Pixelworks (PXLW) 10-Q 8 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Entity Information [Line Items]
Entity Registrant Name	Pixelworks, Inc.
Entity Central Index Key	1040161
Current Fiscal Year End Date	-19
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		23,453,444

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$15,591	$17,926
Accounts receivable, net	4,760	4,648
Inventories	3,295	2,898
Prepaid expenses and other current assets	900	888
Total current assets	24,546	26,360
Property and equipment, net	5,762	6,402
Other assets, net	1,211	1,382
Total assets	31,519	34,144
Current liabilities:
Accounts payable	2,289	3,154
Accrued liabilities and current portion of long-term liabilities	9,129	8,539
Current portion of income taxes payable	168	197
Short-term line of credit	3,000	3,000
Total current liabilities	14,586	14,890
Long-term liabilities, net of current portion	1,319	1,476
Income taxes payable, net of current portion	1,966	2,094
Total liabilities	17,871	18,460
Commitments and contingencies (Note 9)
Shareholders’ equity:
Preferred stock	0	0
Common stock	370,581	369,253
Accumulated other comprehensive income	11	11
Accumulated deficit	-356,944	-353,580
Total shareholders’ equity	13,648	15,684
Total liabilities and shareholders’ equity	$31,519	$34,144

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015		Mar. 31, 2014
Income Statement [Abstract]
Revenue, net	$14,392		$13,541
Cost of revenue (1)	7,425	[1]	5,546	[1]
Gross profit	6,967		7,995
Operating expenses:
Research and development (2)	6,318	[2]	6,385	[2]
Selling, general and administrative (3)	3,887	[3]	4,049	[3]
Total operating expenses	10,205		10,434
Loss from operations	-3,238		-2,439
Interest expense and other, net	-107		-122
Loss before income taxes	-3,345		-2,561
Provision (benefit) for income taxes	19		-54
Net loss	($3,364)		($2,507)
Net loss per share - basic and diluted	($0.14)		($0.11)
Weighted average shares outstanding - basic and diluted	23,328		22,204
[1]	Includes: Stock-based compensation 53 89 Additional amortization of non-cancelable prepaid royalty — 56
[2]	Includes: Stock-based compensation 489 826
[3]	Includes: Stock-based compensation 536 788

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Operations (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cost of revenue
Stock-based compensation	$53	$89
Additional amortization of non-cancelable prepaid royalty	0	56
Research and development
Stock-based compensation	489	826
Selling, general and administrative
Stock-based compensation	$536	$788

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($3,364)	($2,507)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,098	1,144
Stock-based compensation	1,078	1,703
Reversal of uncertain tax positions	-209	-270
Deferred income tax expense	0	160
Other	26	24
Changes in operating assets and liabilities:
Accounts receivable, net	-113	399
Inventories	-397	-364
Prepaid expenses and other current and long-term assets, net	33	1,656
Accounts payable	-891	202
Accrued current and long-term liabilities	753	-967
Income taxes payable	52	-10
Net cash provided by (used in) operating activities	-1,934	1,170
Cash flows from investing activities:
Purchases of property and equipment	-71	-266
Purchases of licensed technology	-55	0
Net cash used in investing activities	-126	-266
Cash flows from financing activities:
Payments on asset financings	-525	-420
Proceeds from issuances of common stock	250	631
Net cash provided by (used in) financing activities	-275	211
Net increase (decrease) in cash and cash equivalents	-2,335	1,115
Cash and cash equivalents, beginning of period	17,926	20,805
Cash and cash equivalents, end of period	$15,591	$21,920

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION
	Nature of Business
	Pixelworks designs, develops and markets video and pixel processing semiconductors, intellectual property cores, software and custom ASIC solutions for high-end digital video applications. Our products allow manufacturers and developers of digital display and projection devices to manufacture screens of all sizes that display the highest video quality with minimum power consumption. Our core video display processing technology intelligently processes video signals from a variety of sources and optimizes the image for the viewer. The continued advancement of display technology and rapid growth of video consumption on digital delivery systems and mobile applications has increased the demand for video display processing technology in recent years. Our products are used in a range of devices from large flat panel displays to small low power mobile applications. Our products are designed to reduce overall system power requirements and reduce costs for our customers by minimizing bandwidth. Our primary target markets include digital projection systems, digital televisions, UltrabookTM devices, tablets, and smartphones.
	As of March 31, 2015, we had an intellectual property portfolio of 132 patents related to the visual display of digital image data. Pixelworks was founded in 1997 and is incorporated under the laws of the state of Oregon.
	Condensed Consolidated Financial Statements
	The financial information included herein for the three month periods ended March 31, 2015 and 2014 is prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and is unaudited. In our opinion, such information reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the Company's condensed consolidated financial statements for these interim periods. The financial information as of December 31, 2014 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2014, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 4, 2015, and should be read in conjunction with such consolidated financial statements.
	The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2015.
	Comprehensive Income (Loss)
	The Company reports comprehensive income (loss) and its components following guidance set forth by the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification section 220-10, Comprehensive Income, which establishes standards for the reporting and display of comprehensive income or loss and its components in the financial statements. During the three month periods ended March 31, 2015 and 2014, aside from our net loss, there were no other items of comprehensive income or loss and therefore the Company has not included a statement of comprehensive income (loss) in our interim condensed consolidated financial statements.
	Recent Accounting Pronouncements
	In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which requires that an entity recognize revenue when it transfers 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. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company on January 1, 2017, although the FASB has agreed to propose a one-year deferral of the effective date. The Company is evaluating the alternative transition methods and the potential effects of the adoption of this update on its financial position, results of operations and cash flows.
	In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"), which required an unrecognized tax benefit, or a portion of an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless an exception applies. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013. The Company adopted ASU 2013-11 in the first quarter of 2014. The adoption of ASU 2013-11 did not have a material impact on the Company's financial position, results of operations or cash flows as a result of this change.
	Use of Estimates
	The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, product returns, warranty obligations, bad debts, inventories, property and equipment, impairment of long-lived assets, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates.

Balance_Sheet_Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2015
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	BALANCE SHEET COMPONENTS
	Accounts Receivable, Net
	Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments.
	Accounts receivable consists of the following:
		March 31,			December 31,
		2015			2014
	Accounts receivable, gross	$	5,058		$	4,949
	Less: allowance for doubtful accounts	(298		)	(301		)
	Accounts receivable, net	$	4,760		$	4,648
	The following is the change in our allowance for doubtful accounts:
		Three Months Ended
		March 31,
		2015			2014
	Balance at beginning of period	$	301		$	315
	Reductions credited	(3		)	(3		)
	Balance at end of period	$	298		$	312
	Inventories
	Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).
	Inventories consist of the following:
		March 31,			December 31,
		2015			2014
	Finished goods	$	2,234		$	1,697
	Work-in-process	1,061			1,201
	Inventories	$	3,295		$	2,898
	Property and Equipment, Net
	Property and equipment consists of the following:
		March 31,			December 31,
		2015			2014
	Gross carrying amount	$	27,783		$	27,573
	Less: accumulated depreciation and amortization	(22,021		)	(21,171		)
	Property and equipment, net	$	5,762		$	6,402
	Accrued Liabilities and Current Portion of Long-Term Liabilities
	Accrued liabilities and current portion of long-term liabilities consist of the following:
		March 31,			December 31,
		2015			2014
	Accrued payroll and related liabilities	$	2,530		$	2,385
	Accrued commissions and royalties	2,114			2,055
	Accrued interest payable	1,475			1,383
	Current portion of accrued liabilities for asset financings	1,416			1,744
	Reserve for warranty returns	99			105
	Deferred revenue	99			30
	Other	1,396			837
	Accrued liabilities and current portion of long-term liabilities	$	9,129		$	8,539
	The following is the change in our reserve for warranty returns:
		Three Months Ended
		March 31,
		2015			2014
	Reserve for warranty returns:
	Balance at beginning of period	$	105		$	329
	Benefit	(1		)	(90		)
	Charge-offs	(5		)	(7		)
	Balance at end of period	$	99		$	232
	Short-Term Line of Credit
	On December 21, 2010, we entered into a Loan and Security Agreement (the "Revolving Loan Agreement") with Silicon Valley Bank (the "Bank"). On December 14, 2012, we and the Bank entered into Amendment No. 1 to the Revolving Loan Agreement. The Revolving Loan Agreement, as amended, provides a secured working capital-based revolving line of credit (the "Revolving Line") in an aggregate amount of up to the lesser of (i) $10,000, or (ii) $1,000 plus 80% of eligible domestic accounts receivable and certain foreign accounts receivable. On December 4, 2013, we and the Bank entered into Amendment No. 2 (the "Amendment No. 2") to the Revolving Loan Agreement which changes the maturity date of the revolving line of credit provided pursuant to the Revolving Loan Agreement to January 1, 2016. The maturity date was previously December 14, 2014, as provided by Amendment No. 1 to the Revolving Loan Agreement. In addition, the Revolving Loan Agreement, as amended, provides for non-formula advances of up to $10,000 which may be made solely during the last five business days of any fiscal month or quarter and which must be repaid by the Company on or before the fifth business day after the applicable fiscal month or quarter end. Due to their repayment terms, non-formula advances do not provide the Company with usable liquidity.
	The Revolving Loan Agreement, as amended, contains customary affirmative and negative covenants as well as customary events of default. The occurrence of an event of default could result in the acceleration of the Company's obligations under the Revolving Loan Agreement, as amended, and an increase to the applicable interest rate, and would permit the Bank to exercise remedies with respect to its security interest. As of March 31, 2015, we were in compliance with all of the terms of the Revolving Loan Agreement, as amended.
	Short-term borrowings outstanding under the Revolving Line consisted of non-formula advances of $3,000 as of March 31, 2015 and as of December 31, 2014, both advances were repaid within required terms. The weighted-average interest rate on short-term borrowings outstanding as of March 31, 2015 and December 31, 2014 was 3.5%.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS
	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. Three levels of inputs may be used to measure fair value:
	Level 1:	Valuations based on quoted prices in active markets for identical assets and liabilities.
	Level 2:	Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
	Level 3:	Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions.
	The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of March 31, 2015 and December 31, 2014:
		Level 1		Level 2		Level 3		Total
	As of March 31, 2015:
	Money market funds	$	14,272	$	—	$	—	$	14,272
	As of December 31, 2014:
	Money market funds	$	17,480	$	—	$	—	$	17,480
	We primarily use the market approach to determine the fair value of our financial assets. The fair value of our current assets and liabilities, including accounts receivable and accounts payable approximates the carrying value due to the short-term nature of these balances. We have currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with U.S. GAAP.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Incomes Taxes	INCOME TAXES
	The provision (benefit) for income taxes during the 2015 and 2014 periods is primarily comprised of current and deferred tax expense in profitable cost-plus foreign jurisdictions, accruals for tax contingencies in foreign jurisdictions and benefits for the reversal of previously recorded foreign tax contingencies due to the expiration of the applicable statutes of limitation. We recorded a benefit for the reversal of previously recorded tax contingencies of $209 and $270 during the first three months of 2015 and 2014, respectively.
	As we do not believe that it is more likely than not that we will realize a benefit from our U.S. net deferred tax assets, including our U.S. net operating losses, we continue to provide a full valuation allowance against essentially all of those assets, therefore, we do not incur significant U.S. income tax expense or benefit. We have not recorded a valuation allowance against our other foreign net deferred tax assets as we believe that it is more likely than not that we will realize a benefit from those assets.
	As of March 31, 2015 and December 31, 2014, the amount of our uncertain tax positions was a liability of $1,552 and $1,712, respectively. A number of years may elapse before an uncertain tax position is resolved by settlement or statute of limitation. Settlement of any particular position could require the use of cash. If the uncertain tax positions we have accrued for are sustained by the taxing authorities in our favor, the reduction of the liability will reduce our effective tax rate. We reasonably expect reductions in the liability for unrecognized tax benefits and interest and penalties of approximately $287 within the next twelve months due to the expiration of statutes of limitation in foreign jurisdictions. We recognize interest and penalties related to uncertain tax positions in income tax expense in our consolidated statements of operations.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE
	The following table sets forth the computation of basic and diluted net loss per share:
		Three Months Ended
		March 31,
		2015				2014
	Net loss	$	(3,364	)		$	(2,507	)
	Shares used in computing net loss per share - basic and diluted	23,328				22,204
	Net loss per common share - basic and diluted	$	(0.14	)		$	(0.11	)
	The following weighted average shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive:
		Three Months Ended
		March 31,
		2015			2014
	Employee equity incentive plans	4,209			4,630
	Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan.

Supplemental_Disclosure_of_Cas

Supplemental Disclosure of Cash Flow Information	3 Months Ended
	Mar. 31, 2015
Supplemental Cash Flow Information [Abstract]
Supplemental Disclosure of Cash Flow Information	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
	Supplemental disclosure of cash flow information is as follows:
		Three Months Ended
		March 31,
		2015		2014
	Cash paid during the period for:
	Income taxes	$	150	$	40
	Interest	12		54
	Non-cash investing and financing activities:
	Acquisitions of property and equipment and other assets under extended payment terms	$	58	$	2,825

Segment_Information

Segment Information	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION
	We have identified a single operating segment: the design and development of integrated circuits for use in electronic display devices. The majority of our assets are located in the United States.
	Geographic Information
	Revenue by geographic region, is as follows:
		Three Months Ended
		March 31,
		2015			2014
	Japan	$	11,815		$	5,426
	Taiwan	1,479			1,714
	Korea	321			1,596
	China	280			966
	Europe	183			514
	United States	33			3,046
	Other	281			279
		$	14,392		$	13,541
	Significant Customers
	The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows:
		Three Months Ended
		March 31,
		2015		2014
	Distributors:
	All distributors	46	%	57	%
	Distributor A	29	%	29	%
	End customers: 1
	Top five end customers	80	%	55	%
	End customer A	48	%	2	%
	End customer B	13	%	10	%
	End customer C	10	%	12	%
	End customer D	—	%	11	%
	End customer E	—	%	14	%
	1	End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.
	The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented:
		March 31,		December 31,
		2015		2014
	Account X	43	%	37	%
	Account Y	28	%	15	%
	Account Z	1	%	16	%

Risks_and_Uncertainties

Risks and Uncertainties	3 Months Ended
	Mar. 31, 2015
Risks and Uncertainties [Abstract]
Risks and Uncertainties	RISKS AND UNCERTAINTIES
	Concentration of Suppliers
	We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We rely on a limited number of foundries and assembly and test vendors to produce all of our wafers and for completion of finished products. We do not have any long-term agreements with any of these suppliers. In light of these dependencies, it is reasonably possible that failure to perform by one of these suppliers could have a severe impact on our results of operations. Additionally, the concentration of these vendors within Taiwan, the People’s Republic of China and Singapore increases our risk of supply disruption due to natural disasters, economic instability, political unrest or other regional disturbances.
	Risk of Technological Change
	The markets in which we compete, or seek to compete, are subject to rapid technological change, frequent new product introductions, changing customer requirements for new products and features, and evolving industry standards. The introduction of new technologies and the emergence of new industry standards could render our products less desirable or obsolete, which could harm our business.
	Concentrations of Credit Risk
	Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and accounts receivable. We limit our exposure to credit risk associated with cash equivalent balances by holding our funds in high quality, highly liquid money market accounts. We limit our exposure to credit risk associated with accounts receivable by carefully evaluating creditworthiness before offering terms to customers.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES
	Indemnifications
	Certain of our agreements include indemnification provisions for claims from third-parties relating to our intellectual property. It is not possible for us to predict the maximum potential amount of future payments or indemnification costs under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. We have not made any payments under these agreements in the past, and as of March 31, 2015, we have not incurred any material liabilities arising from these indemnification obligations. In the future, however, such obligations could materially impact our results of operations.
	Legal Proceedings
	We are subject to legal matters that arise from time to time in the ordinary course of our business. Although we currently believe that resolving such matters, individually or in the aggregate, will not have a material adverse effect on our financial position, our results of operations, or our cash flows, these matters are subject to inherent uncertainties and our view of these matters may change in the future.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which requires that an entity recognize revenue when it transfers 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. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company on January 1, 2017, although the FASB has agreed to propose a one-year deferral of the effective date. The Company is evaluating the alternative transition methods and the potential effects of the adoption of this update on its financial position, results of operations and cash flows.
	In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"), which required an unrecognized tax benefit, or a portion of an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless an exception applies. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013. The Company adopted ASU 2013-11 in the first quarter of 2014. The adoption of ASU 2013-11 did not have a material impact on the Company's financial position, results of operations or cash flows as a result of this change.
Use of Estimates	Use of Estimates
	The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, product returns, warranty obligations, bad debts, inventories, property and equipment, impairment of long-lived assets, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates.
Receivables, Policy	Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments.
Inventory, Policy	Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).

Balance_Sheet_Components_Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2015
Balance Sheet Related Disclosures [Abstract]
Accounts Receivable, Net	Accounts receivable consists of the following:
		March 31,			December 31,
		2015			2014
	Accounts receivable, gross	$	5,058		$	4,949
	Less: allowance for doubtful accounts	(298		)	(301		)
	Accounts receivable, net	$	4,760		$	4,648
Allowance for Doubtful Accounts	The following is the change in our allowance for doubtful accounts:
		Three Months Ended
		March 31,
		2015			2014
	Balance at beginning of period	$	301		$	315
	Reductions credited	(3		)	(3		)
	Balance at end of period	$	298		$	312
Inventories	Inventories consist of the following:
		March 31,			December 31,
		2015			2014
	Finished goods	$	2,234		$	1,697
	Work-in-process	1,061			1,201
	Inventories	$	3,295		$	2,898
Property and Equipment, Net	Property and equipment consists of the following:
		March 31,			December 31,
		2015			2014
	Gross carrying amount	$	27,783		$	27,573
	Less: accumulated depreciation and amortization	(22,021		)	(21,171		)
	Property and equipment, net	$	5,762		$	6,402
Accrued Liabilities and Current Portion of Long-Term Liabilities	Accrued liabilities and current portion of long-term liabilities consist of the following:
		March 31,			December 31,
		2015			2014
	Accrued payroll and related liabilities	$	2,530		$	2,385
	Accrued commissions and royalties	2,114			2,055
	Accrued interest payable	1,475			1,383
	Current portion of accrued liabilities for asset financings	1,416			1,744
	Reserve for warranty returns	99			105
	Deferred revenue	99			30
	Other	1,396			837
	Accrued liabilities and current portion of long-term liabilities	$	9,129		$	8,539
Reserve for Warranty Returns	The following is the change in our reserve for warranty returns:
		Three Months Ended
		March 31,
		2015			2014
	Reserve for warranty returns:
	Balance at beginning of period	$	105		$	329
	Benefit	(1		)	(90		)
	Charge-offs	(5		)	(7		)
	Balance at end of period	$	99		$	232

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of March 31, 2015 and December 31, 2014:
		Level 1		Level 2		Level 3		Total
	As of March 31, 2015:
	Money market funds	$	14,272	$	—	$	—	$	14,272
	As of December 31, 2014:
	Money market funds	$	17,480	$	—	$	—	$	17,480

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	The following table sets forth the computation of basic and diluted net loss per share:
		Three Months Ended
		March 31,
		2015				2014
	Net loss	$	(3,364	)		$	(2,507	)
	Shares used in computing net loss per share - basic and diluted	23,328				22,204
	Net loss per common share - basic and diluted	$	(0.14	)		$	(0.11	)
Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted average shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive:
		Three Months Ended
		March 31,
		2015			2014
	Employee equity incentive plans	4,209			4,630

Supplemental_Disclosure_of_Cas1

Supplemental Disclosure of Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2015
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental disclosure of cash flow information is as follows:
		Three Months Ended
		March 31,
		2015		2014
	Cash paid during the period for:
	Income taxes	$	150	$	40
	Interest	12		54
	Non-cash investing and financing activities:
	Acquisitions of property and equipment and other assets under extended payment terms	$	58	$	2,825

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Region	Revenue by geographic region, is as follows:
		Three Months Ended
		March 31,
		2015			2014
	Japan	$	11,815		$	5,426
	Taiwan	1,479			1,714
	Korea	321			1,596
	China	280			966
	Europe	183			514
	United States	33			3,046
	Other	281			279
		$	14,392		$	13,541
Schedule of Revenue from Significant Customers	The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows:
		Three Months Ended
		March 31,
		2015		2014
	Distributors:
	All distributors	46	%	57	%
	Distributor A	29	%	29	%
	End customers: 1
	Top five end customers	80	%	55	%
	End customer A	48	%	2	%
	End customer B	13	%	10	%
	End customer C	10	%	12	%
	End customer D	—	%	11	%
	End customer E	—	%	14	%
	1	End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.
Schedule of Accounts Receivable Percentage from Significant Customers	The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented:
		March 31,		December 31,
		2015		2014
	Account X	43	%	37	%
	Account Y	28	%	15	%
	Account Z	1	%	16	%

Basis_of_Presentation_Details

Basis of Presentation (Details)	Mar. 31, 2015
	Patents
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of patents held	132

Balance_Sheet_Components_Accou

Balance Sheet Components (Accounts Receivable) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Accounts Receivable, Net [Abstract]
Accounts receivable, gross	$5,058	$4,949
Less: allowance for doubtful accounts	-298	-301	-312	-315
Accounts receivable, net	$4,760	$4,648

Balance_Sheet_Components_Allow

Balance Sheet Components (Allowance for Doubtful Accounts) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$301	$315
Reductions credited	-3	-3
Balance at end of period	$298	$312

Balance_Sheet_Components_Inven

Balance Sheet Components (Inventories) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Balance Sheet Related Disclosures [Abstract]
Finished goods	$2,234	$1,697
Work-in-process	1,061	1,201
Inventories	$3,295	$2,898

Balance_Sheet_Components_Prope

Balance Sheet Components (Property Plant and Equipment) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Balance Sheet Related Disclosures [Abstract]
Gross carrying amount	$27,783	$27,573
Less: accumulated depreciation and amortization	-22,021	-21,171
Property and equipment, net	$5,762	$6,402

Balance_Sheet_Components_Accru

Balance Sheet Components (Accrued Liabilities and Current Portion of Long-Term Liabilities) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Balance Sheet Related Disclosures [Abstract]
Accrued payroll and related liabilities	$2,530	$2,385
Accrued commissions and royalties	2,114	2,055
Accrued interest payable	1,475	1,383
Current portion of accrued liabilities for asset financings	1,416	1,744
Reserve for warranty returns	99	105	232	329
Deferred revenue	99	30
Other	1,396	837
Accrued liabilities and current portion of long-term liabilities	$9,129	$8,539

Balance_Sheet_Components_Reser

Balance Sheet Components (Reserve for Warranty Returns) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$105	$329
Benefit	-1	-90
Charge-offs	-5	-7
Balance at end of period	$99	$232

Balance_Sheet_Components_Short

Balance Sheet Components (Short-Term Line of Credit) (Narrative) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Dec. 04, 2013	Dec. 14, 2012
In Thousands, unless otherwise specified
Balance Sheet Related Disclosures [Abstract]
Maximum borrowing capacity				$10,000
Line of credit facility, component of calculation for maximum borrowing amount under formula advances				1,000
Line of credit facility maximum borrowing capacity limited by eligible AR				80.00%
Line of credit facility, maximum borrowing capacity under non-formula advances			10,000
Line of credit facility, amount outstanding	$3,000	$3,000
Short-term debt, weighted average interest rate	3.50%	3.50%

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	$14,272	$17,480
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	0	0
Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	$14,272	$17,480

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Reversal of uncertain tax positions	$209	$270
Liability for uncertain tax positions	1,552		1,712
Estimated decrease in total gross unrecogized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations, including interest and penalties	$287
China, income tax holiday, reduced statutory rate	15.00%

Earnings_Per_Share_Earnings_Pe

Earnings Per Share (Earnings Per Share) (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Net loss	($3,364)	($2,507)
Shares used in computing net loss per share - basic and diluted	23,328	22,204
Net loss per common share - basic and diluted	($0.14)	($0.11)

Earnings_Per_Share_Antidilutiv

Earnings Per Share (Antidilutive Effect on Weighted Average Shares) (Details)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Employee equity incentive plans (in shares)	4,209	4,630

Supplemental_Disclosure_of_Cas2

Supplemental Disclosure of Cash Flow Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash paid during the period for:
Income taxes	$150	$40
Interest	12	54
Non-cash investing and financing activities:
Acquisitions of property and equipment and other assets under extended payment terms	$58	$2,825

Segment_Information_Geographic

Segment Information (Geographic Information) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenue, net	$14,392	$13,541
Japan
Revenue, net	11,815	5,426
Taiwan
Revenue, net	1,479	1,714
Korea
Revenue, net	321	1,596
China
Revenue, net	280	966
Europe
Revenue, net	183	514
United States
Revenue, net	33	3,046
Other
Revenue, net	$281	$279

Segment_Information_Major_Cust

Segment Information (Major Customers) (Narrative) (Details)	3 Months Ended
	Mar. 31, 2015
Segment Reporting Information
Number of customers included in five largest customer concentration disclosure	5
Revenue, net | Minimum
Segment Reporting Information
Concentration risk benchmark percentage	10.00%
Accounts Receivable | Minimum
Segment Reporting Information
Concentration risk benchmark percentage	10.00%

Segment_Information_Revenue_by

Segment Information (Revenue by Major Customer) (Details) (Revenue, net)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
All distributors
Revenue, Major Customer
Percentage of revenue	46.00%		57.00%
Distributor A
Revenue, Major Customer
Percentage of revenue	29.00%		29.00%
Top five end customers
Revenue, Major Customer
Percentage of revenue	80.00%	[1]	55.00%	[1]
End customer A
Revenue, Major Customer
Percentage of revenue	48.00%	[1]	2.00%	[1]
End customer B
Revenue, Major Customer
Percentage of revenue	13.00%	[1]	10.00%	[1]
End customer C
Revenue, Major Customer
Percentage of revenue	10.00%	[1]	12.00%	[1]
End customer D
Revenue, Major Customer
Percentage of revenue	0.00%	[1]	11.00%	[1]
End customer E
Revenue, Major Customer
Percentage of revenue	0.00%	[1]	14.00%	[1]
[1]	End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.

Segment_Information_Accounts_R

Segment Information (Accounts Receivable by Major Customer) (Details) (Accounts Receivable)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Account A
Segment Reporting Information
Percentage of accounts receivable	43.00%	37.00%
Account B
Segment Reporting Information
Percentage of accounts receivable	28.00%	15.00%
Account C
Segment Reporting Information
Percentage of accounts receivable	1.00%	16.00%