Quarterly Financial Data (Tables)
 12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Consolidated Statement of Operations Data

 

 

For the Three Months Ended

 

 

 

2016

 

2015

 

 

   

March 31, 

   

June 30, 

   

September 30, 

   

December 31, 

   

March 31, 

   

June 30, 

   

September 30, 

   

December 31, 

   

 

 

 

(In thousands)

 

Revenue

 

$
54,528

 

$
48,363

 

$
51,381

 

$
46,309

 

$
69,470

 

$
56,150

 

$
63,250

 

$
61,030

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform commissions, royalties and other

 

 
20,320

 

 
18,534

 

 
18,918

 

 
17,467

 

 
26,310

 

 
21,231

 

 
25,890

 

 
22,251

 

Impairment of prepaid royalties and minimum guarantees

 

 
43

 

 
105

 

 
29,836

(d)

 
123

 

 

 —

 

 
89

 

 
1,555

 

 
858

 

Impairment and amortization of intangible assets

 

 
2,324

 

 
2,336

 

 
7,320

 

 
2,812

 

 
2,434

 

 
2,434

 

 
2,360

 

 
2,325

 

Total cost of revenue

 

 
22,687

 

 
20,975

 

 
56,074

 

 
20,402

 

 
28,744

 

 
23,754

 

 
29,805

 

 
25,434

 

Gross profit

 

 
31,841

 

 
27,388

 

 
(4,693)

 

 
25,907

 

 
40,726

 

 
32,396

 

 
33,445

 

 
35,596

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 
20,312

 

 
20,721

 

 
20,080

 

 
20,766

 

 
18,243

 

 
18,308

 

 
16,304

 

 
20,001

 

Sales and marketing

 

 
12,624

 

 
10,935

 

 
10,104

 

 
14,387

 

 
12,438

 

 
12,771

 

 
12,302

 

 
10,729

 

General and administrative

 

 
7,984

 

 
7,096

 

 
7,011

 

 
8,134

 

 
7,406

 

 
7,429

 

 
4,419

 

 
6,838

 

Amortization of intangible assets

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 
127

 

 
32

 

 
31

 

 
11

 

Restructuring charge

 

 
106

(a)

 
2,116

(b)

 
57

(c)

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 
1,075

 

Total operating expenses

 

 
41,026

 

 
40,868

 

 
37,252

 

 
43,287

 

 
38,214

 

 
38,540

 

 
33,056

 

 
38,654

 

Income/(loss) from operations

 

 
(9,185)

 

 
(13,480)

 

 
(41,945)

 

 
(17,380)

 

 
2,512

 

 
(6,144)

 

 
389

 

 
(3,058)

 

Interest and other income/(expense), net

 

 
469

 

 
(4,453)

 

 
(1,653)

 

 
(114)

 

 
(284)

 

 
(174)

 

 
(152)

 

 
(134)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income taxes

 

 
(8,716)

 

 
(17,933)

 

 
(43,598)

 

 
(17,494)

 

 
2,228

 

 
(6,318)

 

 
237

 

 
(3,192)

 

Income tax benefit/(provision)

 

 
166

 

 
(16)

 

 
(129)

 

 
280

 

 
(1,104)

 

 
809

 

 
(79)

 

 
234

 

Net income /(loss)

 

$
(8,550)

 

$
(17,949)

 

$
(43,727)

 

$
(17,214)

 

$
1,124

 

$
(5,509)

 

$
158

 

$
(2,958)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$
(0.07)

 

$
(0.14)

 

$
(0.33)

 

$
(0.13)

 

$
0.01

 

$
(0.05)

 

$
0.00

 

$
(0.02)

 

Diluted

 

$
(0.07)

 

$
(0.14)

 

$
(0.33)

 

$
(0.13)

 

$
0.01

 

$
(0.05)

 

$
0.00

 

$
(0.02)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Includes $106 of restructuring charges relating to employee termination costs in the Company’s Long Beach office.

(b)

Includes $1,421 of restructuring charges relating to employee termination costs in the Company’s San Francisco, APAC, and Washington offices, and $695 of restructuring charges relating to facility costs in the Company’s Washington and China Korea offices

(c)

Includes $11 of restructuring charges relating to employee termination costs in the Company’s China and Korea offices, and $48 of restructuring charges relating to facility costs in the Company’s Washington, China, and Korea offices.

(d)

These charges are related to impairment of prepaid guaranteed royalties and license fees paid to an affiliate of one of the Company’s principal stockholders in connection with the Company’s game, Rival Fire, guaranteed royalty payments for certain of its celebrity license agreements, and certain other prepaid royalties.