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Organization and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2012
Organization and Summary of Significant Accounting Policies [Abstract]  
Summary of allowance for doubtful accounts
The following table summarizes the allowance for doubtful accounts as of December 31, 2012, 2011 and 2010 (in thousands):
 
 
Balance at Beginning of Period
 
 
Adjustments to
Costs and
Expenses
 
 
Write-
offs
 
 
Balance at
End of
Period
 
Allowance for doubtful accounts:
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2010
 
$
9
 
 
$
34
 
$
 
$
43
 
Year ended December 31, 2011
 
$
43
 
 
$
(16
)
 
$
(7
)
 
$
20
 
Year ended December 31, 2012
$
20
$
(18
)
$
$
2
Summary of cash, cash equivalents and investments
At December 31, 2012 and 2011, the fair value of cash, cash equivalents and investments was $56.3 million and $53.0 million, respectively.  The following is a summary of cash, cash equivalents and investments at December 31, 2012 and 2011 (in thousands):

 
For the Year Ended December 31, 2012
 
 
Amortized Cost
 
 
Gross Unrealized Gains
 
 
Gross Unrealized Losses
 
 
Fair Value
 
Cash
 
$
11,116
 
 
$
 
 
$
 
 
$
11,116
 
Money market fund
 
 
17,235
 
 
 
 
 
 
 
 
 
17,235
 
Certificates of deposit
 
 
1,880
 
 
 
 
 
 
(1
)
 
 
1,879
 
Commercial paper
 
 
5,745
 
 
 
1
 
 
 
(1
)
 
 
5,745
 
Corporate notes and bonds
 
 
20,172
 
 
 
7
 
 
 
(6
)
 
 
20,173
 
U.S. government agency securities
 
 
202
 
 
 
 
 
 
 
 
 
202
 
 
$
56,350
 
 
$
8
 
 
$
(8
)
 
$
56,350
 
Classified as:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
30,853
 
 
$
 
 
$
(1
)
 
$
30,852
 
Short-term investments
 
 
25,497
 
 
 
8
 
 
 
(7
)
 
 
25,498
 
 
$
56,350
 
 
$
8
 
 
$
(8
)
 
$
56,350
 

 
For the Year Ended December 31, 2011
 
 
Amortized Cost
 
 
Gross Unrealized Gains
 
 
Gross Unrealized Losses
 
 
Fair Value
 
Cash
 
$
6,461
 
 
$
 
 
$
 
 
$
6,461
 
Money market fund
 
 
15,698
 
 
 
 
 
 
 
 
 
15,698
 
Certificates of deposit
 
 
480
 
 
 
 
 
 
 
 
 
480
 
Commercial paper
 
 
6,295
 
 
 
 
 
 
(6
)
 
 
6,289
 
Corporate notes and bonds
 
 
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
 
 
Summary of estimated fair value of available-for-sale securities classified by the stated maturity date
The following table summarizes the estimated fair value of our available-for-sale securities classified by the stated maturity date of the security (in thousands):
 
 
December 31,
 
 
2012
 
 
2011
 
Due within one year
 
$
23,885
 
 
$
29,503
 
Due within two years
 
 
1,613
 
 
 
240
 
Due after two years
 
 
 
 
 
1,111
 
 
$
25,498
 
 
$
30,854
 
Summary of unrealized losses on of available-for-sale investments
The following table sets forth the unrealized losses for the Company's available-for-sale investments as of December 31, 2012 and 2011 (in thousands):
 
As of December 31, 2012
 
In Loss Position
Less Than 12 Months
 
 
In Loss Position
More Than 12 Months
 
 
Total In Loss Position
 
Description
 
Fair Value
 
 
Unrealized Losses
 
 
Fair Value
 
 
Unrealized Losses
 
 
Fair Value
 
 
Unrealized Losses
 
Certificate of deposits
 
$
1,159
 
 
$
(1
)
 
$
 
 
$
 
 
$
1,159
 
 
$
(1
)
Commercial paper
 
 
3,498
 
 
 
(1
)
 
 
 
 
 
 
 
 
3,498
 
 
 
(1
)
Corporate notes and bonds
 
 
12,045
 
 
 
(4
)
 
 
1,613
 
 
 
(2
)
 
 
13,658
 
 
 
(6
)
Total
 
$
16,702
 
 
$
(6
)
 
$
1,613
 
 
$
(2
)
 
$
18,315
 
 
$
(8
)

As of December 31, 2011
 
In Loss Position
Less Than 12 Months
 
 
In Loss Position
More Than 12 Months
 
 
Total In Loss Position
 
Description
 
Fair Value
 
 
Unrealized Losses
 
 
Fair Value
 
 
Unrealized Losses
 
 
Fair Value
 
 
Unrealized Losses
 
Commercial paper
 
$
4,288
 
 
$
(6
)
 
$
 
 
$
 
 
$
4,288
 
 
$
(6
)
Corporate notes and bonds
 
 
12,947
 
 
 
(16
)
 
 
 
 
 
 
 
 
12,947
 
 
 
(16
)
U.S. government agency securities
 
 
3,805
 
 
 
(1
)
 
 
 
 
 
 
 
 
3,805
 
 
 
(1
)
Auction-rate security
 
 
 
 
 
 
 
 
1,111
 
 
 
(289
)
 
 
1,111
 
 
 
(289
)
Total
 
$
21,040
 
 
$
(23
)
 
$
1,111
 
 
$
(289
)
 
$
22,151
 
 
$
(312
)
Computation of basic and diluted net loss per share
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):
 
 
Year Ended December 31,
 
 
2012
 
 
2011
 
 
2010
 
Net loss
 
$
(5,424
)
 
$
(18,640
)
 
$
(18,067
)
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares of common stock outstanding
 
 
48,798
 
 
 
48,288
 
 
 
46,818
 
Shares used in computing basic net loss per share
 
 
48,798
 
 
 
48,288
 
 
 
46,818
 
Basic net loss per share
 
$
(0.11
)
 
$
(0.39
)
 
$
(0.39
)
Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares of common stock outstanding
 
 
48,798
 
 
 
48,288
 
 
 
46,818
 
Add: Common equivalent shares outstanding
 
 
 
 
 
 
 
 
 
Shares used in computing diluted net loss per share
 
 
48,798
 
 
 
48,288
 
 
 
46,818
 
Diluted net loss per share
 
$
(0.11
)
 
$
(0.39
)
 
$
(0.39
)

Fair value of stock-based awards valuation assumptions
The fair value of our stock-based awards was estimated using the following weighted average assumptions for the years ended December 31, 2012, 2011 and 2010:
 
 
Stock Option Plan
 
 
Employee Stock Purchase Plan
 
 
2012
 
 
2011
 
 
2010
 
 
2012
 
 
2011
 
 
2010
 
Risk-free interest rate
 
 
0.6
%
 
 
1.0
%
 
 
1.7
%
 
 
0.1
%
 
 
0
%
 
 
n/a
 
Expected term (in years)
 
 
3.7
 
 
 
3.6
 
 
 
3.6
 
 
 
0.5
 
 
 
0.5
 
 
 
n/a
 
Volatility
 
 
57.2
%
 
 
59.2
%
 
 
66.6
%
 
 
62.3
%
 
 
75.3
%
 
 
n/a
 
Expected dividend
 
 
0
%
 
 
0
%
 
 
0
%
 
 
0
%
 
 
0
%
 
 
n/a
 
Weighted average grant-date fair value
 
$
1.30
 
 
$
1.63
 
 
$
1.71
 
 
$
1.15
 
 
$
0.77
 
 
 
n/a
 
 
Stock-based compensation expense
We recorded the following stock-based compensation expense for the fiscal years ended December 31, 2012, 2011 and 2010 (in thousands):
 
 
 
For the Year Ended December 31,
 
 
2012
 
 
2011
 
 
2010
Stock option compensation expense recognized in:
 
 
 
 
 
 
 
 
Cost of service
 
$
305
 
 
$
222
 
 
$
168
 
Cost of software and others
 
 
25
 
 
 
28
 
 
 
1
 
Research and development
 
 
1,004
 
 
 
806
 
 
 
588
 
Sales and marketing
 
 
478
 
 
 
581
 
 
 
693
 
General and administrative
 
 
2,464
 
 
 
2,088
 
 
 
1,881
 
 
$
4,276
 
 
$
3,725
 
 
$
3,331
 
ESPP compensation expense recognized in:
 
 
 
 
 
 
 
 
 
 
 
 
Cost of service
 
$
49
 
 
$
23
 
 
$
 
Cost of software and others
 
 
1
 
 
 
1
 
 
 
 
Research and development
 
 
15
 
 
 
10
 
 
 
 
Sales and marketing
 
 
5
 
 
 
5
 
 
 
 
General and administrative
 
 
10
 
 
 
5
 
 
 
 
 
$
80
 
 
$
44
 
 
$
 
RSU compensation expense recognized in:
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative
 
$
169
 
 
$
 
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense included in total costs and expenses
 
$
4,525
 
 
$
3,769
 
 
$
3,331
 
 
Fair Value, Assets Measured on Recurring Basis
In accordance with ASC 820, the following table represents our fair value hierarchy for our financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of December 31, 2012 and 2011 (in thousands):

 As of December 31, 2012
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Total
 
Money market funds
 
$
17,235
 
 
$
 
 
$
 
 
$
17,235
 
Certificates of deposits
 
 
1,879
 
 
 
 
 
 
 
 
 
1,879
 
Commercial paper
 
 
 
 
 
5,745
 
 
 
 
 
 
5,745
 
Corporate notes and bonds
 
 
 
 
 
20,173
 
 
 
 
 
 
20,173
 
U.S. government agency securities
 
 
 
 
 
202
 
 
 
 
 
 
202
 
Total
 
$
19,114
 
 
$
26,120
 
 
$
 
 
$
45,234
 

 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 bonds
 
 
 
 
 
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
 

Summary of changes in fair value of financial assets
The following table provides a summary of changes in fair value of our Level 3 financial assets during the years ended December 31, 2012 and 2011 (in thousands):

 
Year Ended
December 31,
 
 
2012
 
 
2011
 
Beginning balance
 
$
1,111
 
 
$
2,667
 
Sales
 
 
(1,400
)
 
 
(1,400
)
Total gain (loss) included in other comprehensive loss
 
 
289
 
 
 
(156
)
Ending balance
 
$
 
 
$
1,111
 

Summary of Long-lived assets by geographical location
Long-lived assets are attributed to the geographic location in which they are located.  We include in long-lived assets all tangible assets.  Long-lived assets regarding geographic areas are as follows (in thousands):
 
December 31,
2012
2011
United States
$
552
$
418
India
39
43
Total
$
591
$
461