Pixelworks (PXLW) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 10, 2017
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	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		33,803,671

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 32,246	$ 19,622
Accounts receivable, net	5,676	3,118
Inventories	1,954	2,803
Prepaid expenses and other current assets	1,341	736
Total current assets	41,217	26,279
Property and equipment, net	4,636	3,793
Other assets, net	781	785
Total assets	46,634	30,857
Current liabilities:
Accounts payable	2,516	1,734
Accrued liabilities and current portion of long-term liabilities	13,241	7,860
Current portion of income taxes payable	989	140
Total current liabilities	16,746	9,734
Long-term liabilities, net of current portion	1,029	194
Income taxes payable, net of current portion	2,046	1,880
Total liabilities	19,821	11,808
Commitments and contingencies (Note 10)
Shareholders’ equity:
Preferred stock	0	0
Common stock	398,019	394,296
Accumulated other comprehensive income	10	10
Accumulated deficit	(371,216)	(375,257)
Total shareholders’ equity	26,813	19,049
Total liabilities and shareholders’ equity	$ 46,634	$ 30,857

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue, net		$ 20,721	$ 12,580	$ 43,431	$ 23,747
Cost of revenue (1)	[1]	9,520	6,165	19,838	13,740
Gross profit		11,201	6,415	23,593	10,007
Operating expenses:
Research and development (2)	[2]	4,501	4,504	9,407	10,179
Selling, general and administrative (3)	[3]	4,660	3,180	8,799	7,045
Restructuring		0	67	0	2,605
Total operating expenses		9,161	7,751	18,206	19,829
Income (loss) from operations		2,040	(1,336)	5,387	(9,822)
Interest expense and other, net		(107)	(107)	(200)	(206)
Income (loss) before income taxes		1,933	(1,443)	5,187	(10,028)
Provision for income taxes		669	117	1,102	174
Net income (loss)		$ 1,264	$ (1,560)	$ 4,085	$ (10,202)
Net income (loss) per share, basic		$ 0.04	$ (0.06)	$ 0.14	$ (0.36)
Net income (loss) per share, diluted		$ 0.04	$ (0.06)	$ 0.13	$ (0.36)
Weighted average shares outstanding, basic		29,766	28,167	29,526	28,051
Weighted average shares outstanding, diluted		31,974	28,167	31,601	28,051
[1]	Includes: Stock-based compensation 69 46 122 90Restructuring — 27 — 1,750
[2]	Includes: Stock-based compensation 362 392 676 821
[3]	Includes: Acquisition-related costs 730 — 894 —Stock-based compensation 519 268 941 161

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Cost of revenue
Stock-based compensation	$ 69	$ 46	$ 122	$ 90
Restructuring	0	27	0	1,750
Research and development
Stock-based compensation	362	392	676	821
Selling, general and administrative
Stock-based compensation	519	268	941	161
Acquisition-related costs	$ 730	$ 0	$ 894	$ 0

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 4,085	$ (10,202)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,814	1,822
Stock-based compensation	1,739	1,072
Reversal of uncertain tax positions	(191)	(170)
Write off of certain assets to restructuring	0	1,744
Other	58	37
Changes in operating assets and liabilities:
Accounts receivable, net	(2,558)	2,142
Inventories	849	(362)
Prepaid expenses and other current and long-term assets, net	(328)	(104)
Accounts payable	728	(1,412)
Accrued current and long-term liabilities	4,714	355
Income taxes payable	1,206	66
Net cash provided by (used in) operating activities	12,116	(5,012)
Cash flows from investing activities:
Purchases of property and equipment	(829)	(256)
Net cash used in investing activities	(829)	(256)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee equity incentive plans	1,940	143
Payments on asset financings	(603)	(716)
Repayments of Lines of Credit	0	(3,000)
Net cash provided by (used in) financing activities	1,337	(3,573)
Net increase (decrease) in cash and cash equivalents	12,624	(8,841)
Cash and cash equivalents, beginning of period	19,622	26,591
Cash and cash equivalents, end of period	32,246	17,750
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds received	153	238
Cash paid during the period for interest	10	81
Non-cash investing and financing activities:
Acquisitions of property and equipment and other assets under extended payment terms	$ 1,955	$ 0

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION Nature of Business Pixelworks designs, develops and markets video processing semiconductors, intellectual property cores, software and custom ASIC solutions for high-quality energy efficient digital video applications. Our products enable our customers to deliver the highest energy efficient video quality on their devices. Our core video display processing technology intelligently processes video signals from a variety of sources and optimizes the image for the viewer. The rapid growth in video-capable consumption devices, especially mobile, has increased the demand for video display processing technology in recent years. Our technologies can be applied to a wide range of devices from large-screen projectors to low power mobile tablets and smartphones. Our products are architected and optimized for power, cost, bandwidth, and overall system performance, according to the application requirements. Our primary target markets include digital projection systems, tablets and smartphones. As of June 30, 2017, we had an intellectual property portfolio of 155 patents related to the visual display of digital image data. Pixelworks was founded in 1997 and is incorporated under the laws of the state of Oregon. On August 2, 2017, we acquired ViXS Systems, Inc., a corporation organized in Canada (“ViXS”). Condensed Consolidated Financial Statements The financial information included herein for the three and six month periods ended June 30, 2017 and 2016 is prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and is unaudited. Such information reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the Company's condensed consolidated financial statements for these interim periods. The financial information as of December 31, 2016 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2016, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 8, 2017, and should be read in conjunction with such consolidated financial statements. The results of operations for the three and six month periods ended June 30, 2017 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2017. Comprehensive Income (Loss) The Company reports comprehensive income (loss) and its components following guidance set forth by the Financial Accounting Standards Board (the “FASB”), Accounting Standards Codification section 220-10, Comprehensive Income, which establishes standards for the reporting and display of comprehensive income or loss and its components in the financial statements. During the three and six month periods ended June 30, 2017 and 2016, aside from our net income (loss), there were no other items of comprehensive income or loss and therefore the Company has not included a statement of comprehensive income (loss) in our interim condensed consolidated financial statements. Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017-01 clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. ASU 2017-01 will become effective for the Company on January 1, 2018, with early adoption permitted. We do not expect the adoption of this update to have a material impact on our financial position, results of operations, or cash flows. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. We will continue to have the option to perform a qualitative assessment to determine if a quantitative goodwill impairment test is necessary. ASU 2017-04 will become effective for the Company on January 1, 2020, with early adoption permitted. We do not expect the adoption of this update to have a material impact on our financial position, results of operations, or cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies how several aspects of share-based payments are accounted for and presented in the financial statements, for example, an accounting policy election may be made to account for forfeitures as they occur, rather than based on an estimate of future forfeitures. In addition, under previous guidance, excess tax benefits and deficiencies from stock-based compensation arrangements were recorded in equity when the awards vested or were settled. ASU 2016-09 requires prospective recognition of excess tax benefits and deficiencies in the income statement. We adopted ASU 2016-09 on January 1, 2017, which included a policy election to account for forfeitures as they occur, and resulted in a cumulative-effect adjustment to retained earnings of $44 as of January 1, 2017. In addition, upon adoption the balance of the unrecognized excess tax benefits were recognized and the impact was recorded to retained earnings, including any change to the valuation allowance as a result of the adoption. Due to the full valuation allowance on the U.S. net deferred tax assets, this change did not impact our financial position, results of operations or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). 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. ASU 2016-02 will become effective for the Company on January 1, 2019. While we are currently assessing the impact ASU 2016-02 will have on our financial statements, we expect the primary impact to our financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our consolidated balance sheets resulting in the recording of ROU and lease obligations. 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. We adopted ASU 2015-11 on January 1, 2017 and it did not have a material 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. We have developed an implementation plan to adopt this new guidance. As part of this plan, we are currently assessing the impact of the new guidance on our results of operations. Based on our procedures performed to date, nothing has come to our attention that would indicate that the adoption of ASU 2014-09 will have a material impact on our financial statements, however, we will continue to evaluate this assessment in 2017. We intend to adopt ASU 2014-09 on January 1, 2018 and we have tentatively selected the modified retrospective transition method. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, product returns, warranty obligations, bad debts, inventories, property and equipment, impairment of long-lived assets, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates.

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	BALANCE SHEET COMPONENTS Accounts Receivable, Net Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments. Accounts receivable consists of the following: June 30, December 31, Accounts receivable, gross $ 5,733 $ 3,150 Less: allowance for doubtful accounts (57 ) (32 ) Accounts receivable, net $ 5,676 $ 3,118 The following is the change in our allowance for doubtful accounts: Six Months Ended June 30, 2017 2016 Balance at beginning of period $ 32 $ 60 Additions charged (reductions credited) 25 (21 ) Balance at end of period $ 57 $ 39 Inventories Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value). Inventories consist of the following: June 30, December 31, Work-in-process $ 1,099 $ 1,096 Finished goods 855 1,707 Inventories $ 1,954 $ 2,803 Property and Equipment, Net Property and equipment consists of the following: June 30, December 31, Gross carrying amount $ 25,363 $ 24,416 Less: accumulated depreciation and amortization (20,727 ) (20,623 ) Property and equipment, net $ 4,636 $ 3,793 Accrued Liabilities and Current Portion of Long-Term Liabilities Accrued liabilities and current portion of long-term liabilities consist of the following: June 30, December 31, Accrued payroll and related liabilities $ 3,468 $ 2,169 Accrued commissions and royalties 2,751 2,427 Accrued interest payable 2,303 2,078 Deferred research and development reimbursement 1,311 — Current portion of accrued liabilities for asset financings 1,013 389 Liability for warranty returns 33 28 Accrued costs related to restructuring — 60 Other 2,362 709 Accrued liabilities and current portion of long-term liabilities $ 13,241 $ 7,860 The following is the change in our liability for warranty returns: Six Months Ended June 30, 2017 2016 Liability for warranty returns: Balance at beginning of period $ 28 $ 49 Provision (benefit) 10 (4 ) Charge-offs (5 ) (18 ) Balance at end of period $ 33 $ 27 Short-Term Line of Credit On December 21, 2010, we entered into a Loan and Security Agreement with Silicon Valley Bank (the "Bank"), which was amended on December 14, 2012, December 4, 2013, December 18, 2015 and December 15, 2016 (as amended, the "Revolving Loan Agreement"). The Revolving Loan Agreement 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. The Revolving Line has a maturity date of December 29, 2017. In addition, the Revolving Loan Agreement provides for non-formula advances of up to $10,000 which may be made solely during the last five business days of any fiscal month or quarter and which must be repaid by the Company on or before the fifth business day after the applicable fiscal month or quarter end. Due to their repayment terms, non-formula advances do not provide the Company with usable liquidity. The Revolving Loan Agreement, as amended, contains customary affirmative and negative covenants as well as customary events of default. The occurrence of an event of default could result in the acceleration of the Company's obligations under the Revolving Loan Agreement, as amended, and an increase to the applicable interest rate, and would permit the Bank to exercise remedies with respect to its security interest. As of June 30, 2017, we were in compliance with all of the terms of the Revolving Loan Agreement, as amended. As of June 30, 2017 and December 31, 2016, we had no outstanding borrowings under the Revolving Line. On July 21, 2017 and in connection with our acquisition of ViXS (see Note 11: “Subsequent Events”), we entered into Amendment No. 5 to the Revolving Loan Agreement with the Bank which provides the Bank’s consent to the acquisition under the Revolving Loan Agreement and stipulates that any credit extensions are at the Bank’s sole discretion and provides the Company with relief from our compliance with certain affirmative and negative covenants while no credit extensions are outstanding.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2: Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016: Level 1 Level 2 Level 3 Total As of June 30, 2017: Money market funds $ 29,701 $ — $ — $ 29,701 As of December 31, 2016: Money market funds $ 17,960 $ — $ — $ 17,960 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.

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring	RESTRUCTURING In April 2016, we executed a restructuring plan to streamline the Company’s operations and product offerings and to align the Company’s expenses with current revenue levels. The plan included an approximately 24% reduction in workforce, primarily in the area of development, however, it also impacted operations, sales and marketing. The plan also included abandonment of certain assets resulting in impairment charges to write off the assets associated with markets we are no longer pursuing. Total restructuring expense included in our statement of operations for the six month periods ended June 30, 2017 and 2016 is comprised of the following: Six Months Ended June 30, 2017 2016 Cost of revenue — restructuring: Tooling and inventory write offs — 1,679 Employee severance and benefits — 71 — 1,750 Operating expenses — restructuring: Employee severance and benefits $ — $ 2,510 Licensed technology and other assets write offs — 65 Other — 30 — 2,605 Total restructuring expense $ — $ 4,355 The following is a rollforward of the accrued liabilities related to restructuring for the six month period ended June 30, 2017: Balance as of December 31, 2016 Expensed Payments Balance as of June 30, 2017 Employee severance and benefits $ 60 $ — $ (60 ) $ — Accrued costs related to restructuring $ 60 $ — $ (60 ) $ —

Research and Development

Research and Development	6 Months Ended
	Jun. 30, 2017
Research and Development [Abstract]
Research and Development	RESEARCH AND DEVELOPMEN T During the first quarter of 2017, we entered into a best efforts co-development agreement with a customer to defray a portion of the research and development expenses we expect to incur in connection with our development of an integrated circuit product to be sold exclusively to the customer. We expect our development costs to exceed the amounts received from the customer, and although we expect to sell units of the product to the customer, there is no commitment or agreement from the customer for such sales at this time. Additionally, we retain ownership of any modifications or improvements to our pre-existing intellectual property and may use such improvements in products sold to other customers. Under the co-development agreement, $4,000 was payable by the customer within 60 days of the date of the agreement and two additional payments of $2,000 are each payable upon completion of certain development milestones. As amounts become due and payable, they are offset against research and development expense on a pro rata basis. We recognized an offset to research and development expense of $2,275 and $2,689 during the three and six months ended June 30, 2017, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Incomes Taxes	INCOME TAXES The provision for income taxes during the 2017 and 2016 periods is primarily comprised of current and deferred tax expense in profitable cost-plus foreign jurisdictions, accruals for tax contingencies in foreign jurisdictions and benefits for the reversal of previously recorded foreign tax contingencies due to the expiration of the applicable statutes of limitation. We recorded a benefit for the reversal of previously recorded foreign tax contingencies of $191 and $170 during the first six months of 2017 and 2016, respectively. As we do not believe that it is more likely than not that we will realize a benefit from our U.S. net deferred tax assets, including our U.S. net operating losses, we continue to provide a full valuation allowance against essentially all of those assets, therefore, we do not incur significant U.S. income tax expense or benefit. We have not recorded a valuation allowance against our other foreign net deferred tax assets as we believe that it is more likely than not that we will realize a benefit from those assets. As of June 30, 2017 and December 31, 2016, the amount of our uncertain tax positions was a liability of $1,435 and $1,419 , respectively, and a reduction to deferred tax assets of $636 and $560 , respectively. A number of years may elapse before an uncertain tax position is resolved by settlement or statute of limitation. Settlement of any particular position could require the use of cash. If the uncertain tax positions we have accrued for are sustained by the taxing authorities in our favor, the reduction of the liability will reduce our effective tax rate. We reasonably expect reductions in the liability for unrecognized tax benefits and interest and penalties of approximately $18 within the next twelve months due to the expiration of statutes of limitation in foreign jurisdictions. We recognize interest and penalties related to uncertain tax positions in income tax expense in our consolidated statements of operations. We adopted ASU 2016-09 on January 1, 2017. We have excess tax benefits for which a benefit could not be previously recognized of $485 . Upon adoption, this balance was recognized and the impact was recorded to retained earnings, including any change to the valuation allowance as a result of the adoption. Due to the full valuation allowance on the U.S. net deferred tax assets, this change did not impact our financial position, results of operations or cash flows.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net income (loss) $ 1,264 $ (1,560 ) $ 4,085 $ (10,202 ) Weighted average shares outstanding - basic 29,766 28,167 29,526 28,051 Dilutive effect of employee equity incentive plans 2,208 — 2,075 — Diluted weighted average shares outstanding 31,974 28,167 31,601 28,051 Net income (loss) per share: Basic $ 0.04 $ (0.06 ) $ 0.14 $ (0.36 ) Diluted $ 0.04 $ (0.06 ) $ 0.13 $ (0.36 ) The following weighted average shares were excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Employee equity incentive plans 271 4,587 7 4,486 Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION We have identified a single operating segment: the design and development of integrated circuits for use in electronic display devices. The majority of our assets are located in the United States. Geographic Information Revenue by geographic region, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Japan $ 18,167 $ 10,506 $ 33,361 $ 19,952 Taiwan 2,229 1,235 6,097 2,269 China 320 316 596 497 Europe 5 141 1,941 300 Korea — 241 787 415 United States — 9 121 54 Other — 132 528 260 $ 20,721 $ 12,580 $ 43,431 $ 23,747 Significant Customers The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Distributors: All distributors 41 % 55 % 49 % 47 % Distributor A 30 % 35 % 29 % 28 % End customers: 1 Top five end customers 87 % 82 % 75 % 83 % End customer A 51 % 42 % 43 % 50 % End customer B 15 % 11 % 10 % 10 % End customer C 9 % 11 % 8 % 7 % End customer D 5 % 13 % 9 % 10 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: June 30, December 31, Account X 80 % 54 % Account Y 11 % 5 %

Risks and Uncertainties

Risks and Uncertainties	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Risks and Uncertainties	RISKS AND UNCERTAINTIES Concentration of Suppliers We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We rely on a limited number of foundries and assembly and test vendors to produce all of our wafers and for completion of finished products. We do not have any long-term agreements with any of these suppliers. In light of these dependencies, it is reasonably possible that failure to perform by one of these suppliers could have a severe impact on our results of operations. Additionally, the concentration of these vendors within Taiwan and the People’s Republic of China increases our risk of supply disruption due to natural disasters, economic instability, political unrest or other regional disturbances. Risk of Technological Change The markets in which we compete, or seek to compete, are subject to rapid technological change, frequent new product introductions, changing customer requirements for new products and features, and evolving industry standards. The introduction of new technologies and the emergence of new industry standards could render our products less desirable or obsolete, which could harm our business. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and accounts receivable. We limit our exposure to credit risk associated with cash equivalent balances by holding our funds in high quality, highly liquid money market accounts. We limit our exposure to credit risk associated with accounts receivable by carefully evaluating creditworthiness before offering terms to customers.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Indemnifications Certain of our agreements include indemnification provisions for claims from third-parties relating to our intellectual property. It is not possible for us to predict the maximum potential amount of future payments or indemnification costs under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. We have not made any payments under these agreements in the past, and as of June 30, 2017, we have not incurred any material liabilities arising from these indemnification obligations. In the future, however, such obligations could materially impact our results of operations. Legal Proceedings We are subject to legal matters that arise from time to time in the ordinary course of our business. Although we currently believe that resolving such matters, individually or in the aggregate, will not have a material adverse effect on our financial position, our results of operations, or our cash flows, these matters are subject to inherent uncertainties and our view of these matters may change in the future.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On August 2, 2017, we completed the acquisition of ViXS Systems, Inc. (“ViXS”), pursuant to an Arrangement Agreement (the “Agreement”) dated as of May 18, 2017 between Pixelworks and ViXS (the "Acquisition"). Pursuant to the Agreement, at the closing of the Acquisition, we issued approximately 3,700,000 shares of our common stock to the former holders of the capital stock of ViXS, and ViXS became a wholly owned subsidiary of Pixelworks. We also issued approximately 200,000 restricted stock units to the former holders of ViXS’ unvested restricted stock units. Based on an evaluation of the provisions of FASB Accounting Standards Codification Topic 805, “Business Combinations,” Pixelworks was determined to be the acquirer for accounting purposes. The estimated purchase price is $17,531 , calculated based on the common shares Pixelworks issued, plus the fair value of replacement equity awards attributable to service prior to the closing of the Acquisition. The calculation of the estimated purchase price is subject to change as the Company is in process of completing the final analysis of certain components of the purchase price. The total estimated purchase price will be allocated to ViXS’ net assets and liabilities, including identifiable intangible assets consisting primarily of developed technology, customer relationships and trade name. The excess of the purchase price over the assets acquired and liabilities assumed will be allocated to goodwill. Because the Acquisition closed on August 2, 2017, the Company has not completed the detailed valuation studies necessary to arrive at the estimates of the fair value of ViXS’ assets acquired and liabilities assumed, and the related allocation of purchase price. Pro forma revenue, net income (loss) and net income (loss) per share have not been presented as we are still completing the valuation studies necessary to arrive at these financial measures. We expect the valuation may impact cost of sales, intangible amortization expense, depreciation expense and stock-based compensation expense. During the three and six months ended June 30, 2017, the Company incurred acquisition costs of $730 and $894 , respectively, associated with the Acquisition. The Acquisition costs are being expensed as incurred and are presented in the condensed consolidated statements of operations in selling, general and administrative expense.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017-01 clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. ASU 2017-01 will become effective for the Company on January 1, 2018, with early adoption permitted. We do not expect the adoption of this update to have a material impact on our financial position, results of operations, or cash flows. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. We will continue to have the option to perform a qualitative assessment to determine if a quantitative goodwill impairment test is necessary. ASU 2017-04 will become effective for the Company on January 1, 2020, with early adoption permitted. We do not expect the adoption of this update to have a material impact on our financial position, results of operations, or cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies how several aspects of share-based payments are accounted for and presented in the financial statements, for example, an accounting policy election may be made to account for forfeitures as they occur, rather than based on an estimate of future forfeitures. In addition, under previous guidance, excess tax benefits and deficiencies from stock-based compensation arrangements were recorded in equity when the awards vested or were settled. ASU 2016-09 requires prospective recognition of excess tax benefits and deficiencies in the income statement. We adopted ASU 2016-09 on January 1, 2017, which included a policy election to account for forfeitures as they occur, and resulted in a cumulative-effect adjustment to retained earnings of $44 as of January 1, 2017. In addition, upon adoption the balance of the unrecognized excess tax benefits were recognized and the impact was recorded to retained earnings, including any change to the valuation allowance as a result of the adoption. Due to the full valuation allowance on the U.S. net deferred tax assets, this change did not impact our financial position, results of operations or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). 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. ASU 2016-02 will become effective for the Company on January 1, 2019. While we are currently assessing the impact ASU 2016-02 will have on our financial statements, we expect the primary impact to our financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our consolidated balance sheets resulting in the recording of ROU and lease obligations. 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. We adopted ASU 2015-11 on January 1, 2017 and it did not have a material 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. We have developed an implementation plan to adopt this new guidance. As part of this plan, we are currently assessing the impact of the new guidance on our results of operations. Based on our procedures performed to date, nothing has come to our attention that would indicate that the adoption of ASU 2014-09 will have a material impact on our financial statements, however, we will continue to evaluate this assessment in 2017. We intend to adopt ASU 2014-09 on January 1, 2018 and we have tentatively selected the modified retrospective transition method.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, product returns, warranty obligations, bad debts, inventories, property and equipment, impairment of long-lived assets, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates.
Receivables, Policy	Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments.
Inventory, Policy	Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).
Co-Development Arrangements, Policy	As amounts become due and payable, they are offset against research and development expense on a pro rata basis.

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Accounts Receivable, Net	Accounts receivable consists of the following: June 30, December 31, Accounts receivable, gross $ 5,733 $ 3,150 Less: allowance for doubtful accounts (57 ) (32 ) Accounts receivable, net $ 5,676 $ 3,118
Allowance for Doubtful Accounts	The following is the change in our allowance for doubtful accounts: Six Months Ended June 30, 2017 2016 Balance at beginning of period $ 32 $ 60 Additions charged (reductions credited) 25 (21 ) Balance at end of period $ 57 $ 39
Inventories	Inventories consist of the following: June 30, December 31, Work-in-process $ 1,099 $ 1,096 Finished goods 855 1,707 Inventories $ 1,954 $ 2,803
Property and Equipment, Net	Property and equipment consists of the following: June 30, December 31, Gross carrying amount $ 25,363 $ 24,416 Less: accumulated depreciation and amortization (20,727 ) (20,623 ) Property and equipment, net $ 4,636 $ 3,793
Accrued Liabilities and Current Portion of Long-Term Liabilities	Accrued liabilities and current portion of long-term liabilities consist of the following: June 30, December 31, Accrued payroll and related liabilities $ 3,468 $ 2,169 Accrued commissions and royalties 2,751 2,427 Accrued interest payable 2,303 2,078 Deferred research and development reimbursement 1,311 — Current portion of accrued liabilities for asset financings 1,013 389 Liability for warranty returns 33 28 Accrued costs related to restructuring — 60 Other 2,362 709 Accrued liabilities and current portion of long-term liabilities $ 13,241 $ 7,860
Liability for Warranty Returns	The following is the change in our liability for warranty returns: Six Months Ended June 30, 2017 2016 Liability for warranty returns: Balance at beginning of period $ 28 $ 49 Provision (benefit) 10 (4 ) Charge-offs (5 ) (18 ) Balance at end of period $ 33 $ 27

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016: Level 1 Level 2 Level 3 Total As of June 30, 2017: Money market funds $ 29,701 $ — $ — $ 29,701 As of December 31, 2016: Money market funds $ 17,960 $ — $ — $ 17,960

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring Expense by Components	Total restructuring expense included in our statement of operations for the six month periods ended June 30, 2017 and 2016 is comprised of the following: Six Months Ended June 30, 2017 2016 Cost of revenue — restructuring: Tooling and inventory write offs — 1,679 Employee severance and benefits — 71 — 1,750 Operating expenses — restructuring: Employee severance and benefits $ — $ 2,510 Licensed technology and other assets write offs — 65 Other — 30 — 2,605 Total restructuring expense $ — $ 4,355
Schedule of Accrued Restructuring Liabilities	The following is a rollforward of the accrued liabilities related to restructuring for the six month period ended June 30, 2017: Balance as of December 31, 2016 Expensed Payments Balance as of June 30, 2017 Employee severance and benefits $ 60 $ — $ (60 ) $ — Accrued costs related to restructuring $ 60 $ — $ (60 ) $ —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net income (loss) $ 1,264 $ (1,560 ) $ 4,085 $ (10,202 ) Weighted average shares outstanding - basic 29,766 28,167 29,526 28,051 Dilutive effect of employee equity incentive plans 2,208 — 2,075 — Diluted weighted average shares outstanding 31,974 28,167 31,601 28,051 Net income (loss) per share: Basic $ 0.04 $ (0.06 ) $ 0.14 $ (0.36 ) Diluted $ 0.04 $ (0.06 ) $ 0.13 $ (0.36 )
Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted average shares were excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Employee equity incentive plans 271 4,587 7 4,486

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Region	Revenue by geographic region, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Japan $ 18,167 $ 10,506 $ 33,361 $ 19,952 Taiwan 2,229 1,235 6,097 2,269 China 320 316 596 497 Europe 5 141 1,941 300 Korea — 241 787 415 United States — 9 121 54 Other — 132 528 260 $ 20,721 $ 12,580 $ 43,431 $ 23,747
Schedule of Revenue from Significant Customers	The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Distributors: All distributors 41 % 55 % 49 % 47 % Distributor A 30 % 35 % 29 % 28 % End customers: 1 Top five end customers 87 % 82 % 75 % 83 % End customer A 51 % 42 % 43 % 50 % End customer B 15 % 11 % 10 % 10 % End customer C 9 % 11 % 8 % 7 % End customer D 5 % 13 % 9 % 10 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.
Schedule of Accounts Receivable Percentage from Significant Customers	The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: June 30, December 31, Account X 80 % 54 % Account Y 11 % 5 %

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)patent
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of patents held | patent	155
Adjustment to retained earnings | $	$ 44

Balance Sheet Components (Accou

Balance Sheet Components (Accounts Receivable) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Accounts Receivable, Net [Abstract]
Accounts receivable, gross	$ 5,733	$ 3,150
Less: allowance for doubtful accounts	(57)	(32)	$ (39)	$ (60)
Accounts receivable, net	$ 5,676	$ 3,118

Balance Sheet Components (Allow

Balance Sheet Components (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 32	$ 60
Additions charged (reductions credited)	25	(21)
Balance at end of period	$ 57	$ 39

Balance Sheet Components (Inven

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Work-in-process	$ 1,099	$ 1,096
Finished goods	855	1,707
Inventories	$ 1,954	$ 2,803

Balance Sheet Components (Prope

Balance Sheet Components (Property Plant and Equipment) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Gross carrying amount	$ 25,363	$ 24,416
Less: accumulated depreciation and amortization	(20,727)	(20,623)
Property and equipment, net	$ 4,636	$ 3,793

Balance Sheet Components (Accru

Balance Sheet Components (Accrued Liabilities and Current Portion of Long-Term Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Balance Sheet Related Disclosures [Abstract]
Accrued payroll and related liabilities	$ 3,468	$ 2,169
Accrued commissions and royalties	2,751	2,427
Accrued interest payable	2,303	2,078
Deferred research and development reimbursement	1,311	0
Current portion of accrued liabilities for asset financings	1,013	389
Liability for warranty returns	33	28	$ 27	$ 49
Accrued costs related to restructuring	0	60
Other	2,362	709
Accrued liabilities and current portion of long-term liabilities	$ 13,241	$ 7,860

Balance Sheet Components (Liabi

Balance Sheet Components (Liability for Warranty Returns) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 28	$ 49
Provision (benefit)	10	(4)
Charge-offs	(5)	(18)
Balance at end of period	$ 33	$ 27

Balance Sheet Components (Short

Balance Sheet Components (Short-Term Line of Credit) (Narrative) (Details) $ in Thousands	Dec. 15, 2016USD ($)
Balance Sheet Related Disclosures [Abstract]
Maximum borrowing capacity	$ 10,000
Line of credit facility, component of calculation for maximum borrowing amount under formula advances	$ 1,000
Line of credit facility maximum borrowing capacity limited by eligible AR	80.00%
Line of credit facility, maximum borrowing capacity under non-formula advances	$ 10,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	$ 29,701	$ 17,960
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	29,701	17,960
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds	$ 0	$ 0

Restructuring (Details)

Restructuring (Details)	1 Months Ended
	Apr. 30, 2016
2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Approximate reduction in workforce from restructuring plan (percent)	24.00%

Restructuring (Components of Re

Restructuring (Components of Restructuring Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	$ 0	$ 67	$ 0	$ 2,605
2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Total restructuring expense			0	4,355
2016 Restructuring Plan | Cost of revenue — restructuring:
Restructuring Cost and Reserve [Line Items]
Tooling and inventory write offs			0	1,679
Employee severance and benefits			0	71
Total restructuring expense			0	1,750
2016 Restructuring Plan | Operating expenses — restructuring:
Restructuring Cost and Reserve [Line Items]
Employee severance and benefits			0	2,510
Licensed technology and other assets write offs			0	65
Other			0	30
Total restructuring expense			$ 0	$ 2,605

Restructuring (Restructuring Re

Restructuring (Restructuring Reserve Rollforward) (Details) - 2016 Restructuring Plan $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2016	$ 60
Expensed	0
Payments	(60)
Balance as of June 30, 2017	0
Employee severance and benefits
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2016	60
Expensed	0
Payments	(60)
Balance as of June 30, 2017	$ 0

Research and Development (Detai

Research and Development (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Research and Development [Abstract]
Amount receivable as of date of development agreement		$ 4,000
Amounts payable upon completion of milestones		2,000
Research And Development Benefit Recognized	$ 2,275	$ 2,689

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Reversal of uncertain tax positions	$ 191	$ 170
Liability for uncertain tax positions	1,435		$ 1,419
Reduction to deferred tax assets	636		$ 560
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations, including interest and penalties	18
Excess tax benefits	$ 485

Earnings Per Share (Earnings Pe

Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income (loss)	$ 1,264	$ (1,560)	$ 4,085	$ (10,202)
Weighted average shares outstanding, basic	29,766	28,167	29,526	28,051
Dilutive effect of employee equity incentive plans	2,208	0	2,075	0
Weighted average shares outstanding, diluted	31,974	28,167	31,601	28,051
Net income (loss) per share, basic	$ 0.04	$ (0.06)	$ 0.14	$ (0.36)
Net income (loss) per share, diluted	$ 0.04	$ (0.06)	$ 0.13	$ (0.36)

Earnings Per Share (Antidilutiv

Earnings Per Share (Antidilutive Effect on Weighted Average Shares) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Employee equity incentive plans (in shares)	271	4,587	7	4,486

Segment Information (Geographic

Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue, net	$ 20,721	$ 12,580	$ 43,431	$ 23,747
Japan
Revenue, net	18,167	10,506	33,361	19,952
Taiwan
Revenue, net	2,229	1,235	6,097	2,269
China
Revenue, net	320	316	596	497
Europe
Revenue, net	5	141	1,941	300
Korea
Revenue, net	0	241	787	415
United States
Revenue, net	0	9	121	54
Other
Revenue, net	$ 0	$ 132	$ 528	$ 260

Segment Information (Major Cust

Segment Information (Major Customers) (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017
Segment Reporting Information
Number of customers included in five largest customer concentration disclosure	5
Revenue, net | Minimum
Segment Reporting Information
Concentration risk benchmark percentage	10.00%
Accounts Receivable | Minimum
Segment Reporting Information
Concentration risk benchmark percentage	10.00%

Segment Information (Revenue by

Segment Information (Revenue by Major Customer) (Details) - Revenue, net		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
All distributors
Revenue, Major Customer
Percentage of revenue		41.00%	55.00%	49.00%	47.00%
Distributor A
Revenue, Major Customer
Percentage of revenue		30.00%	35.00%	29.00%	28.00%
Top five end customers
Revenue, Major Customer
Percentage of revenue	[1]	87.00%	82.00%	75.00%	83.00%
End customer A
Revenue, Major Customer
Percentage of revenue	[1]	51.00%	42.00%	43.00%	50.00%
End customer B
Revenue, Major Customer
Percentage of revenue	[1]	15.00%	11.00%	10.00%	10.00%
End customer C
Revenue, Major Customer
Percentage of revenue	[1]	9.00%	11.00%	8.00%	7.00%
End customer D
Revenue, Major Customer
Percentage of revenue	[1]	5.00%	13.00%	9.00%	10.00%
[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	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Account X
Segment Reporting Information
Percentage of accounts receivable	80.00%	54.00%
Account Y
Segment Reporting Information
Percentage of accounts receivable	11.00%	5.00%

Subsequent Events (Details)

Subsequent Events (Details) - ViXS Systems, Inc. - USD ($) $ in Thousands	Aug. 02, 2017	Jun. 30, 2017	Jun. 30, 2017
Subsequent Event [Line Items]
Acquisition-related costs		$ 730	$ 894
Subsequent Event
Subsequent Event [Line Items]
Estimated purchase price	$ 17,531
Restricted Stock | Subsequent Event
Subsequent Event [Line Items]
Stock issued due to acquisition	200,000
Common Stock | Subsequent Event
Subsequent Event [Line Items]
Stock issued due to acquisition	3,700,000