x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the Quarterly Period Ended September 30, 2012
|
|
OR
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
|
Delaware
|
94-3282005
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer o
|
Accelerated filer x
|
Non-accelerated filer o
(Do not check if a smaller reporting company)
|
Smaller reporting company o
|
Page
|
|||
Part I. Financial Information
|
|
||
Item 1.
|
3
|
||
3
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|||
4 | |||
5
|
|||
6
|
|||
7
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|||
Item 2.
|
23
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||
Item 3.
|
29
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||
Item 4.
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30
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||
Part II. Other Information
|
30
|
||
Item 1.
|
30
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||
Item 1A.
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30 | ||
Item 4.
|
39
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||
Item 6.
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39
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||
40
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|||
41
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September 30,
2012
|
December 31,
2011
|
|||||||
(Unaudited)
|
(1) | |||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 23,507 | $ | 22,159 | ||||
Short-term investments
|
28,080 | 29,743 | ||||||
Accounts receivable, net
|
9,785 | 10,284 | ||||||
Prepaid expenses and other current assets
|
1,565 | 1,068 | ||||||
Total current assets
|
62,937 | 63,254 | ||||||
Long-term investment
|
— | 1,111 | ||||||
Property and equipment, net
|
670 | 461 | ||||||
Goodwill
|
14,240 | 13,621 | ||||||
Purchased technology, net
|
82 | 143 | ||||||
Intangible assets, net
|
5,126 | 5,670 | ||||||
Other assets
|
940 | 736 | ||||||
Total assets
|
$ | 83,995 | $ | 84,996 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 688 | $ | 1,196 | ||||
Accrued compensation
|
2,323 | 1,676 | ||||||
Other accrued liabilities
|
4,477 | 4,491 | ||||||
Short-term deferred revenue
|
5,971 | 4,723 | ||||||
Total current liabilities
|
13,459 | 12,086 | ||||||
Long-term deferred revenue
|
139 | 489 | ||||||
Other long-term liabilities
|
1,422 | 1,086 | ||||||
Total liabilities
|
15,020 | 13,661 | ||||||
Commitments and contingencies (Note 4)
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock
|
5 | 5 | ||||||
Additional paid-in capital
|
237,984 | 233,977 | ||||||
Accumulated other comprehensive loss
|
(1,343 | ) | (1,698 | ) | ||||
Accumulated deficit
|
(167,671 | ) | (160,949 | ) | ||||
Total stockholders’ equity
|
68,975 | 71,335 | ||||||
Total liabilities and stockholders’ equity
|
$ | 83,995 | $ | 84,996 |
|
(1)
|
Derived from the December 31, 2011 audited Consolidated Financial Statements included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (“SEC”) on March 9, 2012.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenue:
|
||||||||||||||||
Services
|
$ | 14,769 | $ | 8,532 | $ | 42,278 | $ | 26,124 | ||||||||
Software and other
|
3,407 | 3,818 | 10,799 | 12,711 | ||||||||||||
Total revenue
|
18,176 | 12,350 | 53,077 | 38,835 | ||||||||||||
Cost of revenue:
|
||||||||||||||||
Cost of services
|
8,815 | 7,917 | 28,696 | 21,334 | ||||||||||||
Cost of software and other
|
312 | 458 | 1,142 | 1,295 | ||||||||||||
Total cost of revenue
|
9,127 | 8,375 | 29,838 | 22,629 | ||||||||||||
Gross profit
|
9,049 | 3,975 | 23,239 | 16,206 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
1,643 | 1,577 | 5,121 | 4,458 | ||||||||||||
Sales and marketing
|
3,789 | 5,954 | 14,908 | 16,282 | ||||||||||||
General and administrative
|
2,897 | 3,074 | 8,661 | 9,300 | ||||||||||||
Amortization of intangible assets and other
|
397 | 330 | 1,155 | 536 | ||||||||||||
Total operating expenses
|
8,726 | 10,935 | 29,845 | 30,576 | ||||||||||||
Income (loss) from operations
|
323 | (6,960 | ) | (6,606 | ) | (14,370 | ) | |||||||||
Interest income and other, net
|
93 | 96 | 227 | 371 | ||||||||||||
Income (loss) from continuing operations, before income taxes
|
416 | (6,864 | ) | (6,379 | ) | (13,999 | ) | |||||||||
Income tax provision
|
118 | 264 | 353 | 295 | ||||||||||||
Income (loss) from continuing operations, after income taxes
|
298 | (7,128 | ) | (6,732 | ) | (14,294 | ) | |||||||||
Income (loss) from discontinued operations, after income taxes
|
(7 | ) | 18 | 10 | 3 | |||||||||||
Net income (loss)
|
$ | 291 | $ | (7,110 | ) | $ | (6,722 | ) | $ | (14,291 | ) | |||||
Basic and diluted earnings per share:
|
||||||||||||||||
Basic net income (loss) from continuing operations
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Diluted net income (loss) from continuing operations
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Basic net income (loss) per share
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Diluted net income (loss) per share
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Shares used in computing basic net income (loss) per share
|
48,707 | 48,326 | 48,571 | 48,267 | ||||||||||||
Shares used in computing diluted net income (loss) per share
|
50,326 | 48,326 | 48,571 | 48,267 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Comprehensive income (loss)
|
$ | 446 | $ | (7,402 | ) | $ | (6,367 | ) | $ | (14,668 | ) |
Nine Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Operating Activities:
|
||||||||
Net loss
|
$ | (6,722 | ) | $ | (14,291 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation
|
404 | 324 | ||||||
Realized gain on investments
|
— | (7 | ) | |||||
Amortization of premiums and discounts on investments
|
446 | 1,212 | ||||||
Amortization of purchased technology
|
62 | 62 | ||||||
Amortization of intangible assets and other
|
1,155 | 536 | ||||||
Stock-based compensation
|
2,938 | 2,811 | ||||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable, net
|
649 | (981 | ) | |||||
Prepaid expenses and other current assets
|
(533 | ) | 442 | |||||
Other long-term assets
|
(187 | ) | (136 | ) | ||||
Accounts payable
|
(507 | ) | 71 | |||||
Accrued compensation
|
646 | 1,087 | ||||||
Other accrued liabilities
|
(123 | ) | 896 | |||||
Other long-term liabilities
|
320 | 366 | ||||||
Deferred revenue
|
849 | 2,346 | ||||||
Net cash used in operating activities
|
(603 | ) | (5,262 | ) | ||||
Investing Activities:
|
||||||||
Purchases of property and equipment
|
(503 | ) | (231 | ) | ||||
Acquisition of business, net of cash acquired
|
(1,327 | ) | (8,419 | ) | ||||
Purchases of investments
|
(33,317 | ) | (42,073 | ) | ||||
Sales of investments
|
2,400 | 14,006 | ||||||
Maturities of investments
|
33,560 | 39,665 | ||||||
Net cash provided by investing activities
|
813 | 2,948 | ||||||
Financing Activities:
|
||||||||
Proceeds from issuances of common stock
|
1,069 | 450 | ||||||
Net cash provided by financing activities
|
1,069 | 450 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
69 | (162 | ) | |||||
Net increase (decrease) in cash and cash equivalents
|
1,348 | (2,026 | ) | |||||
Cash and cash equivalents at beginning of period
|
22,159 | 18,561 | ||||||
Cash and cash equivalents at end of period
|
$ | 23,507 | $ | 16,535 | ||||
Supplemental schedule of cash flow information:
|
||||||||
Income taxes paid
|
$ | 99 | $ | 101 |
As of September 30, 2012
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
Cash
|
$ | 9,492 | $ | — | $ | — | $ | 9,492 | ||||||||
Money market funds
|
14,015 | — | — | 14,015 | ||||||||||||
Certificates of deposits
|
1,880 | — | (1 | ) | 1,879 | |||||||||||
Commercial paper
|
4,244 | — | (1 | ) | 4,243 | |||||||||||
Corporate notes and obligations
|
19,243 | 8 | (2 | ) | 19,249 | |||||||||||
Municipal Securities
|
202 | — | — | 202 | ||||||||||||
U.S. Government agency securities
|
2,507 | — | — | 2,507 | ||||||||||||
$ | 51,583 | $ | 8 | $ | (4 | ) | $ | 51,587 | ||||||||
|
||||||||||||||||
Classified as:
|
||||||||||||||||
|
||||||||||||||||
Cash and cash equivalents
|
$ | 23,507 | $ | — | $ | — | $ | 23,507 | ||||||||
Short-term investments
|
28,076 | 8 | (4 | ) | 28,080 | |||||||||||
|
$ | 51,583 | $ | 8 | $ | (4 | ) | $ | 51,587 |
As of December 31, 2011
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
Cash
|
$ | 6,461 | $ | — | $ | — | $ | 6,461 | ||||||||
Money market funds
|
15,698 | — | — | 15,698 | ||||||||||||
Certificates of deposits
|
480 | — | — | 480 | ||||||||||||
Commercial paper
|
6,295 | — | (6 | ) | 6,289 | |||||||||||
Corporate notes and obligations
|
15,283 | 1 | (16 | ) | 15,268 | |||||||||||
U.S. government agency securities
|
7,707 | — | (1 | ) | 7,706 | |||||||||||
Auction-rate security
|
1,400 | — | (289 | ) | 1,111 | |||||||||||
|
$ | 53,324 | $ | 1 | $ | (312 | ) | $ | 53,013 | |||||||
|
||||||||||||||||
Classified as:
|
||||||||||||||||
|
||||||||||||||||
Cash and cash equivalents
|
$ | 22,159 | $ | — | $ | — | $ | 22,159 | ||||||||
Short-term investments
|
29,765 | 1 | (23 | ) | 29,743 | |||||||||||
Long-term investment
|
1,400 | — | (289 | ) | 1,111 | |||||||||||
|
$ | 53,324 | $ | 1 | $ | (312 | ) | $ | 53,013 |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Due within one year
|
$ | 27,024 | $ | 29,503 | ||||
Due within two years
|
1,056 | 240 | ||||||
Due after three years
|
— | 1,111 | ||||||
$ | 28,080 | $ | 30,854 |
|
•
|
Level 1 - Quoted prices in active markets for identical assets or liabilities.
|
|
•
|
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
|
•
|
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.
|
As of September 30, 2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Money market funds
|
$ | 14,015 | $ | — | $ | — | $ | 14,015 | ||||||||
Certificates of deposits
|
1,879 | — | — | 1,879 | ||||||||||||
Commercial paper
|
— | 4,243 | — | 4,243 | ||||||||||||
Corporate notes and obligations
|
— | 19,249 | — | 19,249 | ||||||||||||
Municipal securities
|
— | 202 | — | 202 | ||||||||||||
U.S. government agency securities
|
— | 2,507 | — | 2,507 | ||||||||||||
Total
|
$ | 15,894 | $ | 26,201 | $ | — | $ | 42,095 |
As of December 31, 2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Money market funds
|
$ | 15,698 | $ | — | $ | — | $ | 15,698 | ||||||||
Certificates of deposits
|
480 | — | — | 480 | ||||||||||||
Commercial paper
|
— | 6,289 | — | 6,289 | ||||||||||||
Corporate notes and obligations
|
— | 15,268 | — | 15,268 | ||||||||||||
U.S. government agency securities
|
— | 7,706 | — | 7,706 | ||||||||||||
Auction-rate security
|
— | — | 1,111 | 1,111 | ||||||||||||
Total
|
$ | 16,178 | $ | 29,263 | $ | 1,111 | $ | 46,552 |
Three Months Ended September 30,
|
||||||||
2012
Auction-Rate
Security
|
2011
Auction-Rate
Security
|
|||||||
Beginning balance at June 30
|
$ | — | $ | 2,659 | ||||
Transfer into Level 3
|
— | — | ||||||
Sales
|
— | — | ||||||
Total gains/(losses):
|
||||||||
Included in interest income and other, net
|
— | — | ||||||
Included in other comprehensive loss
|
— | (34 | ) | |||||
Ending balance at September 30
|
$ | — | $ | 2,625 |
Nine Months Ended September 30,
|
||||||||
2012
Auction-Rate
Security
|
2011
Auction-Rate
Security
|
|||||||
Beginning balance at December 31
|
$ | 1,111 | $ | 2,667 | ||||
Transfer into Level 3
|
— | — | ||||||
Sales
|
(1,400 | ) | — | |||||
Total gains/(losses):
|
||||||||
Included in interest income and other, net
|
— | — | ||||||
Included in other comprehensive income (loss)
|
289 | (42 | ) | |||||
Ending balance at September 30
|
$ | — | $ | 2,625 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Stock Option Plan:
|
||||||||||||||||
Risk-free interest rate
|
0.5 | % | 0.6 | % | 0.6 | % | 1.3 | % | ||||||||
Expected term
|
3.7 years
|
3.6 years
|
3.7 years
|
3.2 years
|
||||||||||||
Volatility
|
57.0 | % | 58.5 | % | 57.5 | % | 54.0 | % | ||||||||
Expected dividend
|
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Weighted average fair value (per share)
|
$ | 1.35 | $ | 1.65 | $ | 1.18 | $ | 2.52 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Employee Stock Purchase Plan:
|
||||||||||||||||
Risk-free interest rate
|
0.2 | % | 0.1 | % | 0.2 | % | 0.1 | % | ||||||||
Expected term
|
0.5 years
|
0.5 years
|
0.5 years
|
0.5 years
|
||||||||||||
Volatility
|
71.7 | % | 45.9 | % | 71.7 | % | 45.9 | % | ||||||||
Expected dividend
|
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Weighted average fair value (per share)
|
$ | 0.98 | $ | 1.20 | $ | 0.98 | $ | 1.20 |
Three Months Ended September 30, |
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Stock option compensation expense recognized in:
|
||||||||||||||||
Cost of services
|
$ | 73 | $ | 51 | $ | 239 | $ | 156 | ||||||||
Cost of software and other
|
3 | 7 | 24 | 12 | ||||||||||||
Research and development
|
248 | 197 | 810 | 539 | ||||||||||||
Sales and marketing
|
95 | 144 | 368 | 445 | ||||||||||||
General and administrative
|
402 | 519 | 1,346 | 1,632 | ||||||||||||
$ | 821 | $ | 918 | $ | 2,787 | $ | 2,784 | |||||||||
ESPP compensation expense recognized in:
|
||||||||||||||||
Cost of services
|
$ | 13 | $ | 10 | $ | 33 | $ | 14 | ||||||||
Cost of software and other
|
— | — | 1 | — | ||||||||||||
Research and development
|
4 | 5 | 9 | 7 | ||||||||||||
Sales and marketing
|
1 | 1 | 4 | 3 | ||||||||||||
General and administrative
|
3 | 3 | 6 | 3 | ||||||||||||
$ | 21 | $ | 19 | $ | 53 | $ | 27 | |||||||||
RSU expense recognized in:
|
||||||||||||||||
General and administrative
|
$ | 70 | $ | — | $ | 99 | $ | — | ||||||||
Stock-based compensation expense included in total costs and expenses:
|
||||||||||||||||
$ | 911 | $ | 937 | $ | 2,939 | $ | 2,811 |
Number of Shares
|
Weighted Average Exercise Price per Share
|
Weighted Average Remaining Contractual Term (years)
|
Aggregate Intrinsic Value (in ‘000’s)
|
|||||||||||||
Outstanding options at the beginning of the period
|
10,789,590 | $ | 2.99 | 4.25 | $ | 8 | ||||||||||
Granted
|
696,650 | 3.19 | ||||||||||||||
Exercised
|
(414,081 | ) | 2.37 | |||||||||||||
Forfeited
|
(616,171 | ) | 2.89 | |||||||||||||
Outstanding options at the end of the period
|
10,455,988 | $ | 3.00 | 3.50 | $ | 14,744 | ||||||||||
Options vested and expected to vest
|
10,365,893 | $ | 2.99 | 3.48 | $ | 14,675 | ||||||||||
Outstanding and exercisable at the end of the period
|
7,263,479 | $ | 2.90 | 2.69 | $ | 10,475 |
Three Months
|
Nine Months
|
|||||||||||||||
Ended
|
Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net income (loss)
|
$ | 291 | $ | (7,110 | ) | $ | (6,722 | ) | $ | (14,291 | ) | |||||
Denominator:
|
||||||||||||||||
Weighted-average common shares outstanding
|
48,707 | 48,326 | 48,571 | 48,267 | ||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Weighted average common stock equivalents from assumed exercise of stock options and RSU
|
1,619 | — | — | — | ||||||||||||
Shares used in computing diluted net income (loss) per share
|
50,326 | 48,326 | 48,571 | 48,267 | ||||||||||||
Basic net income (loss) from continuing operations
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Diluted net income (loss) from continuing operations
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Basic net income (loss) from discontinued operations
|
$ | (0.00 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||
Diluted net income (loss) from discontinued operations
|
$ | (0.00 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||
Basic net income (loss) per share
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Diluted net income (loss) per share
|
$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) |
Severance(1)
|
Facilities(2)
|
Total
|
||||||||||
Restructuring obligations, December 31, 2011
|
$ | 2 | $ | 208 | $ | 210 | ||||||
Restructuring costs incurred in 2012
|
172 | — | 172 | |||||||||
Cash payments
|
(174 | ) | (208 | ) | (382 | ) | ||||||
Restructuring obligations, September 30, 2012
|
$ | 0 | $ | 0 | $ | 0 |
|
(1)
|
Severance costs include those expenses related to severance pay and related employee benefit obligations.
|
|
(2)
|
Facilities costs include obligations under non-cancelable leases for facilities that we no longer occupy, as well as penalties associated with early terminations of leases and disposal of fixed assets. No sublease income has been included because subleasing is not permitted under the terms of our lease.
|
September 30, 2012
|
December 31, 2011
|
|||||||
Accrued expenses
|
$ | 3,325 | $ | 2,910 | ||||
Restructuring expenses
|
— | 210 | ||||||
Customer deposits
|
813 | 1,160 | ||||||
Other accrued liabilities
|
339 | 211 | ||||||
Total other accrued liabilities
|
$ | 4,477 | $ | 4,491 |
|
Amount
|
Amortization
|
||||
(in thousands)
|
Period
|
|||||
|
||||||
Accounts receivable
|
$ | 151 |
|
|||
Prepaid expenses and other current assets
|
46 |
|
||||
Total current assets
|
197 | |||||
Property and equipment, net
|
108 | |||||
Other assets
|
28 | |||||
Acquired assets
|
333 | |||||
Other accrued liabilities
|
(106 | ) | ||||
Short-term deferred revenue
|
(49 | ) |
|
|||
Assumed liabilities
|
(155 | ) |
|
|||
Net assets assumed
|
178 | |||||
Identifiable intangible assets:
|
|
|||||
Non-compete
|
70 |
36 months
|
||||
Customer base
|
460 |
60 months
|
||||
|
||||||
Goodwill
|
619 |
|
||||
Total purchase consideration
|
1,327 |
|
||||
Other current asset
|
23 | |||||
Total cash consideration
|
$ | 1,350 |
|
Amount
(in thousands)
|
Amortization
Period
|
|||
Accounts receivable
|
$ | 5 |
|
||
Prepaid expenses
|
6 |
|
|||
Accrued liabilities
|
(1 | ) | |||
Deferred revenue
|
(491 | ) |
|
||
Net liabilities assumed
|
(481 | ) |
|
||
Identifiable intangible assets:
|
|
||||
Technology
|
4,910 |
66 months
|
|||
Trade/product name
|
310 |
66 months
|
|||
Non-compete
|
160 |
72 months
|
|||
Customer base
|
80 |
30 months
|
|||
|
|
||||
Goodwill
|
3,440 |
|
|||
Total purchase consideration
|
8,419 |
|
|||
Other current asset
|
81 | ||||
Total cash consideration
|
$ | 8,500 |
Non-compete
|
Partner Relationships
|
Customer Base
|
Technology Rights
|
Tradenames
|
Indefinite Life Intangibles
|
Total
|
||||||||||||||||||||||
As of September 30, 2012
|
||||||||||||||||||||||||||||
Gross carrying value
|
$ | 594 | $ | 145 | $ | 641 | $ | 5,330 | $ | 760 | $ | 250 | $ | 7,720 | ||||||||||||||
Accumulated amortization
|
(407 | ) | (138 | ) | (206 | ) | (1,451 | ) | (392 | ) | — | (2,594 | ) | |||||||||||||||
Net carrying value
|
$ | 187 | $ | 7 | $ | 435 | $ | 3,879 | $ | 368 | $ | 250 | $ | 5,126 | ||||||||||||||
As of December 31, 2011
|
||||||||||||||||||||||||||||
Gross carrying value
|
$ | 523 | $ | 145 | $ | 181 | $ | 5,330 | $ | 760 | $ | 250 | $ | 7,189 | ||||||||||||||
Accumulated amortization
|
(335 | ) | (108 | ) | (109 | ) | (702 | ) | (265 | ) | — | (1,519 | ) | |||||||||||||||
Net carrying value
|
$ | 188 | $ | 37 | $ | 72 | $ | 4,628 | $ | 495 | $ | 250 | $ | 5,670 |
Fiscal Year
|
Amount
|
|||
2012 (October-December)
|
$ | 351 | ||
2013
|
1,321 | |||
2014
|
1,091 | |||
2015
|
1,069 | |||
2016
|
1,028 | |||
2017
|
16 | |||
Total
|
$ | 4,876 | ||
Weighted average remaining useful life
|
4.0 years
|
As of September 30,
|
As of December 31,
|
|||||||
2012
|
2011
|
|||||||
Purchased technology
|
$ | 350 | $ | 350 | ||||
Accumulated amortization
|
(268 | ) | (207 | ) | ||||
Total purchased technology, net
|
$ | 82 | $ | 143 |
Fiscal Year
|
Amount
|
|||
2012 (October-December)
|
$ | 22 | ||
2013
|
60 | |||
Total
|
$ | 82 | ||
Weighted average remaining useful life
|
1.0 years
|
Three Months
|
Nine Months
|
|||||||||||||||
Ended
|
Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenue:
|
||||||||||||||||
Services
|
81 | % | 69 | % | 80 | % | 67 | % | ||||||||
Software and other
|
19 | 31 | 20 | 33 | ||||||||||||
Total revenue
|
100 | 100 | 100 | 100 | ||||||||||||
Costs of revenue:
|
||||||||||||||||
Cost of services
|
48 | 64 | 54 | 55 | ||||||||||||
Cost of software and other
|
2 | 4 | 2 | 3 | ||||||||||||
Total cost of revenue
|
50 | 68 | 56 | 58 | ||||||||||||
Gross profit
|
50 | 32 | 44 | 42 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
9 | 13 | 10 | 11 | ||||||||||||
Sales and marketing
|
21 | 48 | 28 | 42 | ||||||||||||
General and administrative
|
16 | 25 | 16 | 24 | ||||||||||||
Amortization of intangible assets and other
|
2 | 3 | 2 | 1 | ||||||||||||
Total operating expenses
|
48 | 89 | 56 | 78 | ||||||||||||
Income (loss) from operations
|
2 | (57 | ) | (12 | ) | (36 | ) | |||||||||
Interest and other income, net
|
1 | 1 | 0 | 1 | ||||||||||||
Income (loss) from continuing operations, before income taxes
|
2 | (56 | ) | (13 | ) | (35 | ) | |||||||||
Income tax provision
|
1 | 2 | 1 | 1 | ||||||||||||
Income (loss) from continuing operations, after income taxes
|
3 | (58 | ) | (13 | ) | (36 | ) | |||||||||
Income (loss) from discontinued operations, after income taxes
|
(0 | ) | 0 | 0 | 0 | |||||||||||
Net income (loss)
|
2 | % | (58 | ) % | (13 | )% | (36 | )% |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
In thousands, except percentages
|
2012
|
2011
|
$
Change
|
%
Change
|
2012
|
2011
|
$
Change
|
%
Change
|
||||||||||||||||||||||||
Services
|
$ | 14,769 | $ | 8,532 | $ | 6,237 | 73 | % | $ | 42,278 | $ | 26,124 | $ | 16,154 | 62 | % | ||||||||||||||||
Software and other
|
3,407 | 3,818 | (411 | ) | (11 | )% | 10,799 | 12,711 | (1,912 | ) | (15 | )% | ||||||||||||||||||||
Total revenue
|
$ | 18,176 | $ | 12,350 | $ | 5,826 | 47 | % | $ | 53,077 | $ | 38,835 | $ | 14,242 | 37 | % |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
In thousands, except percentages
|
2012
|
2011
|
$
Change
|
%
Change
|
2012
|
2011
|
$
Change
|
%
Change
|
||||||||||||||||||||||||
Cost of services
|
$ | 8,815 | $ | 7,917 | $ | 898 | 11 | % | $ | 28,696 | $ | 21,334 | $ | 7,362 | 35 | % | ||||||||||||||||
Cost of software and other
|
312 | 458 | (146 | ) | (32 | )% | 1,142 | 1,295 | (153 | ) | (12 | ) % | ||||||||||||||||||||
Total cost of revenue
|
$ | 9,127 | $ | 8,375 | $ | 752 | 9 | % | $ | 29,838 | $ | 22,629 | $ | 7,209 | 32 | % |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
In thousands, except percentages
|
2012
|
2011
|
$
Change
|
%
Change
|
2012
|
2011
|
$
Change
|
%
Change
|
||||||||||||||||||||||||
Research and development
|
$ | 1,643 | $ | 1,577 | $ | 66 | 4 | % | $ | 5,121 | $ | 4,458 | $ | 663 | 15 | % | ||||||||||||||||
Sales and marketing
|
$ | 3,789 | $ | 5,954 | $ | (2,165 | ) | (36 | )% | $ | 14,908 | $ | 16,282 | $ | (1,374 | ) | (8 | ) % | ||||||||||||||
General and administrative
|
$ | 2,897 | $ | 3,074 | $ | (177 | ) | (6 | )% | $ | 8,661 | $ | 9,300 | $ | (639 | ) | (7 | )% |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
In thousands, except percentages
|
2012
|
2011
|
$
Change
|
%
Change
|
2012
|
2011
|
$
Change
|
%
Change
|
||||||||||||||||||||||||
Amortization of intangible assets and other
|
$ | 397 | $ | 330 | $ | 67 | 20 | % | $ | 1,155 | $ | 536 | $ | 619 | 115 | % |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
In thousands, except percentages
|
2012
|
2011
|
$
Change
|
%
Change
|
2012
|
2011
|
$
Change
|
%
Change
|
||||||||||||||||||||||||
Interest income and other, net
|
$ | 93 | $ | 96 | $ | (3 | ) | (3 | ) % | $ | 227 | $ | 371 | $ | (144 | ) | (39 | ) % |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
In thousands, except percentages
|
2012
|
2011
|
$
Change
|
%
Change
|
2012
|
2011
|
$
Change
|
%
Change
|
||||||||||||||||||||||||
Income tax provision
|
$ | 118 | $ | 264 | $ | (146 | ) | (55 | )% | $ | 353 | $ | 295 | $ | 58 | 20 | % |
|
●
|
Our expectations and beliefs regarding future financial results;
|
|
●
|
Our expectations regarding channel partners, renewal of contracts with these partners and the anticipated timing and magnitude of revenue from these partners;
|
|
●
|
Our expectations regarding sales of our software products, our ability to source, develop and distribute additional software products and our efforts to market services to buyers of our software products;
|
|
●
|
Our ability to successfully monetize customers who receive free versions of our software;
|
|
●
|
Our expectations regarding our ability to deliver premium technology services efficiently and through arrangements that are profitable;
|
|
●
|
Our ability to offer subscriptions to our services in a profitable manner;
|
|
●
|
Our ability to execute effectively in the small business market;
|
|
●
|
Our ability to hire, train, manage and retain service delivery agents in a home-based model and to continue to enhance the flexibility of our staffing model;
|
|
●
|
Our ability to match staffing levels with service volume in a cost-effective manner;
|
|
●
|
Our ability to manage contract labor as a component of our workforce;
|
|
●
|
Our ability to manage sales costs in programs where we are responsible for sales;
|
|
●
|
Our beliefs and expectations regarding the introduction of new services and products, including additional software products and service offerings for devices beyond the computer;
|
|
●
|
Our ability to successfully offer services to the small business market;
|
|
●
|
Our ability to successfully license our service delivery platform;
|
|
●
|
Our beliefs and expectations regarding new business opportunities;
|
|
●
|
Our expectations regarding revenues, cash flows and expenses, including cost of revenue, sales and marketing, research and development efforts, and administrative expenses;
|
|
●
|
Our assessment of seasonality, mix of revenue, and other trends for our business;
|
|
●
|
Our ability to deliver projected levels of profitability;
|
|
●
|
Our expectations regarding the costs and other effects of acquisition and disposition transactions;
|
|
●
|
Our expectations regarding unit volumes, pricing and other factors in the market for computers and other devices, and the effects of such factors on our business;
|
|
●
|
Our expectations regarding the results of pending, threatening or future litigation;
|
|
●
|
The assumptions underlying our Critical Accounting Policies and Estimates, including our assumptions regarding revenue recognition; assumptions used to estimate the fair value of share-based compensation; assumptions regarding the impairment of goodwill and intangible assets; and expected accounting for income taxes; and
|
|
●
|
The expected effects of the adoption of new accounting standards.
|
|
●
|
Maintain our current relationships, and develop new relationships, with channel partners on acceptable terms or at all;
|
|
●
|
Reach consumers and small businesses directly in a cost-effective fashion;
|
|
●
|
Hire, train, manage and retain our home-based technology specialists and enhance the flexibility of our staffing model in a cost-effective fashion;
|
|
●
|
Manage contract labor efficiently and effectively;
|
|
●
|
Meet anticipated growth targets;
|
|
●
|
Match staffing levels with demand for services;
|
|
●
|
Manage our business to provide services and sales on an efficient basis in order to maintain profitability;
|
|
●
|
Offer subscriptions to our services in a profitable manner;
|
|
●
|
Successfully introduce new, and adapt our existing, services and products for consumers and small businesses;
|
|
●
|
Grow our software business using existing and new monetization models;
|
|
●
|
Respond effectively to changes in the online advertising markets in which we participate;
|
|
●
|
Respond effectively to competition;
|
|
●
|
Operate effectively in the small business market;
|
|
●
|
Successfully license our service delivery platform;
|
|
●
|
Respond to changes in macroeconomic conditions as they affect our and our channel partners’ operations;
|
|
●
|
Realize benefits of any acquisitions we make;
|
|
●
|
Adapt to changes in the markets we serve, including the proliferation of smartphones, tablets and other devices;
|
|
●
|
Adapt to changes in our industry, including consolidation;
|
|
●
|
Respond to government regulations relating to our business;
|
|
●
|
Manage and respond to present, threatened, and future litigation;
|
|
●
|
Attract and retain qualified management and employees; and
|
|
●
|
Manage our expanding operations and implement and improve our operational, financial and management controls.
|
|
●
|
Demand for our services and products;
|
|
●
|
The performance of our channel partners;
|
|
●
|
Instability or decline in the global macroeconomic climate and its effect on our and our channel partners’ operations;
|
|
●
|
Our ability to increase the efficiency of our service delivery agents;
|
|
●
|
Our ability to effectively match staffing levels with service volumes on a cost-effective basis, particularly with subscriptions, without adequate or comparable historical data for forecasting purposes;
|
|
●
|
Our ability to manage contract labor;
|
|
●
|
Our ability to manage sales costs in programs where we are responsible for sales;
|
|
●
|
Our reliance on a relatively small number of channel partners for a substantial portion of our revenue;
|
|
●
|
Our ability to attract and retain customers and channel partners;
|
|
●
|
Our ability to reach customers directly in a cost effective manner;
|
|
●
|
Our ability to serve the small business market;
|
|
●
|
Our ability to successfully license our service delivery platform;
|
|
●
|
The availability and cost-effectiveness of advertising placements for our software products and our ability to respond to changes in the online advertising markets in which we participate;
|
|
●
|
The price and mix of products and services we or our competitors offer;
|
|
●
|
The rate of expansion of our offerings and our investments therein;
|
|
●
|
Our ability to successfully monetize customers who receive free versions of our software;
|
|
●
|
Usage rates on the subscriptions we offer;
|
|
●
|
Changes in the computer and consumer electronics markets relating to unit volume, pricing and other factors, including changes driven by the growing popularity of smartphones, tablets and other new devices, and the effects of such changes on our business;
|
|
●
|
Our ability to adapt to our customers’ needs in a market space defined by frequent technological change;
|
|
●
|
Seasonal trends and changes resulting from consumer spending patterns;
|
|
●
|
The amount and timing of operating costs and capital expenditures in our business;
|
|
●
|
Diversion of management’s attention from other business concerns and disruption of our ongoing business activities as a result of acquisitions or divestitures by us;
|
|
●
|
Costs related to the defense and settlement of litigation which can also have an additional adverse impact on us because of negative publicity, diversion of management resources and other factors;
|
|
●
|
Potential losses on investments, or other losses from financial instruments we may hold that are exposed to market risk; and
|
|
●
|
The exercise of judgment by our management in making accounting decisions in accordance with our accounting policies.
|
|
●
|
Unanticipated costs and liabilities and unforeseen accounting charges or fluctuations;
|
|
●
|
Delays and difficulties in delivery of services and products;
|
|
●
|
Failure to effectively integrate or separate management information systems, personnel, research and development, marketing, sales and support operations;
|
|
●
|
Loss of key employees;
|
|
●
|
Economic dilution to gross and operating profit;
|
|
●
|
Diversion of management’s attention from other business concerns and disruption of our ongoing business;
|
|
●
|
Difficulty in maintaining controls and procedures;
|
|
●
|
Uncertainty on the part of our existing customers about our ability to operate after a transaction;
|
|
●
|
Loss of customers;
|
|
●
|
Loss of partnerships;
|
|
●
|
Inability to execute our growth plans;
|
|
●
|
Declines in revenue and increases in losses;
|
|
●
|
Failure to realize the potential financial or strategic benefits of the acquisition or divestiture; and
|
|
●
|
Failure to successfully further develop the combined or remaining technology, resulting in the impairment of amounts recorded as goodwill or other intangible assets.
|
|
●
|
Risks of product malfunction after new technology is integrated;
|
|
●
|
Risks that we may be unable to obtain or continue to obtain support, maintenance and updates from the technology supplier;
|
|
●
|
The diversion of resources from the development of our own proprietary technology; and
|
|
●
|
Our inability to generate revenue from new technology sufficient to offset associated acquisition and maintenance costs.
|
|
●
|
Laws and contractual restrictions may not adequately prevent infringement of our proprietary rights and misappropriation of our technologies or deter others from developing similar technologies; and
|
|
●
|
Policing infringement of our patents, trademarks and copyrights, misappropriation of our trade secrets, and unauthorized use of our products is difficult, expensive and time-consuming, and we may be unable to determine the existence or extent of this infringement or unauthorized use.
|
|
●
|
We may not be issued patents we may seek to protect our technology;
|
|
●
|
Competitors may independently develop similar technologies or design around any of our patents;
|
|
●
|
Patents issued to us may not be broad enough to protect our proprietary rights; and
|
|
●
|
Our issued patents could be successfully challenged.
|
|
10.1
|
Amended and Restated Support Services Agreement between Comcast and Support.com, effective as of July 5, 2012 (1)
|
|
10.2
|
Amendment Number 1 to the Amended and Restated Support Services Agreement between Comcast and Support.com, effective as of July 5, 2012 (1)
|
|
31.1
|
Chief Executive Officer Section 302 Certification
|
|
31.2
|
Chief Financial Officer Section 302 Certification
|
|
32.1
|
Statement of the Chief Executive Officer under 18 U.S.C. § 1350(2)
|
|
32.2
|
Statement of the Chief Financial Officer under 18 U.S.C. § 1350(2)
|
|
101.INS
|
XBRL INSTANCE DOCUMENT
|
|
101.SCH
|
XBRL SCHEMA DOCUMENT
|
|
101.CAL
|
XBRL CALCULATION LINKBASE DOCUMENT
|
|
101.LAB
|
XBRL LABELS LINKBASE DOCUMENT
|
|
101.DEF
|
XBRL DEFINITION LINKBASE DOCUMENT
|
|
101.PRE
|
XBRL PRESENTATION LINKBASE DOCUMENT
|
(1)
|
Confidential treatment has been requested for portions of this exhibit.
|
(2)
|
The certifications filed as Exhibits 32.1 and 32.2 are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and are not to be incorporated by reference into any filing of the Company under the Securities Exchange Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof irrespective of any general incorporation by reference language contained in any such filing, except to the extent that the registrant specifically incorporates it by reference.
|
November 2, 2012
|
SUPPORT.COM, INC.
|
|
By:
|
/s/ SHELLY SCHAFFER
|
|
Shelly Schaffer
|
||
Chief Financial Officer and
|
||
Executive Vice President of Finance and
|
||
Administration
|
||
|
Amended and Restated Support Services Agreement between Comcast and Support.com, effective as of July 5, 2012 (1)
|
|
Amendment Number 1 to the Amended and Restated Support Services Agreement between Comcast and Support.com, effective as of July 5, 2012 (1)
|
|
Chief Executive Officer Section 302 Certification
|
|
Chief Financial Officer Section 302 Certification
|
|
Statement of the Chief Executive Officer under 18 U.S.C. § 1350(2)
|
|
Statement of the Chief Financial Officer under 18 U.S.C. § 1350(2)
|
|
101.INS
|
XBRL INSTANCE DOCUMENT
|
|
101.SCH
|
XBRL SCHEMA DOCUMENT
|
|
101.CAL
|
XBRL CALCULATION LINKBASE DOCUMENT
|
|
101.LAB
|
XBRL LABELS LINKBASE DOCUMENT
|
|
101.DEF
|
XBRL DEFINITION LINKBASE DOCUMENT
|
|
101.PRE
|
XBRL PRESENTATION LINKBASE DOCUMENT
|
(1)
|
Confidential treatment has been requested for portions of this exhibit.
|
(2)
|
The certifications filed as Exhibits 32.1 and 32.2 are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and are not to be incorporated by reference into any filing of the Company under the Securities Exchange Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof irrespective of any general incorporation by reference language contained in any such filing, except to the extent that the registrant specifically incorporates it by reference.
|
|
12.1
|
Term.
|
|
12.2
|
Termination for Convenience by Comcast.
|
|
12.3
|
Termination for Convenience by Support.com.
|
|
12.4
|
Termination for Breach.
|
|
12.5
|
Termination Upon Change of Control.
|
|
12.6
|
Effect of Termination.
|
|
12.7
|
No Other Early Termination Fees.
|
If to Support.com, Inc.
|
||
Support.com, Inc.
|
||
1900 Seaport Blvd.
|
||
Redwood City, CA 94040
|
||
Attn.: Chief Executive Officer
|
||
With a copy to:
|
||
Support.com, Inc.
|
||
1900 Seaport Blvd.
|
||
Redwood City, CA 94040
|
||
Attn.: Legal Department
|
||
If to Comcast:
|
||
Comcast Cable Communications Management, LLC
|
||
One Comcast Center
|
||
Philadelphia, PA 19103
|
||
Attn.: VP and General Manager, Xfinity Signature Support Program
|
||
With a copy to:
|
||
Comcast Cable Communications, LLC
|
||
One Comcast Center
|
||
Philadelphia, PA 19103
|
||
Attn.: Cable Law Department – Operations
|
COMCAST CABLE COMMUNICATIONS | SUPPORT.COM, INC. | ||||
MANAGEMENT, LLC | |||||
By: | By: | ||||
Name: | Name: | ||||
Title: | Title: | ||||
Date: | Date: |
2.
|
Scope of Services
|
|
a.
|
Support.com created (and hosts part of) a customized a Comcast Xfinity Signature Support micro-site (“Micro-site”) subject to Comcast’s prior approval, including, without limitation, conforming to Comcast Xfinity branding guidelines as may be modified from time-to-time. Support.com agrees that Intellectual Property rights in original web pages and other original materials developed solely for use on the Micro-site will be owned by Comcast; for the avoidance of doubt, such Intellectual Property rights do not include any rights in third-party components, or Support.com’s pre-existing Intellectual Property rights. Upon any termination of the Agreement or of this Program Description, Support.com agrees to grant to Comcast a perpetual, royalty-free, nonexclusive license in the Territory to any Support.com Intellectual Property Rights in the Micro-site in order for Comcast to continue operation and maintenance of the Micro-site at Comcast’s expense for the XSS program; for the avoidance of doubt, such license does not include rights in third-party materials except to the extent Support.com has a pre-existing right, without additional expense, to sublicense such third-party rights to Comcast.
|
|
b.
|
[Deleted.]
|
|
c.
|
Such Micro-site shall have online ordering and processing capability for one-time incident Services orders using credit cards.
|
|
d.
|
Such Micro-site shall provide the ability to view basic account/usage/order history data and ticket histories as made available from Comcast and Support.com internal systems.
|
|
a.
|
Support.com shall rebrand its existing desktop agent for XSS offerings (the “Desktop Agent”)
|
|
b.
|
Such Desktop Agent shall permit remote scanning of potential PC issues with little or no end-user involvement
|
|
c.
|
The Desktop Agent shall permit access by the Customer to Support.com’s XSS agents
|
|
d.
|
The Desktop Agent will include proactive and self-help tools as additional value add to Customers
|
|
e.
|
In addition, in such manner and at such times as the parties may agree, such Desktop Agent shall enable:
|
|
1.
|
Customized proactive messaging to end users to demonstrate on-going value
|
|
2.
|
Chat functionality
|
|
3.
|
Connection to sales of XSS offerings (remote subscriptions, one-time incident offerings, extended warranty, etc.)
|
|
-
|
The parties shall mutually agree upon scripts and other procedural steps Support.com will take to ensure appropriate upsell and cross-sell efforts are made by Support.com with respect to the extended warranty plans and other XSS offerings.
|
|
4.
|
Access to basic account/usage/order history using the Desktop Agent
|
|
5.
|
Access to tutorials on PC issues as well as Comcast services
|
|
6.
|
Access to Support.com and other 3rd party software offered to XSS customers.
|
|
a.
|
Support.com shall establish, train and maintain a sales capability to support XSS offerings (including but not limited to remote subscriptions, one-time remote services offerings, on-site services, and equipment protection plan (“EPP”) offerings) until June 29, 2012.
|
|
b.
|
Staffing for such sales group shall be maintained in accordance to the service level agreements outlined in Exhibit D (“Service Level Terms”) until April 1, 2012; after this date Exhibit D service levels will no longer apply to the Support.com Sales Center and staffing of the sales group by Support.com will be reduced in mutually agreed steps until closure of Support.com’s Sales Center on June 29, 2012. In addition to selling proactively, Support.com’s sales group shall be equipped to take pre-qualified leads from Comcast sales channels as specified in the VPRD until closure of the Support.com Sales Center on June 29, 2012.
|
|
a.
|
To the extent Support.com makes sales that are to be billed to the Customer using the Comcast biller, the Parties’ respective obligations shall be as specified in the VPRD.
|
|
b.
|
To the extent Comcast makes sales of Services using the Comcast biller or any other method, the Parties’ respective obligations shall be as specified in the VPRD.
|
3.
|
Services
|
|
3.1.
|
Minimum Requirements for Delivery of Remote Services
|
|
3.1.1
|
Computer must be running Windows XP, Vista, Windows 7 or Mac OS 10.5 or above.
|
|
3.1.2
|
Computers must have adequate available RAM for basic service as specified in the VPRD. For any services requiring installation of software or connections to peripheral devices, the manufacturer’s minimum system requirements also must be met.
|
|
3.1.3
|
For all services that entitle support for peripherals (i.e. printer, camera, digital music players as specified in the VPRD):
|
|
·
|
The Customer must have all necessary cables for attaching the computer to the peripheral
|
|
·
|
The peripheral must be in good working order
|
|
·
|
Peripherals must be unboxed with all parts readily available.
|
|
3.1.4
|
Customer must have the required login information to gain Internet access and administrator level access to the computer and devices for which the services are being provided.
|
|
3.1.5
|
Customer must have working High-Speed Internet access in their residence. As an entitled component of every subscription and incident-based Service, Support.com will perform its standard connectivity troubleshooting steps if needed to determine if connectivity is available to the Customer home.
|
|
3.1.6
|
Services must be provided to residential Customers for personal use pursuant to a Comcast Terms of Service, which includes mutually agreed acceptable use policies, as provided in the VPRD.
|
|
3.1.7
|
In the case of Services that are subscriptions, Customer computers must have and maintain valid and up-to-date anti-virus software installed during the subscription period. Support.com may deny service to any Customer who does not comply with these requirements after the initial set-up and activation of the subscription.
|
|
3.2.
|
Service SKUs
|
|
3.2.1.
|
Remote Support Subscription Offerings
|
|
(a)
|
|
i.
|
Notwithstanding any other provision of the Agreement, Support.com will not charge a new activation/set-up fee upon reinstatement of any Customer whose entitlement to a Subscription Service with such a fee was previously suspended for non-payment, or due to an accidental processing error, or to facilitate the Customer’s change of address to a new primary service address (each a “Suspended Customer”), provided that the Suspended Customer’s reinstatement occurs within ninety (90) days of suspension to the same subscription SKU or one to which the Customer could have upgraded or downgraded to without an activation/set-up fee had the Customer remained in good standing during the period.
|
|
ii.
|
For the avoidance of doubt, activation/set-up fees, and TF, for transfers between subscriptions shall continue to be handled as set forth in Section 3.2.1, and 6.1, respectively, of the Program Description.
|
|
(b)
|
If and to the extent a Termination Fee (“TF”) under the Agreement was due to Support.com with respect to the Suspended Customer, such Termination Fee will be waived by Support.com upon reinstatement of the Suspended Customer on the condition that such reinstatement occurs within ninety (90) days of suspension and Support.com is promptly notified of reinstatement of entitlement for the Suspended Customer using the following process:
|
|
i.
|
Within twelve (12) business days following the end of each calendar month, Comcast shall provide Support with a TF Re-Connected Adjustment Report covering all TF reinstatements for that calendar month. Support.com shall review the Report and shall inform Comcast within five (5) business days whether it agrees with or disputes the requested credit. After the Parties agree to a credit adjustment, Support.com shall generate a credit memo within five (5) business days, and shall submit the credit memo to Comcast.
|
|
(c)
|
Suspended Customers from whom Comcast has collected fee for the periods of suspension will be included in the calculation of average monthly fees due to Support.com as provided in Section 3.2.1 (“Remote Support Subscription Offerings”) of the Program Description.
|
|
(d)
|
For the purposes of calculating TF under the Agreement due in relation to reinstated Suspended Customers who subsequently early terminate their subscription, the months excluded from payment of monthly fees as provided in subsection (c) above are not included in calculating the month of the subscription for TF purposes. For example, a reinstated Suspended Customer who subsequently early terminates in what would have been Month 6 of the original subscription service, but who was suspended for two months of that period prior to reinstatement, would be treated as terminating in Month 4 of the subscription for TF purposes. For the avoidance of doubt, Comcast will not be liable for a TF for a Customer who changes primary address unless the total length of the subscription, across both addresses, is subject to TF. For example, in the case of a Customer who has a subscription at address A for one month and at address B for an additional 45 days and then cancels, Comcast will be liable for a TF for a 3rd month cancellation.
|
Subscription SKU name
|
Support.com Fees
|
Description
|
Wireless Networking Support
|
$*** per month per active subscriber for one home network, plus activation/setup fee of $*** (unless activation/setup is performed by Comcast’s on-site provider)
|
Helps users set up and manage a secured wireless network and connect up to five (5) devices, and support any wireless network issues they encounter.
Members get a discount on remote and onsite incident services.
|
Wireless Gateway (“WG”) Support
|
$*** per month per active subscriber for one WG network; No activation/set-up fees apply to WG Support. In the event Comcast chooses to begin charging WG Customers a retail activation/set-up fee, the Parties will meet and negotiate in good faith a wholesale share of such fee(s) payable to Support.com.
|
Helps users set up and manage a secured wireless network using the WG device and connect up to five (5) devices, and support any wireless network issues they encounter.
Members get a discount on remote and onsite incident services.
|
One-Month Wireless Networking Support with Professional Installation
|
One-time $*** per Customer receiving on-site professional wireless network installation through Comcast, for so long as Comcast includes a thirty (30) day entitlement to the Wireless Networking Support SKU services provided by Support.com with such on-site professional wireless network installations; No activation/set-up fees otherwise due in relation to this SKU as long as the persons providing the on-site professional wireless network installation complete the required aspects of the on-site installation for the Customer before entitlement to this SKU commences.
|
A thirty (30) day entitlement with the same features as the Wireless Networking Support subscription SKU.
If, during the thirty (30) day entitlement period, the Customer upgrades to a different XSS subscription, the Support.com fee shall be the fee for such other subscription under Section 3.2 of the Program Description and the $*** fee described in this section shall not be charged separately. If the $*** fee has already been charged to Comcast, Support.com shall credit such amount back to Comcast.
|
Computer Maintenance
|
$*** per month per active subscriber for up to four (4) supported computers; this SKU may not be proactively sold to new subscribers after July 5, 2012; provided, however, that this SKU may be sold if requested by the Customer until December 31, 2012 after which no further sales of this SKU are permitted
|
Includes automated support through Desktop Agent, plus license for Cosmos for each supported computer. Members get a discount on remote and onsite incident services.
Support.com will continue to provide Services in relation to this SKU during the Term to Customers who are active subscribers to this SKU as of December 31, 2012, after which time no new subscribers may be added using this SKU. These pre-existing subscribers as of December 31, 2012 will continue to be entitled to have up to five (5) live assisted tune-ups in total per year upon request. Comcast will continue to pay fees to Support.com in relation to active subscribers during the Term as provided in Section 5 (“Payment Terms; Taxes”) of the Agreement.
|
Maintenance and Networking Bundle
|
$*** per month for coverage of one home network and up to four (4) supported computers + activation/set-up fee of $***; a $*** per PC additional one-time charge applies when an anti-virus (“AV”) install is required.
|
Ccoverage of one home network and up to four (4) supported computers ; installation of anti-virus (“AV”) where required.
This SKU will be replaced by the Wireless Networking and Computer Performance SKU on July 5, 2012 and will not be sold to new subscribers after that date. Subscribers to this service active prior to this time will continue to be entitled to have up to five (5) live assisted tune-ups in total per year upon request at no additional charge.
|
Wireless Networking and Computer Performance
|
$*** per month per active subscriber for coverage of one home network and up to four (4) supported computers + activation/set-up fee of $***
|
A bundled offering of the Wireless Networking subscription SKU and license to the Support.com End-User Software Cosmos.
For Customers who are active subscribers to this SKU as of July 5, 2012, Cosmos software will be offered on a proactive self –install basis to pre-existing subscribers at any future point of service delivery. These pre-existing subscribers will continue to be entitled to have up to five (5) live assisted tune-ups in total per year upon request at no additional charge. Software will be communicated to Comcast customers as Computer Performance Tool
Members get a discount on remote and onsite incident services.
|
Help Desk
|
$*** per month per active subscriber + activation/set-up fee of $***; this is a trial SKU which will be sold in a pilot by up to 24 sales agents for one month only. After the one-month trial period, any further sales of this SKU will be only by mutual agreement of the Parties.
|
Includes the Wireless Networking and Computer Performance SKU, plus software troubleshooting and configuration, new PC set-up, peripheral installation and troubleshooting, Internet security services, smart phone setup, and training materials (maximum 30 minutes on areas within program scope); for the avoidance of doubt, this SKU does NOT include malware removal. Cosmos software will be communicated to Comcast customers as Computer Performance Tool
Members get a discount on remote and onsite incident services.
|
Complete Home Support
|
$*** per month for up to *** supported computers + activation/set-up fee of $***
|
Includes the Help Desk SKU subscription Services plus entitlement to Internet Security and Virus Removal SKU Services as needed. Subscription requires Customer to maintain approved active anti-virus software upon activation/set-up. For customers who are active subscribers to this SKU as of July 5, 2012, Cosmos software will be offered on a proactive self-install basis to any pre-existing subscribers atg subscribers at any future point of service delivery. Software will be communicated to Comcast customers as Computer Performance Tool
Members get a discount on remote and onsite incident services.
|
Computer Performance Tool STAND-ALONE SUPPORT.COM END-USER SOFTWARE LICENSE
|
$*** per month per active subscriber; entitled subscribers will be provided email notification of license key and download location; no installation services
|
Stand-alone (not bundled with any other Services) distribution of a licensed copy of the Comcast-branded Cosmos product (a Support.com End-User Software product) to a Customer on monthly subscription terms pursuant to procedures and processes as mutually agreed and reflected in the VPRD.
|
|
3.2.2.
|
Remote Support Incident Offerings
|
Incident Offer SKU
|
Support.com Fees
|
Description
|
Home Networking
|
$*** (or $*** for subscription Customers who qualify for discount); additional devices beyond *** connected, $*** per device (or $*** for subscription Customers who qualify for discount)
|
Setup, configuration, and connection of wireless/wired router setup of cup to *** devices and secured (30 day guarantee to Customer in accordance with agreed refund procedures)
|
Internet Security and Virus Removal
|
$*** (or $*** for subscription Customers who qualify for discount)
|
Remove known viruses, spyware, malware and root kits on the PC and show how to protect the computer from malicious programs in the future
|
Help Desk
|
$*** (or $*** for
|
Assist Customer with one (1) incident of:
-Installation of a supported peripheral
|
subscription Customers |
-Use of a supported mobile device
|
|
who qualify for |
-Installation of a supported software application
|
|
discount) |
-New PC Setup
|
|
-PC Tune-Up
|
||
-Training on supported application or tasks
|
||
-Email support
|
||
-General Help
|
|
5. Service Delivery Process
|
|
5.1
|
Service Delivery Requirements
|
|
Support.com shall:
|
|
a.
|
Maintain a service delivery capability with sufficient staffing to meet SLAs set forth in Exhibit D (“Service Level Terms”) based on quarterly forecasts
|
|
b.
|
In such manner and at such times as the Parties may agree, configure Support.com’s SDMS to support XSS service delivery business processes and technology platform (standard operating procedures, ticketing, post-service delivery emails) Comcast offerings, scope of delivery and desired Customer experience
|
|
c.
|
Brand Service delivery scripts and “leave behind” reporting as specified by Comcast, and include Comcast-approved messaging.
|
|
d.
|
Manage subscription and Customer entitlement prior to Service delivery based on data provided by Comcast
|
|
e.
|
Provide access to Services 24 hours a day, 7 days per week.
|
|
Support.com shall:
|
|
a.
|
Complete and periodically maintain such reasonable security audits of screen share and desktop tools as the Parties may agree.
|
|
b.
|
Maintain commercial license agreements for all third-party tools utilized in service delivery process by Support.com; provided, however, that Comcast shall maintain commercial license agreements for all third-party tools (e.g. Grand Slam, Norton Suite) required and provided by Comcast to Support.com for use in service delivery process.
|
|
a.
|
Comcast’s selected on-site provider(s) shall integrate its work order systems with Support.com’s SDMS through a mutually agreed integration plan using the SDMS application program interface (“API”).
|
|
b.
|
Support.com shall receive work order status updates from on-site provider through the SDMS API.
|
|
c.
|
Comcast’s selected on-site provider shall integrate its scheduling system with SDMS through a mutually agreed plan using the API.
|
|
d.
|
Support.com shall be initial contact with XSS subscribers regarding on-site delivery scheduling and work order status.
|
|
·
|
Support.com mean time to answer calls and other agreed Key Performance Indicators as set forth in the KPI Dashboard provided pursuant to Exhibit D (“Service Level Term”)
|
|
·
|
Customer satisfaction reporting for the Services
|
|
·
|
Reported Customer survey results
|
|
·
|
Transaction Volume Reporting (Weekly Summary) (Daily data and cumulative)
|
|
·
|
Actual monthly Key Performance Threshold metrics as specified in Paragraph 6.1 relating to the Performance Fee.
|
|
·
|
All other mutually agreed upon reporting as outlined in the VPRD
|
|
5.3
|
Service Delivery Requirements
|
|
5.3.1
|
Entitlement Process. For all remote subscription service calls, technician will:
|
|
●
|
Obtain Customer information to look up subscription in Support.com system and confirm account status (i.e. not suspended or terminated) until an API into the Comcast’s biller is available. Once an API is available, the API into the Biller will be used to confirm account status and entitlement.
|
|
●
|
Use Comcast biller or Grand Slam as backup in case Customer subscription account status cannot be determined in Support.com system until such time as a Biller API is available
|
|
●
|
Once account status confirmed and remote connection has been established, technician will validate that connected machine is entitled – if not, technician will remove existing PC entitlement and replace with new PC entitlement, as appropriate.
|
|
5.3.2
|
Call handling for Customers with pre-existing On-site Service orders. In the case either a technician receives a call from a Customer regarding an on-site service already ordered, the technician will:
|
|
●
|
Obtain Customer information in order to look up the order in the Support.com system
|
|
●
|
Attempt to answer Customer questions or concerns based on the information in the on-site services order (note that this should include the most up-to-date information from the on-site services provider via real-time link)
|
|
●
|
Transfer the Customer directly to the on-site services provider in the event the Support.com technician is not able to address the Customer issue
|
|
5.3.3
|
Call handling for Customers with pre-existing EPPs. In the case either a technician receives a call from a Customer regarding an EPP already ordered, the technician will transfer the Customer directly to the third-party EPP vendor’s call center.
|
6.
|
Pricing and Fees
|
|
6.1.
|
Service Delivery Wholesale Pricing; Termination Fees
|
Home Network
|
WG Support Wireless Networking & Computer Performance/ Maint & Net. Bundle
|
HelpDesk
|
Complete Home/ Help Desk Plus
|
||||||
Month
|
TF
|
Month
|
TF
|
Month
|
TF
|
Month
|
TF
|
Month
|
TF
|
1
|
$***
|
1
|
$***
|
1
|
$***
|
1
|
$***
|
1
|
$***
|
2
|
$***
|
2
|
$***
|
2
|
$***
|
2
|
$***
|
2
|
$***
|
3
|
$***
|
3
|
$***
|
3
|
$***
|
3
|
$***
|
3
|
$***
|
4
|
$***
|
4
|
$***
|
4
|
$***
|
4
|
$***
|
4
|
$***
|
5
|
$***
|
5
|
$***
|
5
|
$***
|
5
|
$***
|
5
|
$***
|
6
|
$***
|
6
|
$***
|
6
|
$***
|
6
|
$***
|
6
|
$***
|
|
6.2.
|
Service Sales Fees
|
Offering
|
One-Time Sales Fee
|
|
Remote Services
|
Subscription
|
***% of the standard (non-promotional) retail price for one month of the SKU (i.e., ***% times the standard monthly retail subscription price) on Qualifying Subscriptions*
|
Incidents
|
***% of the standard (non-promotional) retail price of the SKU net of standard XSS subscriber discounts, if any, applicable to the SKU
|
|
Other Services
|
On-site Services
|
***% of the standard (non-promotional) retail price of the SKU net of standard XSS subscriber discounts, if any, applicable to the SKU
|
EPP
|
***% of the standard (non-promotional) retail price for one month of the SKU (i.e., *** times of the standard monthly retail subscription price)
|
7.
|
Agent Availability Fees [Deleted.]
|
8.
|
Relationship Governance
|
|
8.1.
|
Roles and Responsibilities
|
|
8.2.
|
Change Control
|
10.
|
Program Term and Termination
|
11.
|
Schedule, Milestones and Deliverables
|
12.
|
[Intentionally Deleted.]
|
13.
|
Misdirected Calls
|
|
(a)
|
Effective July 5, 2012, for each Misdirected Call as defined below in excess of the Misdirected Call Threshold, Support.com will invoice and Comcast will pay pursuant to Section 12 ("Payment Terms; Taxes") of the Agreement a Misdirected Call Fee equal to $*** per minute of handle time for Support.com’s handling of the Misdirected Call. For the purposes of this Section 3, the "Misdirected Call Threshold" means ***% of the total number of CBCSS calls handled by Support.com delivery lines in a calendar month as measured by Support.com’s call tickets for the period.
|
|
(b)
|
For the purposes of this Section, "Misdirected Calls" shall be measured based on call tickets and reported as described in subsection (c) below.
|
|
i.
|
A "Misdirected Call" is a call transferred by a Comcast agent (including without limitation Comcast’s third-party vendors) to a Support.com delivery agent for a Customer who is not already entitled to receive delivery of Services.
|
|
ii.
|
For the avoidance of doubt, "Misdirected Calls" do not include calls from XSS Customers who mistakenly call the wrong number; provided, however, that if Support.com can establish that persons not entitled to receive delivery of XSSServices were instructed to call a service delivery number by a Comcast agent (including without limitation Comcast’s third-party agents), Comcast agrees to promptly take commercially reasonable steps to stop such behavior by its agents; and provided further that if such steps do not prove effective in changing Comcast agent behavior, the Parties will discuss in good faith the inclusion of such calls in the Misdirected Calls calculation.
|
|
(c)
|
Support.com will provide Comcast, on a monthly basis, a Misdirected Call report for the prior week's activity, which report is subject to audit by Comcast. For each Misdirected Call during the period, Support.com will provide the following:
|
|
i.
|
Ninjato ticket number
|
|
ii.
|
Date and time of the ticket
|
|
iii.
|
Call duration
|
|
iv.
|
Comcast customer account number if it exists (a Misdirected Call might involve a party who is not yet an XSS Customer) and if the number is readily available to the Support.com agent at the time of the Misdirected Call
|
|
v.
|
Mutually agreed reason code
|
|
vi.
|
The Operator ID of the last Comcast agent to access the account if the Operator ID is provided by the Comcast agent or is otherwise readily available to the Support.com agent at the time of the Misdirected Call.
|
14.
|
Up-sell/Cross-Sell Training and Procedures.
|
15.
|
Call Monitoring Infrastructure
|
|
(a)
|
On or before October 1, 2011, Support.com will make available a call recording portal (“Call Portal”) that enables the audit by Comcast of randomly selected call recordings from the pool of sales and delivery calls performed by Support.com. Support.com shall not intentionally withhold any calls from the selection pool provided to Comcast for review. Call recordings are to be stored in the Call Portal for at least forty-five (45) days from the date of the recording.
|
|
(b)
|
Support.com will also provide, on or before October 1, 2011, three (3) separate dedicated phone numbers (“Live Lines”) that provide Comcast with the ability to listen to live sales and delivery calls being performed by Support.com agents.
|
|
(c)
|
Upon notice of Comcast’s review and acceptance of the Call Portal and Live Lines, not to be unreasonably withheld or delayed, Support.com will invoice Comcast a one-time fee for development of the Call Portal and Live Line infrastructure equal to $*** which Comcast will pay pursuant to Section 5 (“Payment Terms; Taxes”) of the Agreement. The Parties acknowledge that Comcast has, as of the Amended Program Description Effective Date, already accepted and paid the specified fee above for the Call Portal and Live Line infrastructure.
|
|
(d)
|
For the avoidance of doubt, the software implementation of the Call Portal as defined in Section 5(a) above shall be considered licensed to Comcast as Support.com Software during the term of this Agreement pursuant to Section 7.2 (“Support.com Software”) of the Agreement.
|
16.
|
Sales Call Survey Tool
|
17.
|
KPI Dashboard
|
|
(a)
|
On or before December 31, 2011, the Parties will complete the KPI Dashboard provided in Section 1.7 (B) of Exhibit D (“Service Level Terms”), using a template and process consistent with Comcast’s vendor management specifications as provided to Support.com on or about August 15, 2011. Support.com will be responsible for making available data feeds based on a mutually agreed technical specification that includes without limitation data format, transport mechanism, and frequency, and Comcast will integrate such data feeds into its existing dashboard system and application. Unless otherwise mutually agreed by the Parties, data feeds in relation to chat activity will not be required in this effort, and the Parties will cooperate to make chat-related data feeds available subsequently in a commercially reasonable period of time after the month in which there first are more than *** chats.
|
|
(b)
|
Upon notice of Comcast’s review and acceptance of the KPI Dashboard data feed integration, not to be unreasonably withheld or delayed, Support.com will invoice Comcast a one-time fee for development equal to $*** which Comcast will pay pursuant to Section 5 (“Payment Terms; Taxes”) of the Agreement. The Parties acknowledge that Comcast has, as of the Amended Program Description Effective Date, already accepted and paid the specified fee above for the KPI Dashboard data feed integration.
|
|
(c)
|
For the avoidance of doubt, the software implementation of the KPI Dashboard as referenced in Section 7(a) above shall be considered licensed to Comcast as Support.com Software during the term of this Agreement pursuant to Section 7.2 (“Support.com Software”) of the Agreement.
|
18.
|
Billing System Procedures and Integration
|
|
(a)
|
To improve customer experience and to reduce operational expense for both Comcast and Support.com, application programming interface (“API”) integration will be completed between Comcast and Support.com billing and back office support systems in accordance with a technical design and timeline mutually agreed by both Parties. For the avoidance of doubt, each Party will pay its own design, development, test and other costs related to the API integration effort.
|
|
(b)
|
Until such time as API integration is complete between Support.com and Comcast billing systems, Support.com will ensure proper order entry and account management for transactions handled by Support.com.
|
|
(c)
|
In the event Support.com changes a Customer’s subscription SKU in Ninjato (i.e., a new sale, upgrade, or downgrade), Support.com will also update the account in the Comcast biller to reflect this change within 48 hours of the change (e.g., add / remove $0 Personal Tech or Equipment Protection rate code, add / remove Wireless Networking Support SKU), unless prevented from doing so by biller malfunctions. Support.com will promptly escalate any biller malfunction to Comcast.
|
|
(d)
|
Support.com will endeavor to add the Comcast account number and the last Comcast agent who handled the account to all Ninjato tickets opened if and to the extent such information is made readily available. If the Comcast account number isn’t available Support.com will not sell Comcast subscription SKUs to such person.
|
|
(e)
|
Starting November 1, 2011, Comcast may perform audits to measure compliance with this Section 18 (“Billing System Procedures and Integration”) on a monthly basis and periodically as required. Support.com must correct any non-compliant records discovered through a compliance audit within 15 calendar days.
|
|
·
|
Secretarial or word processing services (normal, temporary or overtime);
|
|
·
|
Miscellaneous staff charges such as proofreading, clerical filing, printing/copy center assistance;
|
|
·
|
Local telephone expenses or office supplies;
|
|
·
|
Fax or overnight delivery charges for documents which do not warrant expedited handling.
|
|
·
|
Charges for faxes received by vendor, or those sent by vendor which do not incur long distance telephone charges.
|
|
·
|
Copies of voluminous documents that Comcast does not need, especially when a copy of a cover letter would suffice. Any large copying job should be sent to Comcast’s approved copying service provider (list provided upon request).
|
1.
|
AVAILABILITY/UPTIME FOR THE SUPPORT.COM ENVIRONMENT
|
Comcast Environment Responsibilities
|
Support.com Environment Responsibilities
|
||||
Host / manage: | Host / manage: | ||||
● | Support.com desk top agent software | ||||
● | Comcast billers and related servers wherever located (e.g., CSG, Amdocs) | ● | Support.com remote support client | ||
● | Comcast diagnostic / ticketing tools (e.g. GrandSlam, Remedy SAMS) | ● | Suite of remote diagnostic / fix tools used by Support.com agents | ||
● | User account approvals and changes for the components (e.g. GrandSlam) of the Comcast Environment | ● | Support.com product information and e-commerce web portal | ||
● | Support.com credit card payment gateway | ||||
● |
Comcast ACD, IVR and voice circuits / data links
|
● | Support.com ACD, IVR and voice circuits / data links | ||
● | Support.com CRM | ||||
● | Support.com chat client | ||||
● | All other servers, storage and networking hardware, operating systems, database management systems and operating platforms used by Support.com to support Signature Support services end to end | ||||
Plus: | Plus: | ||||
● | Support API transactions between Comcast and Support.com (when Comcast design / development complete) | ● |
Support.com Software APIs
|
SLA #
|
Area Covered
|
SLA
|
Tier
|
Severe Miss
|
1
|
Support.com Environment hosted platform availability
Measure: Uptime of the hosted elements of the Support.com Environment in production
|
***
|
***
|
***
|
2
|
Support.com remote support client connection rate Measure: Success rate of remote connection attempts from systems meeting system requirements, able to download and install the remote control software and with such software granted appropriate permissions by the Customer
|
***
|
***
|
***
|
3
|
Micro-Site availability Measure: Go to main page of Micro-site, check for last loaded object, click on other key pages of website (check for last loaded object), end. Success if full webpage loads and all operational elements on page are functional.
|
***
|
***
|
***
|
4
|
Support.com credit card payment gateway availability Measure: Uptime of Support.com’s access gateway. For the avoidance of doubt, SLA measure applies to Support.com’s implementation and systems, but does not include downtime caused by the third-party payment gateway service provider.
|
***
|
***
|
***
|
5
|
Availability of Support.com ACD, IVR, and voice / data circuits Measure: Composite average of uptime of ACD, IVR, voice / data circuits used to support Signature Support
|
***
|
***
|
***
|
SLA #
|
Area Covered
|
SLA
|
Tier
|
Severe Miss
|
1
|
Customer satisfaction survey offer rate
Measure: Percentage of XSS Customers offered customer satisfaction survey (during the Service connection or promptly thereafter by email) after receiving Services from Support.com via remote connection, excluding Customers who are not available through the direct service connection to the Customer’s PC at the time of service completion (e.g., Customers connecting only by phone who need to be transferred to Comcast or another XSS service provider, or Customers who do not call back to complete a service step)
|
***
|
***
|
***
|
2
|
Customer satisfaction survey completion rate
Measure: Percentage of XSS Customers completing customer satisfaction survey after receiving survey from Support.com
|
***
|
***
|
***
|
3
|
Customer Satisfaction/Net Promoter score
The Parties will reassess in good faith biannually beginning in March 2012 with an expectation that NPS levels should increase from present levels.
|
***
|
***
|
***
|
4
|
Inbound Call Service Level (Delivery calls)
Measure: Percentage of inbound Customer calls for a delivery agent answered within 45 seconds.
|
***
|
***
|
***
|
5
|
[Deleted]
|
***
|
***
|
***
|
6
|
Chat Service Level (Delivery)
Measure: Percentage of chat sessions initiated by Customers to which Support.com responds within 45 seconds Penalties shall apply to this SLA in the first calendar month after 5,000 delivery chats occur in a month.
|
***
|
***
|
***
|
7
|
Incident Services Refund Rate
Measure: Percentage of completed incident Services for which Customer claims and receives a Refund due to non-conforming service delivery by Support.com; the Parties will develop mutually agreed reason codes to determine if a refund is due to a non-conforming service delivery and after sixty (60) days of measuring with such codes will determine an appropriate SLA
|
***
|
***
|
***
|
8
|
MTTR for Comcast ESL tickets
Measure: MTTR for tickets from Comcast’s Executive Support Line (aka “Office of the President”) resolved (or response provided explaining why resolution not possible in timeframe) by Support.com
|
***
|
***
|
***
|
9
|
Scorecard Report
Reporting via scorecard by Support.com pursuant to Section 1.6 of this Exhibit, below, is timely made by the eighth (8th) business day following the end of each calendar month
|
***
|
***
|
***
|
10
|
Subscriber Churn
The Parties will work in good faith to determine an appropriate SLA for subscriber churn rates by January 1, 2012
|
***
|
***
|
***
|
|
2.
|
Financial Penalties.
|
Severity Level Tier
|
Number of
Failures
during
month
|
Service Level Credit to Comcast per
failure
|
Severe Miss
Penalty
|
|||||||
L |
3 or more
|
$ | *** | $ | *** | |||||
M |
1 or more
|
$ | *** | $ | *** | |||||
H |
1 or more
|
$ | *** | $ | *** |
|
3.2
|
Catastrophic Failure Penalty. A Catastrophic Failure is:
|
|
(i)
|
a Severity 1 Level Error, as defined in Paragraph 4 of this Exhibit, that affects ***% or more of Comcast System Subscribers and lasts a total of four (4) hours or more; and / or
|
|
ii)
|
a Severity 1 Level Error, as defined in Paragraph 4 of this Exhibit, that affects ***% or more of Comcast System Subscribers for any amount of time; and/or
|
iii)
|
a failure to deliver the SLA scorecard report for a calendar month required by Section 1.6 (“Reporting via Scorecard) of this Exhibit by the sixteenth (16th) business day of the following month; and/or
|
iv)
|
Inbound Delivery Call Service Level of less than ***%; and/or
|
v)
|
Customer Satisfaction/Net Promoter Score below ***.
|
|
A.
|
Root Cause Analysis: Following the resolution of a Severity Level 1 Error, within twenty-four (24) hours Support.com will supply Comcast with a documented Root Cause Analysis of what caused the Error and a summary of the response / resolution process.
|
|
B.
|
Irreversible Corrective Action (ICA): Following the resolution of a Severity Level 1 Error, within five (5) business days, Support.com will provide Comcast a documented Irreversible Corrective Action (ICA) summary.
|
|
A.
|
Root Cause Analysis: Following the resolution of a Severity Level 2 Error, within twenty-four (24) hours Support.com will supply Comcast with a documented Root Cause Analysis of what caused the Error and a summary of the response / resolution process.
|
|
B.
|
Irreversible Corrective Action (ICA): Following the resolution of a Severity Level 2 Error, within five (5) business days, Support.com will provide Comcast a documented Irreversible Corrective Action (ICA) summary.
|
|
A.
|
Root Cause Analysis: Following the resolution of a Severity Level 3 Error, within seventy-two (72) hours Support.com will supply Comcast with a documented Root Cause Analysis of what caused the Error and a summary of the response / resolution process.
|
|
B.
|
Irreversible Corrective Action (ICA): Following the resolution of a Severity Level 3 Error, within ten (10) business days, Support.com will provide Comcast a documented Irreversible Corrective Action (ICA) summary.
|
Severity
|
Description
|
Initial Call
back
Response
Time
|
Target Resolution
Time
|
Escalation Procedure
|
1
|
Critical priority
Severity Level 1 implies that the Support.com Environment or Software is not functioning or, Comcast or authorized users are unable to receive use major portions of Signature Support services.
|
***
|
***
|
Hour 1: Maintenance engineering point of contact will decide if more resources are required to work on Error. Support.com will make all necessary resources available. Project Manager and Operations Support Manager notified
If no correction within 1 hr, escalate to Support.com executive no less than VP level.
Hour 1+: Continue to work on Error on a 24 hour basis
Comcast will be notified of the status of the error every 30 minutes. Support.com will join and collaboratively participate in a technical bridge with Comcast to work the Error. Support.com will join an operations management bridge every 2 hours, as deemed necessary and reasonable by Comcast and Support.com, to provide a status read-out until the Severity Level 1 Error is resolved
|
2
|
High priority
Severity Level 2 implies that the Support.com Environment and Software is running but that Comcast or authorized users are unable to receive major portions of Signature Support services, and no work around is available
|
***
|
***
|
Hours 1: Maintenance engineering point of contact will decide if more resources are required to work on Error. Support.com will make all necessary resources available. Project Manager and Operations Support Manager notified.
Hours 2: Support.com’s maintenance engineering group will either resolve Error or continue working until Error is fixed. If no correction within 2 hours, escalate to Support.com executive no less than VP level.
Hour 4+: Continue to work on Error on a 24 hour basis. If no correction within 4 hours, escalate to Support.com executive no less than SVP level.
Comcast will be notified of the status of the error every 30 minutes. Support.com will join and collaboratively participate in a technical bridge with Comcast to work the Error. Support.com will join an operations management bridge every 2 hours, as deemed necessary and reasonable by Comcast and Support.com, to provide a status read-out until the Severity Level 2 Error is resolved
|
3
|
Normal Priority
Severity Level 3 implies Support.com Environment and Software is in operation and usable, but there is a non-critical Error for which a commercially and operationally sustainable and reasonable Work-around exists
|
***
|
***
|
Hours 1 – 8: No Escalation
Hours 8-16: Support.com’s support group will either resolve Error or continue working until Error is fixed.
Hour 16+: Continue to work on Error during normal business hours
Project Manager and Operations Support Manager notified
|
|
2.
|
RELEASE MANAGEMENT
|
1.
|
CBCSS Support
|
|
1.1.
|
Addition of CBCSS Support to XSS Program
|
1.2.
|
CBCSS Support Launch Schedule
|
1.2.1.
|
Initial Launch
|
|
1.2.2.
|
Launch Schedule Changes
|
2.
|
Program Scope
|
2.1.
|
Territory
|
|
2.2.
|
Support.com Obligations
|
|
2.2.1.
|
Desktop and Server Software Agents
|
|
a.
|
Support.com shall provide its desktop agent for CBCSS Support offerings (the “Desktop Agent”) rebranded for Comcast.
|
|
b.
|
Such Desktop Agent shall permit scanning of potential PC issues with little or no end-user involvement.
|
|
c.
|
The Desktop Agent shall permit access by the CBCSS Customer to Support.com’s CBCSS Support technicians.
|
|
d.
|
The Desktop Agent shall include proactive and self-help tools as additional value add to CBCSS Customers.
|
|
e.
|
In addition, in such manner and at such times as the Parties may agree, such Desktop Agent shall enable communication with CBCSS Customers as specified in the VPRD.
|
|
f.
|
Support.com shall also provide a software agent for server monitoring and management as specified in the VPRD to those CBCSS Customers who purchase server support subscriptions (the “Server Agent”).
|
|
2.2.2.
|
Network Operations Center
|
|
a.
|
Monitor outputs from the Server Agents;
|
|
b.
|
Make appropriate changes to the monitored machines based on such outputs; and
|
|
c.
|
Communicate requirements for other changes requiring CBCSS Customer interaction to Support.com’s CBCSS support technicians.
|
|
2.2.3.
|
Systems Integration and Engineering Work
|
|
2.2.4.
|
Service Delivery Training
|
|
2.2.5.
|
Call Monitoring Infrastructure
|
|
a.
|
Support.com will make available a call recording portal (“Call Portal”) that enables the audit by Comcast of randomly selected call recordings from the pool of CBCSS Support calls performed by Support.com. Support.com shall not intentionally withhold any calls from the selection pool provided to Comcast for review. Call recordings are to be stored in the Call Portal for at least *** days from the date of the recording.
|
|
b.
|
Support.com will also provide *** separate dedicated phone numbers (“Live Lines”) that provide Comcast with the ability to listen to live CBCSS Support calls being performed by Support.com technicians.
|
|
2.3.
|
Comcast Obligations
|
3.
|
Services and Fees
|
|
3.1.
|
Minimum Requirements for Delivery of Remote Services
|
|
3.2.
|
CBCSS Support SKUs
|
SKU name
|
Support.com Fees
|
Remote End-User Subscription
|
$***/user/month + one-time activation/set-up fee of $***
|
Remote End-User Subscription + Onsite Subscription
|
$***/user/month + one-time activation/set-up fee of $***
|
Plus | |
Administrative fee of $*** for each onsite visit dispatched by Support.com (not including fees if any due to Onsite provider) | |
Remote End-User Subscription + Onsite Subscription + Warranty
|
$***/user/month + one-time activation/set-up fee of $***
|
Plus
|
|
Administrative fee of $*** for each onsite visit dispatched by Support.com (not including fees if any due to Onsite provider)
|
|
Remote Subscription Migration Incident
|
$*** one-time fee. Covers migration of a current subscription user to a new PC or a new user to a currently subscribed PC
(requires current subscription)
|
Remote Server Subscription
|
$***/server/month + one-time activation/set-up fee of $***
|
Plus
|
|
Administrative fee of $*** for each onsite visit dispatched by Support.com (not including fees if any due to Onsite provider)
|
|
Remote Incident
|
$*** one-time fee
|
or
|
|
Administrative fee of $*** for each onsite visit dispatched by Support.com (not including fees if any due to Onsite provider)
|
|
3.3.
|
Service Delivery Wholesale Pricing
|
|
3.4.
|
Retail Pricing
|
|
3.5.
|
Refund Policy
|
|
3.6.
|
Comcast Guarantee
|
|
3.7.
|
Marketing and Other Services
|
|
3.8.
|
Equipment Protection Claims Process
|
|
3.8.1.
|
Phase 1
|
|
3.8.2.
|
Phase 2
|
4.
|
Service Delivery Process
|
4.1
|
Tier 1 CBCSS Support
|
|
4.2
|
Service Delivery Requirements
|
4.2.1
|
Service Delivery Call Center
|
|
a.
|
Subject to the provisions and limitations of Section 10 (“Forecasts”), maintain a service delivery capability with sufficient staffing to meet service level requirements set forth in Exhibit B (“CBCSS Program Service Level Terms”) of this Program Description.
|
|
b.
|
In such manner and at such times as the Parties may agree, configure Support.com’s Service Delivery Management System (“SDMS”) to support CBCSS Support business processes and technology platform (standard operating procedures, ticketing, post-service delivery emails) Comcast offerings, scope of delivery and desired CBCSS Customer experience.
|
|
c.
|
Brand Service delivery scripts and “leave behind” reporting as specified by Comcast, and include Comcast-approved messaging.
|
|
d.
|
Verify CBCSS Customer entitlement prior to Service delivery based on data provided by Comcast for Customers who contact Support.com directly.
|
|
e.
|
Provide access to Services 24 hours a day, 7 days per week, excluding scheduled maintenance and otherwise as described in Exhibit B (“CBCSS Program Service Level Terms”).
|
|
f.
|
Notwithstanding anything to the contrary contained in Section 2.6 of the Agreement, technicians providing Services not requiring interactions with CBCSS Customers including but not limited to those related to the NOC may be located in whole or in part outside the United States and staffed in whole or in part by non-U.S. technicians. For the avoidance of doubt, Support.com’s delivery agents may be employed in Canada as well as the United States.
|
|
4.2.2
|
Screen Share and Desktop Tools
|
|
a.
|
Complete and periodically maintain such reasonable security audits of its screen share and desktop tools as the Parties may agree.
|
|
b.
|
Maintain commercial license agreements for all third-party tools utilized in service delivery process by Support.com; provided, however, that Comcast shall maintain commercial license agreements for all third-party tools and systems (e.g. Grand Slam, Norton Suite, Comcast biller) required and provided by Comcast to Support.com for use in the service delivery process.
|
|
4.2.3
|
Entitlement Process.
|
|
4.2.4
|
On-site Work Order Creation, Management and Triage Fees
|
|
a.
|
Comcast’s selected on-site provider(s) shall integrate its (their) work order systems with Support.com’s SDMS through a mutually agreed integration plan using the SDMS application program interface (“API”).
|
|
b.
|
Support.com shall receive work order status updates from on-site provider through the SDMS API.
|
|
c.
|
Comcast’s selected on-site provider(s) shall integrate its (their) scheduling system with SDMS through a mutually agreed plan using the API.
|
|
d.
|
Support.com shall be initial contact with CBCSS subscribers regarding on-site delivery scheduling and work order status when Support.com performs onsite dispatch as part of a subscription or incident Service.
|
|
e.
|
For each onsite event for which Support.com performs onsite dispatch, Comcast shall pay Support.com a fee as set forth in Section 3.2 (“CBCSS Support SKUs”).
|
5.
|
Sales
|
5.1
|
Sales Capability
|
6.
|
Reporting Requirements
|
6.1
|
Reporting
|
6.2
|
KPI Dashboard
|
7.
|
[INTENTIONALLY OMITTED]
|
8.
|
Relationship Governance
|
|
8.1.
|
Roles and Responsibilities
|
|
8.2.
|
Change Control
|
|
8.2.1.
|
Program Change Control Process
|
|
8.2.2.
|
SKU/Fee Change Process
|
9.
|
CBCSS Exclusivity and Most Favored Nation
|
|
9.1.
|
Exclusivity for Support.com
|
|
9.2.
|
Exclusivity for Comcast
|
|
9.3.
|
Most Favored Nation
|
10.
|
Forecasts
|
10.1
|
CBCSS Forecasts
|
|
10.2
|
Forecast Reporting
|
|
10.3
|
Variance in Excess of Monthly Volume Forecast
|
10.4
|
Variance Below Monthly Order Forecast
|
11.
|
Term and Termination.
|
|
11.1
|
Term
|
|
11.2
|
Termination for Convenience by Comcast
|
|
11.3
|
Termination for Convenience by Support.com
|
|
11.4
|
Termination for Breach
|
|
11.5
|
Termination Upon Change of Control
|
|
11.6
|
Effect of Termination
|
|
11.7
|
No Other Early Termination Fees
|
12.
|
Misdirected Calls
|
|
i.
|
Ninjato ticket number
|
|
ii.
|
Date and time of the ticket
|
|
iii.
|
Call duration
|
|
iv.
|
Comcast customer account number if it exists (a Misdirected Call might involve a party who is not yet a CBCSS Customer) and if the number is readily available to the Support.com agent at the time of the Misdirected Call
|
|
v.
|
Mutually agreed reason code
|
|
vi.
|
The Operator ID of the last Comcast agent to access the account if the Operator ID is provided by the Comcast agent or is otherwise readily available to the Support.com agent at the time of the Misdirected Call.
|
COMCAST CABLE COMMUNICATIONS
|
SUPPORT.COM, INC.
|
||||
MANAGEMENT, LLC
|
|||||
By:
|
By:
|
||||
Name:
|
Name:
|
||||
Title:
|
Title:
|
||||
Date:
|
Date:
|
Subscription SKU
name
|
Description | ||
End-User Support
Subscription
Essentials
Preferred
Premier
|
NOTE: All three levels of Small Business support subscription include the same remote support. If the subscription includes onsite support and the customer requires onsite services, the Support.com technician will place the order with the onsite vendor. If the subscription does not include onsite support and the customer requires onsite services, the Support.com technician will advise the customer of the recommended service and price, and offer to transfer the customer to the sales vendor. | ||
In Scope | |||
● | Support for one business user on his or her primary work computer (not a server) | ||
● | Removal of viruses, spyware, and other malware | ||
● | Networking setup and connectivity troubleshooting | ||
● | Setup troubleshooting support for peripheral devices such as printers, scanners, etc. | ||
● | Smart Phone and Tablet support for business applications | ||
● | Software application support includes application install/uninstall, troubleshooting to make sure the application launches correctly, and basic usage questions on common business software | ||
● | Setup and configuration of Managed Cloud Backup | ||
● | Configuration of MS Outlook or other common email clients listed in the VPRD to enable sending and receiving email from the subscriber’s work email account | ||
● | Includes desktop client software which allows easy connection to a remote technician, performs periodic assessment of the computer’s health and security, and performs periodic maintenance and optimization tasks | ||
● | The above list is not necessarily comprehensive. Support.com will consider in Scope any other functions identified in the VPRD | ||
● | Network hardware such as firewalls, switches or routers that can be remotely administered via a graphical user interface or best effort support for non-graphical user interface hardware. | ||
Out of Scope | |||
● | Servers | ||
● | Comprehensive training on application usage excluding basic functionality questions, setup and configuration of the application for the user | ||
● | Systems that to not meet the System Requirements listed in the VPRD | ||
● | Beta or other pre-release software | ||
● | Setup or troubleshooting of computers, networks, or software applications including gaming systems for non-business usage |
Premier Server
Subscription
|
NOTE: Server subscriptions include onsite support. If the customer requires onsite services, the Support.com technician will place the order with the onsite vendor.
|
||
In Scope | |||
● |
Support for one business server
|
||
● |
Proactive monitoring of server and network availability, hardware, performance, operating system events, Active Directory, Exchange, Windows security logs, and critical applications
|
||
● |
Email or phone notifications for critical alarm incidents
|
||
● |
Network Operations Center web-based Microsoft patch testing
|
||
● |
Automated maintenance, including Microsoft security patch installation, service restart, AV definition updates
|
||
● |
Hardware and software asset management and change management reports
|
||
● |
Management of Microsoft Service Packs, Windows Event log files, drive space, printer settings, file sharing permissions, security, and AV software
|
||
● |
User account administration (Add/Change/Delete)
|
||
● |
Performance management and best practice configuration
|
||
● |
Backup management and maintenance of approved backup solutions only
|
||
● |
Setup and configuration of Managed Cloud Backup
|
||
● | Removal of viruses, spyware, and other malware | ||
● | Networking setup and connectivity troubleshooting | ||
● | Ongoing network management, including server-impacting LAN configurations, firewall and switch management, and Windows VPN/Remote Access management | ||
● | Management of Exchange Server, Directory Services, and other common business applications | ||
● | Network hardware such as firewalls, switches or routers that can be remotely administered via a graphical user interface or best effort support for non-graphical user interface hardware. | ||
● | The above list is not necessarily comprehensive. Support.com will consider in Scope any other functions identified in the VPRD | ||
Out of Scope | |||
● |
Systems that do not meet the System Requirements listed in the VPRD
|
||
● |
Beta or other pre-release software
|
||
● |
Subscription Migration and New PC Setup
|
This SKU is a one-time service to migrate a current subscription user to a new PC or a new user to a currently subscribed PC
(requires current subscription)
|
||
In Scope | |||
● |
Creation of a new user account on the PC
|
||
● |
Configuration of PC network settings
|
||
● |
Migration of data files from another PC. This includes files such as Word documents, spreadsheets, images and e-mail.
|
||
● |
Installation and configuration of approved backup software
|
||
● |
Restoration of data from approved backup software
|
||
● |
Addition of computer to existing Windows network domain
|
||
● |
Setup of local security privileges
|
||
● |
Mapping of network drives
|
||
● |
Installation of Antivirus software
|
||
● |
Installation of printers
|
||
● |
Setup of Microsoft Office with customer provided license key
|
||
● |
Best effort setup of 3rd party applications
|
||
● |
Installation and configuration of peripherals such as scanners or docking stations
|
||
● |
Transfer of browser favorites and shortcuts
|
||
● |
Configuration of MS Outlook or other common email clients listed in the PRD to enable sending and receiving email from the subscriber’s work email account.
|
||
● |
Removal of preinstalled unnecessary software
|
||
● |
Configuration multiple monitor view settings
|
||
● |
Configuration of taskbar and desktop icons
|
Incident SKU name
|
Description
|
||
Solve
|
NOTE: This SKU includes onsite support provide by another vendor. If the customer requires onsite services, the Support.com technician will place the order with the onsite vendor.
|
||
In Scope | |||
● |
Up to *** of remote support
|
||
● |
Setup or troubleshooting for one business computer, server, network, or connected device
|
||
● |
Support for one business user on his or her primary work computer (not a server)
|
||
● |
Removal of viruses, spyware, and other malware
|
||
● |
Networking setup and connectivity troubleshooting
|
||
● |
Setup troubleshooting support for peripheral devices such as printers, scanners, etc.
|
||
● |
Smart Phone and Tablet support for business applications
|
||
● |
Software application support includes application install/uninstall, troubleshooting to make sure the application launches correctly, and basic usage questions on common business software
|
||
● |
Configuration of MS Outlook or other common email clients listed in the VPRD to enable sending and receiving email from the subscriber’s work email account
|
||
● |
Network hardware such as firewalls, switches or routers that can be remotely administered via a graphical user interface or best effort support for non-graphical user interface hardware.
|
||
● |
The above list is not necessarily comprehensive. Support.com will consider in Scope any other functions identified in the VPRD
|
||
Out of Scope | |||
● |
Servers
|
||
● |
Comprehensive training on application usage excluding basic functionality questions, setup and configuration of the application for the user
|
||
● |
Systems that to not meet the System Requirements listed in the VPRD
|
||
● |
Beta or other pre-release software
|
||
● |
Setup or troubleshooting of computers, networks, or software applications including gaming systems for non-business usage
|
1.
|
AVAILABILITY/UPTIME FOR THE SUPPORT.COM ENVIRONMENT
|
Comcast Environment Responsibilities
|
Support.com Environment Responsibilities
|
||||
Host / manage: | Host / manage: | ||||
● | Comcast billers and related servers wherever located (e.g., CSG, Amdocs) | ● | Support.com desk top agent software | ||
● | Comcast diagnostic / ticketing tools (e.g. GrandSlam, Remedy SAMS) | ● | Support.com remote support client | ||
● | User account approvals and changes for the components (e.g. GrandSlam) of the Comcast Environment | ● | Suite of remote diagnostic / fix tools used by Support.com agents | ||
● | Support.com product information and e-commerce web portal | ||||
● | Comcast ACD, IVR and voice circuits / data links | ● | Support.com credit card payment gateway | ||
● | Support.com ACD, IVR and voice circuits / data links | ||||
Plus: | ● | Support.com CRM | |||
● | Support.com chat client | ||||
● | Support API transactions between Comcast and Support.com (when Comcast design / development complete) | ● | All other servers, storage and networking hardware, operating systems, database management systems and operating platforms used by Support.com to support Signature Support services end to end | ||
Plus: | |||||
● | Support.com Software APIs |
SLA #
|
Area Covered
|
SLA
|
Tier
|
Severe Miss
|
1
|
Support.com Environment hosted platform availability
Measure: Uptime of the hosted elements of the Support.com Environment in production
|
***
|
***
|
***
|
2
|
Support.com remote support client connection rate Measure: Success rate of remote connection attempts from systems meeting system requirements, able to download and install the remote control software and with such software granted appropriate permissions by the Customer
|
***
|
***
|
***
|
3
|
Availability of Support.com ACD, IVR, and voice / data circuits Measure: Composite average of uptime of ACD, IVR, voice / data circuits used to support Signature Support
|
***
|
***
|
***
|
SLA #
|
Area Covered
|
SLA
|
Tier
|
Severe Miss
|
1
|
Customer satisfaction survey offer rate
Measure: Percentage of Customers offered customer satisfaction survey (during the Service connection or promptly thereafter by email) after receiving Services from Support.com via remote connection, excluding Customers who are not available through the direct service connection to the Customer’s PC at the time of service completion (e.g., Customers connecting only by phone who need to be transferred to Comcast or another XSS service provider, or Customers who do not call back to complete a service step)
|
***
|
***
|
***
|
2
|
Customer satisfaction survey completion rate
Measure: Percentage of Customers completing customer satisfaction survey after receiving survey from Support.com
|
***
|
***
|
***
|
3
|
Customer Satisfaction/Net Promoter score
The Parties will reassess in good faith biannually beginning in March 2012 with an expectation that NPS levels should increase from present levels.
|
***
|
***
|
***
|
4
|
Inbound Call Service Level (Delivery calls)
Measure: Percentage of inbound Customer calls for a delivery agent answered within 45 seconds.
|
***
|
***
|
***
|
5
|
Chat Service Level
Measure: Percentage of chat sessions initiated by Customers to which Support.com responds within 45 seconds. Penalties shall apply to this SLA in the first calendar month after 5,000 chats occur in a month.
|
***
|
***
|
***
|
6
|
NOC Critical Error Response Time
Measure: Percentage of critical alerts generated by the network monitoring platform to which Support.com responds within 45 minutes
“Critical” defined as a system or systems that effects multiple users or a key business function that does not have a capable workaround
|
***
|
***
|
***
|
7
|
NOC Non-Critical Error Response Time
Measure: Percentage of non-critical alerts generated by the network monitoring platform to which Support.com responds within 4 hours
|
***
|
***
|
***
|
8
|
MTTR for Comcast ESL tickets
Measure: MTTR for tickets from Comcast’s Executive Support Line (aka “Office of the President”) resolved (or response provided explaining why resolution not possible in timeframe) by Support.com
|
***
|
***
|
***
|
9
|
Scorecard Report
Reporting via scorecard by Support.com pursuant to Section 1.6 of this Exhibit, below, is timely made by the eighth (8th) business day following the end of each calendar month
|
***
|
***
|
***
|
10
|
Subscriber Churn
The Parties will work in good faith to determine an appropriate SLA for subscriber churn rates by June 30, 2013
|
***
|
***
|
***
|
|
2.
|
Financial Penalties.
|
Severity
Level Tier
|
Number of
Failures
during
month
|
Service Level Credit to Comcast per
failure
|
Severe Miss
Penalty
|
||||||||
L |
3 or more
|
$ | *** | $ | *** | ||||||
M |
1 or more
|
$ | *** | $ | *** | ||||||
H |
1 or more
|
$ | *** | $ | *** |
|
3.2
|
Catastrophic Failure Penalty. A Catastrophic Failure is:
|
|
(i)
|
a Severity 1 Level Error, as defined in Paragraph 4 of this Exhibit, that affects 10% or more of Comcast System Subscribers and lasts a total of four (4) hours or more; and / or
|
|
ii)
|
a Severity 1 Level Error, as defined in Paragraph 4 of this Exhibit, that affects 25% or more of Comcast System Subscribers for any amount of time; and/or
|
|
iii) a failure to deliver the SLA scorecard report for a calendar month required by Section 1.6 (“Reporting via Scorecard) of this Exhibit by the sixteenth (16th) business day of the following month; and/or
|
|
iv) Inbound Call Service Level (Delivery calls) of less than ***%; and/or
|
|
v) Customer Satisfaction/Net Promoter Score below ***.
|
|
3.
|
SUPPORT SERVICE
|
|
3.1
|
Updates & Upgrades.
|
|
3.1.1
|
Support.com will make available to Comcast all commercially available Updates and Upgrades of its Support.com Software, along with updated Documentation describing the purpose and function of the Updates and Upgrades. Support.com will use commercially reasonable efforts to ensure that Updates or Upgrades containing new features or enhancements to existing features are synchronized with the previous version. Such Updates and Upgrades shall not materially degrade the performance, functioning or operation of the Support.com Software. Comcast shall have the right to delay installation of any Update or Upgrade for any period of time in its sole discretion and Support.com shall continue to support the most recent Accepted versions of the Support.com Software. However, after an Update or Upgrade has been incorporated into the Support.com Software and Accepted by Comcast, the Update or Upgrade shall be considered part of the Support.com Software for all purposes hereunder. Support.com will not install or attach any Updates, Upgrades or any other modification to the Support.com Software (electronically or otherwise), without first obtaining Comcast’s approval or otherwise following mutually agreed procedures (as in the regular updating of hosted systems).
|
|
3.1.2
|
Support.com shall use reasonable efforts to ensure that Updates and Upgrades, unless explicitly indicated in advance by Support.com and approved by Comcast will (i) be compatible with the previous version and its associated data and with any software interfacing with such Support.com Software prior to the Update or Upgrade, and (2) not eliminate any of the material functions, features or performance of the previous version.
|
|
3.2
|
Problem Resolution.
|
|
A.
|
Root Cause Analysis: Following the resolution of a Severity Level 1 Error, within twenty-four (24) hours Support.com will supply Comcast with a documented Root Cause Analysis of what caused the Error and a summary of the response / resolution process.
|
|
B.
|
Irreversible Corrective Action (ICA): Following the resolution of a Severity Level 1 Error, within five (5) business days, Support.com will provide Comcast a documented Irreversible Corrective Action (ICA) summary.
|
|
A.
|
Root Cause Analysis: Following the resolution of a Severity Level 2 Error, within twenty-four (24) hours Support.com will supply Comcast with a documented Root Cause Analysis of what caused the Error and a summary of the response / resolution process.
|
|
B.
|
Irreversible Corrective Action (ICA): Following the resolution of a Severity Level 2 Error, within five (5) business days, Support.com will provide Comcast a documented Irreversible Corrective Action (ICA) summary.
|
|
A.
|
Root Cause Analysis: Following the resolution of a Severity Level 3 Error, within seventy-two (72) hours Support.com will supply Comcast with a documented Root Cause Analysis of what caused the Error and a summary of the response / resolution process.
|
|
B.
|
Irreversible Corrective Action (ICA): Following the resolution of a Severity Level 3 Error, within ten (10) business days, Support.com will provide Comcast a documented Irreversible Corrective Action (ICA) summary.
|
Severity
|
Description
|
Initial Call back Response Time
|
Target Resolu-tion Time
|
Escalation Procedure
|
1
|
Critical priority
Severity Level 1 implies that the Support.com Environment or Software is not functioning or, Comcast or authorized users are unable to receive use major portions of Signature Support services.
|
***
|
***
|
Hour 1: Maintenance engineering point of contact will decide if more resources are required to work on Error. Support.com will make all necessary resources available. Project Manager and Operations Support Manager notified
If no correction within 1 hr, escalate to Support.com executive no less than VP level.
Hour 1+: Continue to work on Error on a 24 hour basis
Comcast will be notified of the status of the error every 30 minutes. Support.com will join and collaboratively participate in a technical bridge with Comcast to work the Error. Support.com will join an operations management bridge every 2 hours, as deemed necessary and reasonable by Comcast and Support.com, to provide a status read-out until the Severity Level 1 Error is resolved
|
2
|
High priority
Severity Level 2 implies that the Support.com Environment and Software is running but that Comcast or authorized users are unable to receive major portions of Signature Support services, and no work around is available
|
***
|
***
|
Hours 1: Maintenance engineering point of contact will decide if more resources are required to work on Error. Support.com will make all necessary resources available. Project Manager and Operations Support Manager notified.
Hours 2: Support.com’s maintenance engineering group will either resolve Error or continue working until Error is fixed. If no correction within 2 hours, escalate to Support.com executive no less than VP level.
Hour 4+: Continue to work on Error on a 24 hour basis. If no correction within 4 hours, escalate to Support.com executive no less than SVP level.
Comcast will be notified of the status of the error every 30 minutes. Support.com will join and collaboratively participate in a technical bridge with Comcast to work the Error. Support.com will join an operations management bridge every 2 hours, as deemed necessary and reasonable by Comcast and Support.com, to provide a status read-out until the Severity Level 2 Error is resolved
|
3
|
Normal Priority
Severity Level 3 implies Support.com Environment and Software is in operation and usable, but there is a non-critical Error for which a commercially and operationally sustainable and reasonable Work-around exists
|
***
|
***
|
Hours 1 – 8: No Escalation
Hours 8-16: Support.com’s support group will either resolve Error or continue working until Error is fixed.
Hour 16+: Continue to work on Error during normal business hours
Project Manager and Operations Support Manager notified
|
Date: November 2, 2012
|
By:
|
/s/ JOSHUA PICKUS
|
Joshua Pickus
|
||
Chief Executive Officer and President
|
Date: November 2, 2012
|
By:
|
/s/ SHELLY SCHAFFER
|
|
Shelly Schaffer
|
|||
Chief Financial Officer and
Executive Vice President of
Finance and Administration
|
(i)
|
the Quarterly Report of the Company on Form 10-Q for the quarter ended September 30, 2012 (the “Report”), fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934, and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: November 2, 2012
|
/s/ JOSHUA PICKUS
|
Joshua Pickus
|
|
Chief Executive Officer and President
|
(1)
|
The material contained in this Exhibit 32.1 is not deemed “filed” with the SEC and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filing, except to the extent that the registrant specifically incorporates it by reference.
|
(i)
|
the Quarterly Report of the Company on Form 10-Q for the quarter ended September 30, 2012 (the “Report”), fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934, and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: November 2, 2012
|
/s/ SHELLY SCHAFFER
|
Shelly Schaffer
|
|
Chief Financial Officer and
|
|
Executive Vice President
|
|
of Finance and Administration
|
(1)
|
The material contained in this Exhibit 32.2 is not deemed “filed” with the SEC and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filing, except to the extent that the registrant specifically incorporates it by reference.
|
Commitments and Contingencies
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 4. Commitments and Contingencies Tax contingencies We are required to make periodic filings in the jurisdictions where we are deemed to have a presence for tax purposes. We have undergone audits in the past and have paid assessments arising from these audits. Our India entity was issued notices of income tax assessment pertaining to the 2004-2005, 2005-2006, 2006-2007, 2007-2008 and 2008-2009 fiscal years. The notices claimed that the transfer price used in our inter-company agreements with our India entity was too low, and that the price should be increased. We believe our current transfer pricing position is more likely than not to be sustained. We believe that this will be resolved through the normal judicial appeal process used in India, and have submitted our case to the court. We may be subject to other income tax assessments in the future. We evaluate estimated expenses that could arise from those assessments in accordance with ASC 740. We consider such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate on the amount of expenses. We record the estimated liability amount of those assessments that meet the definition of an uncertain tax position under ASC 740. Legal contingencies On February 7, 2012, a lawsuit seeking class-action certification was filed against the Company in the United States District Court for the Northern District of California, No. 12-CV-00609, alleging that the design of one the Company's software products and the method of promotion to consumers constitute fraudulent inducement, breach of contract, breach of express and implied warranties, and unjust enrichment. On the same day the same plaintiffs' law firm filed another action in the United States District Court for the Southern District of New York, No. 12-CV-0963, involving similar allegations against a subsidiary of the Company and one of the Company's channel partners who distributes our software products, and that channel partner has requested indemnification under contract terms with the Company. The law firm representing the plaintiffs in both cases has filed unrelated class actions in the past year against a number of major software providers with similar allegations about those providers' products. On June 18, 2012, the Company entered into a settlement which remains subject to final court approval. Under the terms of the settlement, the Company would offer a one-time cash payment, which is covered by the Company's insurance provider, to qualified class-action members. In addition, the Company would offer a limited free subscription to one of its software products. In accordance with ASC 450, Contingencies, we have estimated and recorded a charge against earnings in general and administrative expense in the second quarter of 2012 of $57,000 associated with the limited free software subscription. The Company denies any wrongdoing or liability and entered into the settlement to minimize the costs of defense. We are also subject to other routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, potentially including assertions that we may be infringing patents or other intellectual property rights of others. We currently do not believe that the ultimate amount of liability, if any, for such routine legal proceedings (alone or combined) will materially affect our financial position, results of operations or cash flows. The ultimate outcome of any litigation is uncertain, however, and unfavorable outcomes could have a material negative impact on our financial condition and operating results. Regardless of outcome, litigation can have an adverse impact on us because of defense costs, negative publicity, diversion of management resources and other factors. Guarantees We have identified guarantees in accordance with ASC 450. This guidance stipulates that an entity must recognize an initial liability for the fair value, or market value, of the obligation it assumes under the guarantee at the time it issues such a guarantee, and must disclose that information in its interim and annual financial statements. We have entered into various service level agreements with our channel partners, in which we may guarantee the maintenance of certain service level thresholds. Under some circumstances, if we do not meet these thresholds, we may be liable for certain financial costs. We evaluate costs for such guarantees under the provisions of ASC 450. We consider such factors as the degree of probability that we would be required to satisfy the liability associated with the guarantee and the ability to make a reasonable estimate of the resulting cost. To date, we incurred costs of less than 1% of revenue as a result of any such obligations and have not accrued any liabilities related to such obligations in the condensed consolidated financial statements as of September 30, 2012 and December 31, 2011. |