Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Pixelworks, Inc. | ||
Entity Central Index Key | 1,040,161 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 28,073,767 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float, Share Price | $ 5.88 | ||
Entity Public Float | $ 116,515,993 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 26,591 | $ 17,926 |
Accounts receivable, net | 5,988 | 4,648 |
Inventories | 3,266 | 2,898 |
Prepaid expenses and other current assets | 644 | 888 |
Total current assets | 36,489 | 26,360 |
Property and equipment, net | 6,543 | 6,402 |
Other assets, net | 810 | 1,382 |
Total assets | 43,842 | 34,144 |
Current liabilities: | ||
Accounts payable | 2,944 | 3,154 |
Accrued liabilities and current portion of long-term liabilities | 8,528 | 8,539 |
Current portion of income taxes payable | 221 | 197 |
Short-term line of credit | 3,000 | 3,000 |
Total current liabilities | 14,693 | 14,890 |
Long-term liabilities, net of current portion | 831 | 1,476 |
Income taxes payable, net of current portion | 1,942 | 2,094 |
Total liabilities | $ 17,466 | $ 18,460 |
Commitments and contingencies (Note 6) | ||
Shareholders' equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued | $ 0 | $ 0 |
Common stock, $0.001 par value; 250,000,000 shares authorized, 27,764,208 and 23,220,534 shares issued and outstanding as of December 31, 2015 and 2014, respectively | 390,520 | 369,253 |
Accumulated other comprehensive income | 6 | 11 |
Accumulated deficit | (364,150) | (353,580) |
Total shareholders' equity | 26,376 | 15,684 |
Total liabilities and shareholders' equity | $ 43,842 | $ 34,144 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 27,764,208 | 23,220,534 |
Common stock, shares outstanding | 27,764,208 | 23,220,534 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Statement [Abstract] | ||||
Revenue, net | $ 59,517 | $ 60,923 | $ 48,118 | |
Cost of revenue (1) | [1] | 30,224 | 29,142 | 21,708 |
Gross profit | 29,293 | 31,781 | 26,410 | |
Operating expenses: | ||||
Research and development (2) | [2] | 24,644 | 25,296 | 20,664 |
Selling, general and administrative (3) | [3] | 14,453 | 15,434 | 13,883 |
Total operating expenses | 39,097 | 40,730 | 34,547 | |
Loss from operations | (9,804) | (8,949) | (8,137) | |
Interest expense and other, net | (446) | (493) | (405) | |
Loss before income taxes | (10,250) | (9,442) | (8,542) | |
Provision for income taxes | 320 | 518 | 328 | |
Net loss | $ (10,570) | $ (9,960) | $ (8,870) | |
Net loss per share - basic and diluted | $ (0.42) | $ (0.44) | $ (0.45) | |
Weighted average shares outstanding - basic and diluted | 25,088 | 22,766 | 19,816 | |
[1] | Includes: Stock-based compensation 196 262 164 Additional amortization of non-cancelable prepaid royalty (14) 65 369 | |||
[2] | Includes stock-based compensation 1,927 2,441 1,204 | |||
[3] | Includes stock-based compensation 1,798 2,599 1,640 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cost of revenue | |||
Stock-based compensation | $ 196 | $ 262 | $ 164 |
Additional amortization of non-cancelable prepaid royalty | (14) | 65 | 369 |
Research and development | |||
Stock-based compensation | 1,927 | 2,441 | 1,204 |
Selling, general and administrative | |||
Stock-based compensation | $ 1,798 | $ 2,599 | $ 1,640 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net loss | $ (10,570) | $ (9,960) | $ (8,870) |
Other comprehensive income (loss): | |||
Foreign pension adjustment | (6) | 112 | 37 |
Tax effect of pension adjustment | 1 | (19) | (6) |
Total comprehensive loss | $ (10,575) | $ (9,867) | $ (8,839) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (10,570) | $ (9,960) | $ (8,870) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,263 | 4,514 | 4,409 |
Stock-based compensation | 3,921 | 5,302 | 3,008 |
Reversal of uncertain tax positions | (323) | (270) | (452) |
Deferred income tax expense | 23 | 89 | 154 |
Gain on asset disposal | 0 | 0 | (12) |
Other | 53 | 72 | 61 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (1,340) | 113 | (989) |
Inventories | (368) | (1,235) | 1,039 |
Prepaid expenses and other current and long-term assets, net | 163 | 2,253 | (637) |
Accounts payable | (210) | 1,827 | (937) |
Accrued current and long-term liabilities | 346 | (1,446) | 1,837 |
Income taxes payable | 195 | 429 | 207 |
Net cash provided by (used in) operating activities | (3,847) | 1,688 | (1,182) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (3,012) | (2,861) | (1,694) |
Purchases of licensed technology | (55) | 0 | (598) |
Proceeds from sales of property and equipment | 0 | 0 | 13 |
Net cash used in investing activities | (3,067) | (2,861) | (2,279) |
Cash flows from financing activities: | |||
Net proceeds from equity offering | 16,356 | 0 | 9,625 |
Payments on asset financings | (1,767) | (3,013) | (2,243) |
Proceeds from issuances of common stock | 990 | 1,307 | 480 |
Proceeds from line of credit | 0 | 0 | 3,000 |
Net cash provided by (used in) financing activities | 15,579 | (1,706) | 10,862 |
Net increase (decrease) in cash and cash equivalents | 8,665 | (2,879) | 7,401 |
Cash and cash equivalents, beginning of period | 17,926 | 20,805 | 13,404 |
Cash and cash equivalents, end of period | 26,591 | 17,926 | 20,805 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net of refunds received | 366 | 213 | 382 |
Cash paid during the year for interest | 104 | 193 | 149 |
Non-cash investing and financing activities: | |||
Acquisitions of property and equipment and other assets under extended payment terms | $ 765 | $ 3,381 | $ 1,266 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2012 | $ 14,668 | $ 349,531 | $ (113) | $ (334,750) |
Beginning balance, shares at Dec. 31, 2012 | 18,400,783 | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Stock issued under employee equity incentive plans | 480 | $ 480 | 0 | 0 |
Stock issued under employee equity incentive plans, shares | 581,649 | |||
Equity offering | $ 9,625 | $ 9,625 | 0 | 0 |
Equity offering, shares | 3,024,500 | 3,024,500 | ||
Stock-based compensation expense | $ 3,008 | $ 3,008 | 0 | 0 |
Net loss | (8,870) | 0 | 0 | (8,870) |
Foreign pension adjustment, net of tax | 31 | 0 | 31 | 0 |
Ending balance at Dec. 31, 2013 | 18,942 | $ 362,644 | (82) | (343,620) |
Ending balance, shares at Dec. 31, 2013 | 22,006,932 | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Stock issued under employee equity incentive plans | 1,307 | $ 1,307 | 0 | 0 |
Stock issued under employee equity incentive plans, shares | 1,213,602 | |||
Stock-based compensation expense | 5,302 | $ 5,302 | 0 | 0 |
Net loss | (9,960) | 0 | 0 | (9,960) |
Foreign pension adjustment, net of tax | 93 | 0 | 93 | 0 |
Ending balance at Dec. 31, 2014 | 15,684 | $ 369,253 | 11 | (353,580) |
Ending balance, shares at Dec. 31, 2014 | 23,220,534 | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Stock issued under employee equity incentive plans | 990 | $ 990 | 0 | 0 |
Stock issued under employee equity incentive plans, shares | 806,174 | |||
Equity offering | $ 16,356 | $ 16,356 | 0 | 0 |
Equity offering, shares | 3,737,500 | 3,737,500 | ||
Stock-based compensation expense | $ 3,921 | $ 3,921 | 0 | 0 |
Net loss | (10,570) | 0 | 0 | (10,570) |
Foreign pension adjustment, net of tax | (5) | 0 | (5) | 0 |
Ending balance at Dec. 31, 2015 | $ 26,376 | $ 390,520 | $ 6 | $ (364,150) |
Ending balance, shares at Dec. 31, 2015 | 27,764,208 |
Consolidated Statements of Sha9
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax effect of foreign pension adjustment | $ (1) | $ 19 | $ 6 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 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 can be 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, reducing panel costs and optimizing the video display pipeline efficiency. Our primary target markets include digital projection systems, tablets, smartphones, and Ultrabook TM devices. We have an intellectual property portfolio of 135 patents related to the visual display of digital image data. We focus our research and development efforts on developing video enhancement solutions for our target markets that increase performance, video quality and device functionality while reducing power consumed. We seek to expand our technology portfolio through internal development and co-development with business partners, and we continually evaluate acquisition opportunities and other ways to leverage our technology into other high-value markets. Pixelworks was founded in 1997 and is incorporated under the laws of the state of Oregon. Our consolidated financial statements include the accounts of Pixelworks and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated. All foreign subsidiaries use the U.S. dollar as the functional currency, and as a result, transaction gains and losses are included in the consolidated statements of operations. Transaction losses were $125 , $159 and $123 for the years ended December 31, 2015, 2014 and 2013, respectively. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents We classify all cash and highly liquid investments with original maturities of three months or less at the date of purchase as cash and cash equivalents. Cash equivalents, which consist of U.S. denominated money market funds totaled $25,343 and $17,480 as of December 31, 2015 and 2014 , respectively. Accounts Receivable Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments. At the end of each reporting period, we estimate the allowance for doubtful accounts based on an account-by-account risk analysis of outstanding receivable balances. The determination to write-off specific accounts receivable balances is made based on the likelihood of collection and past due status. Past due status is based on invoice date and terms specific to each customer. 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). Property and Equipment Property and equipment are stated at cost. Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of the assets which are generally as follows: Software Lesser of 3 years or contractual license term Equipment, furniture and fixtures 2 years Tooling 2 to 4 years Leasehold improvements Lesser of lease term or estimated useful life The cost of property and equipment repairs and maintenance is expensed as incurred. Licensed Technology We have capitalized licensed technology assets in other long-term assets. These assets are stated at cost and are amortized on a straight-line basis over the term of the license or the estimated life of the asset, if the license is not contractually limited, which is generally two to five years. Useful Lives and Recoverability of Equipment and Other Long-Lived Assets We evaluate the remaining useful life and recoverability of equipment and other assets, including identifiable intangible assets with definite lives, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If there is an indicator of impairment, we prepare an estimate of future, undiscounted cash flows expected to result from the use of each asset and its eventual disposition. If these cash flows are less than the carrying value of the asset, we adjust the carrying amount of the asset to its estimated fair value. Revenue Recognition We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection is reasonably assured. For product sales, we require customers to provide purchase orders prior to shipment and we consider delivery to occur upon shipment provided title and risk of loss have passed to the customer based on the shipping terms. These conditions are generally satisfied upon shipment of the underlying product. There are no customer acceptance provisions associated with our products, and except for replacement of defective products under our warranty program discussed below, we have no obligation to accept product returns from end customers; however, we have accepted returns on a case-by-case basis as customer accommodations in the past. As a result, we provide for estimated reductions to gross profit for these sales returns in our reserve for sales returns and allowances. At the end of each reporting period, we estimate the reserve based on historical experience and knowledge of any applicable events or transactions. The reserve is included in accrued liabilities in our consolidated balance sheets. A portion of our sales are made to distributors under agreements that grant the distributor limited stock rotation rights and price protection on in-stock inventory. The stock rotation rights allow these distributors to exchange a limited amount of their in-stock inventory for other Pixelworks product. As a result, we provide for estimated reductions to gross profit for these stock rotations in our reserve for sales returns and allowances. At the end of each reporting period, we estimate the reserve based on historical experience and knowledge of any applicable events or transactions. The reserve is included in accrued liabilities in our consolidated balance sheets. On occasion, we derive revenue from the license of our internally developed intellectual property ("IP"). IP licensing agreements that we enter into generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Our license fee arrangements generally include multiple deliverables and we are required to determine whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of accounting, we allocate the total fee on such arrangements to the individual units of accounting using management’s best estimate of selling price ("ESP"), if third party evidence ("TPE") or vendor specific objective evidence ("VSOE") does not exist. We defer revenue recognition for consideration that is contingent upon future performance or other contractual terms. The Company's process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. The key factors considered by the Company in developing the ESPs include the nature and complexity of the licensed technologies, our cost to provide the deliverables, the availability of substitute technologies in the marketplace and the Company's historical pricing practices. We then recognize revenue for each unit of accounting depending on the nature of the deliverable(s) comprising the unit of accounting in accordance with the revenue recognition criteria mentioned above. Fees under these agreements generally include (a) license fees relating to our IP, (b) engineering services, and (c) support services. Historically, each of these elements have standalone value and therefore each are treated as separate units of accounting. Any future licensing arrangements will be analyzed based on the specific facts and circumstances which may be different than our historical licensing arrangements. For deliverables related to licenses of our technology that involve significant engineering services, we recognize revenue in accordance with the provisions of the proportional performance method. We determine costs associated with engineering services using actual labor dollars incurred and estimated other direct or incremental costs allocated based on the percentage of time the engineer(s) spent on the project. These costs are deferred until revenue recognition criteria have been met, at which time they are reclassified as cost of revenue. Warranty Program We warrant that our products will be free from defects in material and workmanship for a period of twelve months from delivery. Warranty repairs are guaranteed for the remainder of the original warranty period. Our warranty is limited to repairing or replacing products, or refunding the purchase price. At the end of each reporting period, we estimate a reserve for warranty returns based on historical experience and knowledge of any applicable events or transactions. The reserve for warranty returns is included in accrued liabilities in our consolidated balance sheets. Stock-Based Compensation We currently sponsor a stock incentive plan that allows for issuance of employee stock options and restricted stock awards, including restricted stock units. We also have an employee stock purchase plan for all eligible employees. The fair value of share-based payment awards is expensed straight-line over the requisite service period, which is generally the vesting period, for the entire award. Additionally, any modification of an award that increases its fair value will require us to recognize additional expense. The fair value of our stock option grants and purchase rights under our employee stock purchase plan are estimated as of the grant date using the Black-Scholes option pricing model which is affected by our estimates of the risk free interest rate, our expected dividend yield, expected term and the expected share price volatility of our common shares over the expected term. The fair values of our restricted stock awards are based on the market value of our stock on the date of grant, adjusted for the effect of estimated forfeitures. Research and Development Costs associated with research and development activities are expensed as incurred, except for items with alternate future uses which are capitalized and depreciated over their estimated useful life. On occasion, we enter into co-development arrangements with current or prospective integrated circuit ("IC") customers to defray a portion of the research and development expenses we expect to incur in connection with our development of an IC product. As amounts become due and payable without recourse under co-development agreements, they are offset against research and development expense up to the amount of related costs incurred. Income Taxes We account for income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial statement carrying amounts and tax bases of assets and liabilities. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish a valuation allowance to reduce deferred tax assets if it is "more likely than not" that a portion or all of the asset will not be realized in future tax returns. An uncertain tax position represents our expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, we do not recognize the tax benefits resulting from such positions and report the tax effects for uncertain tax positions in our consolidated balance sheets. Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax, consists of the following: December 31, 2015 2014 Actuarial income on foreign pension obligation $ 28 $ 38 Accumulated transition foreign pension obligation (22 ) (27 ) Accumulated other comprehensive income $ 6 $ 11 Fair Value of Financial Instruments See "Note 4: Fair Value Measurements" for information regarding accounting policies related to the fair value of our financial instruments. 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. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use (ROU) asset and a corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the ROU asset and for operating leases the lessee would recognize a straight-line total lease expense. The Company is evaluating effects of the adoption of this update on its financial position, results of operations and cash flows. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"), which requires all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. We elected to prospectively adopt the accounting standard in the beginning of our fourth quarter of fiscal 2015. Prior periods in our consolidated balance sheets were not retrospectively adjusted. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"), which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective prospectively and is effective for the Company on January 1, 2017, with early adoption permitted. We do not expect the adoption of this accounting standard update to impact our financial position, results of operations, or cash flows. 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, 2018. 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. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | BALANCE SHEET COMPONENTS Accounts Receivable, Net Accounts receivable consists of the following: December 31, 2015 2014 Accounts receivable, gross $ 6,048 $ 4,949 Allowance for doubtful accounts (60 ) (301 ) Accounts receivable, net $ 5,988 $ 4,648 The following is a summary of the change in our allowance for doubtful accounts: Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 301 $ 315 $ 352 Additions charged 9 2 10 Accounts written-off, net of recoveries (250 ) (16 ) (47 ) Balance at end of year $ 60 $ 301 $ 315 Inventories Inventories consist of the following: December 31, 2015 2014 Finished goods $ 2,174 $ 1,697 Work-in-process 1,092 1,201 Inventories $ 3,266 $ 2,898 We recorded inventory write-downs of $199 , $267 and $24 for the years ended December 31, 2015, 2014 and 2013, respectively. The inventory write-downs were for lower of cost or market and excess and obsolescence exposure, net of sales of previously reserved inventory of $8 , $56 and $66 for the years ended December 31, 2015, 2014 and 2013, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of current prepaid expenses, deposits, income taxes receivable and other receivables. We prospectively adopted ASU 2015-17 during the fourth quarter of 2015, therefore, deferred tax assets are included in the December 31, 2014 balance but are not included in the December 31, 2015 balance. Property and Equipment, Net Property and equipment consists of the following: December 31, 2015 2014 Software $ 8,226 $ 11,883 Equipment, furniture and fixtures 9,847 9,171 Tooling 5,810 4,282 Leasehold improvements 2,337 2,237 26,220 27,573 Accumulated depreciation and amortization (19,677 ) (21,171 ) Property and equipment, net $ 6,543 $ 6,402 Software amortization was $2,127 , $2,282 and $2,426 for the years ended December 31, 2015, 2014 and 2013, respectively. Depreciation and amortization expense for equipment, furniture, fixtures, tooling and leasehold improvements was $1,483 , $1,293 and $1,590 for the years ended December 31, 2015, 2014 and 2013, respectively. Other Assets, Net Other assets consist primarily of licensed technology, deposits and deferred tax assets. Amortization of licensed technology was $653 , $939 and $393 for the years ended December 31, 2015, 2014 and 2013, respectively. Accrued Liabilities and Current Portion of Long-Term Liabilities Accrued liabilities and current portion of long-term liabilities consist of the following: December 31, 2015 2014 Accrued payroll and related liabilities $ 2,419 $ 2,385 Accrued commissions and royalties 2,220 2,055 Accrued interest payable 1,754 1,383 Current portion of accrued liabilities for asset financings 1,241 1,744 Reserve for warranty returns 49 105 Other 845 867 Accrued liabilities and current portion of long-term liabilities $ 8,528 $ 8,539 The following is a summary of the change in our reserve for warranty returns: Year Ended December 31, 2015 2014 2013 Reserve for warranty returns: Balance at beginning of year $ 105 $ 329 $ 457 Provision (benefit) (24 ) (195 ) 84 Charge-offs (32 ) (29 ) (212 ) Balance at end of year $ 49 $ 105 $ 329 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 (the "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. On December 18, 2015, we and the Bank entered into Amendment No. 3 to the Revolving Loan Agreement which changes the maturity date of the revolving line of credit provided pursuant to the Revolving Loan Agreement to December 30, 2016. The maturity date was previously January 1, 2016, as provided by Amendment No. 2 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. Amounts advanced under the Revolving Line bear interest at an annual rate equal to the lender's prime rate plus 0.25% . The Revolving Loan Agreement, as amended also provides an option for LIBOR advances that bear interest based on the LIBOR rate. Interest on the Revolving Line is due monthly, with the balance due on December 30, 2016, which is the scheduled maturity date for the Revolving Line. The Revolving Loan Agreement, as amended contains customary affirmative and negative covenants, including with respect to the following: compliance with laws, provision of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at the Bank, the Bank's access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. The covenants also require that the Company maintain a minimum ratio of qualifying financial assets to the sum of qualifying financial obligations. The Revolving Loan Agreement, as amended also contains customary events of default, including the following: defaults with respect to covenant compliance, the occurrence of a material adverse change, the occurrence of certain bankruptcy or insolvency events, cross-defaults, judgment defaults and material misrepresentations. 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. To secure the repayment of any amounts borrowed under the Revolving Loan Agreement, as amended, the Company granted to the Bank a security interest in substantially all of its assets, excluding its intellectual property assets. The Company has agreed not to pledge or otherwise encumber its intellectual property assets without prior written permission from the Bank. Short-term borrowings outstanding under the Revolving Line consisted of non-formula advances of $3,000 as of December 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 December 31, 2015 and December 31, 2014 was 3.75% and 3.50% , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 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 consolidated balance sheets as of December 31, 2015 and 2014: Level 1 Level 2 Level 3 Total As of December 31, 2015: Money market funds $ 25,343 $ — $ — $ 25,343 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 | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Current and Deferred Income Tax Expense Domestic and foreign pre-tax income (loss) is as follows: Year Ended December 31, 2015 2014 2013 Domestic $ (11,675 ) $ (10,858 ) $ (9,705 ) Foreign 1,425 1,416 1,163 Domestic and foreign pre-tax loss $ (10,250 ) $ (9,442 ) $ (8,542 ) Income tax expense attributable to operations is comprised of the following: Year Ended December 31, 2015 2014 2013 Current: Federal $ 55 $ 55 $ 55 State 2 — (17 ) Foreign 240 374 136 Total current 297 429 174 Deferred: Foreign 23 89 154 Total deferred 23 89 154 Income tax expense $ 320 $ 518 $ 328 The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, 2015 2014 2013 Federal statutory rate 34 % 34 % 34 % Expiration of tax attributes (18 ) (4 ) (38 ) Change in valuation allowance (17 ) (39 ) 8 Stock-based compensation (7 ) (2 ) (6 ) State income taxes, net of federal tax benefit 3 3 2 Impact of foreign earnings 1 1 2 Tax contingencies, net of reversals — 1 (5 ) Other 1 1 (1 ) Effective income tax rate (3 )% (5 )% (4 )% Deferred Tax Assets, Liabilities and Valuation Allowance Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 73,903 $ 70,237 Research and experimentation credit carryforwards 11,688 11,026 Foreign tax credit carryforwards 3,884 4,049 Deferred stock-based compensation 2,623 2,794 Depreciation and amortization 1,800 2,046 Reserves and accrued expenses 606 740 Capital loss carryforwards 358 2,212 Other 490 529 Total gross deferred tax assets 95,352 93,633 Deferred tax liabilities: Foreign earnings (376 ) (350 ) Other (317 ) (335 ) Total gross deferred tax liabilities (693 ) (685 ) Less valuation allowance (94,524 ) (92,792 ) Net deferred tax assets $ 135 $ 156 With the adoption of ASU 2015-17 in the fourth quarter of 2015, we were required to classify all deferred tax assets and liabilities, and any related valuation allowance, as non-current on the balance sheet. We elected to prospectively adopt the accounting standard in the beginning of our fourth quarter of 2015 and prior periods in the consolidated balance sheets were not retrospectively adjusted. Therefore, the current portion of the net deferred tax asset balance was $0 and $133 as of December 31, 2015 and 2014, respectively, and is included in prepaid expenses and other current assets in the consolidated balance sheets. The non-current portion of the net deferred tax asset balance was $135 and $27 as of December 31, 2015 and 2014, respectively, and is included in other assets, net in the consolidated balance sheets. Long-term deferred tax liabilities were $0 and $4 as of December 31, 2015 and 2014, respectively, and are included in long-term liabilities, net of current portion in the consolidated balance sheets. We continue to record a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2015 and 2014 as it is not more likely than not that we will realize a benefit from these assets in a future period. We have not provided a valuation allowance against any of our foreign net deferred tax assets as we have concluded it is more likely than not that we will realize a benefit from these assets in a future period because our subsidiaries in these jurisdictions are cost-plus taxpayers. The net valuation allowance increased $1,732 , increased $3,656 and decreased $705 for the years ended December 31, 2015, 2014, and 2013, respectively. As of December 31, 2015, we had federal and state net operating loss carryforwards of $214,415 and $16,932 respectively, which will expire between 2016 and 2035. As of December 31, 2015, we had available federal and state research and experimentation tax credit carryforwards of $8,523 and $3,639 , respectively, which will begin expiring in 2019. We have a general foreign tax credit of $3,209 which will begin expiring in 2016. Our ability to utilize our federal net operating losses may be limited by Section 382 of the Internal Revenue Code of 1986, as amended, which imposes an annual limit on the ability of a corporation that undergoes an "ownership change" to use its net operating loss carryforwards to reduce its tax liability. An ownership change is generally defined as a greater than 50% point increase in equity ownership by 5% shareholders in any three-year period. We had undistributed earnings of foreign subsidiaries of $2,577 as of December 31, 2015, for which we have recorded a deferred tax liability. Our Chinese subsidiary is designated as an Advanced Technology Service Enterprise, allowing it to benefit from a Chinese tax holiday resulting in a reduction of its tax rate to 15% through 2018 . On December 18, 2015, the Protecting Americans From Tax Hikes Act of 2015 was enacted, which permanently extended the research and development tax credit retroactively, beginning on January 1, 2015. The estimated research credit for 2015 has been included in our annual effective tax rate. On December 19, 2014, the Tax Increase Prevention Act of 2014 was enacted, which retroactively extended the research credit from January 1, 2014 to December 31, 2014. The estimated research credit for 2014 has been included in the calculation of our annual effective tax rate. The American Taxpayer Relief Act of 2012, which reinstated the United States federal research and development tax credit retroactively from January 1, 2012 through December 31, 2013, was not enacted into law until the first quarter of 2013. Therefore, the deferred tax asset resulting from such reinstatement for 2012 was reflected in 2013. Uncertain Tax Positions We have recorded tax reserves to address potential exposures involving positions that could be challenged by taxing authorities. As of December 31, 2015 the amount of our uncertain tax positions was a liability of $1,519 and a reduction to deferred tax assets of $473 . As of December 31, 2014, the amount of our uncertain tax positions was a liability of $1,712 and a reduction to deferred tax assets of $160 . The following is a summary of the change in our liability for uncertain tax positions and interest and penalties: 2015 2014 Uncertain tax positions: Balance at beginning of year $ 1,646 $ 1,592 Accrual for positions taken in a prior year 135 (21 ) Accrual for positions taken in current year 299 249 Reversals due to lapse of statute of limitations (217 ) (174 ) Balance at end of year $ 1,863 $ 1,646 Interest and penalties: Balance at beginning of year $ 226 $ 305 Accrual for positions taken in prior year 9 17 Reversals due to lapse of statute of limitations (106 ) (96 ) Balance at end of year $ 129 $ 226 During the years ended December 31, 2015, 2014 and 2013, we recognized $9 , $17 and $27 , respectively, of interest and penalties in income tax expense in our consolidated statements of operations. We file income tax returns in the U.S. and various foreign jurisdictions. A number of years may elapse before an uncertain tax position is resolved by settlement or statute of limitations. 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 $170 within the next twelve months due to the expiration of statutes of limitation in foreign jurisdictions. We are no longer subject to U.S. federal, state, and foreign examinations for years before 2012, 2011 and 2008, respectively. Our net operating loss and tax credit carryforwards from all years may be subject to adjustment for three years following the year in which utilized. We do not anticipate that any potential tax adjustments will have a significant impact on our financial position or results of operations. We were not subject to, nor have we received any notice of, income tax examinations in any jurisdiction as of December 31, 2015. During 2014, we were under examination in Japan for the tax years 2011 through 2013. The tax examination was finalized during 2015 and did not result in a material impact on the Company's financial position, results of operations or cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Royalties We license technology from third parties and have agreed to pay certain suppliers a royalty based on the number of chips sold or manufactured, the net sales price of the chips containing the licensed technology or a fixed non-cancelable fee. Royalty expense is recognized based on our estimated average unit cost for royalty contracts with non-cancelable prepayments and the stated contractual per unit rate for all other agreements. Royalty expense was $826 , $977 and $1,094 for the years ended December 31, 2015, 2014 and 2013, respectively, which is included in cost of revenue in our consolidated statements of operations. 401(k) Plan We sponsor a 401(k) plan for eligible employees. Participants may defer a percentage of their annual compensation on a pre-tax basis, not to exceed the dollar limit that is set by law. A discretionary matching contribution by the Company is allowed and is equal to a uniform percentage of the amount of salary reduction elected to be deferred, which percentage will be determined each year by the Company. We made no contributions to the 401(k) plan during the years ended December 31, 2015, 2014 or 2013. Leases We acquire rights to use certain software engineer design tools under software licenses, accounting for such arrangements is similar to capital leases. Our various office space and equipment leases are classified as operating leases. Certain of our leases for office space contain provisions under which monthly rent escalates over time and certain leases also contain provisions for reimbursement of a specified amount of leasehold improvements. When lease agreements contain escalating rent clauses, we recognize rent expense on a straight-line basis over the term of the lease. When lease agreements provide allowances for leasehold improvements, we capitalize the leasehold improvement assets and amortize them on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset, and reduce rent expense on a straight-line basis over the term of the lease by the amount of the asset capitalized. When lease agreements provide rent holidays, we reduce rent expense on a straight-line basis over the term of the lease by the amount of the rent holiday. As of December 31, 2015, future minimum payments under non-cancelable software licenses and operating lease agreements are as follows: Year Ending December 31, Software licenses Operating leases Total 2016 $ 1,348 $ 1,735 $ 3,083 2017 563 1,203 1,766 2018 — 577 577 1,911 $ 3,515 $ 5,426 Less: Interest component (155 ) Present value of minimum software license payments 1,756 Less: Current portion (1,241 ) Long-term portion of obligations $ 515 Rent expense for the years ended December 31, 2015, 2014 and 2013 was $1,735 , $1,740 and $1,822 , respectively. Contract Manufacturers In the normal course of business, we commit to purchase products from our contract manufacturers to be delivered within the next 90 days. In certain situations, should we cancel an order, we could be required to pay cancellation fees. Such obligations could impact our immediate results of operations but would not materially affect our business. Indemnifications Certain of our agreements include limited 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 December 31, 2015, we have not incurred any material liabilities arising from these indemnification obligations. In the future, however, such obligations could immediately impact our results of operations but are not expected to materially affect our business. 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share amounts are computed based on the weighted average number of common shares outstanding. Diluted weighted average shares outstanding include the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. The following schedule reconciles the computation of basic and diluted net loss per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Net loss $ (10,570 ) $ (9,960 ) $ (8,870 ) Weighted average shares outstanding - basic and diluted 25,088 22,766 19,816 Net loss per share - basic and diluted $ (0.42 ) $ (0.44 ) $ (0.45 ) The following weighted average shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Year Ended December 31, 2015 2014 2013 Employee equity incentive plans 4,248 4,346 4,338 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 stock purchase plan. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $0.001 per share. The Board of Directors is authorized to fix or alter the rights, preferences, privileges and restrictions granted to, or imposed on, each series of preferred stock. There were no shares of preferred stock issued as of December 31, 2015 and 2014 . Common Stock The Company is authorized to issue 250,000,000 shares of common stock with a par value of $0.001 per share. Shareholders of common stock have unlimited voting rights and are entitled to receive the net assets of the Company upon dissolution, subject to the rights of the preferred shareholders, if any. Equity Offering On August 12, 2015, we completed the sale of 3,737,500 shares of common stock, in an underwritten registered offering at a price to the public of $4.75 per share. Net proceeds to the Company, after deducting underwriting discounts and commissions and other expenses payable by us were approximately $16,356 . On August 21, 2013, we completed the sale of 3,024,500 shares of common stock, in an underwritten registered offering at a price to the public of $3.50 per share. Net proceeds to the Company, after deducting underwriting discounts, commissions, and other expenses, were approximately $9,625 . Employee Equity Incentive Plans On May 23, 2006, our shareholders approved the adoption of the Pixelworks, Inc. 2006 Stock Incentive Plan (the "2006 Plan"). Our shareholders approved increases to the total authorized shares of 2,000,000 1,000,000 , 1,000,000 , 1,000,000 , 1,000,000 , 1,150,000 , and 1,000,000 on May 13, 2015, May 15, 2014, May 9, 2013, May 15, 2012, May 18, 2010, May 19, 2009, and May 20, 2008, respectively, increasing the total authorized shares available for issuance as equity awards to 9,483,333 shares. The 2006 Plan replaced our previously existing stock incentive plans including our 1997 Stock Incentive Plan, as amended, our 2001 Nonqualified Stock Option Plan, the Equator Technologies, Inc. 1996 Stock Incentive Plan, as amended, and Equator Technologies, Inc. stand-alone option plans (collectively, "Old Stock Incentive Plans"). Upon adoption of the 2006 Plan, no additional options could be issued under the Old Stock Incentive Plans, although awards previously granted under the Old Stock Incentive Plans remain outstanding according to their original terms. As of December 31, 2015 , 1,556,278 shares were available for grant under the 2006 Plan. Stock Options Options granted must generally be exercised while the individual is an employee. In May 2009, the 2006 Plan was modified to reduce the contractual life of newly issued stock awards from ten to six years. Our new hire vesting schedule provides that each option becomes exercisable at a rate of 25% on the first anniversary date of the grant and 2.083% on the last day of every month thereafter for a total of 36 additional increments. Our merit vesting schedule provides that merit-type awards become exercisable monthly over a period of three years. The following is a summary of stock option activity: Number of shares Weighted average exercise price Options outstanding as of December 31, 2014: 3,335,574 $ 3.34 Granted 21,000 5.12 Exercised (220,236 ) 2.91 Canceled and forfeited (4,375 ) 5.81 Expired (74,843 ) 19.82 Options outstanding as of December 31, 2015: 3,057,120 $ 2.98 The following table summarizes information about options outstanding as of December 31, 2015 : Options Outstanding Options Exercisable Range of exercise prices Number outstanding as of December 31, 2015 Weighted average remaining contractual life Weighted average exercise price Number exercisable as of December 31, 2015 Weighted average exercise price $0.60 - $2.01 684,042 2.71 $ 0.87 684,042 $ 0.87 2.08 - 2.36 717,023 2.09 2.33 709,587 2.33 2.37 - 3.15 718,811 1.48 3.08 668,581 3.07 3.21 - 4.44 620,797 1.14 3.51 610,215 3.50 4.52 - 15.51 316,447 1.58 7.71 271,575 8.07 $0.60 - $15.51 3,057,120 1.84 $ 2.98 2,944,000 $ 2.93 During the years ended December 31, 2015 , 2014 and 2013 the total intrinsic value of options exercised was $440 , $979 and $112 , respectively, for which no income tax benefit has been recorded because a full valuation allowance has been provided for our U.S. deferred tax assets. As of December 31, 2015 , options outstanding had a total intrinsic value of $1,068 . Options outstanding that have vested and are expected to vest as of December 31, 2015 are as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Vested 2,944,000 $ 2.93 1.77 $ 1,067 Expected to vest 105,188 4.03 3.51 1 Total 3,049,188 $ 2.97 1.83 $ 1,068 Restricted Stock The 2006 Plan provides for the issuance of restricted stock, including restricted stock units. During the years ended December 31, 2015, 2014 and 2013 we granted 530,735 , 737,797 , and 1,030,673 shares, respectively, of restricted stock with a weighted average grant date fair value of $4.31 , $6.94 , and $3.95 per share, respectively. The following is a summary of restricted stock activity: Number of shares Weighted average grant date fair value Unvested at December 31, 2014: 927,496 $ 6.40 Granted 530,735 4.31 Vested (511,977 ) 5.66 Canceled (27,578 ) 5.89 Unvested at December 31, 2015: 918,676 $ 5.62 Expected to vest after December 31, 2015 (1) 679,473 $ 5.65 ________________ (1) As discussed in "Note 11: Subsequent Events", on February 1, 2016, Bruce Walicek resigned from his position as Chief Executive Officer. As a result, we have adjusted the number of shares expected to vest after December 31, 2015 to reflect any restricted stock units that were forfeited by Mr. Walicek in connection with his resignation. Employee Stock Purchase Plans On May 18, 2010, our shareholders approved the adoption of the 2010 Pixelworks, Inc. Employee Stock Purchase Plan (the "ESPP") for U.S. employees and for certain foreign subsidiary employees. The ESPP provides for separate offering periods commencing on February 1 and August 1, with the first offering period beginning August 1, 2010. Each offering period continues for a period of 18 months with purchases every six months . Each eligible employee may purchase up to 3,000 shares of stock on each purchase date, with a maximum annual purchase amount of $25 . The purchase price is equal to 85% of the lesser of the fair market value of the shares on the offering date or on the purchase date. A total of 1,300,000 shares of common stock have been reserved for issuance under the ESPP. During the years ended December 31, 2015 , 2014 and 2013, we issued 92,899 , 101,201 and 101,068 shares, respectively for proceeds of $352 , $274 and $198 , respectively, under the ESPP. Stock-Based Compensation Expense The fair value of stock-based compensation was determined using the Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2015 2014 2013 Stock Option Plans: Risk free interest rate 1.52 % 1.64 % 1.08 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 5.00 5.00 4.93 Volatility 68 % 73 % 82 % Employee Stock Purchase Plan: Risk free interest rate 0.28 % 0.22 % 0.19 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 1.10 1.02 1.03 Volatility 89 % 82 % 62 % The weighted average fair value of options granted during the years ended December 31, 2015 , 2014 and 2013 was $2.93 , $3.50 and $1.96 , respectively. The risk free interest rate is estimated using an average of treasury bill interest rates. The expected dividend yield is zero as we have not paid any dividends to date and do not expect to pay dividends in the future. Expected volatility is estimated based on the historical volatility of our common stock over the expected term as this represents our best estimate of future volatility. Subsequent to the May 2009 amendment of our 2006 Stock Incentive Plan, which shortened the contractual life of newly issued stock options from ten to six years, we have elected to use the "simplified method" to estimate expected term. Under the simplified method, an option's expected term is calculated as the average of its vesting period and original contractual life. The expected term of ESPP purchase rights is based on the estimated weighted average time to purchase. As of December 31, 2015 , unrecognized stock-based compensation expense is $2,418 , which is expected to be recognized as stock-based compensation expense over a weighted average period of 1.54 years. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have identified a single operating segment: the design and development of ICs for use in electronic display devices. Substantially all of our assets are located in the U.S. Geographic Information Revenue by geographic region, was as follows: Year Ended December 31, 2015 2014 2013 Japan $ 50,436 $ 36,062 $ 19,824 Taiwan 5,909 8,266 7,337 Korea 942 3,256 3,241 China 765 5,761 6,329 Europe 611 2,609 1,515 U.S. 167 3,656 8,407 Other 687 1,313 1,465 $ 59,517 $ 60,923 $ 48,118 Significant Customers The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented more than 10% of revenue in at least one of the periods presented, is as follows: Year Ended December 31, 2015 2014 2013 Distributors: All distributors 48 % 63 % 65 % Distributor A 31 % 29 % 31 % Distributor B 1 % 9 % 10 % End Customers: (1) Top five end customers 83 % 60 % 57 % End customer A 47 % 22 % 3 % End customer B 13 % 13 % 12 % End customer C 8 % 10 % 12 % End customer D — % 4 % 17 % ________________ (1) End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. Each of the following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: December 31, 2015 2014 Account X 49 % 37 % Account Y 34 % 15 % Account Z 1 % 16 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Period Ended March 31 June 30 September 30 December 31 2015 Revenue, net $ 14,392 $ 15,078 $ 16,570 $ 13,477 Gross profit 6,967 7,234 8,278 6,814 Loss from operations (3,238 ) (2,455 ) (1,201 ) (2,910 ) Loss before income taxes (3,345 ) (2,560 ) (1,306 ) (3,039 ) Net loss (3,364 ) (2,796 ) (1,243 ) (3,167 ) Net loss per share - basic and diluted (0.14 ) (0.12 ) (0.05 ) (0.11 ) 2014 Revenue, net $ 13,541 $ 15,166 $ 17,111 $ 15,105 Gross profit 7,995 7,661 8,566 7,559 Loss from operations (2,439 ) (1,935 ) (1,968 ) (2,607 ) Loss before income taxes (2,561 ) (2,065 ) (2,091 ) (2,725 ) Net loss (2,507 ) (2,382 ) (2,300 ) (2,771 ) Net loss per share - basic and diluted (0.11 ) (0.11 ) (0.10 ) (0.12 ) |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Effective February 1, 2016, Bruce Walicek resigned from his positions as Chief Executive Officer and a member of the Board of Directors of Pixelworks, Inc. Effective February 1, 2016, Stephen Domenik, a director of Pixelworks, Inc., was appointed as Interim Chief Executive Officer of Pixelworks, Inc. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("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. |
Cash and Cash Equivalents, Policy | We classify all cash and highly liquid investments with original maturities of three months or less at the date of purchase as cash and cash equivalents. Cash equivalents, which consist of U.S. denominated money market funds totaled $25,343 and $17,480 as of December 31, 2015 and 2014 , respectively. |
Accounts Receivable, Policy | Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments. At the end of each reporting period, we estimate the allowance for doubtful accounts based on an account-by-account risk analysis of outstanding receivable balances. The determination to write-off specific accounts receivable balances is made based on the likelihood of collection and past due status. Past due status is based on invoice date and terms specific to each customer. |
Inventories, 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). |
Property and Equipment, Policy | Property and equipment are stated at cost. Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of the assets which are generally as follows: Software Lesser of 3 years or contractual license term Equipment, furniture and fixtures 2 years Tooling 2 to 4 years Leasehold improvements Lesser of lease term or estimated useful life The cost of property and equipment repairs and maintenance is expensed as incurred. |
Licensed Technology, Policy | We have capitalized licensed technology assets in other long-term assets. These assets are stated at cost and are amortized on a straight-line basis over the term of the license or the estimated life of the asset, if the license is not contractually limited, which is generally two to five years. |
Useful Lives and Recoverability of Equipment and Other Long-Lived Assets, Policy | We evaluate the remaining useful life and recoverability of equipment and other assets, including identifiable intangible assets with definite lives, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If there is an indicator of impairment, we prepare an estimate of future, undiscounted cash flows expected to result from the use of each asset and its eventual disposition. If these cash flows are less than the carrying value of the asset, we adjust the carrying amount of the asset to its estimated fair value. |
Revenue Recognition, Policy | We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection is reasonably assured. For product sales, we require customers to provide purchase orders prior to shipment and we consider delivery to occur upon shipment provided title and risk of loss have passed to the customer based on the shipping terms. These conditions are generally satisfied upon shipment of the underlying product. There are no customer acceptance provisions associated with our products, and except for replacement of defective products under our warranty program discussed below, we have no obligation to accept product returns from end customers; however, we have accepted returns on a case-by-case basis as customer accommodations in the past. As a result, we provide for estimated reductions to gross profit for these sales returns in our reserve for sales returns and allowances. At the end of each reporting period, we estimate the reserve based on historical experience and knowledge of any applicable events or transactions. The reserve is included in accrued liabilities in our consolidated balance sheets. A portion of our sales are made to distributors under agreements that grant the distributor limited stock rotation rights and price protection on in-stock inventory. The stock rotation rights allow these distributors to exchange a limited amount of their in-stock inventory for other Pixelworks product. As a result, we provide for estimated reductions to gross profit for these stock rotations in our reserve for sales returns and allowances. At the end of each reporting period, we estimate the reserve based on historical experience and knowledge of any applicable events or transactions. The reserve is included in accrued liabilities in our consolidated balance sheets. On occasion, we derive revenue from the license of our internally developed intellectual property ("IP"). IP licensing agreements that we enter into generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Our license fee arrangements generally include multiple deliverables and we are required to determine whether there is more than one unit of accounting. To the extent that the deliverables are separable into multiple units of accounting, we allocate the total fee on such arrangements to the individual units of accounting using management’s best estimate of selling price ("ESP"), if third party evidence ("TPE") or vendor specific objective evidence ("VSOE") does not exist. We defer revenue recognition for consideration that is contingent upon future performance or other contractual terms. The Company's process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. The key factors considered by the Company in developing the ESPs include the nature and complexity of the licensed technologies, our cost to provide the deliverables, the availability of substitute technologies in the marketplace and the Company's historical pricing practices. We then recognize revenue for each unit of accounting depending on the nature of the deliverable(s) comprising the unit of accounting in accordance with the revenue recognition criteria mentioned above. Fees under these agreements generally include (a) license fees relating to our IP, (b) engineering services, and (c) support services. Historically, each of these elements have standalone value and therefore each are treated as separate units of accounting. Any future licensing arrangements will be analyzed based on the specific facts and circumstances which may be different than our historical licensing arrangements. For deliverables related to licenses of our technology that involve significant engineering services, we recognize revenue in accordance with the provisions of the proportional performance method. We determine costs associated with engineering services using actual labor dollars incurred and estimated other direct or incremental costs allocated based on the percentage of time the engineer(s) spent on the project. These costs are deferred until revenue recognition criteria have been met, at which time they are reclassified as cost of revenue. |
Warranty Program, Policy | We warrant that our products will be free from defects in material and workmanship for a period of twelve months from delivery. Warranty repairs are guaranteed for the remainder of the original warranty period. Our warranty is limited to repairing or replacing products, or refunding the purchase price. At the end of each reporting period, we estimate a reserve for warranty returns based on historical experience and knowledge of any applicable events or transactions. The reserve for warranty returns is included in accrued liabilities in our consolidated balance sheets. |
Share-Based Compensation, Policy | We currently sponsor a stock incentive plan that allows for issuance of employee stock options and restricted stock awards, including restricted stock units. We also have an employee stock purchase plan for all eligible employees. The fair value of share-based payment awards is expensed straight-line over the requisite service period, which is generally the vesting period, for the entire award. Additionally, any modification of an award that increases its fair value will require us to recognize additional expense. The fair value of our stock option grants and purchase rights under our employee stock purchase plan are estimated as of the grant date using the Black-Scholes option pricing model which is affected by our estimates of the risk free interest rate, our expected dividend yield, expected term and the expected share price volatility of our common shares over the expected term. The fair values of our restricted stock awards are based on the market value of our stock on the date of grant, adjusted for the effect of estimated forfeitures. |
Research and Development, Policy | Costs associated with research and development activities are expensed as incurred, except for items with alternate future uses which are capitalized and depreciated over their estimated useful life. On occasion, we enter into co-development arrangements with current or prospective integrated circuit ("IC") customers to defray a portion of the research and development expenses we expect to incur in connection with our development of an IC product. As amounts become due and payable without recourse under co-development agreements, they are offset against research and development expense up to the amount of related costs incurred. |
Income Taxes, Policy | We account for income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial statement carrying amounts and tax bases of assets and liabilities. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish a valuation allowance to reduce deferred tax assets if it is "more likely than not" that a portion or all of the asset will not be realized in future tax returns. An uncertain tax position represents our expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, we do not recognize the tax benefits resulting from such positions and report the tax effects for uncertain tax positions in our consolidated balance sheets. |
Fair Value of Financial Instruments, Policy | 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. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income, net of tax, consists of the following: December 31, 2015 2014 Actuarial income on foreign pension obligation $ 28 $ 38 Accumulated transition foreign pension obligation (22 ) (27 ) Accumulated other comprehensive income $ 6 $ 11 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | Accounts receivable consists of the following: December 31, 2015 2014 Accounts receivable, gross $ 6,048 $ 4,949 Allowance for doubtful accounts (60 ) (301 ) Accounts receivable, net $ 5,988 $ 4,648 |
Allowance for Doubtful Accounts | The following is a summary of the change in our allowance for doubtful accounts: Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 301 $ 315 $ 352 Additions charged 9 2 10 Accounts written-off, net of recoveries (250 ) (16 ) (47 ) Balance at end of year $ 60 $ 301 $ 315 |
Inventories | Inventories consist of the following: December 31, 2015 2014 Finished goods $ 2,174 $ 1,697 Work-in-process 1,092 1,201 Inventories $ 3,266 $ 2,898 |
Property and Equipment, Net | Property and equipment consists of the following: December 31, 2015 2014 Software $ 8,226 $ 11,883 Equipment, furniture and fixtures 9,847 9,171 Tooling 5,810 4,282 Leasehold improvements 2,337 2,237 26,220 27,573 Accumulated depreciation and amortization (19,677 ) (21,171 ) Property and equipment, net $ 6,543 $ 6,402 |
Accrued Liabilities and Current Portion of Long-Term Liabilities | Accrued liabilities and current portion of long-term liabilities consist of the following: December 31, 2015 2014 Accrued payroll and related liabilities $ 2,419 $ 2,385 Accrued commissions and royalties 2,220 2,055 Accrued interest payable 1,754 1,383 Current portion of accrued liabilities for asset financings 1,241 1,744 Reserve for warranty returns 49 105 Other 845 867 Accrued liabilities and current portion of long-term liabilities $ 8,528 $ 8,539 |
Reserve for Warranty Returns | The following is a summary of the change in our reserve for warranty returns: Year Ended December 31, 2015 2014 2013 Reserve for warranty returns: Balance at beginning of year $ 105 $ 329 $ 457 Provision (benefit) (24 ) (195 ) 84 Charge-offs (32 ) (29 ) (212 ) Balance at end of year $ 49 $ 105 $ 329 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 consolidated balance sheets as of December 31, 2015 and 2014: Level 1 Level 2 Level 3 Total As of December 31, 2015: Money market funds $ 25,343 $ — $ — $ 25,343 As of December 31, 2014: Money market funds $ 17,480 $ — $ — $ 17,480 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Domestic and foreign pre-tax income (loss) is as follows: Year Ended December 31, 2015 2014 2013 Domestic $ (11,675 ) $ (10,858 ) $ (9,705 ) Foreign 1,425 1,416 1,163 Domestic and foreign pre-tax loss $ (10,250 ) $ (9,442 ) $ (8,542 ) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense attributable to operations is comprised of the following: Year Ended December 31, 2015 2014 2013 Current: Federal $ 55 $ 55 $ 55 State 2 — (17 ) Foreign 240 374 136 Total current 297 429 174 Deferred: Foreign 23 89 154 Total deferred 23 89 154 Income tax expense $ 320 $ 518 $ 328 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, 2015 2014 2013 Federal statutory rate 34 % 34 % 34 % Expiration of tax attributes (18 ) (4 ) (38 ) Change in valuation allowance (17 ) (39 ) 8 Stock-based compensation (7 ) (2 ) (6 ) State income taxes, net of federal tax benefit 3 3 2 Impact of foreign earnings 1 1 2 Tax contingencies, net of reversals — 1 (5 ) Other 1 1 (1 ) Effective income tax rate (3 )% (5 )% (4 )% |
Schedule of Deferred Tax Assets, Liabilities, and Valuation Allowance | Significant components of our deferred tax assets and liabilities are as follows: December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 73,903 $ 70,237 Research and experimentation credit carryforwards 11,688 11,026 Foreign tax credit carryforwards 3,884 4,049 Deferred stock-based compensation 2,623 2,794 Depreciation and amortization 1,800 2,046 Reserves and accrued expenses 606 740 Capital loss carryforwards 358 2,212 Other 490 529 Total gross deferred tax assets 95,352 93,633 Deferred tax liabilities: Foreign earnings (376 ) (350 ) Other (317 ) (335 ) Total gross deferred tax liabilities (693 ) (685 ) Less valuation allowance (94,524 ) (92,792 ) Net deferred tax assets $ 135 $ 156 |
Summary of Uncertain Tax Positions and Interest and Penalties | The following is a summary of the change in our liability for uncertain tax positions and interest and penalties: 2015 2014 Uncertain tax positions: Balance at beginning of year $ 1,646 $ 1,592 Accrual for positions taken in a prior year 135 (21 ) Accrual for positions taken in current year 299 249 Reversals due to lapse of statute of limitations (217 ) (174 ) Balance at end of year $ 1,863 $ 1,646 Interest and penalties: Balance at beginning of year $ 226 $ 305 Accrual for positions taken in prior year 9 17 Reversals due to lapse of statute of limitations (106 ) (96 ) Balance at end of year $ 129 $ 226 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Disclosure | As of December 31, 2015, future minimum payments under non-cancelable software licenses and operating lease agreements are as follows: Year Ending December 31, Software licenses Operating leases Total 2016 $ 1,348 $ 1,735 $ 3,083 2017 563 1,203 1,766 2018 — 577 577 1,911 $ 3,515 $ 5,426 Less: Interest component (155 ) Present value of minimum software license payments 1,756 Less: Current portion (1,241 ) Long-term portion of obligations $ 515 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following schedule reconciles the computation of basic and diluted net loss per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Net loss $ (10,570 ) $ (9,960 ) $ (8,870 ) Weighted average shares outstanding - basic and diluted 25,088 22,766 19,816 Net loss per share - basic and diluted $ (0.42 ) $ (0.44 ) $ (0.45 ) |
Schedule of 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 (in thousands): Year Ended December 31, 2015 2014 2013 Employee equity incentive plans 4,248 4,346 4,338 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Option Activity | The following is a summary of stock option activity: Number of shares Weighted average exercise price Options outstanding as of December 31, 2014: 3,335,574 $ 3.34 Granted 21,000 5.12 Exercised (220,236 ) 2.91 Canceled and forfeited (4,375 ) 5.81 Expired (74,843 ) 19.82 Options outstanding as of December 31, 2015: 3,057,120 $ 2.98 |
Schedue of Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about options outstanding as of December 31, 2015 : Options Outstanding Options Exercisable Range of exercise prices Number outstanding as of December 31, 2015 Weighted average remaining contractual life Weighted average exercise price Number exercisable as of December 31, 2015 Weighted average exercise price $0.60 - $2.01 684,042 2.71 $ 0.87 684,042 $ 0.87 2.08 - 2.36 717,023 2.09 2.33 709,587 2.33 2.37 - 3.15 718,811 1.48 3.08 668,581 3.07 3.21 - 4.44 620,797 1.14 3.51 610,215 3.50 4.52 - 15.51 316,447 1.58 7.71 271,575 8.07 $0.60 - $15.51 3,057,120 1.84 $ 2.98 2,944,000 $ 2.93 |
Schedule of Stock Options Outstanding, Vested and Expected to Vest | Options outstanding that have vested and are expected to vest as of December 31, 2015 are as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Vested 2,944,000 $ 2.93 1.77 $ 1,067 Expected to vest 105,188 4.03 3.51 1 Total 3,049,188 $ 2.97 1.83 $ 1,068 |
Schedule of Restricted Stock Units Activity | The following is a summary of restricted stock activity: Number of shares Weighted average grant date fair value Unvested at December 31, 2014: 927,496 $ 6.40 Granted 530,735 4.31 Vested (511,977 ) 5.66 Canceled (27,578 ) 5.89 Unvested at December 31, 2015: 918,676 $ 5.62 Expected to vest after December 31, 2015 (1) 679,473 $ 5.65 ________________ (1) As discussed in "Note 11: Subsequent Events", on February 1, 2016, Bruce Walicek resigned from his position as Chief Executive Officer. As a result, we have adjusted the number of shares expected to vest after December 31, 2015 to reflect any restricted stock units that were forfeited by Mr. Walicek in connection with his resignation. |
Stock-Based Compensation, Valuation Assumptions | The fair value of stock-based compensation was determined using the Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2015 2014 2013 Stock Option Plans: Risk free interest rate 1.52 % 1.64 % 1.08 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 5.00 5.00 4.93 Volatility 68 % 73 % 82 % Employee Stock Purchase Plan: Risk free interest rate 0.28 % 0.22 % 0.19 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 1.10 1.02 1.03 Volatility 89 % 82 % 62 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | Revenue by geographic region, was as follows: Year Ended December 31, 2015 2014 2013 Japan $ 50,436 $ 36,062 $ 19,824 Taiwan 5,909 8,266 7,337 Korea 942 3,256 3,241 China 765 5,761 6,329 Europe 611 2,609 1,515 U.S. 167 3,656 8,407 Other 687 1,313 1,465 $ 59,517 $ 60,923 $ 48,118 |
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 more than 10% of revenue in at least one of the periods presented, is as follows: Year Ended December 31, 2015 2014 2013 Distributors: All distributors 48 % 63 % 65 % Distributor A 31 % 29 % 31 % Distributor B 1 % 9 % 10 % End Customers: (1) Top five end customers 83 % 60 % 57 % End customer A 47 % 22 % 3 % End customer B 13 % 13 % 12 % End customer C 8 % 10 % 12 % End customer D — % 4 % 17 % ________________ (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 Percentages from Significant Customers | Each of the following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: December 31, 2015 2014 Account X 49 % 37 % Account Y 34 % 15 % Account Z 1 % 16 % |
Quarterly Financial Data (Una30
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | Quarterly Period Ended March 31 June 30 September 30 December 31 2015 Revenue, net $ 14,392 $ 15,078 $ 16,570 $ 13,477 Gross profit 6,967 7,234 8,278 6,814 Loss from operations (3,238 ) (2,455 ) (1,201 ) (2,910 ) Loss before income taxes (3,345 ) (2,560 ) (1,306 ) (3,039 ) Net loss (3,364 ) (2,796 ) (1,243 ) (3,167 ) Net loss per share - basic and diluted (0.14 ) (0.12 ) (0.05 ) (0.11 ) 2014 Revenue, net $ 13,541 $ 15,166 $ 17,111 $ 15,105 Gross profit 7,995 7,661 8,566 7,559 Loss from operations (2,439 ) (1,935 ) (1,968 ) (2,607 ) Loss before income taxes (2,561 ) (2,065 ) (2,091 ) (2,725 ) Net loss (2,507 ) (2,382 ) (2,300 ) (2,771 ) Net loss per share - basic and diluted (0.11 ) (0.11 ) (0.10 ) (0.12 ) |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)patent | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of patents held | patent | 135 | ||
Foreign currency transaction loss, realized | $ | $ (125) | $ (159) | $ (123) |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Cash and cash equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents, at carrying value | $ 25,343 | $ 17,480 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Property and equipment) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Lesser of 3 years or contractual license term |
Equipment, furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Tooling [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 to 4 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Lesser of lease term or estimated useful life |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Licensed Technology) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Years of amortization period of licensed technology, lower limit | 2 years |
Years of amortization period of licensed technology, upper limit | 5 years |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Actuarial income on foreign pension obligation | $ 28 | $ 38 |
Accumulated transition foreign pension obligation | (22) | (27) |
Accumulated other comprehensive income | $ 6 | $ 11 |
Balance Sheet Components (Accou
Balance Sheet Components (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Receivable, Net [Abstract] | ||||
Accounts receivable, gross | $ 6,048 | $ 4,949 | ||
Allowance for doubtful accounts | (60) | (301) | $ (315) | $ (352) |
Accounts receivable, net | $ 5,988 | $ 4,648 |
Balance Sheet Components (Allow
Balance Sheet Components (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Balance at beginning of year | $ 301 | $ 315 | $ 352 |
Additions charged | 9 | 2 | 10 |
Accounts written-off, net of recoveries | (250) | (16) | (47) |
Balance at end of year | $ 60 | $ 301 | $ 315 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 2,174 | $ 1,697 |
Work-in-process | 1,092 | 1,201 |
Inventories | $ 3,266 | $ 2,898 |
Balance Sheet Components (Inv39
Balance Sheet Components (Inventories) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance Sheet Related Disclosures [Abstract] | |||
Inventory write-downs | $ 199 | $ 267 | $ 24 |
Sale of previously reserved inventory | $ 8 | $ 56 | $ 66 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Software | $ 8,226 | $ 11,883 |
Equipment, furniture and fixtures | 9,847 | 9,171 |
Tooling | 5,810 | 4,282 |
Leasehold improvements | 2,337 | 2,237 |
Gross carrying amount | 26,220 | 27,573 |
Accumulated depreciation and amortization | (19,677) | (21,171) |
Property and equipment, net | $ 6,543 | $ 6,402 |
Balance Sheet Components (Pro41
Balance Sheet Components (Property and Equipment) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance Sheet Related Disclosures [Abstract] | |||
Software amortization | $ 2,127 | $ 2,282 | $ 2,426 |
Depreciation and amortization | $ 1,483 | $ 1,293 | $ 1,590 |
Balance Sheet Components (Other
Balance Sheet Components (Other Assets, Net) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance Sheet Related Disclosures [Abstract] | |||
Amortization of licensed technology | $ 653 | $ 939 | $ 393 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued Liabilities and Current Portion of Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued payroll and related liabilities | $ 2,419 | $ 2,385 | ||
Accrued commissions and royalties | 2,220 | 2,055 | ||
Accrued interest payable | 1,754 | 1,383 | ||
Current portion of accrued liabilities for asset financings | 1,241 | 1,744 | ||
Reserve for warranty returns | 49 | 105 | $ 329 | $ 457 |
Other | 845 | 867 | ||
Accrued liabilities and current portion of long-term liabilities | $ 8,528 | $ 8,539 |
Balance Sheet Components (Reser
Balance Sheet Components (Reserve for Warranty Returns) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reserve for Warranty Returns [Roll Forward] | |||
Balance at beginning of year | $ 105 | $ 329 | $ 457 |
Provision (benefit) | (24) | (195) | 84 |
Charge-offs | (32) | (29) | (212) |
Balance at end of year | $ 49 | $ 105 | $ 329 |
Balance Sheet Components (Short
Balance Sheet Components (Short-Term Line of Credit) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance Sheet Related Disclosures [Abstract] | ||
Line of credit facility, 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 A/R | 80.00% | |
Line of credit facility, maximum borrowing capacity under non-formula advances | $ 10,000 | |
Line of credit facility, borrowing terms for non-formula advances | 5 days | |
Line of credit facility, annual interest rate equal to lender's prime rate plus | 0.25% | |
Short-term line of credit, amount outstanding | $ 3,000 | $ 3,000 |
Short-term line of credit, weighted average interest rate | 3.75% | 3.50% |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets, Recurring [Line Items] | ||
Money market funds | $ 25,343 | $ 17,480 |
Level 1 | ||
Fair Value, Assets, Recurring [Line Items] | ||
Money market funds | 25,343 | 17,480 |
Level 2 | ||
Fair Value, Assets, Recurring [Line Items] | ||
Money market funds | 0 | 0 |
Level 3 | ||
Fair Value, Assets, Recurring [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Income Taxes (Domestic and Fore
Income Taxes (Domestic and Foreign Pre-Tax Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (11,675) | $ (10,858) | $ (9,705) | ||||||||
Foreign | 1,425 | 1,416 | 1,163 | ||||||||
Loss before income taxes | $ (3,039) | $ (1,306) | $ (2,560) | $ (3,345) | $ (2,725) | $ (2,091) | $ (2,065) | $ (2,561) | $ (10,250) | $ (9,442) | $ (8,542) |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 55 | $ 55 | $ 55 |
State | 2 | 0 | (17) |
Foreign | 240 | 374 | 136 |
Total current | 297 | 429 | 174 |
Deferred: | |||
Foreign | 23 | 89 | 154 |
Total deferred | 23 | 89 | 154 |
Income tax expense | $ 320 | $ 518 | $ 328 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S. Federal Statuatory Rate to our Effective Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
Expiration of tax attributes | (18.00%) | (4.00%) | (38.00%) |
Change in valuation allowance | (17.00%) | (39.00%) | 8.00% |
Stock-based compensation | (7.00%) | (2.00%) | (6.00%) |
State income taxes, net of federal tax benefit | 3.00% | 3.00% | 2.00% |
Impact of foreign earnings | 1.00% | 1.00% | 2.00% |
Tax contingencies, net of reversals | 0.00% | 1.00% | (5.00%) |
Other | 1.00% | 1.00% | (1.00%) |
Effective income tax rate | (3.00%) | (5.00%) | (4.00%) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 73,903 | $ 70,237 |
Research and experimentation credit carryforwards | 11,688 | 11,026 |
Foreign tax credit carryforwards | 3,884 | 4,049 |
Deferred stock-based compensation | 2,623 | 2,794 |
Depreciation and amortization | 1,800 | 2,046 |
Reserves and accrued expenses | 606 | 740 |
Capital loss carryforwards | 358 | 2,212 |
Other | 490 | 529 |
Total gross deferred tax assets | 95,352 | 93,633 |
Deferred tax liabilities: | ||
Foreign earnings | (376) | (350) |
Other | (317) | (335) |
Total gross deferred tax liabilities | (693) | (685) |
Less valuation allowance | (94,524) | (92,792) |
Net deferred tax assets | $ 135 | $ 156 |
Income Taxes (Deferred Tax As51
Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets, net of valuation allowance, current | $ 0 | $ 133 | |
Deferred tax assets, net of valuation allowance, noncurrent | 135 | 27 | |
Deferred tax liabilities, net, noncurrent | 0 | 4 | |
Change in net valuation allowance | 1,732 | $ 3,656 | $ (705) |
Undistributed earnings of foreign subsidiaries | $ 2,577 |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards and Tax Credits) (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Federal [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 214,415 |
Tax credit carryforwards, research | $ 8,523 |
Ownership change, percent increase in equity ownership by 5% shareholder | 50.00% |
Minimum percent equity ownership by shareholder for ownership change considerations | 5.00% |
State [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 16,932 |
Tax credit carryforwards, research | 3,639 |
Foreign [Member] | |
Tax Credit Carryforward [Line Items] | |
General foreign tax credit | $ 3,209 |
China, Income tax holiday, reduced statutory rate | 15.00% |
China, Income tax holiday, expiration date | 2,018 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 1,712 | |
Balance at end of year | 1,519 | $ 1,712 |
Uncertain Tax Positions [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | 1,646 | 1,592 |
Accrual for positions taken in a prior year | 135 | (21) |
Accrual for positions taken in current year | 299 | 249 |
Reversals due to lapse of statute of limitations | (217) | (174) |
Balance at end of year | 1,863 | 1,646 |
Interest and Penalties [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | 226 | 305 |
Accrual for positions taken in a prior year | 9 | 17 |
Reversals due to lapse of statute of limitations | (106) | (96) |
Balance at end of year | $ 129 | $ 226 |
Income Taxes (Uncertain Tax P54
Income Taxes (Uncertain Tax Positions) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Liability for uncertain tax positions, noncurrent | $ 1,519 | $ 1,712 | |
Reduction to deferred tax assets | 473 | 160 | |
Unrecognized tax benefits, income tax penalties and interest expense | 9 | $ 17 | $ 27 |
Anticipated decrease of unrecognized tax liability, within twelve months | $ 170 |
Commitments and Contingencies55
Commitments and Contingencies (Royalties) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Royalty Expense | $ 826 | $ 977 | $ 1,094 |
Commitments and Contingencies56
Commitments and Contingencies (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Software licenses, 2016 | $ 1,348 |
Operating leases, 2016 | 1,735 |
Total, 2016 | 3,083 |
Software licenses, 2017 | 563 |
Operating leases, 2017 | 1,203 |
Total, 2017 | 1,766 |
Software licenses, 2018 | 0 |
Operating leases, 2018 | 577 |
Total, 2018 | 577 |
Software licenses, total | 1,911 |
Operating leases, total | 3,515 |
Total | 5,426 |
Software licenses, future minimum payments due, interest component | (155) |
Software licenses, future minimum payments due, present value | 1,756 |
Software licenses, future minimum payments due, current portion of present value | (1,241) |
Software licenses, future minimum payments due, long-term portion of present value | $ 515 |
Commitments and Contingencies57
Commitments and Contingencies (Leases) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense, net | $ 1,735 | $ 1,740 | $ 1,822 |
Earnings Per Share (Earnings Pe
Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (3,167) | $ (1,243) | $ (2,796) | $ (3,364) | $ (2,771) | $ (2,300) | $ (2,382) | $ (2,507) | $ (10,570) | $ (9,960) | $ (8,870) |
Weighted average shares outstanding - basic and diluted | 25,088 | 22,766 | 19,816 | ||||||||
Net loss per share - basic and diluted | $ (0.11) | $ (0.05) | $ (0.12) | $ (0.14) | $ (0.12) | $ (0.10) | $ (0.11) | $ (0.11) | $ (0.42) | $ (0.44) | $ (0.45) |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Effect on Weighted Average Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee equity incentive plans | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 4,248 | 4,346 | 4,338 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 13, 2015 | May. 15, 2014 | May. 09, 2013 | May. 15, 2012 | May. 18, 2010 | May. 19, 2009 | May. 20, 2008 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 |
Stockholders' Equity Note [Abstract] | ||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares authorized | 250,000,000 | 250,000,000 | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||
Equity offering, shares | 3,737,500 | 3,024,500 | ||||||||
Offering price per share | $ 4.75 | $ 3.50 | ||||||||
Equity offering, value | $ 16,356 | $ 9,625 | ||||||||
Employee equity incentive plans, new authorized shares during the period | 2,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,150,000 | 1,000,000 | |||
Common stock, shares reserved for future issuance | 9,483,333 | |||||||||
2006 Plan, number of shares available for grant | 1,556,278 |
Shareholders' Equity (Stock Opt
Shareholders' Equity (Stock Options) (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May. 31, 2009 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, percent vested on one year anniversary of grant | 25.00% | |||
Options, monthly vesting percentage beginning after year one anniversary | 2.083% | |||
Options, number of months vesting after one year anniversary | 36 | |||
Total intrinsic value of options exercised | $ 440 | $ 979 | $ 112 | |
Total intrinsic value of outstanding options | $ 1,068 | |||
Stock Option Plans: | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, merit vesting period | 3 years | |||
Stock Option Plans: | Original | 2006 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan modification, contractual life | 10 years | |||
Stock Option Plans: | Modified | 2006 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan modification, contractual life | 6 years |
Shareholders' Equity (Stock O62
Shareholders' Equity (Stock Options Activity Roll-forward) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Options Outstanding - Number of Shares | |
Options outstanding as of December 31, 2014: | shares | 3,335,574 |
Granted | shares | 21,000 |
Exercised | shares | (220,236) |
Canceled and forfeited | shares | (4,375) |
Expired | shares | (74,843) |
Options outstanding as of December 31, 2015: | shares | 3,057,120 |
Options Outstanding - Weighted Average Exercise Price | |
Options outstanding as of December 31, 2014: | $ / shares | $ 3.34 |
Granted | $ / shares | 5.12 |
Exercised | $ / shares | 2.91 |
Canceled and forfeited | $ / shares | 5.81 |
Expired | $ / shares | 19.82 |
Options outstanding as of December 31, 2015: | $ / shares | $ 2.98 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Shares Authorized Under Equity Compensation Plans, By Exercise Price) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 3,057,120 | 3,335,574 |
$0.60 - $2.01 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 684,042 | |
Options outstanding, weighted average remaining contractual life | 2 years 8 months 15 days | |
Options outstanding, weighted average exercise price | $ 0.87 | |
Number exercisable as of end of year | 684,042 | |
Options exerciseable, weighted average exercise price | $ 0.87 | |
2.08 - 2.36 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 717,023 | |
Options outstanding, weighted average remaining contractual life | 2 years 1 month 1 day | |
Options outstanding, weighted average exercise price | $ 2.33 | |
Number exercisable as of end of year | 709,587 | |
Options exerciseable, weighted average exercise price | $ 2.33 | |
2.37 - 3.15 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 718,811 | |
Options outstanding, weighted average remaining contractual life | 1 year 5 months 23 days | |
Options outstanding, weighted average exercise price | $ 3.08 | |
Number exercisable as of end of year | 668,581 | |
Options exerciseable, weighted average exercise price | $ 3.07 | |
3.21 - 4.44 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 620,797 | |
Options outstanding, weighted average remaining contractual life | 1 year 1 month 20 days | |
Options outstanding, weighted average exercise price | $ 3.51 | |
Number exercisable as of end of year | 610,215 | |
Options exerciseable, weighted average exercise price | $ 3.50 | |
4.52 - 15.51 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 316,447 | |
Options outstanding, weighted average remaining contractual life | 1 year 7 months | |
Options outstanding, weighted average exercise price | $ 7.71 | |
Number exercisable as of end of year | 271,575 | |
Options exerciseable, weighted average exercise price | $ 8.07 | |
$0.60 - $15.51 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 3,057,120 | |
Options outstanding, weighted average remaining contractual life | 1 year 10 months 2 days | |
Options outstanding, weighted average exercise price | $ 2.98 | |
Number exercisable as of end of year | 2,944,000 | |
Options exerciseable, weighted average exercise price | $ 2.93 |
Shareholders' Equity (Options V
Shareholders' Equity (Options Vested and Expected to Vest as of December 31, 2014) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Vested, number of shares | shares | 2,944,000 |
Expected to vest, number of shares | shares | 105,188 |
Total, number of shares | shares | 3,049,188 |
Vested, weighted average exercise price | $ / shares | $ 2.93 |
Expected to vest, weighted average exercise price | $ / shares | 4.03 |
Total, weighted average exercise price | $ / shares | $ 2.97 |
Vested, weighted average remaining contractual term | 1 year 9 months 8 days |
Expected to vest, weighted average remaining contractual term | 3 years 6 months 4 days |
Total, weighted average remaining contractual term | 1 year 9 months 29 days |
Vested, aggregate intrinsic value | $ | $ 1,067 |
Expected to vest, aggregate intrinsic value | $ | 1 |
Total, aggregate intrinsic value | $ | $ 1,068 |
Shareholders' Equity (Restricte
Shareholders' Equity (Restricted Stock) (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||
Restricted stock grants, number of shares | 530,735 | 737,797 | 1,030,673 |
Restricted stock grants, weighted average grant date fair value | $ 4.31 | $ 6.94 | $ 3.95 |
Shareholders' Equity (Unvested
Shareholders' Equity (Unvested Restricted Stock Units Activity Roll-Forward) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Unvested Restricted Stock Units - Number of Shares | ||||
Unvested at December 31, 2014: | 927,496 | |||
Granted | 530,735 | |||
Vested | (511,977) | |||
Canceled | (27,578) | |||
Unvested at December 31, 2015: | 918,676 | 927,496 | ||
Expected to vest after December 31, 2015 (1) | [1] | 679,473 | ||
Unvested Restricted Stock Units - Weighted Average Grant Date Fair Value | ||||
Unvested at December 31, 2014: | $ 6.40 | |||
Granted | 4.31 | $ 6.94 | $ 3.95 | |
Vested | 5.66 | |||
Canceled | 5.89 | |||
Unvested at December 31, 2015: | 5.62 | $ 6.40 | ||
Expected to vest after December 31, 2015 (1) | [1] | $ 5.65 | ||
[1] | As discussed in "Note 11: Subsequent Events", on February 1, 2016, Bruce Walicek resigned from his position as Chief Executive Officer. As a result, we have adjusted the number of shares expected to vest after December 31, 2015 to reflect any restricted stock units that were forfeited by Mr. Walicek in connection with his resignation. |
Shareholders' Equity (Employee
Shareholders' Equity (Employee Stock Purchase Plans) (Narrative) (Details) - 2010 Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands | May. 18, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Stock Purchase Plan, Activity in Period [Line Items] | ||||
Employee Stock Purchase Plan, offering period | 18 months | |||
Employee Stock Purchase Plan, purchase period | 6 months | |||
Employee Stock Purchase Plan, maximum number of shares per employee | 3,000 | |||
Employee Stock Purchase Plan, maximum annual purchase amount per employee | $ 25 | |||
Employee Stock Purchase Plan, purchase price of common stock, percent | 85.00% | |||
Employee Stock Purchase Plan, number of shares authorized | 1,300,000 | |||
Employee Stock Purchase Plans, shares issued | 92,899 | 101,201 | 101,068 | |
Employee Stock Purchase Plans, proceeds from shares issued | $ 352 | $ 274 | $ 198 |
Shareholders' Equity (Schedul68
Shareholders' Equity (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option Plans: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk free interest rate | 1.52% | 1.64% | 1.08% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 5 years | 5 years | 4 years 11 months 5 days |
Volatility | 68.00% | 73.00% | 82.00% |
Employee Stock Purchase Plan: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk free interest rate | 0.28% | 0.22% | 0.19% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 1 year 1 month 5 days | 1 year 8 days | 1 year 10 days |
Volatility | 89.00% | 82.00% | 62.00% |
Shareholders' Equity (Stock-bas
Shareholders' Equity (Stock-based Compensation Expense) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||
Options, grants in period, weighted average grant date fair value | $ 2.93 | $ 3.50 | $ 1.96 |
Nonvested awards, total compensation cost not yet recognized | $ 2,418 | ||
Nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 6 months 13 days |
Segment Information (Geographic
Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, net | $ 13,477 | $ 16,570 | $ 15,078 | $ 14,392 | $ 15,105 | $ 17,111 | $ 15,166 | $ 13,541 | $ 59,517 | $ 60,923 | $ 48,118 |
Japan | |||||||||||
Revenue, net | 50,436 | 36,062 | 19,824 | ||||||||
Taiwan | |||||||||||
Revenue, net | 5,909 | 8,266 | 7,337 | ||||||||
Korea | |||||||||||
Revenue, net | 942 | 3,256 | 3,241 | ||||||||
China | |||||||||||
Revenue, net | 765 | 5,761 | 6,329 | ||||||||
Europe | |||||||||||
Revenue, net | 611 | 2,609 | 1,515 | ||||||||
U.S. | |||||||||||
Revenue, net | 167 | 3,656 | 8,407 | ||||||||
Other | |||||||||||
Revenue, net | $ 687 | $ 1,313 | $ 1,465 |
Segment Information (Schedule o
Segment Information (Schedule of Revenue by Major Customer) (Details) - Sales [Member] | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
All distributors | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | 48.00% | 63.00% | 65.00% | |
Distributor A | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | 31.00% | 29.00% | 31.00% | |
Distributor B | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | 1.00% | 9.00% | 10.00% | |
Top five end customers | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 83.00% | 60.00% | 57.00% |
End customer A | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 47.00% | 22.00% | 3.00% |
End customer B | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 13.00% | 13.00% | 12.00% |
End customer C | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 8.00% | 10.00% | 12.00% |
End customer D | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 0.00% | 4.00% | 17.00% |
[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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Account X | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 49.00% | 37.00% |
Account Y | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 34.00% | 15.00% |
Account Z | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 1.00% | 16.00% |
Quarterly Financial Data (Una73
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue, net | $ 13,477 | $ 16,570 | $ 15,078 | $ 14,392 | $ 15,105 | $ 17,111 | $ 15,166 | $ 13,541 | $ 59,517 | $ 60,923 | $ 48,118 |
Gross profit | 6,814 | 8,278 | 7,234 | 6,967 | 7,559 | 8,566 | 7,661 | 7,995 | 29,293 | 31,781 | 26,410 |
Loss from operations | (2,910) | (1,201) | (2,455) | (3,238) | (2,607) | (1,968) | (1,935) | (2,439) | (9,804) | (8,949) | (8,137) |
Loss before income taxes | (3,039) | (1,306) | (2,560) | (3,345) | (2,725) | (2,091) | (2,065) | (2,561) | (10,250) | (9,442) | (8,542) |
Net loss | $ (3,167) | $ (1,243) | $ (2,796) | $ (3,364) | $ (2,771) | $ (2,300) | $ (2,382) | $ (2,507) | $ (10,570) | $ (9,960) | $ (8,870) |
Net loss per share - basic and diluted | $ (0.11) | $ (0.05) | $ (0.12) | $ (0.14) | $ (0.12) | $ (0.10) | $ (0.11) | $ (0.11) | $ (0.42) | $ (0.44) | $ (0.45) |