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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2012	Feb. 28, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	QUALYS, INC.
Entity Central Index Key	0001107843
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		31,547,650
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float	$ 216.6

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 34,885	$ 24,548
Short-term Investments	83,547	0
Accounts receivable, net of allowance of $331 and $230 at December 31, 2012 and 2011, respectively	24,545	20,750
Prepaid expenses and other current assets	4,377	3,774
Total current assets	147,354	49,072
Restricted cash	114	112
Property and equipment, net	18,148	13,861
Intangible assets, net	2,811	3,175
Goodwill	317	317
Other noncurrent assets	1,574	2,252
Total assets	170,318	68,789
Current Liabilities:
Accounts payable	2,031	2,254
Accrued liabilities	7,803	8,468
Deferred revenues, current	56,497	46,717
Capital lease obligations, current	1,183	1,987
Total current liabilities	67,514	59,426
Deferred revenues, noncurrent	8,616	4,713
Income taxes payable, noncurrent	594	661
Other noncurrent liabilities	1,231	2,134
Capital lease obligations, noncurrent	808	2,406
Total liabilities	78,763	69,340
Commitments and contingencies
Convertible preferred stock:
Convertible preferred stock	0	63,873
Stockholders' Equity (Deficit):
Preferred stock: $0.001 par value; 20,000,000 shares authorized, no shares issued and outstanding at December 31, 2012; no shares authorized, issued and outstanding at December 31, 2011	0	0
Common stock, $0.001 par value; 1,000,000,000 shares authorized, 31,420,028 shares issued and outstanding at December 31, 2012; 299,900,000 shares authorized, 5,300,288 shares issued and outstanding at December 31, 2011	31	5
Additional paid-in capital	166,651	12,927
Accumulated other comprehensive loss	(1,035)	(984)
Accumulated deficit	(74,092)	(76,372)
Total stockholders’ equity (deficit)	91,555	(64,424)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)	170,318	68,789
Series A convertible preferred stock: $0.001 par value; no shares authorized, issued and outstanding at December 31, 2012; 48,079,860 shares authorized, 4,766,543 shares issued and outstanding at December 31, 2011; aggregate liquidation preference—$0 and $28,774 at December 31, 2012 and 2011
Convertible preferred stock:
Convertible preferred stock	0	28,603
Series B convertible preferred stock: $0.001 par value; no shares authorized, issued and outstanding at December 31, 2012; 110,314,114 shares authorized, 11,031,387 shares issued and outstanding at December 31, 2011; aggregate liquidation preference—$0 and $28,862 at December 31, 2012 and 2011
Convertible preferred stock:
Convertible preferred stock	0	28,568
Series C convertible preferred stock: $0.001 par value; no shares authorized, issued and outstanding at December 31, 2012; 18,006,026 shares authorized, 1,799,328 shares issued and outstanding at December 31, 2011; aggregate liquidation preference— $0 and $6,631 at December 31, 2012 and 2011
Convertible preferred stock:
Convertible preferred stock	$ 0	$ 6,702

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts Receivable	$ 331	$ 230
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	1,000,000,000	299,900,000
Common Stock, Shares, Issued	31,420,028	5,300,288
Common Stock, Shares, Outstanding	31,420,028	5,300,288
Series A convertible preferred stock [Member]
Convertible Preferred Stock, Par Value	$ 0.001	$ 0.001
Convertible Preferred Stock, Shares Authorized	0	48,079,860
Convertible Preferred Stock, Shares Issued	0	4,766,543
Convertible Preferred Stock, Shares Outstanding	0	4,766,543
Convertible Preferred Stock, Liquidation Preference	$ 0	$ 28,774
Series B convertible preferred stock [Member]
Convertible Preferred Stock, Par Value	$ 0.001	$ 0.001
Convertible Preferred Stock, Shares Authorized	0	110,314,114
Convertible Preferred Stock, Shares Issued	0	11,031,387
Convertible Preferred Stock, Shares Outstanding	0	11,031,387
Convertible Preferred Stock, Liquidation Preference	$ 0	$ 28,862
Series C convertible preferred stock [Member]
Convertible Preferred Stock, Par Value	$ 0.001	$ 0.001
Convertible Preferred Stock, Shares Authorized	0	18,006,026
Convertible Preferred Stock, Shares Issued	0	1,799,328
Convertible Preferred Stock, Shares Outstanding	0	1,799,328
Convertible Preferred Stock, Liquidation Preference	$ 0	$ 6,631

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenues
Revenues	$ 91,420	$ 76,212	$ 65,432
Cost of revenues	18,404	13,247	11,204
Gross profit	73,016	62,965	54,228
Operating expenses:
Research and development	20,195	19,633	15,780
Sales and marketing	37,738	31,526	29,056
General and administrative	12,079	8,900	8,183
Total operating expenses	70,012	60,059	53,019
Income from operations	3,004	2,906	1,209
Other income (expense), net:
Interest expense	(192)	(204)	(186)
Interest income	14	14	3
Other income (expense), net	(188)	(346)	(383)
Total other income (expense), net	(366)	(536)	(566)
Income before provision for income taxes	2,638	2,370	643
Provision for (benefit from) income taxes	358	416	(204)
Net income	2,280	1,954	847
Net income attributable to common stockholders	$ 1,076	$ 436	$ 179
Net income per share attributable to common stockholders:
Basic (in usd per share)	$ 0.09	$ 0.09	$ 0.04
Diluted (in usd per share)	$ 0.08	$ 0.08	$ 0.04
Weighted average shares used in computing net income per share attributable to common stockholders:
Basic (in shares)	11,891	5,053	4,706
Diluted (in shares)	28,352	24,194	23,562

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income	$ 2,280	$ 1,954	$ 847
Foreign currency translation gain (loss), net of zero tax	(59)	(166)	(9)
Change in unrealized gain (loss) on short-term investments, net of zero tax	8	0	0
Other comprehensive income (loss), net	(51)	(166)	(9)
Comprehensive income	$ 2,229	$ 1,788	$ 838

- 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

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+ 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.

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- Definition

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

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- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

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+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income	$ 2,280	$ 1,954	$ 847
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	7,341	5,373	4,569
Bad debt expense	218	193	117
Loss on disposal of property and equipment	10	1	13
Stock-based compensation	3,452	2,147	1,870
Non-cash interest expense	24	36	12
Amortization of premiums on short-term investments	7	0	0
Changes in operating assets and liabilities:
Accounts receivable	(4,014)	(6,651)	(1,166)
Prepaid expenses and other assets	91	(3,835)	(112)
Accounts payable	(242)	1,248	(82)
Accrued liabilities	(1,163)	2,817	(182)
Deferred revenues	13,683	11,885	4,415
Income taxes payable	181	333	(488)
Other noncurrent liabilities	84	1,689	83
Net cash provided by operating activities	21,952	17,190	9,896
Cash flows from investing activities:
Purchases of short-term investments	(83,547)	0	0
Purchases of property and equipment	(11,188)	(7,499)	(1,510)
Purchases of intangible assets	(49)	0	0
Acquisition of business, net	0	0	(2,751)
Net cash used in investing activities	(94,784)	(7,499)	(4,261)
Cash flows from financing activities:
Proceeds from initial public offering, net of offering costs	84,534	0	0
Proceeds from exercise of stock options	1,685	948	522
Proceeds from early exercise of stock options	384	390	80
Proceeds from issuance of Series C Preferred Stock	0	128	0
Principal payments under capital lease obligations	(2,401)	(1,476)	(1,149)
Non-contingent payment related to acquisition	(1,000)	0	0
Net cash provided by (used in) financing activities	83,202	(10)	(547)
Effect of exchange rate changes on cash and cash equivalents	(33)	(143)	(27)
Net increase in cash and cash equivalents	10,337	9,538	5,061
Cash and cash equivalents at beginning of period	24,548	15,010	9,949
Cash and cash equivalents at end of period	34,885	24,548	15,010
Supplemental disclosures of cash flow information
Cash paid for interest expense	162	128	163
Cash paid for income taxes, net of refunds	299	108	303
Non-cash investing and financing activities
Purchase of property and equipment under capital lease	0	3,100	2,467
Vesting of early exercised common stock options	155	52	32
Conversion of convertible preferred stock to common stock	63,873	0	0
Issuance of common stock for acquisition of business	0	0	77
Issuance of common stock for acquisition of license	$ 51	$ 0	$ 0

Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Convertible Preferred Stock	Common Stock	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Convertible Preferred Stock balance at Dec. 31, 2009		$ 63,745
Convertible Preferred Stock, balance (in shares) at Dec. 31, 2009		17,562,410
Convertible Preferred Stock, balance (in shares) at Dec. 31, 2010		17,562,410.00
Convertible Preferred Stock balance at Dec. 31, 2010		$ 63,745
Balance at Dec. 31, 2009	$ (72,740)		$ 5	$ 7,237	$ (809)	$ (79,173)
Balance (in shares) at Dec. 31, 2009			4,652,675
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	847					847
Foreign currency translation	(9)
Issuance of common stock upon exercise of stock options	$ 522			522
Issuance of common stock upon exercise of stock options (shares)	317,802		317,802
Change in unrealized gain (loss) on short-term investments, net of zero tax	$ 0
Vesting of early exercised common stock options	32			32
Repurchase of unvested early exercised stock options	0
Repurchase of unvested early exercised stock options (shares)			(136,876)
Issuance of common stock in exchange for services	15			15
Issuance of common stock in exchange for services (shares)			3,750
Issuance of common stock for acquisition of business	77			77
Issuance of common stock for acquisition of business (shares)			25,000
Stock-based compensation	1,855			1,855
Balance at Dec. 31, 2010	(69,401)		$ 5	9,738	(818)	(78,326)
Balance (in shares) at Dec. 31, 2010			4,862,351
Increase (Decrease) in Temporary Equity [Roll Forward]
Convertible Preferred Stock, Issuance of Series C Preferred Stock upon exercise of warrants		$ 128
Convertible Preferred Stock, Issuance of Series C Preferred Stock upon exercise of warrants (shares)		34,848
Convertible Preferred Stock, balance (in shares) at Dec. 31, 2011		17,597,258.000
Convertible Preferred Stock balance at Dec. 31, 2011	63,873	$ 63,873
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,954					1,954
Foreign currency translation	(166)
Issuance of Series C Preferred Stock upon exercise of warrants	0
Issuance of common stock upon exercise of stock options	$ 948			948
Issuance of common stock upon exercise of stock options (shares)	432,687		432,687
Change in unrealized gain (loss) on short-term investments, net of zero tax	$ 0
Vesting of early exercised common stock options	52			52
Repurchase of unvested early exercised stock options	0
Repurchase of unvested early exercised stock options (shares)			(1,000)
Issuance of common stock in exchange for services	59			59
Issuance of common stock in exchange for services (shares)			6,250
Issuance of common stock for acquisition of business	0
Stock-based compensation	2,088			2,088
Other adjustments	42			42
Balance at Dec. 31, 2011	(64,424)		$ 5	12,927	(984)	(76,372)
Balance (in shares) at Dec. 31, 2011			5,300,288
Increase (Decrease) in Temporary Equity [Roll Forward]
Convertible Preferred Stock, Conversion of preferred stock to common stock upon initial public offering		$ (63,873)
Convertible Preferred Stock, Conversion of preferred stock to common stock upon initial public offering (in shares)		(17,597,258)
Convertible Preferred Stock, balance (in shares) at Dec. 31, 2012		0
Convertible Preferred Stock balance at Dec. 31, 2012	0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,280					2,280
Foreign currency translation	(59)				(59)
Issuance of common stock upon initial public offering, net of offering costs	84,534		$ 8	84,526
Issuance of common stock upon initial public offering, net of offering costs (in shares)			7,836,250
Conversion of preferred stock to common stock upon initial public offering	63,873		$ 17	63,856
Conversion of preferred stock to common stock upon initial public offering (in shares)			17,597,258
Issuance of common stock upon exercise of stock options	$ 1,685		$ 1	1,684
Issuance of common stock upon exercise of stock options (shares)	724,316		724,316
Change in unrealized gain (loss) on short-term investments, net of zero tax	$ 8
Vesting of early exercised common stock options	155			155
Repurchase of unvested early exercised stock options	0
Repurchase of unvested early exercised stock options (shares)			(60,126)
Issuance of common stock in exchange for services	45			45
Issuance of common stock in exchange for services (shares)			15,945
Issuance of common stock for acquisition of business	0
Issuance of common stock for acquisition of license	51			51
Issuance of common stock for acquisition of license (shares)			6,097
Stock-based compensation	3,407			3,407
Balance at Dec. 31, 2012	$ 91,555		$ 31	$ 166,651	$ (1,035)	$ (74,092)
Balance (in shares) at Dec. 31, 2012			31,420,028

The Company and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

The Company and Summary of Significant Accounting Policies



NOTE 1.	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.

Initial Public Offering

On October 3, 2012, the Company closed its initial public offering ("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 expenses in connection with this offering of $2.9 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.

Basis of Presentation

The accompanying consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include all adjustments necessary for the fair presentation of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated.

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.

Use of Estimates

The preparation of the 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 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 consolidated financial statements.

Convertible Preferred Stock

Prior to the completion of our IPO, a sale of all or substantially all of the Company’s assets or merger or consolidation of the Company with another entity was treated as a liquidation unless, following such transaction, the Company’s stockholders directly or indirectly owned, 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 convertible 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 consolidated balance sheet as of December 31, 2011.

On October 3, 2012, immediately prior to the closing of the Company’s 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.

Concentration of Credit Risk

The Company invests its cash, cash equivalents and short-term investments with major financial institutions. Cash balances with any one institution at times may be in excess of federally insured limits. Cash equivalents and short-term investments are invested in high-quality investment grade financial instruments and are diversified. 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 December 31, 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 Equivalents and Short-Term Investments

Cash and cash equivalents include cash held in banks and highly liquid money market funds and commercial paper, all with original maturities of three months or less when acquired. Short-term investments consist of fixed-income U.S. government agency securities and commercial paper, all with original maturities greater than three months and less than one year.

Cash is stated at cost, which approximates fair market value. Cash equivalents and short-term investments are classified as available-for-sale and are carried at fair value. Unrealized gains and losses in fair value are reported in other comprehensive income (loss) and are included in the consolidated statement of convertible preferred stock and stockholders' equity (deficit). When the available-for-sale securities are sold, cost is based on the specific identification method, and the realized gains and losses are included in other income (expense) in the consolidated statements of income. Short-term investments are reviewed quarterly for impairment that is deemed to be other-than-temporary. An investment is considered other-than-temporarily impaired when its fair value is below its amortized cost and (1) there is an intent to sell the security, (2) it is “more likely than not” that the security will be sold before recovery of its amortized cost basis or (3) the present value of expected cash flows from the investment is not expected to recover the entire amortized cost basis. Declines in value that are considered to be other than temporary and adjustments to amortized cost for the amortization of premiums and the accretion of discounts are recorded in other income (expense). Interest and dividends are recorded in interest income as earned.

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.

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. It is stated at cost, which approximates fair market value.

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 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 December 31, 2012 and 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 unit 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, 2012 and concluded there was no impairment of goodwill.

In testing for a potential impairment of intangible assets with indefinite lives that are not subject to amortization, the Company first performs a qualitative assessment to determine if it is more likely than not (a more than 50% likelihood) that the fair value of the indefinite-lived intangible assets is less than the 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, 2012 and concluded there was no impairment of the indefinite-lived intangible assets.

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 or intangible asset 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, for goodwill, 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. For indefinite-lived intangible assets, the Company performs the currently prescribed quantitative impairment test by comparing the fair value of the indefinite-lived intangible asset with its carrying 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 $0.3 million at December 31, 2012 and 2011. The capitalized development costs are recorded within other noncurrent assets and were fully amortized at December 31, 2012 and 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 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 consolidated statements of income 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 December 31, 2012, the Company had one outstanding forward contract with a notional amount of 10.7 million Euros, which expired on January 31, 2013. At December 31, 2011, the Company had one outstanding forward contract with a notional amount of 3.7 million 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 December 31, 2012 and 2011. The Company began to use these forward contracts in December 2011. In 2012, the Company recorded a loss of $0.4 million from these contracts, which was partially offset by foreign currency transaction gains of $0.2 million for the year. There were no gains or losses from forward contracts in 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 2012 and 2011 were not materially different from what would have been recognized under the previous guidance for multiple-element arrangements.

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. The Company incurred advertising costs of $4.3 million, $4.1 million, and $3.8 million for 2012, 2011 and 2010, 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 and unrealized gains (losses) on available-for-sale short-term investments, which are not included in the Company’s net income. Both of these items are reflected net of tax. Total comprehensive income includes net income and other comprehensive income (loss) and is included in the 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 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 $(0.2) million, $(0.3) million and $(0.4) million during 2012, 2011 and 2010, 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 and cash equivalents, short-term investments, accounts receivable, restricted cash, accounts payable, and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.

The Company measures and reports its cash equivalents, short-term investments and a derivative forward currency contract at fair value 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.

The Company's financial instruments consist of assets measured using Level 1 and 2 inputs. Level 1 assets include a highly liquid money market fund, which is valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. government agency securities, commercial paper and derivative financial instruments consisting of forward currency contracts. The securities and commercial paper are valued using prices from independent pricing services based on quoted prices in active markets for similar instruments or on industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued using observable inputs. See Note 2 for more information regarding the fair value measurement of the Company's financial instruments.

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 June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. The new guidance eliminated the option to report other comprehensive income and its components in the statement of changes in stockholders' equity. Instead, an entity is required to present either a continuous statement of net income and other comprehensive income or in two separate but consecutive statements. The Company adopted this new amended guidance during the year ended December 31, 2012. Adoption of this new amended guidance resulted only in changes to presentation of the 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 adopted this standard for the annual qualitative assessment of indefinite-live intangible assets for the year ended December 31, 2012, which did not 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 consolidated financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments



NOTE 2.	Fair Value of Financial Instruments

The Company's cash and cash equivalents, short-term investments, and restricted cash consist of the following:



	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Cash and cash equivalents:
Cash	$	23,419	$	—	$	—	$	23,419
Money market funds	170		—		—		170
Commercial paper	11,294		2		—		11,296
Total	34,883		2		—		34,885
Short-term investments:
Commercial paper	21,078		2		—		21,080
U.S. government agencies	62,463		4		—		62,467
Total	83,541		6		—		83,547
Restricted cash - cash	114		—		—		114
Total	$	118,538	$	8	$	—	$	118,546



	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Cash and cash equivalents - cash	$	24,548	$	—	$	—	$	24,548
Restricted cash - cash	112		—		—		112
Total	$	24,660	$	—	$	—	$	24,660

The following table sets forth by level within the fair value hierarchy the fair value of the Company's available-for-sale securities measured on a recurring basis:



	December 31, 2012
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Commercial paper	$	—	$	32,376	$	—	$	32,376
U.S. government agencies	—		62,467		—		62,467
Total	$	—	$	94,843	$	—	$	94,843

At December 31, 2012 and 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.

There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy, as determined at the end of each reporting period.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-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 133
-Paragraph 44A, 44B
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-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
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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
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-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
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-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 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 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.

+ Details

Property and Equipment, Net

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment, net



NOTE 3.	Property and Equipment, Net

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



	December 31,
	2012			2011
	(in thousands)
Computer equipment	$	18,798		$	12,483
Computer software	6,327			5,720
Furniture, fixtures and equipment	1,545			1,330
Scanner appliances	16,470			13,394
Leasehold improvements	1,672			1,418
Total property and equipment	44,812			34,345
Less: accumulated depreciation and amortization	(26,664		)	(20,484		)
Property and equipment, net	$	18,148		$	13,861

Assets held under capital lease included in computer equipment and software at December 31, 2012 and 2011 totaled approximately $8.1 million. The related accumulated depreciation at December 31, 2012 and 2011 totaled $4.9 million and $3.3 million, 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 $5.5 million and $3.4 million at December 31, 2012 and 2011, respectively, including assets that have not been placed in service of $1.5 million and $0.2 million, respectively. Other fixed assets not placed in service at December 31, 2012 and 2011, included in computer equipment and leasehold improvements, relate to new information technology systems and tenant improvements of approximately $1.7 million and $0.5 million, respectively. Depreciation and amortization expense relating to property and equipment, including capitalized leases, was $6.9 million, $4.9 million and $4.4 million for 2012, 2011 and 2010, 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

12 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Business Combination



NOTE 4.	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.

- 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
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-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

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net



NOTE 5.	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):



		December 31,
		2012							2011
	Estimated Lives	Cost		Accumulated Amortization			Net Book Value		Cost		Accumulated Amortization			Net Book Value
Existing technology	7 years	$	1,910	$	(637	)	$	1,273	$	1,910	$	(364	)	$	1,546
Patent license	14 years	1,388		(223		)	1,165		1,339		(127		)	1,212
Non-competition agreements and other	3 years	171		(93		)	78		171		(49		)	122
Total intangibles subject to amortization		$	3,469	$	(953	)	2,516		$	3,420	$	(540	)	2,880
Intangible assets not subject to amortization							295							295
Total intangible assets, net							$	2,811						$	3,175

Intangibles amortization expense was $0.4 million, $0.4 million and $0.1 million for 2012, 2011 and 2010, respectively.

As of December 31, 2012, the Company expects amortization expense in future periods to be as follows (in thousands):



2013	$	417
2014	392
2015	385
2016	372
2017	281
2018 and thereafter	669
Total expected future amortization expense	$	2,516

Goodwill, which is not subject to amortization, totaled $0.3 million as of December 31, 2012 and 2011.

- 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

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies



NOTE 6.	Commitments and Contingencies

Line of Credit

In March 2009, the Company entered into an equipment line of credit of $1.5 million. 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 $0.8 million 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 $1.0 million 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 December 31, 2011, the Company had $0.9 million in outstanding borrowings under this line of credit, which are recorded in capital lease obligations in the consolidated balance sheet. The remaining amount available for borrowings at December 31, 2011 was $0.9 million. At December 31, 2012, the Company had no outstanding borrowings under this line of credit and the Company was not able to draw any further funds as the line expired in February 2012.

Leases

The Company leases certain computer equipment and its corporate office and data center 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 December 31, 2012 and 2011.

In 2011, the Company entered into a $3.1 million 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 $1.6 million and $2.6 million at December 31, 2012 and 2011, respectively. Such obligation for maintenance and support is recorded in current and other noncurrent liabilities in the consolidated balance sheets.

The following are the minimum annual lease payments due under these leases at December 31, 2012:



	Operating Leases		Capital Leases
	(in thousands)
2013	$	2,831	$	1,213
2014	2,088		815
2015	1,733		—
2016	1,448		—
2017	1,358		—
2018 and thereafter	94		—
Total minimum lease payments	$	9,552	2,028
Less amount representing interest			(37		)
Present value of minimum payments			1,991
Less current portion			(1,183		)
Capital lease obligations, noncurrent			$	808

Rent expense was $4.3 million, $3.4 million and $3.3 million for 2012, 2011 and 2010, 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 December 31, 2012 and 2011, the Company has accrued $0.4 million and $0.3 million, respectively, of deferred rent related to these agreements, which is reflected in other noncurrent liabilities in the accompanying 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 $0.4 million and $0.3 million at December 31, 2012 and 2011, respectively, which is recorded within accrued liabilities in the 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 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 December 31, 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 December 31, 2012, the Company has not recorded any material 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
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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-Publisher FASB
-Name Accounting Standards Codification
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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

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity



NOTE 7.	Stockholders' Equity

Common Stock

The Company had reserved shares of common stock for future issuance as of December 31, 2012:



Options outstanding under equity incentive plans
2000 Equity Incentive Plan⁽¹⁾		6,366,633
2012 Equity Incentive Plan ⁽¹⁾		146,875
Shares available for future grants under equity incentive plans
2012 Equity Incentive Plan⁽¹⁾		2,902,125
Total shares reserved for future issuance		9,415,633

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

Convertible Preferred Stock

As of December 31, 2012, there are no authorized, issued or outstanding shares of convertible preferred stock. All outstanding shares were converted to common stock immediately prior to the closing of the IPO on October 3, 2012.

As of December 31, 2011, 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.

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. Each series of preferred stock will have such rights and preferences including dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), redemption price, and liquidation preferences as determined by the Board. As of December 31, 2012, there are no issued or outstanding shares of preferred stock.

Warrants

In connection with the issuance of promissory notes in July 2005, the Company granted warrants to purchase 61,507 shares of Series C Preferred Stock at an exercise price of $3.66 per share. The warrants were sold to the note holders at a purchase price of $0.10 per share. In 2011, 30,754 shares of Series C Preferred Stock were purchased upon exercise of these warrants. No warrants are exercisable or outstanding as of December 31, 2012 and 2011.

Also in connection with the notes, in May 2006, the Company granted warrants to purchase shares 8,185 of Series C Preferred Stock at an exercise price of $3.76 per share. In 2011, 4,094 shares of Series C Preferred Stock were purchased upon exercise of these warrants. No warrants are exercisable or outstanding as of December 31, 2012 and 2011.

- 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
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
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-Subparagraph (SAB TOPIC 4.E)
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

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-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.

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-Number 12
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-Number 5
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-Number 210
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Reference 23: http://www.xbrl.org/2003/role/presentationRef
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-Article 3

+ Details

Employee Stock and Benefit Plans

12 Months Ended

Dec. 31, 2012

Share-based Compensation [Abstract]

Employee Stock and Benefit Plans



NOTE 8.	Employee Stock and Benefit Plans

Employee Stock Plans

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 is authorized to grant to eligible participants incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), stock appreciation rights ("SARs"), restricted stock awards ("RSAs"), restricted stock units ("RSUs"), 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. Options may be granted with an exercise price that is at least equal to the fair market value of the Company's stock at the date of grant and are exercisable when vested. Options granted generally vest over a period of up to four years, with a maximum term of ten years. ISOs 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. Options, SARs, RSAs, RSUs, performance units and performance awards may be granted with vesting terms as determined by the board of directors and expire no more than ten years after the date of grant or earlier if employment or service is terminated. As of December 31, 2012, 2,902,125 shares were available for grant under the 2012 Plan.

2000 Equity Incentive Plan

Under the 2000 Equity Incentive Plan (the "2000 Plan"), the Company was authorized to grant to eligible participants either ISOs or NSOs. The ISOs were granted at a price per share not less than the fair market value at the date of grant. The NSOs were granted at a price per share not less than 85% of the fair market value at the date of grant. Options granted generally vest over a period of up to four years, with a maximum term of ten years. 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.

Options granted under the 2000 Plan were immediately exercisable, and unvested shares are subject to repurchase by the Company. 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 December 31, 2012 and 2011, there were 47,220 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 60,126, 1,000 and 136,876 unvested common shares in 2012, 2011 and 2010, respectively. 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 $0.3 million and $0.4 million as of December 31, 2012 and 2011, respectively, have been recorded as an accrued liability in the accompanying consolidated balance sheets and will be reclassified to common stock and additional paid-in capital as the shares vest.

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



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Cost of revenues	$	272	$	139	$	77
Research and development	649		458		346
Sales and marketing	993		579		460
General and administrative	1,008		811		869
Total stock-based employee compensation	$	2,922	$	1,987	$	1,752

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 December 31, 2012, the Company had $5.8 million of total unrecognized employee compensation cost related to nonvested awards that it expects to recognize over a weighted-average period of 2 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:



	Year Ended December 31,
	2012	2011	2010
Expected term (in years)	5.3 to 6.1	5.6	5.5
Volatility	52% to 53%	55%	57% to 58%
Risk-free interest rate	0.6% to 0.9%	0.9% to 2.3%	1.1% to 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 $0.5 million, $0.1 million and $0.1 million for 2012, 2011 and 2010, 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, 2009	5,212,984		$	2.56	6.6	$	6,486
Granted	1,357,702		4.10
Exercised	(317,802	)	1.89
Canceled	(652,009	)	3.51
Balance as of December 31, 2010	5,600,875		2.86		6.4	6,964
Granted	1,816,850		5.06
Exercised	(432,687	)	3.09
Canceled	(672,997	)	3.89
Balance as of December 31, 2011	6,312,041		3.36		6.9	16,012
Granted	1,478,781		8.94
Exercised	(724,316	)	2.86
Canceled	(552,998	)	6.79
Balance as of December 31, 2012	6,513,508		4.39		6.6	67,711
Vested and expected to vest—December 31, 2012	6,150,545		4.16		6.5	65,333
Exercisable—December 31, 2012	6,366,588		4.18		6.6	66,184

The following table summarizes the outstanding and vested stock options at December 31, 2012:



	Outstanding				Vested
Exercise Price	Number of Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)	Number of Shares	Weighted Average Exercise Price Per Share
$0.10 - $1.50	490,401	$	1.32	3.3	490,401	$	1.32
$1.60 - $1.90	945,782	1.90		4.1	945,782	1.90
$2.00 - $2.80	836,955	2.64		5.0	828,156	2.64
$2.90 - $3.80	1,183,268	3.80		6.9	620,391	3.80
$3.90 - $4.40	1,044,238	4.21		7.5	663,582	4.17
$4.50 - $6.90	1,025,646	5.56		8.1	353,989	5.35
$7.00 - $13.60	987,218	9.51		9.2	48,440	8.59
	6,513,508	4.39		6.6	3,950,741	3.05

The weighted-average grant date fair value of the Company’s stock options granted during 2012, 2011 and 2010 was $4.27, $2.56 and $2.14, respectively. The aggregate grant date fair value of the Company’s stock options granted during 2012, 2011 and 2010 was $6.3 million, $4.7 million and $2.9 million, respectively.

The intrinsic value of options exercised was $4.0 million, $0.8 million and $0.7 million during 2012, 2011 and 2010, respectively. Intrinsic value of an option is the difference between the fair value of the Company’s common stock at the time of exercise and the exercise price paid.

Restricted Stock

The terms and conditions of RSAs, including vesting criteria and timing are set by the board of directors. The cost of RSAs is determined using the fair value of the Company’s common stock on the date of the grant. Compensation cost is recognized on a straight-line basis over the requisite service period of each grant adjusted for estimated forfeitures. Recipients of RSAs generally have voting and dividend rights without regard to vesting. The Company has the right to repurchase shares that do not vest.

During 2012, the Company granted 1,000 shares of restricted stock, which vested immediately and had no further restrictions or service period, and resulted in compensation expense of $14,000.

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

12 Months Ended

Dec. 31, 2012

Other Income and Expenses [Abstract]

Other Income (Expense), Net



NOTE 9.	Other Income (Expense), Net

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



	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Foreign exchange gains (losses)	$	(179	)	$	(338	)	$	(372	)
Amortization of premiums on short-term investments	(7		)	—			—
Other income (expense)	(2		)	(8		)	(11		)
Other income (expense), net	$	(188	)	$	(346	)	$	(383	)

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Taxes



NOTE 10.	Income Taxes

The Company’s geographical breakdown of income (loss) before provision for (benefit from) income taxes is as follows:



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Domestic	$	1,656	$	1,593	$	(21	)
Foreign	982		777		664
Income before provision for income taxes	$	2,638	$	2,370	$	643

The provision for (benefit from) income taxes consists of the following:



	Year Ended December 31,
	2012			2011		2010
	(in thousands)
Current
Federal	$	(18	)	$	45	$	(39	)
State	202			112		37
Foreign	147			259		(202		)
Total current provision (benefit)	331			416		(204		)
Deferred
Federal	$	27		$	—	$	—
State	—			—		—
Foreign	—			—		—
Total deferred provision (benefit)	27			—		—
Total provision for (benefit from) income taxes	$	358		$	416	$	(204	)

The reconciliation of the statutory federal income tax rate of 34.0% to the Company’s effective tax rate is as follows:



	Year Ended December 31,
	2012		2011		2010
Federal statutory rate	34.0	%	34.0	%	34.0	%
State taxes	5.4		3.5		3.9
Stock-based compensation	22.4		19.4		81.3
Foreign source income	(4.1	)	1.4		(50.8	)
Change in valuation allowance	(46.9	)	(44.0	)	(102.3	)
Other	2.8		3.3		2.2
Provision for (benefit from) income taxes	13.6	%	17.6	%	(31.7	)%

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company’s deferred tax assets and liabilities are as follows:



	December 31,
	2012			2011
	(in thousands)
Deferred tax assets
Net operating loss carryforwards	$	19,658		$	22,584
Research and development credit carryforwards	4,055			3,744
Accrued liabilities	535			409
Deferred revenues	3,085			1,670
Deferred rent	153			112
Intangible assets	385			198
Stock-based compensation	843			506
Foreign	4			30
Other	403			463
Gross deferred tax assets	29,121			29,716
Valuation allowance	(26,257		)	(26,766		)
Net deferred tax assets	2,864			2,950
Deferred tax liabilities
Fixed assets	(2,854		)	(2,884		)
Intangible assets	(27		)	—
Total deferred tax liabilities	(2,881		)	(2,884		)
Net deferred tax assets (liabilities)	$	(17	)	$	66

Current and non-current deferred tax assets and liabilities included in the consolidated balance sheets are recorded as follows:



	December 31,
	2012			2011
	(in thousands)
Current deferred tax assets	$	106		$	69
Current deferred tax liabilities	—			—
Noncurrent deferred tax assets	—			—
Noncurrent deferred tax liabilities	(123		)	(3		)
Net deferred tax assets	$	(17	)	$	66

Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. As of December 31, 2012, we have provided a valuation allowance for our deferred tax assets that we believe are not more likely than not realizable. The valuation allowance decreased by $0.5 million for 2012 and decreased by $0.8 million for 2011.

At December 31, 2012, the Company had federal and state net operating loss carryforwards of approximately $52.9 million and $29.5 million, respectively, available to reduce federal and state taxable income. The Company’s federal net operating losses expire in the years 2021 to 2031, and its state net operating losses expire from 2013 to 2030. Utilization of the Company’s net operating loss carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. As of December 31, 2012, the Company had federal and state research and development credits of $3.1 million and $3.8 million, respectively. Federal research and development credits expire in the years 2022 to 2031. State research and development credits do not expire.

U.S. income taxes were not provided on undistributed earnings from investments in non-U.S. subsidiaries as the Company intends to continue to reinvest the earnings of these foreign subsidiaries indefinitely. The Company’s share of undistributed earnings of foreign subsidiaries that could be subject to additional U.S. income tax if remitted was approximately $8.2 million and $7.5 million as of December 31, 2012 and 2011, respectively. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable.

The evaluation of a tax position is a two-step process. The first step requires the Company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. The second step requires the Company to recognize in the financial statement each tax position that meets the more likely than not criteria, measured at the amount of benefit that has a greater than fifty percent likelihood of being realized.

A reconciliation of the Company’s unrecognized tax benefits is as follows:



	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Unrecognized tax benefits beginning balance	$	2,792		$	2,648		$	4,495
Gross increase for tax positions of prior years	—			87			71
Gross decrease for tax positions of prior years	(46		)	(120		)	(1,792		)
Gross increase for tax positions of current year	140			242			276
Settlements	(106		)	—			—
Lapse of statute of limitations	(133		)	(65		)	(402		)
Total unrecognized tax benefits	$	2,647		$	2,792		$	2,648

The unrecognized tax benefits, if recognized and in absence of full valuation allowance, would impact the income tax provision by $1.0 million, $1.2 million and $0.5 million as of December 31, 2012, 2011 and 2010, respectively.

The Company has elected to include interest and penalties as a component of income tax expense. The amounts were not material for 2012, 2011 and 2010.

The Company files income tax returns in the United States, including various state jurisdictions. The Company’s subsidiaries file tax returns in various foreign jurisdictions. The tax years 2007 to 2012 remain open to examination by the major taxing jurisdictions in which the Company is subject to tax, with the exception of France which remains open to examination for the 2011 and 2012 tax years only. As of December 31, 2012, the Company was not under examination by the Internal Revenue Service or any state tax jurisdictions.

On January 2, 2013, the American Taxpayer Relief Act of 2012 (H.R. 8) was signed into law which retroactively extends the federal research and development credit from January 1, 2012 through December 31, 2013.

- 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

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information and Information about Geographic Area



NOTE 11.	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:



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
United States	$	62,616	$	51,044	$	43,669
Other	28,804		25,168		21,763
Total revenues	$	91,420	$	76,212	$	65,432

As of December 31, 2012 and 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
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-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

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Net Income Per Share Attributable to Common Stockholders



NOTE 12.	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:



	Year Ended December 31,
	2012			2011			2010
	(in thousands, except per share data)
Numerator:
Net income	$	2,280		$	1,954		$	847
Net income attributable to participating securities	(1,204		)	(1,518		)	(668		)
Net income attributable to common stockholders - basic	1,076			436			179
Undistributed earnings reallocated to participating securities	1,201			1,516			666
Net income attributable to common stockholders - diluted	$	2,277		$	1,952		$	845
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders - basic	11,891			5,053			4,706
Effect of potentially dilutive securities:
Convertible preferred stock	13,270			17,590			17,562
Common stock options	3,187			1,537			1,282
Warrants	—			2			4
Contingently issuable shares related to an acquisition	4			12			8
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted	28,352			24,194			23,562
Net income per share attributable to common stockholders
Basic	$	0.09		$	0.09		$	0.04
Diluted	$	0.08		$	0.08		$	0.04

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



	Year Ended December 31,
	2012	2011	2010
	(in thousands)
Common stock options	772	2,758	1,948

Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited)



NOTE 13.	Quarterly Financial Information (Unaudited)

The following table sets forth our unaudited consolidated statements of income data for each of the quarters in the two-year period ended December 31, 2012. The unaudited quarterly consolidated statements of income data set forth below have been prepared on the same basis as the audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K and, in the opinion of management, reflect all necessary adjustments, which consist only of normal recurring adjustments, necessary for a fair presentation of such data. Our historical results are not necessarily indicative of the results for the full year or any other period. This data should be read together with our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K.



	Three Months Ended
	Mar. 31, 2011		Jun. 30, 2011		Sep. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012			Sep. 30, 2012		Dec. 31, 2012
	(unaudited)
	(in thousands, except per share data)
Revenues	$	17,690	$	18,495	$	19,375		$	20,652		$	21,191		$	22,190		$	23,382	$	24,657
Cost of revenues	2,873		3,026		3,225			4,123			4,160			4,629			4,634		4,981
Gross profit	14,817		15,469		16,150			16,529			17,031			17,561			18,748		19,676
Operating expenses:
Research and development	4,764		4,994		4,922			4,953			5,101			5,148			5,076		4,870
Sales and marketing	7,002		7,310		7,985			9,229			9,246			9,784			8,797		9,911
General and administrative	2,214		2,047		2,249			2,390			2,814			2,843			3,154		3,268
Total operating expenses	13,980		14,351		15,156			16,572			17,161			17,775			17,027		18,049
Income (loss) from operations	837		1,118		994			(43		)	(130		)	(214		)	1,721		1,627
Other income (expense), net⁽¹⁾	337		71		(461		)	(483		)	(77		)	(141		)	23		(171		)
Income (loss) before provision for (benefit from) income taxes	1,174		1,189		533			(526		)	(207		)	(355		)	1,744		1,456
Provision for (benefit from) income taxes⁽²⁾	128		82		81			125			78			(78		)	77		281
Net income (loss)	$	1,046	$	1,107	$	452		$	(651	)	$	(285	)	$	(277	)	$	1,667	$	1,175
Net income (loss) attributable to common stockholders	$	227	$	244	$	102		$	(651	)	$	(285	)	$	(277	)	$	415	$	1,159
Net income (loss) per share attributable to common stockholders:
Basic	$	0.05	$	0.05	$	0.02		$	(0.13	)	$	(0.05	)	$	(0.05	)	$	0.07	$	0.04
Diluted	$	0.04	$	0.05	$	0.02		$	(0.13	)	$	(0.05	)	$	(0.05	)	$	0.06	$	0.03

⁽¹⁾ Includes significant foreign currency exchange losses in the three months ended September 30, 2011 and December 31, 2011.

⁽²⁾ Includes a benefit from income taxes in the three months ended June 30, 2012 primarily resulting from reductions in the liability for uncertain tax positions due to the lapse of the statute of limitations or closure of tax years due to a completed audit of our French subsidiary.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

The Company and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Basis of presentation

Basis of Presentation

Use of estimates

Use of Estimates

Convertible preferred stock

Convertible Preferred Stock

Concentration of credit risk

Concentration of Credit Risk

Cash, cash equivalents and short-term investments

Cash, Cash Equivalents and Short-Term Investments

Accounts receivable

Accounts Receivable

Restricted cash

Restricted Cash

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

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

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

Net income per share attributable to common stockholders

Net Income Per Share Attributable to Common Stockholders

Recent accounting pronouncements

Recent Accounting Pronouncements

Reverse Stock Split

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Schedule of Cash and Cash Equivalents, Available-for-sale Securities, Restricted Cash Reconciliation

The Company's cash and cash equivalents, short-term investments, and restricted cash consist of the following:



	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Cash and cash equivalents:
Cash	$	23,419	$	—	$	—	$	23,419
Money market funds	170		—		—		170
Commercial paper	11,294		2		—		11,296
Total	34,883		2		—		34,885
Short-term investments:
Commercial paper	21,078		2		—		21,080
U.S. government agencies	62,463		4		—		62,467
Total	83,541		6		—		83,547
Restricted cash - cash	114		—		—		114
Total	$	118,538	$	8	$	—	$	118,546



	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Cash and cash equivalents - cash	$	24,548	$	—	$	—	$	24,548
Restricted cash - cash	112		—		—		112
Total	$	24,660	$	—	$	—	$	24,660

Schedule of Assets Measured on Recurring Basis

The following table sets forth by level within the fair value hierarchy the fair value of the Company's available-for-sale securities measured on a recurring basis:



	December 31, 2012
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Commercial paper	$	—	$	32,376	$	—	$	32,376
U.S. government agencies	—		62,467		—		62,467
Total	$	—	$	94,843	$	—	$	94,843

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 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 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-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 Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-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

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and equipment

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



	December 31,
	2012			2011
	(in thousands)
Computer equipment	$	18,798		$	12,483
Computer software	6,327			5,720
Furniture, fixtures and equipment	1,545			1,330
Scanner appliances	16,470			13,394
Leasehold improvements	1,672			1,418
Total property and equipment	44,812			34,345
Less: accumulated depreciation and amortization	(26,664		)	(20,484		)
Property and equipment, net	$	18,148		$	13,861

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying value of intangible assets

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



		December 31,
		2012							2011
	Estimated Lives	Cost		Accumulated Amortization			Net Book Value		Cost		Accumulated Amortization			Net Book Value
Existing technology	7 years	$	1,910	$	(637	)	$	1,273	$	1,910	$	(364	)	$	1,546
Patent license	14 years	1,388		(223		)	1,165		1,339		(127		)	1,212
Non-competition agreements and other	3 years	171		(93		)	78		171		(49		)	122
Total intangibles subject to amortization		$	3,469	$	(953	)	2,516		$	3,420	$	(540	)	2,880
Intangible assets not subject to amortization							295							295
Total intangible assets, net							$	2,811						$	3,175

Intangible assets future periods amortization expense

As of December 31, 2012, the Company expects amortization expense in future periods to be as follows (in thousands):



2013	$	417
2014	392
2015	385
2016	372
2017	281
2018 and thereafter	669
Total expected future amortization expense	$	2,516

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2012:



	Operating Leases		Capital Leases
	(in thousands)
2013	$	2,831	$	1,213
2014	2,088		815
2015	1,733		—
2016	1,448		—
2017	1,358		—
2018 and thereafter	94		—
Total minimum lease payments	$	9,552	2,028
Less amount representing interest			(37		)
Present value of minimum payments			1,991
Less current portion			(1,183		)
Capital lease obligations, noncurrent			$	808

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 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 of December 31, 2012:



Options outstanding under equity incentive plans
2000 Equity Incentive Plan⁽¹⁾		6,366,633
2012 Equity Incentive Plan ⁽¹⁾		146,875
Shares available for future grants under equity incentive plans
2012 Equity Incentive Plan⁽¹⁾		2,902,125
Total shares reserved for future issuance		9,415,633

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

Employee Stock and Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Share-based Compensation [Abstract]

Stock-based employee compensation

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



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Cost of revenues	$	272	$	139	$	77
Research and development	649		458		346
Sales and marketing	993		579		460
General and administrative	1,008		811		869
Total stock-based employee compensation	$	2,922	$	1,987	$	1,752

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:



	Year Ended December 31,
	2012	2011	2010
Expected term (in years)	5.3 to 6.1	5.6	5.5
Volatility	52% to 53%	55%	57% to 58%
Risk-free interest rate	0.6% to 0.9%	0.9% to 2.3%	1.1% to 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, 2009	5,212,984		$	2.56	6.6	$	6,486
Granted	1,357,702		4.10
Exercised	(317,802	)	1.89
Canceled	(652,009	)	3.51
Balance as of December 31, 2010	5,600,875		2.86		6.4	6,964
Granted	1,816,850		5.06
Exercised	(432,687	)	3.09
Canceled	(672,997	)	3.89
Balance as of December 31, 2011	6,312,041		3.36		6.9	16,012
Granted	1,478,781		8.94
Exercised	(724,316	)	2.86
Canceled	(552,998	)	6.79
Balance as of December 31, 2012	6,513,508		4.39		6.6	67,711
Vested and expected to vest—December 31, 2012	6,150,545		4.16		6.5	65,333
Exercisable—December 31, 2012	6,366,588		4.18		6.6	66,184

Schedule of exercise price range, outstanding and vested

The following table summarizes the outstanding and vested stock options at December 31, 2012:



	Outstanding				Vested
Exercise Price	Number of Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)	Number of Shares	Weighted Average Exercise Price Per Share
$0.10 - $1.50	490,401	$	1.32	3.3	490,401	$	1.32
$1.60 - $1.90	945,782	1.90		4.1	945,782	1.90
$2.00 - $2.80	836,955	2.64		5.0	828,156	2.64
$2.90 - $3.80	1,183,268	3.80		6.9	620,391	3.80
$3.90 - $4.40	1,044,238	4.21		7.5	663,582	4.17
$4.50 - $6.90	1,025,646	5.56		8.1	353,989	5.35
$7.00 - $13.60	987,218	9.51		9.2	48,440	8.59
	6,513,508	4.39		6.6	3,950,741	3.05

- 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)

12 Months Ended

Dec. 31, 2012

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income (Expense)

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



	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Foreign exchange gains (losses)	$	(179	)	$	(338	)	$	(372	)
Amortization of premiums on short-term investments	(7		)	—			—
Other income (expense)	(2		)	(8		)	(11		)
Other income (expense), net	$	(188	)	$	(346	)	$	(383	)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Schedule of Geographical Breakdown of Income (Loss) Before Provision for (Benefit From) Income Taxes

The Company’s geographical breakdown of income (loss) before provision for (benefit from) income taxes is as follows:



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Domestic	$	1,656	$	1,593	$	(21	)
Foreign	982		777		664
Income before provision for income taxes	$	2,638	$	2,370	$	643

Schedule of Provision for (Benefit From) Income Taxes

The provision for (benefit from) income taxes consists of the following:



	Year Ended December 31,
	2012			2011		2010
	(in thousands)
Current
Federal	$	(18	)	$	45	$	(39	)
State	202			112		37
Foreign	147			259		(202		)
Total current provision (benefit)	331			416		(204		)
Deferred
Federal	$	27		$	—	$	—
State	—			—		—
Foreign	—			—		—
Total deferred provision (benefit)	27			—		—
Total provision for (benefit from) income taxes	$	358		$	416	$	(204	)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax rate of 34.0% to the Company’s effective tax rate is as follows:



	Year Ended December 31,
	2012		2011		2010
Federal statutory rate	34.0	%	34.0	%	34.0	%
State taxes	5.4		3.5		3.9
Stock-based compensation	22.4		19.4		81.3
Foreign source income	(4.1	)	1.4		(50.8	)
Change in valuation allowance	(46.9	)	(44.0	)	(102.3	)
Other	2.8		3.3		2.2
Provision for (benefit from) income taxes	13.6	%	17.6	%	(31.7	)%

Schedule of Deferred Tax Assets and Liabilities

eferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company’s deferred tax assets and liabilities are as follows:



	December 31,
	2012			2011
	(in thousands)
Deferred tax assets
Net operating loss carryforwards	$	19,658		$	22,584
Research and development credit carryforwards	4,055			3,744
Accrued liabilities	535			409
Deferred revenues	3,085			1,670
Deferred rent	153			112
Intangible assets	385			198
Stock-based compensation	843			506
Foreign	4			30
Other	403			463
Gross deferred tax assets	29,121			29,716
Valuation allowance	(26,257		)	(26,766		)
Net deferred tax assets	2,864			2,950
Deferred tax liabilities
Fixed assets	(2,854		)	(2,884		)
Intangible assets	(27		)	—
Total deferred tax liabilities	(2,881		)	(2,884		)
Net deferred tax assets (liabilities)	$	(17	)	$	66

Current and non-current deferred tax assets and liabilities included in the consolidated balance sheets are recorded as follows:



	December 31,
	2012			2011
	(in thousands)
Current deferred tax assets	$	106		$	69
Current deferred tax liabilities	—			—
Noncurrent deferred tax assets	—			—
Noncurrent deferred tax liabilities	(123		)	(3		)
Net deferred tax assets	$	(17	)	$	66

Schedule of Unrecognized Tax Benefits

A reconciliation of the Company’s unrecognized tax benefits is as follows:



	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Unrecognized tax benefits beginning balance	$	2,792		$	2,648		$	4,495
Gross increase for tax positions of prior years	—			87			71
Gross decrease for tax positions of prior years	(46		)	(120		)	(1,792		)
Gross increase for tax positions of current year	140			242			276
Settlements	(106		)	—			—
Lapse of statute of limitations	(133		)	(65		)	(402		)
Total unrecognized tax benefits	$	2,647		$	2,792		$	2,648

Segment Information and Information about Geographic Area (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Revenues by geographic area

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



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
United States	$	62,616	$	51,044	$	43,669
Other	28,804		25,168		21,763
Total revenues	$	91,420	$	76,212	$	65,432

- 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)

12 Months Ended

Dec. 31, 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:



	Year Ended December 31,
	2012			2011			2010
	(in thousands, except per share data)
Numerator:
Net income	$	2,280		$	1,954		$	847
Net income attributable to participating securities	(1,204		)	(1,518		)	(668		)
Net income attributable to common stockholders - basic	1,076			436			179
Undistributed earnings reallocated to participating securities	1,201			1,516			666
Net income attributable to common stockholders - diluted	$	2,277		$	1,952		$	845
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders - basic	11,891			5,053			4,706
Effect of potentially dilutive securities:
Convertible preferred stock	13,270			17,590			17,562
Common stock options	3,187			1,537			1,282
Warrants	—			2			4
Contingently issuable shares related to an acquisition	4			12			8
Weighted-average shares used in computing net income per share attributable to common stockholders - diluted	28,352			24,194			23,562
Net income per share attributable to common stockholders
Basic	$	0.09		$	0.09		$	0.04
Diluted	$	0.08		$	0.08		$	0.04

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:



	Year Ended December 31,
	2012	2011	2010
	(in thousands)
Common stock options	772	2,758	1,948

Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information



	Three Months Ended
	Mar. 31, 2011		Jun. 30, 2011		Sep. 30, 2011			Dec. 31, 2011			Mar. 31, 2012			Jun. 30, 2012			Sep. 30, 2012		Dec. 31, 2012
	(unaudited)
	(in thousands, except per share data)
Revenues	$	17,690	$	18,495	$	19,375		$	20,652		$	21,191		$	22,190		$	23,382	$	24,657
Cost of revenues	2,873		3,026		3,225			4,123			4,160			4,629			4,634		4,981
Gross profit	14,817		15,469		16,150			16,529			17,031			17,561			18,748		19,676
Operating expenses:
Research and development	4,764		4,994		4,922			4,953			5,101			5,148			5,076		4,870
Sales and marketing	7,002		7,310		7,985			9,229			9,246			9,784			8,797		9,911
General and administrative	2,214		2,047		2,249			2,390			2,814			2,843			3,154		3,268
Total operating expenses	13,980		14,351		15,156			16,572			17,161			17,775			17,027		18,049
Income (loss) from operations	837		1,118		994			(43		)	(130		)	(214		)	1,721		1,627
Other income (expense), net⁽¹⁾	337		71		(461		)	(483		)	(77		)	(141		)	23		(171		)
Income (loss) before provision for (benefit from) income taxes	1,174		1,189		533			(526		)	(207		)	(355		)	1,744		1,456
Provision for (benefit from) income taxes⁽²⁾	128		82		81			125			78			(78		)	77		281
Net income (loss)	$	1,046	$	1,107	$	452		$	(651	)	$	(285	)	$	(277	)	$	1,667	$	1,175
Net income (loss) attributable to common stockholders	$	227	$	244	$	102		$	(651	)	$	(285	)	$	(277	)	$	415	$	1,159
Net income (loss) per share attributable to common stockholders:
Basic	$	0.05	$	0.05	$	0.02		$	(0.13	)	$	(0.05	)	$	(0.05	)	$	0.07	$	0.04
Diluted	$	0.04	$	0.05	$	0.02		$	(0.13	)	$	(0.05	)	$	(0.05	)	$	0.06	$	0.03

⁽¹⁾ Includes significant foreign currency exchange losses in the three months ended September 30, 2011 and December 31, 2011.

The Company and Summary of Significant Accounting Policies (Details) $ / shares in Units, € in Millions		3 Months Ended	12 Months Ended
	Oct. 03, 2012 USD ($) $ / shares shares	Sep. 30, 2012	Dec. 31, 2012 USD ($) shares	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 EUR (€) customer derivative	Dec. 31, 2012 USD ($) customer derivative	Dec. 31, 2011 EUR (€) customer derivative	Dec. 31, 2011 USD ($) customer derivative
Convertible Preferred Stock
Percentage of total voting power			50.00%
Total convertible preferred stock			$ 63,873,000	$ 0	$ 0
Software Development Costs
Capitalized development costs							$ 3,469,000		$ 3,420,000
Derivative Financial Instruments
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			400,000
Foreign currency transaction gain, before tax			200,000	0.0	0.0
Advertising Expenses
Advertising expense			4,300,000	4,100,000	3,800,000
Foreign Currency Translation and Transactions
Foreign currency transaction gain (loss), before tax			$ (179,000)	$ (338,000)	$ (372,000)
Reverse Stock Split
Stockholders' equity, reverse stock split		one-for-ten reverse stock split
Stockholders' equity note, stock split, conversion ratio		0.1
Minimum
Property Equipment, Net
Property, plant and equipment, useful Llfe			3 years
Goodwill and Intangible Assets
Finite-lived intangible asset, useful life			3 years
Maximum
Property Equipment, Net
Property, plant and equipment, useful Llfe			5 years
Goodwill and Intangible Assets
Finite-lived intangible asset, useful life			14 years
Scanner appliances
Property Equipment, Net
Property, plant and equipment, useful Llfe			3 years
Forward contracts
Derivative Financial Instruments
Derivative, notional amount \| €						€ 10.7		€ 3.7
Customer concentration risk \| Accounts receivable
Concentration of Credit Risk
Concentration risk, number of customers \| customer						0	0	1	1
Concentration risk, percentage				13.00%
Common Stock
Initial Public Offering
Issuance of common stock upon initial public offering, net of offering costs (in shares) \| shares	7,836,250		7,836,250
Software and software development costs
Software Development Costs
Capitalized development costs							$ 251,000		$ 251,000
Preferred Stock
Initial Public Offering
Proceeds from issuance of initial public offering	$ 87,500,000
Sale of stock, expenses incurred in offering	2,900,000
Convertible Preferred Stock
Convertible Preferred Stock
Total convertible preferred stock	$ 63,900,000
IPO \| Common Stock \| Preferred Stock
Initial Public Offering
Shares sold in IPO, including existing shares \| shares	8,711,250
Shares sold in initial public offering, including existing shares, price per share \| $ / shares	$ 12.00
Shares sold by existing stockholders during initial public offering \| shares	875,000
IPO \| Convertible Preferred Stock \| Preferred Stock
Initial Public Offering
Conversion of stock, shares converted \| shares	17,597,258
IPO Overallotment \| Common Stock \| Preferred Stock
Initial Public Offering
Issuance of common stock upon initial public offering, net of offering costs (in shares) \| shares	1,136,250

Fair Value of Financial Instruments -Cash and Cash Equivalents, Available-for-sale Securities, Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Short-term Investments	$ 83,547	$ 0
Unrealized gains	8	0
Unrealized losses	0	0
Restricted cash- cash	114	112
Amortized cost, total	118,538	24,660
Fair value, total	118,546	24,660
Cash and Cash Equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash and cash equivalents	23,419	24,548
Unrealized gains	2
Unrealized losses	0
Amortized cost, total	34,883
Fair value, total	34,885
Short-term Investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Unrealized gains	6
Unrealized losses	0
Amortized cost, total	83,541
Fair value, total	83,547
Restricted Cash
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Restricted cash- cash	114	$ 112
Money Market Funds
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Unrealized gains	0
Unrealized losses	0
Money Market Funds \| Cash and Cash Equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized cost basis	170
Fair value	170
Commercial Paper \| Cash and Cash Equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized cost basis	11,294
Unrealized gains	2
Unrealized losses	0
Fair value	11,296
Commercial Paper \| Short-term Investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized cost basis	21,078
Unrealized gains	2
Unrealized losses	0
Fair value	21,080
US Government Agencies \| Short-term Investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized cost basis	62,463
Unrealized gains	4
Unrealized losses	0
Fair value	$ 62,467

Fair Value of Financial Instruments -Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Assets, Fair Value Disclosure [Abstract]
Foreign currency contract, asset, fair value disclosure	$ 0	$ 0
Level 1 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Fair value	0
Level 2 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Fair value	94,843
Level 3 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Fair value	0
Fair Value \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Fair value	94,843
US Government Agencies \| Level 1 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	0
US Government Agencies \| Level 2 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	62,467
US Government Agencies \| Level 3 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	0
US Government Agencies \| Fair Value \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	62,467
Commercial Paper \| Level 1 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	0
Commercial Paper \| Level 2 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	32,376
Commercial Paper \| Level 3 \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	0
Commercial Paper \| Fair Value \| Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Short-term investments, fair value	$ 32,376

Property and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Property and equipment	$ 44,812	$ 34,345
Less: accumulated depreciation and amortization	(26,664)	(20,484)
Property and equipment, net	18,148	13,861
Capital lease	8,100	0
Capital lease, accumulated depreciation	(4,900)	(3,300)
Depreciation and amortization expense	6,900	4,900	$ 4,400
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment	18,798	12,483
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment	6,327	5,720
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment	1,545	1,330
Scanner appliances
Property, Plant and Equipment [Line Items]
Property and equipment	16,470	13,394
Scanner appliances and other computer equipment subject to subscription
Property, Plant and Equipment [Line Items]
Property and equipment, net	5,500	3,400
Scanner appliances and other computer equipment not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	1,500	200
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	1,672	1,418
Other fixed assets not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,700	$ 500

Business Combination (Details) - Nemean Networks, LLC - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2012	Aug. 31, 2010
Business Acquisition [Line Items]
Consideration for acquisition		$ 3.7
Non-contingent payment	$ 1.0
Non-contingent payment, number of shares	6,250

- 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	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Goodwill and Intangible Assets [Line Items]
Cost	$ 3,469	$ 3,420
Accumulated Amortization	(953)	(540)
Net Book Value	2,516	2,880
Intangible assets not subject to amortization	295	295
Total intangible assets, net	2,811	3,175
Amortization of intangible assets	400	400	$ 100
Goodwill	$ 317	317
Existing technology
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives	7 years
Cost	$ 1,910	1,910
Accumulated Amortization	(637)	(364)
Net Book Value	$ 1,273	1,546
Patent license
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives	14 years
Cost	$ 1,388	1,339
Accumulated Amortization	(223)	(127)
Net Book Value	$ 1,165	1,212
Non-competition agreements and other
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives	3 years
Cost	$ 171	171
Accumulated Amortization	(93)	(49)
Net Book Value	$ 78	$ 122

Goodwill and Intangible Assets, Net - Future Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
2013	$ 417
2014	392
2015	385
2016	372
2017	281
2018 and thereafter	669
Net Book Value	$ 2,516	$ 2,880

Commitments and Contingencies Line of Credit (Details) - Line of Credit - USD ($) $ in Millions	1 Months Ended
	Dec. 31, 2010	Mar. 31, 2010	Mar. 31, 2009	Dec. 31, 2012	Dec. 31, 2011
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 1.5
Number of monthly payments	30 months	30 months	30 months
Debt interest rate	6.50%	7.50%	9.00%
Increase in maximum borrowing capacity	$ 1.0	$ 0.8
Amount outstanding				$ 0.0	$ 0.9
Remaining borrowing capacity					$ 0.9

Commitments and Contingencies Leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Leased Assets [Line Items]
Rent expense	$ 4,300,000	$ 3,400,000	$ 3,300,000
Deferred rent credit, noncurrent	$ 400,000	300,000
Capital Lease Obligations \| Minimum
Leased Assets [Line Items]
Debt interest rate	1.80%
Capital Lease Obligations \| Maximum
Leased Assets [Line Items]
Debt interest rate	9.00%
Capital Addition Purchase Commitments \| Capital Lease Obligations
Leased Assets [Line Items]
Debt face amount		3,100,000
Maintenance and Support
Leased Assets [Line Items]
Recorded unconditional purchase obligation	$ 1,600,000	$ 2,600,000

Commitments and Contingencies Leases Table (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Operating Leases
2013	$ 2,831
2014	2,088
2015	1,733
2016	1,448
2017	1,358
2018 and thereafter	94
Total mimimum lease payments	9,552
Capital Leases
2013	1,213
2014	815
2015	0
2016	0
2017	0
2018 and thereafter	0
Total minimum lease payments	2,028
Less amount representing interest	(37)
Present value of minimum payments	1,991
Less current portion	(1,183)	$ (1,987)
Capital lease obligations, noncurrent	$ 808	$ 2,406

Commitments and Contingencies Sales and Other Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Sales and excise tax payable, current	$ 0.4	$ 0.3

Stockholders' Equity (Details)

Dec. 31, 2012

$ / shares

Oct. 03, 2012

$ / shares

Dec. 31, 2011

$ / shares

Dec. 31, 2010

Dec. 31, 2009

May 31, 2006

$ / warrant

Jul. 31, 2005

$ / shares

$ / warrant

Common Stock

Options outstanding under the stock option plans

6,513,508

6,312,041

5,600,875

5,212,984

Total shares reserved for future issuance

9,415,633

Convertible Preferred Stock and Preferred Stock

Preferred stock, shares authorized

20,000,000

Preferred stock, par value per share (in dollars per share) | $ / shares

$ 0.001

Warrant Exercise Price $3.66 [Member]

Warrants

Class of Warrant or Right, Granted

61,507

Exercise Price of Warrants | $ / warrant

3.66

Purchase Price Per Share | $ / shares

$ 0.10

Warrant Exercise Price $3.76 [Member]

Warrants

Class of Warrant or Right, Granted

8,185

Exercise Price of Warrants | $ / warrant

3.76

2000 Equity Incentive Plan

Common Stock

Options outstanding under the stock option plans

^[1]

6,366,633

2012 Equity Incentive Plan

Common Stock

Options outstanding under the stock option plans

^[1]

146,875

Shares available for future grants under the equity incentive plans

^[1]

2,902,125

Convertible Preferred Stock

Convertible Preferred Stock and Preferred Stock

Convertible preferred stock, shares issued

Convertible preferred stock outstanding

17,597,258.000

17,562,410.00

17,562,410

Convertible preferred stock, shares authorized

176,400,000

Convertible preferred stock, par value | $ / shares

$ 0.001

Series A convertible preferred stock [Member]

Convertible Preferred Stock and Preferred Stock

Convertible preferred stock, shares issued

4,766,543

Convertible preferred stock outstanding

4,766,543

Convertible preferred stock, shares authorized

48,079,860

Convertible preferred stock, par value | $ / shares

$ 0.001

Series B convertible preferred stock [Member]

Convertible Preferred Stock and Preferred Stock

Convertible preferred stock, shares issued

11,031,387

Convertible preferred stock outstanding

11,031,387

Convertible preferred stock, shares authorized

110,314,114

Convertible preferred stock, par value | $ / shares

$ 0.001

Series C convertible preferred stock [Member]

Convertible Preferred Stock and Preferred Stock

Convertible preferred stock, shares issued

1,799,328

Convertible preferred stock outstanding

1,799,328

Convertible preferred stock, shares authorized

18,006,026

Convertible preferred stock, par value | $ / shares

$ 0.001

Series C convertible preferred stock [Member] | Warrant Exercise Price $3.66 [Member]

Warrants

Shares Purchased Upon Exercise of Warrants

30,754

Series C convertible preferred stock [Member] | Warrant Exercise Price $3.76 [Member]

Warrants

Shares Purchased Upon Exercise of Warrants

4,094

Preferred Stock

Convertible Preferred Stock and Preferred Stock

Preferred stock, shares authorized

20,000,000

Preferred stock, par value per share (in dollars per share) | $ / shares

$ 0.001

[1]	See Note 8 for a description of these plans.

Employee Stock and Benefit Plans Plan Information (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 26, 2012

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of unvested shares repurchased (in shares)

60,126

1,000

136,876

2000 Equity Incentive Plan | Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting period

4 years

Term of award

10 years

Number of shares available for issuance

Number of shares subject to repurchase (in shares)

47,220

76,437

Liability for options early exercised

$ 0.3

$ 0.4

2000 Equity Incentive Plan | Stock Options | Minimum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award strike price as a percentage of market value

85.00%

2012 Equity Incentive Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expiration period

10 years

Number of shares available for grant

^[1]

2,902,125

2012 Equity Incentive Plan | Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting period

4 years

Term of award

10 years

Increase of Number of Shares Option

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Equity incentive plan annual increase (in shares)

3,050,000

Increase of Percentage of Shares Outstanding Option

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Equity incentive plan, annual increase, percent of shares outstanding

5.00%

[1]	See Note 8 for a description of these plans.

Employee Stock and Benefit Plans - Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	$ 2,922	$ 1,987	$ 1,752
Unrecognized employee compensation cost	$ 5,800
Unrecognized employee compensation cost, period for recognition	2 years
Non-employee share-based compensation expense	$ 500	100	100
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	272	139	77
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	649	458	346
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	993	579	460
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based employee compensation	$ 1,008	$ 811	$ 869

- 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	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term		5 years 7 months 6 days	5 years 6 months
Volatility		55.00%
Dividend yield	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	5 years 3 months 18 days
Volatility	52.00%		57.00%
Risk-free interest rate	0.60%	0.90%	1.10%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 years 1 month 6 days
Volatility	53.00%		58.00%
Risk-free interest rate	0.90%	2.30%	2.30%

Employee Stock and Benefit Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (in shares)	6,312,041	5,600,875	5,212,984
Granted (in shares)	1,478,781	1,816,850	1,357,702
Exercised (in shares)	(724,316)	(432,687)	(317,802)
Canceled (in shares)	(552,998)	(672,997)	(652,009)
Ending balance (in shares)	6,513,508	6,312,041	5,600,875	5,212,984
Vested and Expected to vest (in shares)	6,150,545
Exercisable (in shares)	6,366,588
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, beginning balance (in dollars per share)	$ 3.36	$ 2.86	$ 2.56
Weighted average exercise price, granted (in dollars per share)	8.94	5.06	4.10
Weighted average exercise price, exercised (in dollars per share)	2.86	3.09	1.89
Weighted average exercise price, canceled (in dollars per share)	6.79	3.89	3.51
Weighted average exercise price, ending balance (in dollars per share)	4.39	$ 3.36	$ 2.86	$ 2.56
Vested and Expected to vest, weighted average exercise price (in dollars per share)	4.16
Exercisable, Weighted average exercise price (in dollars per share)	$ 4.18
Weighted average remaining contractual life	6 years 7 months 6 days	6 years 10 months 24 days	6 years 4 months 24 days	6 years 7 months 6 days
Vested and Expected to vest, weighted average remaining contractual life	6 years 6 months
Exercisable, weighted average remaining contractual life	6 years 7 months 6 days
Aggregate intrinsic value	$ 67,711	$ 16,012	$ 6,964	$ 6,486
Vested and Expected to vest, aggregate intrinsic value	65,333
Exercisable, aggregate intrinsic value	$ 66,184

Employee Stock and Benefit Plans - Options Oustanding and Vested (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares, outstanding	6,513,508
Weighted average exercise price per share, outstanding (in dollar per share)	$ 4.39
Weighted average remaining contractual life, outstanding	6 years 7 months 6 days
Number of shares, vested	3,950,741
Weighted average exercise price per share, vested (in dollar per share)	$ 3.05
Stock Options
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Weighted average grant date fair value (in dollars per share)	$ 4.27	$ 2.56	$ 2.14
Grant date fair value	$ 6.3	$ 4.7	$ 2.9
Intrinsic value of options exercised	$ 4.0	$ 0.8	$ 0.7
$0.10 - $1.50
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollar per share)	$ 0.10
Exercise price range, upper limit (in dollar per share)	$ 1.50
Number of shares, outstanding	490,401
Weighted average exercise price per share, outstanding (in dollar per share)	$ 1.32
Weighted average remaining contractual life, outstanding	3 years 3 months 18 days
Number of shares, vested	490,401
Weighted average exercise price per share, vested (in dollar per share)	$ 1.32
$1.60 - $1.90
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollar per share)	1.60
Exercise price range, upper limit (in dollar per share)	$ 1.90
Number of shares, outstanding	945,782
Weighted average exercise price per share, outstanding (in dollar per share)	$ 1.90
Weighted average remaining contractual life, outstanding	4 years 1 month 6 days
Number of shares, vested	945,782
Weighted average exercise price per share, vested (in dollar per share)	$ 1.90
$2.00 - $2.80
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollar per share)	2.00
Exercise price range, upper limit (in dollar per share)	$ 2.80
Number of shares, outstanding	836,955
Weighted average exercise price per share, outstanding (in dollar per share)	$ 2.64
Weighted average remaining contractual life, outstanding	5 years
Number of shares, vested	828,156
Weighted average exercise price per share, vested (in dollar per share)	$ 2.64
$2.90 - $3.80
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollar per share)	2.90
Exercise price range, upper limit (in dollar per share)	$ 3.80
Number of shares, outstanding	1,183,268
Weighted average exercise price per share, outstanding (in dollar per share)	$ 3.80
Weighted average remaining contractual life, outstanding	6 years 10 months 24 days
Number of shares, vested	620,391
Weighted average exercise price per share, vested (in dollar per share)	$ 3.80
$3.90 - $4.40
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollar per share)	3.90
Exercise price range, upper limit (in dollar per share)	$ 4.40
Number of shares, outstanding	1,044,238
Weighted average exercise price per share, outstanding (in dollar per share)	$ 4.21
Weighted average remaining contractual life, outstanding	7 years 6 months
Number of shares, vested	663,582
Weighted average exercise price per share, vested (in dollar per share)	$ 4.17
$4.50 - $6.90
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollar per share)	4.50
Exercise price range, upper limit (in dollar per share)	$ 6.90
Number of shares, outstanding	1,025,646
Weighted average exercise price per share, outstanding (in dollar per share)	$ 5.56
Weighted average remaining contractual life, outstanding	8 years 1 month 6 days
Number of shares, vested	353,989
Weighted average exercise price per share, vested (in dollar per share)	$ 5.35
$7.00 - $13.60
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollar per share)	7.00
Exercise price range, upper limit (in dollar per share)	$ 13.60
Number of shares, outstanding	987,218
Weighted average exercise price per share, outstanding (in dollar per share)	$ 9.51
Weighted average remaining contractual life, outstanding	9 years 2 months 12 days
Number of shares, vested	48,440
Weighted average exercise price per share, vested (in dollar per share)	$ 8.59

Employee Stock and Benefit Plans - Restricted Stock (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation	$ 2,922	$ 1,987	$ 1,752
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	1,000	0	0
Stock-based employee compensation	$ 14

- Definition

+ References + Details

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other Income and Expenses [Abstract]
Foreign exchange gains (losses)	$ (179)	$ (338)	$ (372)
Amortization of premiums on short-term investments	(7)	0	0
Other income (expense)	(2)	(8)	(11)
Other income (expense), net	$ (188)	$ (346)	$ (383)

- 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 (Income Before Provision for (Benefit From) Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income (Loss) from Continuing Operations
Domestic									$ 1,656	$ 1,593	$ (21)
Foreign									982	777	664
Income before provision for income taxes	$ 1,456	$ 1,744	$ (355)	$ (207)	$ (526)	$ 533	$ 1,189	$ 1,174	$ 2,638	$ 2,370	$ 643

Income Taxes (Provision For (Benefit From) Income Taxes) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2012

^[1]

Sep. 30, 2012

^[1]

Jun. 30, 2012

^[1]

Mar. 31, 2012

^[1]

Dec. 31, 2011

^[1]

Sep. 30, 2011

^[1]

Jun. 30, 2011

^[1]

Mar. 31, 2011

^[1]

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Current

Federal

$ (18)

$ 45

$ (39)

State

202

112

Foreign

147

259

(202)

Total current provision (benefit)

331

416

(204)

Deferred

Federal

State

Foreign

Total deferred provision (benefit)

Provision for (benefit from) income taxes

$ 281

$ 77

$ (78)

$ 78

$ 125

$ 81

$ 82

$ 128

$ 358

$ 416

$ (204)

[1]	Includes a benefit from income taxes in the three months ended June 30, 2012 primarily resulting from reductions in the liability for uncertain tax positions due to the lapse of the statute of limitations or closure of tax years due to a completed audit of our French subsidiary.

Income Taxes (Tax Rate Reconciliation) (Details)	12 Months Ended
Income Taxes (Tax Rate Reconciliation) (Details)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Federal statutory rate	34.00%	34.00%	34.00%
State taxes	5.40%	3.50%	3.90%
Stock-based compensation	22.40%	19.40%	81.30%
Foreign source income	(4.10%)	1.40%	(50.80%)
Change in valuation allowance	(46.90%)	(44.00%)	(102.30%)
Other	2.80%	3.30%	2.20%
Provision for (benefit from) income taxes	13.60%	17.60%	(31.70%)

Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Deferred Tax Assets
Net operating loss carryforwards	$ 19,658	$ 22,584
Research and development credit carryforwards	4,055	3,744
Accrued liabilities	535	409
Deferred revenues	3,085	1,670
Deferred rent	153	112
Intangible assets	385	198
Share-based compensation	843	506
Foreign	4	30
Other	403	463
Gross deferred tax assets	29,121	29,716
Valuation allowance	(26,257)	(26,766)
Net deferred tax assets	2,864	2,950
Deferred Tax Liabilities
Fixed assets	(2,854)	(2,884)
Intangible assets	(27)	0
Total deferred tax liabilities	(2,881)	(2,884)
Net deferred tax assets (liabilities)	$ (17)	$ 66

Income Taxes (Current and Non-Current Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Current deferred tax assets	$ 106	$ 69
Current deferred tax liabilities	0	0
Noncurrent deferred tax assets	0	0
Noncurrent deferred tax liabilities	(123)	(3)
Net deferred tax assets (liabilities)	$ (17)	$ 66

- Definition

Amount of deferred tax liability attributable to taxable temporary differences, net of deferred tax asset attributable to deductible temporary differences and carryforwards net of valuation allowances expected to be realized or consumed within one year or operating cycle, if longer.

+ References + Details

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits beginning balance	$ 2,792	$ 2,648	$ 4,495
Gross increase for tax positions of prior years	0	87	71
Gross decrease for tax positions of prior years	(46)	(120)	(1,792)
Gross increase for tax positions of current year	140	242	276
Settlements	(106)	0	0
Lapse of statute of limitations	(133)	(65)	(402)
Total unrecognized tax benefits	$ 2,647	$ 2,792	$ 2,648

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Tax [Line Items]
Valuation allowance increase (decrease)	$ (0.5)	$ (0.8)
Undistributed earnings of foreign subsidiaries	8.2	7.5
Unrecognized tax benefits that would impact effective tax rate	1.0	$ 1.2	$ 0.5
Internal Revenue Service (IRS) [Member]
Income Tax [Line Items]
Operating loss carryforwards	52.9
Internal Revenue Service (IRS) [Member] \| Research and Development Credits [Member]
Income Tax [Line Items]
Tax credit carryforward	3.1
State and Local Jurisdiction [Member]
Income Tax [Line Items]
Operating loss carryforwards	29.5
State and Local Jurisdiction [Member] \| Research and Development Credits [Member]
Income Tax [Line Items]
Tax credit carryforward	$ 3.8

Segment Information and Information about Geographic Area (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012 USD ($)	Sep. 30, 2012 USD ($)	Jun. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Sep. 30, 2011 USD ($)	Jun. 30, 2011 USD ($)	Mar. 31, 2011 USD ($)	Dec. 31, 2012 USD ($) segment	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment									1
Revenues	$ 24,657	$ 23,382	$ 22,190	$ 21,191	$ 20,652	$ 19,375	$ 18,495	$ 17,690	$ 91,420	$ 76,212	$ 65,432
United States
Segment Reporting Information [Line Items]
Revenues									62,616	51,044	43,669
Other
Segment Reporting Information [Line Items]
Revenues									$ 28,804	$ 25,168	$ 21,763

Net Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Numerator:
Net income	$ 1,175	$ 1,667	$ (277)	$ (285)	$ (651)	$ 452	$ 1,107	$ 1,046	$ 2,280	$ 1,954	$ 847
Net income attributable to participating securities									(1,204)	(1,518)	(668)
Net income attributable to common stockholders - basic	$ 1,159	$ 415	$ (277)	$ (285)	$ (651)	$ 102	$ 244	$ 227	1,076	436	179
Undistributed earnings allocated to participating securities									1,201	1,516	666
Net income available to common stockholders - diluted									$ 2,277	$ 1,952	$ 845
Denominator:
Weighted - average shares used in computing net income (loss) per share attributable to common stockholders - basic (in shares)									11,891	5,053	4,706
Effect of potentially dillutive securities:
Convertible preferred stock (in shares)									13,270	17,590	17,562
Common stock options (in shares)									3,187	1,537	1,282
Warrants (in shares)									0	2	4
Contingently issuable shares related to an acquisition (in shares)									4	12	8
Weighted - average shares used in computing net income (loss) per share attributable to common stockholders - diluted (in shares)									28,352	24,194	23,562
Basic (usd per share)	$ 0.04	$ 0.07	$ (0.05)	$ (0.05)	$ (0.13)	$ 0.02	$ 0.05	$ 0.05	$ 0.09	$ 0.09	$ 0.04
Diluted (usd per share)	$ 0.03	$ 0.06	$ (0.05)	$ (0.05)	$ (0.13)	$ 0.02	$ 0.05	$ 0.04	$ 0.08	$ 0.08	$ 0.04
Antidilutive Securities
Common stock options (in shares)									772	2,758	1,948

Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Revenues [Abstract]

Revenues

$ 24,657

$ 23,382

$ 22,190

$ 21,191

$ 20,652

$ 19,375

$ 18,495

$ 17,690

$ 91,420

$ 76,212

$ 65,432

Cost of revenues

4,981

4,634

4,629

4,160

4,123

3,225

3,026

2,873

18,404

13,247

11,204

Gross profit

19,676

18,748

17,561

17,031

16,529

16,150

15,469

14,817

73,016

62,965

54,228

Operating expenses:

Research and development

4,870

5,076

5,148

5,101

4,953

4,922

4,994

4,764

20,195

19,633

15,780

Sales and marketing

9,911

8,797

9,784

9,246

9,229

7,985

7,310

7,002

37,738

31,526

29,056

General and administrative

3,268

3,154

2,843

2,814

2,390

2,249

2,047

2,214

12,079

8,900

8,183

Total operating expenses

18,049

17,027

17,775

17,161

16,572

15,156

14,351

13,980

70,012

60,059

53,019

Income from operations

1,627

1,721

(214)

(130)

(43)

994

1,118

837

3,004

2,906

1,209

Other income (expense), net

(171)

^[1]

(141)

^[1]

(77)

^[1]

(483)

^[1]

(461)

^[1]

337

^[1]

(366)

(536)

(566)

Income before provision for income taxes

1,456

1,744

(355)

(207)

(526)

533

1,189

1,174

2,638

2,370

643

Provision for (benefit from) income taxes

281

^[2]

(78)

^[2]

125

^[2]

128

^[2]

358

416

(204)

Net income

1,175

1,667

(277)

(285)

(651)

452

1,107

1,046

2,280

1,954

847

Net income (loss) attributable to common stockholders

$ 1,159

$ 415

$ (277)

$ (285)

$ (651)

$ 102

$ 244

$ 227

$ 1,076

$ 436

$ 179

Earnings Per Share [Abstract]

Basic (in usd per share)

$ 0.04

$ 0.07

$ (0.05)

$ (0.13)

$ 0.02

$ 0.05

$ 0.09

$ 0.04

Diluted (in usd per share)

$ 0.03

$ 0.06

$ (0.05)

$ (0.13)

$ 0.02

$ 0.05

$ 0.04

$ 0.08

$ 0.04

[1]	Includes significant foreign currency exchange losses in the three months ended September 30, 2011 and December 31, 2011.
[2]	Includes a benefit from income taxes in the three months ended June 30, 2012 primarily resulting from reductions in the liability for uncertain tax positions due to the lapse of the statute of limitations or closure of tax years due to a completed audit of our French subsidiary.