View Filing Data

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2012	Oct. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	QUALYS, INC.
Entity Central Index Key	0001107843
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		31,409,793

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 25,804	$ 24,548
Accounts receivable, net of allowance of $355 and $230 as of September 30, 2012 and December 31, 2011, respectively	23,452	20,750
Prepaid expenses and other current assets	6,502	3,774
Total current assets	55,758	49,072
Restricted cash	112	112
Property and equipment, net	16,896	13,861
Intangible assets, net	2,869	3,175
Goodwill	317	317
Other noncurrent assets	1,884	2,252
Total assets	77,836	68,789
Current Liabilities:
Accounts payable	1,715	2,254
Accrued liabilities	9,085	8,468
Deferred revenues, current	51,693	46,717
Capital lease obligations, current	1,556	1,987
Total current liabilities	64,049	59,426
Deferred revenues, noncurrent	6,152	4,713
Income taxes payable, noncurrent	504	661
Other noncurrent liabilities	1,189	2,134
Capital lease obligations, noncurrent	1,074	2,406
Total liabilities	72,968	69,340
Commitments and contingencies (Note 6)
Convertible preferred stock:
Convertible preferred stock	63,873	63,873
Stockholders' Equity (Deficit):
Common stock, $0.001 par value; 299,900,000 shares authorized; — 5,964,621 and 5,300,288 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	6	5
Additional paid-in capital	17,257	12,927
Accumulated other comprehensive loss	(1,001)	(984)
Accumulated deficit	(75,267)	(76,372)
Total stockholders' equity (deficit)	(59,005)	(64,424)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)	77,836	68,789
Series A convertible preferred stock: $0.001 par value; 48,079,860 shares authorized; 4,766,543 shares issued and outstanding at September 30, 2012 and December 31, 2011; aggregate liquidation preference-$28,774
Convertible preferred stock:
Convertible preferred stock	28,603	28,603
Series B convertible preferred stock: $0.001 par value; 110,314,114 shares authorized; 11,031,387 shares issued and outstanding at September 30, 2012 and December 31, 2011; aggregate liquidation preference—$28,862
Convertible preferred stock:
Convertible preferred stock	28,568	28,568
Series C convertible preferred stock: $0.001 par value; 18,006,026 shares authorized; 1,799,328 shares issued and outstanding at September 30, 2012 and December 31, 2011; aggregate liquidation preference— $6,631
Convertible preferred stock:
Convertible preferred stock	$ 6,702	$ 6,702

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts Receivable	$ 355	$ 230
Preferred Stock, Shares Outstanding	17,597,258	17,597,258
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	299,900,000	299,900,000
Common Stock, Shares, Issued	5,964,621	5,300,288
Common Stock, Shares, Outstanding	5,964,621	5,300,288
Series A convertible preferred stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred stock, shares authorized	48,079,860	48,079,860
Preferred Stock, Shares Issued	4,766,543	4,766,543
Preferred Stock, Shares Outstanding	4,766,543	4,766,543
Preferred Stock, Liquidation Preference, Value	$ 28,774	$ 28,774
Series B convertible preferred stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred stock, shares authorized	110,314,114	110,314,114
Preferred Stock, Shares Issued	11,031,387	11,031,387
Preferred Stock, Shares Outstanding	11,031,387	11,031,387
Preferred Stock, Liquidation Preference, Value	$ 28,862	$ 28,862
Series C convertible preferred stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred stock, shares authorized	18,006,026	18,006,026
Preferred Stock, Shares Issued	1,799,328	1,799,328
Preferred Stock, Shares Outstanding	1,799,328	1,799,328
Preferred Stock, Liquidation Preference, Value	$ 6,631	$ 6,631

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues [Abstract]
Revenues	$ 23,382	$ 19,375	$ 66,763	$ 55,560
Cost of revenues	4,634	3,225	13,423	9,124
Gross profit	18,748	16,150	53,340	46,436
Operating Expenses [Abstract]
Research and development	5,076	4,922	15,325	14,680
Sales and marketing	8,797	7,985	27,827	22,297
General and administrative	3,154	2,249	8,811	6,510
Total operating expenses	17,027	15,156	51,963	43,487
Income from operations	1,721	994	1,377	2,949
Other income (expense), net [Abstract]
Interest expense	(38)	(47)	(153)	(164)
Interest income	1	4	2	10
Other income (expense), net	60	(418)	(44)	101
Total other income (expense), net	23	(461)	(195)	(53)
Income before provision for income taxes	1,744	533	1,182	2,896
Provision for income taxes	77	81	77	291
Net income	1,667	452	1,105	2,605
Net income attributable to common stockholders	$ 415	$ 102	$ 264	$ 576
Net income per share attributable to common stockholders: [Abstract]
Basic (in usd per share)	$ 0.07	$ 0.02	$ 0.05	$ 0.12
Diluted (in usd per share)	$ 0.06	$ 0.02	$ 0.04	$ 0.11
Weighted average shares used in computing net income per share attributable to common stockholders: [Abstract]
Basic (in shares)	5,843	5,137	5,540	5,002
Diluted (in shares)	26,545	24,402	25,972	24,208

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income	$ 1,667	$ 452	$ 1,105	$ 2,605
Foreign currency translation gain (loss), net of zero tax	41	(106)	(17)	(138)
Other comprehensive income (loss), net	41	(106)	(17)	(138)
Comprehensive income	$ 1,708	$ 346	$ 1,088	$ 2,467

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

- Definition

Amount after tax, before reclassification adjustments, resulting from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency, and from transactions whose terms are denominated in a currency other than the entity's functional currency.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32211-110900

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (a-c)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32022-110900

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32157-110900

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 13, 20, 31
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569643-111683

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income	$ 1,105	$ 2,605
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	5,397	3,781
Bad debt expense	182	171
Loss on disposal of property and equipment	3	0
Stock-based compensation	2,583	1,512
Non-cash interest expense	24	27
Accounts receivable	(2,884)	(1,973)
Prepaid expenses and other assets	146	(1,283)
Accounts payable	(542)	676
Accrued liabilities	(1,509)	752
Deferred revenues	6,415	4,724
Income taxes payable	(189)	311
Other noncurrent liabilities	(62)	(16)
Net cash provided by operating activities	10,669	11,287
Cash flows from investing activities:
Purchases of property and equipment, net	(8,104)	(4,250)
Net cash used in investing activities	(8,104)	(4,250)
Cash flows from financing activities:
Principal payments under capital lease obligations	(1,763)	(1,153)
Payment of consideration related to acquisition	(1,000)	0
Proceeds from exercise of stock options	1,998	971
Payments for offering costs in connection with initial public offering	(560)	0
Proceeds from issuance of Series C Preferred Stock	0	128
Net cash used in financing activities	(1,325)	(54)
Effect of exchange rate changes on cash	16	(128)
Net increase in cash	1,256	6,855
Cash at beginning of period	24,548	15,010
Cash at end of period	25,804	21,865
Supplemental Cash Flow Information [Abstract]
Deferred offerings costs incurred but not yet paid	1,973	0
Issuance of common stock for acquisition of license	$ 51	$ 0

The Company and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

The Company and Summary of Significant Accounting Policies

Description of Business

Qualys, Inc. (the “Company”) was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Redwood City, California and has majority-owned subsidiaries throughout the world. The Company is a pioneer and leading provider of cloud security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its QualysGuard Cloud Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2011, included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three and nine month periods ended September 30, 2012 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2012 or for any other future annual or interim period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Prospectus dated September 27, 2012, filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933.

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications did not change previously reported total assets, liabilities, convertible preferred stock, stockholders' equity (deficit), income from operations or net income.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, which are located in Brazil, Canada, France, Germany, Hong Kong, India, Japan, Mexico, Singapore, the United Arab Emirates and the United Kingdom. All significant intercompany transactions and balances have been eliminated upon consolidation.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, the valuation of accounts receivable, goodwill and intangible assets, common stock, stock-based compensation and the valuation allowances associated with deferred tax assets. Actual results could differ from those estimates and such differences may be material to the accompanying condensed consolidated financial statements.

Convertible Preferred Stock

A sale of all or substantially all of the Company’s assets or merger or consolidation of the Company with another entity is treated as a liquidation unless, following such transaction, the Company’s stockholders directly or indirectly own, in the aggregate, more than 50% of the total voting power of the surviving or acquiring entity. These liquidation provisions and the extent of preferred stock holdings resulted in the preferred stock having redemption features that were not solely in the control of the Company. Because a potential purchaser could have acquired a majority of the outstanding voting stock, triggering a redemption that was outside of the Company’s control, all shares of convertible preferred stock were presented outside of permanent equity in the accompanying condensed consolidated balance sheets as of September 30, 2012 and December 31, 2011.

On October 3, 2012, immediately prior to the closing of the Company’s initial public offering ("IPO"), all outstanding shares of convertible preferred stock converted into an equivalent number of shares of common stock. The related carrying value of the convertible preferred stock of $63.9 million was reclassified to common stock and additional paid-in capital at the time of the conversion. See Note 13 for additional information regarding the Company's IPO.

Concentration of Credit Risk

The Company deposits its cash balances with major financial institutions. Cash balances with any one institution at times may be in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk.

Credit risk with respect to accounts receivable is dispersed due to the large number of customers. In addition, the Company’s credit risk is mitigated by the relatively short collection period. Collateral is not required for accounts receivable. The Company maintains an allowance for potential credit losses based upon the expected collectability of accounts receivable. The Company writes off its receivables when collectability is deemed to be doubtful. As of September 30, 2012, no customer or channel partner accounted for more than 10% of the Company's accounts receivable balance. One channel partner accounted for 13% of the Company’s accounts receivable balance as of December 31, 2011.

Cash

Cash includes highly liquid investments with original maturities of three months or less when acquired. These investments are stated at cost, which approximates fair market value. The Company’s balance of $25,804,000 and $24,548,000 at September 30, 2012 and December 31, 2011, respectively, consists entirely of cash held in banks.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts represents the Company’s best estimate of the amount of probable credit losses and is determined based on a review of existing accounts receivable by aging category to identify significant customers or invoices with collectability issues. For those invoices not specifically reviewed, the reserve is calculated based on the age of the receivable.

Any change in the assumptions used in analyzing a specific account receivable may result in an additional provision for doubtful accounts being recognized in the period in which the change occurs. When the Company ultimately concludes that a receivable is uncollectible, the balance is written off against the allowance for doubtful accounts. Payments subsequently received on such receivables are credited back to the allowance for doubtful accounts.

Deferred Offering Costs

Deferred offering costs relating to the Company’s IPO are capitalized in prepaid expenses and other current assets on the condensed consolidated balance sheet and consist primarily of legal, accounting, printing and filing fees. The deferred offering costs will be offset against the proceeds from the IPO, which closed on October 3, 2012. As of September 30, 2012, the Company had capitalized $2,533,000 of deferred offering costs.

Restricted Cash

Restricted cash includes amounts maintained with banks as security deposits for certain leased facilities and, accordingly, is classified as a non-current asset.

Property and Equipment, net

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized on a straight-line basis over the lesser of the estimated useful life of the asset or the lease term. Property under capital lease is amortized over the term of the respective lease or the estimated useful life of the asset, whichever is shorter.

The Company purchases physical scanner appliances and other computer equipment that are provided on a subscription basis. This equipment is recorded within property and equipment on the accompanying condensed consolidated balance sheet, and the depreciation is recorded to cost of revenues over an estimated useful life of three years.

Upon retirement or disposal, the cost of assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Repairs and maintenance that do not extend the life of an asset are expensed as incurred and major improvements are capitalized as property and equipment.

Impairment of Long-Lived Assets

The Company evaluates its long-lived assets, which consist of property and equipment, and intangible assets subject to amortization, for indicators of possible impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment exists if the carrying amounts of such assets exceed the estimates of future undiscounted cash flows expected to be generated by such assets. Should an impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over the asset’s estimated fair value. As of September 30, 2012 and December 31, 2011, the Company has not written down any of its long-lived assets as a result of impairment.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination and is not subject to amortization. Goodwill and other intangible assets with indefinite lives are not amortized, but tested for impairment annually or if certain circumstances indicate a possible impairment may exist. These tests are performed at the reporting unit level. The Company’s operations are organized as one reporting unit.

In testing for a potential impairment of goodwill, the Company first performs a qualitative assessment of its reporting units to determine if it is more likely than not (a more than 50% likelihood) that the fair value of the reporting unit is less than its carrying amount. If the fair value is not considered to be less than the carrying amount, no further evaluation is necessary. The Company performed the annual qualitative assessment for the year ended December 31, 2011 and concluded there was no impairment of goodwill.

If the qualitative assessment indicates there is more than a 50% likelihood that the fair value is less than the carrying amount, the Company would perform a two-step test. In the first step, the carrying value of the reporting unit is compared to its estimated fair value. If the estimated fair value is less than the carrying value, then potential impairment exists. In the second step, the Company calculates the amount of any impairment by determining the implied fair value of goodwill using a hypothetical purchase price allocation, similar to that which would be applied if it were an acquisition and the purchase price was equivalent to fair value as calculated in the first step. Impairment is equivalent to any excess of goodwill carrying value over its implied fair value.

Certain other intangible assets acquired are amortized over their estimated useful lives and tested for impairment if certain circumstances indicate an impairment may exist. The Company’s intangible assets are comprised primarily of existing technology, patent license, and non-competition agreements and are amortized over periods ranging from three to fourteen years on a straight-line basis.

Software Development Costs

The Company capitalizes qualifying software costs developed or obtained for internal use. These costs generally include internal costs, such as payroll and benefits of those employees directly associated with the development of the software. Total capitalized development costs are $251,000 at September 30, 2012 and December 31, 2011. The capitalized development costs are recorded within other noncurrent assets and were fully amortized at September 30, 2012 and December 31, 2011.

Derivative Financial Instruments

Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts to mitigate the impact of foreign currency fluctuations of certain non-U.S. dollar denominated asset positions, primarily cash and accounts receivable. These contracts are recorded within prepaid expenses and other current assets in the condensed consolidated balance sheets. Gains and losses resulting from currency exchange rate movements on these forward contracts are recognized in other income (expense) in the accompanying condensed consolidated statements of operations in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. The Company does not enter into financial instruments for trading or speculative purposes.

At September 30, 2012, the Company had one outstanding forward contract with a notional amount of 7,600,000 Euros, which expired on October 31, 2012. At December 31, 2011, the Company had one outstanding forward contract with a notional amount of 3,680,000 Euros, which expired on January 31, 2012. These contracts were entered into at the end of each period, and thus the fair value of the contracts was $0 at September 30, 2012 and December 31, 2011. The Company began to use these forward contracts in December 2011. The Company recorded a loss of $362,000 and $91,000 from these contracts, which partially offset the foreign currency transaction gains of $415,000 and $49,000 during the three and nine months ended September 30, 2012, respectively. There were no gains or losses from forward contracts in the three and nine months ended September 30, 2011. These derivatives were not designated as hedges.

Stock-Based Compensation

The Company recognizes stock-based compensation expense for its employee stock options over the requisite service period for awards of equity instruments based on the grant-date fair value of those awards expected to vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates.

Option grants to non-employees are accounted for at the fair value of the equity instrument issued, as calculated using the Black-Scholes model. The stock-based compensation expense for non-employees is subject to periodic adjustments as the options vest, and the expense is recognized over the period in which services are received.

Revenue Recognition

The Company derives revenues from subscriptions that require customers to pay a fee in order to access the Company’s cloud solutions. Customers generally enter into one year renewable subscriptions. The subscription fee entitles the customer to an unlimited number of scans for a specified number of networked devices or web applications and, if requested by a customer as part of their subscription, a specified number of physical or virtual scanner appliances. The Company’s physical and virtual scanner appliances are requested by certain customers as part of their subscriptions in order to scan IT infrastructures within their firewalls and do not function without, and are not sold separately from, subscriptions for the Company’s solutions. Customers are required to return physical scanner appliances if they do not renew their subscriptions.

The Company recognizes revenues when all of the following conditions are met:


•	There is persuasive evidence of an arrangement.


•	The service has been provided to the customer.


•	The collection of the fees is reasonably assured.


•	The amount of fees to be paid by the customer is fixed or determinable.

Subscriptions are recognized ratably over the subscription period. The Company recognizes revenues from subscriptions that include physical scanner appliances and other computer equipment ratably over the period of the subscription. Because the customer’s access to the Company’s cloud solutions are delivered at the same time as or within close proximity to the delivery of physical scanner appliances and the terms are commensurate for these services and equipment, the Company considers these elements as a single unit of accounting recognized ratably over the subscription period.

Beginning on January 1, 2011, the Company adopted authoritative accounting guidance on multiple-element arrangements, using the prospective method for all arrangements entered into or materially modified from the date of adoption. As a result of implementing this authoritative guidance, the Company’s revenues for the three and nine months ended September 30, 2012 and 2011 were not materially different from what would have been recognized under the previous guidance for multiple-element arrangements. The Company does not expect that the adoption of this standard will have a significant impact on its revenue recognition in the future.

Deferred revenues consist of revenues billed or received that will be recognized in the future under subscriptions existing at the balance sheet date. The current portion of deferred revenues represents amounts that are expected to be recognized within one year of the balance sheet date.

Costs of shipping and handling charges incurred by the Company associated with physical scanner appliances and other computer equipment are included in cost of revenues.

Sales taxes and other taxes collected from customers to be remitted to government authorities are excluded from revenues.

Advertising Expenses

Advertising costs are expensed as incurred and include costs of advertising, trade show costs and promotional materials. For the three months ended September 30, 2012 and 2011, the Company incurred advertising costs of $830,000 and $1,021,000, respectively, and for the nine months ended September 30, 2012 and 2011, such costs were $2,983,000 and $2,933,000, respectively.

Income Taxes

The Company uses the asset and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using statutory tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. Tax positions are based upon their technical merits, relevant tax law and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax positions. A tax position is only recognized in the financial statements if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments that could result in recognition of additional tax benefits or additional charges to the tax provision and may not accurately reflect the actual outcomes. The Company’s policy is to recognize interest and penalties relating to unrecognized tax benefits as a component of the provision for income taxes.

Other Comprehensive Income (Loss)

Other comprehensive income (loss) consists of foreign currency translation adjustments, which are reflected net of tax, that are not included in the Company’s net income. Total comprehensive income includes net income and other comprehensive income (loss) and is included in the condensed consolidated statements of comprehensive income.

Foreign Currency Translation and Transactions

The Company’s operations are conducted in various countries around the world and the financial statements of its foreign subsidiaries are reported in the applicable local foreign currencies (functional currencies). Financial information is translated from the applicable functional currency to the U.S. dollar, the reporting currency, for inclusion in the Company’s condensed consolidated financial statements. Accordingly, the assets and liabilities of the Company’s foreign subsidiaries are translated using exchange rates in effect as of the balance sheet date, and income and expenses are translated at average exchange rates during the period. Resulting translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity (deficit).

Foreign currency transaction gains or losses are recognized in other income (expense). The Company recorded foreign currency transaction gains (losses) of $53,000 and $(418,000) during the three months ended September 30, 2012 and 2011, respectively, and $(42,000) and $97,000 during the nine months ended September 30, 2012 and 2011, respectively.

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including cash, accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.

The Company has an asset that is valued in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities.

Level 2—Valuations based on other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, 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—Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

At September 30, 2012 and December 31, 2011, a derivative financial instrument, consisting of a foreign currency forward contract, was valued at $0 as the contract was entered into on the last day of the period. This instrument was valued using Level 2 inputs.

Net Income Per Share Attributable to Common Stockholders

The Company computes net income attributable to common stockholders using the two-class method required for participating securities. Convertible preferred stock and common stock subject to repurchase resulting from the early exercise of stock options are considered to be participating securities since they contain non-forfeitable rights to dividends or dividend equivalents in the event the Company declares a dividend for common stock. In accordance with the two-class method, earnings allocated to these participating securities are subtracted from net income after deducting preferred stock dividends, if any, to determine total undistributed earnings to be allocated to common stockholders. The holders of our convertible preferred stock do not have a contractual obligation to share in our net losses and such shares are excluded from the computation of basic earnings per share in periods of net loss.

Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted average common shares outstanding. In computing diluted net income attributable to common stockholders, undistributed earnings are reallocated to reflect the potential impact of dilutive securities. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of potentially dilutive common shares, which comprise outstanding stock options, warrants, convertible preferred stock and contingently issuable shares related to an acquisition. The dilutive potential common shares are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, warrants, convertible preferred stock and contingently issuable shares related to an acquisition are excluded from the computation of diluted net income per common share in periods in which the effect would be antidilutive.

Recent Accounting Pronouncements

Under the Jumpstart Our Business Startups Act (the "JOBS Act"), the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required from non-emerging growth companies.

In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement, which generally represents clarifications of ASC Topic 820, Fair Value Measurement, but also includes some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. ASU 2011-04 results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 should be applied prospectively and is effective for annual periods beginning after December 15, 2011. Early adoption is not permitted. The Company does not expect the adoption of ASU 2011-04 to have a material impact on its consolidated financial statements.

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. This newly issued accounting standard requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions executed under a master netting or similar arrangement and was issued to enable users of financial statements to understand the effects or potential effects of those arrangements on its financial position. This ASU is required to be applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. As this accounting standard only requires enhanced disclosure, the adoption of this standard is not expected to have an impact the Company’s financial position or results of operations.

In July 2012, the FASB issued ASU 2012-02, Intangibles—Goodwill and Other (Topic 350)—Testing Indefinite-Lived Intangible Assets for Impairment. This standard allows entities to use a qualitative approach to test indefinite-lived intangible assets for impairment. ASU 2012-02 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not (a more than 50% likelihood) that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If the fair value is not considered to be less than the carrying amount, no further evaluation is necessary. If there is more than 50% likelihood the fair value is less than the carrying amount, it is necessary to perform the currently prescribed quantitative impairment test by comparing the fair value of the indefinite-lived intangible asset with its carrying value. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012 and earlier adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

Reverse Stock Split

In September 2012, the Company’s board of directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation effecting a one-for-ten reverse stock split of the Company’s issued and outstanding shares of common and convertible preferred stock. The par value of the common and convertible preferred stock was not adjusted as a result of the reverse stock split. All issued and outstanding common stock, convertible preferred stock, warrants for convertible preferred stock, options for common stock, contingently issuable shares of common stock and per share amounts contained in the Company’s condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented.

Restatement of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2012

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

The Company has restated its condensed consolidated balance sheet as of December 31, 2011 to reflect the correction of an error in the 2010 provision for income taxes. The restatement relates to the tax benefit resulting from a reduction of the liability for uncertain tax positions upon the lapse of the statute of limitations for the 2007 tax year of its French subsidiary. The Company did not release the liability at December 31, 2010 due to an error in the determination of when the statute of limitations would expire.

The following table presents the impact of the restatement adjustment on the Company’s condensed consolidated balance sheet as of December 31, 2011:



	Balance as of December 31, 2011
	As Previously Reported			Effect of Restatement			As Restated
	(in thousands)
Income taxes payable, noncurrent	$	1,101		$	(440	)	$	661
Accumulated deficit - beginning of year	(78,766		)	440			(78,326		)
Accumulated deficit - end of year	(76,812		)	440			(76,372		)

This restatement did not have a net impact on the cash provided by (used in) the Company’s operating, investing or financing activities for the nine months ended September 30, 2011.

The accompanying notes to condensed consolidated financial statements have been updated, as necessary, to reflect the impact of the restatement adjustment.

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References + Details

Property and Equipment

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and Equipment, Net

Property and equipment, which includes assets under capital lease, consists of the following:



	September 30,			December 31,
	2012			2011
	(in thousands)
Computer equipment	$	17,144		$	12,483
Computer software	5,913			5,720
Furniture, fixtures and equipment	1,438			1,330
Scanner appliances	15,894			13,394
Leasehold improvements	1,623			1,418
Total property and equipment	42,012			34,345
Less: accumulated depreciation and amortization	(25,116		)	(20,484		)
Property and equipment, net	$	16,896		$	13,861

Assets held under capital lease included in computer equipment and software at September 30, 2012 and December 31, 2011 totaled approximately $8,053,000. The related accumulated depreciation at September 30, 2012 and December 31, 2011 totaled $4,558,000 and $3,313,000, respectively. The capital lease obligations are secured by the related equipment and software.

Physical scanner appliances and other computer equipment that are or will be subject to subscriptions by customers have a net carrying value of $4,905,000 and $3,436,000 at September 30, 2012 and December 31, 2011, respectively, including assets that have not been placed in service of $1,170,000 and $210,000, respectively. Other fixed assets not placed in service at September 30, 2012 and December 31, 2011, included in computer equipment and leasehold improvements, relate to new information technology systems and tenant improvements of approximately $1,315,000 and $500,000 respectively. Depreciation and amortization expense relating to property and equipment, including capitalized leases, was $1,739,000 and $1,121,000 for the three months ended September 30, 2012 and 2011, respectively, and $5,066,000 and $3,466,000 for the nine months ended September 30, 2012 and 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Business Combination	9 Months Ended
Business Combination	Sep. 30, 2012
Business Combinations [Abstract]
Business Combination	Business Combination On August 31, 2010, the Company acquired Nemean Networks, LLC (“Nemean”), a company developing network security solutions for detection and awareness of external intrusions to computer networks. The Company acquired Nemean to provide additional solutions on its cloud platform. The consideration for this acquisition consisted of $3.7 million in cash and common stock, including a non-contingent payment of $1.0 million in cash and 6,250 shares of common stock, both of which occurred in September 2012. The non-contingent cash payment amount was recorded in current liabilities at December 31, 2011 at its net present value. The Company accounted for this transaction as a business combination. In addition, the Company acquired an exclusive license to certain patents in connection with the Nemean acquisition and elected to make an annual payment of $25,000 in September 2012 to a third party in order to maintain the exclusivity of the license. This payment was recorded within prepaid expenses and other current assets and is being amortized over a one-year period. The Company has the option to make such annual payments for nine additional years.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Intangible assets consist primarily of existing technology, patent license and non-competition agreements acquired in business combinations. Acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets.

The carrying values of intangible assets are as follows (in thousands):



				September 30, 2012					December 31, 2011
	Estimated Lives	Cost		Accumulated Amortization			Net Book Value		Accumulated Amortization			Net Book Value
Existing technology	7 years	$	1,910	$	(568	)	$	1,342	$	(364	)	$	1,546
Patent license	14 years	1,339		(199		)	1,140		(127		)	1,212
Non-competition agreements and other	3 years	171		(79		)	92		(49		)	122
Total intangibles subject to amortization		$	3,420	$	(846	)	2,574		$	(540	)	2,880
Intangible assets not subject to amortization							295					295
Total intangible assets, net							$	2,869				$	3,175

Intangibles amortization expense was $103,000 and $101,000 for the three months ended September 30, 2012 and 2011, respectively, and $306,000 and $304,000 for the nine months ended September 30, 2012 and 2011, respectively.

As of September 30, 2012, the Company expects amortization expense in future periods to be as follows (in thousands):



Remainder of 2012	$	106
2013	414
2014	388
2015	381
2016	369
2017 and thereafter	916
Total expected future amortization expense	$	2,574

Goodwill, which is not subject to amortization, totaled $317,000 as of September 30, 2012 and December 31, 2011. The Company performed its annual goodwill impairment test for the year ended December 31, 2011 using a qualitative assessment and concluded there was no impairment of goodwill as the qualitative assessment performed did not indicate that it is more likely than not that the single reporting unit fair value is less than its carrying value.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Line of Credit

In March 2009, the Company entered into an equipment line of credit of $1,500,000. The line of credit allowed the Company to borrow to purchase specific equipment. Each advance was immediately amortizable and payable in 30 monthly installments, with the final maturity date to be no later than September 2012. Each advance was secured by the specific equipment and carried an interest rate of 9.0%. In March 2010, the Company amended its equipment line of credit. The amount available for draws at the time of the amendment was increased by $775,000 and was available through February 2011. Each advance was immediately amortizable and payable in 30 monthly installments, with final maturity date to be no later than August 2013, and carried an interest rate of 7.5%. In December 2010, the Company completed a second amendment to its equipment line of credit. The amount available for draws at the time of the amendment was increased by an additional $1,000,000 and was available through February 2012. Each advance is immediately amortizable and payable in 30 monthly installments, with the final maturity date to be no later than August 2014, and carries an interest rate of 6.5%. At September 30, 2012 and December 31, 2011 the Company had $312,000 and $892,000, respectively, in outstanding borrowings under this line of credit, which are recorded in capital lease obligations in the condensed consolidated balance sheets. The remaining amount available for borrowings at December 31, 2011 was $937,000. The line of credit expired in February 2012, and the Company is not able to draw any further funds from the line of credit.

Leases

The Company leases certain computer equipment and its corporate office facilities under noncancelable operating leases for varying periods through 2019. The Company has also entered into capital lease obligations, with varying interest rates from 1.8% to 9.0%, a portion of which are secured by the related computer equipment and software as of September 30, 2012 and December 31, 2011.

In 2011, the Company entered into a $3,100,000 financing arrangement for computer software, accounted for as a capital lease, with minimum quarterly payments scheduled through 2014. In connection with this transaction, the Company also has minimum obligations for related maintenance and support of $1,785,000 and $2,611,000 at September 30, 2012 and December 31, 2011, respectively, Such obligation for maintenance and support is recorded in current and other noncurrent liabilities in the condensed consolidated balance sheets.

The following are the minimum annual lease payments due under these leases at September 30, 2012:



	Operating Leases		Capital Leases
	(in thousands)
Remainder of 2012	$	526	$	238
2013	2,418		1,370
2014	1,685		1,078
2015	1,441		—
2016	1,448		—
2017 and thereafter	1,453		—
Total minimum lease payments	$	8,971	2,686
Less amount representing interest			(56		)
Present value of minimum payments			2,630
Less current portion			(1,556		)
Capital lease obligations, noncurrent			$	1,074

Rent expense was $714,000 and $616,000 for the three months ended September 30, 2012 and 2011, respectively and $2,058,000 and $1,725,000 for the nine months ended September 30, 2012 and 2011, respectively. Although certain of the operating lease agreements provide for escalating rent payments over the terms of the leases, rent expense under these agreements is recognized on a straight-line basis. As of September 30, 2012 and December 31, 2011, the Company has accrued $284,000 and $346,000, respectively, of deferred rent related to these agreements, which is reflected in other noncurrent liabilities in the accompanying condensed consolidated balance sheets.

Sales and Other Taxes

The Company’s software-as-a-service solutions are subject to sales and other taxes in certain jurisdictions where the Company does business. The Company bills sales and other taxes to customers and remits these to the respective government authorities. For those jurisdictions where the Company has not yet billed sales tax to its customers and believes it may have exposure, it has recorded a provision of $388,000 and $345,000 at September 30, 2012 and December 31, 2011, respectively, which is recorded within accrued liabilities in the condensed consolidated balance sheets. However, taxing jurisdictions have differing rules and regulations, which are subject to varying interpretations that may change over time. Other than the liability that the Company has accrued in its condensed consolidated balance sheets, the Company has been unable to assess the probability, or estimate the amount, of its sales tax exposure, if any. There are no pending reviews at September 30, 2012 of which the outcome is expected to result in sales and other taxes due in excess of accrued liabilities. Management does not anticipate that its sales tax exposure, if any, would have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Indemnifications

The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's by-laws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications.

The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors.

Contingencies

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable a loss has been incurred and such loss can be reasonably estimated. At September 30, 2012, the Company has not recorded any such liabilities in accordance with accounting for contingencies.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity

Common Stock

During the nine months ended September 30, 2012 the Company issued 724,458 shares of common stock, of which 703,440 shares resulted from the exercise of stock options and 21,018 shares were awarded as equity compensation. Additionally, the Company repurchased 60,125 shares of unvested early-exercised stock options.

The Company had reserved shares of common stock for future issuance as follows:



	September 30,	December 31,
	2012	2011
Options outstanding under the stock option plans
2000 Equity Incentive Plan ⁽¹⁾	6,539,099	6,312,041
Options available for future grants under the stock option plans
2000 Equity Incentive Plan	832,838	803,237
2012 Equity Incentive Plan ⁽¹⁾	3,050,000	—
Convertible preferred stock outstanding	17,597,258	17,597,258
Total shares reserved for future issuance	28,019,195	24,712,536

⁽¹⁾See Note 8 for a description of these plans.

Subsequent to September 30, 2012, the Company closed its IPO and issued 7,836,250 shares of common stock on October 3, 2012. Additionally, immediately prior to the closing of the IPO, 17,597,258 outstanding shares of convertible preferred stock converted into an equivalent number of shares of common stock. If the IPO had closed on September 30, 2012, the Company would have had 37,937,228 shares of common stock outstanding on a fully diluted basis, taking into consideration the exercise of 6,539,099 outstanding options as of September 30, 2012. Refer to Note 13 for additional information regarding the Company’s IPO.

Convertible Preferred Stock

As of September 30, 2012, the Company was authorized to issue 176,400,000 shares of convertible preferred stock with a par value of $0.001 per share. The Company had designated 48,079,860 shares as Series A Preferred Stock, 110,314,114 shares as Series B Preferred Stock, and 18,006,026 shares as Series C Preferred Stock (cumulatively referred to as “Series Preferred”).

During 2000 and 2001, the Company issued 1,498,137 shares and 574,998 shares, respectively, of Series A Preferred Stock at an issuance price of $14.00 per share.

During 2003, the Company issued 11,031,387 shares of Series B Preferred Stock at an issuance price of $2.60 per share. Certain of these shares were issued upon the conversion of the Company’s then existing notes payable and related accrued interest at a conversion price per share equal to the price paid by other investors that purchased Series B Preferred Stock for cash.

In connection with the issuance of the Series B Preferred Stock in 2003, holders of Series A Preferred Stock were entitled to additional shares of Series A Preferred Stock in accordance with the antidilution provisions of the Company’s amended certificate of incorporation. The additional shares issued from the recapitalization resulted in a decrease to the average price of Series A Preferred Stock from $14.00 per share at issuance to $6.00 per share.

During 2004, the Company issued 1,729,636 shares of Series C Preferred Stock at an issuance price of $3.76 per share.

On October 3, 2012, all of the 17,597,258 outstanding shares of convertible preferred stock converted into an equivalent number of shares of common stock immediately prior to the closing of the IPO.

Preferred Stock

Effective October 3, 2012, the Company is authorized to issue 20,000,000 shares of undesignated preferred stock with a par value of $0.001 per share.

Dividends

The holders of Series Preferred are entitled to receive dividends, as may be declared by the Board of Directors, at the rate of eight percent of the original issuance price, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like, in preference to holders of any other capital stock. Holders of Series C Preferred Stock are entitled to receive dividends in preference to holders of Series A Preferred Stock and Series B Preferred Stock. Further, holders of Series B Preferred Stock are entitled to receive dividends in preference to holders of Series A Preferred Stock. On October 3, 20102, all of the 17,597,258 outstanding shares of convertible preferred stock converted into an equivalent number of shares of common stock immediately prior to the closing of the IPO.

Conversion

Any share of Series Preferred is convertible at any time, at the option of holder, into fully paid and nonassessable shares of common stock. The number of shares of common stock to which a holder of Series Preferred is entitled upon conversion is the product obtained by multiplying the conversion rate by the number of shares being converted, subject to certain antidilution provisions. The conversion rate is the quotient obtained by dividing the original issuance price by the conversion price. The conversion price is the original issuance price, as adjusted from time to time due to any recapitalizations, dividends, or distributions. As of September 30, 2012 and December 31, 2011, Series Preferred shares are convertible at a ratio of 1-to-1 into common stock.

Each share of Series Preferred automatically converts into shares of common stock at the effective conversion rate immediately upon the earlier to occur of (i) the Company’s sale of its common stock in a bona fide firm commitment underwriting pursuant to a registration statement filed under the Securities Act of 1933, as amended, at the public offering price of not less than $12.00 per share (as adjusted to reflect subsequent stock dividends, stock splits, or recapitalizations) and $20 million in the aggregate or (ii) the date specified by written consent of agreement of the holders of a majority of the outstanding shares of Series C Preferred Stock. Such conversion took place on October 3, 2012 immediately prior to the closing of the IPO.

Liquidation Rights

Initial Distribution—Series C Preferred

In the event of any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, the holders of Series C Preferred Stock are entitled to receive a liquidation payment prior and in preference to any distribution of any of the assets of the Company to holders of Series B Preferred Stock, Series A Preferred Stock, and common stock by reason of their ownership. The liquidation rights will be in an amount per share of Series C Preferred Stock equal to the original issuance price, adjusted for any stock dividends, combinations, or splits with respect to such shares and amounts equal to declared but unpaid dividends on such shares. At liquidation, if the assets of the Company are insufficient to make payment in full to all holders of Series C Preferred Stock outstanding at that date, then such assets shall be distributed among the holders of Series C Preferred Stock, ratably in proportion to the full amounts to which they would otherwise be respectively entitled.

Secondary Distribution—Series B Preferred

After payment of the full liquidation preference of the Series C Preferred Stock, holders of Series B Preferred Stock are entitled to receive a liquidation payment prior and in preference to any distribution of any of the assets of the Company to holders of Series A Preferred Stock and common stock. The liquidation rights will be in an amount per share of Series B Preferred Stock equal to the original issuance price, adjusted for any stock dividends, combinations, or splits with respect to such shares and amounts equal to declared but unpaid dividends on such shares. At liquidation, if the remaining assets of the Company are insufficient to make payment in full to all holders of Series B Preferred Stock outstanding at that date, then such assets shall be distributed among the holders of Series B Preferred Stock, ratably in proportion to the full amounts to which they would otherwise be respectively entitled.

Tertiary Distribution—Series A Preferred

After full payment of the liquidation preference of the Series C Preferred Stock and Series B Preferred Stock, the holders of Series A Preferred Stock are entitled to receive a liquidation payment prior and in preference to any distribution of any assets of the Company to holders of common stock. The liquidation rights will be in an amount per share of Series A Preferred Stock equal to the original issuance price, adjusted for any stock dividends, combinations, or splits with respect to such shares and amounts equal to declared but unpaid dividends on such shares. At liquidation, if the remaining assets of the Company are insufficient to make payment in full to all holders of Series A Preferred Stock outstanding at that date, then such assets shall be distributed among the holders of Series A Preferred, ratably in proportion to the full amounts to which they would otherwise be entitled.

Remaining Assets Distribution—Common Stock

After full payment of the liquidation preference of the Series Preferred stockholders, any remaining assets of the Company legally available shall be distributed among the holders of common stock on a pro rata basis based on the number of shares of common stock held by each.

Voting

The holder of each share of Series Preferred is entitled to the number of votes equal to the number of shares of common stock into which each share of preferred stock can be converted.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Employee Stock and Benefit Plans

9 Months Ended

Sep. 30, 2012

Employee Stock and Benefit Plans [Abstract]

Employee Stock and Benefit Plans

Stock Options

2000 Equity Incentive Plan

Under the 2000 Equity Incentive Plan (the "2000 Plan"), the Company has been authorized to grant to eligible participants either incentive stock options (“ISOs”) or nonstatutory stock options (“NSOs”) to purchase up to 11,987,853 shares of common stock. The ISOs may be granted at a price per share not less than the fair market value at the date of grant. The NSOs may be granted at a price per share not less than 85% of the fair market value at the date of grant. Options granted to date are immediately exercisable, and unvested shares are subject to repurchase by the Company.

Options granted generally vest over a period of up to four years, with a maximum term of ten years. Upon termination of employment of an option holder, the Company has the right to repurchase at the original purchase price any issued but unvested common shares. At September 30, 2012 and December 31, 2011, there were 58,534 and 76,437 shares, respectively, that were subject to the Company’s right to repurchase. Shares repurchased by the Company are added to the pool of options available for future grant. The Company repurchased 3,334 unvested common shares in the three months ended September 30, 2011, and 60,125 and 10,001 unvested common shares in the nine months ended September 30, 2012 and 2011, respectively. There were no shares repurchased during the three months ended September 30, 2012. The amounts paid for these shares purchased under an early exercise of stock options are not reported as a component of stockholders’ equity (deficit) until those shares vest. The amounts received in exchange for these shares totaled $358,000 and $414,000 as of September 30, 2012 and December 31, 2011, respectively, have been recorded as an accrued liability in the accompanying condensed consolidated balance sheets and will be reclassified to common stock and additional paid-in capital as the shares vest.

Common shares purchased under the Plan are subject to certain restrictions, including the right of first refusal by the Company for sale or transfer of these shares to third parties. The Company’s right of first refusal terminates upon completion of an initial public offering of common stock.

Subsequent to September 30, 2012, the 2000 Plan was terminated in connection with the closing of the IPO, and accordingly, no shares are currently available for issuance under the 2000 Plan. The 2000 Plan continues to govern outstanding awards granted thereunder.

2012 Equity Incentive Plan

The 2012 Equity Incentive Plan (the "2012 Plan") was adopted and approved in September 2012 and became effective on September 26, 2012. Under the 2012 Plan, the Company has been authorized to grant to eligible participants ISOs, NSOs, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares equivalent to up to 3,050,000 shares of common stock. The number of shares of common stock available for issuance under the 2012 Plan includes an annual increase on January 1 of each year starting on January 1, 2014 by an amount equal to the least of 3,050,000 shares; 5% of the outstanding shares of stock as of the last day of our immediately preceding fiscal year; or an amount determined by the board of directors. Incentive stock options may only be granted to employees and any subsidiary corporations' employees. All other awards may be granted to employees, directors and consultants and our subsidiary corporations' employees and consultants. As of September 30, 2012, no shares had been granted under the 2012 Plan.

Stock-based employee compensation is included in the condensed consolidated statements of income as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(in thousands)
Cost of revenues	$	68	$	44	$	191	$	94
Research and development	167		118		461		334
Sales and marketing	306		173		746		399
General and administrative	244		204		723		603
Total stock-based employee compensation	$	785	$	539	$	2,121	$	1,430

Compensation cost is recognized on a straight-line basis over the service period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

As of September 30, 2012 and December 31, 2011, the Company had $5,949,000 and $4,832,000, respectively, of total unrecognized employee compensation cost related to nonvested awards that it expects to recognize over a weighted-average period of 3 years.

The fair value of each option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2012	2011	2012	2011
Expected term (in years)	5.3 - 6.0	5.6	5.3 - 6.0	5.6
Volatility	53%	55%	53%	55%
Risk-free interest rate	0.6% - 0.7%	1.0% - 1.6%	0.6% - 0.8%	1.0% - 2.3%
Dividend yield	—	—	—	—

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected term at the grant date. Volatility is based on historical volatility of several public entities that are similar to the Company, as the Company does not have sufficient historical transactions in its own shares on which to base expected volatility. The Company has not historically issued any dividends and does not expect to in the future.

The Company records compensation representing the fair value of stock options granted to non-employees. Stock-based non-employee compensation was $242,000 and $11,000 for the three months ended September 30, 2012 and 2011, respectively, and $431,000 and $71,000 for the nine months ended September 30, 2012 and 2011, respectively. Non-employee stock-based compensation is recognized over the vesting periods of the options. The value of options granted to non-employees is remeasured as they vest over a performance period.

A summary of the Company’s stock option activity is as follows:



	Outstanding Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
						(in thousands)
Balance as of December 31, 2011	6,312,041		$	3.36	6.9	$	16,012
Granted	1,322,906		8.39
Exercised	(703,459	)	2.84
Canceled	(392,389	)	6.85
Balance as of September 30, 2012	6,539,099		4.23		7.0	$	64,953
Vested and expected to vest - September 30, 2012	6,100,152		4.00		6.9
Exercisable - September 30, 2012	6,537,727		4.23		7.0

401(k) Plan

The Company’s 401(k) Plan (the “401(k) Plan”) was established in 2000 to provide retirement and incidental benefits for its employees. As allowed under section 401(k) of the Internal Revenue Code, the 401(k) Plan provides tax-deferred salary deductions for eligible employees. Contributions to the 401(k) Plan are limited to a maximum amount as set periodically by the Internal Revenue Service. To date, the Company has not made any contributions to the 401(k) Plan.

Other Income (Expense), Net

9 Months Ended

Sep. 30, 2012

Other Income and Expenses [Abstract]

Other Income (Expense), Net

Other income (expense), net consists of the following:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2012		2011			2012			2011
	(in thousands)
Foreign exchange gains (losses)	$	53	$	(418	)	$	(42	)	$	97
Other income (expense)	7		—			(2		)	4
Other income (expense), net	$	60	$	(418	)	$	(44	)	$	101

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Income Taxes	The Company computes its provision for income taxes by applying the estimated annual effective tax rate to income from recurring operations and adjusts the provision for discrete items recorded in the period. The Company's effective tax rate for the three and nine months ended September 30, 2012 was 4.4% and 6.5%, respectively. The Company's effective tax rate for the three and nine months ended September 30, 2011 was 15.2% and 10.0%, respectively. The provision for income taxes for the nine months ended September 30, 2012 primarily reflects the provision for income taxes for foreign and state taxes, partially offset by a tax benefit of $0.2 million resulting from the reduction of liability for uncertain tax positions in foreign jurisdictions. The provision for income taxes for the nine months ended September 30, 2011 primarily reflects the provision for income taxes for international operations and state taxes. As of September 30, 2012 and December 31, 2011, unrecognized tax benefits were $1.1 million and $1.2 million, respectively. The total amount of unrecognized tax benefits, if recognized, and in absence of full valuation allowance, would favorably impact the effective tax rate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Segment Information and Information about Geographic Area

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information and Information about Geographic Area

The Company operates in one segment. The Company’s chief operating decision maker (“CODM”) is the Chairman, President and Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States. Revenues by geographic area, based on the location of the customer, are as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(in thousands)
United States	$	16,063	$	13,203	$	45,644	$	38,119
Other	7,319		6,172		21,119		17,441
Total revenues	$	23,382	$	19,375	$	66,763	$	55,560

As of September 30, 2012 and December 31, 2011, property and equipment locations outside the United States were not material.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Net Income Per Share Attributable to Common Stockholders

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Net Income Per Share Attributable to Common Stockholders

The computations for basic and diluted net income per share attributable to common stockholders are as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
	(in thousands)
Numerator:
Net income	$	1,667		$	452		$	1,105		$	2,605
Net income attributable to participating securities	(1,252		)	(350		)	(841		)	(2,029		)
Net income attributable to common stockholders - basic	415			102			264			576
Undistributed earnings reallocated to participating securities	1,249			349			839			2,026
Net income attributable to common stockholders - diluted	$	1,664		$	451		$	1,103		$	2,602
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders - basic	5,843			5,137			5,540			5,002
Effect of potentially dilutive securities:
Convertible preferred stock	17,597			17,597			17,597			17,588
Common stock options	3,105			1,656			2,829			1,604
Warrants	—			—			—			2
Contingently issuable shares related to an acquisition	—			12			6			12
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted	26,545			24,402			25,972			24,208
Net income per share attributable to common stockholders
Basic	$	0.07		$	0.02		$	0.05		$	0.12
Diluted	$	0.06		$	0.02		$	0.04		$	0.11

Potentially dilutive securities not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2012	2011	2012	2011
	(in thousands)
Common stock options	1,108	2,806	1,031	2,828

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2012
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 3, 2012, the Company closed its IPO of 8,711,250 shares of common stock at an offering price of $12.00 per share. The offering included 7,836,250 shares sold and issued by the Company and 875,000 shares sold by selling stockholders. The shares sold in the offering included 1,136,250 shares sold by the Company pursuant to the underwriters’ full exercise of their over-allotment option. The net proceeds to the Company from the offering were approximately $87.5 million after deducting underwriting discounts and commissions, and before deducting total estimated expenses in connection with this offering of approximately $2.5 million. Immediately prior to the closing, all of the Company’s 17,597,258 outstanding shares of convertible preferred stock converted into an equivalent number of shares of common stock. Additionally, on October 3, 2012, the Company filed its Amended and Restated Certificate of Incorporation increasing the number of shares the Company is authorized to issue to 1,000,000,000 shares of common stock and 20,000,000 shares of preferred stock.

The Company and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Basis of presentation

Basis of Presentation

Principles of consolidation

Principles of Consolidation

Use of estimates

Use of Estimates

Convertible preferred stock

Convertible Preferred Stock

Concentration of credit risk

Concentration of Credit Risk

Cash

Cash includes highly liquid investments with original maturities of three months or less when acquired. These investments are stated at cost, which approximates fair market value.

Accounts receivable

Accounts Receivable

Restricted cash

Restricted Cash

Restricted cash includes amounts maintained with banks as security deposits for certain leased facilities and, accordingly, is classified as a non-current asset.

Property and equipment, net

Property and Equipment, net

Impairment of long-lived assets

Impairment of Long-Lived Assets

Goodwill and intangible assets

Goodwill and Intangible Assets

Software development cost

Software Development Costs

Derivative financial instruments

Derivative Financial Instruments

Share-based compensation

Stock-Based Compensation

Revenue recognition

Revenue Recognition

The Company recognizes revenues when all of the following conditions are met:


•	There is persuasive evidence of an arrangement.


•	The service has been provided to the customer.


•	The collection of the fees is reasonably assured.


•	The amount of fees to be paid by the customer is fixed or determinable.

Costs of shipping and handling charges incurred by the Company associated with physical scanner appliances and other computer equipment are included in cost of revenues.

Sales taxes and other taxes collected from customers to be remitted to government authorities are excluded from revenues.

Advertising expenses

Advertising Expenses

Advertising costs are expensed as incurred and include costs of advertising, trade show costs and promotional materials.

Income taxes

Income Taxes

Other comprehensive income (loss)

Other Comprehensive Income (Loss)

Foreign currency translation and transactions

Foreign Currency Translation and Transactions

Fair value measurement

Fair Value Measurement

Net income per share attributable to common stockholders

Net Income Per Share Attributable to Common Stockholders

Recent accounting pronouncements

Recent Accounting Pronouncements

Restatement of Previously Issued Financial Statements (Tables)

9 Months Ended

Sep. 30, 2012

Accounting Changes and Error Corrections [Abstract]

Restatement of previously issued financial statements

The following table presents the impact of the restatement adjustment on the Company’s condensed consolidated balance sheet as of December 31, 2011:



	Balance as of December 31, 2011
	As Previously Reported			Effect of Restatement			As Restated
	(in thousands)
Income taxes payable, noncurrent	$	1,101		$	(440	)	$	661
Accumulated deficit - beginning of year	(78,766		)	440			(78,326		)
Accumulated deficit - end of year	(76,812		)	440			(76,372		)

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References + Details

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property and equipment

Property and equipment, which includes assets under capital lease, consists of the following:



	September 30,			December 31,
	2012			2011
	(in thousands)
Computer equipment	$	17,144		$	12,483
Computer software	5,913			5,720
Furniture, fixtures and equipment	1,438			1,330
Scanner appliances	15,894			13,394
Leasehold improvements	1,623			1,418
Total property and equipment	42,012			34,345
Less: accumulated depreciation and amortization	(25,116		)	(20,484		)
Property and equipment, net	$	16,896		$	13,861

Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying value of intangible assets

The carrying values of intangible assets are as follows (in thousands):



				September 30, 2012					December 31, 2011
	Estimated Lives	Cost		Accumulated Amortization			Net Book Value		Accumulated Amortization			Net Book Value
Existing technology	7 years	$	1,910	$	(568	)	$	1,342	$	(364	)	$	1,546
Patent license	14 years	1,339		(199		)	1,140		(127		)	1,212
Non-competition agreements and other	3 years	171		(79		)	92		(49		)	122
Total intangibles subject to amortization		$	3,420	$	(846	)	2,574		$	(540	)	2,880
Intangible assets not subject to amortization							295					295
Total intangible assets, net							$	2,869				$	3,175

Intangible assets future periods amortization expense

As of September 30, 2012, the Company expects amortization expense in future periods to be as follows (in thousands):



Remainder of 2012	$	106
2013	414
2014	388
2015	381
2016	369
2017 and thereafter	916
Total expected future amortization expense	$	2,574

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments for Capital and Operating Leases

The following are the minimum annual lease payments due under these leases at September 30, 2012:



	Operating Leases		Capital Leases
	(in thousands)
Remainder of 2012	$	526	$	238
2013	2,418		1,370
2014	1,685		1,078
2015	1,441		—
2016	1,448		—
2017 and thereafter	1,453		—
Total minimum lease payments	$	8,971	2,686
Less amount representing interest			(56		)
Present value of minimum payments			2,630
Less current portion			(1,556		)
Capital lease obligations, noncurrent			$	1,074

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Attributable to Parent [Abstract]

Schedule of shares reserved for future issuance

The Company had reserved shares of common stock for future issuance as follows:



	September 30,	December 31,
	2012	2011
Options outstanding under the stock option plans
2000 Equity Incentive Plan ⁽¹⁾	6,539,099	6,312,041
Options available for future grants under the stock option plans
2000 Equity Incentive Plan	832,838	803,237
2012 Equity Incentive Plan ⁽¹⁾	3,050,000	—
Convertible preferred stock outstanding	17,597,258	17,597,258
Total shares reserved for future issuance	28,019,195	24,712,536

Employee Stock and Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2012

Employee Stock and Benefit Plans [Abstract]

Stock-based employee compensation

Stock-based employee compensation is included in the condensed consolidated statements of income as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(in thousands)
Cost of revenues	$	68	$	44	$	191	$	94
Research and development	167		118		461		334
Sales and marketing	306		173		746		399
General and administrative	244		204		723		603
Total stock-based employee compensation	$	785	$	539	$	2,121	$	1,430

Fair value assumptions of options granted to employees

The fair value of each option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2012	2011	2012	2011
Expected term (in years)	5.3 - 6.0	5.6	5.3 - 6.0	5.6
Volatility	53%	55%	53%	55%
Risk-free interest rate	0.6% - 0.7%	1.0% - 1.6%	0.6% - 0.8%	1.0% - 2.3%
Dividend yield	—	—	—	—

Stock option activity

A summary of the Company’s stock option activity is as follows:



	Outstanding Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
						(in thousands)
Balance as of December 31, 2011	6,312,041		$	3.36	6.9	$	16,012
Granted	1,322,906		8.39
Exercised	(703,459	)	2.84
Canceled	(392,389	)	6.85
Balance as of September 30, 2012	6,539,099		4.23		7.0	$	64,953
Vested and expected to vest - September 30, 2012	6,100,152		4.00		6.9
Exercisable - September 30, 2012	6,537,727		4.23		7.0

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Other Income (Expense), Net (Tables)

9 Months Ended

Sep. 30, 2012

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income (Expense)

Other income (expense), net consists of the following:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2012		2011			2012			2011
	(in thousands)
Foreign exchange gains (losses)	$	53	$	(418	)	$	(42	)	$	97
Other income (expense)	7		—			(2		)	4
Other income (expense), net	$	60	$	(418	)	$	(44	)	$	101

Segment Information and Information about Geographic Area (Tables)

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Revenues by geographic area

Revenues by geographic area, based on the location of the customer, are as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(in thousands)
United States	$	16,063	$	13,203	$	45,644	$	38,119
Other	7,319		6,172		21,119		17,441
Total revenues	$	23,382	$	19,375	$	66,763	$	55,560

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Net Income Per Share Attributable to Common Stockholders (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computations for basic and diluted net income per share attributable to common stockholders are as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
	(in thousands)
Numerator:
Net income	$	1,667		$	452		$	1,105		$	2,605
Net income attributable to participating securities	(1,252		)	(350		)	(841		)	(2,029		)
Net income attributable to common stockholders - basic	415			102			264			576
Undistributed earnings reallocated to participating securities	1,249			349			839			2,026
Net income attributable to common stockholders - diluted	$	1,664		$	451		$	1,103		$	2,602
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders - basic	5,843			5,137			5,540			5,002
Effect of potentially dilutive securities:
Convertible preferred stock	17,597			17,597			17,597			17,588
Common stock options	3,105			1,656			2,829			1,604
Warrants	—			—			—			2
Contingently issuable shares related to an acquisition	—			12			6			12
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted	26,545			24,402			25,972			24,208
Net income per share attributable to common stockholders
Basic	$	0.07		$	0.02		$	0.05		$	0.12
Diluted	$	0.06		$	0.02		$	0.04		$	0.11

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Potentially dilutive securities not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2012	2011	2012	2011
	(in thousands)
Common stock options	1,108	2,806	1,031	2,828

The Company and Summary of Significant Accounting Policies (Details) € in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 03, 2012 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Dec. 31, 2011 EUR (€) customer derivative	Sep. 30, 2012 EUR (€) customer derivative	Sep. 30, 2012 USD ($) customer derivative	Dec. 31, 2011 USD ($) customer derivative	Dec. 31, 2010 USD ($)
The company and qualitative disclosure about market risk [Line Items]
Cash			$ 21,865,000		$ 21,865,000			$ 25,804,000	$ 24,548,000	$ 15,010,000
Deferred offering costs								2,533,000
Capitalized development costs								$ 3,420,000
Derivative, number of instruments held \| derivative						1	1	1	1
Foreign currency contract, asset, fair value disclosure								$ 0	$ 0
Derivative instruments not designated as hedging instruments, loss		$ (362,000)		$ (91,000)
Foreign currency transaction gain, before tax		415,000		49,000
Advertising expense		830,000	1,021,000	2,983,000	2,933,000
Foreign currency transaction gain (loss), before tax		$ 53,000	$ (418,000)	$ (42,000)	$ 97,000
Stockholders' equity, reverse stock split				one-for-ten reverse stock split
Stockholders' equity note, stock split, conversion ratio				0.1
Scanner appliances
The company and qualitative disclosure about market risk [Line Items]
Property, plant and equipment, useful Llfe				3 years
Forward contracts
The company and qualitative disclosure about market risk [Line Items]
Derivative, notional amount \| €						€ 3,680	€ 7,600
Customer concentration risk \| Accounts receivable
The company and qualitative disclosure about market risk [Line Items]
Concentration risk, number of customers \| customer						1	0	0	1
Concentration risk, percentage						13.00%
Preferred stock
The company and qualitative disclosure about market risk [Line Items]
Conversion of stock, amount converted	$ 63,900,000
Minimum [Member]
The company and qualitative disclosure about market risk [Line Items]
Property, plant and equipment, useful Llfe				3 years
Finite-lived intangible asset, useful life				3 years
Maximum [Member]
The company and qualitative disclosure about market risk [Line Items]
Property, plant and equipment, useful Llfe				5 years
Finite-lived intangible asset, useful life				14 years
Software and software development costs
The company and qualitative disclosure about market risk [Line Items]
Capitalized development costs								$ 251,000	$ 251,000
Fair Value, Inputs, Level 2
The company and qualitative disclosure about market risk [Line Items]
Foreign currency contract, asset, fair value disclosure								$ 0

Restatement of Previously Issued Financial Statements (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued income taxes, noncurrent	$ 504	$ 661
Accumulated deficit	$ (75,267)	(76,372)	$ (78,326)
As previously reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued income taxes, noncurrent		1,101
Accumulated deficit		(76,812)	(78,766)
Effect of restatement
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued income taxes, noncurrent		(440)
Accumulated deficit		$ 440	$ 440

Property and Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property and equipment	$ 42,012,000		$ 42,012,000		$ 34,345,000
Less: accumulated depreciation and amortization	(25,116,000)		(25,116,000)		(20,484,000)
Property and equipment, net	16,896,000		16,896,000		13,861,000
Capital lease	8,053,000		8,053,000		8,053,000
Capital lease, accumulated depreciation	4,558,000		4,558,000		3,313,000
Depreciation and amortization expense	1,739,000	$ 1,121,000	5,066,000	$ 3,466,000
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment	17,144,000		17,144,000		12,483,000
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment	5,913,000		5,913,000		5,720,000
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment	1,438,000		1,438,000		1,330,000
Scanner appliances
Property, Plant and Equipment [Line Items]
Property and equipment	15,894,000		15,894,000		13,394,000
Scanner applicances and other computer equipment subject to subscription
Property, Plant and Equipment [Line Items]
Property and equipment, net	4,905,000		4,905,000		3,436,000
Scanner appliances and other computer equipment not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	1,170,000		1,170,000		210,000
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	1,623,000		1,623,000		1,418,000
Other fixed assets not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,315,000		$ 1,315,000		$ 500,000

Business Combination (Details) - Nemean Networks, LLC - USD ($) $ in Thousands	1 Months Ended
	Sep. 30, 2012	Aug. 31, 2010
Business Acquisition [Line Items]
Consideration for acquisition		$ 3,700
Non-contingent payment	$ 1,000
Non-contingent payment, number of shares	6,250
Amount Paid to Maintain Exclusive License	$ 25
Amortization Period of Exclusive License Payment	1 year
Number of years for payments on patent license	9 years

- Definition

This element represents the acquisition-date fair value of the total consideration transferred which consists of the sum of the acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree, and the equity interests issued by the acquirer.

+ References + Details

Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Intangible Assets [Line Items]
Cost	$ 3,420		$ 3,420
Accumulated Amortization	(846)		(846)		$ (540)
Net Book Value	2,574		2,574		2,880
Intangible assets not subject to amortization	295		295		295
Total intangible assets, net	2,869		2,869		3,175
Amortization of intangible assets	103	$ 101	306	$ 304
Goodwill	317		$ 317		317
Existing technology
Intangible Assets [Line Items]
Estimated Lives			7 years
Existing technology
Intangible Assets [Line Items]
Cost	1,910		$ 1,910
Accumulated Amortization	(568)		(568)		(364)
Net Book Value	1,342		$ 1,342		1,546
Patent license
Intangible Assets [Line Items]
Estimated Lives			14 years
Cost	1,339		$ 1,339
Accumulated Amortization	(199)		(199)		(127)
Net Book Value	1,140		$ 1,140		1,212
Non-competition agreements and other
Intangible Assets [Line Items]
Estimated Lives			3 years
Cost	171		$ 171
Accumulated Amortization	(79)		(79)		(49)
Net Book Value	$ 92		$ 92		$ 122

Goodwill and Intangible Assets, Net - Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2012	$ 106
2013	414
2014	388
2015	381
2016	369
2017 and thereafter	916
Net Book Value	$ 2,574	$ 2,880

Commitments and Contingencies Line of Credit (Details) - Line of Credit [Member] - USD ($)	1 Months Ended
	Dec. 31, 2010	Mar. 31, 2010	Mar. 31, 2009	Sep. 30, 2012	Dec. 31, 2011
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 1,500,000
Line of Credit, Number of Monthly Payments	30 months	30 months	30 months
Debt Instrument, Interest Rate, Stated Percentage	6.50%	7.50%	9.00%
Line of Credit Facility, Increase in Maximum Borrowing Capacity	$ 1,000,000	$ 775,000
Line of Credit Facility, Amount Outstanding				$ 312,000	$ 892,000
Line of Credit Facility, Remaining Borrowing Capacity					$ 937,000

Commitments and Contingencies Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 714	$ 616	$ 2,058	$ 1,725
Deferred Rent Credit, Noncurrent	$ 284		$ 284		$ 346
Capital Lease Obligations [Member] \| Minimum [Member]
Leased Assets [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.80%		1.80%
Capital Lease Obligations [Member] \| Maximum [Member]
Leased Assets [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	9.00%		9.00%
Capital Addition Purchase Commitments [Member] \| Capital Lease Obligations [Member]
Leased Assets [Line Items]
Debt Instrument, Face Amount					3,100
Maintenance and Support [Member]
Leased Assets [Line Items]
Recorded Unconditional Purchase Obligation	$ 1,785		$ 1,785		$ 2,611

Commitments and Contingencies Leases Table (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remainder of 2012	$ 526
2013	2,418
2014	1,685
2015	1,441
2016	1,448
2017 and thereafter	1,453
Total mimimum lease payments	8,971
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remainder of 2012	238
2013	1,370
2014	1,078
2015	0
2016	0
2017 and thereafter	0
Total minimum lease payments	2,686
Less amount representing interest	56
Present value of minimum payments	2,630
Less current portion	(1,556)	$ (1,987)
Capital lease obligations, noncurrent	$ 1,074	$ 2,406

Commitments and Contingencies Sales and Other Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Sales and excise tax payable, current	$ 388	$ 345

Stockholders' Equity (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended				24 Months Ended	36 Months Ended
Stockholders' Equity (Details) - USD ($)	Oct. 03, 2012	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2004	Dec. 30, 2003	Dec. 31, 2001	Dec. 31, 2000	Dec. 31, 2001	Jan. 01, 2003	Dec. 31, 2011
Stockholders Equity [Line Items]
Options outstanding under the stock option plans		6,539,099		6,539,099								6,312,041
Convertible preferred stock outstanding		17,597,258		17,597,258								17,597,258
Total shares reserved for future issuance		28,019,195		28,019,195								24,712,536
Shares of common stock issued upon conversion of preferred stock		1		1								1
Minimum price per share in public offering to trigger preferred stock conversion (in dollars per share)				$ 12
Aggregate offering proceeds from public offering to trigger preferred stock conversion				$ 20,000,000
2000 Equity Incentive Plan [Member]
Stockholders Equity [Line Items]
Options outstanding under the stock option plans		6,539,099		6,539,099								6,312,041
Options available for future grants under the stock option plans		832,838		832,838								803,237
2012 Equity Incentive Plan [Member]
Stockholders Equity [Line Items]
Options available for future grants under the stock option plans		3,050,000		3,050,000								0
Stock Options [Member]
Stockholders Equity [Line Items]
Shares repurchase of unvested early-exercised stock options		0	(3,334)	(60,125)	(10,001)
Pro forma shares issued
Stockholders Equity [Line Items]
Shares outstanding on fully diluted basis		37,937,228		37,937,228
Common Stock [Member]
Stockholders Equity [Line Items]
Shares issued during period				724,458
Shares repurchase of unvested early-exercised stock options				(60,125)
Common Stock [Member] \| Stock Options [Member]
Stockholders Equity [Line Items]
Shares issued during period from share-based compensation				703,440
Common Stock [Member] \| Other equity compensation
Stockholders Equity [Line Items]
Shares issued during period from share-based compensation				21,018
Convertible Preferred Stock [Member]
Stockholders Equity [Line Items]
Preferred stock, shares authorized		176,400,000		176,400,000
Preferred stock, par value per share (in dollars per share)		$ 0.001		$ 0.001
Series A convertible preferred stock [Member]
Stockholders Equity [Line Items]
Shares issued during period								574,998	1,498,137
Convertible preferred stock outstanding		4,766,543		4,766,543								4,766,543
Preferred stock, shares authorized		48,079,860		48,079,860								48,079,860
Preferred stock, par value per share (in dollars per share)		$ 0.001		$ 0.001								$ 0.001
Price per share of issued stock (in dollars per share)								$ 14.00	$ 14.00	$ 14.00	$ 6.00
Series B convertible preferred stock [Member]
Stockholders Equity [Line Items]
Shares issued during period							11,031,387
Convertible preferred stock outstanding		11,031,387		11,031,387								11,031,387
Preferred stock, shares authorized		110,314,114		110,314,114								110,314,114
Preferred stock, par value per share (in dollars per share)		$ 0.001		$ 0.001								$ 0.001
Price per share of issued stock (in dollars per share)							$ 2.60
Series C convertible preferred stock [Member]
Stockholders Equity [Line Items]
Shares issued during period						1,729,636
Convertible preferred stock outstanding		1,799,328		1,799,328								1,799,328
Preferred stock, shares authorized		18,006,026		18,006,026								18,006,026
Preferred stock, par value per share (in dollars per share)		$ 0.001		$ 0.001								$ 0.001
Price per share of issued stock (in dollars per share)						$ 3.76
Issuance of Equity [Member] \| Subsequent Event [Member]
Stockholders Equity [Line Items]
Preferred stock, shares authorized	20,000,000
Preferred stock, par value per share (in dollars per share)	$ 0.001
IPO [Member] \| Issuance of Equity [Member] \| Subsequent Event [Member] \| Common Stock [Member]
Stockholders Equity [Line Items]
Shares issued during period	7,836,250
IPO [Member] \| Issuance of Equity [Member] \| Subsequent Event [Member] \| Convertible Preferred Stock [Member]
Stockholders Equity [Line Items]
Conversion of stock, shares converted	17,597,258

Employee Stock and Benefit Plans Plan Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unvested shares repurchased (in shares)	0	3,334	60,125	10,001
2000 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	11,987,853		11,987,853
2000 Equity Incentive Plan [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			4 years
Term of award			10 years
Number of shares subject to repurchase (in shares)	58,534		58,534		76,437
Liability for options early exercised	$ 358		$ 358		$ 414
2000 Equity Incentive Plan [Member] \| Stock Options [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award strike price as a percentage of market value	85.00%		85.00%
2012 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	3,050,000		3,050,000
Increase of Number of Shares Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plan annual increase (in shares)	3,050,000		3,050,000
Increase of Percentage of Shares Outstanding Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plan, annual increase, percent of shares outstanding	5.00%		5.00%

Employee Stock and Benefit Plans - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	$ 785	$ 539	$ 2,121	$ 1,430
Unrecognized employee compensation cost	5,949		$ 5,949		$ 4,832
Unrecognized employee compensation cost, period for recognition			3 years
Non-employee share-based compensation expense	242	11	$ 431	71
Cost of revenues (Member)
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	68	44	191	94
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	167	118	461	334
Selling and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	306	173	746	399
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	$ 244	$ 204	$ 723	$ 603

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Employee Stock and Benefit Plans - Fair Value Assumptions, Stock Options (Details) - Stock Options [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		5 years 7 months 6 days		5 years 7 months 6 days
Volatility	53.00%	55.00%	53.00%	55.00%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 3 months 18 days		5 years 3 months 18 days
Risk-free interest rate	0.60%	1.00%	0.60%	1.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years		6 years
Risk-free interest rate	0.70%	1.60%	0.80%	2.30%

Employee Stock and Benefit Plans Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance as of December 31, 2011 (in shares)	6,312,041
Granted (in shares)	1,322,906
Exercised (in shares)	(703,459)
Canceled (in shares)	(392,389)
Balance as of September 30, 2012 (in shares)	6,539,099	6,312,041
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, balance as of December 31, 2011 (in dollars per share)	$ 3.36
Weighted average exercise price, granted (in dollars per share)	8.39
Weighted average exercise price, exercised (in dollars per share)	2.84
Weighted average exercise price, canceled (in dollars per share)	6.85
Weighted average exercise price, balance as of September 30, 2012 (in dollars per share)	$ 4.23	$ 3.36
Weighted average remaining contractual life	7 years 11 days	6 years 10 months 24 days
Aggregate intrinsic value	$ 64,953	$ 16,012
Vested and Expected to vest - September 30, 2012 (in shares)	6,100,152
Exercisable - September 30, 2012 (in shares)	6,537,727
Vested and Expected to vest - September 30, 2012, weighted average exercise price (in dollars per share)	$ 4.00
Exercisable - September 30, 2012, Weighted average exercise price (in dollars per share)	$ 4.23
Vested and Expected to vest - September 30, 2012, weighted average remaining contractual life	6 years 10 months 13 days
Exercisable - September 30, 2012, weighted average remaining contractual life	7 years

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Other Income and Expenses [Abstract]
Foreign exchange gains (losses)	$ 53	$ (418)	$ (42)	$ 97
Other income (expense)	7	0	(2)	4
Otherincome (expense), net	$ 60	$ (418)	$ (44)	$ 101

- Definition

The aggregate foreign currency transaction gain (loss) (both realized and unrealized) included in determining net income for the reporting period. Excludes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. For certain enterprises, primarily banks, that are dealers in foreign exchange, foreign currency transaction gains (losses) may be disclosed as dealer gains (losses).

+ References + Details

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Effective tax rate	4.40%	15.20%	6.50%	10.00%
Tax benefit from reduction of liability for uncertain tax positions			$ 0.2
Unrecognized tax benefits	$ 1.1		$ 1.1		$ 1.2

Segment Information and Information about Geographic Area (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2012 USD ($) segment	Sep. 30, 2011 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			1
Revenues	$ 23,382	$ 19,375	$ 66,763	$ 55,560
United States
Segment Reporting Information [Line Items]
Revenues	16,063	13,203	45,644	38,119
Other
Segment Reporting Information [Line Items]
Revenues	$ 7,319	$ 6,172	$ 21,119	$ 17,441

Net Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Numerator [Abstract]
Net income	$ 1,667	$ 452	$ 1,105	$ 2,605
Net income attributable to participating securities	(1,252)	(350)	(841)	(2,029)
Net income attributable to common stockholders - basic	415	102	264	576
Undistributed earnings allocated to participating securities	1,249	349	839	2,026
Net income available to common stockholders - diluted	$ 1,664	$ 451	$ 1,103	$ 2,602
Denominator [Abstract]
Weighted - average shares used in computing net income per share attributable to common stockholders - basic (in shares)	5,843	5,137	5,540	5,002
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Convertible Preferred Stock (in shares)	17,597	17,597	17,597	17,588
Common Stock Options (in shares)	3,105	1,656	2,829	1,604
Warrants (in shares)	0	0	0	2
Contingently Issuable Shares Related to an Acquisition (in shares)	0	12	6	12
Weighted - Average Shares Used in Computing Net Income Per Share Attributable to Common Stockholders - Diluted (in shares)	26,545	24,402	25,972	24,208
Basic (usd per share)	$ 0.07	$ 0.02	$ 0.05	$ 0.12
Diluted (usd per share)	$ 0.06	$ 0.02	$ 0.04	$ 0.11
Common Stock Options (in shares)	1,108	2,806	1,031	2,828

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions		9 Months Ended
	Oct. 03, 2012	Sep. 30, 2012	Dec. 31, 2011
Subsequent Event [Line Items]
Common Stock, Shares Authorized		299,900,000	299,900,000
Issuance of Equity [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from Issuance Initial Public Offering	$ 87.5
Payments of Stock Issuance Costs	$ (2.5)
Common Stock, Shares Authorized	1,000,000,000
Preferred Stock, Shares Authorized	20,000,000
Common Stock [Member]
Subsequent Event [Line Items]
Shares issued during period		724,458
Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Preferred Stock, Shares Authorized		176,400,000
IPO [Member] \| Common Stock [Member] \| Issuance of Equity [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Shares Sold in Initial Public Offering, Including Existing Shares	8,711,250
Shares sold in initial public offering, including existing shares, price per share	$ 12.00
Shares issued during period	7,836,250
Shares Sold by Existing Stockholders During Initial Public Offering	875,000
IPO [Member] \| Convertible Preferred Stock [Member] \| Issuance of Equity [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Conversion of stock, shares converted	17,597,258
IPO Overallotment [Member] \| Common Stock [Member] \| Issuance of Equity [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Shares issued during period	1,136,250