see Note 3)		77		77		—
Balance as of December 31, 2012	$	32,645	$	24,621	$	8,024

Summary Of Intangible Assets

Intangible assets are summarized as follows (see Note 3):

Acquired Intangible Assets

	As of March 31, 2013
			Weighted
	Gross		Average
	Carrying		Amortization		Accumulated
	Amount		Period		Amortization
Amortizing intangible assets:
Technology	$	18,533	3.8	years	$	6,099
Customer relationships		5,061	3.5	years		2,650
Trade names		725	2.7	years		668
Non-compete agreements		486	1.2	years		440
Patents		475	11.0	years		156
Other		285	3.0	years		239
Total	$	25,565			$	10,252

	As of December 31, 2012
			Weighted
	Gross		Average
	Carrying		Amortization		Accumulated
	Amount		Period		Amortization
Amortizing intangible assets:
Technology	$	18,533	3.8	years	$	5,904
Customer relationships		5,061	3.5	years		2,485
Trade names		725	2.7	years		644
Non-compete agreements		486	1.2	years		421
Patents		475	11.0	years		145
Other		235	3.0	years		235
Total	$	25,515			$	9,834