Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2013	Jul. 22, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	AWARE INC /MA/
Entity Central Index Key	0001015739
Trading Symbol	awre
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,570,731
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 75,755	$ 71,074
Accounts receivable, net	3,736	3,457
Receivable from patent arrangement		1,121
Deferred tax assets	584	817
Prepaid expenses and other current assets	567	528
Total current assets	80,642	76,997
Property and equipment, net	5,797	5,904
Investments	2,020	2,010
Long term deferred tax assets	917	943
Total assets	89,376	85,854
Current liabilities:
Accounts payable	193	328
Accrued expenses	126	148
Accrued compensation	696	817
Accrued professional	193	142
Deferred revenue	3,127	2,204
Total current liabilities	4,335	3,639
Long-term deferred revenue	200	319
Stockholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding 22,519,357 as of June 30, 2013 and 22,509,518 as of December 31, 2012	225	225
Additional paid-in capital	101,322	100,561
Accumulated other comprehensive loss	(30)	(50)
Accumulated deficit	(16,676)	(18,840)
Total stockholders' equity	84,841	81,896
Total liabilities and stockholders' equity	$ 89,376	$ 85,854

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	22,519,357	22,509,518
Common stock, shares outstanding	22,519,357	22,509,518

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenue:
Software licenses	$ 1,562	$ 1,843	$ 5,370	$ 4,683
Software maintenance	1,123	929	2,164	1,810
Services	759	683	1,235	1,376
Hardware sales	1,129		1,129
Royalties	277	624	568	1,115
Total revenue	4,850	4,079	10,466	8,984
Costs and expenses:
Cost of hardware sales	813		813
Cost of services	359	361	581	717
Research and development	1,495	1,529	3,052	2,965
Selling and marketing	972	995	2,067	2,074
General and administrative	928	1,075	1,659	2,061
Total costs and expenses	4,567	3,960	8,172	7,817
Operating income before patent related income	283	119	2,294	1,167
Gain on sale of patent assets		71,226		71,226
Income from patent arrangement			780
Operating income after patent related income	283	71,345	3,074	72,393
Other income		58		85
Interest income	78	40	161	92
Income from continuing operations before income taxes	361	71,443	3,235	72,570
Provision for income taxes	54	16,667	1,071	16,670
Income from continuing operations	307	54,776	2,164	55,900
Income from discontinued operations, net of income taxes		150		144
Net income	307	54,926	2,164	56,044
Basic net income per share:
Basic net income per share from continuing operations (in dollars per share)	$ 0.01	$ 2.51	$ 0.10	$ 2.63
Basic net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.01	$ 0.00	$ 0.01
Basic net income per share (in dollars per share)	$ 0.01	$ 2.52	$ 0.10	$ 2.64
Diluted net income per share:
Diluted net income per share from continuing operations (in dollars per share)	$ 0.01	$ 2.48	$ 0.10	$ 2.59
Diluted net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.01	$ 0.00	$ 0.01
Diluted net income per share (in dollars per share)	$ 0.01	$ 2.49	$ 0.10	$ 2.60
Weighted-average shares - basic (in shares)	22,517	21,757	22,514	21,241
Weighted-average shares - diluted (in shares)	22,687	22,099	22,625	21,583
Comprehensive income:
Net income	307	54,926	2,164	56,044
Other comprehensive income:
Unrealized gains (losses) on available for sale securities	(38)	(39)	20	20
Comprehensive income	$ 269	$ 54,887	$ 2,184	$ 56,064

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net income	$ 2,164	$ 56,044
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	217	235
Stock-based compensation	227	278
Gain on sale of patent assets		(71,226)
Amortization of premium (discount) on investments	10	(24)
Gain on sale of investments		(85)
Provision for doubtful accounts		4
Changes in assets and liabilities:
Accounts receivable	(279)	(775)
Receivable from patent arrangement	1,121
Inventories		282
Prepaid expenses and other current assets	(39)	(25)
Deferred tax assets	259
Accounts payable	(135)	144
Accrued expenses, compensation, and professional	(92)	291
Accrued income taxes		4,083
Deferred revenue	804	294
Net cash provided by (used in) operating activities	4,257	(10,480)
Cash flows from investing activities:
Purchases of property and equipment	(110)	(59)
Sales of investments		855
Proceeds from sale of patent assets, net		71,226
Net cash provided by (used in) investing activities	(110)	72,022
Cash flows from financing activities:
Proceeds from issuance of common stock	46	5,798
Payment of dividends		(25,506)
Excess tax benefits from stock-based compensation	488	12,684
Payments made for taxes of employees who surrendered shares related to unrestricted stock		(37)
Net cash provided by (used in) financing activities	534	(7,061)
Increase in cash and cash equivalents	4,681	54,481
Cash and cash equivalents, beginning of period	71,074	46,577
Cash and cash equivalents, end of period	75,755	101,058
Supplemental disclosure:
Cash paid for income taxes	$ 464	$ 3

Basis of Presentation

6 Months Ended

Jun. 30, 2013

Basis Of Accounting [Abstract]

Basis of Presentation

Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the three years ended December 31, 2012 in conjunction with our 2012 Annual Report on Form 10-K. This Form 10-Q should be read in conjunction with that Form 10-K.

The accompanying unaudited consolidated balance sheets, statements of comprehensive income, and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at June 30, 2013, and of operations and cash flows for the interim periods ended June 30, 2013 and 2012.

The results of operations for the interim period ended June 30, 2013 are not necessarily indicative of the results to be expected for the year.

Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements. The Financial Accounting Standards Board (“FASB”) Codification defines fair value, and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to the unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the FASB Codification are: i) Level 1 – valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; ii) Level 2 – valuations that are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and iii) Level 3 – valuations that require inputs that are both significant to the fair value measurement and unobservable.

Cash and cash equivalents, which primarily include money market mutual funds, were $75.8 million and $71.1 million as of June 30, 2013 and December 31, 2012, respectively. We classified our cash equivalents of $67.1 million as of June 30, 2013 and December 31, 2012 within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

Our investments, which consist of high yield corporate debt securities, are also classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. We categorize our investments as available-for-sale securities, and carry them at fair value in our financial statements. We had $2.0 million of available-for-sale investments as of June 30, 2013 and December 31, 2012.

As of June 30, 2013, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):


	Fair Value Measurement at June 30, 2013 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Corporate debt securities	$	2,020	$	-	$	-
Money market funds (included in cash and cash equivalents)		67,084
Total	$	69,104	$	-	$	-

As of December 31, 2012, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):


	Fair Value Measurement at December 31, 2012 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Corporate debt securities	$	2,010	$	-	$	-
Money market funds (included in cash and cash equivalents)		67,050
Total	$	69,060	$	-	$	-

Computation of Earnings per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Computation of Earnings per Share

Computation of Earnings per Share. Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation.

Net income per share is calculated as follows (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net income:
Income from continuing operations	$	307	$	54,776	$	2,164	$	55,900
Income from discontinued operations		-		150		-		144
Net income	$	307	$	54,926	$	2,164	$	56,044

Shares outstanding:
Weighted-average common shares outstanding		22,517		21,757		22,514		21,241
Additional dilutive common stock equivalents		170		342		111		342
Diluted shares outstanding		22,687		22,099		22,625		21,583

Basic net income per share:
Basic net income per share from continuing operations	$	0.01	$	2.51	$	0.10	$	2.63
Basic net income per share from discontinued operations		0.00		0.01		0.00		0.01
Basic net income per share	$	0.01	$	2.52	$	0.10	$	2.64

Diluted net income per share:
Diluted net income per share from continuing operations	$	0.01	$	2.48	$	0.10	$	2.59
Diluted net income per share from discontinued operations		0.00		0.01		0.00		0.01
Diluted net income per share	$	0.01	$	2.49	$	0.10	$	2.60

For the three month periods ended June 30, 2013 and 2012, options to purchase 877,238 and 826,004 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.

For the six month periods ended June 30, 2013 and 2012, options to purchase 825,338 and 1,034,754 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Stock-Based Compensation

D)	Stock-Based Compensation. The following table presents stock-based employee compensation expenses included in our unaudited consolidated statements of comprehensive income (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012

Cost of services	$	11	$	6	$	11	$	11
Research and development		27		31		27		62
Selling and marketing		5		57		5		135
General and administrative		174		31		184		57
Income from discontinued operations		-		6		-		13
Stock-based compensation expense	$	217	$	131	$	227	$	278

Stock Option Grants. We grant stock options under our 2001 Nonqualified Stock Plan. We estimate the fair value of stock options using the Black-Scholes valuation model. This valuation model takes into account the exercise price of the award, as well as a variety of significant assumptions. The assumptions used to estimate the fair value of stock options include the expected term, the expected volatility of our stock over the expected term, the risk-free interest rate over the expected term, and our expected annual dividend yield. We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair values of our stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards.

Unrestricted Stock Grants. We also grant unrestricted shares of stock under our 2001 Nonqualified Stock Plan. Stock-based compensation expense for stock grants is determined based on the fair market value of our stock on the date of grant, provided the number of shares in the grant is fixed on the grant date.

The following summarizes stock-based grants in 2013 and 2012:

●

Stock Option Grants – We did not grant any stock options in the three and six month periods ended June 30, 2013. We granted stock options for 25,000 shares and 50,000 shares in the three and six month periods ended June 30, 2012, respectively.

●

Unrestricted Stock Grants – We granted shares of unrestricted stock in July 2010 and April 2013. The following summarizes those grants and their related impact on results of operations for the three and six months ended June 30, 2013 and 2012:

July 2010 Unrestricted Stock Grant. In July 2010, we granted 575,443 shares of stock to directors, officers and employees. There was no stock-based compensation expense related to this grant in the three and six month periods ended June 30, 2013. We expensed $94,000 and $189,000 of stock-based compensation expense related to this grant in the three and six month periods ended June 30, 2012, respectively.

April 2013 Unrestricted Stock Grant. In April 2013, we granted 130,000 shares of unrestricted stock to directors, officers and employees. The shares are to be issued in two equal installments shortly after June 30, 2013 and December 31, 2013, provided each grantee is serving as a director, officer or employee on those dates. We expensed $208,000 of stock-based compensation expense related to this grant in the three months ended June 30, 2013. The unamortized stock-based compensation charge associated with this grant as of June 30, 2013 is $415,000, which will be charged ratably to expense in the third and fourth quarters of 2013.

Business Segments

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Business Segments

E) Business Segments. We organize ourselves into multiple segments reporting to the chief operating decision makers. The following table provides reportable segment financial data for the three and six month periods ended June 30, 2013 and 2012 (in thousands):


	Segments
	Biometrics		DSL Service						Total
	& Imaging		Assurance			Corporate			Company
Three Months Ended June 30, 2013
Revenue	$	4,150	$	423		$	277		$	4,850

Operating income (loss) before patent related income		926		(481	)		(162	)		283
Interest income							78			78
Income from continuing operations before taxes										361
Provision for income taxes							(54	)		(54	)
Income from continuing operations										307
Income from discontinued operations, net of tax										-
Net income									$	307

Three Months Ended June 30, 2012
Revenue	$	2,890	$	565		$	624		$	4,079

Operating income (loss) before patent related income		897		(417	)		(361	)		119
Gain on sale of patent assets							71,226			71,226
Other income							58			58
Interest income							40			40
Income from continuing operations before taxes										71,443
Provision for income taxes							(16,667	)		(16,667	)
Income from continuing operations										54,776
Income from discontinued operations, net of tax										150
Net income									$	54,926


	Segments
	Biometrics		DSL Service						Total
	& Imaging		Assurance			Corporate			Company
Six Months Ended June 30, 2013
Revenue	$	8,838	$	1,061		$	567		$	10,466

Operating income (loss) before patent related income		3,332		(809	)		(229	)		2,294
Income from patent arrangement							780			780
Interest income							161			161
Income from continuing operations before taxes										3,235
Provision for income taxes							(1,071	)		(1,071	)
Income from continuing operations										2,164
Income from discontinued operations, net of tax										-
Net income									$	2,164

Six Months Ended June 30, 2012
Revenue	$	6,560	$	1,309		$	1,115		$	8,984

Operating income (loss) before patent related income		2,614		(617	)		(830	)		1,167
Gain on sale of patent assets							71,226			71,226
Other income							85			85
Interest income							92			92
Income from continuing operations before taxes										72,570
Provision for income taxes							(16,670	)		(16,670	)
Income from continuing operations										55,900
Income from discontinued operations, net of tax										144
Net income									$	56,044

We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012

United States	$	3,574	$	2,854	$	7,356	$	5,953
Germany		171		445		333		868
Rest of World		1,105		780		2,777		2,163
	$	4,850	$	4,079	$	10,466	$	8,984

Gain on Sale of Patent Assets

6 Months Ended

Jun. 30, 2013

Gain On Sale Of Patent Assets [Abstract]

Gain on Sale of Patent Assets

Gain on Sale of Patent Assets. In the second quarter of 2012, we completed a transaction to sell patents pertaining to wireless technology for $75 million. The proceeds from the sale were reduced by $3.8 million of transaction costs, which consisted primarily of fees from the law firm that assisted us in the sale. We recorded a $71.2 million gain on the sale of patents in the three and six months ended June 30, 2012.

Income from patent arrangement

6 Months Ended

Jun. 30, 2013

Income From Patent Arrangement [Abstract]

Income from patent arrangement

Income from patent arrangement. We entered into an arrangement with an unaffiliated third party in 2010 under which we assigned patents in return for royalties on proceeds from patent monetization efforts by the third party. We recorded $0.0 million and $0.8 million of income from this patent arrangement in the three and six months ended June 30, 2013, respectively.

Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

I)	Income Taxes. Income tax expense for the three and six months ended June 30, 2013 was $54,000 and $1.1 million, respectively. Income tax expense for 2013 was based on the U.S. statutory rate of 34%, increased by state income taxes.

In the six months ended June 30, 2013, we utilized deferred tax assets to reduce our tax liability payable to the government. A portion of the deferred tax assets we used comprised cumulative deductions for stock options in excess of book expense. Under income tax accounting rules, that portion of tax benefits attributable to such deductions must be recorded as an adjustment to equity versus a reduction of income tax expense. In the six months ended June 30, 2013, the tax benefits from such stock-based awards were $488,000, which we recorded as an equity adjustment to additional paid-in capital.

As of June 30, 2013, we had a total of $1.5 million of deferred tax assets for which we had recorded no valuation allowance. We will continue to assess the level of valuation allowance in future periods. Should evidence regarding the realizability of tax assets change at a future point in time, the valuation allowance will be adjusted accordingly.

In addition to deferred tax assets carried on our balance sheet, we also had net federal and state research and development credit carryforwards available at December 31, 2012 of $5.1 million and $0.7 million. These credits were not recorded as tax assets as they relate to excess stock compensation deductions that may not be recorded as tax assets under generally accepted accounting principles until the amounts have been utilized to reduce our tax liability. To the extent that these assets are used to reduce future taxes, the benefit will be recorded as a reduction to additional paid-in capital. The aforementioned $488,000 equity adjustment to additional paid-in capital in the first six months of 2013 was related to these deferred tax assets.

Income tax expense was $16.7 million for the three and six months ended June 30, 2012. Income tax expense in 2012 was driven by a $71.2 million gain on sale of patent assets. The $16.7 million income tax expense consisted of a $4.0 million current income tax liability plus a $12.7 million non-cash adjustment related to cumulative deduction for stock options in excess of book expense that was recorded to equity.

Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations. In January 2012, our Board of Directors approved the shutdown of our DSL service assurance hardware product line which was previously a component of our DSL Service Assurance Segment. We completed the shutdown in 2012 and no longer have any continuing involvement with or cash flows from this product line. The results of our DSL service assurance hardware product line have been included in discontinued operations in the consolidated statements of comprehensive income. Income from discontinued operations attributable to the DSL service assurance hardware product line was (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012

Revenue	$	-	$	1,255	$	-	$	2,084
Expenses		-		1,004		-		1,840
Income before income taxes		-		251		-		244
Income taxes		-		101		-		100
Income from discontinued operations	$	-	$	150	$	-	$	144

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of assets that are measured at fair value on a recurring basis


	Fair Value Measurement at June 30, 2013 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Corporate debt securities	$	2,020	$	-	$	-
Money market funds (included in cash and cash equivalents)		67,084
Total	$	69,104	$	-	$	-


	Fair Value Measurement at December 31, 2012 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Corporate debt securities	$	2,010	$	-	$	-
Money market funds (included in cash and cash equivalents)		67,050
Total	$	69,060	$	-	$	-

Computation of Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Schedule of net income per share


	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net income:
Income from continuing operations	$	307	$	54,776	$	2,164	$	55,900
Income from discontinued operations		-		150		-		144
Net income	$	307	$	54,926	$	2,164	$	56,044

Shares outstanding:
Weighted-average common shares outstanding		22,517		21,757		22,514		21,241
Additional dilutive common stock equivalents		170		342		111		342
Diluted shares outstanding		22,687		22,099		22,625		21,583

Basic net income per share:
Basic net income per share from continuing operations	$	0.01	$	2.51	$	0.10	$	2.63
Basic net income per share from discontinued operations		0.00		0.01		0.00		0.01
Basic net income per share	$	0.01	$	2.52	$	0.10	$	2.64

Diluted net income per share:
Diluted net income per share from continuing operations	$	0.01	$	2.48	$	0.10	$	2.59
Diluted net income per share from discontinued operations		0.00		0.01		0.00		0.01
Diluted net income per share	$	0.01	$	2.49	$	0.10	$	2.60

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of stock-based employee compensation expense included in statements of comprehensive income


	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012

Cost of services	$	11	$	6	$	11	$	11
Research and development		27		31		27		62
Selling and marketing		5		57		5		135
General and administrative		174		31		184		57
Income from discontinued operations		-		6		-		13
Stock-based compensation expense	$	217	$	131	$	227	$	278

Business Segments (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Schedule of results of operations for reportable segments


	Segments
	Biometrics		DSL Service						Total
	& Imaging		Assurance			Corporate			Company
Three Months Ended June 30, 2013
Revenue	$	4,150	$	423		$	277		$	4,850

Operating income (loss) before patent related income		926		(481	)		(162	)		283
Interest income							78			78
Income from continuing operations before taxes										361
Provision for income taxes							(54	)		(54	)
Income from continuing operations										307
Income from discontinued operations, net of tax										-
Net income									$	307

Three Months Ended June 30, 2012
Revenue	$	2,890	$	565		$	624		$	4,079

Operating income (loss) before patent related income		897		(417	)		(361	)		119
Gain on sale of patent assets							71,226			71,226
Other income							58			58
Interest income							40			40
Income from continuing operations before taxes										71,443
Provision for income taxes							(16,667	)		(16,667	)
Income from continuing operations										54,776
Income from discontinued operations, net of tax										150
Net income									$	54,926


	Segments
	Biometrics		DSL Service						Total
	& Imaging		Assurance			Corporate			Company
Six Months Ended June 30, 2013
Revenue	$	8,838	$	1,061		$	567		$	10,466

Operating income (loss) before patent related income		3,332		(809	)		(229	)		2,294
Income from patent arrangement							780			780
Interest income							161			161
Income from continuing operations before taxes										3,235
Provision for income taxes							(1,071	)		(1,071	)
Income from continuing operations										2,164
Income from discontinued operations, net of tax										-
Net income									$	2,164

Six Months Ended June 30, 2012
Revenue	$	6,560	$	1,309		$	1,115		$	8,984

Operating income (loss) before patent related income		2,614		(617	)		(830	)		1,167
Gain on sale of patent assets							71,226			71,226
Other income							85			85
Interest income							92			92
Income from continuing operations before taxes										72,570
Provision for income taxes							(16,670	)		(16,670	)
Income from continuing operations										55,900
Income from discontinued operations, net of tax										144
Net income									$	56,044

Schedule of revenues generated from geographic regions


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012

United States	$	3,574	$	2,854	$	7,356	$	5,953
Germany		171		445		333		868
Rest of World		1,105		780		2,777		2,163
	$	4,850	$	4,079	$	10,466	$	8,984

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule of income (loss) from discontinued operations


	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012

Revenue	$	-	$	1,255	$	-	$	2,084
Expenses		-		1,004		-		1,840
Income before income taxes		-		251		-		244
Income taxes		-		101		-		100
Income from discontinued operations	$	-	$	150	$	-	$	144

Fair Value Measurements (Details) (Fair value on recurring basis, USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 69,104	$ 69,060
Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Corporate debt securities \| Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities, fair value	2,020	2,010
Corporate debt securities \| Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities, fair value
Corporate debt securities \| Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities, fair value
Money market funds (included in cash and cash equivalents) \| Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, fair value	67,084	67,050
Money market funds (included in cash and cash equivalents) \| Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, fair value
Money market funds (included in cash and cash equivalents) \| Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, fair value

Fair Value Measurements (Detail Textuals) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, which primarily include money market funds	$ 75,755	$ 71,074	$ 101,058	$ 46,577
Corporate debt securities \| Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair value on recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities, fair value	2,020	2,010
Money market funds (included in cash and cash equivalents) \| Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair value on recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, which primarily include money market funds	$ 67,084	$ 67,050

Computation of Earnings per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net income:
Income from continuing operations	$ 307	$ 54,776	$ 2,164	$ 55,900
Income from discontinued operations		150		144
Net income	$ 307	$ 54,926	$ 2,164	$ 56,044
Shares outstanding:
Weighted-average common shares outstanding (in shares)	22,517	21,757	22,514	21,241
Additional dilutive common stock equivalents (in shares)	170	342	111	342
Diluted shares outstanding (in shares)	22,687	22,099	22,625	21,583
Basic net income per share:
Basic net income per share from continuing operations (in dollars per share)	$ 0.01	$ 2.51	$ 0.10	$ 2.63
Basic net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.01	$ 0.00	$ 0.01
Basic net income per share (in dollars per share)	$ 0.01	$ 2.52	$ 0.10	$ 2.64
Diluted net income per share:
Diluted net income per share from continuing operations (in dollars per share)	$ 0.01	$ 2.48	$ 0.10	$ 2.59
Diluted net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.01	$ 0.00	$ 0.01
Diluted net income per share (in dollars per share)	$ 0.01	$ 2.49	$ 0.10	$ 2.60

Stock-Based Compensation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 217	$ 131	$ 227	$ 278
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	11	6	11	11
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	27	31	27	62
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	5	57	5	135
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	174	31	184	57
Income from discontinued operations
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		$ 6		$ 13

Stock-Based Compensation (Detail Textuals) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended	1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2012 Stock Option	Jun. 30, 2012 Stock Option	Apr. 30, 2013 Unrestricted Stock Grants	Jul. 31, 2010 Unrestricted Stock Grants	Jun. 30, 2013 Unrestricted Stock Grants	Jun. 30, 2012 Unrestricted Stock Grants	Jun. 30, 2012 Unrestricted Stock Grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted Stock options (in shares)					25,000	50,000
Unrestricted stock grants to directors, officers and employees (in shares)							130,000	575,443
Stock-based compensation expense	$ 217	$ 131	$ 227	$ 278					$ 208	$ 94	$ 189
Unamortized stock-based compensation									$ 415

Business Segment - Results of operations for reportable segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenue	$ 4,850	$ 4,079	$ 10,466	$ 8,984
Operating income (loss) before patent related income	283	119	2,294	1,167
Gain on sale of patent assets		71,226		71,226
Income from patent arrangement			780
Other income		58		85
Interest income	78	40	161	92
Income from continuing operations before taxes	361	71,443	3,235	72,570
Provision for income taxes	(54)	(16,667)	(1,071)	(16,670)
Income from continuing operations	307	54,776	2,164	55,900
Income from discontinued operations, net of tax		150		144
Net income	307	54,926	2,164	56,044
Biometrics & Imaging
Revenue	4,150	2,890	8,838	6,560
Operating income (loss) before patent related income	926	897	3,332	2,614
DSL Service Assurance
Revenue	423	565	1,061	1,309
Operating income (loss) before patent related income	(481)	(417)	(809)	(617)
Corporate
Revenue	277	624	567	1,115
Operating income (loss) before patent related income	(162)	(361)	(229)	(830)
Gain on sale of patent assets		71,226		71,226
Income from patent arrangement			780
Other income		58		85
Interest income	78	40	161	92
Provision for income taxes	$ (54)	$ (16,667)	$ (1,071)	$ (16,670)

Gain on Sale of Patent Assets (Detail Textuals) (USD $)	3 Months Ended	6 Months Ended
Gain on Sale of Patent Assets (Detail Textuals) (USD $)	Jun. 30, 2012	Jun. 30, 2012
Finite-Lived Intangible Assets [Line Items]
Gain on sale of patent assets	$ 71,226,000	$ 71,226,000
Wireless patent
Finite-Lived Intangible Assets [Line Items]
Sale of patent	75,000,000	75,000,000
Transaction cost	3,800,000	3,800,000
Gain on sale of patent assets	$ 71,226,000	$ 71,226,000

Income Taxes (Detail Textuals) (USD $)	3 Months Ended		6 Months Ended
Income Taxes (Detail Textuals) (USD $)	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Income tax expense	$ 54,000	$ 16,667,000	$ 1,071,000	$ 16,670,000
Income tax U.S. statutory rate			34.00%
Tax benefits from such stock-based awards			488,000
Deferred tax assets	1,500,000		1,500,000
Total deferred tax assets of federal research and development credit carryforwards					5,100,000
Total deferred tax assets of state research and development credit carryforwards					700,000
Equity adjustment to additional paid-in capital			488,000
Income tax liability current		4,000,000		4,000,000
Non cash adjustment related to cumulative deduction for stock options in excess of book expense		12,700,000		12,700,000
Gain on sale of patent assets				$ 71,226,000

Discontinued Operations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Discontinued Operations and Disposal Groups [Abstract]
Revenue		$ 1,255		$ 2,084
Expenses		1,004		1,840
Income before income taxes		251		244
Income taxes		101		100
Income from discontinued operations		$ 150		$ 144

Computation of Earnings per Share (Detail Textuals)	3 Months Ended		6 Months Ended
Computation of Earnings per Share (Detail Textuals)	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Abstract]
Anti-dilutive common stock Share purchase (in shares)	877,238	826,004	825,338	1,034,754