Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 11, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-21044 | ||
Entity Registrant Name | UNIVERSAL ELECTRONICS INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 33-0204817 | ||
Entity Address, Address Line One | 15147 N. Scottsdale Road, Suite H300 | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85254-2494 | ||
City Area Code | 480 | ||
Local Phone Number | 530-3000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | UEIC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 121,923,836 | ||
Entity Common Stock, Shares Outstanding | 12,967,869 | ||
Documents Incorporated by Reference | Portions of the registrant's notice of annual meeting of shareholders and proxy statement to be filed pursuant to Regulation 14A within 120 days after registrant's fiscal year end of December 31, 2023 are incorporated by reference into Part III of this Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission no later than April 29, 2024. Except as otherwise stated, the information contained in this Form 10-K is as of December 31, 2023. | ||
Entity Central Index Key | 0000101984 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Newport Beach, California |
Auditor Firm ID | 248 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 42,751 | $ 66,740 |
Accounts receivable, net | 112,596 | 112,346 |
Contract assets | 4,240 | 7,996 |
Inventories | 88,273 | 140,181 |
Prepaid expenses and other current assets | 7,325 | 6,647 |
Income tax receivable | 3,666 | 4,130 |
Total current assets | 258,851 | 338,040 |
Property, plant and equipment, net | 44,619 | 62,791 |
Goodwill | 0 | 49,085 |
Intangible assets, net | 25,349 | 24,470 |
Operating lease right-of-use assets | 18,693 | 21,599 |
Deferred income taxes | 6,787 | 6,242 |
Other assets | 1,573 | 1,936 |
Total assets | 355,872 | 504,163 |
Current liabilities: | ||
Accounts payable | 57,033 | 71,373 |
Line of credit | 55,000 | 88,000 |
Accrued compensation | 20,305 | 20,904 |
Accrued sales discounts, rebates and royalties | 5,796 | 6,477 |
Accrued income taxes | 1,833 | 5,585 |
Other accrued liabilities | 21,181 | 24,134 |
Total current liabilities | 161,148 | 216,473 |
Long-term liabilities: | ||
Operating lease obligations | 12,560 | 15,027 |
Deferred income taxes | 1,992 | 2,724 |
Income tax payable | 435 | 723 |
Other long-term liabilities | 817 | 810 |
Total liabilities | 176,952 | 235,757 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 50,000,000 shares authorized; 25,346,383 and 24,999,951 shares issued on December 31, 2023 and 2022, respectively | 253 | 250 |
Paid-in capital | 336,938 | 326,839 |
Treasury stock, at cost, 12,459,845 and 12,295,305 shares on December 31, 2023 and 2022, respectively | (369,973) | (368,194) |
Accumulated other comprehensive income (loss) | (20,758) | (21,187) |
Retained earnings | 232,460 | 330,698 |
Total stockholders' equity | 178,920 | 268,406 |
Total liabilities and stockholders' equity | $ 355,872 | $ 504,163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Equity, Attributable to Parent [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 25,346,383 | 24,999,951 |
Treasury stock (in shares) | 12,459,845 | 12,295,305 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 420,457 | $ 542,751 | $ 601,602 |
Cost of sales | 322,897 | 390,459 | 428,586 |
Gross profit | 97,560 | 152,292 | 173,016 |
Research and development expenses | 31,281 | 32,452 | 30,917 |
Factory restructuring charges | 4,015 | 0 | 0 |
Selling, general and administrative expenses | 98,490 | 105,292 | 118,846 |
Goodwill impairment | 49,075 | 0 | 0 |
Operating income (loss) | (85,301) | 14,548 | 23,253 |
Interest income (expense), net | (4,332) | (2,200) | (566) |
Loss on sale of Argentina subsidiary | 0 | 0 | (6,050) |
Other income (expense), net | (2,621) | (955) | (557) |
Income (loss) before provision for income taxes | (92,254) | 11,393 | 16,080 |
Provision for income taxes | 5,984 | 10,986 | 10,779 |
Net income (loss) | $ (98,238) | $ 407 | $ 5,301 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (7.64) | $ 0.03 | $ 0.39 |
Diluted (in dollars per share) | $ (7.64) | $ 0.03 | $ 0.39 |
Shares used in computing earnings (loss) per share: | |||
Basic (in shares) | 12,855 | 12,703 | 13,465 |
Diluted (in shares) | 12,855 | 12,779 | 13,742 |
CONSOLIDATED COMPREHENSIVE INCO
CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (98,238) | $ 407 | $ 5,301 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | 429 | (7,663) | (427) |
Change in foreign currency translation due to sale of Argentina subsidiary | 0 | 0 | 5,425 |
Comprehensive income (loss) | $ (97,809) | $ (7,256) | $ 10,299 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2020 | 24,392,000 | |||||
Beginning Balance at Dec. 31, 2020 | $ 313,301 | $ 244 | $ (295,495) | $ 302,084 | $ (18,522) | $ 324,990 |
Beginning balance (in shares) at Dec. 31, 2020 | (10,618,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,301 | 5,301 | ||||
Currency translation adjustment | (427) | (427) | ||||
Change in foreign currency translation due to sale of Argentina subsidiary | 5,425 | 5,425 | ||||
Shares issued for employee benefit plan and compensation (in shares) | 203,000 | |||||
Shares issued for employee benefit plan and compensation | $ 1,092 | $ 2 | 1,090 | |||
Purchase of treasury shares (in shares) | (1,243,000) | (1,243,000) | ||||
Purchase of treasury shares | $ (59,664) | $ (59,664) | ||||
Stock options exercised (in shares) | 54,000 | 54,000 | ||||
Stock options exercised | $ 1,638 | $ 1 | 1,637 | |||
Shares Issued to directors (in shares) | 30,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 9,969 | 9,969 | ||||
Performance-based common stock warrants | (686) | (686) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 24,679,000 | |||||
Ending balance at Dec. 31, 2021 | 275,949 | $ 247 | $ (355,159) | 314,094 | (13,524) | 330,291 |
Ending balance (in shares) at Dec. 31, 2021 | (11,861,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 407 | 407 | ||||
Currency translation adjustment | (7,663) | (7,663) | ||||
Change in foreign currency translation due to sale of Argentina subsidiary | 0 | |||||
Shares issued for employee benefit plan and compensation (in shares) | 212,000 | |||||
Shares issued for employee benefit plan and compensation | $ 1,199 | $ 2 | 1,197 | |||
Purchase of treasury shares (in shares) | (434,000) | (434,000) | ||||
Purchase of treasury shares | $ (13,035) | $ (13,035) | ||||
Stock options exercised (in shares) | 80,000 | 80,000 | ||||
Stock options exercised | $ 1,536 | $ 1 | 1,535 | |||
Shares Issued to directors (in shares) | 29,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 10,013 | 10,013 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 25,000,000 | |||||
Ending balance at Dec. 31, 2022 | $ 268,406 | $ 250 | $ (368,194) | 326,839 | (21,187) | 330,698 |
Ending balance (in shares) at Dec. 31, 2022 | (12,295,305) | (12,295,000) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (98,238) | (98,238) | ||||
Currency translation adjustment | 429 | 429 | ||||
Change in foreign currency translation due to sale of Argentina subsidiary | 0 | |||||
Shares issued for employee benefit plan and compensation (in shares) | 317,000 | |||||
Shares issued for employee benefit plan and compensation | $ 1,293 | $ 3 | 1,290 | |||
Purchase of treasury shares (in shares) | (165,000) | (165,000) | ||||
Purchase of treasury shares | $ (1,779) | $ (1,779) | ||||
Stock options exercised (in shares) | 0 | |||||
Shares Issued to directors (in shares) | 29,000 | |||||
Shares issued to directors | $ 0 | |||||
Employee and director stock-based compensation | 8,809 | 8,809 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 25,346,000 | |||||
Ending balance at Dec. 31, 2023 | $ 178,920 | $ 253 | $ (369,973) | $ 336,938 | $ (20,758) | $ 232,460 |
Ending balance (in shares) at Dec. 31, 2023 | (12,459,845) | (12,460,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (98,238) | $ 407 | $ 5,301 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 22,927 | 24,033 | 26,747 |
Provision for credit losses | 70 | (182) | 0 |
Deferred income taxes | (1,149) | 1,377 | (1,560) |
Shares issued for employee benefit plan | 1,293 | 1,199 | 1,092 |
Employee and director stock-based compensation | 8,809 | 10,013 | 9,969 |
Performance-based common stock warrants | 0 | 0 | (686) |
Impairment of goodwill | 49,075 | 0 | 0 |
Impairment of long-lived assets | 7,963 | 2,888 | 3,338 |
Loss on sale of Argentina subsidiary, net of cash transferred | 0 | 0 | 5,960 |
Changes in operating assets and liabilities: | |||
Accounts receivable and contract assets | 5,040 | 12,765 | 2,007 |
Inventories | 51,458 | (9,913) | (14,985) |
Prepaid expenses and other assets | 2,860 | (917) | (630) |
Accounts payable and accrued liabilities | (21,379) | (28,670) | 870 |
Accrued income taxes | (3,539) | (2,074) | 2,860 |
Net cash provided by (used for) operating activities | 25,190 | 10,926 | 40,283 |
Cash flows from investing activities: | |||
Purchase of term deposit | 0 | (7,487) | 0 |
Redemption of term deposit | 0 | 7,803 | 0 |
Acquisition of the net assets of Qterics, Inc. | 0 | (939) | 0 |
Acquisitions of property, plant and equipment | (8,116) | (14,006) | (12,586) |
Acquisitions of intangible assets | (5,761) | (6,579) | (4,455) |
Net cash provided by (used for) investing activities | (13,877) | (21,208) | (17,041) |
Cash flows from financing activities: | |||
Borrowings under line of credit | 78,000 | 133,000 | 112,000 |
Repayments on line of credit | (111,000) | (101,000) | (76,000) |
Proceeds from stock options exercised | 0 | 1,536 | 1,638 |
Treasury stock purchased | (1,779) | (13,035) | (59,664) |
Net cash provided by (used for) financing activities | (34,779) | 20,501 | (22,026) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (523) | (4,292) | 2,444 |
Net increase (decrease) in cash and cash equivalents | (23,989) | 5,927 | 3,660 |
Cash and cash equivalents at beginning of period | 66,740 | 60,813 | 57,153 |
Cash and cash equivalents at end of period | 42,751 | 66,740 | 60,813 |
Supplemental cash flow information: | |||
Income taxes paid | 13,176 | 10,922 | 10,093 |
Interest paid | $ 7,015 | $ 2,214 | $ 620 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Universal Electronics Inc. ("UEI"), based in Scottsdale, Arizona, designs, develops, manufactures, ships and supports control and sensor technology solutions and a broad line of universal control systems, audio-video ("AV") accessories, and intelligent wireless security and smart home products that are used by the world's leading brands in the video services, consumer electronics, security, home automation, climate control, and home appliance markets. In addition, over the past 37 years, we have developed a broad portfolio of patented technologies and cloud-based connectivity and control software solutions that we license to our customers, including many leading Fortune 500 companies. Distribution methods for our control solutions vary depending on the sales channel. We license our connectivity and control solution technologies across a variety of channels, primarily to original equipment manufacturers ("OEMs"). We distribute remote control devices, integrated circuits, home security sensors, connected thermostats and AV accessories directly to video and security service providers and OEMs, both domestically and internationally. We also distribute home security sensors and connected thermostats to pro-security installers and hospitality system integrators in the United States and Europe through a network of national and regional distributors and dealers. Additionally, we sell our wireless control devices and AV accessories under the One For All®, Ecolink TM and private label brand names to retailers through our international subsidiaries and direct to retailers in key markets, such as in the United States, United Kingdom, Germany, France, Spain, and Italy. We utilize third-party distributors for the retail channel in countries where we do not have subsidiaries. As used herein, the terms "we", "us" and "our" refer to Universal Electronics Inc. and its subsidiaries unless the context indicates to the contrary. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. Reportable Segment An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. Our chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, we only have a single operating and reportable segment. Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for credit losses, inventory valuation, impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes and related valuation allowances, stock-based compensation expense and performance-based common stock warrants. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material. Revenue Recognition Revenue is recognized when control of a good or service is transferred to a customer. Control is considered to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good or service. Revenues are generated from manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels, and licensing intellectual property that is embedded in these products or licensed to others for use in their products. We also generate revenues from a cloud-based software solution enabling software updates, digital rights management provisioning and remote technical support to consumer electronics customers. Revenue - Product revenue is generated through manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels. Our performance obligations are satisfied over time or at a point in time, depending on the nature of the product. Our contracts have an anticipated duration of less than a year and consideration may be variable based on indeterminate volumes. Revenue is recognized over time when our performance creates an asset with no alternative use to us (custom products) and we have an enforceable right to payment for performance completed to date, including a reasonable margin, through a contractual commitment from the customer. Custom products are those products for which we are unable to redirect the asset to another customer in the foreseeable future without significant rework. The method for measuring progress towards satisfying a performance obligation for a custom product is based on the costs incurred to date (cost-to-cost method). We believe that the costs associated with production are most closely aligned with the revenue associated with those products. We recognize revenue at a point in time if the criteria for recognizing revenue over time are not met, the title of the goods has transferred and we have a present right to payment. A provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded. These estimates are based on historical sales returns and allowances, analysis of credit memo data and other known factors. Actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and claims are significantly greater or lower than the reserves that we have established, we will record a reduction or increase to net sales in the period in which we make such a determination. We license our symbolic intellectual property which includes our patented technologies and database of control codes. Royalty revenue is recognized for these licensing arrangements on an over time basis. We record license revenue for per-unit based licenses when our customers manufacture or ship a product incorporating our intellectual property and we have a present right to payment. We record per-unit-based licenses with minimum guarantees ratably over the license period to which the minimum guarantee relates and any per-unit sales in excess of the minimum guarantee in the period in which the sale occurs. We record licenses with fixed consideration ratably over the license period. Tiered royalties are recorded on a straight-line basis according to the forecasted per-unit fees taking into account the pricing tiers. We recognize service revenues related to our cloud-based software solution on an over-time basis, as our customers simultaneously receive and consume the benefits provided by our performance. Revenues are recognized over the period during which the performance obligations are satisfied, and control of the service is transferred to the customers. Contract assets - Contract assets represent the value of revenue recognized over time for which we have not yet invoiced the customer. Generally, we invoice the customer within 90 days of revenue recognition. Contract liabilities - A contract liability is recorded when consideration is received from a customer prior to fully satisfying a performance obligation in a contract. Our contract liabilities primarily consist of cash received in advance of providing our cloud-based software services. These contract liabilities will be recognized as revenues when control of the related product or service is transferred to the customer. See Note 4 for further information concerning contract liabilities. Other sales-related matters - Trade receivables are recorded at the invoiced amount and do not bear interest. Payment terms are typically on open credit terms consistent with industry practice and do not have significant financing components. We accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers. Accruals for discounts and rebates are recorded as a reduction to sales in the same period as the related revenue. Such discounts were $10.5 million and $12.2 million at December 31, 2023 and 2022, respectively. Changes in such accruals may be required if future rebates and incentives differ from our estimates. We present all non-income government-assessed taxes (sales, use and value added taxes) collected from our customers and remitted to governmental agencies on a net basis (excluded from revenue) in our financial statements. The government-assessed taxes are recorded in our consolidated balance sheets until they are remitted to the government agency. Income Taxes We provide for income taxes utilizing the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are presented net as non-current by jurisdiction. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the differences between the financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when a judgment is made that is considered more likely than not that a tax benefit will not be realized. A decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit. If the valuation allowance is released in a future period, income tax expense will be reduced accordingly. The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The impact of an uncertain income tax position is recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not, on a jurisdiction-by-jurisdiction basis, that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We continue to assess the need for a valuation allowance on deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required. The Tax Cuts and Jobs Act (the "Tax Act") subjects a U.S. shareholder to tax on Global Intangible Low-Taxed Income ("GILTI") earned by certain foreign subsidiaries. We have elected to account for GILTI in the year the tax is incurred as a period expense. See Note 10 for further information concerning income taxes. Research and Development Research and development costs are expensed as incurred and consist primarily of salaries, employee benefits, supplies and materials. Advertising Advertising costs are expensed as incurred. Advertising expense totaled $0.6 million, $0.5 million and $0.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. Shipping and Handling Fees and Costs We include shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound freight or amounts billed to customers are recorded in cost of sales. Other shipping and handling costs are included in selling, general and administrative expenses. Shipping and handling fees and costs totaled $8.3 million, $10.8 million and $11.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. Stock-Based Compensation We recognize the grant date fair value of stock-based compensation awards as expense in proportion to vesting during the derived service period, which ranges from one We determine the fair value of restricted stock awards with a service condition utilizing the average of the high and low trading prices of our common shares on the date they were granted. The fair value of stock options granted to employees and directors is determined utilizing the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model include the risk-free interest rate, expected volatility, expected life in years and dividend yield. The risk-free interest rate over the expected term is equal to the prevailing U.S. Treasury note rate over the same period. Expected volatility is determined utilizing historical volatility over a period of time equal to the expected life of the stock option. Expected life is computed utilizing historical exercise patterns and post-vesting behavior. The dividend yield is assumed to be zero since we have not historically declared dividends and do not have any plans to declare dividends in the future. See Note 15 for further information regarding stock-based compensation. Performance-Based Common Stock Warrants The measurement date for performance-based common stock warrants is the date on which the warrants vest. We recognize the fair value of performance-based common stock warrants as a reduction to net sales ratably as the warrants vest based on the projected number of warrants that will vest, the proportion of the performance criteria achieved by the customer within the period relative to the total performance required (aggregate purchase levels) for the warrants to vest and the fair value of the related unvested warrants. If we do not have a reliable forecast of future purchases to be made by the customer by which to estimate the number of warrants that will vest, then the maximum number of potential warrants is assumed until such time that a reliable forecast of future purchases is available. To the extent that our projections change in the future as to the number of warrants that will vest, a cumulative catch-up adjustment will be recorded in the period in which our estimates change. See Note 16 for further information regarding performance-based common stock warrants. Foreign Currency Translation and Foreign Currency Transactions We use the U.S. Dollar as our functional currency for financial reporting purposes. The functional currency for most of our foreign subsidiaries is their local currency. The translation of foreign currencies into U.S. Dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using the average exchange rate during each period. The gains and losses resulting from the translation are included in the foreign currency translation adjustment account, a component of accumulated other comprehensive income in stockholders' equity, and are excluded from net income. The portions of intercompany accounts receivable and accounts payable that are intended for settlement are translated at exchange rates in effect at the balance sheet date. Our intercompany foreign investments and long-term debt that are not intended for settlement are translated using historical exchange rates. Transaction gains and losses generated by the effect of changes in foreign currency exchange rates on recorded assets and liabilities denominated in a currency different than the functional currency of the applicable entity are recorded in other income (expense), net. See Note 17 for further information concerning transaction gains and losses. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares, including the dilutive effect of stock options, restricted stock and common stock warrants, outstanding during the period. Dilutive potential common shares for all periods presented are computed utilizing the treasury stock method; however, dilutive potential common shares are excluded where their inclusion would be anti-dilutive. Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, term deposit, accounts receivable, accounts payable, accrued liabilities, debt and derivatives. The carrying value of our financial instruments, excluding derivatives, approximates fair value as a result of their short maturities. Our derivatives are carried at fair value. See Notes 3, 4, 9, 11, 12 and 19 for further information concerning our financial instruments. Cash, Cash Equivalents and Term Deposit Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less. Our term deposit, entered into on January 24, 2022, had an initial maturity of one year, but was redeemed prior to December 31, 2022. Domestically, we generally maintain balances in excess of federally insured limits. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash, cash equivalents and term deposit with financial institutions we believe are high quality. These financial institutions are located in many different geographic regions. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of our financial institutions. We have not sustained credit losses from instruments held at financial institutions. See Note 3 for further information concerning cash, cash equivalents and term deposit. Allowance for Credit Losses We maintain an allowance for credit losses for estimated losses on our trade receivables, resulting from the inability of our customers to make payments for products sold or services rendered. The allowance for credit losses is based on a variety of factors, including credit reviews, historical experience, length of time receivables are past due, current economic trends and changes in customer payment behavior. We also record specific provisions for individual accounts when we become aware of a customer's inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer's operating results or financial position. If circumstances related to a customer change, our estimates of the recoverability of the receivables would be further adjusted. See Note 4 for further information concerning our allowance for credit losses. Inventories Inventories consist of remote controls, wireless sensors and AV accessories, as well as the related component parts and raw materials. Inventoriable costs include materials, labor, freight-in and manufacturing overhead related to the purchase and production of inventories. We value our inventories at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. We attempt to carry inventories in amounts necessary to satisfy our customer requirements on a timely basis. See Note 5 for further information concerning our inventories and suppliers. Product innovations and technological advances may shorten a given product's life cycle. We continually monitor our inventories to identify any excess or obsolete items on hand. We write down our inventories for estimated excess and obsolescence in an amount equal to the difference between the cost of the inventories and estimated net realizable value. These estimates are based upon management's judgment about future demand and market conditions. Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. The cost of property, plant, and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. We capitalize additions and improvements and expense maintenance and repairs as incurred. We capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. For financial reporting purposes, depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included as a component of depreciation expense. Estimated useful lives are as follows: Buildings 25-33 years Tooling and equipment 2-7 years Computer equipment 3-5 years Software 3-7 years Furniture and fixtures 5-8 years Leasehold and building improvements Lesser of lease term or useful life (approximately 2 to 10 years) See Note 6 for further information concerning our property, plant, and equipment. Goodwill We record the excess purchase price of net tangible and intangible assets acquired over their estimated fair value as goodwill. We evaluate the carrying value of goodwill on December 31 of each year and between annual evaluations if events occur or circumstances change that may reduce the fair value of the reporting unit below its carrying amount. Such circumstances may include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) a decline in macroeconomic conditions, (3) a significant decline in our financial performance or (4) a significant decline in the price of our common stock for a sustained period of time. We perform our annual impairment test, and any required interim tests, using the optional qualitative assessment, weighing the relative impact of factors that are specific to our single reporting unit including our market capitalization compared to the carrying value of our stockholders' equity, as well as industry and macroeconomic factors. Based on the qualitative assessment performed, we consider the aggregation of the relevant factors, and conclude whether it is more likely than not that the fair value of our single reporting unit is less than the carrying value. If we conclude that it is more likely than not that the fair value of our single reporting unit is less than the carrying value, or if we decide not to elect the optional qualitative assessment, we perform a quantitative impairment test, using cash flow projections, discounted by our weighted-average cost of capital. In addition to any quantitative impairment analysis, we also consider the implied control premium compared to our market capitalization. See Note 7 for further information concerning goodwill and goodwill impairment. Intangible Assets Intangible assets consist of capitalized software development costs, customer relationships, developed and core technologies, distribution rights, patents and trademarks and trade names. Capitalized amounts related to patents represent external legal costs for the application, maintenance and extension of the useful life of patents. Intangible assets are amortized using the straight-line method over their estimated period of benefit. Estimated useful lives are as follows: Capitalized software development 2 years Customer relationships 10-15 years Developed and core technology 5-15 years Distribution rights 10 years Patents 10 years Trademarks and trade names 10 years See Note 7 for further information concerning intangible assets. Long-Lived and Intangible Assets Impairment We assess the impairment of long-lived and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important which may trigger an impairment review may include the following, but are not limited to: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner or use of the assets, their physical condition or strategy for the overall business; (3) significant negative industry or economic trends; (4) a current expectation that a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life; or (5) a significant decline in our stock price for a sustained period. We conduct an impairment review when we determine that the carrying value of a long-lived or intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment. The asset is impaired if its carrying value exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is the amount by which the carrying value of an asset exceeds its fair value. We estimate fair value utilizing the projected discounted cash flow method and a discount rate determined by our management to be commensurate with the risk inherent in our current business model. See Note 6 for further information concerning long-lived assets. See Note 7 for further information concerning intangible assets. Leases We determine if an arrangement is a lease at inception and determine the classification of the lease, as either operating or finance, at commencement. Operating leases are included in operating lease right-of-use ("ROU") assets, other accrued liabilities and long-term operating lease obligations on our consolidated balance sheets. We presently do not have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of lease payments. Operating lease ROU assets also factor in any lease payments made, initial direct costs and lease incentives received. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Some of our leases include options to extend with a range of three years to five years with two extensions at the then current market rate. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less, or on a month-to-month basis, are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. If applicable, we combine lease and non-lease components, which primarily relate to ancillary expenses associated with real estate leases such as common area maintenance charges and management fees. See Note 8 for further information concerning our leases. Business Combinations We allocate the purchase price of acquired businesses to the tangible and intangible assets and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. We engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant fair value estimates and assumptions, especially with respect to intangible assets and contingent consideration. Management estimates the fair value of certain intangible assets and contingent consideration by utilizing the following (but not limited to): • future cash flow from customer contracts, customer lists, distribution agreements, acquired developed technologies, trademarks, trade names and patents; • expected costs to complete development of in-process technology into commercially viable products and cash flows from the products once they are completed; • brand awareness and market position, as well as assumptions regarding the period of time the brand will continue to be used in our product portfolio; and • discount rates utilized in discounted cash flow models. Results of operations and cash flows of acquired businesses are included in our operating results from the date of acquisition. In those circumstances where an acquisition involves a contingent consideration arrangement, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability at each reporting period and record changes in the fair value within operating expenses. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of earnings estimates or in the timing or likelihood of achieving earnings-based milestones. Contingent consideration is recorded in other accrued liabilities and long-term contingent consideration in our consolidated balance sheets. See Note 21 for further information concerning business combinations. Derivatives Our foreign currency exposures are primarily concentrated in the Brazilian Real, British Pound, Chinese Yuan Renminbi, Euro, Hong Kong Dollar, Indian Rupee, Japanese Yen, Korean Won, Mexican Peso and Vietnamese Dong. We periodically enter into foreign currency exchange contracts with terms normally lasting less than nine months, to protect against the adverse effects that exchange-rate fluctuations may have on our foreign currency-denominated receivables, payables, cash flows and reported income. We do not enter into financial instruments for speculation or trading purposes. The derivatives we enter into have not qualified for hedge accounting. The gains and losses on both the derivatives and the foreign currency-denominated balances are recorded as foreign exchange transaction gains or losses and are classified in other income (expense), net. Derivatives are recorded on the balance sheet at fair value. The estimated fair value of derivative financial instruments represents the amount required to enter into similar offsetting contracts with similar remaining maturities based on quoted market prices. See Note 19 for further information concerning derivatives. Fair-Value Measurements We measure fair value using the framework established by the FASB in ASC Topic 820 for fair value measurements and disclosures. This framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The valuation techniques are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources. Unobservable inputs require management to make certain assumptions and judgments based on the best information available. Observable inputs are the preferred data source. These two types of inputs result in the following fair value hierarchy: Level 1: Quoted prices (unadjusted) for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable. Recently Adopted Accounting Pronouncements None. Other Accounting Pronouncements Accounting Updates Not Yet Effective In November 2023, the FASB issued ASU 2023-07, "Segment Reporting – Improvements to Reportable Segments Disclosures." The guidance enhances disclosures of significant segment expenses by requiring the disclosure of significant segment expenses regularly provided to the chief operating decision maker, extends certain annual disclosures to interim periods, and permits more than one measure of segment profit or loss to be reported under certain conditions. All disclosure requirements are also required for companies with a single reportable segment. The guidance is effective in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the guidance is permitted, including adoption in any interim periods for which financial statements have not been issued. The Company is currently evaluating the guidance and its impact to the financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes - Improvements to Tax Disclosures." The guidance ex |
Cash and Cash Equivalents and T
Cash and Cash Equivalents and Term Deposit | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Term Deposit | Cash and Cash Equivalents and Term Deposit Cash and cash equivalents were held in the following geographic regions: December 31, (In thousands) 2023 2022 North America $ 8,460 $ 6,825 People's Republic of China ("PRC") 11,102 32,569 Asia (excluding the PRC) 2,427 1,914 Europe 8,145 13,042 South America 12,617 12,390 Total cash and cash equivalents $ 42,751 $ 66,740 |
Revenue and Accounts Receivable
Revenue and Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Revenue and Accounts Receivable, Net | Revenue and Accounts Receivable, Net Revenue Details The pattern of revenue recognition was as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Goods and services transferred at a point in time $ 324,433 $ 450,227 $ 498,554 Goods and services transferred over time 96,024 92,524 103,048 Net sales $ 420,457 $ 542,751 $ 601,602 Our net sales to external customers by geographic area were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 United States $ 129,528 $ 167,501 $ 200,136 Asia (excluding the PRC) 85,347 127,702 127,140 Europe 90,221 103,993 126,551 People's Republic of China 63,334 85,215 87,866 Latin America 28,870 28,363 25,943 Other 23,157 29,977 33,966 Total net sales $ 420,457 $ 542,751 $ 601,602 Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Net sales to the following customer totaled more than 10% of our net sales: Year Ended December 31, 2023 2022 2021 $ (thousands) % of Net $ (thousands) % of Net $ (thousands) % of Net Comcast Corporation (1) (1) $ 75,917 14.0 % $ 98,361 16.3 % Daikin Industries Ltd. $ 58,843 14.0 % $ 78,413 14.4 % $ 70,793 11.8 % (1) Sales associated with this customer did not total more than 10% of our net sales for the indicated period. Accounts Receivable, Net Accounts receivable, net were as follows: December 31, (In thousands) 2023 2022 Trade receivables, gross $ 106,182 $ 108,030 Allowance for credit losses (815) (957) Allowance for sales returns (532) (618) Trade receivables, net 104,835 106,455 Other (1) 7,761 5,891 Accounts receivable, net $ 112,596 $ 112,346 (1) Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables. Allowance for Credit Losses Changes in the allowance for credit losses were as follows: (In thousands) Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 957 $ 1,285 $ 1,412 Additions (reductions) to costs and expenses 70 (182) — Cash receipts — — — Write-offs/Foreign exchange effects (212) (146) (127) Balance at end of period $ 815 $ 957 $ 1,285 Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net were as follows: December 31, 2023 2022 $ (thousands) % of Accounts Receivable, Net $ (thousands) % of Accounts Receivable, Net Comcast Corporation (1) (1) $ 15,367 13.7 % (1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period. Contract Liabilities We have current and non-current contract liability balances primarily relating to our firmware update provisioning and digital rights management validation services. Changes in the carrying amount of contract liabilities were as follows: (In thousands) Year Ended December 31, 2023 2022 Balance at beginning of period $ 1,931 $ 390 Contract liabilities acquired (1) — 2,390 Payments received 6,080 4,964 Revenue recognized (4,529) (5,812) Foreign exchange effects 19 (1) Balance at end of period $ 3,501 $ 1,931 (1) During the year ended December 31, 2022, we recognized $2.4 million of contract liabilities related to the Qterics, Inc. ("Qterics") acquisition. Refer to Note 21 for further information about this acquisition. |
Inventories and Significant Sup
Inventories and Significant Suppliers | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories and Significant Suppliers | Inventories and Significant Supplier Inventories were as follows: December 31, (In thousands) 2023 2022 Raw materials $ 32,794 $ 58,759 Components 11,061 25,226 Work in process 3,827 2,616 Finished goods 40,591 53,580 Inventories $ 88,273 $ 140,181 Significant Supplier We purchase integrated circuits, components and finished goods from multiple sources. Purchases from the following supplier totaled 10% of our total inventory purchases: Year Ended December 31, 2023 2022 2021 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. (1) (1) $ 33,293 11.5 % $ 38,712 11.8 % (1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period. There were no trade payable balances from suppliers that totaled more than 10% of our total accounts payable at December 31, 2023 and December 31, 2022. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net Property, plant, and equipment, net were as follows: December 31, (In thousands) 2023 2022 Buildings $ 17,806 $ 18,291 Computer equipment 9,679 9,344 Furniture and fixtures 3,598 3,529 Leasehold and building improvements 33,049 39,761 Machinery and equipment 82,302 96,947 Software 28,074 23,607 Tooling 30,724 31,898 205,232 223,377 Accumulated depreciation (163,301) (170,474) 41,931 52,903 Construction in progress 2,688 9,888 Total property, plant, and equipment, net $ 44,619 $ 62,791 Depreciation expense was $18.0 million, During the three months ended September 30, 2023, as part of our manufacturing footprint optimization efforts, we made the decision to close our southwestern China factory and manufacturing operations were stopped in September 2023. We are also planning to downsize and streamline the Mexico operations by moving to a smaller, more efficient facility. As a result of these decisions, we recorded impairment charges of $7.7 million, of which $7.6 million and $0.1 million is recorded in cost of sales and selling, general and administrative expenses, respectively. In addition, during the year ended December 31, 2023, we recorded an additional $0.2 million of impairment charges, recorded in cost of sales, relating to the underutilization of property, plant and equipment in our other PRC-based factories. During the year ended December 31, 2022, we incurred $2.9 million in impairment charges, recorded in cost of sales, relating to the underutilization of certain property, plant and equipment in our Mexico factory. During the year ended December 31, 2021, we incurred $3.3 million in impairment charges Construction in progress was as follows: December 31, (In thousands) 2023 2022 Leasehold and building improvements $ 623 $ 475 Machinery and equipment 738 2,282 Software 11 4,862 Tooling 1,197 1,827 Other 119 442 Total construction in progress $ 2,688 $ 9,888 We expect that most of the assets under construction will be placed into service during the first six months of 2024. We will begin to depreciate the cost of these assets under construction once they are placed into service. Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease ROU assets, were as follows: December 31, (In thousands) 2023 2022 United States $ 13,245 $ 16,427 People's Republic of China 26,679 42,893 Mexico 9,227 14,402 Vietnam 10,089 6,923 All other countries 4,072 3,745 Total long-lived tangible assets $ 63,312 $ 84,390 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill During the year ended December 31, 2023, a decline in our financial performance, overall negative trend in the video service provider channel and an uncertain economic environment contributed to a significant decline in our market capitalization. We considered this to be an impairment trigger. We, therefore, performed a quantitative valuation analysis under an income approach to estimate our reporting unit's fair value. The income approach used projections of estimated operating results and cash flows that were discounted using a discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include, but are not limited to, revenue growth, margins, discount rate, and terminal growth rate. The financial projections reflect our best estimate of economic and market conditions over the projected period, including forecasted revenue growth, margins, capital expenditures, depreciation and amortization. In addition to our valuation analysis under an income approach, we also considered the implied control premium compared to our market capitalization. We determined that the implied control premium over our market capitalization to be substantial; therefore, we recorded an impairment charge of $49.1 million during the year ended December 31, 2023. Changes in the carrying amount of goodwill were as follows: (In thousands) Balance at December 31, 2021 $ 48,463 Goodwill acquired during the period (1) 713 Foreign exchange effects (91) Balance at December 31, 2022 49,085 Goodwill impairment (49,075) Foreign exchange effects (10) Balance at December 31, 2023 $ — (1) During the year ended December 31, 2022, we recognized $0.7 million of goodwill related to the Qterics, Inc. acquisition. Refer to Note 21 for further information about this acquisition. We conducted annual goodwill impairment reviews on December 31, 2022 and 2021. Based on the analysis performed, we determined that our goodwill was not impaired. Intangible Assets, Net The components of intangible assets, net were as follows: December 31, 2023 2022 (In thousands) Gross (1) Accumulated Amortization (1) Net (1) Gross (1) Accumulated Amortization (1) Net (1) Capitalized software development costs $ 2,161 $ (421) $ 1,740 $ 1,647 $ (44) $ 1,603 Customer relationships 6,340 (3,803) 2,537 6,340 (3,080) 3,260 Developed and core technology 4,220 (3,754) 466 4,520 (3,693) 827 Distribution rights — — — 308 (281) 27 Patents 33,195 (12,686) 20,509 29,388 (10,790) 18,598 Trademarks and trade names 450 (353) 97 450 (295) 155 Total intangible assets, net $ 46,366 $ (21,017) $ 25,349 $ 42,653 $ (18,183) $ 24,470 (1) This table excludes the gross value of fully amortized intangible assets totaling $45.0 million and $43.7 million on December 31, 2023 and 2022, respectively. Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Cost of sales $ 443 $ 49 $ 27 Selling, general and administrative expenses 4,440 3,969 3,963 Total amortization expense $ 4,883 $ 4,018 $ 3,990 Estimated future annual amortization expense related to our intangible assets at December 31, 2023 is as follows: (In thousands) 2024 $ 5,095 2025 4,552 2026 3,830 2027 3,135 2028 2,506 Thereafter 6,231 Total $ 25,349 The remaining weighted average amortization period of our intangible assets at December 31, 2023 is 6.5 years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At December 31, 2023, our operating leases had remaining lease terms of up to 37 years, including any reasonably probable extensions. Lease balances within our consolidated balance sheets were as follows: (In thousands) December 31, 2023 December 31, 2022 Assets: Operating lease right-of-use assets $ 18,693 $ 21,599 Liabilities: Other accrued liabilities $ 4,813 $ 5,509 Long-term operating lease obligations 12,560 15,027 Total lease liabilities $ 17,373 $ 20,536 Operating lease expense, including variable and short-term lease costs which were insignificant to the total, operating lease cash flows and supplemental cash flow information were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Cost of sales $ 3,012 $ 2,822 $ 2,508 Selling, general and administrative expenses 4,378 4,474 4,151 Total operating lease expense $ 7,390 $ 7,296 $ 6,659 Operating cash outflows from operating leases $ 7,736 $ 7,427 $ 6,555 Operating lease right-of-use assets obtained in exchange for lease obligations $ 4,360 $ 8,756 $ 7,017 Non-cash release of operating lease obligations (1) $ — $ — $ 654 (1) During the year ended December 31, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020. We entered into lease amendments for our southwestern China and Mexico factories during the year ended December 31, 2023 as a part of our manufacturing footprint optimization efforts. As a result of these modifications, our operating lease right-of-use assets decreased by $1.2 million and our total lease liabilities decreased by $1.3 million. The weighted average remaining lease liability term and the weighted average discount rate were as follows: Year Ended December 31, 2023 2022 Weighted average lease liability term (in years) 4.9 5.1 Weighted average discount rate 5.04 % 3.82 % The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at December 31, 2023. The reconciliation excludes short-term leases that are not recorded on the balance sheet. (In thousands) 2024 $ 5,485 2025 4,478 2026 3,442 2027 2,696 2028 1,243 Thereafter 2,532 Total lease payments 19,876 Less: imputed interest (2,503) Total lease liabilities $ 17,373 At December 31, 2023, we did not have any operating leases that had not yet commenced. Prepaid Land Lease We operate one factory within the PRC on which the land is leased from the government as of December 31, 2023. This land lease was prepaid to the PRC government at the time our subsidiary occupied the land. We have obtained a land-use right certificate for the land pertaining to this factory. The factory is located in the city of Yangzhou in the Jiangsu province. The remaining net book value of this operating lease ROU was $2.2 million at December 31, 2023, and is being amortized on a straight-line basis over the remaining term of approximately 35 years. The buildings located on this land had a net book value of $12.3 million at December 31, 2023 and are being depreciated over a remaining weighted average period of approximately 16 years. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On May 3, 2023, we executed an amendment to our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank"), which provides for a $125.0 million revolving line of credit ("Credit Line"). Among other things, the amendment to the Second Amended Credit Agreement extended the maturity of the revolving line of credit to April 30, 2024. The Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the Credit Line are reduced by the balance of any outstanding letters of credit, of which there were none at December 31, 2023. All obligations under the Credit Line are secured by substantially all of our U.S. personal property and tangible and intangible assets, as well as a guaranty of the Credit Line by our wholly-owned subsidiary, Universal Electronics BV. Under the Second Amended Credit Agreement, we may elect to pay interest on the Credit Line based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin (varying from 2.00% to 2.75%), or base rate (based on the prime rate of U.S. Bank or as otherwise specified in the Second Amended Credit Agreement) plus an applicable margin (varying from 0.00% to 0.75%). The applicable margins are calculated quarterly and vary based on our cash flow leverage ratio as set forth in the Second Amended Credit Agreement. The interest rates in effect at December 31, 2023 and 2022 were 8.06% and 5.62%, respectively. There are no commitment fees or unused line fees under the Second Amended Credit Agreement. The Second Amended Credit Agreement includes financial covenants requiring a minimum fixed charge coverage ratio and a maximum cash flow leverage ratio. In addition, the Second Amended Credit Agreement contains other customary affirmative and negative covenants and events of default. From May 3, 2023 to March 31, 2024 (unless we elect to terminate earlier), our fixed charge coverage ratio and cash flow leverage ratio-based covenants are temporarily replaced with EBITDA-based covenants. Additionally, from May 3, 2023 to March 31, 2024 (unless we elect to terminate the temporary covenant provision earlier), the applicable margins are fixed at 2.75% and 0.75% for SOFR and base rate borrowing, respectively. At December 31, 2023, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At December 31, 2023, we had $55.0 million outstanding under the Credit Line. Our total interest expense on borrowings was $6.0 million, $3.3 million and $0.9 million during the years ended December 31, 2023, 2022 and 2021, respectively. On March 13, 2024, we executed an amendment to our Second Amended Credit Agreement, which adjusts the Credit Line to a two-tiered limit of $85.0 million up to $100.0 million (subject to meeting certain financial conditions) and extends the term to April 30, 2025. Under the amended agreement, we pay interest on the Credit Line based on the SOFR plus a 3.00% margin. The amendment also introduces a facility fee of 0.25%. From January 1, 2024, to September 30, 2024, our covenants are based upon EBITDA and a minimum accounts receivable coverage ratio. From October 1, 2024, to December 31, 2024, our covenants are based upon a minimum fixed charge coverage ratio and a minimum accounts receivable coverage ratio. Subsequent to December 31, 2024, our covenants are based upon a minimum fixed charge coverage ratio and a maximum cash flow leverage ratio. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In 2023, 2022 and 2021, pre-tax income (loss) was attributed to the following jurisdictions: Year Ended December 31, (In thousands) 2023 2022 2021 Domestic operations $ (95,876) $ (69,058) $ (38,024) Foreign operations 3,622 80,451 54,104 Total pre-tax income (loss) $ (92,254) $ 11,393 $ 16,080 The provision for income taxes charged to operations was as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Current tax expense: U.S. federal $ 23 $ 573 $ 2 State and local 44 73 75 Foreign 7,193 8,523 12,386 Total current 7,260 9,169 12,463 Deferred tax (benefit) expense: U.S. federal (813) 230 584 State and local (126) 36 90 Foreign (337) 1,551 (2,358) Total deferred (1,276) 1,817 (1,684) Total provision for income taxes $ 5,984 $ 10,986 $ 10,779 Net deferred tax assets were comprised of the following: December 31, (In thousands) 2023 2022 Deferred tax assets: Accrued liabilities $ 3,958 $ — Accounts receivable — 5,657 Amortization of intangible assets 9,999 5,977 Capitalized inventory costs 3,369 5,060 Capitalized research & development costs 8,035 4,632 Depreciation 4,058 5,067 Income tax credits 19,615 17,234 Inventory reserves 2,154 2,258 Net operating losses 12,053 3,770 Operating lease obligations 4,112 4,212 Stock-based compensation 4,453 4,288 Total deferred tax assets 71,806 58,155 Deferred tax liabilities: Accrued liabilities — (5,273) Accounts receivable (20) — Right of use assets (4,385) (4,407) Other (2,920) (361) Total deferred tax liabilities (7,325) (10,041) Net deferred tax assets before valuation allowance 64,481 48,114 Less: Valuation allowance (59,686) (44,596) Net deferred tax assets $ 4,795 $ 3,518 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations as a result of the following: Year Ended December 31, (In thousands) 2023 2022 2021 Tax provision at statutory U.S. rate $ (19,373) $ 2,392 $ 3,377 Increase (decrease) in tax provision resulting from: Distribution of previously taxed foreign earnings and profits (9,450) (16,776) — Federal research and development credits (1,043) (715) (1,391) Foreign permanent benefit (1,426) (1,620) (1,137) Foreign tax rate differential 21,794 15,133 (2,647) Foreign undistributed earnings, net of credits 7,198 6,486 6,902 Foreign participation exemption (12,571) — — Goodwill impairment 5,383 — — Liquidation of Cayman subsidiary — — 745 Non-deductible items 594 601 1,198 Non-territorial income (945) (2,323) (2,993) Provision to return (19) (435) (533) Sale of Argentina subsidiary — — 2,084 Sale of intangible asset — (3,385) — State and local taxes, net (2,629) (2,408) (1,435) Stock-based compensation 980 693 (616) Tax rate change 1,648 (640) — Valuation allowance 15,090 12,058 4,632 Withholding tax 1,229 2,188 2,333 Other (476) (263) 260 Tax provision $ 5,984 $ 10,986 $ 10,779 At December 31, 2023, we had U.S. federal and state Research and Development ("R&D") income tax credit carryforwards of approximately $5.2 million and $13.5 million, respectively. The federal R&D income tax credits begin expiring in 2039. The state R&D income tax credits do not have an expiration date. At December 31, 2023, we had U.S. federal, state and local, and foreign net operating loss carryforwards of approximately $19.8 million, $76.7 million and $10.3 million, respectively. The U.S. federal net operating loss carryforwards do not expire while the state and local and foreign net operating loss carryforwards begin to expire in 2024 and 2027, respectively. At December 31, 2023, we assessed the realizability of the Company's deferred tax assets by considering whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. Due to cumulative operating losses for the three years ended December 31, 2023, we have recorded a full valuation allowance against our U.S. federal and state deferred tax assets of $34.7 million and $22.8 million, respectively, as we have determined that it is more likely than not that the tax benefits will not be realized in the future. The valuation allowance increased by $15.1 million and $12.1 million during the years ended December 31, 2023 and 2022, respectively. The Company had an overall deferred tax liability as of December 31, 2022 for U.S. federal and state jurisdictions due to having indefinite lived deferred tax liabilities that could not be used as a source of income to offset deferred tax assets. Due to the goodwill impairment recorded during the year ended December 31, 2023 the deferred tax liability reversed. Uncertain Tax Positions At December 31, 2023 and 2022, we had unrecognized tax benefits of approximately $3.4 million and $3.2 million, respectively, including interest and penalties. In accordance with accounting guidance, we have elected to classify interest and penalties as components of tax expense. Interest and penalties were immaterial for the year ended December 31, 2023, 2022 and 2021. Interest and penalties are included in the unrecognized tax benefits. Changes to our gross unrecognized tax benefits were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Balance at beginning of period $ 3,150 $ 3,001 $ 3,020 Additions as a result of tax positions taken during the current year 165 149 226 Foreign currency translation — — (13) Settlements — — (232) Balance at end of period $ 3,315 $ 3,150 $ 3,001 Approximately $3.3 million, $3.2 million and $3.0 million of the total amount of unrecognized tax benefits at December 31, 2023, 2022 and 2021, respectively, if not for the U.S. federal and state valuation allowance, would affect the annual effective tax rate, if recognized. We are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within the next twelve months. We do not anticipate a decrease in unrecognized tax benefits within the next twelve months based on federal, state, and foreign statute expirations in various jurisdictions. We have classified uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year. The Company files U.S. federal, state and foreign income tax returns. As of December 31, 2023, the open statutes of limitations for our significant tax jurisdictions are as follows: U.S. federal for 2020 through 2022, state and local for 2019 through 2022, and foreign for 2017 through 2022. Indefinite Reinvestment Assertion Beginning in 2018, the Tax Act generally provides a 100% federal deduction for dividends received from foreign subsidiaries. Nevertheless, companies must still apply the guidance of ASC Topic 740 to account for the tax consequences of outside basis differences and other tax impacts of their investments in foreign subsidiaries, including potential foreign withholding taxes on distributions. For the years ended December 31, 2023, 2022 and 2021, we recorded a deferred tax liability of $0.4 million, $0.5 million and $0.9 million, respectively, relating to state tax and foreign tax withholding liabilities on future distributions. CHIPS and Science Act of 2022 On August 9, 2022, the CHIPS and Science Act of 2022 ("CHIPS Act") was enacted in the United States. The CHIPS Act will provide financial incentives to the semiconductor industry which are primarily directed at manufacturing activities within the United States for the qualifying property placed in service after December 31, 2022. As we currently outsource our manufacturing, the CHIPS Act did not have a material impact to our consolidated tax provision for the year ending December 31, 2023. Inflation Reduction Act of 2022 The Inflation Reduction Act of 2022 ("IRA") was signed into law on August 16, 2022. The bill was meant to address the high inflation rate in the United States through various climate, energy, healthcare and other incentives. These incentives are meant to be paid for by the tax provisions included in the IRA, such as a new 15 percent corporate minimum tax, a 1 percent new excise tax on stock buybacks, additional IRS funding to improve taxpayer compliance and others. The IRA provisions are effective for tax years beginning after December 31, 2022. At this time, none of the IRA tax provisions had a material impact to our consolidated tax provision for the year ending December 31, 2023. |
Accrued Compensation
Accrued Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Compensation | Accrued Compensation The components of accrued compensation were as follows: December 31, (In thousands) 2023 2022 Accrued bonus $ 2,843 $ 3,348 Accrued commission 602 609 Accrued salary/wages (1) 4,085 4,433 Accrued social insurance (2) 7,082 7,037 Accrued vacation/holiday 3,252 3,300 Other accrued compensation 2,441 2,177 Total accrued compensation $ 20,305 $ 20,904 (1) For the year ended December 31, 2023, accrued severance expenses of $0.1 million related to the manufacturing footprint optimization efforts are included in this amount. See Note 13 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on December 31, 2023 and 2022. The components of other accrued liabilities were as follows: December 31, (In thousands) 2023 2022 Contract liabilities $ 2,697 $ 1,134 Duties 481 470 Expense associated with fulfilled performance obligations 1,092 1,120 Freight and handling fees 1,998 2,497 Interest 438 1,413 Operating lease obligations 4,813 5,509 Product warranty claim costs 522 522 Professional fees 1,558 2,293 Sales and value added taxes 4,194 3,750 Other (1) 3,388 5,426 Total other accrued liabilities $ 21,181 $ 24,134 (1) Includes $0.2 million and $0.6 million at December 31, 2023 and 2022, respectively, associated with the purchase of property, plant and equipment. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Accrued Compensation The components of accrued compensation were as follows: December 31, (In thousands) 2023 2022 Accrued bonus $ 2,843 $ 3,348 Accrued commission 602 609 Accrued salary/wages (1) 4,085 4,433 Accrued social insurance (2) 7,082 7,037 Accrued vacation/holiday 3,252 3,300 Other accrued compensation 2,441 2,177 Total accrued compensation $ 20,305 $ 20,904 (1) For the year ended December 31, 2023, accrued severance expenses of $0.1 million related to the manufacturing footprint optimization efforts are included in this amount. See Note 13 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on December 31, 2023 and 2022. The components of other accrued liabilities were as follows: December 31, (In thousands) 2023 2022 Contract liabilities $ 2,697 $ 1,134 Duties 481 470 Expense associated with fulfilled performance obligations 1,092 1,120 Freight and handling fees 1,998 2,497 Interest 438 1,413 Operating lease obligations 4,813 5,509 Product warranty claim costs 522 522 Professional fees 1,558 2,293 Sales and value added taxes 4,194 3,750 Other (1) 3,388 5,426 Total other accrued liabilities $ 21,181 $ 24,134 (1) Includes $0.2 million and $0.6 million at December 31, 2023 and 2022, respectively, associated with the purchase of property, plant and equipment. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications We indemnify our directors and officers to the maximum extent permitted under the laws of the state of Delaware and we have entered into indemnification agreements with each of our directors and executive officers. In addition, we insure our individual directors and officers against certain claims and attorney's fees and related expenses incurred in connection with the defense of such claims. The amounts and types of coverage may vary from period to period as dictated by market conditions. Management is not aware of any matters that require indemnification of its officers or directors. Fair Price Provisions and Other Anti-Takeover Measures Our Restated Certificate of Incorporation, as amended, contains certain provisions restricting business combinations with interested stockholders under certain circumstances and imposing higher voting requirements for the approval of certain transactions ("fair price" provisions). Any of these provisions may delay or prevent a change in control. The "fair price" provisions require that holders of at least two-thirds of our outstanding shares of voting stock approve certain business combinations and significant transactions with interested stockholders. Product Warranties Changes in the liability for product warranty claim costs were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Balance at beginning of period $ 522 $ 1,095 $ 1,721 Accruals for warranties issued during the period — 249 2,943 Settlements (in cash or in kind) during the period — (819) (3,522) Foreign currency translation gain (loss) — (3) (47) Balance at end of period $ 522 $ 522 $ 1,095 Restructuring Activities In September 2023, we began implementing our plan to restructure and optimize our manufacturing footprint while reducing our concentration risk in the PRC. In conjunction with this plan, as of September 30, 2023, we have stopped all production activities and commenced the shutdown of our southwestern China factory. As a result, we incurred severance and equipment moving costs of $3.4 million and $0.6 million, respectively, during the year ended December 31, 2023, which are included within factory restructuring charges on our consolidated statements of operations. We expect the completion date of this factory restructuring to be in the first quarter of 2024 with total estimated restructuring charges of $4.1 million. The restructuring liabilities are included in accrued compensation, accounts payable and other accrued liabilities on our consolidated balance sheets. Restructuring activities for the year ended December 31, 2023 are as follows: Restructuring Costs (In thousands) Total Severance Other Exit Balance at December 31, 2022 $ — $ — $ — Restructuring charges 4,015 3,425 590 Cash payments (3,553) (3,278) (275) Balance at December 31, 2023 $ 462 $ 147 $ 315 Total costs incurred inception to date $ 4,015 $ 3,425 $ 590 Total estimated expense to be incurred after December 31, 2023 $ 62 $ 62 $ — Litigation Roku Matters 2018 Lawsuit On September 5, 2018, we filed a lawsuit against Roku, Inc. ("Roku") in the United States District Court, Central District of California, alleging that Roku is willfully infringing nine of our patents that are in four patent families related to remote control set-up and touchscreen remotes. On December 5, 2018, we amended our complaint to add additional details supporting our infringement and willfulness allegations. We have alleged that this complaint relates to multiple Roku streaming players and components therefor and certain universal control devices, including but not limited to the Roku App, Roku TV, Roku Express, Roku Streaming Stick, Roku Ultra, Roku Premiere, Roku 4, Roku 3, Roku 2, Roku Enhanced Remote and any other Roku product that provides for the remote control of an external device such as a TV, audiovisual receiver, sound bar or Roku TV Wireless Speakers. In October 2019, the Court stayed this lawsuit pending action by the Patent Trial and Appeals Board (the "PTAB") with respect to Roku's requests for Inter Partes Review ("IPR") (see discussion below). Now that the most of the PTAB matters have been concluded, we will ask the District Court to lift this stay. International Trade Commission Investigation of Roku, TCL, Hisense and Funai On April 16, 2020, we filed a complaint with the International Trade Commission (the "ITC") against Roku, TCL Electronics Holding Limited and related entities (collectively, "TCL"), Hisense Co., Ltd. and related entities (collectively, "Hisense"), and Funai Electric Company, Ltd. and related entities (collectively, "Funai") claiming that certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars infringe certain of our patents. We asked the ITC to issue a permanent limited exclusion order prohibiting the importation of these infringing products into the United States and a cease and desist order to stop these parties from continuing their infringing activities. On May 18, 2020, the ITC announced that it instituted its investigation as requested by us. Prior to the trial, which ended on April 23, 2021, we dismissed TCL, Hisense and Funai from this investigation as they either removed or limited the amount of our technology from their televisions as compared to our patent claims that we asserted at the time. On July 9, 2021, the Administrative Law Judge (the "ALJ") issued his Initial Determination (the "ID") finding that Roku is infringing our patents and as a result is in violation of §337 of the Tariff Act of 1930, as amended (the "Tariff Act"). On July 23, 2021, Roku and we filed petitions to appeal certain portions of the ID. On November 10, 2021, the full ITC issued its final determination affirming the ID and issuing a Limited Exclusion Order (the "LEO") and Cease and Desist Order (the "CDO") against Roku, which became effective on January 9, 2022. In January 2022, Roku filed its appeal of the ITC ruling with the U.S. Court of Appeals for the Federal Circuit (the "USCAFC"). Oral argument for this appeal was held on September 5, 2023 and in January 2024 the USCAFC issued its decision affirming the ITC ruling in full. 2020 Lawsuit As a companion case to our ITC complaint, on April 9, 2020, we filed separate actions against each of Roku, TCL, Hisense, and Funai in the United States District Court, Central District of California, alleging that Roku is willfully infringing five of our patents and TCL, Hisense, and Funai are willfully infringing six of our patents by incorporating our patented technology into certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices and sound bars. Now that the most of the PTAB matters have been concluded, we will ask the District Court to lift this stay. Inter Partes Reviews Throughout these litigation matters against Roku and the others identified above, Roku has filed multiple IPR requests with the PTAB on all patents at issue in the 2018 Lawsuit, the ITC Action, and the 2020 Lawsuit (see discussion above). To date, the PTAB has denied Roku's request fourteen times, and granted Roku's request twelve times. Roku has since filed two IPRs on two of our patents not yet asserted against it, and we are awaiting the PTAB's institution decision with respect to those new IPR requests. Of the twelve IPR requests granted by the PTAB, the results were mixed, with the PTAB upholding the validity of many of our patent claims and invalidating others. Most of these PTAB actions have been completed, so we will petition the District Court to lift the stay on the 2018 and 2020 cases. International Trade Commission Investigation Request made by Roku against UEI and certain UEI Customers On April 8, 2021, Roku made a request to the ITC to initiate an investigation against us and certain of our customers claiming that certain of our and those customers' remote control devices and televisions infringe two of Roku's recently acquired patents, the '511 patent and the '875 patent. On May 10, 2021, the ITC announced its decision to initiate the requested investigation. Immediately prior to trial Roku stipulated to summary determination as to its complaint against us and two of our customers with respect to one of the two patents at issue. This stipulation resulted in the complaint against us and two of our customers with respect to that patent not going to trial. The trial was thus shortened and ended on January 24, 2022. On June 24, 2022, the ALJ, pursuant to Roku's stipulation, found the '511 patent invalid as indefinite. Thereafter, on June 28, 2022, the ALJ issued an ID fully exonerating us and our customers finding the '875 patent invalid and that Roku failed to prove it established the requisite domestic industry and thus no violation of the Tariff Act. In advance of the full Commission's review, Roku and we filed petitions to appeal certain portions of the ID. In addition, the PTAB granted our request for an IPR with respect to the '875 patent. On October 28, 2022, the full ITC issued its final determination affirming the ID, ruling there was no violation of the Tariff Act and terminated the investigation. In December 2022, Roku filed an appeal, which remains pending. In addition, Roku, along with the ITC, filed a joint motion to dismiss the '511 patent as moot as it recently expired. We are opposing this motion. Further, on October 23, 2023, the PTBA issued its Final Written Decision invalidating all of the claims Roku alleges we infringe. As a companion to its ITC request, Roku also filed a lawsuit against us in Federal District Court in the Central District of California alleging that we are infringing the same two patents they alleged being infringed in the ITC investigation explained above. This District Court case has been stayed pending the ITC case, and will likely continue to be stayed pending the conclusion of Roku's appeal of the ITC case. Court of International Trade Action against the United States of America, et. al. On October 9, 2020, we and our subsidiaries, Ecolink Intelligent Technology, Inc. ("Ecolink") and RCS Technology, LLC ("RCS"), filed an amended complaint (20-cv-00670) in the Court of International Trade (the "CIT") against the United States of America; the Office of the United States Trade Representative; Robert E. Lighthizer, U.S. Trade Representative; U.S. Customs & Border Protection; and Mark A. Morgan, U.S. Customs & Border Protection Acting Commissioner, challenging both the substantive and procedural processes followed by the United States Trade Representative ("USTR") when instituting Section 301 Tariffs on imports from China under Lists 3 and 4A. Pursuant to this complaint, Ecolink, RCS and we are alleging that USTR's institution of Lists 3 and 4A tariffs violated the Trade Act of 1974 (the "Trade Act") on the grounds that the USTR failed to make a determination or finding that there was an unfair trade practice that required a remedy and moreover, that Lists 3 and 4A tariffs were instituted beyond the 12-month time limit provided for in the governing statute. Ecolink, RCS and we also allege that the manner in which the Lists 3 and 4A tariff actions were implemented violated the Administrative Procedures Act (the "APA") by failing to provide adequate opportunity for comments, failed to consider relevant factors when making its decision and failed to connect the record facts to the choices it made by not explaining how the comments received by USTR came to shape the final implementation of Lists 3 and 4A. Ecolink, RCS and we are asking the CIT to declare that the defendants' actions resulting in the tariffs on products covered by Lists 3 and 4A are unauthorized by and contrary to the Trade Act and were arbitrarily and unlawfully promulgated in violation of the APA; to vacate the Lists 3 and 4A tariffs; to order a refund (with interest) of any Lists 3 and 4A duties paid by Ecolink, RCS and us; to permanently enjoin the U.S. government from applying Lists 3 and 4A duties against Ecolink, RCS and us; and award Ecolink, RCS and us our costs and reasonable attorney's fees. In July 2021, the CIT issued a preliminary injunction suspending liquidation of all unliquidated entries subject to Lists 3 and 4A duties and has asked the parties to develop a process to keep track of the entries to efficiently and effectively deal with liquidation process and duties to be paid or refunded when finally adjudicated. On February 5, 2022, the CIT heard oral arguments on dispositive motions filed on behalf of plaintiffs and defendants. On April 1, 2022, the CIT issued its opinion on these dispositive motions, ruling that the USTR had the legal authority to promulgate List 3 and List 4A under Section 307(a)(1)(B) of the Trade Act, but that the USTR violated the APA when it promulgated List 3 and List 4A concluding that the USTR failed to adequately explain its decision as required under the APA. The Court ordered that List 3 and List 4A be remanded to the USTR for reconsideration or further explanation regarding its rationale for imposing the tariffs. The Court declined to vacate List 3 and List 4A, which means that they are still in place while on remand. The Court's preliminary injunction regarding liquidation of entries also remains in effect. The Court initially set a deadline of June 30, 2022, for the USTR to complete this process, which was extended to August 1, 2022. On August 1, 2022, the USTR provided the Court with that further explanation and also purported to respond to the significant comments received during the original notice-and-comment process. On September 14, 2022, the lead plaintiff filed its comments to the USTR's August 1, 2022 filing, asserting that the USTR did not adequately respond to the Court's remand order and requested the Court to vacate the List 3 and List 4A tariffs and issue refunds immediately. On March 17, 2023, the CIT sustained the List 3 and List 4 tariffs, concluding that USTR’s rationale in support of the tariffs was not impermissibly post hoc. The court also concluded that USTR adequately explained its reliance on presidential direction and adequately responded to significant comments regarding the harm to the U.S. economy, efficacy of the tariffs, and alternatives to the tariffs. Lead plaintiffs have appealed this decision. The parties have fully briefed their positions on this appeal and oral argument is expected to be set for later in 2024 and a decision sometime in 2025. Tongshun Matters On January 23, 2024, Tongshun Company ("TS") filed suit against one of our subsidiary factories, Gemstar Technology (Yangzhou) Co. Ltd. ("GTY"), claiming among other things, breach of an employment agency, and as is standard in Chinese litigation matters such as these, TS has also requested the Court to order a hold on GTY's bank account for the total claimed amount of RMB 35 million. This asset protection order is a standard request and routinely granted. On February 5, 2024, we learned that the Court accepted the lawsuit filed by TS. The hearing on this matter has been scheduled for early March of this year. We will vigorously defend against these claims. There are no other material pending legal proceedings to which we or any of our subsidiaries is a party or of which our respective property is the subject. However, as is typical in our industry and to the nature and kind of business in which we are engaged, from time to time, various claims, charges and litigation are asserted or commenced by third parties against us or by us against third parties arising from or related to product liability, infringement of patent or other intellectual property rights, breach of warranty, contractual relations, or employee relations. The amounts claimed may be substantial, but may not bear any reasonable relationship to the merits of the claims or the extent of any real risk of court awards assessed against us or in our favor. However, no assurances can be made as to the outcome of any of these matters, nor can we estimate the range of potential losses to us. In our opinion, final judgments, if any, which might be rendered against us in potential or pending litigation would not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. Moreover, we believe that our products do not infringe any third parties' patents or other intellectual property rights. We maintain directors' and officers' liability insurance which insures our individual directors and officers against certain claims, as well as attorney's fees and related expenses incurred in connection with the defense of such claims. Defined Benefit Plan Our subsidiary in India maintains a defined benefit pension plan ("India Plan") for local employees, which is consistent with local statutes and practices. The pension plan was adequately funded on December 31, 2023 based on its latest actuarial report. The India Plan has an independent external manager that advises us of the appropriate funding contribution requirements to which we comply. At December 31, 2023, approximately 56 percent of our India subsidiary employees had qualified for eligibility. An individual must be employed by our India subsidiary for a minimum of five years before becoming eligible. Upon the termination, resignation or retirement of an eligible employee, we are liable to pay the employee an amount equal to 15 days salary for each full year of service completed. The total amount of liability outstanding at December 31, 2023 and 2022 for the India Plan was not material. During the years ended December 31, 2023, 2022 and 2021, the net periodic benefit costs were also not material. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock From time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. On October 26, 2023, our Board approved a new share repurchase program with an effective date of November 7, 2023 (the "October 2023 Program"). Pursuant to the October 2023 Program, we are authorized to repurchase up to 1,000,000 shares of our common stock. At December 31, 2023, we had 900,000 shares available for repurchase under the October 2023 Program. We may utilize various methods to effect the repurchases under the October 2023 Program, including open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some or all of which could be effected through Rule 10b5-1 plans. We also repurchase shares of our issued and outstanding common stock to satisfy the cost of stock option exercises and/or income tax withholding obligations relating to the stock-based compensation of our employees and directors. Repurchased shares of our common stock were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Open market shares repurchased 100 300 1,151 Stock-based compensation related shares repurchased 65 134 92 Total shares repurchased 165 434 1,243 Cost of open market shares repurchased $ 864 $ 9,437 $ 54,868 Cost of stock-based compensation related shares repurchased 915 3,598 4,796 Total cost of shares repurchased $ 1,779 $ 13,035 $ 59,664 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Cost of sales $ 125 $ 155 $ 156 Research and development expenses 1,098 1,342 1,253 Selling, general and administrative expenses: Employees 6,980 7,257 6,997 Outside directors 606 1,259 1,563 Total employee and director stock-based compensation expense $ 8,809 $ 10,013 $ 9,969 Income tax benefit $ 1,369 $ 1,660 $ 1,718 Stock Options The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: Year Ended December 31, 2023 2022 2021 Weighted average fair value of grants $ 10.83 $ 14.51 $ 23.97 Risk-free interest rate 3.86 % 1.93 % 0.41 % Expected volatility 45.89 % 49.35 % 48.49 % Expected life in years 4.70 4.73 4.62 Stock option activity was as follows: 2023 2022 2021 Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at beginning of the year 782 $ 44.16 800 $ 45.55 774 $ 43.01 Granted 235 24.77 139 33.42 80 59.43 Exercised — — $ — (80) 19.25 $ 292 (54) 30.04 $ 931 Forfeited/canceled/expired (116) 46.59 (77) 64.81 — — Outstanding at end of the year (1) 901 $ 38.78 3.67 $ — 782 $ 44.16 3.45 $ — 800 $ 45.55 3.15 $ 3,780 Vested and expected to vest at the end of the year (1) 901 $ 38.78 3.67 $ — 782 $ 44.16 3.45 $ — 800 $ 45.55 3.15 $ 3,780 Exercisable at the end of the year (1) 620 $ 44.06 2.60 $ — 600 $ 45.77 2.61 $ — 656 $ 44.08 2.58 $ 3,608 (1) The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2023, 2022 and 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on December 31, 2023, 2022 and 2021. This amount will change based on the fair market value of our stock. There were no option exercises in the year ended December 31, 2023. The value of shares withheld in lieu of receiving cash from option exercises in the years ended December 31, 2022 and 2021 was $1.5 million and $0.6 million, respectively. Cash received from option exercises for the year ended December 31, 2021 was $1.0 million. There was no cash received from option exercises for the year ended December 31, 2022. The actual tax benefit realized from option exercises was $0.1 million and $0.2 million for the years ended December 31, 2022 and 2021, respectively. Significant option groups outstanding at December 31, 2023 and the related weighted average exercise price and life information were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted-Average Weighted-Average Number Weighted-Average $24.77 to $34.56 503 4.79 $ 27.77 227 $ 29.35 $44.95 to $46.17 207 2.60 45.59 207 45.59 $52.85 to $62.70 191 2.38 60.31 186 60.34 901 3.67 $ 38.78 620 $ 44.06 As of December 31, 2023, we expect to recognize $2.4 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 1.8 years. Restricted Stock Non-vested restricted stock award activity was as follows: 2023 2022 2021 Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Non-vested at beginning of the year 376 $ 36.82 310 $ 44.41 374 $ 34.53 Granted 340 14.15 262 31.05 156 56.90 Vested (211) 35.77 (191) 41.09 (211) 36.35 Forfeited (19) 17.72 (5) 43.22 (9) 39.65 Non-vested at end of the year 486 $ 21.66 376 $ 36.82 310 $ 44.41 As of December 31, 2023, we expect to recognize $6.4 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.6 years. In February 2024, certain executives were granted 116,000 restricted stock awards, in the aggregate, in connection with the 2023 annual review cycle. These awards were granted as part of the executive compensation program and are subject to a three-year vesting period (33.33% on February 7, 2025 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $1.0 million. In February 2024, certain executives were granted 116,001 performance stock awards, in the aggregate, in connection with the 2023 annual review cycle. These awards vest only upon the satisfaction of a three-year service condition and market conditions based upon the price per share of our common stock. We are currently determining the fair market value of these awards using a Monte Carlo simulation model as of the grant date. Stock Incentive Plans Our active stock-based incentive plans include those adopted in 2014 and 2018 ("Stock Incentive Plans"). Under the Stock Incentive Plans, we may grant stock options, stock appreciation rights, restricted stock units, performance stock units, or any combination thereof for a period of ten years from the approval date of each respective plan, unless the plan is terminated by resolution of our Board of Directors. No stock appreciation rights or performance stock units have been awarded under our Stock Incentive Plans as of December 31, 2023. Only directors and employees meeting certain employment qualifications are eligible to receive stock-based awards. The grant price of stock option, restricted stock, and performance stock awards granted under our Stock Incentive Plans is the average of the high and low trades of our stock on the grant date. We prohibit the re-pricing or backdating of stock options. Our stock options become exercisable in various proportions over a three-year time frame. Stock options have a maximum ten-year term. Restricted stock awards vest in various proportions over a one Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2023: Name Approval Date Total Shares Remaining Shares Outstanding Shares 2014 Stock Incentive Plan 6/12/2014 1,100,000 — 189,975 2018 Equity and Incentive Compensation Plan (1) 6/4/2018 2,289,479 336,566 1,197,891 336,566 1,387,866 (1) The 2018 Equity and Incentive Compensation Plan was amended in June 2021 to add an additional 1,100,000 shares, as approved by our stockholders. |
Performance-Based Common Stock
Performance-Based Common Stock Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Performance-Based Common Stock Warrants | Performance-Based Common Stock Warrants On March 9, 2016, we issued common stock purchase warrants to Comcast Corporation ("Comcast") at a price of $54.55 per share. On January 1, 2023, all 275,000 of the vested and outstanding warrants expired unexercised. The impact to net sales recorded in connection with the warrants and the related income tax benefit was as follows: Year Ended December 31, (in thousands) 2023 2022 2021 Reduction (addition) to net sales (1) $ — $ — $ (686) Income tax benefit $ — $ — $ (171) (1) At December 31, 2021, Comcast did not meet the minimum performance obligations to vest in any portion of the warrants associated with the two-year vesting period ended December 31, 2021. As such, all previously recorded expenses associated with this vesting period were reversed. |
Other Income (Expense), Net and
Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary | Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary Other income (expense), net consisted of the following: Year Ended December 31, (In thousands) 2023 2022 2021 Net gain (loss) on foreign currency exchange contracts (1) $ (3,238) $ (1,309) $ 2,903 Net gain (loss) on foreign currency exchange transactions (262) 218 (4,237) Other income (expense) 879 136 777 Other income (expense), net $ (2,621) $ (955) $ (557) (1) This represents the gains (losses) incurred on foreign currency hedging derivatives. See Note 19 for further information concerning our foreign currency exchange contracts. On September 7, 2021, we completed the sale of our subsidiary, One For All Argentina S.R.L, to an unrelated party, recording a loss on sale of $6.1 million. Upon divestiture, the successor entity, OFA Express S.R.L., serves as an authorized distributor of certain of our products in Argentina. OFA Express, S.R.L. is not a related party of the Company. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share was calculated as follows: Year Ended December 31, (In thousands, except per-share amounts) 2023 2022 2021 BASIC Net income (loss) $ (98,238) $ 407 $ 5,301 Weighted-average common shares outstanding 12,855 12,703 13,465 Basic earnings (loss) per share $ (7.64) $ 0.03 $ 0.39 DILUTED Net income (loss) $ (98,238) $ 407 $ 5,301 Weighted-average common shares outstanding for basic 12,855 12,703 13,465 Dilutive effect of stock options, restricted stock and common stock warrants — 76 277 Weighted-average common shares outstanding on a diluted basis 12,855 12,779 13,742 Diluted earnings (loss) per share $ (7.64) $ 0.03 $ 0.39 The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive: Year Ended December 31, (In thousands) 2023 2022 2021 Stock options 900 686 412 Restricted stock awards 440 242 65 Performance-based warrants — 275 206 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The following table sets forth the total net fair value of derivatives: December 31, 2023 December 31, 2022 Fair Value Measurement Using Total Balance Fair Value Measurement Using Total Balance (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Foreign currency exchange contracts $ — $ (83) $ — $ (83) $ — $ 100 $ — $ 100 We held foreign currency exchange contracts which resulted in a net pre-tax loss of $3.2 million, a net pre-tax loss of $1.3 million, and a net pre-tax gain of $2.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 17 for further information concerning our foreign currency exchange contracts. Details of foreign currency exchange contracts held were as follows: Date Held Currency Position Held Notional Value Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date December 31, 2023 USD/Chinese Yuan Renminbi CNY $ 20.0 7.1181 $ (18) January 5, 2024 December 31, 2023 USD/Euro USD $ 22.0 1.1009 $ (65) January 5, 2024 December 31, 2022 USD/Euro USD $ 26.0 1.0529 $ (428) January 6, 2023 December 31, 2022 USD/Chinese Yuan Renminbi CNY $ 31.0 7.0358 $ 528 January 6, 2023 (1) Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We maintain a retirement and profit sharing plan under Section 401(k) of the Internal Revenue Code for all of our domestic employees that meet certain qualifications. Participants in the plan may elect to contribute up to the maximum allowed by law. We match 50% of the participants' contributions up to 15% of their gross salary in the form of newly issued shares of our common stock. We may also make other discretionary contributions to the plan. We recorded $1.3 million, $1.2 million and $1.1 million of expense for company contributions for the years ended December 31, 2023, 2022 and 2021, respectively. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations On February 17, 2022, we acquired substantially all of the net assets of Qterics, a U.S.-based provider of multimedia connectivity solutions and services for internet-enabled consumer products. Under the terms of the Asset Purchase Agreement ("APA"), we paid a cash purchase price of approximately $0.9 million. The acquisition of these assets will allow us to expand our customer base in the OEM market. Our consolidated income statement for the year ended December 31, 2023 includes net sales of $2.1 million and net income of $16 thousand attributable to Qterics. Our consolidated income statement for the year ended December 31, 2022 includes net sales of $2.1 million and net income of $145 thousand attributable to Qterics for the period commencing on February 17, 2022. In accordance with the terms of the APA, the initial purchase price was subject to adjustment for differences between the initial estimated working capital balances and the final adjusted balances. This calculation was completed at March 31, 2022. Purchase Price Allocation Using the acquisition method of accounting, the acquisition date fair value of the consideration transferred was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their fair values on the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired is recorded as goodwill. The goodwill is expected to be deductible for income tax purposes. Management's purchase price allocation as of December 31, 2023 was the following: (In thousands) Estimated Lives Fair Value Accounts receivable $ 787 Property, plant and equipment 5 years 3 Customer relationships 6 years 1,340 Developed technology 6 years 440 Trade names 6 years 50 Goodwill (1) 713 Operating lease ROU assets 3 years 149 Other assets 2 Other accrued liabilities (6) Short-term operating lease obligation (48) Deferred revenue (1,539) Long-term operating lease obligation (101) Long-term deferred revenue (851) Cash paid $ 939 (1) Our consolidated goodwill balance was impaired during the year ended December 31, 2023. Please see Note 7 for further information. Management's determination of the fair value of intangible assets acquired are based primarily on significant inputs not observable in an active market and thus represent Level 3 fair value measurements as defined under U.S. GAAP. The fair value assigned to the Qterics developed technology and trade names intangible assets were determined utilizing a relief from royalty method. Under the relief from royalty method, the fair value of the intangible asset is estimated to be the present value of the royalties saved because the company owns the intangible asset. Revenue projections and estimated useful life were significant inputs into estimating the value of the Qterics developed technology and trade names. The fair value assigned to Qterics customer relationships intangible assets were determined utilizing a multi-period excess earnings approach. Under the multi-period excess earnings approach, the fair value of the intangible asset is estimated to be the present value of future earnings attributable to the asset and utilizes revenue and cost projections, including an assumed contributory asset charge. The developed technology, trade names and customer relationships intangible assets are expected to be deductible for income tax purposes. Pro Forma Results (unaudited) The unaudited pro forma financial information of combined results of our operations and the operations of Qterics as if the transaction had occurred on January 1, 2021, is immaterially different from the net sales, net income and income per share amounts reported in the Consolidated Statements of Operations for the years ended December 31, 2022 and 2021. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ (98,238) | $ 407 | $ 5,301 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
Reportable Segment | Reportable Segment An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. Our chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, we only have a single operating and reportable segment. |
Estimates and Assumptions | Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for credit losses, inventory valuation, impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes and related valuation allowances, stock-based compensation expense and performance-based common stock warrants. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of a good or service is transferred to a customer. Control is considered to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good or service. Revenues are generated from manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels, and licensing intellectual property that is embedded in these products or licensed to others for use in their products. We also generate revenues from a cloud-based software solution enabling software updates, digital rights management provisioning and remote technical support to consumer electronics customers. Revenue - Product revenue is generated through manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels. Our performance obligations are satisfied over time or at a point in time, depending on the nature of the product. Our contracts have an anticipated duration of less than a year and consideration may be variable based on indeterminate volumes. Revenue is recognized over time when our performance creates an asset with no alternative use to us (custom products) and we have an enforceable right to payment for performance completed to date, including a reasonable margin, through a contractual commitment from the customer. Custom products are those products for which we are unable to redirect the asset to another customer in the foreseeable future without significant rework. The method for measuring progress towards satisfying a performance obligation for a custom product is based on the costs incurred to date (cost-to-cost method). We believe that the costs associated with production are most closely aligned with the revenue associated with those products. We recognize revenue at a point in time if the criteria for recognizing revenue over time are not met, the title of the goods has transferred and we have a present right to payment. A provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded. These estimates are based on historical sales returns and allowances, analysis of credit memo data and other known factors. Actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and claims are significantly greater or lower than the reserves that we have established, we will record a reduction or increase to net sales in the period in which we make such a determination. We license our symbolic intellectual property which includes our patented technologies and database of control codes. Royalty revenue is recognized for these licensing arrangements on an over time basis. We record license revenue for per-unit based licenses when our customers manufacture or ship a product incorporating our intellectual property and we have a present right to payment. We record per-unit-based licenses with minimum guarantees ratably over the license period to which the minimum guarantee relates and any per-unit sales in excess of the minimum guarantee in the period in which the sale occurs. We record licenses with fixed consideration ratably over the license period. Tiered royalties are recorded on a straight-line basis according to the forecasted per-unit fees taking into account the pricing tiers. We recognize service revenues related to our cloud-based software solution on an over-time basis, as our customers simultaneously receive and consume the benefits provided by our performance. Revenues are recognized over the period during which the performance obligations are satisfied, and control of the service is transferred to the customers. Contract assets - Contract assets represent the value of revenue recognized over time for which we have not yet invoiced the customer. Generally, we invoice the customer within 90 days of revenue recognition. Contract liabilities - A contract liability is recorded when consideration is received from a customer prior to fully satisfying a performance obligation in a contract. Our contract liabilities primarily consist of cash received in advance of providing our cloud-based software services. These contract liabilities will be recognized as revenues when control of the related product or service is transferred to the customer. See Note 4 for further information concerning contract liabilities. Other sales-related matters - Trade receivables are recorded at the invoiced amount and do not bear interest. Payment terms are typically on open credit terms consistent with industry practice and do not have significant financing components. We accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers. Accruals for discounts and rebates are recorded as a reduction to sales in the same period as the related revenue. Such discounts were $10.5 million and $12.2 million at December 31, 2023 and 2022, respectively. Changes in such accruals may be required if future rebates and incentives differ from our estimates. We present all non-income government-assessed taxes (sales, use and value added taxes) collected from our customers and remitted to governmental agencies on a net basis (excluded from revenue) in our financial statements. The government-assessed taxes are recorded in our consolidated balance sheets until they are remitted to the government agency. Shipping and Handling Fees and Costs |
Income Taxes | Income Taxes We provide for income taxes utilizing the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are presented net as non-current by jurisdiction. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the differences between the financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when a judgment is made that is considered more likely than not that a tax benefit will not be realized. A decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit. If the valuation allowance is released in a future period, income tax expense will be reduced accordingly. The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The impact of an uncertain income tax position is recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not, on a jurisdiction-by-jurisdiction basis, that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We continue to assess the need for a valuation allowance on deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required. |
Research and Development | Research and Development Research and development costs are expensed as incurred and consist primarily of salaries, employee benefits, supplies and materials. |
Advertising | Advertising |
Stock-Based Compensation | Stock-Based Compensation We recognize the grant date fair value of stock-based compensation awards as expense in proportion to vesting during the derived service period, which ranges from one We determine the fair value of restricted stock awards with a service condition utilizing the average of the high and low trading prices of our common shares on the date they were granted. |
Performance-Based Common Stock Warrants | Performance-Based Common Stock Warrants |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions We use the U.S. Dollar as our functional currency for financial reporting purposes. The functional currency for most of our foreign subsidiaries is their local currency. The translation of foreign currencies into U.S. Dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using the average exchange rate during each period. The gains and losses resulting from the translation are included in the foreign currency translation adjustment account, a component of accumulated other comprehensive income in stockholders' equity, and are excluded from net income. The portions of intercompany accounts receivable and accounts payable that are intended for settlement are translated at exchange rates in effect at the balance sheet date. Our intercompany foreign investments and long-term debt that are not intended for settlement are translated using historical exchange rates. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares, including the dilutive effect of stock options, restricted stock and common stock warrants, outstanding during the period. Dilutive potential common shares for all periods presented are computed utilizing the treasury stock method; however, dilutive potential common shares are excluded where their inclusion would be anti-dilutive. |
Financial Instruments | Financial Instruments |
Cash, Cash Equivalents, and Term Deposit | Cash, Cash Equivalents and Term Deposit |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses for estimated losses on our trade receivables, resulting from the inability of our customers to make payments for products sold or services rendered. The allowance for credit losses is based on a variety of factors, including credit reviews, historical experience, length of time receivables are past due, current economic trends and changes in customer payment behavior. |
Inventories | Inventories Inventories consist of remote controls, wireless sensors and AV accessories, as well as the related component parts and raw materials. Inventoriable costs include materials, labor, freight-in and manufacturing overhead related to the purchase and production of inventories. We value our inventories at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. We attempt to carry inventories in amounts necessary to satisfy our customer requirements on a timely basis. See Note 5 for further information concerning our inventories and suppliers. Product innovations and technological advances may shorten a given product's life cycle. We continually monitor our inventories to identify any excess or obsolete items on hand. We write down our inventories for estimated excess and obsolescence in an amount equal to the difference between the cost of the inventories and estimated net realizable value. These estimates are based upon management's judgment about future demand and market conditions. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. The cost of property, plant, and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. We capitalize additions and improvements and expense maintenance and repairs as incurred. We capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. For financial reporting purposes, depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included as a component of depreciation expense. Estimated useful lives are as follows: Buildings 25-33 years Tooling and equipment 2-7 years Computer equipment 3-5 years Software 3-7 years Furniture and fixtures 5-8 years Leasehold and building improvements Lesser of lease term or useful life (approximately 2 to 10 years) |
Goodwill | Goodwill We record the excess purchase price of net tangible and intangible assets acquired over their estimated fair value as goodwill. We evaluate the carrying value of goodwill on December 31 of each year and between annual evaluations if events occur or circumstances change that may reduce the fair value of the reporting unit below its carrying amount. Such circumstances may include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) a decline in macroeconomic conditions, (3) a significant decline in our financial performance or (4) a significant decline in the price of our common stock for a sustained period of time. |
Intangible Assets | Intangible Assets Intangible assets consist of capitalized software development costs, customer relationships, developed and core technologies, distribution rights, patents and trademarks and trade names. Capitalized amounts related to patents represent external legal costs for the application, maintenance and extension of the useful life of patents. Intangible assets are amortized using the straight-line method over their estimated period of benefit. Estimated useful lives are as follows: Capitalized software development 2 years Customer relationships 10-15 years Developed and core technology 5-15 years Distribution rights 10 years Patents 10 years Trademarks and trade names 10 years |
Long-Lived and Intangible Assets Impairment | Long-Lived and Intangible Assets Impairment We assess the impairment of long-lived and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important which may trigger an impairment review may include the following, but are not limited to: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner or use of the assets, their physical condition or strategy for the overall business; (3) significant negative industry or economic trends; (4) a current expectation that a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life; or (5) a significant decline in our stock price for a sustained period. We conduct an impairment review when we determine that the carrying value of a long-lived or intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment. The asset is impaired if its carrying value exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. |
Leases | Leases We determine if an arrangement is a lease at inception and determine the classification of the lease, as either operating or finance, at commencement. Operating leases are included in operating lease right-of-use ("ROU") assets, other accrued liabilities and long-term operating lease obligations on our consolidated balance sheets. We presently do not have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of lease payments. Operating lease ROU assets also factor in any lease payments made, initial direct costs and lease incentives received. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Some of our leases include options to extend with a range of three years to five years with two extensions at the then current market rate. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less, or on a month-to-month basis, are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. If applicable, we combine lease and non-lease components, which primarily relate to ancillary expenses associated with real estate leases such as common area maintenance charges and management fees. |
Business Combinations | Business Combinations We allocate the purchase price of acquired businesses to the tangible and intangible assets and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. We engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant fair value estimates and assumptions, especially with respect to intangible assets and contingent consideration. Management estimates the fair value of certain intangible assets and contingent consideration by utilizing the following (but not limited to): • future cash flow from customer contracts, customer lists, distribution agreements, acquired developed technologies, trademarks, trade names and patents; • expected costs to complete development of in-process technology into commercially viable products and cash flows from the products once they are completed; • brand awareness and market position, as well as assumptions regarding the period of time the brand will continue to be used in our product portfolio; and • discount rates utilized in discounted cash flow models. Results of operations and cash flows of acquired businesses are included in our operating results from the date of acquisition. In those circumstances where an acquisition involves a contingent consideration arrangement, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability at each reporting period and record changes in the fair value within operating expenses. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of earnings estimates or in the timing or likelihood of achieving earnings-based milestones. Contingent consideration is recorded in other accrued liabilities and long-term contingent consideration in our consolidated balance sheets. |
Derivatives | Derivatives Our foreign currency exposures are primarily concentrated in the Brazilian Real, British Pound, Chinese Yuan Renminbi, Euro, Hong Kong Dollar, Indian Rupee, Japanese Yen, Korean Won, Mexican Peso and Vietnamese Dong. We periodically enter into foreign currency exchange contracts with terms normally lasting less than nine months, to protect against the adverse effects that exchange-rate fluctuations may have on our foreign currency-denominated receivables, payables, cash flows and reported income. We do not enter into financial instruments for speculation or trading purposes. The derivatives we enter into have not qualified for hedge accounting. The gains and losses on both the derivatives and the foreign currency-denominated balances are recorded as foreign exchange transaction gains or losses and are classified in other income (expense), net. Derivatives are recorded on the balance sheet at fair value. The estimated fair value of derivative financial instruments represents the amount required to enter into similar offsetting contracts with similar remaining maturities based on quoted market prices. See Note 19 for further information concerning derivatives. |
Fair-Value Measurements | Fair-Value Measurements We measure fair value using the framework established by the FASB in ASC Topic 820 for fair value measurements and disclosures. This framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The valuation techniques are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources. Unobservable inputs require management to make certain assumptions and judgments based on the best information available. Observable inputs are the preferred data source. These two types of inputs result in the following fair value hierarchy: Level 1: Quoted prices (unadjusted) for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable. |
Recently Adopted Accounting Pronouncements and Accounting Updates Not Yet Effective | Recently Adopted Accounting Pronouncements None. Other Accounting Pronouncements Accounting Updates Not Yet Effective In November 2023, the FASB issued ASU 2023-07, "Segment Reporting – Improvements to Reportable Segments Disclosures." The guidance enhances disclosures of significant segment expenses by requiring the disclosure of significant segment expenses regularly provided to the chief operating decision maker, extends certain annual disclosures to interim periods, and permits more than one measure of segment profit or loss to be reported under certain conditions. All disclosure requirements are also required for companies with a single reportable segment. The guidance is effective in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the guidance is permitted, including adoption in any interim periods for which financial statements have not been issued. The Company is currently evaluating the guidance and its impact to the financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes - Improvements to Tax Disclosures." The guidance expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The guidance will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the guidance and its impact to the financial statements and related disclosures. We have assessed all other ASUs issued but not yet adopted and concluded that those not disclosed are not relevant to the Company or are not expected to have a material impact. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Estimated useful lives are as follows: Buildings 25-33 years Tooling and equipment 2-7 years Computer equipment 3-5 years Software 3-7 years Furniture and fixtures 5-8 years Leasehold and building improvements Lesser of lease term or useful life (approximately 2 to 10 years) Property, plant, and equipment, net were as follows: December 31, (In thousands) 2023 2022 Buildings $ 17,806 $ 18,291 Computer equipment 9,679 9,344 Furniture and fixtures 3,598 3,529 Leasehold and building improvements 33,049 39,761 Machinery and equipment 82,302 96,947 Software 28,074 23,607 Tooling 30,724 31,898 205,232 223,377 Accumulated depreciation (163,301) (170,474) 41,931 52,903 Construction in progress 2,688 9,888 Total property, plant, and equipment, net $ 44,619 $ 62,791 Construction in progress was as follows: December 31, (In thousands) 2023 2022 Leasehold and building improvements $ 623 $ 475 Machinery and equipment 738 2,282 Software 11 4,862 Tooling 1,197 1,827 Other 119 442 Total construction in progress $ 2,688 $ 9,888 |
Schedule of Finite-Lived Intangible Assets | Estimated useful lives are as follows: Capitalized software development 2 years Customer relationships 10-15 years Developed and core technology 5-15 years Distribution rights 10 years Patents 10 years Trademarks and trade names 10 years The components of intangible assets, net were as follows: December 31, 2023 2022 (In thousands) Gross (1) Accumulated Amortization (1) Net (1) Gross (1) Accumulated Amortization (1) Net (1) Capitalized software development costs $ 2,161 $ (421) $ 1,740 $ 1,647 $ (44) $ 1,603 Customer relationships 6,340 (3,803) 2,537 6,340 (3,080) 3,260 Developed and core technology 4,220 (3,754) 466 4,520 (3,693) 827 Distribution rights — — — 308 (281) 27 Patents 33,195 (12,686) 20,509 29,388 (10,790) 18,598 Trademarks and trade names 450 (353) 97 450 (295) 155 Total intangible assets, net $ 46,366 $ (21,017) $ 25,349 $ 42,653 $ (18,183) $ 24,470 (1) This table excludes the gross value of fully amortized intangible assets totaling $45.0 million and $43.7 million on December 31, 2023 and 2022, respectively. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Term Deposit (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents by Geographic Region | Cash and cash equivalents were held in the following geographic regions: December 31, (In thousands) 2023 2022 North America $ 8,460 $ 6,825 People's Republic of China ("PRC") 11,102 32,569 Asia (excluding the PRC) 2,427 1,914 Europe 8,145 13,042 South America 12,617 12,390 Total cash and cash equivalents $ 42,751 $ 66,740 |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Pattern of Revenue Recognition | The pattern of revenue recognition was as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Goods and services transferred at a point in time $ 324,433 $ 450,227 $ 498,554 Goods and services transferred over time 96,024 92,524 103,048 Net sales $ 420,457 $ 542,751 $ 601,602 |
Revenue from External Customers by Geographic Areas | Our net sales to external customers by geographic area were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 United States $ 129,528 $ 167,501 $ 200,136 Asia (excluding the PRC) 85,347 127,702 127,140 Europe 90,221 103,993 126,551 People's Republic of China 63,334 85,215 87,866 Latin America 28,870 28,363 25,943 Other 23,157 29,977 33,966 Total net sales $ 420,457 $ 542,751 $ 601,602 |
Net Sales to Significant Customers | Net sales to the following customer totaled more than 10% of our net sales: Year Ended December 31, 2023 2022 2021 $ (thousands) % of Net $ (thousands) % of Net $ (thousands) % of Net Comcast Corporation (1) (1) $ 75,917 14.0 % $ 98,361 16.3 % Daikin Industries Ltd. $ 58,843 14.0 % $ 78,413 14.4 % $ 70,793 11.8 % (1) Sales associated with this customer did not total more than 10% of our net sales for the indicated period. |
Accounts Receivable, Net and Changes in the Allowance for Credit Losses | Accounts receivable, net were as follows: December 31, (In thousands) 2023 2022 Trade receivables, gross $ 106,182 $ 108,030 Allowance for credit losses (815) (957) Allowance for sales returns (532) (618) Trade receivables, net 104,835 106,455 Other (1) 7,761 5,891 Accounts receivable, net $ 112,596 $ 112,346 (1) Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables. Allowance for Credit Losses Changes in the allowance for credit losses were as follows: (In thousands) Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 957 $ 1,285 $ 1,412 Additions (reductions) to costs and expenses 70 (182) — Cash receipts — — — Write-offs/Foreign exchange effects (212) (146) (127) Balance at end of period $ 815 $ 957 $ 1,285 |
Trade Receivables Associated with Significant Customers | Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net were as follows: December 31, 2023 2022 $ (thousands) % of Accounts Receivable, Net $ (thousands) % of Accounts Receivable, Net Comcast Corporation (1) (1) $ 15,367 13.7 % (1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period. |
Carrying Amount of Contract Liabilities | Changes in the carrying amount of contract liabilities were as follows: (In thousands) Year Ended December 31, 2023 2022 Balance at beginning of period $ 1,931 $ 390 Contract liabilities acquired (1) — 2,390 Payments received 6,080 4,964 Revenue recognized (4,529) (5,812) Foreign exchange effects 19 (1) Balance at end of period $ 3,501 $ 1,931 (1) During the year ended December 31, 2022, we recognized $2.4 million of contract liabilities related to the Qterics, Inc. ("Qterics") acquisition. Refer to Note 21 for further information about this acquisition. |
Inventories and Significant S_2
Inventories and Significant Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories were as follows: December 31, (In thousands) 2023 2022 Raw materials $ 32,794 $ 58,759 Components 11,061 25,226 Work in process 3,827 2,616 Finished goods 40,591 53,580 Inventories $ 88,273 $ 140,181 |
Purchases from Significant Suppliers | We purchase integrated circuits, components and finished goods from multiple sources. Purchases from the following supplier totaled 10% of our total inventory purchases: Year Ended December 31, 2023 2022 2021 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. (1) (1) $ 33,293 11.5 % $ 38,712 11.8 % (1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period. |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net and Construction in Progress | Estimated useful lives are as follows: Buildings 25-33 years Tooling and equipment 2-7 years Computer equipment 3-5 years Software 3-7 years Furniture and fixtures 5-8 years Leasehold and building improvements Lesser of lease term or useful life (approximately 2 to 10 years) Property, plant, and equipment, net were as follows: December 31, (In thousands) 2023 2022 Buildings $ 17,806 $ 18,291 Computer equipment 9,679 9,344 Furniture and fixtures 3,598 3,529 Leasehold and building improvements 33,049 39,761 Machinery and equipment 82,302 96,947 Software 28,074 23,607 Tooling 30,724 31,898 205,232 223,377 Accumulated depreciation (163,301) (170,474) 41,931 52,903 Construction in progress 2,688 9,888 Total property, plant, and equipment, net $ 44,619 $ 62,791 Construction in progress was as follows: December 31, (In thousands) 2023 2022 Leasehold and building improvements $ 623 $ 475 Machinery and equipment 738 2,282 Software 11 4,862 Tooling 1,197 1,827 Other 119 442 Total construction in progress $ 2,688 $ 9,888 |
Long-Lived Tangible Assets by Geographic Area | Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease ROU assets, were as follows: December 31, (In thousands) 2023 2022 United States $ 13,245 $ 16,427 People's Republic of China 26,679 42,893 Mexico 9,227 14,402 Vietnam 10,089 6,923 All other countries 4,072 3,745 Total long-lived tangible assets $ 63,312 $ 84,390 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows: (In thousands) Balance at December 31, 2021 $ 48,463 Goodwill acquired during the period (1) 713 Foreign exchange effects (91) Balance at December 31, 2022 49,085 Goodwill impairment (49,075) Foreign exchange effects (10) Balance at December 31, 2023 $ — (1) During the year ended December 31, 2022, we recognized $0.7 million of goodwill related to the Qterics, Inc. acquisition. Refer to Note 21 for further information about this acquisition. |
Components of Intangible Assets | Estimated useful lives are as follows: Capitalized software development 2 years Customer relationships 10-15 years Developed and core technology 5-15 years Distribution rights 10 years Patents 10 years Trademarks and trade names 10 years The components of intangible assets, net were as follows: December 31, 2023 2022 (In thousands) Gross (1) Accumulated Amortization (1) Net (1) Gross (1) Accumulated Amortization (1) Net (1) Capitalized software development costs $ 2,161 $ (421) $ 1,740 $ 1,647 $ (44) $ 1,603 Customer relationships 6,340 (3,803) 2,537 6,340 (3,080) 3,260 Developed and core technology 4,220 (3,754) 466 4,520 (3,693) 827 Distribution rights — — — 308 (281) 27 Patents 33,195 (12,686) 20,509 29,388 (10,790) 18,598 Trademarks and trade names 450 (353) 97 450 (295) 155 Total intangible assets, net $ 46,366 $ (21,017) $ 25,349 $ 42,653 $ (18,183) $ 24,470 (1) This table excludes the gross value of fully amortized intangible assets totaling $45.0 million and $43.7 million on December 31, 2023 and 2022, respectively. |
Amortization Expense by Income Statement Caption | Amortization expense by statement of operations caption was as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Cost of sales $ 443 $ 49 $ 27 Selling, general and administrative expenses 4,440 3,969 3,963 Total amortization expense $ 4,883 $ 4,018 $ 3,990 |
Estimated Future Amortization Expense Related to Intangible Assets | Estimated future annual amortization expense related to our intangible assets at December 31, 2023 is as follows: (In thousands) 2024 $ 5,095 2025 4,552 2026 3,830 2027 3,135 2028 2,506 Thereafter 6,231 Total $ 25,349 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease Balances within the Consolidated Balance Sheet | Lease balances within our consolidated balance sheets were as follows: (In thousands) December 31, 2023 December 31, 2022 Assets: Operating lease right-of-use assets $ 18,693 $ 21,599 Liabilities: Other accrued liabilities $ 4,813 $ 5,509 Long-term operating lease obligations 12,560 15,027 Total lease liabilities $ 17,373 $ 20,536 |
Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information | Operating lease expense, including variable and short-term lease costs which were insignificant to the total, operating lease cash flows and supplemental cash flow information were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Cost of sales $ 3,012 $ 2,822 $ 2,508 Selling, general and administrative expenses 4,378 4,474 4,151 Total operating lease expense $ 7,390 $ 7,296 $ 6,659 Operating cash outflows from operating leases $ 7,736 $ 7,427 $ 6,555 Operating lease right-of-use assets obtained in exchange for lease obligations $ 4,360 $ 8,756 $ 7,017 Non-cash release of operating lease obligations (1) $ — $ — $ 654 (1) During the year ended December 31, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020. |
Lease Terms and Discount Rates | The weighted average remaining lease liability term and the weighted average discount rate were as follows: Year Ended December 31, 2023 2022 Weighted average lease liability term (in years) 4.9 5.1 Weighted average discount rate 5.04 % 3.82 % |
Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities | The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at December 31, 2023. The reconciliation excludes short-term leases that are not recorded on the balance sheet. (In thousands) 2024 $ 5,485 2025 4,478 2026 3,442 2027 2,696 2028 1,243 Thereafter 2,532 Total lease payments 19,876 Less: imputed interest (2,503) Total lease liabilities $ 17,373 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Pre-Tax Income (Loss) by Jurisdiction | In 2023, 2022 and 2021, pre-tax income (loss) was attributed to the following jurisdictions: Year Ended December 31, (In thousands) 2023 2022 2021 Domestic operations $ (95,876) $ (69,058) $ (38,024) Foreign operations 3,622 80,451 54,104 Total pre-tax income (loss) $ (92,254) $ 11,393 $ 16,080 |
Provision for Income Taxes | The provision for income taxes charged to operations was as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Current tax expense: U.S. federal $ 23 $ 573 $ 2 State and local 44 73 75 Foreign 7,193 8,523 12,386 Total current 7,260 9,169 12,463 Deferred tax (benefit) expense: U.S. federal (813) 230 584 State and local (126) 36 90 Foreign (337) 1,551 (2,358) Total deferred (1,276) 1,817 (1,684) Total provision for income taxes $ 5,984 $ 10,986 $ 10,779 |
Net Deferred Tax Assets | Net deferred tax assets were comprised of the following: December 31, (In thousands) 2023 2022 Deferred tax assets: Accrued liabilities $ 3,958 $ — Accounts receivable — 5,657 Amortization of intangible assets 9,999 5,977 Capitalized inventory costs 3,369 5,060 Capitalized research & development costs 8,035 4,632 Depreciation 4,058 5,067 Income tax credits 19,615 17,234 Inventory reserves 2,154 2,258 Net operating losses 12,053 3,770 Operating lease obligations 4,112 4,212 Stock-based compensation 4,453 4,288 Total deferred tax assets 71,806 58,155 Deferred tax liabilities: Accrued liabilities — (5,273) Accounts receivable (20) — Right of use assets (4,385) (4,407) Other (2,920) (361) Total deferred tax liabilities (7,325) (10,041) Net deferred tax assets before valuation allowance 64,481 48,114 Less: Valuation allowance (59,686) (44,596) Net deferred tax assets $ 4,795 $ 3,518 |
Reconciliation of Tax Provision at Statutory U.S. Rate to Provision for Income Taxes | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations as a result of the following: Year Ended December 31, (In thousands) 2023 2022 2021 Tax provision at statutory U.S. rate $ (19,373) $ 2,392 $ 3,377 Increase (decrease) in tax provision resulting from: Distribution of previously taxed foreign earnings and profits (9,450) (16,776) — Federal research and development credits (1,043) (715) (1,391) Foreign permanent benefit (1,426) (1,620) (1,137) Foreign tax rate differential 21,794 15,133 (2,647) Foreign undistributed earnings, net of credits 7,198 6,486 6,902 Foreign participation exemption (12,571) — — Goodwill impairment 5,383 — — Liquidation of Cayman subsidiary — — 745 Non-deductible items 594 601 1,198 Non-territorial income (945) (2,323) (2,993) Provision to return (19) (435) (533) Sale of Argentina subsidiary — — 2,084 Sale of intangible asset — (3,385) — State and local taxes, net (2,629) (2,408) (1,435) Stock-based compensation 980 693 (616) Tax rate change 1,648 (640) — Valuation allowance 15,090 12,058 4,632 Withholding tax 1,229 2,188 2,333 Other (476) (263) 260 Tax provision $ 5,984 $ 10,986 $ 10,779 |
Changes to Gross Unrecognized Tax Benefits | Changes to our gross unrecognized tax benefits were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Balance at beginning of period $ 3,150 $ 3,001 $ 3,020 Additions as a result of tax positions taken during the current year 165 149 226 Foreign currency translation — — (13) Settlements — — (232) Balance at end of period $ 3,315 $ 3,150 $ 3,001 |
Accrued Compensation (Tables)
Accrued Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Components of Accrued Compensation | The components of accrued compensation were as follows: December 31, (In thousands) 2023 2022 Accrued bonus $ 2,843 $ 3,348 Accrued commission 602 609 Accrued salary/wages (1) 4,085 4,433 Accrued social insurance (2) 7,082 7,037 Accrued vacation/holiday 3,252 3,300 Other accrued compensation 2,441 2,177 Total accrued compensation $ 20,305 $ 20,904 (1) For the year ended December 31, 2023, accrued severance expenses of $0.1 million related to the manufacturing footprint optimization efforts are included in this amount. See Note 13 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on December 31, 2023 and 2022. The components of other accrued liabilities were as follows: December 31, (In thousands) 2023 2022 Contract liabilities $ 2,697 $ 1,134 Duties 481 470 Expense associated with fulfilled performance obligations 1,092 1,120 Freight and handling fees 1,998 2,497 Interest 438 1,413 Operating lease obligations 4,813 5,509 Product warranty claim costs 522 522 Professional fees 1,558 2,293 Sales and value added taxes 4,194 3,750 Other (1) 3,388 5,426 Total other accrued liabilities $ 21,181 $ 24,134 (1) Includes $0.2 million and $0.6 million at December 31, 2023 and 2022, respectively, associated with the purchase of property, plant and equipment. |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Components of Other Accrued Liabilities | The components of accrued compensation were as follows: December 31, (In thousands) 2023 2022 Accrued bonus $ 2,843 $ 3,348 Accrued commission 602 609 Accrued salary/wages (1) 4,085 4,433 Accrued social insurance (2) 7,082 7,037 Accrued vacation/holiday 3,252 3,300 Other accrued compensation 2,441 2,177 Total accrued compensation $ 20,305 $ 20,904 (1) For the year ended December 31, 2023, accrued severance expenses of $0.1 million related to the manufacturing footprint optimization efforts are included in this amount. See Note 13 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on December 31, 2023 and 2022. The components of other accrued liabilities were as follows: December 31, (In thousands) 2023 2022 Contract liabilities $ 2,697 $ 1,134 Duties 481 470 Expense associated with fulfilled performance obligations 1,092 1,120 Freight and handling fees 1,998 2,497 Interest 438 1,413 Operating lease obligations 4,813 5,509 Product warranty claim costs 522 522 Professional fees 1,558 2,293 Sales and value added taxes 4,194 3,750 Other (1) 3,388 5,426 Total other accrued liabilities $ 21,181 $ 24,134 (1) Includes $0.2 million and $0.6 million at December 31, 2023 and 2022, respectively, associated with the purchase of property, plant and equipment. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in the Liability for Product Warranty Claim Costs | Changes in the liability for product warranty claim costs were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Balance at beginning of period $ 522 $ 1,095 $ 1,721 Accruals for warranties issued during the period — 249 2,943 Settlements (in cash or in kind) during the period — (819) (3,522) Foreign currency translation gain (loss) — (3) (47) Balance at end of period $ 522 $ 522 $ 1,095 |
Restructuring and Related Costs | The restructuring liabilities are included in accrued compensation, accounts payable and other accrued liabilities on our consolidated balance sheets. Restructuring activities for the year ended December 31, 2023 are as follows: Restructuring Costs (In thousands) Total Severance Other Exit Balance at December 31, 2022 $ — $ — $ — Restructuring charges 4,015 3,425 590 Cash payments (3,553) (3,278) (275) Balance at December 31, 2023 $ 462 $ 147 $ 315 Total costs incurred inception to date $ 4,015 $ 3,425 $ 590 Total estimated expense to be incurred after December 31, 2023 $ 62 $ 62 $ — |
Treasury Stock (Tables)
Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Repurchased Shares of Common Stock | Repurchased shares of our common stock were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Open market shares repurchased 100 300 1,151 Stock-based compensation related shares repurchased 65 134 92 Total shares repurchased 165 434 1,243 Cost of open market shares repurchased $ 864 $ 9,437 $ 54,868 Cost of stock-based compensation related shares repurchased 915 3,598 4,796 Total cost of shares repurchased $ 1,779 $ 13,035 $ 59,664 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Year Ended December 31, (In thousands) 2023 2022 2021 Cost of sales $ 125 $ 155 $ 156 Research and development expenses 1,098 1,342 1,253 Selling, general and administrative expenses: Employees 6,980 7,257 6,997 Outside directors 606 1,259 1,563 Total employee and director stock-based compensation expense $ 8,809 $ 10,013 $ 9,969 Income tax benefit $ 1,369 $ 1,660 $ 1,718 |
Assumptions Used and Weighted Average Fair Value of Stock Option Grants | The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: Year Ended December 31, 2023 2022 2021 Weighted average fair value of grants $ 10.83 $ 14.51 $ 23.97 Risk-free interest rate 3.86 % 1.93 % 0.41 % Expected volatility 45.89 % 49.35 % 48.49 % Expected life in years 4.70 4.73 4.62 |
Stock Option Activity | Stock option activity was as follows: 2023 2022 2021 Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at beginning of the year 782 $ 44.16 800 $ 45.55 774 $ 43.01 Granted 235 24.77 139 33.42 80 59.43 Exercised — — $ — (80) 19.25 $ 292 (54) 30.04 $ 931 Forfeited/canceled/expired (116) 46.59 (77) 64.81 — — Outstanding at end of the year (1) 901 $ 38.78 3.67 $ — 782 $ 44.16 3.45 $ — 800 $ 45.55 3.15 $ 3,780 Vested and expected to vest at the end of the year (1) 901 $ 38.78 3.67 $ — 782 $ 44.16 3.45 $ — 800 $ 45.55 3.15 $ 3,780 Exercisable at the end of the year (1) 620 $ 44.06 2.60 $ — 600 $ 45.77 2.61 $ — 656 $ 44.08 2.58 $ 3,608 (1) |
Significant Option Groups Outstanding and Related Weighted Average Exercise Price and Life Information | Significant option groups outstanding at December 31, 2023 and the related weighted average exercise price and life information were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted-Average Weighted-Average Number Weighted-Average $24.77 to $34.56 503 4.79 $ 27.77 227 $ 29.35 $44.95 to $46.17 207 2.60 45.59 207 45.59 $52.85 to $62.70 191 2.38 60.31 186 60.34 901 3.67 $ 38.78 620 $ 44.06 |
Non-Vested Restricted Stock Awards Activity | Non-vested restricted stock award activity was as follows: 2023 2022 2021 Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Non-vested at beginning of the year 376 $ 36.82 310 $ 44.41 374 $ 34.53 Granted 340 14.15 262 31.05 156 56.90 Vested (211) 35.77 (191) 41.09 (211) 36.35 Forfeited (19) 17.72 (5) 43.22 (9) 39.65 Non-vested at end of the year 486 $ 21.66 376 $ 36.82 310 $ 44.41 |
Detailed Information Regarding Active Stock Incentive Plans | Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2023: Name Approval Date Total Shares Remaining Shares Outstanding Shares 2014 Stock Incentive Plan 6/12/2014 1,100,000 — 189,975 2018 Equity and Incentive Compensation Plan (1) 6/4/2018 2,289,479 336,566 1,197,891 336,566 1,387,866 (1) The 2018 Equity and Incentive Compensation Plan was amended in June 2021 to add an additional 1,100,000 shares, as approved by our stockholders. |
Performance-Based Common Stoc_2
Performance-Based Common Stock Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit | The impact to net sales recorded in connection with the warrants and the related income tax benefit was as follows: Year Ended December 31, (in thousands) 2023 2022 2021 Reduction (addition) to net sales (1) $ — $ — $ (686) Income tax benefit $ — $ — $ (171) (1) At December 31, 2021, Comcast did not meet the minimum performance obligations to vest in any portion of the warrants associated with the two-year vesting period ended December 31, 2021. As such, all previously recorded expenses associated with this vesting period were reversed. |
Other Income (Expense), Net a_2
Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net consisted of the following: Year Ended December 31, (In thousands) 2023 2022 2021 Net gain (loss) on foreign currency exchange contracts (1) $ (3,238) $ (1,309) $ 2,903 Net gain (loss) on foreign currency exchange transactions (262) 218 (4,237) Other income (expense) 879 136 777 Other income (expense), net $ (2,621) $ (955) $ (557) (1) This represents the gains (losses) incurred on foreign currency hedging derivatives. See Note 19 for further information concerning our foreign currency exchange contracts. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Earnings (loss) per share was calculated as follows: Year Ended December 31, (In thousands, except per-share amounts) 2023 2022 2021 BASIC Net income (loss) $ (98,238) $ 407 $ 5,301 Weighted-average common shares outstanding 12,855 12,703 13,465 Basic earnings (loss) per share $ (7.64) $ 0.03 $ 0.39 DILUTED Net income (loss) $ (98,238) $ 407 $ 5,301 Weighted-average common shares outstanding for basic 12,855 12,703 13,465 Dilutive effect of stock options, restricted stock and common stock warrants — 76 277 Weighted-average common shares outstanding on a diluted basis 12,855 12,779 13,742 Diluted earnings (loss) per share $ (7.64) $ 0.03 $ 0.39 |
Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share | The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive: Year Ended December 31, (In thousands) 2023 2022 2021 Stock options 900 686 412 Restricted stock awards 440 242 65 Performance-based warrants — 275 206 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total Net Fair Value of Derivatives | The following table sets forth the total net fair value of derivatives: December 31, 2023 December 31, 2022 Fair Value Measurement Using Total Balance Fair Value Measurement Using Total Balance (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Foreign currency exchange contracts $ — $ (83) $ — $ (83) $ — $ 100 $ — $ 100 |
Foreign Currency Exchange Contracts | Details of foreign currency exchange contracts held were as follows: Date Held Currency Position Held Notional Value Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date December 31, 2023 USD/Chinese Yuan Renminbi CNY $ 20.0 7.1181 $ (18) January 5, 2024 December 31, 2023 USD/Euro USD $ 22.0 1.1009 $ (65) January 5, 2024 December 31, 2022 USD/Euro USD $ 26.0 1.0529 $ (428) January 6, 2023 December 31, 2022 USD/Chinese Yuan Renminbi CNY $ 31.0 7.0358 $ 528 January 6, 2023 (1) Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Management's purchase price allocation as of December 31, 2023 was the following: (In thousands) Estimated Lives Fair Value Accounts receivable $ 787 Property, plant and equipment 5 years 3 Customer relationships 6 years 1,340 Developed technology 6 years 440 Trade names 6 years 50 Goodwill (1) 713 Operating lease ROU assets 3 years 149 Other assets 2 Other accrued liabilities (6) Short-term operating lease obligation (48) Deferred revenue (1,539) Long-term operating lease obligation (101) Long-term deferred revenue (851) Cash paid $ 939 (1) Our consolidated goodwill balance was impaired during the year ended December 31, 2023. Please see Note 7 for further information. |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
History of company (in years) | 37 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) extension | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 25, 2022 | |
Accounting Policies [Line Items] | ||||
Accruals for discounts and rebates | $ 10,500 | $ 12,200 | ||
Advertising costs | 600 | 500 | $ 800 | |
Selling, general and administrative expenses | $ 98,490 | 105,292 | 118,846 | |
Dividend yield | 0% | |||
Maturity of time deposits (in years) | 1 year | 1 year | ||
Number of options to extend leases | extension | 2 | |||
Maturity of foreign currency exchange contracts | 9 months | |||
Shipping and Handling | ||||
Accounting Policies [Line Items] | ||||
Selling, general and administrative expenses | $ 8,300 | $ 10,800 | $ 11,800 | |
Minimum | ||||
Accounting Policies [Line Items] | ||||
Vesting period | 1 year | |||
Renewal term of operating leases (in years) | 3 years | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Renewal term of operating leases (in years) | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | Dec. 31, 2023 |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 25 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 33 years |
Tooling and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Tooling and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 8 years |
Leasehold and building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Leasehold and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible Assets (Details) | Dec. 31, 2023 |
Capitalized software development | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 2 years |
Distribution rights | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 10 years |
Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 10 years |
Trademarks and trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 10 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 10 years |
Minimum | Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 5 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 15 years |
Maximum | Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Lives (in years) | 15 years |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Term Deposit - Cash and Cash Equivalents by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 42,751 | $ 66,740 |
North America | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 8,460 | 6,825 |
People's Republic of China ("PRC") | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 11,102 | 32,569 |
Asia (excluding the PRC) | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 2,427 | 1,914 |
Europe | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 8,145 | 13,042 |
South America | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 12,617 | $ 12,390 |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Term Deposit - Narrative (Details) | Dec. 31, 2023 | Jan. 25, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Maturity of time deposits (in years) | 1 year | 1 year |
Revenue and Accounts Receivab_3
Revenue and Accounts Receivable, Net - Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 420,457 | $ 542,751 | $ 601,602 |
Goods and services transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 324,433 | 450,227 | 498,554 |
Goods and services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 96,024 | $ 92,524 | $ 103,048 |
Revenue and Accounts Receivab_4
Revenue and Accounts Receivable, Net - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 420,457 | $ 542,751 | $ 601,602 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 129,528 | 167,501 | 200,136 |
Asia (excluding the PRC) | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 85,347 | 127,702 | 127,140 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 90,221 | 103,993 | 126,551 |
People's Republic of China | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 63,334 | 85,215 | 87,866 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 28,870 | 28,363 | 25,943 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 23,157 | $ 29,977 | $ 33,966 |
Revenue and Accounts Receivab_5
Revenue and Accounts Receivable, Net - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Net sales | $ 420,457 | $ 542,751 | $ 601,602 |
Comcast Corporation | |||
Revenue, Major Customer [Line Items] | |||
Net sales | $ 75,917 | $ 98,361 | |
Comcast Corporation | Customer concentration risk | Revenue from contract with customer benchmark | |||
Revenue, Major Customer [Line Items] | |||
% of Net Sales | 14% | 16.30% | |
Daikin Industries Ltd. | |||
Revenue, Major Customer [Line Items] | |||
Net sales | $ 58,843 | $ 78,413 | $ 70,793 |
Daikin Industries Ltd. | Customer concentration risk | Revenue from contract with customer benchmark | |||
Revenue, Major Customer [Line Items] | |||
% of Net Sales | 14% | 14.40% | 11.80% |
Revenue and Accounts Receivab_6
Revenue and Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||||
Trade receivables, gross | $ 106,182 | $ 108,030 | ||
Allowance for credit losses | (815) | (957) | $ (1,285) | $ (1,412) |
Allowance for sales returns | (532) | (618) | ||
Trade receivables, net | 104,835 | 106,455 | ||
Other | 7,761 | 5,891 | ||
Accounts receivable, net | $ 112,596 | $ 112,346 |
Revenue and Accounts Receivab_7
Revenue and Accounts Receivable, Net - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 957 | $ 1,285 | $ 1,412 |
Additions (reductions) to costs and expenses | 70 | (182) | 0 |
Cash receipts | 0 | 0 | 0 |
Write-offs/Foreign exchange effects | (212) | (146) | (127) |
Balance at end of period | $ 815 | $ 957 | $ 1,285 |
Revenue and Accounts Receivab_8
Revenue and Accounts Receivable, Net - Trade Receivables Associated with Significant Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Revenue, Major Customer [Line Items] | ||
Accounts receivable, net | $ 112,346 | $ 112,596 |
Trade receivables | Comcast Corporation | Customer concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable, net | $ 15,367 | |
Concentration risk percentage | 13.70% |
Revenue and Accounts Receivab_9
Revenue and Accounts Receivable, Net - Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract With Customer, Liability [Roll Forward] | ||
Balance at beginning of period | $ 1,931 | $ 390 |
Contract liabilities acquired | 0 | 2,390 |
Payments received | 6,080 | 4,964 |
Revenue recognized | (4,529) | (5,812) |
Foreign exchange effects | 19 | (1) |
Balance at end of period | $ 3,501 | 1,931 |
Qterics, Inc. | ||
Contract With Customer, Liability [Roll Forward] | ||
Contract liabilities acquired | $ 2,400 |
Inventories and Significant S_3
Inventories and Significant Suppliers - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 32,794 | $ 58,759 |
Components | 11,061 | 25,226 |
Work in process | 3,827 | 2,616 |
Finished goods | 40,591 | 53,580 |
Inventories | $ 88,273 | $ 140,181 |
Inventories and Significant S_4
Inventories and Significant Suppliers - Purchases from Significant Suppliers (Details) - Supplier Concentration Risk - Inventory Purchases - Qorvo International Pte Ltd. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Purchases from significant supplier | $ 33,293 | $ 38,712 |
Concentration risk percentage | 11.50% | 11.80% |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net - Summary of Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 205,232 | $ 223,377 |
Accumulated depreciation | (163,301) | (170,474) |
Property, plant and equipment, net, excluding construction in progress | 41,931 | 52,903 |
Construction in progress | 2,688 | 9,888 |
Total property, plant, and equipment, net | 44,619 | 62,791 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17,806 | 18,291 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,679 | 9,344 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,598 | 3,529 |
Leasehold and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 33,049 | 39,761 |
Construction in progress | 623 | 475 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 82,302 | 96,947 |
Construction in progress | 738 | 2,282 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 28,074 | 23,607 |
Construction in progress | 11 | 4,862 |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 30,724 | 31,898 |
Construction in progress | $ 1,197 | $ 1,827 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 18 | $ 19.9 | $ 22.8 |
Impairment associated with closure and sale of factory | 7.7 | ||
Impairment of long-lived assets | 0.2 | $ 2.9 | $ 3.3 |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | |
Cost of sales | |||
Property, Plant and Equipment [Line Items] | |||
Impairment associated with closure and sale of factory | 7.6 | ||
Selling, general and administrative expenses | |||
Property, Plant and Equipment [Line Items] | |||
Impairment associated with closure and sale of factory | $ 0.1 |
Property, Plant, and Equipmen_5
Property, Plant, and Equipment, Net - Construction in Progress (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 2,688 | $ 9,888 |
Leasehold and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 623 | 475 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 738 | 2,282 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 11 | 4,862 |
Tooling and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 1,197 | 1,827 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 119 | $ 442 |
Property, Plant, and Equipmen_6
Property, Plant, and Equipment, Net - Long-Lived Tangible Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total long-lived tangible assets | $ 63,312 | $ 84,390 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived tangible assets | 13,245 | 16,427 |
People's Republic of China | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived tangible assets | 26,679 | 42,893 |
Mexico | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived tangible assets | 9,227 | 14,402 |
Vietnam | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived tangible assets | 10,089 | 6,923 |
All other countries | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived tangible assets | $ 4,072 | $ 3,745 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Beginning Balance | $ 49,085 | $ 48,463 | |
Goodwill acquired during the period | 713 | ||
Goodwill impairment | (49,075) | 0 | $ 0 |
Foreign exchange effects | (10) | (91) | |
Ending Balance | 0 | 49,085 | $ 48,463 |
Qterics, Inc. | |||
Goodwill [Line Items] | |||
Goodwill acquired during the period | $ 700 | ||
Ending Balance | $ 713 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 46,366 | $ 42,653 |
Accumulated amortization | (21,017) | (18,183) |
Total | 25,349 | 24,470 |
Gross value of fully amortized intangible assets | 45,000 | 43,700 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 2,161 | 1,647 |
Accumulated amortization | (421) | (44) |
Total | 1,740 | 1,603 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 6,340 | 6,340 |
Accumulated amortization | (3,803) | (3,080) |
Total | 2,537 | 3,260 |
Developed and core technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 4,220 | 4,520 |
Accumulated amortization | (3,754) | (3,693) |
Total | 466 | 827 |
Distribution rights | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 0 | 308 |
Accumulated amortization | 0 | (281) |
Total | 0 | 27 |
Patents | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 33,195 | 29,388 |
Accumulated amortization | (12,686) | (10,790) |
Total | 20,509 | 18,598 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 450 | 450 |
Accumulated amortization | (353) | (295) |
Total | $ 97 | $ 155 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 4,883 | $ 4,018 | $ 3,990 |
Cost of sales | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | 443 | 49 | 27 |
Selling, general and administrative expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 4,440 | $ 3,969 | $ 3,963 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 5,095 | |
2025 | 4,552 | |
2026 | 3,830 | |
2027 | 3,135 | |
2028 | 2,506 | |
Thereafter | 6,231 | |
Total | $ 25,349 | $ 24,470 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 49,075 | $ 0 | $ 0 |
Weighted Average | |||
Goodwill [Line Items] | |||
Amortization period (in years) | 6 years 6 months |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Leased Assets [Line Items] | ||
Increase (decrease) in operating lease right-of-use asset | $ (1,200) | |
Increase (decrease) in operating lease liability | (1,300) | |
Operating lease right-of-use assets | $ 18,693 | $ 21,599 |
Prepaid lease assets, remaining amortization period (in years) | 4 years 10 months 24 days | 5 years 1 month 6 days |
Net book value of asset | $ 44,619 | $ 62,791 |
Yangzhou | ||
Operating Leased Assets [Line Items] | ||
Operating lease right-of-use assets | $ 2,200 | |
Prepaid lease assets, remaining amortization period (in years) | 35 years | |
Yangzhou | Buildings on prepaid land | ||
Operating Leased Assets [Line Items] | ||
Net book value of asset | $ 12,300 | |
Remaining depreciable period of asset (in years) | 16 years | |
Property subject to rent escalations | Maximum | ||
Operating Leased Assets [Line Items] | ||
Lessee term of contract (in years) | 37 years |
Leases - Lease Balances within
Leases - Lease Balances within the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease right-of-use assets | $ 18,693 | $ 21,599 |
Liabilities: | ||
Other accrued liabilities | 4,813 | 5,509 |
Long-term operating lease obligations | 12,560 | 15,027 |
Total lease liabilities | $ 17,373 | $ 20,536 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Leases - Operating Lease Expens
Leases - Operating Lease Expense, Operating lease Cash Flows and Supplemental Cash flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Total operating lease expense | $ 7,390 | $ 7,296 | $ 6,659 |
Operating cash outflows from operating leases | 7,736 | 7,427 | 6,555 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 4,360 | 8,756 | 7,017 |
Non-cash release of operating lease obligations | 0 | 0 | 654 |
Cost of sales | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease expense | 3,012 | 2,822 | 2,508 |
Selling, general and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease expense | $ 4,378 | $ 4,474 | $ 4,151 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average lease liability term (in years) | 4 years 10 months 24 days | 5 years 1 month 6 days |
Weighted average discount rate | 5.04% | 3.82% |
Leases - Reconciliation of the
Leases - Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 5,485 | |
2025 | 4,478 | |
2026 | 3,442 | |
2027 | 2,696 | |
2028 | 1,243 | |
Thereafter | 2,532 | |
Total lease payments | 19,876 | |
Less: imputed interest | (2,503) | |
Total lease liabilities | $ 17,373 | $ 20,536 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | 11 Months Ended | 12 Months Ended | |||
Mar. 13, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||
Amount outstanding under line of credit | $ 55,000,000 | $ 88,000,000 | |||
Interest expense on borrowings | $ 6,000,000 | $ 3,300,000 | $ 900,000 | ||
Line of credit | US Bank | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate | 8.06% | 5.62% | |||
Commitment fees | $ 0 | ||||
Line of credit | US Bank | Subsequent event | |||||
Line of Credit Facility [Line Items] | |||||
Facility fee (in percent) | 0.25% | ||||
Line of credit | US Bank | Base rate | Forecast | Subsequent event | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 0.75% | ||||
Line of credit | US Bank | Base rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 0% | ||||
Line of credit | US Bank | Base rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 0.75% | ||||
Line of credit | US Bank | Secured Overnight Financing Rate (SOFR) | Subsequent event | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 3% | ||||
Line of credit | US Bank | Secured Overnight Financing Rate (SOFR) | Forecast | Subsequent event | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 2.75% | ||||
Line of credit | US Bank | Secured Overnight Financing Rate (SOFR) | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 2% | ||||
Line of credit | US Bank | Secured Overnight Financing Rate (SOFR) | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 2.75% | ||||
Line of credit | Second Amended Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 125,000,000 | ||||
Line of credit | Second Amended Credit Agreement | Minimum | Subsequent event | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 85,000,000 | ||||
Line of credit | Second Amended Credit Agreement | Maximum | Subsequent event | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 100,000,000 | ||||
Letter of credit | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit outstanding amount | $ 0 |
Income Taxes - Pre-Tax Income (
Income Taxes - Pre-Tax Income (Loss) by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ (95,876) | $ (69,058) | $ (38,024) |
Foreign operations | 3,622 | 80,451 | 54,104 |
Income (loss) before provision for income taxes | $ (92,254) | $ 11,393 | $ 16,080 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax expense: | |||
U.S. federal | $ 23 | $ 573 | $ 2 |
State and local | 44 | 73 | 75 |
Foreign | 7,193 | 8,523 | 12,386 |
Total current | 7,260 | 9,169 | 12,463 |
Deferred tax (benefit) expense: | |||
U.S. federal | (813) | 230 | 584 |
State and local | (126) | 36 | 90 |
Foreign | (337) | 1,551 | (2,358) |
Total deferred | (1,276) | 1,817 | (1,684) |
Total provision for income taxes | $ 5,984 | $ 10,986 | $ 10,779 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accrued liabilities | $ 3,958 | $ 0 |
Accounts receivable | 0 | 5,657 |
Amortization of intangible assets | 9,999 | 5,977 |
Capitalized inventory costs | 3,369 | 5,060 |
Capitalized research & development costs | 8,035 | 4,632 |
Depreciation | 4,058 | 5,067 |
Income tax credits | 19,615 | 17,234 |
Inventory reserves | 2,154 | 2,258 |
Net operating losses | 12,053 | 3,770 |
Operating lease obligations | 4,112 | 4,212 |
Stock-based compensation | 4,453 | 4,288 |
Total deferred tax assets | 71,806 | 58,155 |
Deferred tax liabilities: | ||
Accrued liabilities | 0 | (5,273) |
Accounts receivable | (20) | 0 |
Right of use assets | (4,385) | (4,407) |
Other | (2,920) | (361) |
Total deferred tax liabilities | (7,325) | (10,041) |
Net deferred tax assets before valuation allowance | 64,481 | 48,114 |
Less: Valuation allowance | (59,686) | (44,596) |
Net deferred tax assets | $ 4,795 | $ 3,518 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Provision at Statutory U.S. Rate to Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Tax provision at statutory U.S. rate | $ (19,373) | $ 2,392 | $ 3,377 |
Increase (decrease) in tax provision resulting from: | |||
Distribution of previously taxed foreign earnings and profits | (9,450) | (16,776) | 0 |
Federal research and development credits | (1,043) | (715) | (1,391) |
Foreign permanent benefit | (1,426) | (1,620) | (1,137) |
Foreign tax rate differential | 21,794 | 15,133 | (2,647) |
Foreign undistributed earnings, net of credits | 7,198 | 6,486 | 6,902 |
Foreign participation exemption | (12,571) | 0 | 0 |
Goodwill impairment | 5,383 | 0 | 0 |
Liquidation of Cayman subsidiary | 0 | 0 | 745 |
Non-deductible items | 594 | 601 | 1,198 |
Non-territorial income | (945) | (2,323) | (2,993) |
Provision to return | (19) | (435) | (533) |
Sale of Argentina subsidiary | 0 | 0 | 2,084 |
Sale of intangible asset | 0 | (3,385) | 0 |
State and local taxes, net | (2,629) | (2,408) | (1,435) |
Stock-based compensation | 980 | 693 | (616) |
Tax rate change | 1,648 | (640) | 0 |
Valuation allowance | 15,090 | 12,058 | 4,632 |
Withholding tax | 1,229 | 2,188 | 2,333 |
Other | (476) | (263) | 260 |
Total provision for income taxes | $ 5,984 | $ 10,986 | $ 10,779 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ 59,686,000 | $ 44,596,000 | |
Increase in valuation allowance | 15,100,000 | 12,100,000 | |
Unrecognized tax benefits including interest and penalties | 3,400,000 | 3,200,000 | |
Interest and penalties | 0 | 0 | $ 0 |
Unrecognized tax benefits that would impact effective tax rate | 3,300,000 | 3,200,000 | 3,000,000 |
Deferred tax liability related to state tax liabilities on future distributions | 400,000 | $ 500,000 | $ 900,000 |
Federal | |||
Income Taxes [Line Items] | |||
Net operating losses | 19,800,000 | ||
Valuation allowance | 34,700,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating losses | 76,700,000 | ||
Valuation allowance | 22,800,000 | ||
Foreign | |||
Income Taxes [Line Items] | |||
Net operating losses | 10,300,000 | ||
Research and experimentation | Federal | |||
Income Taxes [Line Items] | |||
Income tax credit carryforwards | 5,200,000 | ||
Research and experimentation | State | |||
Income Taxes [Line Items] | |||
Income tax credit carryforwards | $ 13,500,000 |
Income Taxes - Changes to Gross
Income Taxes - Changes to Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes to gross unrecognized tax benefits: | |||
Balance at beginning of period | $ 3,150 | $ 3,001 | $ 3,020 |
Additions as a result of tax positions taken during the current year | 165 | 149 | 226 |
Foreign currency translation | 0 | 0 | |
Foreign currency translation | (13) | ||
Settlements | 0 | 0 | (232) |
Balance at end of period | $ 3,315 | $ 3,150 | $ 3,001 |
Accrued Compensation (Details)
Accrued Compensation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Components of Accrued Compensation | ||
Accrued bonus | $ 2,843 | $ 3,348 |
Accrued commission | 602 | 609 |
Accrued salary/wages | 4,085 | 4,433 |
Accrued social insurance | 7,082 | 7,037 |
Accrued vacation/holiday | 3,252 | 3,300 |
Other accrued compensation | 2,441 | 2,177 |
Total accrued compensation | 20,305 | $ 20,904 |
Accrued severance, current | $ 100 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Contract liabilities | $ 2,697 | $ 1,134 |
Duties | 481 | 470 |
Expense associated with fulfilled performance obligations | 1,092 | 1,120 |
Freight and handling fees | 1,998 | 2,497 |
Interest | 438 | 1,413 |
Operating lease obligations | 4,813 | 5,509 |
Product warranty claim costs | 522 | 522 |
Professional fees | 1,558 | 2,293 |
Sales and value added taxes | 4,194 | 3,750 |
Other | 3,388 | 5,426 |
Total other accrued liabilities | 21,181 | 24,134 |
Accrued property, plant and equipment purchases | $ 200 | $ 600 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in the Liability for Product Warranty Claim Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in the liability for product warranty claim costs | |||
Balance at beginning of period | $ 522 | $ 1,095 | $ 1,721 |
Accruals for warranties issued during the period | 0 | 249 | 2,943 |
Settlements (in cash or in kind) during the period | 0 | (819) | (3,522) |
Foreign currency translation gain (loss) | 0 | (3) | (47) |
Balance at end of period | $ 522 | $ 522 | $ 1,095 |
Commitments and Contingencies_2
Commitments and Contingencies - Defined Benefit Plan (Details) - India subsidiary | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of employees eligible for benefits | 56% |
Minimum service period of employees to be eligible under plan | 5 years |
Number of days salary payable under termination, resignation, or retirement | 15 days |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Jan. 23, 2024 CNY (¥) | May 10, 2021 patent customer | Apr. 08, 2021 patent | Apr. 09, 2020 patent | Sep. 05, 2018 patent | Dec. 31, 2022 patent | Dec. 31, 2023 USD ($) patent inter_partes_review | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Contingencies [Line Items] | |||||||||
Factory restructuring charges | $ | $ 4,015 | $ 0 | $ 0 | ||||||
Restructuring and Related Cost, Expected Cost | $ | $ 4,100 | ||||||||
Number of IPR requests denied | inter_partes_review | 14 | ||||||||
Number of IPR requests granted | inter_partes_review | 12 | ||||||||
Number of patents subject to inter partes review (IPR) | 2 | ||||||||
Number of customer with a filed complaint | customer | 2 | ||||||||
Voting threshold for business combinations (in percent) | 0.6667 | ||||||||
Subsequent event | |||||||||
Contingencies [Line Items] | |||||||||
Damages sought | ¥ | ¥ 35 | ||||||||
India subsidiary | |||||||||
Contingencies [Line Items] | |||||||||
Percentage of employees eligible for benefits | 56% | ||||||||
Minimum service period of employees to be eligible under plan | 5 years | ||||||||
Number of days salary payable under termination, resignation, or retirement | 15 days | ||||||||
Roku lawsuit | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 2 | ||||||||
Roku lawsuit | Pending litigation | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 9 | ||||||||
Number of patent families | 4 | ||||||||
Roku, TCL, Hisense, and Funai Patent Infringement - ITC Matter | Pending litigation | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 5 | ||||||||
TLC Hisense and Funai - ITC Matter | Pending litigation | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 6 | ||||||||
Roku- ITC Matter | Pending litigation | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 2 | 2 | |||||||
Patents found not infringed | 1 | ||||||||
Employee Severance | |||||||||
Contingencies [Line Items] | |||||||||
Factory restructuring charges | $ | $ 3,425 | ||||||||
Equipment Moving Costs | |||||||||
Contingencies [Line Items] | |||||||||
Factory restructuring charges | $ | $ 600 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2022 | $ 0 | ||
Restructuring charges | 4,015 | $ 0 | $ 0 |
Cash payments | (3,553) | ||
Balance at December 31, 2023 | 462 | 0 | |
Total costs incurred inception to date | 4,015 | ||
Total estimated expense to be incurred after December 31, 2023 | 62 | ||
Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2022 | 0 | ||
Restructuring charges | 3,425 | ||
Cash payments | (3,278) | ||
Balance at December 31, 2023 | 147 | 0 | |
Total costs incurred inception to date | 3,425 | ||
Total estimated expense to be incurred after December 31, 2023 | 62 | ||
Other Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2022 | 0 | ||
Restructuring charges | 590 | ||
Cash payments | (275) | ||
Balance at December 31, 2023 | 315 | $ 0 | |
Total costs incurred inception to date | 590 | ||
Total estimated expense to be incurred after December 31, 2023 | $ 0 |
Treasury Stock - Narrative (Det
Treasury Stock - Narrative (Details) - October 2023 Program - shares | Dec. 31, 2023 | Nov. 07, 2023 |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares authorized to be repurchased (in shares) | 1,000,000 | |
Remaining number of shares authorized to be repurchased (in shares) | 900,000 |
Treasury Stock - Repurchased Sh
Treasury Stock - Repurchased Shares of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total shares repurchased (in shares) | 165 | 434 | 1,243 |
Total cost of shares repurchased | $ 1,779 | $ 13,035 | $ 59,664 |
Open market shares repurchased | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total shares repurchased (in shares) | 100 | 300 | 1,151 |
Total cost of shares repurchased | $ 864 | $ 9,437 | $ 54,868 |
Stock-based compensation related shares repurchased | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total shares repurchased (in shares) | 65 | 134 | 92 |
Total cost of shares repurchased | $ 915 | $ 3,598 | $ 4,796 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total employee and director stock-based compensation expense | $ 8,809 | $ 10,013 | $ 9,969 |
Income tax benefit | 1,369 | 1,660 | 1,718 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total employee and director stock-based compensation expense | 125 | 155 | 156 |
Research and development expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total employee and director stock-based compensation expense | 1,098 | 1,342 | 1,253 |
Selling, general and administrative expenses | Employees | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total employee and director stock-based compensation expense | 6,980 | 7,257 | 6,997 |
Selling, general and administrative expenses | Outside directors | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total employee and director stock-based compensation expense | $ 606 | $ 1,259 | $ 1,563 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used and Weighted Average Fair Value of Stock Option Grants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Weighted average fair value of grants (in dollars per share) | $ 10.83 | $ 14.51 | $ 23.97 |
Risk-free interest rate | 3.86% | 1.93% | 0.41% |
Expected volatility | 45.89% | 49.35% | 48.49% |
Expected life in years | 4 years 8 months 12 days | 4 years 8 months 23 days | 4 years 7 months 13 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Options | |||
Outstanding at beginning of the year (in shares) | 782 | 800 | 774 |
Granted (in shares) | 235 | 139 | 80 |
Exercised (in shares) | 0 | (80) | (54) |
Forfeited/canceled/expired (in shares) | (116) | (77) | 0 |
Outstanding at end of the year (in shares) | 901 | 782 | 800 |
Vested and expected to vest at the end of the year (in shares) | 901 | 782 | 800 |
Exercisable at the end of the year (in shares) | 620 | 600 | 656 |
Weighted-Average Exercise Price | |||
Outstanding at beginning of the year (in dollars per share) | $ 44.16 | $ 45.55 | $ 43.01 |
Granted (in dollars per share) | 24.77 | 33.42 | 59.43 |
Exercised (in dollars per share) | 0 | 19.25 | 30.04 |
Forfeited/canceled/expired (in dollars per share) | 46.59 | 64.81 | 0 |
Outstanding at end of the year (in dollars per share) | 38.78 | 44.16 | 45.55 |
Vested and expected to vest at the end of the year (in dollars per share) | 38.78 | 44.16 | 45.55 |
Exercisable at the end of the year (in dollars per share) | $ 44.06 | $ 45.77 | $ 44.08 |
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | |||
Outstanding at end of the year | 3 years 8 months 1 day | 3 years 5 months 12 days | 3 years 1 month 24 days |
Vested and expected to vest at the end of the year | 3 years 8 months 1 day | 3 years 5 months 12 days | 3 years 1 month 24 days |
Exercisable at the end of the year | 2 years 7 months 6 days | 2 years 7 months 9 days | 2 years 6 months 29 days |
Exercised | $ 0 | $ 292 | $ 931 |
Outstanding at end of the year | 0 | 0 | 3,780 |
Vested and expected to vest at the end of the year | 0 | 0 | 3,780 |
Exercisable at the end of the year | $ 0 | $ 0 | $ 3,608 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock options exercised | $ 0 | $ 0 | $ 1,000,000 | |
Value of shares withheld in lieu of receiving cash | 1,500,000 | 600,000 | ||
Tax benefit from stock options exercised | $ 100,000 | $ 200,000 | ||
Restricted stock granted (in shares) | 340,000 | 262,000 | 156,000 | |
Term of plans / awards | 10 years | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized pre-tax stock-based compensation expense | $ 2,400,000 | |||
Unrecognized pre-tax stock-based compensation expense, period for recognition | 1 year 9 months 18 days | |||
Term of plans / awards | 10 years | |||
Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Non-vested restricted stock award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized pre-tax stock-based compensation expense | $ 6,400,000 | |||
Unrecognized pre-tax stock-based compensation expense, period for recognition | 1 year 7 months 6 days | |||
Non-vested restricted stock award | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Non-vested restricted stock award | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock appreciation rights and performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted to date (in shares) | 0 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Certain executive employees | Non-vested restricted stock award | Subsequent event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted (in shares) | 116,000 | |||
Vesting period | 3 years | |||
Grant date fair value | $ 1,000,000 | |||
Certain executive employees | Non-vested restricted stock award | Vesting on February 12, 2021 | Subsequent event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights percentage | 33.33% | |||
Certain executive employees | Non-vested restricted stock award | Vesting quarterly thereafter | Subsequent event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights percentage | 8.33% | |||
Certain executive employees | Performance Shares | Subsequent event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted (in shares) | 116,001 | |||
Vesting period | 3 years |
Stock-Based Compensation - Sign
Stock-Based Compensation - Significant Option Groups Outstanding and Related Weighted Average Exercise Price and Life Information (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options Outstanding | ||||
Number outstanding (in shares) | 901 | 782 | 800 | 774 |
Weighted-average remaining contractual term (in years) | 3 years 8 months 1 day | 3 years 5 months 12 days | 3 years 1 month 24 days | |
Weighted average exercise price (in dollars per share) | $ 38.78 | $ 44.16 | $ 45.55 | $ 43.01 |
Options Exercisable | ||||
Number exercisable (in shares) | 620 | 600 | 656 | |
Weighted-average exercise price (in dollars per share) | $ 44.06 | $ 45.77 | $ 44.08 | |
Exercise price range 1 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of exercise prices, lower range limit (in dollars per share) | 24.77 | |||
Range of exercise prices, upper range limit (in dollars per share) | $ 34.56 | |||
Options Outstanding | ||||
Number outstanding (in shares) | 503 | |||
Weighted-average remaining contractual term (in years) | 4 years 9 months 14 days | |||
Weighted average exercise price (in dollars per share) | $ 27.77 | |||
Options Exercisable | ||||
Number exercisable (in shares) | 227 | |||
Weighted-average exercise price (in dollars per share) | $ 29.35 | |||
Exercise price range 2 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of exercise prices, lower range limit (in dollars per share) | 44.95 | |||
Range of exercise prices, upper range limit (in dollars per share) | $ 46.17 | |||
Options Outstanding | ||||
Number outstanding (in shares) | 207 | |||
Weighted-average remaining contractual term (in years) | 2 years 7 months 6 days | |||
Weighted average exercise price (in dollars per share) | $ 45.59 | |||
Options Exercisable | ||||
Number exercisable (in shares) | 207 | |||
Weighted-average exercise price (in dollars per share) | $ 45.59 | |||
Exercise price range 3 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of exercise prices, lower range limit (in dollars per share) | 52.85 | |||
Range of exercise prices, upper range limit (in dollars per share) | $ 62.70 | |||
Options Outstanding | ||||
Number outstanding (in shares) | 191 | |||
Weighted-average remaining contractual term (in years) | 2 years 4 months 17 days | |||
Weighted average exercise price (in dollars per share) | $ 60.31 | |||
Options Exercisable | ||||
Number exercisable (in shares) | 186 | |||
Weighted-average exercise price (in dollars per share) | $ 60.34 |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Vested Restricted Stock Awards Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares (in 000's) | |||
Non-vested at beginning of period (in shares) | 376 | 310 | 374 |
Granted (in shares) | 340 | 262 | 156 |
Vested (in shares) | (211) | (191) | (211) |
Forfeited (in shares) | (19) | (5) | (9) |
Non-vested at end of period (in shares) | 486 | 376 | 310 |
Weighted-Average Grant Date Fair Value | |||
Non-vested at beginning of the year (in dollars per share) | $ 36.82 | $ 44.41 | $ 34.53 |
Granted (in dollars per share) | 14.15 | 31.05 | 56.90 |
Vested (in dollars per share) | 35.77 | 41.09 | 36.35 |
Forfeited (in dollars per share) | 17.72 | 43.22 | 39.65 |
Non-vested at end of the year (in dollars per share) | $ 21.66 | $ 36.82 | $ 44.41 |
Stock-Based Compensation - Deta
Stock-Based Compensation - Detailed Information Regarding Active Stock Incentive Plans (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining shares available for grant under the plan (in shares) | 336,566 |
Outstanding shares granted under the plan (in shares) | 1,387,866 |
2014 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares available for grant under the plan (in shares) | 1,100,000 |
Remaining shares available for grant under the plan (in shares) | 0 |
Outstanding shares granted under the plan (in shares) | 189,975 |
2018 Equity and Incentive Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares available for grant under the plan (in shares) | 2,289,479 |
Remaining shares available for grant under the plan (in shares) | 336,566 |
Outstanding shares granted under the plan (in shares) | 1,197,891 |
Number of additional shares authorized (in shares) | 1,100,000 |
Performance-Based Common Stoc_3
Performance-Based Common Stock Warrants - Narrative (Details) - Common stock purchase warrants - $ / shares | Jan. 01, 2023 | Mar. 09, 2016 |
Class of Warrant or Right [Line Items] | ||
Exercise price of warrants (in dollars per share) | $ 54.55 | |
Number of shares called by warrants (in shares) | 275,000 |
Performance-Based Common Stoc_4
Performance-Based Common Stock Warrants - Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | |||
Term of successive vesting periods | 2 years | ||
Performance-based warrants | |||
Class of Warrant or Right [Line Items] | |||
Reduction (addition) to net sales | $ 0 | $ 0 | $ (686) |
Income tax benefit | $ 0 | $ 0 | $ (171) |
Other Income (Expense), Net a_3
Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Net gain (loss) on foreign currency exchange contracts | $ (3,238) | $ (1,309) | $ 2,903 |
Net gain (loss) on foreign currency exchange transactions | (262) | 218 | (4,237) |
Other income (expense) | 879 | 136 | 777 |
Other income (expense), net | $ (2,621) | $ (955) | $ (557) |
Other Income (Expense), Net a_4
Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 07, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | ||||
Loss on disposition of business | $ 6,100 | $ 0 | $ 0 | $ 6,050 |
Earnings (Loss) Per Share - Cal
Earnings (Loss) Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
BASIC | |||
Net income (loss) | $ (98,238) | $ 407 | $ 5,301 |
Weighted-average common shares outstanding (in shares) | 12,855 | 12,703 | 13,465 |
Basic earnings (loss) per share (in dollars per share) | $ (7.64) | $ 0.03 | $ 0.39 |
DILUTED | |||
Net income (loss) | $ (98,238) | $ 407 | $ 5,301 |
Weighted-average common shares outstanding (in shares) | 12,855 | 12,703 | 13,465 |
Dilutive effect of stock options, restricted stock and common stock warrants (in shares) | 0 | 76 | 277 |
Weighted-average common shares outstanding on a diluted basis (in shares) | 12,855 | 12,779 | 13,742 |
Diluted earnings (loss) per share (in dollars per share) | $ (7.64) | $ 0.03 | $ 0.39 |
Earnings (Loss) Per Share - Sec
Earnings (Loss) Per Share - Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per common share (in shares) | 900 | 686 | 412 |
Restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per common share (in shares) | 440 | 242 | 65 |
Performance-based warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per common share (in shares) | 0 | 275 | 206 |
Derivatives - Total Net Fair Va
Derivatives - Total Net Fair Value of Derivatives (Details) - Foreign currency exchange contracts - Measured on a recurring basis - Not designated as hedging instrument - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total Balance | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ (83) | $ 100 |
Level 1 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 0 | 0 |
Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | (83) | 100 |
Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 0 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) on foreign currency exchange contracts | $ (3,238) | $ (1,309) | $ 2,903 |
Not designated as hedging instrument | Foreign currency exchange contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) on foreign currency exchange contracts | $ (3,200) | $ (1,300) | $ 2,900 |
Derivatives - Foreign Currency
Derivatives - Foreign Currency Exchange Contracts (Details) - Not designated as hedging instrument $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) $ / ¥ $ / € | Dec. 31, 2022 USD ($) $ / ¥ $ / € | |
USD/Euro | ||
Derivative [Line Items] | ||
Notional value | $ 22,000 | $ 26,000 |
Forward Rate | $ / ¥ | 1.1009 | 1.0529 |
Unrealized gain (loss) recorded at balance sheet date | $ (65) | $ (428) |
USD/Chinese Yuan Renminbi | ||
Derivative [Line Items] | ||
Notional value | $ 20,000 | $ 31,000 |
Forward Rate | $ / € | 7.1181 | 7.0358 |
Unrealized gain (loss) recorded at balance sheet date | $ (18) | $ 528 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Percent of employer matching contribution (in percent) | 50% | ||
Maximum percent of annual employer matched contribution per employee (in percent) | 15% | ||
Company contributions expense | $ 1.3 | $ 1.2 | $ 1.1 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - Qterics, Inc. - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | |
Feb. 17, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 900 | ||
Net sales | $ 2,100 | $ 2,100 | |
Net losses | $ 145 | $ 16 |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 0 | $ 49,085 | $ 48,463 |
Qterics, Inc. | |||
Business Acquisition [Line Items] | |||
Estimated Lives, Property, plant and equipment (in years) | 5 years | ||
Term of contract, Operating lease ROU assets (in years) | 3 years | ||
Accounts receivable | $ 787 | ||
Property, plant and equipment | 3 | ||
Goodwill | 713 | ||
Operating lease ROU assets | 149 | ||
Other assets | 2 | ||
Other accrued liabilities | (6) | ||
Short-term operating lease obligation | (48) | ||
Deferred revenue | (1,539) | ||
Long-term operating lease obligation | (101) | ||
Long-term deferred revenue | (851) | ||
Cash paid | $ 939 | ||
Qterics, Inc. | Customer relationships | |||
Business Acquisition [Line Items] | |||
Estimated Lives (in years) | 6 years | ||
Finite lived intangible assets | $ 1,340 | ||
Qterics, Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Estimated Lives (in years) | 6 years | ||
Finite lived intangible assets | $ 440 | ||
Qterics, Inc. | Trade names | |||
Business Acquisition [Line Items] | |||
Estimated Lives (in years) | 6 years | ||
Finite lived intangible assets | $ 50 |