Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 35,582,126 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float, Share Price | $ 4.59 | ||
Entity Public Float | $ 120,445,800 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 27,523 | $ 19,622 |
Accounts receivable, net | 4,640 | 3,118 |
Inventories | 2,846 | 2,803 |
Prepaid expenses and other current assets | 1,328 | 736 |
Total current assets | 36,337 | 26,279 |
Property and equipment, net | 5,605 | 3,793 |
Other assets, net | 1,338 | 785 |
Acquired intangible assets, net | 5,856 | 0 |
Goodwill | 18,407 | 0 |
Total assets | 67,543 | 30,857 |
Current liabilities: | ||
Accounts payable | 1,436 | 1,734 |
Accrued liabilities and current portion of long-term liabilities | 16,387 | 7,860 |
Current portion of income taxes payable | 445 | 140 |
Total current liabilities | 18,268 | 9,734 |
Long-term liabilities, net of current portion | 1,487 | 194 |
Convertible debt | 6,069 | 0 |
Income taxes payable, net of current portion | 2,282 | 1,880 |
Total liabilities | 28,106 | 11,808 |
Commitments and contingencies (Note 11) | ||
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, 34,651,087 and 28,885,795 shares issued and outstanding as of December 31, 2017 and 2016, respectively | 418,891 | 394,296 |
Accumulated other comprehensive income | 20 | 10 |
Accumulated deficit | (379,474) | (375,257) |
Total shareholders' equity | 39,437 | 19,049 |
Total liabilities and shareholders' equity | $ 67,543 | $ 30,857 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 34,651,087 | 28,885,795 |
Common stock, shares outstanding | 34,651,087 | 28,885,795 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | ||||
Revenue, net (1) | [1] | $ 80,637 | $ 53,390 | $ 59,517 |
Cost of revenue (2) | [2] | 38,873 | 28,322 | 30,224 |
Gross profit | 41,764 | 25,068 | 29,293 | |
Operating expenses: | ||||
Research and development (3) | [3] | 21,427 | 19,036 | 24,644 |
Selling, general and administrative (4) | [4] | 20,450 | 13,770 | 14,453 |
Restructuring | 1,920 | 2,608 | 0 | |
Total operating expenses | 43,797 | 35,414 | 39,097 | |
Loss from operations | (2,033) | (10,346) | (9,804) | |
Interest expense and other, net (5) | [5] | (1,647) | (406) | (446) |
Loss before income taxes | (3,680) | (10,752) | (10,250) | |
Provision for income taxes (6) | [6] | 493 | 355 | 320 |
Net loss | $ (4,173) | $ (11,107) | $ (10,570) | |
Net loss per share - basic and diluted | $ (0.13) | $ (0.39) | $ (0.42) | |
Weighted average shares outstanding - basic and diluted | 31,507 | 28,276 | 25,088 | |
[1] | Includes deferred revenue fair value adjustment 93 — — | |||
[2] | Includes inventory step-up and backlog amortization 1,965 — — Amortization of acquired intangible assets 497 — — Stock-based compensation 243 190 196 Restructuring — 1,784 — Additional amortization of non-cancelable prepaid royalty — 0 (14) | |||
[3] | Includes stock-based compensation 1,648 1,600 1,927 | |||
[4] | Includes acquisition and integration related costs 2,460 — — Stock-based compensation 2,352 872 1,798 Amortization of acquired intangible assets 168 — — | |||
[5] | Includes fair value adjustment on convertible debt conversion option 743 — — Discount accretion on convertible debt fair value 196 — — Gain on debt extinguishment (29) — — | |||
[6] | Includes benefit related to tax reform (343) — — |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory step-up and backlog amortization | $ 1,965 | $ 0 | $ 0 |
Amortization of acquired intangible assets | 874 | ||
Fair value adjustment on convertible debt conversion option | 743 | 0 | 0 |
Discount accretion on convertible debt fair value | 196 | 0 | 0 |
Gain on debt extinguishment | 29 | 0 | 0 |
Revenue | |||
Deferred revenue fair value adjustment | 93 | 0 | 0 |
Cost of revenue | |||
Inventory step-up and backlog amortization | 1,965 | 0 | 0 |
Amortization of acquired intangible assets | 497 | 0 | 0 |
Additional amortization of non-cancelable prepaid royalty | 243 | 190 | 196 |
Restructuring | 0 | 1,784 | 0 |
Additional amortization of non-cancelable prepaid royalty | 0 | 0 | (14) |
Amortization of acquired intangible assets | 706 | ||
Research and development | |||
Additional amortization of non-cancelable prepaid royalty | 1,648 | 1,600 | 1,927 |
Selling, general and administrative | |||
Additional amortization of non-cancelable prepaid royalty | 2,352 | 872 | 1,798 |
Acquisition-related costs | 2,460 | 0 | 0 |
Amortization of acquired intangible assets | 168 | 0 | 0 |
Interest expense and other, net | |||
Fair value adjustment on convertible debt conversion option | 743 | 0 | 0 |
Discount accretion on convertible debt fair value | 196 | 0 | 0 |
Gain on debt extinguishment | (29) | 0 | 0 |
Provision for income taxes | |||
Includes benefit related to tax reform | $ (343) | $ 0 | $ 0 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss | $ (4,173) | $ (11,107) | $ (10,570) |
Other comprehensive income (loss): | |||
Foreign pension adjustment | 14 | 6 | (6) |
Tax effect of pension adjustment | (4) | (2) | 1 |
Total comprehensive loss | $ (4,163) | $ (11,103) | $ (10,575) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (4,173) | $ (11,107) | $ (10,570) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 4,243 | 2,662 | 3,921 |
Depreciation and amortization | 3,577 | 3,466 | 4,263 |
Inventory step-up and backlog amortization | 1,965 | 0 | 0 |
Fair value adjustment on convertible debt conversion option | 743 | 0 | 0 |
Amortization of acquired intangible assets | 665 | 0 | 0 |
Discount accretion on convertible debt fair value | 196 | 0 | 0 |
Reversal of uncertain tax positions | (191) | (170) | (323) |
Gain on debt extinguishment | (29) | 0 | 0 |
Write off of certain assets to restructuring | 0 | 1,744 | 0 |
Deferred income tax expense | 4 | 22 | 23 |
Other | 71 | 47 | 53 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (554) | 2,870 | (1,340) |
Inventories | 1,378 | 179 | (368) |
Prepaid expenses and other current and long-term assets, net | 650 | (166) | 163 |
Accounts payable | (2,063) | (1,210) | (210) |
Accrued current and long-term liabilities | 4,819 | 101 | 346 |
Income taxes payable | 898 | 27 | 195 |
Net cash provided by (used in) operating activities | 12,199 | (1,535) | (3,847) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (2,484) | (2,144) | (3,012) |
Cash received in connection with acquisition of business | 1,901 | 0 | 0 |
Purchases of licensed technology | 0 | 0 | (55) |
Net cash used in investing activities | (583) | (2,144) | (3,067) |
Cash flows from financing activities: | |||
Payments on line of credit related to acquisition | (4,046) | 0 | 0 |
Proceeds from issuances of common stock under employee equity incentive plans | 3,004 | 1,077 | 990 |
Payments on asset financings | (1,673) | (1,367) | (1,767) |
Payments on convertible debt | (1,000) | 0 | 0 |
Payments on line of credit | 0 | (3,000) | 0 |
Net proceeds from equity offering | 0 | 0 | 16,356 |
Net cash provided by (used in) financing activities | (3,715) | (3,290) | 15,579 |
Net increase (decrease) in cash and cash equivalents | 7,901 | (6,969) | 8,665 |
Cash and cash equivalents, beginning of period | 19,622 | 26,591 | 17,926 |
Cash and cash equivalents, end of period | 27,523 | 19,622 | 26,591 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for interest | 418 | 139 | 104 |
Cash paid for income taxes, net of refunds received | 160 | 437 | 366 |
Non-cash investing and financing activities: | |||
Value of shares issued in acquisition | 16,975 | 0 | 0 |
Acquisitions of property and equipment and other assets under extended payment terms | 3,558 | 0 | 765 |
Value of debt converted into shares | $ 329 | $ 0 | $ 0 |
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, 2014 | $ 15,684 | $ 369,253 | $ 11 | $ (353,580) |
Beginning 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 | |||
Stock-based compensation expense | 3,921 | $ 3,921 | 0 | 0 |
Issuance of stock for acquisition | 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 | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Stock issued under employee equity incentive plans | 1,077 | $ 1,077 | 0 | 0 |
Stock issued under employee equity incentive plans, shares | 1,121,587 | |||
Stock-based compensation expense | 2,662 | $ 2,662 | 0 | 0 |
Other | 37 | 37 | 0 | 0 |
Issuance of stock for acquisition | 0 | |||
Net loss | (11,107) | 0 | 0 | (11,107) |
Foreign pension adjustment, net of tax | 4 | 0 | 4 | 0 |
Ending balance at Dec. 31, 2016 | 19,049 | $ 394,296 | 10 | (375,257) |
Ending balance, shares at Dec. 31, 2016 | 28,885,795 | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Stock issued under employee equity incentive plans | 3,004 | $ 3,004 | 0 | 0 |
Stock issued under employee equity incentive plans, shares | 2,001,782 | |||
Stock-based compensation expense | 4,243 | $ 4,243 | 0 | 0 |
Other | 0 | 44 | 0 | (44) |
Issuance of stock for acquisition | 16,975 | $ 16,975 | 0 | 0 |
Issuance of stock for acquisition, shares | 3,708,262 | |||
Debt conversion | 329 | $ 329 | ||
Debt conversion, shares | 55,248 | |||
Net loss | (4,173) | $ 0 | 0 | (4,173) |
Foreign pension adjustment, net of tax | 10 | 0 | 10 | 0 |
Ending balance at Dec. 31, 2017 | $ 39,437 | $ 418,891 | $ 20 | $ (379,474) |
Ending balance, shares at Dec. 31, 2017 | 34,651,087 |
Consolidated Statements of Sha9
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax effect of foreign pension adjustment | $ 4 | $ 2 | $ (1) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Nature of Business Pixelworks designs, develops and markets visual display processing semiconductors, intellectual property cores, software and custom application specific integrated circuits ("ASIC") solutions for high-quality energy efficient video applications. In addition, we offer a suite of solutions for advanced media processing and the efficient delivery and streaming of video. We enable worldwide manufacturers to offer leading-edge consumer electronics and professional display products, as well as video delivery and streaming solutions for content service providers. Our core visual display processing technology intelligently processes digital images and video from a variety of sources and optimizes the content for a superior viewing experience. Pixelworks’ video coding technology reduces storage requirements, significantly reduces bandwidth constraint issues and converts content between multiple formats to enable seamless delivery of video, including over-the-air (OTA) streaming, while also maintaining end-to-end content security. The rapid growth in video-capable consumer devices, especially mobile, has increased the demand for visual display processing and video delivery technology in recent years. Our technologies can be applied to a wide range of devices from large-screen projectors to low-power mobile tablets, smartphones, high-quality video infrastructure equipment and streaming devices. Our products are architected and optimized for power, cost, bandwidth, and overall system performance, according to the requirements of the specific application. Our primary target markets include digital projection systems, tablets, smartphones, and OTA streaming devices. As of December 31, 2017, we had an intellectual property portfolio of 536 patents related to the visual display of digital image data. We focus our research and development efforts on developing video algorithms that improve quality, and architectures that reduce system power, cost, bandwidth and increase overall system performance and device functionality. 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. On August 2, 2017, we acquired ViXS Systems, Inc., a corporation organized in Canada (“ViXS”). 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 $172 , $153 and $125 for the years ended December 31, 2017, 2016 and 2015, respectively. Use of Estimates The preparation of condensed 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, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, valuation of convertible debt, income taxes. The actual results experienced could differ materially from our estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 $23,402 and $17,960 as of December 31, 2017 and 2016 , 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, 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. We have concluded that the carrying value of our long-lived assets is recoverable as of December 31, 2017. Goodwill Goodwill is not amortized, rather tested, at least annually, for impairment at a reporting unit level. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment using the guidance set forth in FASB Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") which states that an entity may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of goodwill impairment loss to be recognized. An entity has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. Accordingly, we have elected to bypass the qualitative assessment and proceed directly to the quantitative goodwill impairment test. We tested goodwill for impairment under the quantitative goodwill impairment test during the fourth quarter of 2017 and concluded that goodwill was not impaired. 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 value of our restricted stock awards are based on the market value of our stock on the date of grant. 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 lives. 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, they are offset against research and development expense on a pro-rata basis. 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 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, 2017 2016 Actuarial income on foreign pension obligation $ 35 $ 27 Accumulated transition foreign pension obligation (15 ) (17 ) Accumulated other comprehensive income $ 20 $ 10 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. 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 us 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. As permitted by ASU 2017-04, Pixelworks has elected to early adopt the amendments contained in ASU 2017-04 for our annual impairment test of goodwill during the fourth quarter of 2017. Accordingly, our 2017 goodwill impairment analysis was based on and reflected the requirements of ASU 2017-04. The adoption of this update did not 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 us 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 assets 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 us on January 1, 2018. We have developed an implementation plan to adopt this new guidance. As part of this plan, we assessed the impact of the new guidance on our results of operations. Based on our procedures performed to date, we do not expect the adoption of this standard to have a material impact on our financial statements but do anticipate increased disclosures after adoption. We adopted ASU 2014-09 on January 1, 2018 and we have selected the modified retrospective transition method. The adoption of this new standard did not result in a cumulative-effect adjustment to retained earnings as of January 1, 2018. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | ACQUISITION On August 2, 2017, we acquired 100% of the outstanding shares of ViXS Systems, Inc. (“ViXS”), a Canadian corporation (the "Acquisition"). We issued 0.04836 of a share of our common stock in exchange for each share of ViXS common stock outstanding and for certain ViXS restricted stock units which were vested simultaneously with closing. ViXS designs and develops advanced video processing semiconductor solutions. The acquisition of ViXS added families of video processor components for consumer applications and cloud, video delivery and infrastructure markets, along with a companion family of networking components to our solutions. These factors contributed to establishing the purchase price and supported the premium paid over the fair value of the tangible and intangible assets acquired. The aggregate purchase price for ViXS was $16,975 and consisted of $16,316 related to the issuance of 3,586,021 shares of our common stock plus $659 related to: (i) the issuance of 202,043 unvested restricted stock units, in exchange for ViXS’ unvested restricted stock units, plus (ii) the issuance of 122,242 shares to a holder of ViXS restricted stock units which were vested simultaneously with closing. The purchase price calculations were based on the closing price of our common stock on the day the transaction closed. The ViXS chief executive officer (the "CEO") was terminated in connection with the closing of the transaction. As a result, we recognized expense of $1,115 , which consisted of $800 related to a severance agreement, payable over 24 months, and $315 related to accelerated vesting of the CEO’s ViXS restricted stock units which were exchanged for Pixelworks common stock at closing. Such amount is included within selling, general and administrative within our consolidated statement of operations for the year ended December 31, 2017. The purchase price was preliminarily allocated to the assets and liabilities based on fair values as follows: Purchase price $ 16,975 Less net liabilities assumed: Assets acquired: Cash and cash equivalents 1,901 Accounts receivable 968 Inventories 3,175 Property and equipment 964 Other assets 1,562 Identifiable intangible assets 6,730 Liabilities assumed: Accounts payable (1,736 ) Accrued liabilities and other current liabilities (2,832 ) Revolving bank loan (4,046 ) Convertible debt (6,485 ) Other noncurrent liabilities (1,633 ) (1,432 ) Goodwill $ 18,407 The allocation of purchase price consideration to assets and liabilities is not yet finalized. The preliminary allocation of the purchase price was based upon preliminary estimates and assumptions that are subject to change within the measurement period (up to one year from the acquisition date). Below are the significant valuations that were performed associated with the acquisition which were based upon preliminary estimates: • We performed a valuation of the convertible debt. We assigned value of $4,762 to convertible debt, consisting of the contractual amount of $6,068 offset by a debt discount of $1,306 , and $1,723 related to the embedded conversion feature. No other features of the debt were assigned value at the acquisition date. • We performed a valuation of acquired intangible assets. We have preliminarily assigned $5,050 of the purchase price to acquired developed technology with estimated lives of 5 years or less, $1,270 to customer relationships with estimated lives of 3 years or less, and $410 to backlog and trademark with estimated lives of 2 years or less. ViXS had no in-process research and development. • We recorded an inventory step-up of $2,191 to record inventory at fair value. We are recognizing this within cost of goods sold as the inventory is sold which we expect to be over a period of approximately 12 months. During the fourth quarter, after further analysis of estimates and assumptions associated with the acquired ViXS inventory, we reduced the value of acquired inventory by $386 with a corresponding increase to goodwill. We preliminarily recorded gross deferred tax assets of $62,992 , subject to a valuation allowance of $62,972 to recognize book basis and tax basis differences of various balance sheet assets and liabilities and corporate tax attributes acquired. The goodwill resulting from this transaction is not deductible for tax purposes. The results of ViXS’ operations are included in our consolidated statement of operations beginning on the date of acquisition. ViXS revenue of $4,489 and net loss of $(6,729) , which included $1,920 in restructuring charges, (see Note 7: "Restructurings") and $3,633 of non-cash amortization of acquisition and debt related items are included in our consolidated statement of operations for the year ended December 31, 2017. The following table reflects the unaudited pro forma results of Pixelworks and ViXS as if the merger had taken place as of January 1, 2016: Year Ended December 31, 2017 2016 Revenue, net $ 90,764 $ 81,909 Net loss $ (3,733 ) $ (25,234 ) Net loss per share: Basic $ (0.11 ) $ (0.79 ) Diluted $ (0.11 ) $ (0.79 ) Weighted average shares outstanding: Basic 33,670 31,984 Diluted 33,670 31,984 The unaudited pro forma net loss presented above includes adjustments for amortization of acquired intangible assets and other assets, and stock-based compensation as these items are expected to have a continuing effect on the consolidated results of operations of the combined company. The unaudited pro forma net income (loss) presented above does not reflect amortization of the mark-up of acquired inventory to fair value, or acquisition-related costs of $3,010 for the year ended December 31, 2017, as they are not reflective of the ongoing operations of the combined entities. Net loss reported for the year ended December 31, 2017 includes a $4,785 gain ViXS recognized on the sale of a product line during the period. The pro-forma information does not necessarily reflect the actual results that would have occurred, nor is it necessarily indicative of future results of operations of the combined companies. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | BALANCE SHEET COMPONENTS Accounts Receivable, Net Accounts receivable consists of the following: December 31, 2017 2016 Accounts receivable, gross $ 4,687 $ 3,150 Allowance for doubtful accounts (47 ) (32 ) Accounts receivable, net $ 4,640 $ 3,118 The following is a summary of the change in our allowance for doubtful accounts: Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 32 $ 60 $ 301 Additions charged (reductions credited) 15 (28 ) 9 Accounts written-off, net of recoveries — — (250 ) Balance at end of year $ 47 $ 32 $ 60 Inventories Inventories consist of the following: December 31, 2017 2016 Finished goods $ 1,115 $ 1,707 Work-in-process 1,731 1,096 Inventories $ 2,846 $ 2,803 We recorded inventory write-downs, offset by sales of previously written-down inventory of $184 for the year ended December 31, 2017. We recorded inventory write-downs, offset by sales of previously written-down inventory of $257 for the year ended December 31, 2016, of which $285 was included in restructuring and was related to the write off of inventory associated with markets we are no longer pursuing. We recorded inventory write-downs, offset by sales of previously written-down inventory of $199 for the year ended December 31, 2015. The inventory write-downs were for lower of cost or market and excess and obsolescence exposure, offset by sales of previously written-down inventory of $165 , $44 and $8 for the years ended December 31, 2017, 2016 and 2015, 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. Property and Equipment, Net Property and equipment consists of the following: December 31, 2017 2016 Equipment, furniture and fixtures $ 9,040 $ 10,070 Software 6,112 6,295 Tooling 5,665 5,714 Leasehold improvements 2,255 2,337 23,072 24,416 Accumulated depreciation and amortization (17,467 ) (20,623 ) Property and equipment, net $ 5,605 $ 3,793 Software amortization was $1,501 , $1,755 and $2,127 for the years ended December 31, 2017, 2016 and 2015, respectively. Depreciation and amortization expense for equipment, furniture, fixtures, tooling and leasehold improvements was $2,076 , $1,705 and $1,483 for the years ended December 31, 2017, 2016 and 2015, respectively. Other Assets, Net Other assets consist primarily of deposits, deferred tax assets and licensed technology. Amortization of licensed technology was $0 , $6 and $653 for the years ended December 31, 2017, 2016 and 2015, respectively. Acquired Intangible Assets, Net In connection with the Acquisition, we recorded certain identifiable intangible assets. See Note 3: “Acquisition” for additional information. Acquired intangible assets resulting from this transaction consist of the following: December 31, 2017 2016 Developed technology $ 5,050 $ — Customer relationships 1,270 — Backlog and tradename 410 — 6,730 — Less: accumulated amortization (874 ) — Acquired intangible assets, net $ 5,856 $ — Intangible assets are amortized over the following estimated useful lives: developed technology and customer relationships, 3 to 5 years; and tradename and backlog, 6 to 18 months. Amortization expense for intangible assets was $874 for the year ended December 31, 2017, with $706 included in cost of revenue and $168 included in selling, general and administrative on the consolidated statement of operations. As of December 31, 2017, future estimated amortization expense is as follows: Years ending December 31: 2018 1,648 2019 1,505 2020 1,496 2021 1,117 2022 90 $ 5,856 Acquired intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Conditions that would trigger an impairment assessment include, but are not limited to, past, current, or expected cash flow or operating losses associated with the asset and an expectation that the asset will be significantly utilized before the end of its useful life. There were no such triggering events requiring an impairment assessment of other intangible assets as of December 31, 2017. Goodwill Goodwill resulted from our acquisition of ViXS on August 2, 2017, whereby we recorded goodwill of $18,407 . See Note 3: "Acquisition" for information concerning the acquisition. See Note 2: "Summary of Significant Accounting Policies" for information on our assessment of goodwill impairment. Accrued Liabilities and Current Portion of Long-Term Liabilities Accrued liabilities and current portion of long-term liabilities consist of the following: December 31, 2017 2016 Accrued payroll and related liabilities $ 5,400 $ 2,169 Accrued interest payable 2,770 2,078 Accrued commissions and royalties 2,610 2,427 Current portion of accrued liabilities for asset financings 1,701 389 Deferred revenue 418 — Accrued costs related to restructuring 352 60 Liability for warranty returns 17 28 Other 3,119 709 Accrued liabilities and current portion of long-term liabilities $ 16,387 $ 7,860 The following is a summary of the change in our liability for warranty returns: Year Ended December 31, 2017 2016 2015 Liability for warranty returns: Balance at beginning of year $ 28 $ 49 $ 105 Provision (benefit) 2 6 (24 ) Charge-offs (13 ) (27 ) (32 ) Balance at end of year $ 17 $ 28 $ 49 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, December 15, 2016, July 21, 2017 and December 21, 2017 (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 28, 2018. 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. 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 28, 2018, 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. As of December 31, 2017 and December 31, 2016, we had no outstanding borrowings on the Revolving Line. |
Convertible Debt
Convertible Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Debt | CONVERTIBLE DEBT As part of the Acquisition, we assumed secured convertible debt, which consists of the following as of December 31, 2017: 10% convertible notes, principal amount $ 4,749 Unamortized debt discount (1,030 ) Conversion feature, at fair value 2,350 $ 6,069 As a result of the change in control of ViXS, the convertible debt holders had a right to put the debt to the Company. A majority of the holders agreed to waive their right to accelerate and to accept 0.04836 share of our common stock for each share of ViXS common stock the holder would have been entitled to receive upon the exercise of the conversion option. During the year ended December 31, 2017, we repaid $1,000 to those holders that did not agree to waive their rights. Key terms of the convertible debt include: • Currency - The convertible debt is denominated in Canadian dollars, with principal and interest payments made in Canadian dollars. As a result, we record foreign currency transaction gains or losses in our statement of operations related to the convertible debt. • Interest - Stated rate of 10% per year, payable semi-annually. If the five day volume weighted average market price of our common stock exceeds the U.S. dollar equivalent of CAD $16.54 for 15 consecutive trading days, the interest rate will reset to a fixed rate of 1.0% . The five day volume weighted average market price for our common stock did not exceed such threshold during the year ended December 31, 2017. • Maturity - $2,102 of the principal amount of convertible notes is due September 2019 and $2,647 is due January 2020. • Conversion Option - Convertible at any time at the option of the holders into our common stock at a conversion price of CAD $7.24 per share for the convertible notes due September 2019 (of which the principal outstanding amount in Canadian dollars is CAD $2,640 ) and CAD $7.03 per share for the convertible notes due January 2020 (of which the principle outstanding amount in Canadian dollars is CAD $3,324 ), or 837,503 shares. • Redemption - Through December 31, 2017, we may redeem the convertible debt for 110% of the principal amount plus accrued and unpaid interest. Thereafter, we may redeem the convertible debt for 100% of the principal amount plus accrued and unpaid interest. • Default - There are certain events that require us to redeem the outstanding convertible debt for 100% of the principal plus accrued and unpaid interest. Such events include, but are not limited to, the failure to pay principal or interest in accordance with the terms of the agreement, the sale of intellectual property without the consent of the holders, and a change in control. For the year ended December 31, 2017, interest expense consisted of $227 related to the contractual rate of interest and $196 related to accretion of the discount. During the year ended December 31, 2017, we recorded net foreign currency gains of approximately $(4) in other expense, $0 of which was related to accretion of the discount. The unamortized debt discount of $1,030 , is expected to be amortized over two years. On November 21, 2017, a convertible debt holder elected to convert their debt. The principal amount of the debt converted was CAD $ 400 and resulted in the issuance of 55,248 shares of our common stock which was valued at $329 on the date of conversion. On January 12, 2018, the Company provided notice to the holders of the convertible debt of its election to redeem the convertible debt in full as of March 13, 2018. For additional information see "Note 16: Subsequent Events". Conversion Feature Because our functional currency is the U.S. dollar and the convertible debt, including the conversion option, is denominated in Canadian dollars, it is not indexed to our stock. As a result, the conversion option of the convertible debt is separately identified and recognized at fair value as a derivative liability. For the year ended December 31, 2017, $743 is included in other expense in our consolidated statement of operations for the increase in the fair value of the conversion feature. Interest Deceleration Feature The interest deceleration feature also qualifies as a derivative that requires separate accounting from the convertible debt. However, based on the terms of the convertible debt, we concluded that the interest deceleration will never occur because it would always be advantageous for us to call the convertible debt before the common stock reaches the price that triggers the reset. Accordingly, this derivative was assigned $0 value as of December 31, 2017. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets as of December 31, 2017 and 2016: Level 1 Level 2 Level 3 Total As of December 31, 2017: Assets: Money market funds $ 23,402 $ — $ — $ 23,402 Liabilities: Convertible debt - including conversion feature $ — $ 5,300 $ — $ 5,300 Conversion feature - convertible debt — 2,350 — 2,350 As of December 31, 2016: Assets: Money market funds $ 17,960 $ — $ — $ 17,960 We primarily use the market approach to determine the fair value of our financial instruments. 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. The fair value of the convertible debt conversion feature was calculated using the Tsiveriotis and Fernandes Convertible Debt Model. Three primary assumptions used in the calculations were: volatility of 60% , credit spread of 13.13% and risk free rate of 1.87% . The embedded conversion feature is measured at fair value on a recurring basis and included with convertible debt in our consolidated balance sheet. Convertible debt was recorded at fair value in our consolidated balance sheet on the date of the Acquisition, however fair value adjustments are not required after the Acquisition date. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURINGS In September 2017, in connection with the Acquisition, we executed a restructuring plan to secure significant synergies between ViXS and Pixelworks. The plan included an approximately 15% reduction in workforce, primarily in the area of development, however, it also impacted administration and sales. 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 years ended December 31, 2017, 2016 and 2015 is comprised of the following: Year Ended December 31, 2017 2016 2015 Cost of revenue — restructuring: Tooling and inventory write offs $ — $ 1,679 $ — Employee severance and benefits — 105 — — 1,784 — Operating expenses — restructuring: Employee severance and benefits $ 1,920 $ 2,513 $ — Licensed technology and other asset write offs — 65 — Other — 30 — 1,920 2,608 — Total restructuring expense $ 1,920 $ 4,392 $ — The following is a rollforward of the accrued liabilities related to restructuring for the year ended December 31, 2017: Balance as of December 31, 2016 Expensed Payments Balance as of December 31, 2017 Employee severance and benefits $ 60 $ 1,920 $ (1,628 ) $ 352 Accrued costs related to restructuring $ 60 $ 1,920 $ (1,628 ) $ 352 |
Research and Development (Notes
Research and Development (Notes) | 12 Months Ended |
Dec. 31, 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 $4,000 during the year ended December 31, 2017. |
Interest Expense and Other, Net
Interest Expense and Other, Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Interest Expense and Other, Net | INTEREST EXPENSE AND OTHER, NET Interest expense and other, consists of the following: Year Ended December 31, 2017 2016 2015 Interest expense 1 $ (878 ) $ (446 ) $ (450 ) Fair value adjustment on convertible debt conversion option (743 ) — — Discount accretion on convertible debt fair value (196 ) — — Interest income 141 40 4 Gain on debt extinguishment 29 — — Total interest expense and other, net $ (1,647 ) $ (406 ) $ (446 ) 1 Increase in 2017 compared to 2016 due to contractual interest on convertible debt, as well as imputed interest on short and long-term liabilities acquired as a part of the Acquisition. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Domestic $ 903 $ (11,881 ) $ (11,675 ) Foreign (4,583 ) 1,129 1,425 Domestic and foreign pre-tax loss $ (3,680 ) $ (10,752 ) $ (10,250 ) Income tax expense attributable to operations is comprised of the following: Year Ended December 31, 2017 2016 2015 Current: Federal $ (321 ) $ 55 $ 55 State 4 2 2 Foreign 806 276 240 Total current 489 333 297 Deferred: Foreign 4 22 23 Total deferred 4 22 23 Income tax expense $ 493 $ 355 $ 320 The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 Federal statutory rate 34 % 34 % 34 % Change in valuation allowance 887 (14 ) (17 ) Tax law change (789 ) — — Expiration of tax attributes (127 ) (11 ) (18 ) Permanent items (8 ) — — Stock-based compensation (8 ) (13 ) (7 ) Impact of foreign earnings (2 ) 1 1 State income taxes, net of federal tax benefit — 2 3 Other — (2 ) 1 Effective income tax rate (13 )% (3 )% (3 )% 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, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 56,461 $ 77,357 Research and experimentation credit and deduction carryforwards 63,796 11,849 Foreign tax credit carryforwards 2,216 3,575 Deferred stock-based compensation 802 1,705 Depreciation and amortization 3,068 1,241 Reserves and accrued expenses 511 623 Other 705 438 Total gross deferred tax assets 127,559 96,788 Deferred tax liabilities: Foreign earnings — (327 ) Other (485 ) (269 ) Total gross deferred tax liabilities (485 ) (596 ) Less valuation allowance (126,946 ) (96,079 ) Net deferred tax assets $ 128 $ 113 The Company adopted ASU 2016-09 in the first quarter of 2017. The Company had excess tax benefits for which a benefit could not be previously recognized of approximately $485 . Upon adoption the balance of the unrecognized excess tax benefits was reversed with the impact recorded to retained earnings including the change to the valuation allowance as a result of the adoption. The Tax Cuts and Jobs Act was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. Due to deficits in certain foreign subsidiaries we reasonably estimate that we will not have a transition tax liability for the repatriation of our foreign earnings. Additionally, a minimum tax on certain foreign earnings in excess of 10 percent of the foreign subsidiaries tangible assets (i.e., global intangible low-taxed income or “GILTI”) will be effective for future tax years. We have evaluated this change and made a policy election to treat the GILTI tax as a period expense. Our estimates may be affected as we gain a more thorough understanding of the tax law. On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we have determined that $28,973 of the deferred tax expense recorded in connection with the re-measurement of certain deferred tax assets and liabilities, $343 of current tax benefit recorded in connection with the refundable AMT credit and the transition tax on the mandatory deemed repatriation of foreign earnings were provisional amounts and reasonable estimates as of December 31, 2017. Additional work is necessary to do a more detailed analysis of historical foreign earnings as well as potential adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. We continue to record a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2017 and 2016 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, with the exception of Canada, 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 $30,867 , $1,555 and $1,732 for the years ended December 31, 2017, 2016, and 2015, respectively. As of December 31, 2017, we had federal, state and foreign net operating loss carryforwards of $215,326 , $11,444 and $38,578 respectively, which will expire between 2018 and 2037. As of December 31, 2017, we had available federal, state and foreign research and experimentation tax credit carryforwards of $8,962 , $4,019 , and $27,322 respectively. The federal and state tax credits will begin expiring in 2019 while the foreign credits have an indefinite life. In addition, our Canadian subsidiary has unclaimed scientific and experimental expenditures to be carried forward and applied against future income in Canada of approximately $119,447 . We have a general foreign tax credit of $1,655 which will begin expiring in 2018. As of December 31, 2017 we recorded a receivable for our AMT tax credit carryforwards of $343 which will be refundable under the Tax Cuts and Jobs Act. 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% increase in equity ownership by 5% shareholders in any three-year period. We recognized all of the earnings of our foreign subsidiaries as part of the transition tax of the Tax Cuts and Jobs Act. As of December 31, 2017, we do not have a liability for unremitted foreign earnings. 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 . Uncertain Tax Positions We have recorded tax liabilities to address potential exposures involving positions that could be challenged by taxing authorities. As of December 31, 2017 the amount of our uncertain tax positions was a liability of $1,735 and a reduction to deferred tax assets of $777 . As of December 31, 2016, the amount of our uncertain tax positions was a liability of $1,419 and a reduction to deferred tax assets of $560 . The following is a summary of the change in our liability for uncertain tax positions and interest and penalties: 2017 2016 Uncertain tax positions: Balance at beginning of year $ 1,886 $ 1,863 Accrual for positions taken in a prior year 40 (126 ) Accrual for positions taken in current year 263 257 Reversals due to lapse of statute of limitations (120 ) (108 ) Accrual for positions acquired in acquisition of ViXS Systems 375 — Balance at end of year $ 2,444 $ 1,886 Interest and penalties: Balance at beginning of year $ 93 $ 129 Accrual for positions taken in prior year 8 7 Accrual for positions taken in current year 30 19 Reversals due to lapse of statute of limitations (71 ) (62 ) Accrual for positions acquired in acquisition of ViXS Systems 8 — Balance at end of year $ 68 $ 93 During the years ended December 31, 2017, 2016 and 2015, we recognized $46 , $26 and $9 , 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 $8 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 2014, 2013 and 2010, 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, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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 $1,017 , $722 and $826 for the years ended December 31, 2017, 2016 and 2015, 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, 2017, 2016 or 2015. 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, 2017, future minimum payments under non-cancelable software licenses and operating lease agreements are as follows: Year Ending December 31, Software licenses Operating leases Total 2018 $ 1,904 $ 2,564 $ 4,468 2019 642 1,546 2,188 2020 — 626 626 2021 — 265 265 2022 — 66 66 2,546 $ 5,067 $ 7,613 Less: Interest component (271 ) Present value of minimum software license payments 2,275 Less: Current portion (1,701 ) Long-term portion of obligations $ 574 Rent expense for the years ended December 31, 2017, 2016 and 2015 was $2,488 , $1,770 and $1,735 , respectively. Other Contractual Obligation As part of the Acquisition discussed in "Note 3: Acquisition", we acquired debt associated with an agreement with the Government of Canada called Technology Partnerships Canada ("TPC"). As part of the TPC agreement, ViXS Systems Inc. was provided funding to assist in research and development expenses of which a portion was later required to be repaid because the conditions for repayment were met. The scheduled payments are made on a quarterly basis and end in January 2024. As of December 31, 2017, $381 is included in accrued liabilities and current portion of long-term liabilities in our consolidated balance sheet and $727 is included in long-term liabilities, net of current portion in our consolidated balance sheet. 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, 2017, 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, 2017 | |
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, 2017 2016 2015 Net loss $ (4,173 ) $ (11,107 ) $ (10,570 ) Weighted average shares outstanding - basic and diluted 31,507 28,276 25,088 Net loss per share - basic and diluted $ (0.13 ) $ (0.39 ) $ (0.42 ) The following 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, 2017 2016 2015 Employee equity incentive plans 3,879 4,982 4,248 Convertible debt 371 — — 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. Potentially dilutive common shares from the convertible debt are determined by applying the if-converted method to the assumed conversion of the outstanding convertible debt. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 . 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. Employee Equity Incentive Plans On May 23, 2006, our shareholders approved the adoption of the Pixelworks, Inc. 2006 Stock Incentive Plan (the "2006 Plan"). The 2006 Plan has since been amended on certain occasions, most recently on May 10, 2017 when our shareholders approved an increase to the total number of authorized shares to 11,983,333 shares. As of December 31, 2017 , 615,913 shares were available for grant under the 2006 Plan. Stock Options In May 2009, the 2006 Plan was modified to reduce the contractual life of newly issued stock option 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, 2016: 2,505,702 $ 2.46 Granted 44,000 4.20 Exercised (991,332 ) 2.76 Canceled and forfeited (154,061 ) 2.13 Expired (98,559 ) 5.43 Options outstanding as of December 31, 2017: 1,305,750 $ 2.11 The following table summarizes information about options outstanding as of December 31, 2017 : Options Outstanding Options Exercisable Range of exercise prices Number outstanding as of December 31, 2017 Weighted average remaining contractual life Weighted average exercise price Number exercisable as of December 31, 2017 Weighted average exercise price $0.60 - $0.60 300,000 1.22 $ 0.60 300,000 $ 0.60 0.68 - 2.43 205,541 1.03 1.16 201,333 1.14 2.46 - 2.46 352,000 3.99 2.46 169,708 2.46 2.67 - 3.15 385,209 1.72 3.03 312,459 3.09 3.27 - 6.16 63,000 3.93 4.72 27,272 4.86 $0.60 - $6.16 1,305,750 2.22 $ 2.11 1,010,772 $ 1.94 During the years ended December 31, 2017 , 2016 and 2015 the total intrinsic value of options exercised was $1,801 , $481 and $440 , 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, 2017 , options outstanding had a total intrinsic value of $5,516 . Options outstanding that have vested and are expected to vest as of December 31, 2017 are as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Vested 1,010,772 $ 1.90 1.59 $ 4,473 Expected to vest 263,380 2.77 4.34 938 Total 1,274,152 $ 2.08 2.16 $ 5,411 Restricted Stock The 2006 Plan provides for the issuance of restricted stock, including restricted stock units. During the years ended December 31, 2017, 2016 and 2015 we granted 1,514,527 , 1,572,519 , and 530,735 shares, respectively, of restricted stock with a weighted average grant date fair value of $4.87 , $2.21 , and $4.31 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, 2016: 1,698,500 $ 2.93 Granted 1,514,527 4.87 Vested (857,208 ) 3.63 Canceled (53,217 ) 3.33 Unvested at December 31, 2017: 2,302,602 $ 3.94 Expected to vest after December 31, 2017 1,925,115 $ 3.94 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, 2017 , 2016 and 2015, we issued 153,242 , 141,633 and 92,899 shares, respectively for proceeds of $270 , $252 and $352 , 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, 2017 2016 2015 Stock Option Plans: Risk free interest rate 1.85 % 1.37 % 1.52 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 5.00 5.00 5.00 Volatility 75 % 74 % 68 % Employee Stock Purchase Plan: Risk free interest rate 1.09 % 0.20 % 0.28 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 1.07 1.12 1.10 Volatility 65 % 84 % 89 % The weighted average fair value of options granted during the years ended December 31, 2017 , 2016 and 2015 was $2.58 , $1.41 and $2.93 , 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, 2017 , unrecognized stock-based compensation expense is $5,979 , which is expected to be recognized as stock-based compensation expense over a weighted average period of 2.32 years. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Japan $ 66,041 $ 44,186 $ 50,436 Taiwan 6,841 5,095 5,909 Europe 2,166 634 611 China 2,117 1,616 765 U.S. 1,697 84 167 Korea 987 963 942 Other 788 812 687 $ 80,637 $ 53,390 $ 59,517 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, 2017 2016 2015 Distributors: All distributors 47 % 43 % 48 % Distributor A 27 % 24 % 31 % End Customers: 1 Top five end customers 79 % 82 % 83 % End customer A 47 % 53 % 47 % End customer B 9 % 8 % 13 % 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, 2017 2016 Account X 38 % 54 % Account Y 29 % 5 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Period Ended March 31 June 30 September 30 December 31 1 2017 Revenue, net $ 22,710 $ 20,721 $ 18,758 $ 18,448 Gross profit 12,392 11,201 9,011 9,160 Income (loss) from operations 3,347 2,040 (4,378 ) (3,042 ) Income (loss) before income taxes 3,254 1,933 (4,906 ) (3,961 ) Net income (loss) 2,821 1,264 (4,706 ) (3,552 ) Net income (loss) per share: Basic 0.10 0.04 (0.14 ) (0.10 ) Diluted 0.09 0.04 (0.14 ) (0.10 ) 2016 Revenue, net $ 11,167 $ 12,580 $ 13,656 $ 15,987 Gross profit 3,592 6,415 6,557 8,504 Income (loss) from operations (8,486 ) (1,336 ) (960 ) 436 Income (loss) before income taxes (8,585 ) (1,443 ) (1,059 ) 335 Net income (loss) (8,642 ) (1,560 ) (1,242 ) 337 Net income (loss) per share: Basic (0.31 ) (0.06 ) (0.04 ) 0.01 Diluted (0.31 ) (0.06 ) (0.04 ) 0.01 1 The three months ended December 31, 2017 includes $949 for inventory step-up and backlog amortization, $621 for fair value adjustment on convertible debt conversion feature, and $439 in restructuring expenses. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 12, 2018, Pixelworks provided notice to the holders of the convertible debt of its election to redeem the convertible debt in full as of March 13, 2018. Subsequently, certain holders of the convertible debt have elected to convert their convertible debt into shares of common stock of Pixelworks pursuant to the terms of the convertible debt, which provides a conversion price of CAD $7.24 per share for the convertible debt due September 2019 and CAD $7.03 per share for the convertible debt due January 2020. This resulted in the issuance of 435,353 shares of our common stock to such holders. We paid an aggregate of CAD $2,875 to redeem the convertible debt of those holders who did not elect to convert their convertible debt into shares of common stock. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy | The preparation of condensed 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, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, valuation of convertible debt, income taxes. 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 $23,402 and $17,960 as of December 31, 2017 and 2016 , 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 | 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. |
Goodwill, Policy | Goodwill is not amortized, rather tested, at least annually, for impairment at a reporting unit level. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment using the guidance set forth in FASB Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") which states that an entity may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of goodwill impairment loss to be recognized. An entity has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. Accordingly, we have elected to bypass the qualitative assessment and proceed directly to the quantitative goodwill impairment test. We tested goodwill for impairment under the quantitative goodwill impairment test during the fourth quarter of 2017 and concluded that goodwill was not impaired. |
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 value of our restricted stock awards are based on the market value of our stock on the date of grant. |
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 lives. 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, they are offset against research and development expense on a pro-rata basis. |
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 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 Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income, net of tax, consists of the following: December 31, 2017 2016 Actuarial income on foreign pension obligation $ 35 $ 27 Accumulated transition foreign pension obligation (15 ) (17 ) Accumulated other comprehensive income $ 20 $ 10 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | The purchase price was preliminarily allocated to the assets and liabilities based on fair values as follows: Purchase price $ 16,975 Less net liabilities assumed: Assets acquired: Cash and cash equivalents 1,901 Accounts receivable 968 Inventories 3,175 Property and equipment 964 Other assets 1,562 Identifiable intangible assets 6,730 Liabilities assumed: Accounts payable (1,736 ) Accrued liabilities and other current liabilities (2,832 ) Revolving bank loan (4,046 ) Convertible debt (6,485 ) Other noncurrent liabilities (1,633 ) (1,432 ) Goodwill $ 18,407 |
Pro Forma Information | The following table reflects the unaudited pro forma results of Pixelworks and ViXS as if the merger had taken place as of January 1, 2016: Year Ended December 31, 2017 2016 Revenue, net $ 90,764 $ 81,909 Net loss $ (3,733 ) $ (25,234 ) Net loss per share: Basic $ (0.11 ) $ (0.79 ) Diluted $ (0.11 ) $ (0.79 ) Weighted average shares outstanding: Basic 33,670 31,984 Diluted 33,670 31,984 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | Accounts receivable consists of the following: December 31, 2017 2016 Accounts receivable, gross $ 4,687 $ 3,150 Allowance for doubtful accounts (47 ) (32 ) Accounts receivable, net $ 4,640 $ 3,118 |
Allowance for Doubtful Accounts | The following is a summary of the change in our allowance for doubtful accounts: Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 32 $ 60 $ 301 Additions charged (reductions credited) 15 (28 ) 9 Accounts written-off, net of recoveries — — (250 ) Balance at end of year $ 47 $ 32 $ 60 |
Inventories | Inventories consist of the following: December 31, 2017 2016 Finished goods $ 1,115 $ 1,707 Work-in-process 1,731 1,096 Inventories $ 2,846 $ 2,803 |
Property and Equipment, Net | Property and equipment consists of the following: December 31, 2017 2016 Equipment, furniture and fixtures $ 9,040 $ 10,070 Software 6,112 6,295 Tooling 5,665 5,714 Leasehold improvements 2,255 2,337 23,072 24,416 Accumulated depreciation and amortization (17,467 ) (20,623 ) Property and equipment, net $ 5,605 $ 3,793 |
Schedule of Finite-Lived Intangible Assets | Acquired intangible assets resulting from this transaction consist of the following: December 31, 2017 2016 Developed technology $ 5,050 $ — Customer relationships 1,270 — Backlog and tradename 410 — 6,730 — Less: accumulated amortization (874 ) — Acquired intangible assets, net $ 5,856 $ — |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2017, future estimated amortization expense is as follows: Years ending December 31: 2018 1,648 2019 1,505 2020 1,496 2021 1,117 2022 90 $ 5,856 |
Accrued Liabilities and Current Portion of Long-Term Liabilities | Accrued liabilities and current portion of long-term liabilities consist of the following: December 31, 2017 2016 Accrued payroll and related liabilities $ 5,400 $ 2,169 Accrued interest payable 2,770 2,078 Accrued commissions and royalties 2,610 2,427 Current portion of accrued liabilities for asset financings 1,701 389 Deferred revenue 418 — Accrued costs related to restructuring 352 60 Liability for warranty returns 17 28 Other 3,119 709 Accrued liabilities and current portion of long-term liabilities $ 16,387 $ 7,860 |
Liability for Warranty Returns | The following is a summary of the change in our liability for warranty returns: Year Ended December 31, 2017 2016 2015 Liability for warranty returns: Balance at beginning of year $ 28 $ 49 $ 105 Provision (benefit) 2 6 (24 ) Charge-offs (13 ) (27 ) (32 ) Balance at end of year $ 17 $ 28 $ 49 |
Convertible Debt (Tables)
Convertible Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | As part of the Acquisition, we assumed secured convertible debt, which consists of the following as of December 31, 2017: 10% convertible notes, principal amount $ 4,749 Unamortized debt discount (1,030 ) Conversion feature, at fair value 2,350 $ 6,069 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets as of December 31, 2017 and 2016: Level 1 Level 2 Level 3 Total As of December 31, 2017: Assets: Money market funds $ 23,402 $ — $ — $ 23,402 Liabilities: Convertible debt - including conversion feature $ — $ 5,300 $ — $ 5,300 Conversion feature - convertible debt — 2,350 — 2,350 As of December 31, 2016: Assets: Money market funds $ 17,960 $ — $ — $ 17,960 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expense by Components | Total restructuring expense included in our statement of operations for the years ended December 31, 2017, 2016 and 2015 is comprised of the following: Year Ended December 31, 2017 2016 2015 Cost of revenue — restructuring: Tooling and inventory write offs $ — $ 1,679 $ — Employee severance and benefits — 105 — — 1,784 — Operating expenses — restructuring: Employee severance and benefits $ 1,920 $ 2,513 $ — Licensed technology and other asset write offs — 65 — Other — 30 — 1,920 2,608 — Total restructuring expense $ 1,920 $ 4,392 $ — |
Schedule of Accrued Restructuring Liabilities | The following is a rollforward of the accrued liabilities related to restructuring for the year ended December 31, 2017: Balance as of December 31, 2016 Expensed Payments Balance as of December 31, 2017 Employee severance and benefits $ 60 $ 1,920 $ (1,628 ) $ 352 Accrued costs related to restructuring $ 60 $ 1,920 $ (1,628 ) $ 352 |
Interest Expense and Other, N33
Interest Expense and Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | Interest expense and other, consists of the following: Year Ended December 31, 2017 2016 2015 Interest expense 1 $ (878 ) $ (446 ) $ (450 ) Fair value adjustment on convertible debt conversion option (743 ) — — Discount accretion on convertible debt fair value (196 ) — — Interest income 141 40 4 Gain on debt extinguishment 29 — — Total interest expense and other, net $ (1,647 ) $ (406 ) $ (446 ) 1 Increase in 2017 compared to 2016 due to contractual interest on convertible debt, as well as imputed interest on short and long-term liabilities acquired as a part of the Acquisition. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Domestic $ 903 $ (11,881 ) $ (11,675 ) Foreign (4,583 ) 1,129 1,425 Domestic and foreign pre-tax loss $ (3,680 ) $ (10,752 ) $ (10,250 ) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense attributable to operations is comprised of the following: Year Ended December 31, 2017 2016 2015 Current: Federal $ (321 ) $ 55 $ 55 State 4 2 2 Foreign 806 276 240 Total current 489 333 297 Deferred: Foreign 4 22 23 Total deferred 4 22 23 Income tax expense $ 493 $ 355 $ 320 |
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, 2017 2016 2015 Federal statutory rate 34 % 34 % 34 % Change in valuation allowance 887 (14 ) (17 ) Tax law change (789 ) — — Expiration of tax attributes (127 ) (11 ) (18 ) Permanent items (8 ) — — Stock-based compensation (8 ) (13 ) (7 ) Impact of foreign earnings (2 ) 1 1 State income taxes, net of federal tax benefit — 2 3 Other — (2 ) 1 Effective income tax rate (13 )% (3 )% (3 )% |
Schedule of Deferred Tax Assets, Liabilities, and Valuation Allowance | Significant components of our deferred tax assets and liabilities are as follows: December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 56,461 $ 77,357 Research and experimentation credit and deduction carryforwards 63,796 11,849 Foreign tax credit carryforwards 2,216 3,575 Deferred stock-based compensation 802 1,705 Depreciation and amortization 3,068 1,241 Reserves and accrued expenses 511 623 Other 705 438 Total gross deferred tax assets 127,559 96,788 Deferred tax liabilities: Foreign earnings — (327 ) Other (485 ) (269 ) Total gross deferred tax liabilities (485 ) (596 ) Less valuation allowance (126,946 ) (96,079 ) Net deferred tax assets $ 128 $ 113 |
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: 2017 2016 Uncertain tax positions: Balance at beginning of year $ 1,886 $ 1,863 Accrual for positions taken in a prior year 40 (126 ) Accrual for positions taken in current year 263 257 Reversals due to lapse of statute of limitations (120 ) (108 ) Accrual for positions acquired in acquisition of ViXS Systems 375 — Balance at end of year $ 2,444 $ 1,886 Interest and penalties: Balance at beginning of year $ 93 $ 129 Accrual for positions taken in prior year 8 7 Accrual for positions taken in current year 30 19 Reversals due to lapse of statute of limitations (71 ) (62 ) Accrual for positions acquired in acquisition of ViXS Systems 8 — Balance at end of year $ 68 $ 93 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Disclosure | As of December 31, 2017, future minimum payments under non-cancelable software licenses and operating lease agreements are as follows: Year Ending December 31, Software licenses Operating leases Total 2018 $ 1,904 $ 2,564 $ 4,468 2019 642 1,546 2,188 2020 — 626 626 2021 — 265 265 2022 — 66 66 2,546 $ 5,067 $ 7,613 Less: Interest component (271 ) Present value of minimum software license payments 2,275 Less: Current portion (1,701 ) Long-term portion of obligations $ 574 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Net loss $ (4,173 ) $ (11,107 ) $ (10,570 ) Weighted average shares outstanding - basic and diluted 31,507 28,276 25,088 Net loss per share - basic and diluted $ (0.13 ) $ (0.39 ) $ (0.42 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following 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, 2017 2016 2015 Employee equity incentive plans 3,879 4,982 4,248 Convertible debt 371 — — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016: 2,505,702 $ 2.46 Granted 44,000 4.20 Exercised (991,332 ) 2.76 Canceled and forfeited (154,061 ) 2.13 Expired (98,559 ) 5.43 Options outstanding as of December 31, 2017: 1,305,750 $ 2.11 |
Schedue of Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about options outstanding as of December 31, 2017 : Options Outstanding Options Exercisable Range of exercise prices Number outstanding as of December 31, 2017 Weighted average remaining contractual life Weighted average exercise price Number exercisable as of December 31, 2017 Weighted average exercise price $0.60 - $0.60 300,000 1.22 $ 0.60 300,000 $ 0.60 0.68 - 2.43 205,541 1.03 1.16 201,333 1.14 2.46 - 2.46 352,000 3.99 2.46 169,708 2.46 2.67 - 3.15 385,209 1.72 3.03 312,459 3.09 3.27 - 6.16 63,000 3.93 4.72 27,272 4.86 $0.60 - $6.16 1,305,750 2.22 $ 2.11 1,010,772 $ 1.94 |
Schedule of Stock Options Outstanding, Vested and Expected to Vest | Options outstanding that have vested and are expected to vest as of December 31, 2017 are as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Vested 1,010,772 $ 1.90 1.59 $ 4,473 Expected to vest 263,380 2.77 4.34 938 Total 1,274,152 $ 2.08 2.16 $ 5,411 |
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, 2016: 1,698,500 $ 2.93 Granted 1,514,527 4.87 Vested (857,208 ) 3.63 Canceled (53,217 ) 3.33 Unvested at December 31, 2017: 2,302,602 $ 3.94 Expected to vest after December 31, 2017 1,925,115 $ 3.94 |
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, 2017 2016 2015 Stock Option Plans: Risk free interest rate 1.85 % 1.37 % 1.52 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 5.00 5.00 5.00 Volatility 75 % 74 % 68 % Employee Stock Purchase Plan: Risk free interest rate 1.09 % 0.20 % 0.28 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 1.07 1.12 1.10 Volatility 65 % 84 % 89 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | Revenue by geographic region, was as follows: Year Ended December 31, 2017 2016 2015 Japan $ 66,041 $ 44,186 $ 50,436 Taiwan 6,841 5,095 5,909 Europe 2,166 634 611 China 2,117 1,616 765 U.S. 1,697 84 167 Korea 987 963 942 Other 788 812 687 $ 80,637 $ 53,390 $ 59,517 |
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, 2017 2016 2015 Distributors: All distributors 47 % 43 % 48 % Distributor A 27 % 24 % 31 % End Customers: 1 Top five end customers 79 % 82 % 83 % End customer A 47 % 53 % 47 % End customer B 9 % 8 % 13 % 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, 2017 2016 Account X 38 % 54 % Account Y 29 % 5 % |
Quarterly Financial Data (Una39
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | Quarterly Period Ended March 31 June 30 September 30 December 31 1 2017 Revenue, net $ 22,710 $ 20,721 $ 18,758 $ 18,448 Gross profit 12,392 11,201 9,011 9,160 Income (loss) from operations 3,347 2,040 (4,378 ) (3,042 ) Income (loss) before income taxes 3,254 1,933 (4,906 ) (3,961 ) Net income (loss) 2,821 1,264 (4,706 ) (3,552 ) Net income (loss) per share: Basic 0.10 0.04 (0.14 ) (0.10 ) Diluted 0.09 0.04 (0.14 ) (0.10 ) 2016 Revenue, net $ 11,167 $ 12,580 $ 13,656 $ 15,987 Gross profit 3,592 6,415 6,557 8,504 Income (loss) from operations (8,486 ) (1,336 ) (960 ) 436 Income (loss) before income taxes (8,585 ) (1,443 ) (1,059 ) 335 Net income (loss) (8,642 ) (1,560 ) (1,242 ) 337 Net income (loss) per share: Basic (0.31 ) (0.06 ) (0.04 ) 0.01 Diluted (0.31 ) (0.06 ) (0.04 ) 0.01 1 The three months ended December 31, 2017 includes $949 for inventory step-up and backlog amortization, $621 for fair value adjustment on convertible debt conversion feature, and $439 in restructuring expenses. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)patent | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of patents held | patent | 536 | ||
Foreign currency transaction loss, realized | $ | $ (172) | $ (153) | $ (125) |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Cash and cash equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents, at carrying value | $ 23,402 | $ 17,960 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Property and equipment) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 Accoun43
Summary of Significant Accounting Policies (Licensed Technology) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 Accoun44
Summary of Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Actuarial income on foreign pension obligation | $ 35 | $ 27 |
Accumulated transition foreign pension obligation | (15) | (17) |
Accumulated other comprehensive income | $ 20 | $ 10 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Aug. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Long-term debt | $ 6,069 | $ 6,069 | $ 6,069 | $ 0 | ||
Restructuring | 439 | 1,920 | $ 2,608 | $ 0 | ||
Acquisition-related costs excluded from pro forma | 3,010 | |||||
Gain recognized on the sale of a product line | $ 4,785 | |||||
ViXS Systems, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Percent of outstanding shares acquired | 100.00% | |||||
Shares issued per acquired share (in shares) | 0.04836 | 0.04836 | ||||
Purchase price | $ 16,975 | |||||
Integration related costs | 1,115 | |||||
Severance pay | $ 800 | |||||
Period of severance payments | 24 months | |||||
Cost of accelerated vesting of restricted stock units | $ 315 | |||||
Inventory | 3,175 | |||||
Revaluation adjustment to inventory | (386) | |||||
Revaluation adjustment to goodwill | $ 386 | |||||
Deferred tax assets | 62,992 | |||||
Valuation allowance | 62,972 | |||||
Revenue of acquiree since acquisition date, actual | 4,489 | |||||
Net income (loss) of acquiree since acquisition date, actual | (6,729) | |||||
Restructuring | 1,920 | |||||
Amortization | $ 3,633 | |||||
ViXS Systems, Inc. | Fair Value Adjustment to Inventory | ||||||
Business Acquisition [Line Items] | ||||||
Inventory | 2,191 | |||||
ViXS Systems, Inc. | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 5,050 | |||||
Weighted average useful life | 5 years | |||||
ViXS Systems, Inc. | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 1,270 | |||||
Weighted average useful life | 3 years | |||||
ViXS Systems, Inc. | Backlog and tradename | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 410 | |||||
Weighted average useful life | 2 years | |||||
ViXS Systems, Inc. | Convertible Debt | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt | $ 4,762 | |||||
Principal amount | 6,068 | |||||
Unamortized discount | 1,306 | |||||
Debt conversion feature | $ 1,723 | |||||
ViXS Systems, Inc. | Holder of ViXS Restricted Stock, Vested at Closing | ||||||
Business Acquisition [Line Items] | ||||||
Stock issued due to acquisition (in shares) | 122,242 | |||||
ViXS Systems, Inc. | Restricted Stock Units (RSUs) | ||||||
Business Acquisition [Line Items] | ||||||
Value of shares issued | $ 659 | |||||
Stock issued due to acquisition (in shares) | 202,043 | |||||
ViXS Systems, Inc. | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Value of shares issued | $ 16,316 | |||||
Stock issued due to acquisition (in shares) | 3,586,021 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Price Allocation of Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets acquired: | |||
Goodwill | $ 18,407 | $ 0 | |
ViXS Systems, Inc. | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 16,975 | ||
Assets acquired: | |||
Cash and cash equivalents | 1,901 | ||
Accounts receivable | 968 | ||
Inventories | 3,175 | ||
Property and equipment | 964 | ||
Other assets | 1,562 | ||
Identifiable intangible assets | 6,730 | ||
Goodwill | 18,407 | ||
Liabilities assumed: | |||
Accounts payable | (1,736) | ||
Accrued liabilities and other current liabilities | (2,832) | ||
Other noncurrent liabilities | (1,633) | ||
Less net liabilities assumed | (1,432) | ||
ViXS Systems, Inc. | Line of Credit | |||
Liabilities assumed: | |||
Debt | (4,046) | ||
ViXS Systems, Inc. | Convertible Debt | |||
Liabilities assumed: | |||
Debt | $ (6,485) |
Acquisition - Schedule of Pro F
Acquisition - Schedule of Pro Forma Information (Details) - ViXS Systems, Inc. - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Revenue, net | $ 90,764 | $ 81,909 |
Net income (loss) | $ (3,733) | $ (25,234) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ (0.11) | $ (0.79) |
Diluted (in dollars per share) | $ (0.11) | $ (0.79) |
Weighted average shares outstanding: | ||
Basic (in shares) | 33,670 | 31,984 |
Diluted (in shares) | 33,670 | 31,984 |
Balance Sheet Components (Accou
Balance Sheet Components (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable, Net [Abstract] | ||||
Accounts receivable, gross | $ 4,687 | $ 3,150 | ||
Allowance for doubtful accounts | (47) | (32) | $ (60) | $ (301) |
Accounts receivable, net | $ 4,640 | $ 3,118 |
Balance Sheet Components (Allow
Balance Sheet Components (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Balance at beginning of year | $ 32 | $ 60 | $ 301 |
Additions charged (reductions credited) | 15 | (28) | 9 |
Accounts written-off, net of recoveries | 0 | 0 | (250) |
Balance at end of year | $ 47 | $ 32 | $ 60 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 1,115 | $ 1,707 |
Work-in-process | 1,731 | 1,096 |
Inventories | $ 2,846 | $ 2,803 |
Balance Sheet Components (Inv51
Balance Sheet Components (Inventories) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Inventory write-downs | $ 184 | $ 257 | $ 199 |
Inventory write off included in restructuring | 285 | ||
Sale of previously written-down inventory | $ 165 | $ 44 | $ 8 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Equipment, furniture and fixtures | $ 9,040 | $ 10,070 |
Software | 6,112 | 6,295 |
Tooling | 5,665 | 5,714 |
Leasehold improvements | 2,255 | 2,337 |
Gross carrying amount | 23,072 | 24,416 |
Accumulated depreciation and amortization | (17,467) | (20,623) |
Property and equipment, net | $ 5,605 | $ 3,793 |
Balance Sheet Components (Pro53
Balance Sheet Components (Property and Equipment) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Software amortization | $ 1,501 | $ 1,755 | $ 2,127 |
Depreciation and amortization | $ 2,076 | $ 1,705 | $ 1,483 |
Balance Sheet Components (Other
Balance Sheet Components (Other Assets, Net) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Amortization of acquired intangible assets | $ 874 | ||
Amortization of Licensed Technology | $ 0 | $ 6 | $ 653 |
Balance Sheet Components (Acqui
Balance Sheet Components (Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, gross | $ 6,730 | $ 0 | |
Less: accumulated amortization | (874) | 0 | |
Acquired intangible assets, net | 5,856 | 0 | |
Amortization of acquired intangible assets | 874 | ||
Cost of revenue | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | 706 | ||
Selling, general and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | 168 | 0 | $ 0 |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, gross | $ 5,050 | 0 | |
Developed technology | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 3 years | ||
Developed technology | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 5 years | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, gross | $ 1,270 | 0 | |
Customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 3 years | ||
Customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 5 years | ||
Backlog and tradename | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, gross | $ 410 | $ 0 | |
Backlog and tradename | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 6 months | ||
Backlog and tradename | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 18 months |
Balance Sheet Components (Futur
Balance Sheet Components (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 1,648 | |
2,019 | 1,505 | |
2,020 | 1,496 | |
2,021 | 1,117 | |
2,022 | 90 | |
Acquired intangible assets, net | $ 5,856 | $ 0 |
Balance Sheet Components (Goodw
Balance Sheet Components (Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Aug. 02, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||
Goodwill | $ 18,407 | $ 0 | |
ViXS Systems, Inc. | |||
Goodwill [Line Items] | |||
Goodwill | $ 18,407 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued Liabilities and Current Portion of Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued payroll and related liabilities | $ 5,400 | $ 2,169 | ||
Accrued interest payable | 2,770 | 2,078 | ||
Accrued commissions and royalties | 2,610 | 2,427 | ||
Current portion of accrued liabilities for asset financings | 1,701 | 389 | ||
Deferred revenue | 418 | 0 | ||
Accrued costs related to restructuring | 352 | 60 | ||
Liability for warranty returns | 17 | 28 | $ 49 | $ 105 |
Other | 3,119 | 709 | ||
Accrued liabilities and current portion of long-term liabilities | $ 16,387 | $ 7,860 |
Balance Sheet Components (Liabi
Balance Sheet Components (Liability for Warranty Returns) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Warranty Returns [Roll Forward] | |||
Balance at beginning of year | $ 28 | $ 49 | $ 105 |
Provision (benefit) | 2 | 6 | (24) |
Charge-offs | (13) | (27) | (32) |
Balance at end of year | $ 17 | $ 28 | $ 49 |
Balance Sheet Components (Short
Balance Sheet Components (Short-Term Line of Credit) (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
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% |
Convertible Debt - Schedule of
Convertible Debt - Schedule of Convertible Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,069 | $ 0 |
Convertible Debt | 10% convertible notes | ||
Debt Instrument [Line Items] | ||
Principal amount | 4,749 | |
Unamortized debt discount | (1,030) | |
Conversion feature, at fair value | 2,350 | |
Long-term debt | $ 6,069 | |
Stated interest rate | 10.00% |
Convertible Debt - Additional I
Convertible Debt - Additional Information (Details) $ / shares in Units, $ in Thousands, $ in Thousands | Jan. 12, 2018$ / sharesshares | Nov. 21, 2017USD ($)shares | Nov. 21, 2017CAD ($)shares | Aug. 02, 2017USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2017USD ($)sharesday | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CAD ($)$ / shares |
Debt Instrument [Line Items] | ||||||||||
Discount accretion on convertible debt fair value | $ 196 | $ 0 | $ 0 | |||||||
Foreign currency transaction gain (loss) | (172) | (153) | (125) | |||||||
Value of debt converted into shares | 329 | 0 | 0 | |||||||
Fair value adjustment on convertible debt conversion option | $ 621 | 743 | $ 0 | $ 0 | ||||||
Derivative liability | 0 | $ 0 | $ 0 | |||||||
Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage | 100.00% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage | 110.00% | |||||||||
Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of equity instruments (in shares) | shares | 837,503 | |||||||||
Fair value adjustment on convertible debt conversion option | $ 743 | |||||||||
Convertible Debt | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt conversion, shares issued (in shares) | shares | 435,353 | |||||||||
Convertible Debt | 10% convertible notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 1,000 | |||||||||
Stated interest rate | 10.00% | 10.00% | 10.00% | 10.00% | ||||||
Threshold trading days | day | 5 | |||||||||
Stock price trigger | $ / shares | $ 16.54 | |||||||||
Threshold consecutive trading days | day | 15 | |||||||||
Threshold trading days covenant, interest rate | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Principal amount | $ 4,749 | $ 4,749 | $ 4,749 | |||||||
Interest expense, debt | 227 | |||||||||
Discount accretion on convertible debt fair value | 196 | |||||||||
Foreign currency transaction gain (loss) | 0 | |||||||||
Foreign currency gain (loss) due to accretion of discount | 0 | |||||||||
Unamortized discount | 1,030 | 1,030 | $ 1,030 | |||||||
Discount amortization period (in years) | 2 years | |||||||||
Convertible Debt | 10% Convertible Notes, Due September 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | 2,102 | 2,102 | $ 2,102 | $ 2,640 | ||||||
Conversion price (in dollars per share) | $ / shares | $ 7.24 | |||||||||
Convertible Debt | 10% Convertible Notes, Due September 2019 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 7.24 | |||||||||
Convertible Debt | 10% Convertible Notes, Due January 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 2,647 | $ 2,647 | $ 2,647 | $ 3,324 | ||||||
Conversion price (in dollars per share) | $ / shares | $ 7.03 | |||||||||
Convertible Debt | 10% Convertible Notes, Due January 2020 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 7.03 | |||||||||
ViXS Systems, Inc. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Shares issued per acquired share (in shares) | shares | 0.04836 | 0.04836 | ||||||||
ViXS Systems, Inc. | Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 6,068 | |||||||||
Unamortized discount | $ 1,306 | |||||||||
Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt conversion, original debt, amount | $ 400 | |||||||||
Debt conversion, shares issued (in shares) | shares | 55,248 | 55,248 | ||||||||
Value of debt converted into shares | $ 329 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Money market funds | $ 23,402 | $ 17,960 |
Convertible debt, including conversion feature | 5,300 | |
Conversion feature - convertible debt | 2,350 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Money market funds | 23,402 | 17,960 |
Convertible debt, including conversion feature | 0 | |
Conversion feature - convertible debt | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Money market funds | 0 | 0 |
Convertible debt, including conversion feature | 5,300 | |
Conversion feature - convertible debt | 2,350 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Money market funds | 0 | $ 0 |
Convertible debt, including conversion feature | 0 | |
Conversion feature - convertible debt | $ 0 | |
Convertible debt conversion feature | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Fair value assumptions, volatility rate | 60.00% | |
Fair value assumptions, credit spread | 13.13% | |
Fair value assumptions, risk free interest rate | 1.87% |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) | 1 Months Ended | |
Sep. 30, 2017 | Apr. 30, 2016 | |
The 2017 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Approximate reduction in workforce from restructuring plan (percent) | 15.00% | |
Restructuring Plan [Member] | ||
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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Tooling and inventory write offs | $ 184 | $ 257 | $ 199 |
Cost of Sales [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expense | 0 | 1,784 | 0 |
Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring expense | 1,920 | 4,392 | 0 |
Restructuring Plan [Member] | Cost of Sales [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Tooling and inventory write offs | 0 | 1,679 | 0 |
Employee severance and benefits | 0 | 105 | 0 |
Total restructuring expense | 0 | 1,784 | 0 |
Restructuring Plan [Member] | Operating Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee severance and benefits | 1,920 | 2,513 | 0 |
Licensed technology and other asset write offs | 0 | 65 | 0 |
Other | 0 | 30 | 0 |
Total restructuring expense | $ 1,920 | $ 2,608 | $ 0 |
Restructuring (Restructuring Re
Restructuring (Restructuring Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Charges | $ 439 | $ 1,920 | $ 2,608 | $ 0 |
Restructuring Plan [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2016 | 60 | |||
Restructuring Charges | 1,920 | |||
Payments for Restructuring | 1,628 | |||
Balance at December 31, 2017 | 352 | 352 | 60 | |
Employee Severance [Member] | Restructuring Plan [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2016 | 60 | |||
Restructuring Charges | 1,920 | |||
Payments for Restructuring | 1,628 | |||
Balance at December 31, 2017 | $ 352 | $ 352 | $ 60 |
Research and Development (Detai
Research and Development (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
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 | $ 4,000 |
Interest Expense and Other, N68
Interest Expense and Other, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Income and Expenses [Abstract] | |||||
Interest expense 1 | $ (878) | $ (446) | $ (450) | ||
Fair value adjustment on convertible debt conversion option | $ (621) | (743) | 0 | 0 | |
Discount accretion on convertible debt fair value | (196) | 0 | 0 | ||
Interest income | 141 | 40 | 4 | ||
Gain on debt extinguishment | 29 | 0 | 0 | ||
Total interest expense and other, net | [1] | $ (1,647) | $ (406) | $ (446) | |
[1] | Includes fair value adjustment on convertible debt conversion option 743 — — Discount accretion on convertible debt fair value 196 — — Gain on debt extinguishment (29) — — |
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, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||||||||||
Domestic | $ 903 | $ (11,881) | $ (11,675) | |||||||||
Foreign | (4,583) | 1,129 | 1,425 | |||||||||
Loss before income taxes | $ (3,961) | $ (4,906) | $ 1,933 | $ 3,254 | $ 335 | $ (1,059) | $ (1,443) | $ (8,585) | $ (3,680) | $ (10,752) | $ (10,250) | |
[1] | The three months ended December 31, 2017 includes $949 for inventory step-up and backlog amortization, $621 for fair value adjustment on convertible debt conversion feature, and $439 in restructuring expenses. |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current: | ||||
Federal | $ (321) | $ 55 | $ 55 | |
State | 4 | 2 | 2 | |
Foreign | 806 | 276 | 240 | |
Total current | 489 | 333 | 297 | |
Deferred: | ||||
Foreign | 4 | 22 | 23 | |
Total deferred | 4 | 22 | 23 | |
Income tax expense | [1] | $ 493 | $ 355 | $ 320 |
[1] | Includes benefit related to tax reform (343) — — |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S. Federal Statuatory Rate to our Effective Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
Change in valuation allowance | 887.00% | (14.00%) | (17.00%) |
Tax law change | (789.00%) | 0.00% | 0.00% |
Expiration of tax attributes | (127.00%) | (11.00%) | (18.00%) |
Permanent items | (8.00%) | 0.00% | 0.00% |
Stock-based compensation | (8.00%) | (13.00%) | (7.00%) |
Impact of foreign earnings | (2.00%) | 1.00% | 1.00% |
State income taxes, net of federal tax benefit | 0.00% | 2.00% | 3.00% |
Other | 0.00% | (2.00%) | 1.00% |
Effective income tax rate | (13.00%) | (3.00%) | (3.00%) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 56,461 | $ 77,357 |
Research and experimentation credit and deduction carryforwards | 63,796 | 11,849 |
Foreign tax credit carryforwards | 2,216 | 3,575 |
Deferred stock-based compensation | 802 | 1,705 |
Depreciation and amortization | 3,068 | 1,241 |
Reserves and accrued expenses | 511 | 623 |
Other | 705 | 438 |
Total gross deferred tax assets | 127,559 | 96,788 |
Deferred tax liabilities: | ||
Foreign earnings | 0 | (327) |
Other | (485) | (269) |
Total gross deferred tax liabilities | (485) | (596) |
Less valuation allowance | (126,946) | (96,079) |
Net deferred tax assets | $ 128 | $ 113 |
Income Taxes (Deferred Tax As73
Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 485 | |||
Deferred tax expense, re-measurement of certain deferred tax assets and liabilities | $ 28,973 | |||
Current tax benefit, refundable AMT credit and transition tax | 343 | |||
Change in net valuation allowance | $ 30,867 | $ 1,555 | $ 1,732 |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards and Tax Credits) (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Tax Credit Carryforward [Line Items] | |
Receivable for AMT tax credit carryforwards | $ 343 |
Federal [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 215,326 |
Tax credit carryforwards, research | $ 8,962 |
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 | $ 11,444 |
Tax credit carryforwards, research | 4,019 |
Foreign [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 38,578 |
Tax credit carryforwards, research | 27,322 |
General foreign tax credit | $ 1,655 |
China, Income tax holiday, reduced statutory rate | 15.00% |
China, Income tax holiday, expiration date | 2,018 |
Canada Revenue Agency [Member] | Foreign [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards, research | $ 119,447 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 1,419 | |
Balance at end of year | 1,735 | $ 1,419 |
Uncertain Tax Positions [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | 1,886 | 1,863 |
Accrual for positions taken in a prior year | 40 | (126) |
Accrual for positions taken in current year | 263 | 257 |
Reversals due to lapse of statute of limitations | (120) | (108) |
Accrual for positions acquired in acquisition of ViXS Systems | 375 | 0 |
Balance at end of year | 2,444 | 1,886 |
Interest and Penalties [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | 93 | 129 |
Accrual for positions taken in a prior year | 8 | 7 |
Accrual for positions taken in current year | 30 | 19 |
Reversals due to lapse of statute of limitations | (71) | (62) |
Accrual for positions acquired in acquisition of ViXS Systems | 8 | 0 |
Balance at end of year | $ 68 | $ 93 |
Income Taxes (Uncertain Tax P76
Income Taxes (Uncertain Tax Positions) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Liability for uncertain tax positions, noncurrent | $ 1,735 | $ 1,419 | |
Reduction to deferred tax assets | 777 | 560 | |
Unrecognized tax benefits, income tax penalties and interest expense | 46 | $ 26 | $ 9 |
Anticipated decrease of unrecognized tax liability, within twelve months | $ 8 |
Commitments and Contingencies77
Commitments and Contingencies (Royalties) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Royalty Expense | $ 1,017 | $ 722 | $ 826 |
Commitments and Contingencies78
Commitments and Contingencies (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Software licenses | |
Software licenses, 2018 | $ 1,904 |
Software licenses, 2019 | 642 |
Software licenses, 2020 | 0 |
Software licenses, 2021 | 0 |
Software licenses, 2022 | 0 |
Software licenses, total | 2,546 |
Less: Interest component | (271) |
Present value of minimum software license payments | 2,275 |
Less: Current portion | (1,701) |
Long-term portion of obligations | 574 |
Operating leases | |
Operating leases, 2018 | 2,564 |
Operating leases, 2019 | 1,546 |
Operating leases, 2020 | 626 |
Operating leases, 2021 | 265 |
Operating leases, 2022 | 66 |
Operating leases, total | 5,067 |
Total | |
Total, 2018 | 4,468 |
Total, 2019 | 2,188 |
Total, 2020 | 626 |
Total, 2021 | 265 |
Total 2,022 | 66 |
Total | $ 7,613 |
Commitments and Contingencies79
Commitments and Contingencies (Other Contractual Obligation) (Narrative) (Details) - ViXS Systems, Inc. - Debt associated with agreement with TPC $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Contractual obligation, other, current | $ 381 |
Contractual obligation, other, noncurrent | $ 727 |
Commitments and Contingencies80
Commitments and Contingencies (Leases) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense, net | $ 2,488 | $ 1,770 | $ 1,735 |
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, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||||||||||||
Net loss | $ (3,552) | $ (4,706) | $ 1,264 | $ 2,821 | $ 337 | $ (1,242) | $ (1,560) | $ (8,642) | $ (4,173) | $ (11,107) | $ (10,570) | |
Weighted average shares outstanding - basic and diluted | 31,507 | 28,276 | 25,088 | |||||||||
Net loss per share - basic and diluted | $ (0.13) | $ (0.39) | $ (0.42) | |||||||||
[1] | The three months ended December 31, 2017 includes $949 for inventory step-up and backlog amortization, $621 for fair value adjustment on convertible debt conversion feature, and $439 in restructuring expenses. |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Effect on Weighted Average Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee equity incentive plans | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 3,879 | 4,982 | 4,248 |
Convertible Debt Securities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 371 | 0 | 0 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
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, value | $ 16,356 | ||
Common stock, shares reserved for future issuance | 11,983,333 | ||
2006 Plan, number of shares available for grant | 615,913 |
Shareholders' Equity (Stock Opt
Shareholders' Equity (Stock Options) (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2009 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 1,801 | $ 481 | $ 440 | |
Total intrinsic value of outstanding options | $ 5,516 | |||
Stock Option Plans: | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, merit vesting period | 3 years | |||
Stock Option Plans: | Maximum | 2006 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan modification, contractual life | 10 years | |||
Stock Option Plans: | Minimum | 2006 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan modification, contractual life | 6 years |
Shareholders' Equity (Stock O85
Shareholders' Equity (Stock Options Activity Roll-forward) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Options Outstanding - Number of Shares | |
Options outstanding as of December 31, 2016: | shares | 2,505,702 |
Granted | shares | 44,000 |
Exercised | shares | (991,332) |
Canceled and forfeited | shares | (154,061) |
Expired | shares | (98,559) |
Options outstanding as of December 31, 2017: | shares | 1,305,750 |
Options Outstanding - Weighted Average Exercise Price | |
Options outstanding as of December 31, 2016: | $ / shares | $ 2.46 |
Granted | $ / shares | 4.20 |
Exercised | $ / shares | 2.76 |
Canceled and forfeited | $ / shares | 2.13 |
Expired | $ / shares | 5.43 |
Options outstanding as of December 31, 2017: | $ / shares | $ 2.11 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Shares Authorized Under Equity Compensation Plans, By Exercise Price) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 1,305,750 | 2,505,702 |
$0.60 - $0.60 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 300,000 | |
Options outstanding, weighted average remaining contractual life | 1 year 2 months 18 days | |
Options outstanding, weighted average exercise price | $ 0.60 | |
Number exercisable as of end of year | 300,000 | |
Options exerciseable, weighted average exercise price | $ 0.60 | |
0.68 - 2.43 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 205,541 | |
Options outstanding, weighted average remaining contractual life | 1 year 11 days | |
Options outstanding, weighted average exercise price | $ 1.16 | |
Number exercisable as of end of year | 201,333 | |
Options exerciseable, weighted average exercise price | $ 1.14 | |
2.46 - 2.46 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 352,000 | |
Options outstanding, weighted average remaining contractual life | 3 years 11 months 28 days | |
Options outstanding, weighted average exercise price | $ 2.46 | |
Number exercisable as of end of year | 169,708 | |
Options exerciseable, weighted average exercise price | $ 2.46 | |
2.67 - 3.15 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 385,209 | |
Options outstanding, weighted average remaining contractual life | 1 year 8 months 19 days | |
Options outstanding, weighted average exercise price | $ 3.03 | |
Number exercisable as of end of year | 312,459 | |
Options exerciseable, weighted average exercise price | $ 3.09 | |
3.27 - 6.16 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 63,000 | |
Options outstanding, weighted average remaining contractual life | 3 years 11 months 5 days | |
Options outstanding, weighted average exercise price | $ 4.72 | |
Number exercisable as of end of year | 27,272 | |
Options exerciseable, weighted average exercise price | $ 4.86 | |
$0.60 - $6.16 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 1,305,750 | |
Options outstanding, weighted average remaining contractual life | 2 years 2 months 20 days | |
Options outstanding, weighted average exercise price | $ 2.11 | |
Number exercisable as of end of year | 1,010,772 | |
Options exerciseable, weighted average exercise price | $ 1.94 |
Shareholders' Equity (Options V
Shareholders' Equity (Options Vested and Expected to Vest as of December 31, 2017) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Vested, number of shares | shares | 1,010,772 |
Expected to vest, number of shares | shares | 263,380 |
Total, number of shares | shares | 1,274,152 |
Vested, weighted average exercise price | $ / shares | $ 1.90 |
Expected to vest, weighted average exercise price | $ / shares | 2.77 |
Total, weighted average exercise price | $ / shares | $ 2.08 |
Vested, weighted average remaining contractual term | 1 year 7 months 2 days |
Expected to vest, weighted average remaining contractual term | 4 years 4 months 2 days |
Total, weighted average remaining contractual term | 2 years 1 month 28 days |
Vested, aggregate intrinsic value | $ | $ 4,473 |
Expected to vest, aggregate intrinsic value | $ | 938 |
Total, aggregate intrinsic value | $ | $ 5,411 |
Shareholders' Equity (Restricte
Shareholders' Equity (Restricted Stock) (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |||
Restricted stock grants, number of shares | 1,514,527 | 1,572,519 | 530,735 |
Restricted stock grants, weighted average grant date fair value | $ 4.87 | $ 2.21 | $ 4.31 |
Shareholders' Equity (Unvested
Shareholders' Equity (Unvested Restricted Stock Units Activity Roll-Forward) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unvested Restricted Stock Units - Number of Shares | |||
Unvested at December 31, 2016: | 1,698,500 | ||
Granted | 1,514,527 | ||
Vested | (857,208) | ||
Canceled | (53,217) | ||
Unvested at December 31, 2017: | 2,302,602 | 1,698,500 | |
Expected to vest after December 31, 2017 | 1,925,115 | ||
Unvested Restricted Stock Units - Weighted Average Grant Date Fair Value | |||
Unvested at December 31, 2016: | $ 2.93 | ||
Granted | 4.87 | $ 2.21 | $ 4.31 |
Vested | 3.63 | ||
Canceled | 3.33 | ||
Unvested at December 31, 2017: | 3.94 | $ 2.93 | |
Expected to vest after December 31, 2017 | $ 3.94 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
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 | 153,242 | 141,633 | 92,899 | |
Employee Stock Purchase Plans, proceeds from shares issued | $ 270 | $ 252 | $ 352 |
Shareholders' Equity (Schedul91
Shareholders' Equity (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Option Plans: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk free interest rate | 1.848% | 1.37% | 1.52% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 5 years | 5 years | 5 years |
Volatility | 74.63% | 74.00% | 68.00% |
Employee Stock Purchase Plan: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk free interest rate | 1.09% | 0.20% | 0.28% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 1 year 25 days | 1 year 1 month 12 days | 1 year 1 month 5 days |
Volatility | 65.00% | 84.00% | 89.00% |
Shareholders' Equity (Stock-bas
Shareholders' Equity (Stock-based Compensation Expense) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |||
Options, grants in period, weighted average grant date fair value | $ 2.58 | $ 1.41 | $ 2.93 |
Nonvested awards, total compensation cost not yet recognized | $ 5,979 | ||
Nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 3 months 25 days |
Segment Information (Geographic
Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Revenue, net | $ 18,448 | $ 18,758 | $ 20,721 | $ 22,710 | $ 15,987 | $ 13,656 | $ 12,580 | $ 11,167 | $ 80,637 | [2] | $ 53,390 | [2] | $ 59,517 | [2] | |
Japan | |||||||||||||||
Revenue, net | 66,041 | 44,186 | 50,436 | ||||||||||||
Taiwan | |||||||||||||||
Revenue, net | 6,841 | 5,095 | 5,909 | ||||||||||||
Europe | |||||||||||||||
Revenue, net | 2,166 | 634 | 611 | ||||||||||||
China | |||||||||||||||
Revenue, net | 2,117 | 1,616 | 765 | ||||||||||||
U.S. | |||||||||||||||
Revenue, net | 1,697 | 84 | 167 | ||||||||||||
Korea | |||||||||||||||
Revenue, net | 987 | 963 | 942 | ||||||||||||
Other | |||||||||||||||
Revenue, net | $ 788 | $ 812 | $ 687 | ||||||||||||
[1] | The three months ended December 31, 2017 includes $949 for inventory step-up and backlog amortization, $621 for fair value adjustment on convertible debt conversion feature, and $439 in restructuring expenses. | ||||||||||||||
[2] | Includes deferred revenue fair value adjustment 93 — — |
Segment Information (Schedule o
Segment Information (Schedule of Revenue by Major Customer) (Details) - Sales [Member] | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
All distributors | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | 47.00% | 43.00% | 48.00% | |
Distributor A | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | 27.00% | 24.00% | 31.00% | |
Top five end customers | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 79.00% | 82.00% | 83.00% |
End customer A | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 47.00% | 53.00% | 47.00% |
End customer B | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue | [1] | 9.00% | 8.00% | 13.00% |
[1] | End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. |
Segment Information (Accounts R
Segment Information (Accounts Receivable by Major Customer) (Details) - Accounts receivable | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Account X | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 38.00% | 54.00% |
Account Y | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 29.00% | 5.00% |
Quarterly Financial Data (Una96
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue, net | $ 18,448 | [1] | $ 18,758 | $ 20,721 | $ 22,710 | $ 15,987 | $ 13,656 | $ 12,580 | $ 11,167 | $ 80,637 | [2] | $ 53,390 | [2] | $ 59,517 | [2] |
Gross profit | 9,160 | [1] | 9,011 | 11,201 | 12,392 | 8,504 | 6,557 | 6,415 | 3,592 | 41,764 | 25,068 | 29,293 | |||
Income (loss) from operations | (3,042) | [1] | (4,378) | 2,040 | 3,347 | 436 | (960) | (1,336) | (8,486) | (2,033) | (10,346) | (9,804) | |||
Income (loss) before income taxes | (3,961) | [1] | (4,906) | 1,933 | 3,254 | 335 | (1,059) | (1,443) | (8,585) | (3,680) | (10,752) | (10,250) | |||
Net income (loss) | $ (3,552) | [1] | $ (4,706) | $ 1,264 | $ 2,821 | $ 337 | $ (1,242) | $ (1,560) | $ (8,642) | (4,173) | (11,107) | (10,570) | |||
Net income (loss) per share: | |||||||||||||||
Basic (in dollars per share) | $ (0.10) | [1] | $ (0.14) | $ 0.04 | $ 0.10 | $ 0.01 | $ (0.04) | $ (0.06) | $ (0.31) | ||||||
Diluted (in dollars per share) | $ (0.10) | [1] | $ (0.14) | $ 0.04 | $ 0.09 | $ 0.01 | $ (0.04) | $ (0.06) | $ (0.31) | ||||||
Inventory step-up and backlog amortization | $ 949 | ||||||||||||||
Fair value adjustment on convertible debt conversion option | 621 | 743 | 0 | 0 | |||||||||||
Restructuring charges | $ 439 | $ 1,920 | $ 2,608 | $ 0 | |||||||||||
[1] | The three months ended December 31, 2017 includes $949 for inventory step-up and backlog amortization, $621 for fair value adjustment on convertible debt conversion feature, and $439 in restructuring expenses. | ||||||||||||||
[2] | Includes deferred revenue fair value adjustment 93 — — |
Subsequent Event (Details)
Subsequent Event (Details) $ / shares in Units, $ in Thousands, $ in Thousands | Jan. 12, 2018CAD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017$ / shares |
Subsequent Event [Line Items] | |||||
Amount paid to redeem convertible debt | $ | $ 1,000 | $ 0 | $ 0 | ||
Convertible Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt conversion, shares issued (in shares) | shares | 435,353 | ||||
Amount paid to redeem convertible debt | $ | $ 2,875 | ||||
10% Convertible Notes, Due September 2019 | Convertible Debt | |||||
Subsequent Event [Line Items] | |||||
Conversion price (in dollars per share) | $ 7.24 | ||||
10% Convertible Notes, Due September 2019 | Convertible Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Conversion price (in dollars per share) | $ 7.24 | ||||
10% Convertible Notes, Due January 2020 | Convertible Debt | |||||
Subsequent Event [Line Items] | |||||
Conversion price (in dollars per share) | $ 7.03 | ||||
10% Convertible Notes, Due January 2020 | Convertible Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Conversion price (in dollars per share) | $ 7.03 |