Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 03, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NVTL | ||
Entity Registrant Name | NOVATEL WIRELESS INC | ||
Entity Central Index Key | 1022652 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 45,939,859 | ||
Entity Public Float | $63,195,226 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $17,853 | $2,911 |
Marketable securities | 0 | 16,612 |
Restricted marketable securities | 0 | 2,566 |
Accounts receivable, net of allowance for doubtful accounts of $217 in 2014 and $2,449 in 2013 | 24,213 | 39,985 |
Inventories | 37,803 | 27,793 |
Prepaid expenses and other | 7,912 | 5,762 |
Total current assets | 87,781 | 95,629 |
Property and equipment | 5,279 | 9,901 |
Marketable securities | 0 | 3,443 |
Intangible assets, net of accumulated amortization of $14,050 in 2014 and $12,983 in 2013 | 1,493 | 2,131 |
Other assets | 467 | 361 |
Total assets | 95,020 | 111,465 |
Current liabilities: | ||
Accounts payable | 34,540 | 24,538 |
Accrued expenses | 23,844 | 23,271 |
Current portion of shareholder litigation | 0 | 4,326 |
Short-term margin loan facility | 0 | 2,566 |
Total current liabilities | 58,384 | 54,701 |
Revolving credit facility | 5,158 | 0 |
Other long-term liabilities | 932 | 1,848 |
Non-current portion of shareholder litigation | 0 | 10,000 |
Total liabilities | 64,474 | 66,549 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.001; 2,000 shares authorized and none outstanding | 0 | 0 |
Common stock, par value $0.001; 100,000 shares authorized, 45,742 and 34,097 shares issued and outstanding at December 31, 2014 and 2013, respectively | 46 | 34 |
Additional paid-in capital | 466,665 | 441,368 |
Accumulated other comprehensive income | 0 | 5 |
Accumulated deficit | -411,165 | -371,491 |
Stockholders' equity before treasury stock | 55,546 | 69,916 |
Treasury stock at cost; 2,436 common shares at December 31, 2014 and 2013 | -25,000 | -25,000 |
Total stockholders’ equity | 30,546 | 44,916 |
Total liabilities and stockholders’ equity | $95,020 | $111,465 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $217 | $2,449 |
Intangible assets, net of accumulated amortization | $14,050 | $12,983 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock shares issued at par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 45,742,000 | 34,097,000 |
Common stock, shares outstanding | 45,742,000 | 34,097,000 |
Treasury stock, shares | 2,436,000 | 2,436,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net revenues | $185,245 | $335,053 | $344,288 |
Cost of net revenues | 148,198 | 266,759 | 271,845 |
Gross profit | 37,047 | 68,294 | 72,443 |
Operating costs and expenses: | |||
Research and development | 34,314 | 48,246 | 60,422 |
Sales and marketing | 13,792 | 20,898 | 27,501 |
General and administrative | 15,402 | 24,179 | 22,668 |
Goodwill and intangible assets impairment | 0 | 0 | 49,521 |
Amortization of purchased intangible assets | 562 | 562 | 1,074 |
Shareholder litigation loss | 790 | 14,326 | 0 |
Restructuring charges | 7,760 | 3,304 | 0 |
Total operating costs and expenses | 72,620 | 111,515 | 161,186 |
Operating loss | -35,573 | -43,221 | -88,743 |
Other income (expense): | |||
Change in fair value of warrant liability | -3,280 | 0 | 0 |
Interest income (expense), net | -85 | 113 | 291 |
Other expense, net | -167 | -222 | -203 |
Loss before income taxes | -39,105 | -43,330 | -88,655 |
Income tax provision | 124 | 83 | 611 |
Net loss | -39,229 | -43,413 | -89,266 |
Recognition of beneficial conversion feature | -445 | 0 | 0 |
Net loss | ($39,674) | ($43,413) | ($89,266) |
Net loss per share: | |||
Basic and diluted net loss per share (dollars per share) | ($1.05) | ($1.28) | ($2.72) |
Weighted average shares used in computation of basic and diluted net loss per share attributable to common shareholders: | |||
Weighted-average common shares outstanding (in shares) | 37,959 | 33,948 | 32,852 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($39,674) | ($43,413) | ($89,266) |
Unrealized gain (loss) on cash equivalents and marketable securities, net of tax | -5 | -9 | 22 |
Total comprehensive loss | ($39,679) | ($43,422) | ($89,244) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $166,025 | $32 | $429,813 | ($25,000) | ($238,812) | ($8) |
Beginning Balance, shares at Dec. 31, 2011 | 32,262,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares | 1,393,000 | |||||
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan | 1,599 | 2 | 1,597 | |||
Taxes withheld on net settled vesting of restricted stock units | -433 | -433 | ||||
Share-based compensation | 7,500 | 7,500 | ||||
Net loss | -89,266 | -89,266 | ||||
Other comprehensive income (loss) | 22 | 22 | ||||
Ending Balance at Dec. 31, 2012 | 85,447 | 34 | 438,477 | -25,000 | -328,078 | 14 |
Ending Balance, shares at Dec. 31, 2012 | 33,655,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares | 442,000 | |||||
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan | 102 | 0 | 102 | |||
Taxes withheld on net settled vesting of restricted stock units | -654 | -654 | ||||
Share-based compensation | 3,443 | 3,443 | ||||
Net loss | -43,413 | -43,413 | ||||
Other comprehensive income (loss) | -9 | -9 | ||||
Ending Balance at Dec. 31, 2013 | 44,916 | 34 | 441,368 | -25,000 | -371,491 | 5 |
Ending Balance, shares at Dec. 31, 2013 | 34,097,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares | 689,000 | |||||
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan | 248 | 2 | 246 | |||
Issuance of common shares in litigation settlement (in shares) | 2,407,000 | |||||
Issuance of common shares in connection with litigation settlement | 5,000 | 2 | 4,998 | |||
Issuance of common shares in HC2 financing transaction (in shares) | 7,363,000 | |||||
Issuance of common shares in connection with financing transaction, net of issuance costs | 7,936 | 7 | 7,929 | |||
Taxes withheld on net settled vesting of restricted stock units | -1,067 | -1,067 | ||||
Issuance of common shares for conversion of Series C Preferred Shares (in shares) | 872,000 | |||||
Issuance of common shares in connection with the conversion of Series C preferred shares | 940 | 1 | 939 | |||
Beneficial conversion feature of convertible Series C preferred shares | 445 | 445 | ||||
Reclassification of warrant liability | 8,219 | 8,219 | ||||
Share-based compensation (in shares) | 314,000 | |||||
Share-based compensation | 3,588 | 3,588 | ||||
Net loss | -39,674 | -39,674 | ||||
Other comprehensive income (loss) | -5 | -5 | ||||
Ending Balance at Dec. 31, 2014 | $30,546 | $46 | $466,665 | ($25,000) | ($411,165) | $0 |
Ending Balance, shares at Dec. 31, 2014 | 45,742,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($39,674) | ($43,413) | ($89,266) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 7,408 | 8,949 | 12,337 |
Loss on goodwill and purchased intangible assets impairment | 0 | 0 | 49,521 |
Impairment loss on equipment, leasehold improvements and software license intangible assets | 0 | 418 | 100 |
Provision for bad debts, net of recoveries | 86 | 1,936 | 439 |
Net impairment loss on marketable securities | 0 | 0 | 39 |
Provision for excess and obsolete inventory | 3,382 | 4,344 | 2,843 |
Share-based compensation expense | 3,588 | 3,443 | 7,500 |
Change in fair value of warrant liability and fair value of beneficial conversion feature on convertible Series C preferred shares | 3,725 | 0 | 0 |
Shareholder litigation loss | 0 | 14,326 | 0 |
Non-cash income tax expense | 87 | 220 | 462 |
Changes in assets and liabilities: | |||
Accounts receivable | 15,688 | 730 | -6,242 |
Inventories | -13,392 | 6,879 | 420 |
Prepaid expenses and other assets | -2,403 | -489 | -1,237 |
Accounts payable | 10,036 | -19,237 | -10,433 |
Accrued expenses, income taxes, and other | -4,798 | -4,733 | 3,638 |
Net cash used in operating activities | -16,267 | -26,627 | -29,879 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -1,753 | -5,011 | -4,579 |
Purchases of intangible assets | -431 | 0 | -104 |
Purchases of marketable securities | -1,359 | -24,262 | -44,216 |
Marketable securities maturities / sales | 23,975 | 40,897 | 46,696 |
Net cash provided by (used in) investing activities | 20,432 | 11,624 | -2,203 |
Cash flows from financing activities: | |||
Proceeds from the issuances of Series C preferred and common stock, net of issuance costs | 14,163 | 0 | 0 |
Proceeds from the issuance of short-term debt, net of issuance costs | 0 | 20,300 | 14,000 |
Principal repayments of short-term debt | -2,566 | -17,734 | -14,000 |
Repayment of litigation settlement note payable, including interest | -5,026 | 0 | 0 |
Borrowings on revolving credit facility | 5,158 | 0 | 0 |
Principal payments under capital lease obligations | 0 | 0 | -46 |
Taxes paid on vested restricted stock units net of proceeds from stock option exercises and ESPP | -821 | -552 | 1,166 |
Net cash provided by financing activities | 10,908 | 2,014 | 1,120 |
Effect of exchange rates on cash and cash equivalents | -131 | -144 | -63 |
Net increase (decrease) in cash and cash equivalents | 14,942 | -13,133 | -31,025 |
Cash and cash equivalents, beginning of period | 2,911 | 16,044 | 47,069 |
Cash and cash equivalents, end of period | 17,853 | 2,911 | 16,044 |
Cash paid during the year for: | |||
Interest | 119 | 65 | 17 |
Income taxes | 108 | 121 | 104 |
Supplemental disclosures of non-cash activities: | |||
Building rent incentives to fund leasehold improvements | 0 | 359 | 0 |
Issuance of common stock for litigation settlement | 5,000 | 0 | 0 |
Initial fair value of warrant liability recorded upon issuance of Series C preferred and common stock | 4,939 | 0 | 0 |
Issuance of common stock for conversion of Series C preferred shares | $940 | $0 | $0 |
Nature_of_Business_and_Signifi
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies |
Novatel Wireless, Inc. (the “Company,” “our” or “we”) is a provider of wireless broadband access solutions for the worldwide mobile communications market. Our broad range of products principally includes intelligent mobile hotspots, USB modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (“M2M”) devices, communications and applications software and cloud services. | |
Basis of Presentation | |
We have recently incurred operating losses and had a net loss attributable to common shareholders of $39.7 million during the year ended December 31, 2014. As of December 31, 2014, we had available cash and cash equivalents totaling $17.9 million, and working capital of $29.4 million. Our ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. If events or circumstances occur such that we do not meet our operating plan as expected, we may be required to reduce planned research and development activities, incur additional restructuring charges or reduce other operating expenses which could have an adverse impact on our ability to achieve our intended business objectives. These additional reductions in expenditures , if required, could have an adverse impact on our ability to achieve certain of our business objectives during 2015. We believe our working capital resources are sufficient to fund our operations through at least December 31, 2015. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities. Actual results could differ materially from these estimates. Significant estimates include allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of intangible and long-lived assets, fair value of warrant liability, accruals relating to litigation, restructuring, and retention bonus, provision for warranty costs, income taxes and share-based compensation expense. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include highly liquid investments with original maturities of three months or less. Cash and cash equivalents consist of demand deposits, US Treasury securities, and money market funds. Cash and cash equivalents are recorded at market value, which approximates cost. Gains and losses associated with the Company’s foreign currency denominated demand deposits are recorded as a component of other income (expense). | |
Allowance for Doubtful Accounts Receivable | |
The Company provides an allowance for its accounts receivable for estimated losses that may result from its customers’ inability to pay. The Company determines the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, and changes in customer payment cycles and our customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged or written off against this allowance. To minimize the likelihood of uncollectibility, the Company reviews its customers’ credit-worthiness periodically based on credit scores generated by independent credit reporting services, its experience with its customers and the economic condition of its customers’ industries. Material differences may result in the amount and timing of expense for any period if the Company were to make different judgments or utilize different estimates. | |
Marketable Securities | |
Marketable securities predominantly consist of highly liquid debt investments with a maturity of greater than three months when purchased. The Company did not have any short or long-term marketable securities at December 31, 2014. All of the Company’s marketable debt securities are treated as “available-for-sale.” While it is the Company’s intent to hold its debt securities until maturity, the Company may sell certain securities for cash flow purposes. Thus, the Company’s marketable debt securities are classified as available-for-sale and are carried on the balance sheet at fair value with the related unrealized gains and losses included in accumulated other comprehensive loss, a component of stockholders’ equity. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method. The Company determines the fair value of its financial assets and liabilities by reference to the hierarchy of inputs which consists of three levels: Level 1 fair values are valuations based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
All securities whose maturity or sale is expected within one year are classified as “current” on the consolidated balance sheet. All other securities are classified as “long-term” on the consolidated balance sheet. | |
Inventories and Provision for Excess and Obsolete Inventory | |
Inventories are stated at the lower of cost (first-in, first-out method) or market. Shipping and handling costs are classified as a component of cost of net revenues in the consolidated statements of operations. The Company reviews the components of its inventory and its inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances or new product introductions by the Company or its customers that vary from its current expectations. Whenever inventory is written down, a new cost basis is established and the inventory is not subsequently written up if market conditions improve. | |
The Company believes that, when made, the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demand for the Company’s inventory is substantially less than its estimates, inventory write-downs may be required, which could have a material adverse effect on its consolidated financial statements. | |
Property and Equipment | |
Property and equipment are initially stated at cost and depreciated using the straight-line method. Test equipment, computer equipment, purchased software, furniture, and fixtures and product tooling are depreciated over lives ranging from eighteen months to five years and leasehold improvements are depreciated over the shorter of the related remaining lease period or useful life. Amortization of assets held under capital leases is included in depreciation expense. | |
Expenditures for repairs and maintenance are expensed as incurred. Expenditures for major renewals and betterments that extend the useful lives of existing property and equipment are capitalized and depreciated. Upon retirement or disposition of property and equipment, any resulting gain or loss is recognized in the consolidated statements of operations. | |
Intangible Assets | |
Intangible assets include purchased intangible assets acquired from Enfora, Inc. (“Enfora”) on November 30, 2010 and the costs of non-exclusive and perpetual worldwide software technology licenses. These costs are amortized on an accelerated basis or on a straight-line basis over the estimated useful lives of the assets, depending on the anticipated utilization of the asset. The majority of intangible assets relate to the developed technologies and trade name resulting from the acquisition of Enfora. Developed technologies are amortized on a straight-line basis over the remaining one year useful life. Trade name is amortized on a straight-line basis over the remaining useful life of three years. | |
Long-Lived Assets | |
The Company periodically evaluates the carrying value of the unamortized balances of its long-lived assets, including property and equipment and intangible assets, to determine whether impairment of these assets has occurred or whether a revision to the related amortization periods should be made. When the carrying value of an asset exceeds the associated undiscounted expected future cash flows, it is considered to be impaired and is written down to fair value. Fair value is determined based on an evaluation of the assets associated undiscounted future cash flows or appraised value. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each class of asset. If management’s evaluation indicates that the carrying values of these assets are impaired, such impairment is recognized by a reduction of the applicable asset carrying value to its estimated fair value and the impairment is expensed as a part of continuing operations. | |
Goodwill | |
Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill is allocated as of the date of the business combination to the reporting units that are expected to benefit from the synergies of the business combination. Goodwill is considered to be impaired if the Company determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds its estimated fair value. As of December 31, 2014, all historical goodwill had been fully impaired. | |
Revenue Recognition | |
The Company’s revenue is principally generated from the sale of wireless modems to wireless operators, OEM customers and value added resellers and distributors. In addition, the Company generates revenue from the sale of asset-management solutions utilizing wireless technology and M2M communication devices predominantly to transportation and industrial companies, medical device manufacturers and security system providers. Revenue from product sales is generally recognized upon the later of transfer of title or delivery of the product to the customer. Where the transfer of title or risk of loss is contingent on the customer’s acceptance of the product, we will not recognize revenue until both title and risk of loss have transferred to the customer. We record deferred revenue for cash payments received from customers in advance of when revenue recognition criteria are met. We have granted price protection to certain customers in accordance with the provisions of the respective contracts and track pricing and other terms offered to customers buying similar products to assess compliance with these provisions. We estimate the amount of price protection for current period product sales utilizing historical experience and information regarding customer inventory levels. To date, we have not incurred material price protection obligations. Revenues from sales to certain customers are subject to cooperative advertising allowances. Cooperative advertising allowances are recorded as an operating expense to the extent that the advertising benefit is separable from the revenue transaction and the fair value of that advertising benefit is determinable. To the extent that such allowances either do not provide a separable benefit to us, or the fair value of the advertising benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. We establish reserves for estimated product returns allowances in the period in which revenue is recognized. In estimating future product returns, we consider various factors, including our stated return policies and practices and historical trends. | |
Predominantly all of our revenues represent the sale of hardware with accompanied software that is essential to the functionality of the hardware. The Company records revenue associated with the agreed upon price on hardware sales, and accrues any estimated costs of post-delivery performance obligations such as warranty obligations. The Company considers the four basic revenue recognition criteria discussed under Staff Accounting Bulletin No. 104 when assessing appropriate revenue recognition as follows: | |
Criterion #1—Persuasive evidence of an arrangement must exist; | |
Criterion #2—Delivery has occurred; | |
Criterion #3—The Company’s price to the buyer must be fixed or determinable; and, | |
Criterion #4—Collectability is reasonably assured. | |
For multiple element arrangements, total consideration received from customers is allocated to the elements. This may include hardware, non-essential software elements and/or essential software, based on a relative selling price. The accounting guidance establishes a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendors specific objective evidence (VSOE), (ii) third party evidence (TPE), and (iii) best estimate of selling price (BESP). Because the Company has neither VSOE nor TPE, revenue has been based on the Company’s BESP. Amounts allocated to the delivered hardware and the related essential software are recognized at the time of the sale provided all other revenue recognition criteria have been met. Amounts allocated to other deliverables based upon BESP are recognized in the period the revenue recognition criteria have been met. | |
Our process for determining its BESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Our prices are determined based upon cost to produce our products, expected order quantities, acceptance in the marketplace and internal pricing parameters. In addition, when developing BESPs for products we may consider other factors as appropriate including the pricing of competitive alternatives if they exist, and product-specific business objectives. | |
We account for nonessential software licenses and related post contract support (PCS) under multiple element arrangements by recognizing revenue for such arrangements ratably over the term of the PCS as we have not established VSOE for the PCS element. | |
For the years ended December 31, 2014, 2013 and 2012, we have not recorded any significant revenues from multiple element or software arrangements. | |
Research and Development Costs | |
Research and development costs are expensed as incurred. | |
Warranty Costs | |
The Company accrues warranty costs based on estimates of future warranty related replacement, repairs or rework of products. Our warranty policy generally provides one to three years of coverage for products following the date of purchase. The Company’s policy is to accrue the estimated cost of warranty coverage as a component of cost of revenue in the accompanying consolidated statements of operations at the time revenue is recognized. In estimating our future warranty obligations the Company considers various factors, including the historical frequency and volume of claims and the cost to replace or repair products under warranty. The warranty provision for our products is determined by using a financial model to estimate future warranty costs. The Company’s financial model takes into consideration actual product failure rates; estimated replacement, repair or rework expenses; and potential risks associated with our different products. The risk levels, warranty cost information and failure rates used within this model are reviewed throughout the year and updated, if and when, these inputs change. | |
Income Taxes | |
The Company recognizes federal, state and foreign current tax liabilities or assets based on our estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. The Company evaluates deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence. If the Company is unable to generate sufficient future taxable income in certain tax jurisdictions, or if there is a material change in the actual effective tax rates or time period within which the underlying temporary differences become taxable or deductible, the Company could be required to increase its valuation allowance against its deferred tax assets which could result in an increase in the Company’s effective tax rate and an adverse impact on operating results. The Company will continue to evaluate the necessity of the valuation allowance based on the remaining deferred tax assets. | |
The Company follows the accounting guidance related to financial statement recognition, measurement and disclosure of uncertain tax positions. The Company recognizes the impact of an uncertain income tax position on an income tax return 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. Uncertain tax positions are recognized in the first subsequent financial reporting period in which that threshold is met or from changes in circumstances such as the expiration of applicable statutes of limitations. | |
Litigation | |
The Company is currently involved in certain legal proceedings. The Company will record a loss when the Company determines information available prior to the issuance of the financial statements indicates the loss is both probable and estimable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending litigation and revises its estimates, if necessary. The Company’s policy is to expense litigation costs as incurred. | |
Share-Based Compensation | |
The Company has granted stock options to employees and restricted stock units. The Company also has an employee stock purchase plan (“ESPP”) for eligible employees. The Company measures the compensation cost associated with all share-based payments based on grant date fair values. The fair value of each employee stock option and employee stock purchase right is estimated on the date of grant using an option pricing model that meets certain requirements. The Company currently uses the Black-Scholes option pricing model to estimate the fair value of its stock options and stock purchase rights. The Black-Scholes model is considered an acceptable model but the fair values generated by it may not be indicative of the actual fair values of our equity awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements as well as limited transferability. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. | |
For grants of stock options, the Company uses a blend of historical and implied volatility for traded options on its stock in order to estimate the expected volatility assumption required in the Black-Scholes model. The Company’s use of a blended volatility estimate in computing the expected volatility assumption for stock options is based on its belief that while that implied volatility is representative of expected future volatility, the historical volatility over the expected term of the award is also an indicator of expected future volatility. Due to the short duration of employee stock purchase rights under our ESPP, the Company utilizes historical volatility in order to estimate the expected volatility assumption of the Black-Scholes model. | |
The expected term of stock options granted is estimated using historical experience. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our stock options and employee stock purchase rights. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. The Company estimates forfeitures at the time of grant and revises these estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates its forfeiture rate assumption for all types of share based compensation awards based historical forfeiture rates related to each category of award. | |
Compensation cost associated with grants of restricted stock units are measured at fair value, which has historically been the closing price of the Company’s stock on the date of grant. | |
The Company recognizes share-based compensation expense using the straight-line method for awards that contain only service conditions. For awards that contain performance conditions, the Company recognizes the share-based compensation expense on a straight-line basis for each vesting tranche. | |
The Company evaluates the assumptions used to value stock awards on a quarterly basis. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what it has recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned share-based compensation expense. | |
Computation of Net Loss Per Share Attributable to Common Shareholders | |
The Company computes basic and diluted per share data for all periods for which a statement of operations is presented. Basic net loss per share excludes dilution and is computed by dividing the net loss by the weighted-average number of shares that were outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to acquire common stock were exercised or converted into common stock. Potential dilutive securities are excluded from the diluted EPS computation in loss periods as their effect would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. | |
Fair Value of Financial Instruments | |
The Company’s fair value measurements relate to its cash equivalents, marketable debt securities, and marketable equity securities, which are classified pursuant to authoritative guidance for fair value measurements. The Company places its cash equivalents and marketable debt securities in instruments that meet credit quality standards, as specified in its investment policy guidelines. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. | |
Our financial instruments consist principally of cash and cash equivalents, short-term and long-term marketable securities, warrants and short-term and long-term debt. The Company’s cash and cash equivalents consist of our investments in money market securities, time deposits with maturities of less than three months and treasury bills. The Company’s marketable securities consist primarily of government agency securities, municipal bonds, time deposits and investment-grade corporate bonds. From time to time, the Company may utilize foreign exchange forward contracts. These contracts are valued using pricing models that take into account the currency rates as of the balance sheet date. | |
Comprehensive Loss | |
Comprehensive loss consists of net earnings and unrealized gains and losses on available-for-sale securities. | |
Recent Accounting Pronouncements | |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”), which are adopted by the Company as of the specified date. Unless otherwise discussed, management believes the impact of recently issued standards, which are not yet effective, will not have a material impact on its consolidated financial statements upon adoption. | |
In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. The Company is currently evaluating the potential changes from this ASU to its future financial reporting and disclosures. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Entities are required to apply the standard for annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. The Company is currently assessing the impact of this new guidance. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires a reporting entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This standard will be effective for annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of this new guidance. |
Fair_Value_Measurement_of_Asse
Fair Value Measurement of Assets and Liabilities | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities | |||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. | ||||||||||||
We classify our inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | ||||||||||||
Level 1: Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||
Level 2: Pricing inputs include benchmark yields, trade data, reported trades and broker dealer quotes, two-sided markets and industry and economic events, yield to maturity, Municipal Securities Rule Making Board reported trades and vendor trading platform data. Level 2 includes those financial instruments that are valued using various pricing services and broker pricing information including Electronic Communication Networks and broker feeds. | ||||||||||||
Level 3: Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions. | ||||||||||||
At December 31, 2014, the Company did not have any securities in the Level 3 category. The Company reviews the fair value hierarchy classification on a quarterly basis. We validate the quoted market prices provided by our primary pricing service by comparing their assessment of the fair values of our investments by using a third party investment manager. The third party investment manager uses similar techniques to our primary pricing service to derive the pricing describe above. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. | ||||||||||||
The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of December 31, 2014 (in thousands): | ||||||||||||
Description | Balance as of | Level 1 | Level 2 | |||||||||
December 31, 2014 | ||||||||||||
Assets: | ||||||||||||
Cash equivalents | ||||||||||||
Money market funds | $ | 1,134 | $ | 1,134 | $ | — | ||||||
Certificates of deposit | 980 | — | 980 | |||||||||
Total cash equivalents | $ | 2,114 | $ | 1,134 | $ | 980 | ||||||
The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of December 31, 2013 (in thousands): | ||||||||||||
Description | Balance as of | Level 1 | Level 2 | |||||||||
December 31, 2013 | ||||||||||||
Assets: | ||||||||||||
Cash equivalents | ||||||||||||
US Treasury securities | $ | 487 | $ | — | $ | 487 | ||||||
Total cash equivalents | 487 | — | 487 | |||||||||
Short-term marketable securities: | ||||||||||||
Available-for-sale: | ||||||||||||
Government agency securities | 2,351 | — | 2,351 | |||||||||
Municipal bonds | 2,829 | — | 2,829 | |||||||||
Certificates of deposit | 3,360 | — | 3,360 | |||||||||
Corporate debentures / bonds | 10,638 | — | 10,638 | |||||||||
Total short-term marketable securities | 19,178 | — | 19,178 | |||||||||
Long-term marketable securities: | ||||||||||||
Available-for-sale: | ||||||||||||
Certificates of deposit | 1,300 | — | 1,300 | |||||||||
Corporate debentures / bonds | 2,143 | — | 2,143 | |||||||||
Total long-term marketable securities | 3,443 | — | 3,443 | |||||||||
Total financial assets | $ | 23,108 | $ | — | $ | 23,108 | ||||||
As of December 31, 2014, the Company had no short- or long-term marketable securities. | ||||||||||||
As of December 31, 2014 and 2013, the Company had no outstanding foreign currency exchange forward contracts. | ||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recorded foreign currency losses on foreign currency denominated transactions of approximately $176,000, $183,000 and $51,000, respectively. The loss during the years ended December 31, 2014 and 2013 primarily related to foreign currency losses on foreign currency denominated bank accounts. The loss during the year ended December 31, 2012 primarily related to foreign currency losses on South Korean won denominated trade payables. | ||||||||||||
All recorded gains and losses on foreign exchange transactions are recorded in other income (expense), net, within the consolidated statements of operations. | ||||||||||||
Other Financial Instruments | ||||||||||||
Carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets are as follows (in thousands): | ||||||||||||
As of December 31, 2014 | ||||||||||||
Description | Carrying Amount | Fair Value | ||||||||||
Revolving credit facility | $ | 5,158 | $ | 5,158 | ||||||||
Total other financial instruments | $ | 5,158 | $ | 5,158 | ||||||||
Financial_Statement_Details
Financial Statement Details | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||
Financial Statement Details | Financial Statement Details | |||||||||||||||||
Marketable Securities | ||||||||||||||||||
The Company did not have any short-term or long-term marketable securities at December 31, 2014. | ||||||||||||||||||
The following table summarizes the Company’s portfolio of available-for-sale securities by contractual maturity as of December 31, 2013 (in thousands): | ||||||||||||||||||
December 31, 2013 | Maturity in | Amortized | Gross | Gross | Estimated | |||||||||||||
Years | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||||
Available-for-sale: | ||||||||||||||||||
Government agency securities | 1 or less | $ | 2,350 | $ | 1 | $ | — | $ | 2,351 | |||||||||
Municipal bonds | 1 or less | 2,828 | 1 | — | 2,829 | |||||||||||||
Certificates of deposit | 1 or less | 3,360 | — | — | 3,360 | |||||||||||||
Corporate debentures / bonds | 1 or less | 10,635 | 3 | — | 10,638 | |||||||||||||
Total short-term marketable securities | 19,173 | 5 | — | 19,178 | ||||||||||||||
Available-for-sale: | ||||||||||||||||||
Certificates of deposit | 1 to 2 | 1,300 | — | — | 1,300 | |||||||||||||
Corporate debentures / bonds | 1 to 2 | 2,143 | — | — | 2,143 | |||||||||||||
Total long-term marketable securities | 3,443 | — | — | 3,443 | ||||||||||||||
$ | 22,616 | $ | 5 | $ | — | $ | 22,621 | |||||||||||
The Company’s available-for-sale securities are carried on the consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive loss on the consolidated balance sheet, which is a separate component of stockholders’ equity. Realized gains and losses on the sale of available-for-sale marketable securities are determined using the specific-identification method. | ||||||||||||||||||
At December 31, 2014 and 2013, the Company recorded net unrealized gains of $0 and $5,000, respectively. The Company’s net unrealized loss is the result of market conditions affecting its fixed-income debt securities, which are included in accumulated other comprehensive income on the consolidated balance sheet for the periods then ended. | ||||||||||||||||||
Inventories | ||||||||||||||||||
Inventories consist of the following (in thousands): | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Finished goods | $ | 33,045 | $ | 20,870 | ||||||||||||||
Raw materials and components | 4,758 | 6,923 | ||||||||||||||||
$ | 37,803 | $ | 27,793 | |||||||||||||||
Property and Equipment | ||||||||||||||||||
Property and equipment consists of the following (in thousands): | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Test equipment | $ | 53,019 | $ | 52,108 | ||||||||||||||
Computer equipment and purchased software | 11,247 | 10,814 | ||||||||||||||||
Product tooling | 3,535 | 3,204 | ||||||||||||||||
Furniture and fixtures | 1,824 | 2,015 | ||||||||||||||||
Leasehold improvements | 4,103 | 4,094 | ||||||||||||||||
73,728 | 72,235 | |||||||||||||||||
Less—accumulated depreciation and amortization | (68,449 | ) | (62,334 | ) | ||||||||||||||
$ | 5,279 | $ | 9,901 | |||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recorded $0, $70,000 and $100,000, respectively, in its cost of net revenues as a result of its impairment analysis of property and equipment. | ||||||||||||||||||
Depreciation expense relating to property and equipment was $6.3 million, $7.9 million and $9.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
Accrued Expenses | ||||||||||||||||||
Accrued expenses consist of the following (in thousands): | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Royalties | $ | 4,035 | $ | 4,243 | ||||||||||||||
Payroll and related expenses | 8,038 | 4,828 | ||||||||||||||||
Product warranty | 1,196 | 2,244 | ||||||||||||||||
Market development funds and price protection | 2,502 | 3,059 | ||||||||||||||||
Professional fees | 780 | 1,040 | ||||||||||||||||
Deferred revenue | 962 | 2,999 | ||||||||||||||||
Restructuring | 1,886 | 610 | ||||||||||||||||
Other | 4,445 | 4,248 | ||||||||||||||||
$ | 23,844 | $ | 23,271 | |||||||||||||||
Accrued Warranty Obligations | ||||||||||||||||||
Accrued warranty obligations consist of the following (in thousands): | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Warranty liability at beginning of period | $ | 2,244 | $ | 2,329 | ||||||||||||||
Additions charged to operations | 1,345 | 5,055 | ||||||||||||||||
Deductions from liability | (2,393 | ) | (5,140 | ) | ||||||||||||||
Warranty liability at end of period | $ | 1,196 | $ | 2,244 | ||||||||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||||||||||
The Company’s amortizable purchased intangible assets resulting from its 2010 acquisition of Enfora are composed of (in thousands): | ||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Impairment | Net | |||||||||||||||||||||||||
Amortization | Impairment | Amortization | ||||||||||||||||||||||||||||||
Developed technologies | $ | 26,000 | $ | (6,453 | ) | $ | (19,547 | ) | $ | — | $ | 26,000 | $ | (6,120 | ) | $ | (19,547 | ) | $ | 333 | ||||||||||||
Trade name | 12,800 | (3,183 | ) | (8,582 | ) | 1,035 | 12,800 | (2,665 | ) | (8,582 | ) | 1,553 | ||||||||||||||||||||
Other | 3,720 | (2,011 | ) | (1,620 | ) | 89 | 3,720 | (1,967 | ) | (1,620 | ) | 133 | ||||||||||||||||||||
Total amortizable purchased intangible assets | $ | 42,520 | $ | (11,647 | ) | $ | (29,749 | ) | $ | 1,124 | $ | 42,520 | $ | (10,752 | ) | $ | (29,749 | ) | $ | 2,019 | ||||||||||||
The following table presents details of the amortization of purchased intangible assets included in the cost of net revenues and general and administrative expense categories (in thousands): | ||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cost of net revenues | $ | 333 | $ | 334 | ||||||||||||||||||||||||||||
General and administrative expenses | 562 | 562 | ||||||||||||||||||||||||||||||
Total amortization expense | $ | 895 | $ | 896 | ||||||||||||||||||||||||||||
The following table presents details of the amortization of existing amortizable purchased intangible assets of Enfora that is currently estimated to be expensed in the future (in thousands): | ||||||||||||||||||||||||||||||||
Fiscal year: | Amount | |||||||||||||||||||||||||||||||
2015 | $ | 562 | ||||||||||||||||||||||||||||||
2016 | 562 | |||||||||||||||||||||||||||||||
Total | $ | 1,124 | ||||||||||||||||||||||||||||||
Additionally, at December 31, 2014 and 2013, the Company had net acquired software licenses and other intangibles of $369,000 and $112,000, respectively, net of accumulated amortization of $2.4 million and $2.2 million, respectively. The acquired software licenses represent rights to use certain software necessary for the development and commercial sale of the Company’s products. | ||||||||||||||||||||||||||||||||
The Company monitors its intangible and long-lived asset balances and conducts formal tests when impairment indicators are present. There was no impairment loss recorded for the year ended December 31, 2014 and 2013. For the year ended December 31, 2012, the Company recorded an impairment loss of $49.5 million. | ||||||||||||||||||||||||||||||||
Amortization expense relating to acquired software licenses and other intangibles was $173,000, $113,000 and $196,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Amortization expense related to licenses obtained for research purposes is recorded within research and development expense in the consolidated statements of operations. Amortization expense related to licenses obtained for commercial products is recorded in cost of net revenues in the consolidated statements of operations. | ||||||||||||||||||||||||||||||||
At December 31, 2014, the weighted average remaining useful life of the Company’s long-lived intangible assets including acquired software licenses is 2.0 years. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments |
The Company evaluates stock options, stock warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for under the relevant sections of FASB Accounting Standards Codification. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative financial instrument and is marked-to-market at each balance sheet date and recorded as an asset or liability. In the event that the fair value is recorded as an asset or liability, the change in fair value is recorded in the statement of operations as other income or other expense. Upon conversion, exercise or expiration of a derivative financial instrument, the instrument is marked to fair value and then that fair value is reclassified to equity. | |
Certain of the Company’s outstanding warrants were treated as derivative liabilities for accounting purposes due to insufficient authorized shares to settle these outstanding contracts at the time of issuance. These common stock purchase warrants did not trade in an active securities market. The Company estimated the fair value of these warrant liabilities using a Monte Carlo simulation option pricing model. |
Revolving_Credit_Facility
Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility |
On October 31, 2014, the Company and one of its subsidiaries entered into a five-year senior secured revolving credit facility in the amount of $25.0 million (the “Revolver”) with Wells Fargo Bank, National Association, as lender. | |
The amount of borrowings that may be made under the Revolver is based on a borrowing base comprised of a specified percentage of eligible receivables. If, at any time during the term of the Revolver, the amount of borrowings outstanding under the Revolver exceeds the borrowing base then in effect or the maximum revolver amount of $25.0 million, the Company is required to repay such borrowings in an amount sufficient to eliminate such excess. The Revolver includes $3.0 million of availability for letters of credit. | |
The Company may borrow funds under the Revolver from time to time, with interest payable monthly at a base rate determined by using the daily three month LIBOR rate, plus an applicable margin of 2.50% to 3.00% depending on the Company’s liquidity as determined on the last day of each calendar month. The Revolver is secured by a first priority lien on substantially all of the assets of the Company and certain of its subsidiaries, subject to certain exceptions and permitted liens. The Revolver includes customary representations and warranties, as well as customary reporting and financial covenants. | |
At December 31, 2014, the balance of the revolving credit facility was approximately $5.2 million, with a weighted average effective interest rate of 2.8% and the Company had available borrowings of approximately $12.1 million. At December 31, 2014, the Company was in compliance with all financial covenants contained in the credit agreement. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||
Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Potentially dilutive securities (consisting of warrants, options and restricted stock units (“RSUs”) and employee stock purchase plan (“ESPP”) withholdings calculated using the treasury stock method) are excluded from the diluted EPS computation in loss periods and when the applicable exercise price is greater than the market price on the period end date as their effect would be anti-dilutive. | ||||||||||||
Weighted average options, restricted stock units, warrants and ESPP shares to acquire a total of 8,130,000 shares, 4,424,000 shares and 5,793,000 shares of common stock for the years ended December 31, 2014, 2013 and 2012, respectively, were outstanding but not included in the computation of diluted earnings per share as their effect was anti-dilutive. | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands except per share amounts) | ||||||||||||
Numerator | ||||||||||||
Net loss attributable to common shareholders: | $ | (39,674 | ) | $ | (43,413 | ) | $ | (89,266 | ) | |||
Denominator | ||||||||||||
Weighted-average common shares outstanding | 37,959 | 33,948 | 32,852 | |||||||||
Basic and diluted net loss per share attributable to common shareholders | $ | (1.05 | ) | $ | (1.28 | ) | $ | (2.72 | ) |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Equity [Abstract] | ||||||
Stockholders' Equity | Stockholders’ Equity | |||||
Preferred Stock | ||||||
The Company has a total of 2,000,000 shares of Series A and Series B preferred stock authorized for issuance at a par value of $0.001 per share. No preferred shares are currently issued or outstanding. | ||||||
Common Shares Reserved for Future Issuance | ||||||
The Company has reserved shares of common stock for possible future issuance as of December 31, 2014 and 2013 as follows (in thousands): | ||||||
Shares | ||||||
2014 | 2013 | |||||
Common stock warrants outstanding | 4,118 | — | ||||
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans | 3,065 | 3,933 | ||||
Restricted stock units outstanding | 1,629 | 1,108 | ||||
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan | 4,463 | 3,668 | ||||
Shares available under the Employee Stock Purchase Plan | 1,385 | 1,500 | ||||
Total shares of common stock reserved for issuance | 14,660 | 10,209 | ||||
Stock_Incentive_and_Employee_S
Stock Incentive and Employee Stock Purchase Plans | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
Stock Incentive and Employee Stock Purchase Plans | Stock Incentive and Employee Stock Purchase Plans | |||||||||||||||||
During the year ended December 31, 2014, the Company granted awards under the 2009 Omnibus Incentive Compensation Plan (the “2009 Plan”). The Compensation Committee of the Board of Directors administers the plan. | ||||||||||||||||||
Under the 2009 Plan, a maximum of 10.0 million shares of common stock may be issued upon the exercise of stock options, in the form of restricted stock, or in settlement of restricted stock units or other awards, including awards with alternative vesting schedules such as performance-based criteria. | ||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the following table presents total share-based compensation expense in each functional line item on our consolidated statements of operations (in thousands): | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Cost of revenues | $ | 5 | $ | 84 | $ | 747 | ||||||||||||
Research and development | 654 | 1,114 | 3,042 | |||||||||||||||
Sales and marketing | 247 | 669 | 1,403 | |||||||||||||||
General and administrative | 2,682 | 1,576 | 2,308 | |||||||||||||||
Totals | $ | 3,588 | $ | 3,443 | $ | 7,500 | ||||||||||||
Included in share-based compensation for the year ended December 31, 2014 is approximately $1.3 million of share-based compensation related to the departure of the Company’s former Chief Executive Officer and the vesting of all of his restricted stock units and options immediately upon his departure in accordance with the terms of his employment agreement. | ||||||||||||||||||
The per share fair values of stock options granted under the 2009 Plan and rights granted under the ESPP have been estimated with the following assumptions. | ||||||||||||||||||
Employee Stock Options | Employee Stock Purchase Rights | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Expected dividend yield: | — | % | — | % | — | % | — | % | — | % | — | % | ||||||
Risk-free interest rate: | 1.4 | % | 0.8 | % | 0.9 | % | 5.4 | % | — | % | 0.2 | % | ||||||
Volatility: | 80 | % | 63 | % | 63 | % | 53 | % | — | % | 68 | % | ||||||
Expected term (in years): | 4.6 | 6 | 6 | 0.4 | 0 | 1.3 | ||||||||||||
Stock Options | ||||||||||||||||||
The Compensation Committee of the Board of Directors determines eligibility, vesting schedules and exercise prices for options granted. Options granted under the 2009 Plan and previous plans generally have a term of ten years, and in the case of new hires, generally vest and become exercisable at the rate of 33.3% after one year and ratably on a monthly basis over a period of 24 months thereafter. Subsequent option grants to existing employees generally have the same terms. | ||||||||||||||||||
A summary of stock option activity for the years ended December 31, 2014 and 2013 is presented below (dollars and shares in thousands, except per share data): | ||||||||||||||||||
Stock | Weighted | Weighted | Aggregate | |||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||
Outstanding | Exercise | Remaining | Value | |||||||||||||||
Price Per | Contractual | |||||||||||||||||
Option | Term | |||||||||||||||||
(Years) | ||||||||||||||||||
Options outstanding December 31, 2012 | 4,282 | $ | 10.25 | |||||||||||||||
Granted | 425 | 2.1 | ||||||||||||||||
Exercised | (38 | ) | 2.68 | |||||||||||||||
Cancelled | (736 | ) | 10.21 | |||||||||||||||
Options outstanding December 31, 2013 | 3,933 | $ | 9.45 | |||||||||||||||
Granted | 1,658 | 2.92 | ||||||||||||||||
Exercised | (89 | ) | 2.17 | |||||||||||||||
Cancelled | (2,437 | ) | 10.52 | |||||||||||||||
Balance December 31, 2014 | 3,065 | $ | 5.27 | 4.92 years | $ | 1,022 | ||||||||||||
Options Exercisable, December 31, 2014 | 1,769 | $ | 6.8 | 4.99 years | $ | 449 | ||||||||||||
The total intrinsic value of options exercised to purchase common stock during the years ended December 31, 2014, 2013 and 2012 was approximately $96,000, $44,000 and $0, respectively. As of December 31, 2014, total unrecognized share-based compensation cost related to unvested stock options was $1,777,000, which is expected to be recognized over a weighted average period of approximately 2.7 years. The total fair value of option awards recognized as expense during the years ended December 31, 2014, 2013 and 2012 was approximately $776,000, $0.8 million and $1.7 million, respectively. The weighted average fair value of option awards granted during years ended December 31, 2014, 2013 and 2012 was $1.48, $1.20 and $1.97, respectively. | ||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||
The Company may issue restricted stock units (“RSUs”) that, upon satisfaction of vesting conditions, allow for employees and non-employee directors to receive common stock. Issuances of such awards reduce common stock available under the 2009 Plan for stock incentive awards. The Company measures compensation cost associated with grants of RSUs at fair value, which is generally the closing price of the Company’s stock on the date of grant. | ||||||||||||||||||
During 2014, the Compensation Committee of the Board of Directors, pursuant to the 2009 Plan, awarded employees a total of 2,658,956 RSUs at fair values ranging from $1.60 per share to $3.55 per share. Generally, one-third of the shares underlying each grant become issuable on the anniversary of each grant date, assuming continued employment with the Company through such date. Based on the fair value of the Company’s common stock price at the grant dates, the Company estimated the aggregate fair value of these awards at approximately $5.7 million. The estimated fair value of these awards is being amortized to compensation expense for each grant on a straight-line basis over the estimated service period. | ||||||||||||||||||
During 2013, the Compensation Committee of the Board of Directors, pursuant to the 2009 Plan, awarded employees a total of 447,703 RSUs at fair values ranging from $1.74 per share to $4.17 per share. Generally, one-third of the shares underlying each grant become issuable on the anniversary of each grant date, assuming continued employment with the Company through such date. Based on the fair value of the Company’s common stock price at the grant dates, the Company estimated the aggregate fair value of these awards at approximately $0.9 million. The estimated fair value of these awards is being amortized to compensation expense for each grant on a straight-line basis over the estimated service period. | ||||||||||||||||||
During 2012, the Compensation Committee of the Board of Directors, pursuant to the 2009 Plan, awarded employees a total of 1,015,638 RSUs at fair values ranging from $1.28 per share to $3.58 per share. Generally, one-third of the shares underlying each grant become issuable on the anniversary of each grant date, assuming continued employment with the Company through such date. Based on the fair value of the Company’s common stock price at the grant dates, the Company estimated the aggregate fair value of these awards at approximately $3.4 million. The estimated fair value of these awards is being amortized to compensation expense for each grant on a straight-line basis over the estimated service period. | ||||||||||||||||||
A summary of restricted stock unit activity for the year ended December 31, 2014 is presented below (shares in thousands): | ||||||||||||||||||
Shares | ||||||||||||||||||
Non-vested at December 31, 2013 | 1,108 | |||||||||||||||||
Granted | 2,659 | |||||||||||||||||
Vested | (1,207 | ) | ||||||||||||||||
Forfeited | (931 | ) | ||||||||||||||||
Non-vested at December 31, 2014 | 1,629 | |||||||||||||||||
As of December 31, 2014, there was $3.0 million of unrecognized compensation expense related to non-vested RSUs. That expense is expected to be recognized over a weighted average period of 2.7 years. The total fair value of RSUs recognized as expense during the years ended December 31, 2014, 2013 and 2012 was $2.9 million, $2.6 million and $3.4 million, respectively. | ||||||||||||||||||
2000 Employee Stock Purchase Plan | ||||||||||||||||||
The Company’s 2000 Employee Stock Purchase Plan (the “ESPP”) permits eligible employees of the Company to purchase newly issued shares of common stock, at a price equal to 85% of the lower of the fair market value on (i) the first day of the offering period or (ii) the last day of each six-month purchase period, through payroll deductions of up to 10% of their annual cash compensation. | ||||||||||||||||||
On October 22, 2012, the Company announced the termination of the ESPP as of November 15, 2012 due to a lack of available shares. The cancellation of the awards was accounted for as a repurchase for no consideration. The previously unrecognized compensation cost as of November 15, 2012 of $1.0 million was fully expensed in the fourth quarter of 2012. | ||||||||||||||||||
The Company reinstated the ESPP program effective as of August 16, 2014. The reinstated ESPP authorizes the Company to issue 1,500,132 shares of common for purchase by eligible employees. | ||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company issued 114,791 shares, 0 shares and 1,086,837 shares, respectively, under the ESPP. During the years ended December 31, 2014, 2013 and 2012, the Company received $192,000, $0 and $1.6 million, respectively, in cash through employee withholdings. | ||||||||||||||||||
The total fair value of ESPP awards recognized as expense during the years ended December 31, 2014, 2013 and 2012 was $101,000, $0 and $1.4 million, respectively. |
Securities_Purchase_Agreement
Securities Purchase Agreement | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Equity [Abstract] | |||||
Securities Purchase Agreement | Securities Purchase Agreement | ||||
On September 3, 2014, the Company entered into a Purchase Agreement (the “Purchase Agreement”) with HC2 Holdings 2, Inc., a Delaware corporation (the “Investor”), pursuant to which, on September 8, 2014, the Company sold to the Investor (i) 7,363,334 shares of the Company’s common stock, par value $0.001 per share, (ii) a warrant to purchase 4,117,647 shares of common stock at an exercise price of $2.26 per share (the “Warrant”) and (iii) 87,196 shares of the Company’s Series C Convertible Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”), all at a purchase price of (a) $1.75 per share of common stock plus, in each case, the related Warrant and (b) $17.50 per share of Series C Preferred Stock, for aggregate gross proceeds of approximately $14.4 million (collectively, the “Financing”). | |||||
Certain terms of the Warrant and the Series C Preferred Stock were dependent upon the approval by the Company’s stockholders of (i) an increase in the total number of authorized shares of common stock to 100,000,000 shares and (ii) the issuance and sale of the securities pursuant to the Purchase Agreement (including the issuance of all shares of common stock issuable upon the full conversion of the Series C Preferred Stock issued pursuant to the Purchase Agreement and the full exercise of the Warrant) and any change of control that may be deemed to occur as a result of such issuance and sale pursuant to the applicable rules of The NASDAQ Stock Market LLC (together, the “Stockholder Approval”). This Stockholder Approval was obtained on November 17, 2014, at a Special Meeting of the Company's stockholders. | |||||
In connection with the issuance of 7,363,334 shares of common stock to the Investor, the Company unreserved 1,651,455 shares of common stock previously approved for issuance pursuant to the Company’s 2009 Omnibus Incentive Compensation Plan and 1,300,000 shares of common stock previously approved for issuance pursuant to the Company’s 2000 ESPP. Accordingly, these shares were not available for grants under the respective plans until the Company’s Stockholders approved an increase in the total number of authorized shares of common stock. | |||||
Warrant | |||||
In connection with the above transaction the Company issued a Warrant to purchase 4,117,647 shares of common stock at an exercise price of $2.26 per share to the Investor. Pursuant to the terms of the Warrant, the Warrant will generally only be exercisable on a cash basis. However, the Warrant may be exercisable on a cashless basis if and only if a registration statement relating to the issuance of the shares underlying the Warrant is not then effective or an exemption from registration is not available. Subject to certain limitations, the Warrant will be exercisable into shares of common stock during the period commencing on March 8, 2015 and ending on September 8, 2019, the expiration date of the Warrant. The Warrant may be exercised by surrendering to the Company the warrant certificate evidencing the Warrant to be exercised with the accompanying exercise notice, appropriately completed, duly signed and delivered, together with cash payment of the exercise price, if applicable. | |||||
The exercise price and the number of shares of common stock issuable upon exercise of the Warrant are subject to adjustment upon certain corporate events, including certain combinations, recapitalizations, reorganizations, reclassifications, stock dividends and stock splits. In the event of an extraordinary transaction, as described in the Warrant and generally including any merger with or into another entity, sale of all or substantially all of the Company’s assets, tender offer or exchange offer, or reclassification of the common stock, each Warrant will automatically be converted into the right to receive, for each share of common stock that would have been issuable upon exercise of such Warrant immediately prior to such transaction, the same kind and amount of securities, cash or property as the holder would have been entitled to receive if the holder had been the holder of common stock immediately prior to the occurrence of such transaction. No fractional shares will be issued upon exercise of the Warrant. The Warrant does not confer upon its holder any voting or other rights as a stockholder of the Company. | |||||
Due to insufficient authorized shares to satisfy the exercise of the instrument in full at the time of issuance, the Company determined that the instrument should be treated as a derivative instrument as of September 30, 2014. Liability classification was required because share settlement was not within the control of the Company and the Warrant was not considered to be “indexed to the company’s own stock” and therefore did not qualify for the exemptions provided by ASC 815. | |||||
On November 17, 2014, at a Special Meeting of the Stockholders the Company received Stockholder Approval to increase the number of authorized shares of the Company's common stock from 50,000,000 shares to 100,000,000 shares, and accordingly, the Company marked to fair value the above described Warrant instrument and then reclassified that fair value of $8,219,000 to additional paid-in-capital. | |||||
Because the Warrant has no comparable market data to determine fair value, the Company hired an independent valuation firm to assist with the valuation of the Warrant. The primary factors used to determine the fair value include: (i) the fair value of the Company’s common stock; (ii) the volatility of the Company’s common stock; (iii) the risk free interest rate; (iv) the estimated likelihood and timing of exercise; and (v) the estimated likelihood and timing of a future financing arrangement. Increases in the market value of the Company’s common stock and volatility, which have the most impact on the fair value of the Warrant, would cause the fair value of the Warrant to change. Because of the significant unobservable inputs used to calculate fair value the Company has classified the Warrant as a Level 3 measurement. The Warrant was measured at fair value on a recurring basis including a final remeasurement immediately preceding its reclassification to additional paid-in-capital on November 17, 2014. Unrealized gains and losses on items measured at fair value are recognized in earnings as other income/(expense). The Company incurred an expense of $3.3 million for the twelve months ended December 31, 2014 related to the Warrant as a result of an increase in the market value of the Company’s common stock. | |||||
The following table shows the change to the fair value of the Warrant during the twelve months ended December 31, 2014 (in thousands): | |||||
Warrant Derivative Liability | |||||
Balance at September 8, 2014 (Transaction Date) | $ | 4,939 | |||
Change in fair value | 3,280 | ||||
Balance at November 17, 2014 (Shareholder Approval Date) | 8,219 | ||||
Reclassification to additional paid-in-capital | (8,219 | ) | |||
Ending balance at December 31, 2014 | $ | — | |||
Contingently Redeemable Convertible Series C Preferred Stock | |||||
In connection with the Financing the Company issued 87,196 shares of Series C Preferred Stock at $17.50 per share, initially convertible, subject to adjustments, into 871,960 shares of common stock. | |||||
On November 17, 2014, at a Special Meeting of the Stockholders, the Company received stockholder approval to increase the number of authorized shares of the Company's common stock from 50,000,000 shares to 100,000,000 shares and each share of Series C Preferred Stock then outstanding automatically converted into the number of shares of common stock by the conversion rate then in effect. Accordingly, each share of Series C Preferred Stock was converted into ten shares of common stock and upon conversion the Company reclassified the Series C Preferred Stock out of mezzanine equity into permanent equity and recognized a beneficial conversion feature ("BCF") of $445,000 in equity due to the resolution of the contingent BCF embedded within the Series C Preferred Stock. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income (loss) before taxes for the years ended December 31, 2014, 2013 and 2012 is comprised of the following (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (39,513 | ) | $ | (44,142 | ) | $ | (88,945 | ) | |||
Foreign | 408 | 812 | 290 | |||||||||
Loss before taxes | $ | (39,105 | ) | $ | (43,330 | ) | $ | (88,655 | ) | |||
The provision (benefit) for income taxes for the years ended December 31, 2014, 2013 and 2012 is comprised of the following (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | (248 | ) | $ | — | |||||
State | 21 | 33 | 29 | |||||||||
Foreign | 16 | (229 | ) | 74 | ||||||||
Total Current | 37 | (444 | ) | 103 | ||||||||
Deferred: | ||||||||||||
Federal | — | 53 | 14 | |||||||||
State | — | — | — | |||||||||
Foreign | 87 | 474 | 494 | |||||||||
Total Deferred | 87 | 527 | 508 | |||||||||
Provision or income taxes | $ | 124 | $ | 83 | $ | 611 | ||||||
The Company’s net deferred tax assets consist of the following (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses | $ | 4,566 | $ | 11,292 | ||||||||
Inventory obsolescence provision | 2,352 | 3,539 | ||||||||||
Depreciation and amortization | 4,137 | 4,136 | ||||||||||
Deferred rent | 555 | 559 | ||||||||||
Net operating loss and tax credit carryforwards | 76,346 | 55,010 | ||||||||||
Stock-based compensation | 1,910 | 4,518 | ||||||||||
Unrecognized tax benefits | 1,296 | 1,190 | ||||||||||
Deferred tax assets | 91,162 | 80,244 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Amortization of acquired intangibles | (388 | ) | (699 | ) | ||||||||
Net deferred tax assets | 90,774 | 79,545 | ||||||||||
Valuation allowance | (90,774 | ) | (79,458 | ) | ||||||||
Net deferred tax assets | $ | — | $ | 87 | ||||||||
The Company recognizes federal, state and foreign current tax liabilities or assets based on its estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carryforwards. The Company records a valuation allowance to reduce any deferred tax assets by the amount of any tax benefits that, based on available evidence and judgment, are not expected to be realized. | ||||||||||||
The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards. | ||||||||||||
After a review of the four sources of taxable income described above and after being in a three year cumulative loss position at the end of 2014, the Company recognized a full valuation allowance. | ||||||||||||
During 2014 and 2013, the Company recognized valuation allowances of $11.3 million and $15.6 million, related to its U.S.-based and Canadian deferred tax assets created in those respective years. As a result, no net income tax benefits resulted in the Company’s statements for operations from the operating losses created during those years. | ||||||||||||
At December 31, 2014, the deferred tax asset valuation allowance consisted of $86.0 million relating to the Company’s domestic deferred tax assets and $4.8 million related to the Company’s Canadian deferred tax assets. At December 31, 2013, the valuation allowance consisted of $74.7 million relating to the Company’s domestic deferred tax assets and $4.7 million related to the Company’s Canadian deferred tax assets. | ||||||||||||
The provision (benefit) for income taxes reconciles to the amount computed by applying the statutory federal income tax rate of 34% in 2014, 2013 and 2012 to income (loss) before provision for income taxes as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax benefit, at statutory rate | $ | (13,447 | ) | $ | (14,732 | ) | $ | (30,142 | ) | |||
State benefit, net of federal benefit | (1,054 | ) | (922 | ) | (757 | ) | ||||||
Change in valuation allowance | 11,316 | 15,577 | 27,486 | |||||||||
Change in fair value of warrant | 1,203 | — | — | |||||||||
Beneficial conversion feature | 163 | — | — | |||||||||
Research and development credits | 3 | (1,084 | ) | (856 | ) | |||||||
Share-based compensation | 2,402 | 2,433 | 1,616 | |||||||||
Uncertain tax positions | (62 | ) | (307 | ) | (46 | ) | ||||||
Goodwill impairment | — | — | 3,700 | |||||||||
Change in state apportionment | (347 | ) | (767 | ) | — | |||||||
Other | (53 | ) | (115 | ) | (390 | ) | ||||||
$ | 124 | $ | 83 | $ | 611 | |||||||
At December 31, 2014, the Company has U.S. federal net operating loss carryforwards of approximately $174.3 million. Federal net operating loss carryforwards expire at various dates from 2029 through 2034. The Company has California net operating loss carryforwards of approximately $67.1 million, which expire at various dates from 2017 through 2034. The Company has California research and development tax credit carryforwards of approximately $5.4 million. The California tax credits have no expiration date. The Company also has federal research and development tax credit carryforwards of approximately $4.3 million. The federal tax credits expire at various dates from 2027 through 2034. | ||||||||||||
Pursuant to Internal Revenue Code (IRC) Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company is in the process of completing an IRC Section 382/383 analysis and expects to have this analysis completed within the next three months. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact the Company’s effective tax rate. | ||||||||||||
It is the Company’s intention to reinvest undistributed earnings of its foreign subsidiaries and thereby indefinitely postpone their remittance. Accordingly, no provision has been made for foreign withholding taxes on United States income taxes which may become payable if undistributed earnings of the foreign subsidiary were paid as dividends to the Company. | ||||||||||||
The Company follows the accounting guidance related to financial statement recognition, measurement and disclosure of uncertain tax positions. The Company recognizes the impact of an uncertain income tax position on an income tax return 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. During the years ended December 31, 2014 and 2013, the Company recognized approximately $61,000 and $71,000, respectively, of income tax benefit plus $0 and $236,000, respectively, of associated interest due to expiration of the applicable statutes of limitations applicable to certain tax years. As of December 31, 2014 and 2013, the total liability for unrecognized tax benefits was $0 and $61,000, respectively, and is included in other long-term liabilities. | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Amount | ||||||||||||
Unrecognized tax benefits balance at December 31, 2012 | $ | 33,220 | ||||||||||
Increases related to current and prior year tax positions | 2,653 | |||||||||||
Settlements and lapses in statutes of limitations | (373 | ) | ||||||||||
Unrecognized tax benefits balance at December 31, 2013 | 35,500 | |||||||||||
Increases related to current and prior year tax positions | 204 | |||||||||||
Settlements and lapses in statutes of limitations | (61 | ) | ||||||||||
Unrecognized tax benefits balance at December 31, 2014 | $ | 35,643 | ||||||||||
There are no tax benefits that, if recognized, would affect the effective tax rate that are included in the balances of unrecognized tax benefits at December 31, 2014. | ||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 31, 2014, the same as in 2013, the Company recorded $0 of accrued interest related to uncertain tax positions. | ||||||||||||
The Company and its subsidiaries file U.S., state, and foreign income tax returns in jurisdictions with various statutes of limitations. In the fourth quarter of 2014, the Company reduced its uncertain tax liability by approximately $61,000, due to the expiration of the statute of limitations applicable to the 2009 taxable year. The Company is also subject to various federal income tax examinations for the 2003 through 2013 calendar years due to the availability of net operating loss carryforwards. The Company believes appropriate provisions for all outstanding issues have been made for all jurisdictions and all open years. However, because audit outcomes and the timing of audit settlements are subject to significant uncertainty, the Company’s current estimate of the total amounts of unrecognized tax benefits could increase or decrease for all open years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Leases | ||||
The Company leases its office space and certain equipment under non-cancellable operating leases with various terms through 2017. The minimum annual rent on the Company’s office space is subject to increases based on stated rental adjustment terms, property taxes and operating costs and contains rent concessions. For financial reporting purposes, rent expense is recognized on a straight-line basis over the term of the lease. Accordingly, rent expense recognized in excess of rent paid is reflected as deferred rent. Rental expense under operating leases in 2014, 2013 and 2012 was $3.0 million, $4.1 million and $4.5 million, respectively. The Company’s office space lease contains incentives in the form of reimbursement from the landlord for a portion of the costs of leasehold improvements incurred by the Company which are recorded to rent expense on a straight-line basis over the term of the lease. | ||||
The minimum future lease payments under non-cancellable operating leases as of December 31, 2014 are as follows (in thousands): | ||||
For the Period Ending December 31, | Amount | |||
2015 | $ | 2,744 | ||
2016 | 2,749 | |||
2017 | 537 | |||
2018 | 436 | |||
2019 | 433 | |||
Thereafter | 221 | |||
Total minimum lease payments | $ | 7,120 | ||
Committed Purchase Orders | ||||
The Company has entered into purchase commitments totaling approximately $55.0 million with certain contract manufacturers under which the Company has committed to buy a minimum amount of designated products between January 2015 and December 2015. In certain of these agreements, the Company may be required to acquire and pay for such products up to the prescribed minimum or forecasted purchases. | ||||
Employee Retention Matters | ||||
In connection with the Company’s turnaround efforts, and to retain and encourage employees to assist the Company with its efforts, the Company's Compensation Committee approved an all-employee retention bonus plan ("2014 Retention Bonus Plan") based on achieving certain financial and cash targets. The financial metrics must be met for two consecutive quarter periods during the three quarter periods ending March 31, 2015. At December 31, 2014, the Company accrued approximately $5.5 million of the maximum total target bonus expense based on the Company's financial results for the quarter ended December 31, 2014 and the assessment of the probability of the achievement of the remaining metrics in March 31, 2015. The bonus is being recognized over the requisite service period and the total estimated expense under the 2014 Retention Bonus Plan is $11.0 million in the event the remaining metrics are achieved on March 31, 2015. | ||||
Legal Matters | ||||
The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. For example, the Company is currently named as a defendant or co-defendant in some patent infringement lawsuits in the U.S. and is indirectly participating in other U.S. patent infringement actions pursuant to its contractual indemnification obligations to certain customers. Based on an evaluation of these matters and discussions with the Company’s intellectual property litigation counsel, the Company believes that liabilities arising from or sums paid in settlement of these existing matters would not have a material adverse effect on its consolidated results of operations or financial condition. | ||||
On September 15, 2008 and September 18, 2008, two putative securities class action lawsuits were filed in the U.S. District Court for the Southern District of California (the “Court”) on behalf of alleged stockholders of the Company. On December 11, 2008, these lawsuits were consolidated into a single action and in May 2010, the consolidated lawsuits were captioned the case In re Novatel Wireless Securities Litigation (the “Litigation”). The Litigation was filed on behalf of persons who purchased the Company’s common stock between February 27, 2007 and September 15, 2008. | ||||
On June 23, 2014, the Court entered its judgment approving a final settlement agreement with respect to the Litigation. The settlement agreement does not admit any liability, and the Company and the individual defendants continue to deny any and all liability. Under the terms of the settlement agreement, the plaintiff class agreed to settle all claims asserted in the Litigation and granted the defendants and released parties a full and complete release in exchange for (i) a cash payment of $6.0 million to the plaintiff’s class, approximately $1.7 million of which was to be funded by the Company’s insurers, (ii) the issuance of unrestricted and freely tradable shares of the Company’s stock with an aggregate value of $5.0 million and (iii) the issuance of a $5.0 million secured promissory note, which such note shall having a 30-month maturity, carrying interest at 5% per annum, payable quarterly, and being secured by the accounts receivable of the Company. | ||||
On July 1, 2014, the Company and the individual defendants filed a motion to amend the judgment entered on June 23, 2014, specifically requesting the Court to amend the effective date of such judgment to June 20, 2014 - the date the court held the final approval hearing. The Court granted this motion on July 8, 2014, and the judgment date was deemed entered on June 20, 2014. | ||||
On July 8, 2014, the Company funded the cash portion of the settlement with $4.3 million of Company cash and $1.7 million previously funded into escrow by the Company’s insurers. On July 17, 2014, the Company issued 2,407,318 unrestricted shares of the Company’s common stock to the class members in satisfaction of the $5.0 million stock payment. The Company also issued a $5.0 million secured promissory note on July 8, 2014, which was paid off by the Company during the fourth quarter of 2014. | ||||
On November 17, 2014, the Court granted Plaintiff’s motion to enforce the Settlement and the Court agreed with the Plaintiffs to use an intra-day trading price of the Company's stock for valuation purposes and not the closing price, and accordingly, the Company owed $789,600 which was paid by the Company on December 16, 2014. | ||||
As of December 31, 2014, there were no further liabilities accrued in connection with the Litigation. | ||||
Credit Facility | ||||
On October 31, 2014, the Company and one of its subsidiaries entered into the Revolver with Wells Fargo Bank, National Association. The amount of borrowings that may be made under the Revolver are based on a borrowing base and are comprised of a specified percentage of eligible receivables. If, at any time during the term of the Revolver, the amount of borrowings outstanding under the Revolver exceeds the borrowing base then in effect or the maximum revolver amount of $25.0 million, the Company is required to repay such borrowings in an amount sufficient to eliminate such excess. the Revolver includes $3.0 million of availability for letters of credit. At December 31, 2014, the balance of the revolving credit facility was approximately $5.2 million and the Company had available borrowings of approximately $12.1 million. At December 31, 2014, the Company was in compliance with all financial covenants contained in the credit agreement. (see Note 6) | ||||
Under the terms of the Revolver, we are prohibited from declaring or paying any cash dividends on our common stock. | ||||
On November 19, 2014, the Company terminated its existing margin credit facility with one of the banks that held the Company's marketable securities. Borrowings under this facility were collateralized by the Company's cash and cash equivalents and marketable securities on deposit at the bank. During the twelve months ended December 31, 2014, the Company did not borrow against the facility and had no outstanding borrowings under this facility at December 31, 2014. |
Segment_Information_and_Concen
Segment Information and Concentrations of Risk | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Information and Concentrations of Risk | Segment Information and Concentrations of Risk | |||||||||||
Segment Information | ||||||||||||
The Company operates in the wireless broadband technology industry and senior management makes decisions about allocating resources based on the following reportable segments: | ||||||||||||
The Mobile Computing Products segment includes the Company's MiFi brand of Intelligent Mobile Hotspot devices, USB modems and embedded modules that enable data transmission and services via cellular wireless networks. All products within the segment represent a single product family. | ||||||||||||
The M2M Products and Solutions segment includes the Company's M2M embedded modules, integrated M2M communications devices and our service delivery platform, the N4ATM DM and N4ATM CMS that provides easy device management and service enablement. | ||||||||||||
Segment net revenues and segment operating losses represent the primary financial measures used by senior management to assess performance and include the net revenues, cost of net revenues, sales and other operating expenses for which management is held accountable. Segment operating expenses include sales and marketing, research and development, general and administrative and amortization expenses that are directly related to individual segments. Segment losses also include acquisition-related costs, purchase price amortization, impairment charges, restructuring and integration costs. | ||||||||||||
The table below presents net revenues from external customers, operating loss and identifiable assets for our reportable segments (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues by reportable segment: | ||||||||||||
Mobile Computing Products | $ | 145,500 | $ | 297,499 | $ | 312,508 | ||||||
M2M Products and Solutions | 39,745 | 37,554 | 31,780 | |||||||||
Total | $ | 185,245 | $ | 335,053 | $ | 344,288 | ||||||
Operating loss: | ||||||||||||
Mobile Computing Products | $ | (23,339 | ) | $ | (27,939 | ) | $ | (22,924 | ) | |||
M2M Products and Solutions | (12,234 | ) | (15,282 | ) | (65,819 | ) | ||||||
Total | $ | (35,573 | ) | $ | (43,221 | ) | $ | (88,743 | ) | |||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Identifiable assets by reportable segment: | ||||||||||||
Mobile Computing Products | $ | 79,368 | $ | 96,516 | ||||||||
M2M Products and Solutions | 15,652 | 14,949 | ||||||||||
Total | $ | 95,020 | $ | 111,465 | ||||||||
The Company has operations in the United States, Canada, Europe, Latin America and Asia. The following table details the geographic concentration of the Company’s assets in the United States, Canada, Europe, Latin America and Asia (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
United States | $ | 91,843 | $ | 108,932 | ||||||||
Canada | 587 | 808 | ||||||||||
Europe, Latin America and Asia | 2,590 | 1,725 | ||||||||||
$ | 95,020 | $ | 111,465 | |||||||||
The following table details the Company’s concentration of net revenues by geographic region based on shipping destination: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States and Canada | 91.2 | % | 95.6 | % | 93.1 | % | ||||||
Latin America | 1 | 0.8 | 2.4 | |||||||||
Europe, Middle East, Africa and other | 6.6 | 3.4 | 4.1 | |||||||||
Asia and Australia | 1.2 | 0.2 | 0.4 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
Concentrations of Risk | ||||||||||||
Substantially all of the Company’s net revenues are derived from sales of wireless access products. Any significant decline in market acceptance of the Company’s products or in the financial condition of the Company’s customers would have an adverse effect on the Company’s results of operations and financial condition. | ||||||||||||
A significant portion of the Company’s net revenues come from a small number of customers. One customer accounted for 51.6% , 58.0% and 57.5% of 2014, 2013 and 2012 net revenues, respectively. All significant customers are included in the Company’s Mobile Computing Products segment. | ||||||||||||
A significant portion of the Company’s accounts receivables comes from a small number of customers. At December 31, 2014, the Company had one customer who accounted for 46.1% of total accounts receivable. At December 31, 2013, the Company had three customers who accounted for 24.5%, 12.6% and 12.0% of total accounts receivable. | ||||||||||||
The Company outsources its manufacturing to several third-party manufacturers. If they were to experience delays, disruptions, capacity constraints or quality control problems in its manufacturing operations, product shipments to the Company’s customers could be delayed or its customers could consequently elect to cancel the underlying order, which would negatively impact the Company’s net revenues and results of operations. |
Retirement_Savings_Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Savings Plan | Retirement Savings Plan |
The Company has a defined contribution 401(K) retirement savings plan (the “Plan”). Substantially all of the Company’s U.S. employees are eligible to participate in the Plan after meeting certain minimum age and service requirements. Effective August 1, 2014, the Company suspended its matching program. Employees may make discretionary contributions to the Plan subject to Internal Revenue Service limitations. Employer matching contributions under the plan amounted to approximately $579,000, $1.0 million and $1.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Employer matching contributions vest over a two-year period. The Company has a registered retirement savings plan for its Canadian employees. Substantially all of the Company’s Canadian employees are eligible to participate in this plan. Employees make discretionary contributions to the plan subject to local limitations. Employer contributions to the Canadian plan amounted to approximately $26,000, $157,000 and $232,000 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructuring | Restructuring | |||||||||||||||||||
In September 2013, the Company commenced certain restructuring initiatives (“2013 Initiatives”) including the closure of the Company’s development site in Calgary, Canada, and the consolidation of certain supply chain management activities. During February and March 2014, the Company commenced additional reduction in force initiatives resulting in headcount reductions of 41 employees and 21 employees, respectively, and during June 2014 a further headcount reduction of five employees at its Calgary, Canada site. | ||||||||||||||||||||
In connection with the 2013 Initiatives and for the twelve months ended December 31, 2014, the Company recorded restructuring charges of $2.9 million, which consisted of $1.7 million in employee severance costs and $1.2 million in facility exit related costs related to ongoing assessment of estimates of the timing and amounts of sublease income. | ||||||||||||||||||||
Total restructuring charges incurred to date relating to the 2013 Initiatives discussed above, are approximately $6.2 million, including restructuring charges recorded during the year ended December 31, 2013 of approximately $3.3 million. | ||||||||||||||||||||
The Company accounts for facility exit costs in accordance with FASB ASC Topic 420, Exit or Disposal Cost Obligations, which requires that a liability for such costs be recognized and measured initially at fair value on the cease-use date based on remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized, reduced by the estimated sublease rentals that could be reasonably obtained even if it is not the intent to sublease. | ||||||||||||||||||||
The Company is required to estimate future sublease income and future net operating expenses of the facilities, among other expenses. The most significant of these estimates relate to the timing and extent of future sublease income which reduce lease obligations, and the probability that such sublease income will be realized. The Company based estimates of sublease income, in part, on information from third party real estate experts, current market conditions and rental rates, an assessment of the time period over which reasonable estimates could be made, and the location of the respective facility, among other factors. Further adjustments to the facility exit liability accrual will be required in future periods if actual exit costs or sublease income differ from amounts currently expected. Exit costs the Company records under these provisions are neither associated with, nor do they benefit, continuing activities. | ||||||||||||||||||||
In June 2014, the Company commenced certain restructuring initiatives relating to the reorganization of executive level management (“2014 Initiatives”), which included among other actions the replacement of the former Chief Executive Officer with the current Chief Executive Officer. In connection with the 2014 Initiatives, and for the twelve months ended December 31, 2014, the Company recorded restructuring charges of approximately $4.9 million, including approximately $1.3 million related to the accelerated vesting of all of former Chief Executive Officer's restricted stock units and options which vested immediately upon his departure. | ||||||||||||||||||||
The following table sets forth activity in the restructuring liability for the twelve months ended December 31, 2014 (in thousands): | ||||||||||||||||||||
2013 Initiatives | 2014 Initiatives | |||||||||||||||||||
Employee | Facility Exit | Employment Contract | Share-based Compensation Costs | Total | ||||||||||||||||
Severance | Related Costs | Costs | ||||||||||||||||||
Costs | ||||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 881 | $ | — | $ | — | $ | 881 | ||||||||||
Accruals | 1,713 | 1,170 | 3,579 | 1,298 | 7,760 | |||||||||||||||
Payments | (1,713 | ) | (1,819 | ) | (1,828 | ) | — | (5,360 | ) | |||||||||||
Share-based compensation | — | — | — | (1,298 | ) | (1,298 | ) | |||||||||||||
Balance at December 31, 2014 | $ | — | $ | 232 | $ | 1,751 | $ | — | $ | 1,983 | ||||||||||
The balance of the restructuring liability at December 31, 2014 consists of approximately $1.9 million in current liabilities and $60,000 in non-current liabilities. The balance of the restructuring liability at December 31, 2014 is anticipated to be fully distributed by the end of 2016, at the expiration of the Company’s facility lease in San Diego. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) | |||||||||||||||
The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2014 and 2013. | ||||||||||||||||
Quarter | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
2014 | ||||||||||||||||
Net revenues | $ | 48,284 | $ | 37,270 | $ | 44,330 | $ | 55,361 | ||||||||
Gross profit | 10,068 | 3,987 | 10,486 | 12,506 | ||||||||||||
Net loss attributable to common shareholders | (8,981 | ) | (17,415 | ) | (8,832 | ) | (4,446 | ) | ||||||||
Basic net loss per common share | (0.26 | ) | (0.51 | ) | (0.23 | ) | (0.10 | ) | ||||||||
Diluted net loss per common share | (0.26 | ) | (0.51 | ) | (0.23 | ) | (0.13 | ) | ||||||||
2013 | ||||||||||||||||
Net revenues | $ | 85,921 | $ | 91,124 | $ | 92,673 | $ | 65,335 | ||||||||
Gross profit | 16,848 | 19,024 | 20,383 | 12,039 | ||||||||||||
Net loss attributable to common shareholders | (9,122 | ) | (7,892 | ) | (5,093 | ) | (21,306 | ) | ||||||||
Basic and diluted net loss per common share | (0.27 | ) | (0.23 | ) | (0.15 | ) | (0.63 | ) |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II | |||||||||||||||
NOVATEL WIRELESS, INC. | ||||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||
Balance At | Additions | Deductions | Balance | |||||||||||||
Beginning | Charged to | From | At End | |||||||||||||
of Year | Operations | Reserves | of Year | |||||||||||||
Allowance for Doubtful Accounts: | ||||||||||||||||
31-Dec-14 | $ | 2,449 | $ | 86 | $ | 2,318 | $ | 217 | ||||||||
31-Dec-13 | 627 | 1,936 | 114 | 2,449 | ||||||||||||
31-Dec-12 | 245 | 439 | 57 | 627 | ||||||||||||
Warranty: | ||||||||||||||||
31-Dec-14 | 2,244 | 1,345 | 2,393 | 1,196 | ||||||||||||
31-Dec-13 | 2,329 | 5,055 | 5,140 | 2,244 | ||||||||||||
31-Dec-12 | 1,525 | 6,261 | 5,457 | 2,329 | ||||||||||||
Deferred Tax Asset Valuation Allowance: | ||||||||||||||||
31-Dec-14 | 79,458 | 11,316 | — | 90,774 | ||||||||||||
31-Dec-13 | 63,881 | 15,577 | — | 79,458 | ||||||||||||
31-Dec-12 | 36,395 | 27,486 | — | 63,881 | ||||||||||||
Sales Returns and Allowances: | ||||||||||||||||
31-Dec-14 | 727 | — | 572 | 155 | ||||||||||||
31-Dec-13 | 911 | 196 | 380 | 727 | ||||||||||||
31-Dec-12 | 545 | 497 | 131 | 911 | ||||||||||||
Nature_of_Business_and_Signifi1
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | ur ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. If events or circumstances occur such that we do not meet our operating plan as expected, we may be required to reduce planned research and development activities, incur additional restructuring charges or reduce other operating expenses which could have an adverse impact on our ability to achieve our intended business objectives. These additional reductions in expenditures , if required, could have an adverse impact on our ability to achieve certain of our business objectives during 2015. We believe our working capital resources are sufficient to fund our operations through at least December 31, 2015. |
Principles of Consolidation | Principles of Consolidation |
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities. Actual results could differ materially from these estimates. Significant estimates include allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of intangible and long-lived assets, fair value of warrant liability, accruals relating to litigation, restructuring, and retention bonus, provision for warranty costs, income taxes and share-based compensation expense. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include highly liquid investments with original maturities of three months or less. Cash and cash equivalents consist of demand deposits, US Treasury securities, and money market funds. Cash and cash equivalents are recorded at market value, which approximates cost. Gains and losses associated with the Company’s foreign currency denominated demand deposits are recorded as a component of other income (expense). | |
Allowance for Doubtful Accounts Receivable | Allowance for Doubtful Accounts Receivable |
The Company provides an allowance for its accounts receivable for estimated losses that may result from its customers’ inability to pay. The Company determines the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, and changes in customer payment cycles and our customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged or written off against this allowance. To minimize the likelihood of uncollectibility, the Company reviews its customers’ credit-worthiness periodically based on credit scores generated by independent credit reporting services, its experience with its customers and the economic condition of its customers’ industries. Material differences may result in the amount and timing of expense for any period if the Company were to make different judgments or utilize different estimates. | |
Marketable Securities | Marketable Securities |
Marketable securities predominantly consist of highly liquid debt investments with a maturity of greater than three months when purchased. The Company did not have any short or long-term marketable securities at December 31, 2014. All of the Company’s marketable debt securities are treated as “available-for-sale.” While it is the Company’s intent to hold its debt securities until maturity, the Company may sell certain securities for cash flow purposes. Thus, the Company’s marketable debt securities are classified as available-for-sale and are carried on the balance sheet at fair value with the related unrealized gains and losses included in accumulated other comprehensive loss, a component of stockholders’ equity. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method. The Company determines the fair value of its financial assets and liabilities by reference to the hierarchy of inputs which consists of three levels: Level 1 fair values are valuations based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
All securities whose maturity or sale is expected within one year are classified as “current” on the consolidated balance sheet. All other securities are classified as “long-term” on the consolidated balance sheet. | |
Inventories and Provision for Excess and Obsolete Inventory | Inventories and Provision for Excess and Obsolete Inventory |
Inventories are stated at the lower of cost (first-in, first-out method) or market. Shipping and handling costs are classified as a component of cost of net revenues in the consolidated statements of operations. The Company reviews the components of its inventory and its inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances or new product introductions by the Company or its customers that vary from its current expectations. Whenever inventory is written down, a new cost basis is established and the inventory is not subsequently written up if market conditions improve. | |
The Company believes that, when made, the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demand for the Company’s inventory is substantially less than its estimates, inventory write-downs may be required, which could have a material adverse effect on its consolidated financial statements. | |
Property and Equipment | Property and Equipment |
Property and equipment are initially stated at cost and depreciated using the straight-line method. Test equipment, computer equipment, purchased software, furniture, and fixtures and product tooling are depreciated over lives ranging from eighteen months to five years and leasehold improvements are depreciated over the shorter of the related remaining lease period or useful life. Amortization of assets held under capital leases is included in depreciation expense. | |
Expenditures for repairs and maintenance are expensed as incurred. Expenditures for major renewals and betterments that extend the useful lives of existing property and equipment are capitalized and depreciated. Upon retirement or disposition of property and equipment, any resulting gain or loss is recognized in the consolidated statements of operations. | |
Intangible Assets | Intangible Assets |
Intangible assets include purchased intangible assets acquired from Enfora, Inc. (“Enfora”) on November 30, 2010 and the costs of non-exclusive and perpetual worldwide software technology licenses. These costs are amortized on an accelerated basis or on a straight-line basis over the estimated useful lives of the assets, depending on the anticipated utilization of the asset. The majority of intangible assets relate to the developed technologies and trade name resulting from the acquisition of Enfora. Developed technologies are amortized on a straight-line basis over the remaining one year useful life. Trade name is amortized on a straight-line basis over the remaining useful life of three years. | |
Long-Lived Assets | Long-Lived Assets |
The Company periodically evaluates the carrying value of the unamortized balances of its long-lived assets, including property and equipment and intangible assets, to determine whether impairment of these assets has occurred or whether a revision to the related amortization periods should be made. When the carrying value of an asset exceeds the associated undiscounted expected future cash flows, it is considered to be impaired and is written down to fair value. Fair value is determined based on an evaluation of the assets associated undiscounted future cash flows or appraised value. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each class of asset. If management’s evaluation indicates that the carrying values of these assets are impaired, such impairment is recognized by a reduction of the applicable asset carrying value to its estimated fair value and the impairment is expensed as a part of continuing operations. | |
Goodwill | Goodwill |
Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill is allocated as of the date of the business combination to the reporting units that are expected to benefit from the synergies of the business combination. Goodwill is considered to be impaired if the Company determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds its estimated fair value. As of December 31, 2014, all historical goodwill had been fully impaired. | |
Contingent Consideration | . |
Revenue Recognition | Revenue Recognition |
The Company’s revenue is principally generated from the sale of wireless modems to wireless operators, OEM customers and value added resellers and distributors. In addition, the Company generates revenue from the sale of asset-management solutions utilizing wireless technology and M2M communication devices predominantly to transportation and industrial companies, medical device manufacturers and security system providers. Revenue from product sales is generally recognized upon the later of transfer of title or delivery of the product to the customer. Where the transfer of title or risk of loss is contingent on the customer’s acceptance of the product, we will not recognize revenue until both title and risk of loss have transferred to the customer. We record deferred revenue for cash payments received from customers in advance of when revenue recognition criteria are met. We have granted price protection to certain customers in accordance with the provisions of the respective contracts and track pricing and other terms offered to customers buying similar products to assess compliance with these provisions. We estimate the amount of price protection for current period product sales utilizing historical experience and information regarding customer inventory levels. To date, we have not incurred material price protection obligations. Revenues from sales to certain customers are subject to cooperative advertising allowances. Cooperative advertising allowances are recorded as an operating expense to the extent that the advertising benefit is separable from the revenue transaction and the fair value of that advertising benefit is determinable. To the extent that such allowances either do not provide a separable benefit to us, or the fair value of the advertising benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. We establish reserves for estimated product returns allowances in the period in which revenue is recognized. In estimating future product returns, we consider various factors, including our stated return policies and practices and historical trends. | |
Predominantly all of our revenues represent the sale of hardware with accompanied software that is essential to the functionality of the hardware. The Company records revenue associated with the agreed upon price on hardware sales, and accrues any estimated costs of post-delivery performance obligations such as warranty obligations. The Company considers the four basic revenue recognition criteria discussed under Staff Accounting Bulletin No. 104 when assessing appropriate revenue recognition as follows: | |
Criterion #1—Persuasive evidence of an arrangement must exist; | |
Criterion #2—Delivery has occurred; | |
Criterion #3—The Company’s price to the buyer must be fixed or determinable; and, | |
Criterion #4—Collectability is reasonably assured. | |
For multiple element arrangements, total consideration received from customers is allocated to the elements. This may include hardware, non-essential software elements and/or essential software, based on a relative selling price. The accounting guidance establishes a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendors specific objective evidence (VSOE), (ii) third party evidence (TPE), and (iii) best estimate of selling price (BESP). Because the Company has neither VSOE nor TPE, revenue has been based on the Company’s BESP. Amounts allocated to the delivered hardware and the related essential software are recognized at the time of the sale provided all other revenue recognition criteria have been met. Amounts allocated to other deliverables based upon BESP are recognized in the period the revenue recognition criteria have been met. | |
Our process for determining its BESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Our prices are determined based upon cost to produce our products, expected order quantities, acceptance in the marketplace and internal pricing parameters. In addition, when developing BESPs for products we may consider other factors as appropriate including the pricing of competitive alternatives if they exist, and product-specific business objectives. | |
We account for nonessential software licenses and related post contract support (PCS) under multiple element arrangements by recognizing revenue for such arrangements ratably over the term of the PCS as we have not established VSOE for the PCS element. | |
For the years ended December 31, 2014, 2013 and 2012, we have not recorded any significant revenues from multiple element or software arrangements. | |
Research and Development Costs | Research and Development Costs |
Research and development costs are expensed as incurred. | |
Warranty Costs | Warranty Costs |
The Company accrues warranty costs based on estimates of future warranty related replacement, repairs or rework of products. Our warranty policy generally provides one to three years of coverage for products following the date of purchase. The Company’s policy is to accrue the estimated cost of warranty coverage as a component of cost of revenue in the accompanying consolidated statements of operations at the time revenue is recognized. In estimating our future warranty obligations the Company considers various factors, including the historical frequency and volume of claims and the cost to replace or repair products under warranty. The warranty provision for our products is determined by using a financial model to estimate future warranty costs. The Company’s financial model takes into consideration actual product failure rates; estimated replacement, repair or rework expenses; and potential risks associated with our different products. The risk levels, warranty cost information and failure rates used within this model are reviewed throughout the year and updated, if and when, these inputs change. | |
Income Taxes | Income Taxes |
The Company recognizes federal, state and foreign current tax liabilities or assets based on our estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. The Company evaluates deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence. If the Company is unable to generate sufficient future taxable income in certain tax jurisdictions, or if there is a material change in the actual effective tax rates or time period within which the underlying temporary differences become taxable or deductible, the Company could be required to increase its valuation allowance against its deferred tax assets which could result in an increase in the Company’s effective tax rate and an adverse impact on operating results. The Company will continue to evaluate the necessity of the valuation allowance based on the remaining deferred tax assets. | |
The Company follows the accounting guidance related to financial statement recognition, measurement and disclosure of uncertain tax positions. The Company recognizes the impact of an uncertain income tax position on an income tax return 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. Uncertain tax positions are recognized in the first subsequent financial reporting period in which that threshold is met or from changes in circumstances such as the expiration of applicable statutes of limitations. | |
Litigation | Litigation |
The Company is currently involved in certain legal proceedings. The Company will record a loss when the Company determines information available prior to the issuance of the financial statements indicates the loss is both probable and estimable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending litigation and revises its estimates, if necessary. The Company’s policy is to expense litigation costs as incurred. | |
Share-Based Compensation | Share-Based Compensation |
The Company has granted stock options to employees and restricted stock units. The Company also has an employee stock purchase plan (“ESPP”) for eligible employees. The Company measures the compensation cost associated with all share-based payments based on grant date fair values. The fair value of each employee stock option and employee stock purchase right is estimated on the date of grant using an option pricing model that meets certain requirements. The Company currently uses the Black-Scholes option pricing model to estimate the fair value of its stock options and stock purchase rights. The Black-Scholes model is considered an acceptable model but the fair values generated by it may not be indicative of the actual fair values of our equity awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements as well as limited transferability. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. | |
For grants of stock options, the Company uses a blend of historical and implied volatility for traded options on its stock in order to estimate the expected volatility assumption required in the Black-Scholes model. The Company’s use of a blended volatility estimate in computing the expected volatility assumption for stock options is based on its belief that while that implied volatility is representative of expected future volatility, the historical volatility over the expected term of the award is also an indicator of expected future volatility. Due to the short duration of employee stock purchase rights under our ESPP, the Company utilizes historical volatility in order to estimate the expected volatility assumption of the Black-Scholes model. | |
The expected term of stock options granted is estimated using historical experience. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our stock options and employee stock purchase rights. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. The Company estimates forfeitures at the time of grant and revises these estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates its forfeiture rate assumption for all types of share based compensation awards based historical forfeiture rates related to each category of award. | |
Compensation cost associated with grants of restricted stock units are measured at fair value, which has historically been the closing price of the Company’s stock on the date of grant. | |
The Company recognizes share-based compensation expense using the straight-line method for awards that contain only service conditions. For awards that contain performance conditions, the Company recognizes the share-based compensation expense on a straight-line basis for each vesting tranche. | |
The Company evaluates the assumptions used to value stock awards on a quarterly basis. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what it has recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned share-based compensation expense. | |
Computation of Net Income (Loss) Per Share | Computation of Net Loss Per Share Attributable to Common Shareholders |
The Company computes basic and diluted per share data for all periods for which a statement of operations is presented. Basic net loss per share excludes dilution and is computed by dividing the net loss by the weighted-average number of shares that were outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to acquire common stock were exercised or converted into common stock. Potential dilutive securities are excluded from the diluted EPS computation in loss periods as their effect would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
The Company’s fair value measurements relate to its cash equivalents, marketable debt securities, and marketable equity securities, which are classified pursuant to authoritative guidance for fair value measurements. The Company places its cash equivalents and marketable debt securities in instruments that meet credit quality standards, as specified in its investment policy guidelines. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. | |
Our financial instruments consist principally of cash and cash equivalents, short-term and long-term marketable securities, warrants and short-term and long-term debt. The Company’s cash and cash equivalents consist of our investments in money market securities, time deposits with maturities of less than three months and treasury bills. The Company’s marketable securities consist primarily of government agency securities, municipal bonds, time deposits and investment-grade corporate bonds. From time to time, the Company may utilize foreign exchange forward contracts. These contracts are valued using pricing models that take into account the currency rates as of the balance sheet date. | |
Comprehensive Loss | Comprehensive Loss |
Comprehensive loss consists of net earnings and unrealized gains and losses on available-for-sale securities. | |
Recent Accounting Pronouncements | |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”), which are adopted by the Company as of the specified date. Unless otherwise discussed, management believes the impact of recently issued standards, which are not yet effective, will not have a material impact on its consolidated financial statements upon adoption. | |
In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. The Company is currently evaluating the potential changes from this ASU to its future financial reporting and disclosures. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Entities are required to apply the standard for annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. The Company is currently assessing the impact of this new guidance. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires a reporting entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This standard will be effective for annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of this new guidance. | |
Fair Value Measurement | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. |
We classify our inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | |
Level 1: Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2: Pricing inputs include benchmark yields, trade data, reported trades and broker dealer quotes, two-sided markets and industry and economic events, yield to maturity, Municipal Securities Rule Making Board reported trades and vendor trading platform data. Level 2 includes those financial instruments that are valued using various pricing services and broker pricing information including Electronic Communication Networks and broker feeds. | |
Level 3: Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions. | |
Segment Information | Segment Information |
The Company operates in the wireless broadband technology industry and senior management makes decisions about allocating resources based on the following reportable segments: | |
The Mobile Computing Products segment includes the Company's MiFi brand of Intelligent Mobile Hotspot devices, USB modems and embedded modules that enable data transmission and services via cellular wireless networks. All products within the segment represent a single product family. | |
The M2M Products and Solutions segment includes the Company's M2M embedded modules, integrated M2M communications devices and our service delivery platform, the N4ATM DM and N4ATM CMS that provides easy device management and service enablement. | |
Segment net revenues and segment operating losses represent the primary financial measures used by senior management to assess performance and include the net revenues, cost of net revenues, sales and other operating expenses for which management is held accountable. Segment operating expenses include sales and marketing, research and development, general and administrative and amortization expenses that are directly related to individual segments. Segment losses also include acquisition-related costs, purchase price amortization, impairment charges, restructuring and integration costs. |
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Summary of Company's Financial Instruments, Fair Value on a Recurring Basis | The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of December 31, 2014 (in thousands): | |||||||||||
Description | Balance as of | Level 1 | Level 2 | |||||||||
December 31, 2014 | ||||||||||||
Assets: | ||||||||||||
Cash equivalents | ||||||||||||
Money market funds | $ | 1,134 | $ | 1,134 | $ | — | ||||||
Certificates of deposit | 980 | — | 980 | |||||||||
Total cash equivalents | $ | 2,114 | $ | 1,134 | $ | 980 | ||||||
The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of December 31, 2013 (in thousands): | ||||||||||||
Description | Balance as of | Level 1 | Level 2 | |||||||||
December 31, 2013 | ||||||||||||
Assets: | ||||||||||||
Cash equivalents | ||||||||||||
US Treasury securities | $ | 487 | $ | — | $ | 487 | ||||||
Total cash equivalents | 487 | — | 487 | |||||||||
Short-term marketable securities: | ||||||||||||
Available-for-sale: | ||||||||||||
Government agency securities | 2,351 | — | 2,351 | |||||||||
Municipal bonds | 2,829 | — | 2,829 | |||||||||
Certificates of deposit | 3,360 | — | 3,360 | |||||||||
Corporate debentures / bonds | 10,638 | — | 10,638 | |||||||||
Total short-term marketable securities | 19,178 | — | 19,178 | |||||||||
Long-term marketable securities: | ||||||||||||
Available-for-sale: | ||||||||||||
Certificates of deposit | 1,300 | — | 1,300 | |||||||||
Corporate debentures / bonds | 2,143 | — | 2,143 | |||||||||
Total long-term marketable securities | 3,443 | — | 3,443 | |||||||||
Total financial assets | $ | 23,108 | $ | — | $ | 23,108 | ||||||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | Carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets are as follows (in thousands): | |||||||||||
As of December 31, 2014 | ||||||||||||
Description | Carrying Amount | Fair Value | ||||||||||
Revolving credit facility | $ | 5,158 | $ | 5,158 | ||||||||
Total other financial instruments | $ | 5,158 | $ | 5,158 | ||||||||
Financial_Statement_Details_Ta
Financial Statement Details (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||
Summary of Marketable Securities Available-for-Sale | ||||||||||||||||||
December 31, 2013 | Maturity in | Amortized | Gross | Gross | Estimated | |||||||||||||
Years | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||||
Available-for-sale: | ||||||||||||||||||
Government agency securities | 1 or less | $ | 2,350 | $ | 1 | $ | — | $ | 2,351 | |||||||||
Municipal bonds | 1 or less | 2,828 | 1 | — | 2,829 | |||||||||||||
Certificates of deposit | 1 or less | 3,360 | — | — | 3,360 | |||||||||||||
Corporate debentures / bonds | 1 or less | 10,635 | 3 | — | 10,638 | |||||||||||||
Total short-term marketable securities | 19,173 | 5 | — | 19,178 | ||||||||||||||
Available-for-sale: | ||||||||||||||||||
Certificates of deposit | 1 to 2 | 1,300 | — | — | 1,300 | |||||||||||||
Corporate debentures / bonds | 1 to 2 | 2,143 | — | — | 2,143 | |||||||||||||
Total long-term marketable securities | 3,443 | — | — | 3,443 | ||||||||||||||
$ | 22,616 | $ | 5 | $ | — | $ | 22,621 | |||||||||||
Summary of Inventories | Inventories consist of the following (in thousands): | |||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Finished goods | $ | 33,045 | $ | 20,870 | ||||||||||||||
Raw materials and components | 4,758 | 6,923 | ||||||||||||||||
$ | 37,803 | $ | 27,793 | |||||||||||||||
Summary of Property and Equipment | Property and equipment consists of the following (in thousands): | |||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Test equipment | $ | 53,019 | $ | 52,108 | ||||||||||||||
Computer equipment and purchased software | 11,247 | 10,814 | ||||||||||||||||
Product tooling | 3,535 | 3,204 | ||||||||||||||||
Furniture and fixtures | 1,824 | 2,015 | ||||||||||||||||
Leasehold improvements | 4,103 | 4,094 | ||||||||||||||||
73,728 | 72,235 | |||||||||||||||||
Less—accumulated depreciation and amortization | (68,449 | ) | (62,334 | ) | ||||||||||||||
$ | 5,279 | $ | 9,901 | |||||||||||||||
Summary of Accrued Expenses | Accrued expenses consist of the following (in thousands): | |||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Royalties | $ | 4,035 | $ | 4,243 | ||||||||||||||
Payroll and related expenses | 8,038 | 4,828 | ||||||||||||||||
Product warranty | 1,196 | 2,244 | ||||||||||||||||
Market development funds and price protection | 2,502 | 3,059 | ||||||||||||||||
Professional fees | 780 | 1,040 | ||||||||||||||||
Deferred revenue | 962 | 2,999 | ||||||||||||||||
Restructuring | 1,886 | 610 | ||||||||||||||||
Other | 4,445 | 4,248 | ||||||||||||||||
$ | 23,844 | $ | 23,271 | |||||||||||||||
Summary of Accrued Warranty Obligations | Accrued warranty obligations consist of the following (in thousands): | |||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Warranty liability at beginning of period | $ | 2,244 | $ | 2,329 | ||||||||||||||
Additions charged to operations | 1,345 | 5,055 | ||||||||||||||||
Deductions from liability | (2,393 | ) | (5,140 | ) | ||||||||||||||
Warranty liability at end of period | $ | 1,196 | $ | 2,244 | ||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Amortizable Purchased Intangible Assets from Acquisition | The Company’s amortizable purchased intangible assets resulting from its 2010 acquisition of Enfora are composed of (in thousands): | |||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Impairment | Net | |||||||||||||||||||||||||
Amortization | Impairment | Amortization | ||||||||||||||||||||||||||||||
Developed technologies | $ | 26,000 | $ | (6,453 | ) | $ | (19,547 | ) | $ | — | $ | 26,000 | $ | (6,120 | ) | $ | (19,547 | ) | $ | 333 | ||||||||||||
Trade name | 12,800 | (3,183 | ) | (8,582 | ) | 1,035 | 12,800 | (2,665 | ) | (8,582 | ) | 1,553 | ||||||||||||||||||||
Other | 3,720 | (2,011 | ) | (1,620 | ) | 89 | 3,720 | (1,967 | ) | (1,620 | ) | 133 | ||||||||||||||||||||
Total amortizable purchased intangible assets | $ | 42,520 | $ | (11,647 | ) | $ | (29,749 | ) | $ | 1,124 | $ | 42,520 | $ | (10,752 | ) | $ | (29,749 | ) | $ | 2,019 | ||||||||||||
Summary of Amortization Expenses of Purchased Intangible Assets | The following table presents details of the amortization of purchased intangible assets included in the cost of net revenues and general and administrative expense categories (in thousands): | |||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cost of net revenues | $ | 333 | $ | 334 | ||||||||||||||||||||||||||||
General and administrative expenses | 562 | 562 | ||||||||||||||||||||||||||||||
Total amortization expense | $ | 895 | $ | 896 | ||||||||||||||||||||||||||||
Schedule of Amortization Expense of Purchased Intangible Assets Expected to be Recognized | The following table presents details of the amortization of existing amortizable purchased intangible assets of Enfora that is currently estimated to be expensed in the future (in thousands): | |||||||||||||||||||||||||||||||
Fiscal year: | Amount | |||||||||||||||||||||||||||||||
2015 | $ | 562 | ||||||||||||||||||||||||||||||
2016 | 562 | |||||||||||||||||||||||||||||||
Total | $ | 1,124 | ||||||||||||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands except per share amounts) | ||||||||||||
Numerator | ||||||||||||
Net loss attributable to common shareholders: | $ | (39,674 | ) | $ | (43,413 | ) | $ | (89,266 | ) | |||
Denominator | ||||||||||||
Weighted-average common shares outstanding | 37,959 | 33,948 | 32,852 | |||||||||
Basic and diluted net loss per share attributable to common shareholders | $ | (1.05 | ) | $ | (1.28 | ) | $ | (2.72 | ) |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Equity [Abstract] | ||||||
Summary of Common Shares Reserved for Future Issuance | The Company has reserved shares of common stock for possible future issuance as of December 31, 2014 and 2013 as follows (in thousands): | |||||
Shares | ||||||
2014 | 2013 | |||||
Common stock warrants outstanding | 4,118 | — | ||||
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans | 3,065 | 3,933 | ||||
Restricted stock units outstanding | 1,629 | 1,108 | ||||
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan | 4,463 | 3,668 | ||||
Shares available under the Employee Stock Purchase Plan | 1,385 | 1,500 | ||||
Total shares of common stock reserved for issuance | 14,660 | 10,209 | ||||
Stock_Incentive_and_Employee_S1
Stock Incentive and Employee Stock Purchase Plans (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
Summary of Share-Based Compensation Expense | For the years ended December 31, 2014, 2013 and 2012, the following table presents total share-based compensation expense in each functional line item on our consolidated statements of operations (in thousands): | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Cost of revenues | $ | 5 | $ | 84 | $ | 747 | ||||||||||||
Research and development | 654 | 1,114 | 3,042 | |||||||||||||||
Sales and marketing | 247 | 669 | 1,403 | |||||||||||||||
General and administrative | 2,682 | 1,576 | 2,308 | |||||||||||||||
Totals | $ | 3,588 | $ | 3,443 | $ | 7,500 | ||||||||||||
Summary of per Share Fair Values of Stock Options Granted under 2009 Plan and Rights Granted under ESPP | The per share fair values of stock options granted under the 2009 Plan and rights granted under the ESPP have been estimated with the following assumptions. | |||||||||||||||||
Employee Stock Options | Employee Stock Purchase Rights | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Expected dividend yield: | — | % | — | % | — | % | — | % | — | % | — | % | ||||||
Risk-free interest rate: | 1.4 | % | 0.8 | % | 0.9 | % | 5.4 | % | — | % | 0.2 | % | ||||||
Volatility: | 80 | % | 63 | % | 63 | % | 53 | % | — | % | 68 | % | ||||||
Expected term (in years): | 4.6 | 6 | 6 | 0.4 | 0 | 1.3 | ||||||||||||
Summary of Stock Option Activity | A summary of stock option activity for the years ended December 31, 2014 and 2013 is presented below (dollars and shares in thousands, except per share data): | |||||||||||||||||
Stock | Weighted | Weighted | Aggregate | |||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||
Outstanding | Exercise | Remaining | Value | |||||||||||||||
Price Per | Contractual | |||||||||||||||||
Option | Term | |||||||||||||||||
(Years) | ||||||||||||||||||
Options outstanding December 31, 2012 | 4,282 | $ | 10.25 | |||||||||||||||
Granted | 425 | 2.1 | ||||||||||||||||
Exercised | (38 | ) | 2.68 | |||||||||||||||
Cancelled | (736 | ) | 10.21 | |||||||||||||||
Options outstanding December 31, 2013 | 3,933 | $ | 9.45 | |||||||||||||||
Granted | 1,658 | 2.92 | ||||||||||||||||
Exercised | (89 | ) | 2.17 | |||||||||||||||
Cancelled | (2,437 | ) | 10.52 | |||||||||||||||
Balance December 31, 2014 | 3,065 | $ | 5.27 | 4.92 years | $ | 1,022 | ||||||||||||
Options Exercisable, December 31, 2014 | 1,769 | $ | 6.8 | 4.99 years | $ | 449 | ||||||||||||
Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity for the year ended December 31, 2014 is presented below (shares in thousands): | |||||||||||||||||
Shares | ||||||||||||||||||
Non-vested at December 31, 2013 | 1,108 | |||||||||||||||||
Granted | 2,659 | |||||||||||||||||
Vested | (1,207 | ) | ||||||||||||||||
Forfeited | (931 | ) | ||||||||||||||||
Non-vested at December 31, 2014 | 1,629 | |||||||||||||||||
Securities_Purchase_Agreement_
Securities Purchase Agreement (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Equity [Abstract] | |||||
Summary of Change to Fair Value of Warrant | The following table shows the change to the fair value of the Warrant during the twelve months ended December 31, 2014 (in thousands): | ||||
Warrant Derivative Liability | |||||
Balance at September 8, 2014 (Transaction Date) | $ | 4,939 | |||
Change in fair value | 3,280 | ||||
Balance at November 17, 2014 (Shareholder Approval Date) | 8,219 | ||||
Reclassification to additional paid-in-capital | (8,219 | ) | |||
Ending balance at December 31, 2014 | $ | — | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Summary of Income Taxes | ||||||||||||
Summary of Income (Loss) before Taxes | Income (loss) before taxes for the years ended December 31, 2014, 2013 and 2012 is comprised of the following (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (39,513 | ) | $ | (44,142 | ) | $ | (88,945 | ) | |||
Foreign | 408 | 812 | 290 | |||||||||
Loss before taxes | $ | (39,105 | ) | $ | (43,330 | ) | $ | (88,655 | ) | |||
Summary of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes for the years ended December 31, 2014, 2013 and 2012 is comprised of the following (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | (248 | ) | $ | — | |||||
State | 21 | 33 | 29 | |||||||||
Foreign | 16 | (229 | ) | 74 | ||||||||
Total Current | 37 | (444 | ) | 103 | ||||||||
Deferred: | ||||||||||||
Federal | — | 53 | 14 | |||||||||
State | — | — | — | |||||||||
Foreign | 87 | 474 | 494 | |||||||||
Total Deferred | 87 | 527 | 508 | |||||||||
Provision or income taxes | $ | 124 | $ | 83 | $ | 611 | ||||||
Summary of Net Deferred Tax Assets | The Company’s net deferred tax assets consist of the following (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses | $ | 4,566 | $ | 11,292 | ||||||||
Inventory obsolescence provision | 2,352 | 3,539 | ||||||||||
Depreciation and amortization | 4,137 | 4,136 | ||||||||||
Deferred rent | 555 | 559 | ||||||||||
Net operating loss and tax credit carryforwards | 76,346 | 55,010 | ||||||||||
Stock-based compensation | 1,910 | 4,518 | ||||||||||
Unrecognized tax benefits | 1,296 | 1,190 | ||||||||||
Deferred tax assets | 91,162 | 80,244 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Amortization of acquired intangibles | (388 | ) | (699 | ) | ||||||||
Net deferred tax assets | 90,774 | 79,545 | ||||||||||
Valuation allowance | (90,774 | ) | (79,458 | ) | ||||||||
Net deferred tax assets | $ | — | $ | 87 | ||||||||
Summary of Provision (Benefit) for Income Taxes Reconciles to Amount Computed by Applying Statutory Federal Income Tax Rate | The provision (benefit) for income taxes reconciles to the amount computed by applying the statutory federal income tax rate of 34% in 2014, 2013 and 2012 to income (loss) before provision for income taxes as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax benefit, at statutory rate | $ | (13,447 | ) | $ | (14,732 | ) | $ | (30,142 | ) | |||
State benefit, net of federal benefit | (1,054 | ) | (922 | ) | (757 | ) | ||||||
Change in valuation allowance | 11,316 | 15,577 | 27,486 | |||||||||
Change in fair value of warrant | 1,203 | — | — | |||||||||
Beneficial conversion feature | 163 | — | — | |||||||||
Research and development credits | 3 | (1,084 | ) | (856 | ) | |||||||
Share-based compensation | 2,402 | 2,433 | 1,616 | |||||||||
Uncertain tax positions | (62 | ) | (307 | ) | (46 | ) | ||||||
Goodwill impairment | — | — | 3,700 | |||||||||
Change in state apportionment | (347 | ) | (767 | ) | — | |||||||
Other | (53 | ) | (115 | ) | (390 | ) | ||||||
$ | 124 | $ | 83 | $ | 611 | |||||||
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): | |||||||||||
Amount | ||||||||||||
Unrecognized tax benefits balance at December 31, 2012 | $ | 33,220 | ||||||||||
Increases related to current and prior year tax positions | 2,653 | |||||||||||
Settlements and lapses in statutes of limitations | (373 | ) | ||||||||||
Unrecognized tax benefits balance at December 31, 2013 | 35,500 | |||||||||||
Increases related to current and prior year tax positions | 204 | |||||||||||
Settlements and lapses in statutes of limitations | (61 | ) | ||||||||||
Unrecognized tax benefits balance at December 31, 2014 | $ | 35,643 | ||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Summary of Minimum Future Lease Payments under Non-Cancelable Operating Leases | The minimum future lease payments under non-cancellable operating leases as of December 31, 2014 are as follows (in thousands): | |||
For the Period Ending December 31, | Amount | |||
2015 | $ | 2,744 | ||
2016 | 2,749 | |||
2017 | 537 | |||
2018 | 436 | |||
2019 | 433 | |||
Thereafter | 221 | |||
Total minimum lease payments | $ | 7,120 | ||
Segment_Information_and_Concen1
Segment Information and Concentrations of Risk (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Net Revenues, Operating Income (Loss) and Identifiable Assets of Segments | The table below presents net revenues from external customers, operating loss and identifiable assets for our reportable segments (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues by reportable segment: | ||||||||||||
Mobile Computing Products | $ | 145,500 | $ | 297,499 | $ | 312,508 | ||||||
M2M Products and Solutions | 39,745 | 37,554 | 31,780 | |||||||||
Total | $ | 185,245 | $ | 335,053 | $ | 344,288 | ||||||
Operating loss: | ||||||||||||
Mobile Computing Products | $ | (23,339 | ) | $ | (27,939 | ) | $ | (22,924 | ) | |||
M2M Products and Solutions | (12,234 | ) | (15,282 | ) | (65,819 | ) | ||||||
Total | $ | (35,573 | ) | $ | (43,221 | ) | $ | (88,743 | ) | |||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Identifiable assets by reportable segment: | ||||||||||||
Mobile Computing Products | $ | 79,368 | $ | 96,516 | ||||||||
M2M Products and Solutions | 15,652 | 14,949 | ||||||||||
Total | $ | 95,020 | $ | 111,465 | ||||||||
Schedule of Geographic Concentration of Assets | The Company has operations in the United States, Canada, Europe, Latin America and Asia. The following table details the geographic concentration of the Company’s assets in the United States, Canada, Europe, Latin America and Asia (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
United States | $ | 91,843 | $ | 108,932 | ||||||||
Canada | 587 | 808 | ||||||||||
Europe, Latin America and Asia | 2,590 | 1,725 | ||||||||||
$ | 95,020 | $ | 111,465 | |||||||||
Schedule of Geographic Concentration of Net Revenues | The following table details the Company’s concentration of net revenues by geographic region based on shipping destination: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States and Canada | 91.2 | % | 95.6 | % | 93.1 | % | ||||||
Latin America | 1 | 0.8 | 2.4 | |||||||||
Europe, Middle East, Africa and other | 6.6 | 3.4 | 4.1 | |||||||||
Asia and Australia | 1.2 | 0.2 | 0.4 | |||||||||
100 | % | 100 | % | 100 | % |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Summary of Restructuring Liability | The following table sets forth activity in the restructuring liability for the twelve months ended December 31, 2014 (in thousands): | |||||||||||||||||||
2013 Initiatives | 2014 Initiatives | |||||||||||||||||||
Employee | Facility Exit | Employment Contract | Share-based Compensation Costs | Total | ||||||||||||||||
Severance | Related Costs | Costs | ||||||||||||||||||
Costs | ||||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 881 | $ | — | $ | — | $ | 881 | ||||||||||
Accruals | 1,713 | 1,170 | 3,579 | 1,298 | 7,760 | |||||||||||||||
Payments | (1,713 | ) | (1,819 | ) | (1,828 | ) | — | (5,360 | ) | |||||||||||
Share-based compensation | — | — | — | (1,298 | ) | (1,298 | ) | |||||||||||||
Balance at December 31, 2014 | $ | — | $ | 232 | $ | 1,751 | $ | — | $ | 1,983 | ||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Summary of Unaudited Quarterly Results of Operations | 16. Quarterly Financial Information (Unaudited) | |||||||||||||||
The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2014 and 2013. | ||||||||||||||||
Quarter | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
2014 | ||||||||||||||||
Net revenues | $ | 48,284 | $ | 37,270 | $ | 44,330 | $ | 55,361 | ||||||||
Gross profit | 10,068 | 3,987 | 10,486 | 12,506 | ||||||||||||
Net loss attributable to common shareholders | (8,981 | ) | (17,415 | ) | (8,832 | ) | (4,446 | ) | ||||||||
Basic net loss per common share | (0.26 | ) | (0.51 | ) | (0.23 | ) | (0.10 | ) | ||||||||
Diluted net loss per common share | (0.26 | ) | (0.51 | ) | (0.23 | ) | (0.13 | ) | ||||||||
2013 | ||||||||||||||||
Net revenues | $ | 85,921 | $ | 91,124 | $ | 92,673 | $ | 65,335 | ||||||||
Gross profit | 16,848 | 19,024 | 20,383 | 12,039 | ||||||||||||
Net loss attributable to common shareholders | (9,122 | ) | (7,892 | ) | (5,093 | ) | (21,306 | ) | ||||||||
Basic and diluted net loss per common share | (0.27 | ) | (0.23 | ) | (0.15 | ) | (0.63 | ) |
Nature_of_Business_and_Signifi2
Nature of Business and Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Nature Of Business And Significant Accounting Policies [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent Before Beneficial Conversion | ($39,229,000) | ($43,413,000) | ($89,266,000) | ||||||||
Net loss | 4,446,000 | 8,832,000 | 17,415,000 | 8,981,000 | 21,306,000 | 5,093,000 | 7,892,000 | 9,122,000 | 39,674,000 | 43,413,000 | 89,266,000 |
Cash, cash equivalents and short-term marketable securities | 17,900,000 | 17,900,000 | |||||||||
Working capital | $29,400,000 | $29,400,000 | |||||||||
Maturity period of cash and cash equivalents | 3 months | ||||||||||
Maturity period of marketable securities | three months | ||||||||||
Recognized income tax position (percent) | 50.00% | ||||||||||
Developed technologies | |||||||||||
Nature Of Business And Significant Accounting Policies [Line Items] | |||||||||||
Period of amortization | 1 year | ||||||||||
Trade name | |||||||||||
Nature Of Business And Significant Accounting Policies [Line Items] | |||||||||||
Period of amortization | 3 years | ||||||||||
Minimum | |||||||||||
Nature Of Business And Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment useful lives | 18 months | ||||||||||
Period of warranty | 1 year | ||||||||||
Maximum | |||||||||||
Nature Of Business And Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment useful lives | 5 years | ||||||||||
Period of warranty | 3 years |
Fair_Value_Measurement_of_Asse2
Fair Value Measurement of Assets and Liabilities - Summary of Company's Financial Instruments, Fair Value on a Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Measurements, Recurring | ||
Cash equivalents | ||
Total cash equivalents | $2,114 | $487 |
Available-for-sale: | ||
Total short-term marketable securities | 19,178 | |
Total long-term marketable securities | 3,443 | |
Total financial assets | 23,108 | |
Fair Value, Measurements, Recurring | Government agency securities | ||
Available-for-sale: | ||
Total short-term marketable securities | 2,351 | |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Available-for-sale: | ||
Total short-term marketable securities | 2,829 | |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Available-for-sale: | ||
Total short-term marketable securities | 3,360 | |
Total long-term marketable securities | 1,300 | |
Fair Value, Measurements, Recurring | Corporate debentures / bonds | ||
Available-for-sale: | ||
Total short-term marketable securities | 10,638 | |
Total long-term marketable securities | 2,143 | |
Fair Value, Measurements, Recurring | Money market funds | ||
Cash equivalents | ||
Total cash equivalents | 1,134 | |
Fair Value, Measurements, Recurring | US Treasury securities | ||
Cash equivalents | ||
Total cash equivalents | 487 | |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Cash equivalents | ||
Total cash equivalents | 980 | |
Level 1 | ||
Cash equivalents | ||
Total cash equivalents | 1,134 | 0 |
Available-for-sale: | ||
Total short-term marketable securities | 0 | |
Total long-term marketable securities | 0 | |
Total financial assets | 0 | |
Level 1 | Government agency securities | ||
Available-for-sale: | ||
Total short-term marketable securities | 0 | |
Level 1 | Municipal bonds | ||
Available-for-sale: | ||
Total short-term marketable securities | 0 | |
Level 1 | Certificates of deposit | ||
Available-for-sale: | ||
Total short-term marketable securities | 0 | |
Total long-term marketable securities | 0 | |
Level 1 | Corporate debentures / bonds | ||
Available-for-sale: | ||
Total short-term marketable securities | 0 | |
Total long-term marketable securities | 0 | |
Level 1 | Money market funds | ||
Cash equivalents | ||
Total cash equivalents | 1,134 | |
Level 1 | US Treasury securities | ||
Cash equivalents | ||
Total cash equivalents | 0 | |
Level 1 | Certificates of deposit | ||
Cash equivalents | ||
Total cash equivalents | 0 | |
Level 2 | ||
Cash equivalents | ||
Total cash equivalents | 980 | 487 |
Available-for-sale: | ||
Total short-term marketable securities | 19,178 | |
Total long-term marketable securities | 3,443 | |
Total financial assets | 23,108 | |
Level 2 | Government agency securities | ||
Available-for-sale: | ||
Total short-term marketable securities | 2,351 | |
Level 2 | Municipal bonds | ||
Available-for-sale: | ||
Total short-term marketable securities | 2,829 | |
Level 2 | Certificates of deposit | ||
Available-for-sale: | ||
Total short-term marketable securities | 3,360 | |
Total long-term marketable securities | 1,300 | |
Level 2 | Corporate debentures / bonds | ||
Available-for-sale: | ||
Total short-term marketable securities | 10,638 | |
Total long-term marketable securities | 2,143 | |
Level 2 | Money market funds | ||
Cash equivalents | ||
Total cash equivalents | 0 | |
Level 2 | US Treasury securities | ||
Cash equivalents | ||
Total cash equivalents | 487 | |
Level 2 | Certificates of deposit | ||
Cash equivalents | ||
Total cash equivalents | $980 |
Fair_Value_Measurement_of_Asse3
Fair Value Measurement of Assets and Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange forward contracts outstanding | $0 | $0 | |
Foreign currency losses on foreign currency denominated transactions | $176,000 | $183,000 | $51,000 |
Fair_Value_Measurement_of_Asse4
Fair Value Measurement of Assets and Liabilities - Other Financial Instruments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimate of Fair Value Measurement | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term Debt | $5,158 |
Reported Value Measurement | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term Debt | 5,158 |
Revolving Credit Facility | Estimate of Fair Value Measurement | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term Debt | 5,158 |
Revolving Credit Facility | Reported Value Measurement | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term Debt | $5,158 |
Financial_Statement_Details_Su
Financial Statement Details - Summary of Marketable Securities Available-for-Sale (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,616 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 22,621 | |
Short-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,173 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 19,178 | |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,443 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 3,443 | |
Government agency securities | Short-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity in Years | 1 or less | |
Amortized Cost | 2,350 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 2,351 | |
Municipal bonds | Short-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity in Years | 1 or less | |
Amortized Cost | 2,828 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 2,829 | |
Certificates of deposit | Short-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity in Years | 1 or less | |
Amortized Cost | 3,360 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 3,360 | |
Certificates of deposit | Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity in Years | 1 to 2 | |
Amortized Cost | 1,300 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 1,300 | |
Corporate debentures / bonds | Short-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity in Years | 1 or less | |
Amortized Cost | 10,635 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 10,638 | |
Corporate debentures / bonds | Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity in Years | 1 to 2 | |
Amortized Cost | 2,143 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 2,143 | |
Minimum | Certificates of deposit | Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Long Term Investments Maturity Period | 1 year | 1 year |
Minimum | Corporate debentures / bonds | Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Long Term Investments Maturity Period | 1 year | 1 year |
Maximum | Certificates of deposit | Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Long Term Investments Maturity Period | 2 years | 2 years |
Maximum | Corporate debentures / bonds | Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Long Term Investments Maturity Period | 2 years | 2 years |
Financial_Statement_Details_Ad
Financial Statement Details - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net unrealized gains (losses) | $0 | $5,000 | |
Property and equipment | 0 | 70,000 | 100,000 |
Depreciation and amortization expense | $6,300,000 | $7,900,000 | $9,400,000 |
Financial_Statement_Details_Su1
Financial Statement Details - Summary of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $33,045 | $20,870 |
Raw materials and components | 4,758 | 6,923 |
Total inventory | $37,803 | $27,793 |
Financial_Statement_Details_Su2
Financial Statement Details - Summary of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $73,728 | $72,235 |
Less—accumulated depreciation and amortization | -68,449 | -62,334 |
Property and equipment, Net | 5,279 | 9,901 |
Test equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 53,019 | 52,108 |
Computer equipment and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 11,247 | 10,814 |
Product tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 3,535 | 3,204 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,824 | 2,015 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $4,103 | $4,094 |
Financial_Statement_Details_Su3
Financial Statement Details - Summary of Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Royalties | $4,035 | $4,243 | |
Payroll and related expenses | 8,038 | 4,828 | |
Product warranty | 1,196 | 2,244 | 2,329 |
Market development funds and price protection | 2,502 | 3,059 | |
Professional fees | 780 | 1,040 | |
Deferred revenue | 962 | 2,999 | |
Restructuring | 1,886 | 610 | |
Other | 4,445 | 4,248 | |
Accrued expenses, Total | $23,844 | $23,271 |
Financial_Statement_Details_Su4
Financial Statement Details - Summary of Accrued Warranty Obligations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty liability at beginning of period | $2,244 | $2,329 |
Additions charged to operations | 1,345 | 5,055 |
Deductions from liability | -2,393 | -5,140 |
Warranty liability at end of period | $1,196 | $2,244 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Amortizable Purchased Intangible Assets from Acquisition (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $42,520 | $42,520 |
Accumulated Amortization | -11,647 | -10,752 |
Accumulated Impairment | -29,749 | -29,749 |
Net | 1,124 | 2,019 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 26,000 | 26,000 |
Accumulated Amortization | -6,453 | -6,120 |
Accumulated Impairment | -19,547 | -19,547 |
Net | 0 | 333 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 12,800 | 12,800 |
Accumulated Amortization | -3,183 | -2,665 |
Accumulated Impairment | -8,582 | -8,582 |
Net | 1,035 | 1,553 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 3,720 | 3,720 |
Accumulated Amortization | -2,011 | -1,967 |
Accumulated Impairment | -1,620 | -1,620 |
Net | $89 | $133 |
Intangible_Assets_Summary_of_A
Intangible Assets - Summary of Amortization Expenses of Purchased Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangible assets | $562 | $562 | $1,074 |
Cost of net revenues | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangible assets | 333 | 334 | |
General and administrative expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangible assets | 562 | 562 | |
Total amortization expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangible assets | $895 | $896 |
Intangible_Assets_Schedule_of_1
Intangible Assets - Schedule of Amortization Expense of Purchased Intangible Assets Expected to be Recognized (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $562 | |
2016 | 562 | |
Net | $1,124 | $2,019 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Purchased intangible assets net | $1,493,000 | $2,131,000 | |
Intangible assets accumulated amortization | 14,050,000 | 12,983,000 | |
Impairment loss | 0 | 0 | 49,521,000 |
Amortization expense | 562,000 | 562,000 | 1,074,000 |
Weighted average remaining useful life of long-lived intangible assets | 2 years | ||
Acquired software licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchased intangible assets net | 369,000 | 112,000 | |
Intangible assets accumulated amortization | 2,400,000 | 2,200,000 | |
Amortization expense | 173,000 | 113,000 | 196,000 |
Intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss | $0 | $49,500,000 |
Revolving_Credit_Facility_Narr
Revolving Credit Facility - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 | Dec. 31, 2014 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Term of debt instrument | 5 years | |
Maximum amount of credit facility | $25 | 25 |
Outstanding borrowings under the credit facility | -5.2 | |
Available borrowings | 12.1 | |
Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Margin on LIBOR rate | 2.50% | |
Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Margin on LIBOR rate | 3.00% | |
Revolving Credit Facility | Weighted Average | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.80% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum amount of credit facility | 3 |
Earnings_Per_Share_Narrative_D
Earnings Per Share - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Weighted-average options RSUs, and ESPP shares outstanding (shares) | 8,130,000 | 4,424,000 | 5,793,000 |
Earnings_Per_Share_Earnings_Pe
Earnings Per Share - Earnings Per Basic and Diluted Share Table (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator | |||||||||||
Net loss | ($4,446) | ($8,832) | ($17,415) | ($8,981) | ($21,306) | ($5,093) | ($7,892) | ($9,122) | ($39,674) | ($43,413) | ($89,266) |
Denominator | |||||||||||
Weighted-average common shares outstanding (in shares) | 37,959 | 33,948 | 32,852 | ||||||||
Basic and diluted net loss per share (dollars per share) | ($0.63) | ($0.15) | ($0.23) | ($0.27) | ($1.05) | ($1.28) | ($2.72) |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Common Shares Reserved for Future Issuance (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance | 14,660,000 | 10,209,000 |
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance | 3,065,000 | 3,933,000 |
Restricted stock units outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance | 1,629,000 | 1,108,000 |
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance | 4,463,000 | 3,668,000 |
Shares available under the Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance | 1,385,000 | 1,500,000 |
Common stock warrants outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares of common stock reserved for issuance | 4,118,000 | 0 |
Stock_Incentive_and_Employee_S2
Stock Incentive and Employee Stock Purchase Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 16, 2014 | Nov. 15, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of option awards recognized as expense | $3,588,000 | $3,443,000 | $7,500,000 | ||
Total intrinsic value of options exercised | 449,000 | ||||
Number of shares issued under the ESPP | 114,791 | 0 | 1,086,837 | ||
Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of option awards recognized as expense | 1,300,000 | ||||
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock issued upon the exercise of stock options | 10,000,000 | ||||
Total fair value of option awards recognized as expense | 776,000 | 800,000 | 1,700,000 | ||
Duration of the options granted | 10 years | ||||
Rate of options exercisable after one year | 33.30% | ||||
Total intrinsic value of options exercised | 96,000 | 44,000 | 0 | ||
Total unrecognized share-based compensation cost | 1,777,000 | ||||
Expected recognition period | 2 years 8 months 12 days | ||||
Weighted average fair value of option awards granted per share | $1.48 | $1.20 | $1.97 | ||
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans | New Hire | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted vesting period | 24 months | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of option awards recognized as expense | 2,900,000 | 2,600,000 | 3,400,000 | ||
Expected recognition period | 2 years 8 months 12 days | ||||
Number of RSUs awarded to employees | 2,658,956 | 447,703 | 1,015,638 | ||
RSUs (restricted stock units) vesting rights percentage | 33.33% | ||||
Aggregate fair value of awards | 5,743,000 | 900,000 | 3,400,000 | ||
Unrecognized compensation expense related to non-vested RSUs | 3,000,000 | ||||
Restricted stock units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Range of RSUs price per unit at fair value | $1.60 | $1.74 | $1.28 | ||
Restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Range of RSUs price per unit at fair value | $3.55 | $4.17 | $3.58 | ||
Shares available under the Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to non-vested RSUs | 1,000,000 | ||||
Percentage of lower limit value of common stock | 85.00% | ||||
Maximum limit of payroll deductions (percent) | 10.00% | ||||
Number of shares issue that the ESPP authorizes for purchase by eligible employees | 1,500,132 | ||||
Amount received in cash through employee withholdings | 192,000 | 0 | 1,600,000 | ||
Total fair value of awards recognized as expenses | $101,000 | $0 | $1,400,000 |
Stock_Incentive_and_Employee_S3
Stock Incentive and Employee Stock Purchase Plans - Summary of Share-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Amounts for share-based compensation awards | $3,588 | $3,443 | $7,500 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Amounts for share-based compensation awards | 5 | 84 | 747 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Amounts for share-based compensation awards | 654 | 1,114 | 3,042 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Amounts for share-based compensation awards | 247 | 669 | 1,403 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Amounts for share-based compensation awards | $2,682 | $1,576 | $2,308 |
Stock_Incentive_and_Employee_S4
Stock Incentive and Employee Stock Purchase Plans - Summary of per Share Fair Values of Stock Options Granted under 2009 Plan and Rights Granted under ESPP (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employoee Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield rate | 0.00% | 0.00% | 0.00% |
Risk-free interest rate: | 1.40% | 0.80% | 0.90% |
Volatility rate | 80.00% | 63.00% | 63.00% |
Expected term (in years) | 4 years 7 months 6 days | 6 years | 6 years |
Employee Stock Purchase Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield rate | 0.00% | 0.00% | 0.00% |
Risk-free interest rate: | 5.40% | 0.00% | 0.20% |
Volatility rate | 53.00% | 0.00% | 68.00% |
Expected term (in years) | 4 months 24 days | 0 years | 1 year 3 months 18 days |
Stock_Incentive_and_Employee_S5
Stock Incentive and Employee Stock Purchase Plans - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Options Outstanding | ||
Options outstanding December 31, 2013 | 3,933 | 4,282 |
Granted | 1,658 | 425 |
Exercised | -89 | -38 |
Cancelled | -2,437 | -736 |
Balance December 31, 2014 | 3,065 | 3,933 |
Options Exercisable, December 31, 2014 | 1,769 | |
Weighted Average Exercise Price Per Option | ||
Options outstanding December 31, 2013 | $9.45 | $10.25 |
Granted | $2.92 | $2.10 |
Exercised | $2.17 | $2.68 |
Cancelled | $10.52 | $10.21 |
Balance December 31, 2014 | $5.27 | $9.45 |
Options Exercisable, December 31, 2014 | $6.80 | |
Weighted Average Remaining Contractual Term (Years), Options outstanding | 4 years 11 months 1 day | |
Weighted Average Remaining Contractual Term (Years), Options Exercisable | 4 years 11 months 27 days | |
Aggregate Intrinsic Value, Options outstanding | $1,022 | |
Aggregate Intrinsic Value, Options Exercisable | $449 |
Stock_Incentive_and_Employee_S6
Stock Incentive and Employee Stock Purchase Plans - Summary of Restricted Stock Unit Activity (Detail) (Restricted Stock) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Non-vested at December 31, 2013 | 1,108,000 |
Granted | 2,659,000 |
Vested | -1,207,000 |
Forfeited | -931,000 |
Non-vested at December 31, 2014 | 1,629,000 |
Securities_Purchase_Agreement_1
Securities Purchase Agreement - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Nov. 17, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 08, 2014 | Nov. 16, 2014 |
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Common stock shares issued at par value (per share) | $0.00 | $0.00 | $0.00 | ||||
Warrants to purchase common stock sold (shares) | 4,117,647 | ||||||
Exercise price per share | 2.26 | ||||||
Proceeds from the issuances of Series C preferred and common stock, net of issuance costs | $14,163 | $0 | $0 | ||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 50,000,000 | ||
Reclassification of warrant liability to equity | 8,219 | 8,219 | 8,219 | ||||
Expense on fair value warrants | 3,280 | 0 | 0 | ||||
Common stock shares reserved for issuance | 14,660,000 | 14,660,000 | 10,209,000 | ||||
2009 Omnibus Incentive Compensation Plan | |||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Unreserved shares previously approved for issuance | 1,651,455 | ||||||
2000 Stock Compensation Plan | |||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Unreserved shares previously approved for issuance | 1,300,000 | ||||||
Series C Preferred Stock | |||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Number of shares sold | 87,196 | ||||||
Convertible preferred stock par value per share | 0.001 | ||||||
Number of shares sold, Per share price | 17.5 | ||||||
Proceeds from the issuances of Series C preferred and common stock, net of issuance costs | 14,400 | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 10 | ||||||
Beneficial conversion feature | 445 | ||||||
Series C Convertible Preferred Stock | |||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Common stock shares reserved for issuance | 871,960 | ||||||
Scenario, Plan | |||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Common stock, shares authorized | 100,000,000 | ||||||
Common Stock | |||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Number of shares sold | 7,363,000 | 7,363,334 | |||||
Common stock shares issued at par value (per share) | 0.001 | ||||||
Number of shares sold, Per share price | 1.75 | ||||||
Common stock warrants outstanding | |||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||
Warrants to purchase common stock sold (shares) | 4,117,647 | ||||||
Exercise price per share | 2.26 |
Securities_Purchase_Agreement_2
Securities Purchase Agreement - Summary of Change to Fair Value of Warrant (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 4 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 17, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Change in fair value of warrant liability and fair value of beneficial conversion feature on convertible Series C preferred shares | $3,280 | $0 | $0 | |||
Reclassification to additional paid-in-capital | -8,219 | -8,219 | -8,219 | |||
Level 3 | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||
Balance at September 8, 2014 (Transaction Date) | 8,219 | 8,219 | 4,939 | |||
Change in fair value of warrant liability and fair value of beneficial conversion feature on convertible Series C preferred shares | 3,280 | |||||
Ending balance at December 31, 2014 | $8,219 | $0 | $0 | $0 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income (Loss) before Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($39,513) | ($44,142) | ($88,945) |
Foreign | 408 | 812 | 290 |
Loss before income taxes | ($39,105) | ($43,330) | ($88,655) |
Income_Taxes_Summary_of_Provis
Income Taxes - Summary of Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0 | ($248) | $0 |
State | 21 | 33 | 29 |
Foreign | 16 | -229 | 74 |
Total Current | 37 | -444 | 103 |
Deferred: | |||
Federal | 0 | 53 | 14 |
State | 0 | 0 | 0 |
Foreign | 87 | 474 | 494 |
Total Deferred | 87 | 527 | 508 |
Provision or income taxes | $124 | $83 | $611 |
Income_Taxes_Summary_of_Net_De
Income Taxes - Summary of Net Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Accrued expenses | $4,566 | $11,292 |
Inventory obsolescence provision | 2,352 | 3,539 |
Depreciation and amortization | 4,137 | 4,136 |
Deferred rent | 555 | 559 |
Net operating loss and tax credit carryforwards | 76,346 | 55,010 |
Stock-based compensation | 1,910 | 4,518 |
Unrecognized tax benefits | 1,296 | 1,190 |
Deferred tax assets | 91,162 | 80,244 |
Deferred tax liabilities: | ||
Amortization of acquired intangibles | -388 | -699 |
Net deferred tax assets | 90,774 | 79,545 |
Valuation allowance | -90,774 | -79,458 |
Net deferred tax assets | $0 | $87 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowances related to U.S. based deferred taxes | $11,300,000 | $15,600,000 | ||
Valuation allowance | 90,774,000 | 90,774,000 | 79,458,000 | |
Statutory federal income tax rate | 34.00% | 34.00% | 34.00% | |
Internal revenue code related to annual use of operating loss carry forwards | annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period | |||
Internal revenue code, cumulative change in ownership (percent) | 50.00% | |||
Uncertain income tax position unrecognized | less than a 50% likelihood | |||
Settlements and lapses in statutes of limitations | 61,000 | 71,000 | ||
Associated interest due to expiration of the applicable statutes of limitations for certain tax years | 0 | 236,000 | ||
Total liability for unrecognized tax benefits included other long-term liabilities | 0 | 61,000 | ||
Interest and penalties related to unrecognized tax benefits in the provision for income taxes | 0 | |||
Uncertain tax liability | 61,000 | |||
Domestic Country | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 86,000,000 | 86,000,000 | 74,700,000 | |
Net operating loss carryforwards | 174,300,000 | 174,300,000 | ||
Net operating loss expiration dates | 2029 through 2034 | |||
Research and development tax credit carryforwards | 4,300,000 | 4,300,000 | ||
Tax credits expiration dates | 2027 through 2034 | |||
Foreign Country | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 4,800,000 | 4,800,000 | 4,700,000 | |
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 67,100,000 | 67,100,000 | ||
Net operating loss expiration dates | 2017 through 2034 | |||
Research and development tax credit carryforwards | $5,400,000 | $5,400,000 |
Income_Taxes_Summary_of_Provis1
Income Taxes - Summary of Provision (Benefit) for Income Taxes Reconciles to Amount Computed by Applying Statutory Federal Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal tax benefit, at statutory rate | ($13,447) | ($14,732) | ($30,142) |
State benefit, net of federal benefit | -1,054 | -922 | -757 |
Change in valuation allowance | 11,316 | 15,577 | 27,486 |
Change in fair value of warrant | 1,203 | 0 | 0 |
Beneficial conversion feature | 163 | 0 | 0 |
Research and development credits | 3 | -1,084 | -856 |
Share-based compensation | 2,402 | 2,433 | 1,616 |
Uncertain tax positions | -62 | -307 | -46 |
Goodwill impairment | 0 | 0 | 3,700 |
Change in state apportionment | -347 | -767 | 0 |
Other | -53 | -115 | -390 |
Provision or income taxes | $124 | $83 | $611 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | $35,500 | $33,220 |
Increases related to current and prior year tax positions | 204 | 2,653 |
Settlements and lapses in statutes of limitations | -61 | -373 |
Unrecognized Tax Benefits, Ending Balance | $35,643 | $35,500 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | ||||
Nov. 17, 2014 | Jul. 08, 2014 | Jun. 23, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | Mar. 31, 2015 | |
Loss Contingencies [Line Items] | ||||||||
Rental expense under operating leases | $3,000,000 | $4,100,000 | $4,500,000 | |||||
Purchase commitments | 55,000,000 | |||||||
Period of time to achieve earnings and cash building targets | 6 months | |||||||
Accrued bonus liability | 5,500,000 | |||||||
Loss Contingency, Damages Paid, Value | 6,000,000 | |||||||
Consideration For Litigation Settlement Paid By Companys Insurers | 1,700,000 | 1,700,000 | ||||||
Legal Settlements Promissory Notes Issued Amount | 5,000,000 | 5,000,000 | ||||||
Amount for Share Price Fluctuation Related to Litigation Settlement | 789,600 | |||||||
Loss Contingency Damages Paid Net Of Portion Paid By Companys Insurers | 4,300,000 | |||||||
Revolving Credit Facility | ||||||||
Loss Contingencies [Line Items] | ||||||||
Secured note maturity period | 5 years | |||||||
Company's unused borrowing capacity under credit facility | 25,000,000 | 25,000,000 | ||||||
Line of Credit Facility, Amount Outstanding | 5,200,000 | |||||||
Available borrowings | 12,100,000 | |||||||
Letter of Credit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Company's unused borrowing capacity under credit facility | 3,000,000 | |||||||
Unrestricted Stock | ||||||||
Loss Contingencies [Line Items] | ||||||||
Legal Settlements Shares Issued Value | 5,000,000 | 5,000,000 | ||||||
Common Stock Distribution (shares) | 2,407,318 | |||||||
Secured Promissory Note | ||||||||
Loss Contingencies [Line Items] | ||||||||
Secured note maturity period | 30 months | |||||||
Secured note interest rate percentage | 5.00% | |||||||
Scenario, Forecast | ||||||||
Loss Contingencies [Line Items] | ||||||||
Total estimated expense | $11,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Summary of Minimum Future Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $2,744 |
2016 | 2,749 |
2017 | 537 |
2018 | 436 |
2019 | 433 |
Thereafter | 221 |
Total minimum lease payments | $7,120 |
Segment_Information_and_Concen2
Segment Information and Concentrations of Risk - Schedule of Net Revenues, Operating Income (Loss) and Identifiable Assets of Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net revenues by reportable segment: | |||||||||||
Net revenues | $55,361 | $44,330 | $37,270 | $48,284 | $65,335 | $92,673 | $91,124 | $85,921 | $185,245 | $335,053 | $344,288 |
Operating income (loss): | |||||||||||
Operating loss: | -35,573 | -43,221 | -88,743 | ||||||||
Identifiable assets by reportable segment: | |||||||||||
Identifiable assets by reportable segment: | 95,020 | 111,465 | 95,020 | 111,465 | |||||||
Mobile Computing Products | |||||||||||
Net revenues by reportable segment: | |||||||||||
Net revenues | 145,500 | 297,499 | 312,508 | ||||||||
Operating income (loss): | |||||||||||
Operating loss: | -23,339 | -27,939 | -22,924 | ||||||||
Identifiable assets by reportable segment: | |||||||||||
Identifiable assets by reportable segment: | 79,368 | 96,516 | 79,368 | 96,516 | |||||||
M2M Products and Solutions | |||||||||||
Net revenues by reportable segment: | |||||||||||
Net revenues | 39,745 | 37,554 | 31,780 | ||||||||
Operating income (loss): | |||||||||||
Operating loss: | -12,234 | -15,282 | -65,819 | ||||||||
Identifiable assets by reportable segment: | |||||||||||
Identifiable assets by reportable segment: | $15,652 | $14,949 | $15,652 | $14,949 |
Segment_Information_and_Concen3
Segment Information and Concentrations of Risk - Schedule of Geographic Concentration of Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets by Geographic Concentration, Total | $95,020 | $111,465 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets by Geographic Concentration, Total | 91,843 | 108,932 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets by Geographic Concentration, Total | 587 | 808 |
Europe, Latin America and Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets by Geographic Concentration, Total | $2,590 | $1,725 |
Segment_Information_and_Concen4
Segment Information and Concentrations of Risk - Schedule of Geographic Concentration of Net Revenues (Detail) (Net Revenues, Geographic Concentration) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration percentage | 100.00% | 100.00% | 100.00% |
United States and Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration percentage | 91.20% | 95.60% | 93.10% |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration percentage | 1.00% | 0.80% | 2.40% |
Europe, Middle East, Africa and other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration percentage | 6.60% | 3.40% | 4.10% |
Asia and Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration percentage | 1.20% | 0.20% | 0.40% |
Segment_Information_and_Concen5
Segment Information and Concentrations of Risk - Additional Information (Detail) (Customer Concentration) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net Revenues | Customer One | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 51.60% | 58.00% | |
Net Revenues | Customer Two | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 57.50% | ||
Accounts Receivable | Customer One | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 46.10% | 24.50% | |
Accounts Receivable | Customer Two | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 12.60% | ||
Accounts Receivable | Customer Three | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 12.00% |
Retirement_Savings_Plan_Additi
Retirement Savings Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contributions vesting period | 2 years | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contributions | $579 | $1,000 | $1,200 |
Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contributions | $26 | $157 | $232 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 16 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2014 | |
employee | employee | employee | |||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $7,760,000 | $3,304,000 | $0 | ||||
Restructuring | 1,886,000 | 610,000 | 1,886,000 | ||||
Restructuring Reserve, Noncurrent | 60,000 | 60,000 | |||||
2013 Initiatives | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in number of employees after restructuring | 5 | 21 | 41 | ||||
Restructuring charges | 2,900,000 | 3,300,000 | |||||
Restructuring costs to date | 6,200,000 | ||||||
2014 Initiatives | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 4,900,000 | ||||||
Employment Contract Costs | 2013 Initiatives | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 1,700,000 | ||||||
Facility Exit Related Costs | 2013 Initiatives | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 1,200,000 | ||||||
Share-based Compensation Costs | 2014 Initiatives | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $1,300,000 |
Restructuring_Summary_of_Restr
Restructuring - Summary of Restructuring Liability (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2013 | $881 |
Accruals | 7,760 |
Payments | -5,360 |
Share-based compensation | -1,298 |
Balance at December 31, 2014 | 1,983 |
Facility Exit Related Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2013 | 881 |
Accruals | 1,170 |
Payments | -1,819 |
2013 Initiatives | Employment Contract Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2013 | 0 |
Accruals | 1,713 |
Payments | -1,713 |
Share-based compensation | 0 |
Balance at December 31, 2014 | 0 |
2013 Initiatives | Facility Exit Related Costs | |
Restructuring Reserve [Roll Forward] | |
Share-based compensation | 0 |
Balance at December 31, 2014 | 232 |
2014 Initiatives | Employment Contract Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2013 | 0 |
Accruals | 3,579 |
Payments | -1,828 |
Share-based compensation | 0 |
Balance at December 31, 2014 | 1,751 |
2014 Initiatives | Share-based Compensation Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2013 | 0 |
Accruals | 1,298 |
Payments | 0 |
Share-based compensation | -1,298 |
Balance at December 31, 2014 | $0 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) - Summary of Unaudited Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $55,361 | $44,330 | $37,270 | $48,284 | $65,335 | $92,673 | $91,124 | $85,921 | $185,245 | $335,053 | $344,288 |
Gross profit | 12,506 | 10,486 | 3,987 | 10,068 | 12,039 | 20,383 | 19,024 | 16,848 | 37,047 | 68,294 | 72,443 |
Net loss attributable to common shareholders | ($4,446) | ($8,832) | ($17,415) | ($8,981) | ($21,306) | ($5,093) | ($7,892) | ($9,122) | ($39,674) | ($43,413) | ($89,266) |
Earnings Per Share, Basic ($ per share) | ($0.10) | ($0.23) | ($0.51) | ($0.26) | |||||||
Earnings Per Share, Diluted ($ per share) | ($0.13) | ($0.23) | ($0.51) | ($0.26) | |||||||
Basic and diluted net loss per common share (dollars per share) | ($0.63) | ($0.15) | ($0.23) | ($0.27) | ($1.05) | ($1.28) | ($2.72) |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance At Beginning of Year | $2,449 | $627 | $245 |
Additions Charged to Operations | 86 | 1,936 | 439 |
Deductions From Reserves | 2,318 | 114 | 57 |
Balance At End of Year | 217 | 2,449 | 627 |
Warranty: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance At Beginning of Year | 2,244 | 2,329 | 1,525 |
Additions Charged to Operations | 1,345 | 5,055 | 6,261 |
Deductions From Reserves | 2,393 | 5,140 | 5,457 |
Balance At End of Year | 1,196 | 2,244 | 2,329 |
Deferred Tax Asset Valuation Allowance: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance At Beginning of Year | 79,458 | 63,881 | 36,395 |
Additions Charged to Operations | 11,316 | 15,577 | 27,486 |
Deductions From Reserves | 0 | 0 | 0 |
Balance At End of Year | 90,774 | 79,458 | 63,881 |
Sales Returns and Allowances: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance At Beginning of Year | 727 | 911 | 545 |
Additions Charged to Operations | 0 | 196 | 497 |
Deductions From Reserves | 572 | 380 | 131 |
Balance At End of Year | $155 | $727 | $911 |