Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Pixelworks, Inc. | |
Entity Central Index Key | 1,040,161 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 35,582,500 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 20,611 | $ 27,523 |
Accounts receivable, net | 4,451 | 4,640 |
Inventories | 2,589 | 2,846 |
Prepaid expenses and other current assets | 3,736 | 1,328 |
Total current assets | 31,387 | 36,337 |
Property and equipment, net | 5,871 | 5,605 |
Other assets, net | 1,341 | 1,338 |
Acquired intangible assets, net | 5,457 | 5,856 |
Goodwill | 18,407 | 18,407 |
Total assets | 62,463 | 67,543 |
Current liabilities: | ||
Accounts payable | 3,092 | 1,436 |
Accrued liabilities and current portion of long-term liabilities | 12,574 | 16,387 |
Current portion of income taxes payable | 355 | 445 |
Total current liabilities | 16,021 | 18,268 |
Long-term liabilities, net of current portion | 1,173 | 1,487 |
Convertible debt | 0 | 6,069 |
Income taxes payable, net of current portion | 2,353 | 2,282 |
Total liabilities | 19,547 | 28,106 |
Commitments and contingencies (Note 13) | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 422,968 | 418,891 |
Accumulated other comprehensive income | 20 | 20 |
Accumulated deficit | (380,072) | (379,474) |
Total shareholders’ equity | 42,916 | 39,437 |
Total liabilities and shareholders’ equity | $ 62,463 | $ 67,543 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | |||
Revenue, net | $ 15,292 | $ 22,710 | |
Cost of revenue | [1] | 7,490 | 10,318 |
Gross profit | 7,802 | 12,392 | |
Operating expenses: | |||
Research and development | [2] | 4,463 | 4,906 |
Selling, general and administrative | [3] | 4,614 | 4,139 |
Restructuring | 19 | 0 | |
Total operating expenses | 9,096 | 9,045 | |
Income (loss) from operations | (1,294) | 3,347 | |
Interest income (expense) and other, net | [4] | 972 | (93) |
Income (loss) before income taxes | (322) | 3,254 | |
Provision for income taxes | 276 | 433 | |
Net income (loss) | $ (598) | $ 2,821 | |
Income (loss) per share, basic | $ (0.02) | $ 0.10 | |
Income (loss) per share, diluted | $ (0.02) | $ 0.09 | |
Weighted Average Number of Shares Outstanding, Basic | 35,183 | 29,283 | |
Weighted Average Number of Shares Outstanding, Diluted | 35,183 | 31,146 | |
[1] | Includes: Inventory step-up and backlog amortization122 —Amortization of acquired intangible assets298 —Stock-based compensation66 53 | ||
[2] | Includes: Stock-based compensation595 314 | ||
[3] | Includes: Stock-based compensation539 422Amortization of acquired intangible assets101 — | ||
[4] | Includes: Discount accretion on convertible debt fair value69 —Gain on debt extinguishment(1,272) — |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Gain (Loss) on Extinguishment of Debt | $ 1,272 | $ 0 |
Inventory step-up and backlog amortization | 122 | 0 |
Amortization of acquired intangible assets | 399 | 0 |
Discount accretion on convertible debt fair value | 69 | 0 |
Cost of revenue | ||
Inventory step-up and backlog amortization | 122 | 0 |
Amortization of acquired intangible assets | 298 | |
Stock-based compensation | 66 | 53 |
Cost of revenue | Acquired intangible assets | ||
Amortization of acquired intangible assets | 298 | 0 |
Research and development | ||
Stock-based compensation | 595 | 314 |
Selling, general and administrative | ||
Amortization of acquired intangible assets | 101 | 0 |
Stock-based compensation | 539 | 422 |
Interest expense and other, net | ||
Gain (Loss) on Extinguishment of Debt | (1,272) | 0 |
Discount accretion on convertible debt fair value | $ 69 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (598) | $ 2,821 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Gain on debt extinguishment | (1,272) | 0 |
Stock-based compensation | 1,200 | 789 |
Depreciation and amortization | 826 | 839 |
Amortization of acquired intangible assets | 399 | 0 |
Inventory step-up and backlog amortization | 122 | 0 |
Discount accretion on convertible debt fair value | 69 | 0 |
Reversal of uncertain tax positions | 0 | (176) |
Other | 0 | 53 |
Changes in operating assets and liabilities, net of acquisition: | ||
Accounts receivable, net | 189 | (6,490) |
Inventories | 135 | 325 |
Prepaid expenses and other current and long-term assets, net | (2,378) | (4,261) |
Accounts payable | 725 | (673) |
Accrued current and long-term liabilities | (3,828) | 5,123 |
Income taxes payable | (19) | 460 |
Net cash used in operating activities | (4,430) | (1,190) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (150) | (406) |
Net cash used in investing activities | (150) | (406) |
Cash flows from financing activities: | ||
Payments on convertible debt | (2,220) | 0 |
Payments on asset financings | (345) | (43) |
Proceeds from issuance of common stock under employee equity incentive plans | 233 | 1,657 |
Net cash provided by (used in) financing activities | (2,332) | 1,614 |
Net increase (decrease) in cash and cash equivalents | (6,912) | 18 |
Cash and cash equivalents, beginning of period | 27,523 | 19,622 |
Cash and cash equivalents, end of period | 20,611 | 19,640 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds received | 294 | 122 |
Cash paid during the period for interest | 256 | 3 |
Non-cash investing and financing activities: | ||
Value of debt converted into shares | 2,644 | 0 |
Acquisitions of property and equipment and other assets under extended payment terms | $ 0 | $ 1,955 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018, we had an intellectual property portfolio of 401 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”). Condensed Consolidated Financial Statements The financial information included herein for the three month periods ended March 31, 2018 and 2017 is prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and is unaudited. Such information reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the Company's condensed consolidated financial statements for these interim periods. The financial information as of December 31, 2017 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 14, 2018, and should be read in conjunction with such consolidated financial statements. The results of operations for the three month period ended March 31, 2018 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2018. Comprehensive Income (Loss) We report comprehensive income (loss) and its components following guidance set forth by the Financial Accounting Standards Board (the “FASB”), Accounting Standards Codification section 220-10, Comprehensive Income, which establishes standards for the reporting and display of comprehensive income or loss and its components in the financial statements. During the three month periods ended March 31, 2018 and 2017, aside from our net income (loss), there were no other items of comprehensive income or loss and therefore we have not included a statement of comprehensive income (loss) in our interim condensed consolidated financial statements. Revenue On January 1, 2018 we adopted the new requirements of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), under the modified retrospective approach. Therefore, the requirements of ASU 2014-09 have only been applied to existing contracts (those for which the entity has remaining performance obligations) as of, and new contracts after, the date of initial application, or January 1, 2018. The ASU is not applied to contracts that were completed before the effective date. The adoption of this new standard did not result in an adjustment to our consolidated financial statements but we have included additional disclosures in our periodic reports, however, we cannot guarantee that there will be no unforeseen effects of this new standard on our financial statements in the future. We generate all of our revenue from contracts with customers. Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Our principal revenue generating activities consist of the following: Product Sales - We sell integrated circuits products, also known as “chips” or “ICs”, based upon a customer purchase order, which includes a fixed price per unit. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods, and not evaluate whether these activities are promised services to the customer. We generally satisfy our single performance obligation upon shipment of the goods to the customer and recognize revenue at a point in time upon shipment of the underlying product. Our shipments are subject to limited return rights subject to our limited warranty for our products sold. In addition, we may provide other credits to certain customers pursuant to price protection and stock rotation rights, all of which are considered variable consideration when estimating the amount of revenue to recognize. We use the “most likely amount” method to determine the amount of consideration to which we are entitled. Our estimate of variable consideration is reassessed at the end of each reporting period based on changes in facts and circumstances. Historically, returns and credits have been not been material. Engineering Services - We enter into contracts for professional engineering services that include software development and customization. We identify each performance obligation in our engineering services agreements (“ESAs”) at contract inception. The ESA generally includes project deliverables specified by the customer. The performance obligations in the ESA are generally combined into one deliverable, with the pricing for services stated at a fixed amount. Services provided under the ESA generally result in the transfer of control over time. We recognize revenue on ESAs based on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. ESAs could include substantive customer acceptance provisions. In ESAs that include substantive customer acceptance provisions, we recognize revenue upon customer acceptance. Other - From time-to-time, we enter into other revenue generating activities, such as providing technical services to customers through technical service agreements. In each circumstance, we evaluate such arrangements for our performance obligations which generally results in the transfer of control for such services over time. Historically, such arrangements have not been material to our operating results. The following table provides information about disaggregated revenue based on the preceding categories: Three Months Ended March 31, IC sales 14,556 Engineering services and other 736 Total revenues 15,292 For segment information, including revenue by geographic region, see "Note 11: Segment Information". Our contract balances include accounts receivable, deferred revenue and our liability for warranty returns. For information concerning these contract balances, see "Note 3: Balance Sheet Components". Payment terms and conditions for goods and services provided vary by contract; however, payment is generally required within 30 to 60 days of invoicing. As a practical expedient, we do not adjust the amount of consideration for this financing component as the period between the transfer of goods or services and the customer’s payment is, at contract inception, expected to be one year or less. We have not identified any costs incurred associated with obtaining a contract with a customer which would meet the criteria to be capitalized, therefore, these costs are expensed as incurred. We have not disclosed the aggregate amount of the transaction price allocated to unsatisfied performance obligations because all of our revenue contracts have an original expected duration of one year or less. 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 became effective for us on January 1, 2018, with early adoption permitted. The adoption of this update on January 1, 2018 did not 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 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. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2018 | |
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 was included within selling, general and administrative within our consolidated statement of operations for the year ended December 31, 2017. The purchase price was 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 the purchase price was based upon various estimates and assumptions. Below are the significant valuations that were performed associated with the acquisition: • We performed a valuation of the convertible debt. We assigned $4,762 of the purchase price to convertible debt, consisting of the contractual amount of $6,068 offset by a debt discount of $1,306 , and $1,723 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 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 will recognize this within cost of goods sold as the inventory is sold which we expect to be over a period of approximately 12 months. We 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 was assigned to Pixelworks, Inc., our sole reporting unit and is no t deductible for tax purposes. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | BALANCE SHEET COMPONENTS Accounts Receivable, Net Accounts receivable are contract assets that arise from the performance of our performance obligation pursuant to our contracts with our customers and represent our unconditional right to payment for the satisfaction of our performance obligations. They are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments. Accounts receivable consists of the following: March 31, December 31, Accounts receivable, gross $ 4,496 $ 4,687 Less: allowance for doubtful accounts (45 ) (47 ) Accounts receivable, net $ 4,451 $ 4,640 The following is the change in our allowance for doubtful accounts: Three Months Ended March 31, 2018 2017 Balance at beginning of period $ 47 $ 32 Additions charged (reductions credited) (2 ) 66 Balance at end of period $ 45 $ 98 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). Inventory acquired as part of the Acquisition was recorded at fair value. Inventories consist of the following: March 31, December 31, Finished goods $ 1,557 $ 1,115 Work-in-process 1,032 1,731 Inventories $ 2,589 $ 2,846 Property and Equipment, Net Property and equipment consists of the following: March 31, December 31, Gross carrying amount $ 24,164 $ 23,072 Less: accumulated depreciation and amortization (18,293 ) (17,467 ) Property and equipment, net $ 5,871 $ 5,605 Acquired Intangible Assets, Net In connection with the Acquisition, we recorded certain identifiable intangible assets. See "Note 2: Acquisition” for additional information. Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following: March 31, December 31, Developed technology $ 5,050 $ 5,050 Customer relationships 1,270 1,270 Backlog and tradename 410 410 6,730 6,730 Less: accumulated amortization (1,273 ) (874 ) Acquired intangible assets, net $ 5,457 $ 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 $399 for the three months ended March 31, 2018, with $298 included in cost of revenue and $101 included in selling, general and administrative in the condensed consolidated statement of operations. As of March 31, 2018, future estimated amortization expense is as follows: Nine months ending December 31: 2018 $ 1,248 Years ending December 31: 2019 1,505 2020 1,497 2021 1,117 2022 90 $ 5,457 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. There were no such triggering events requiring an impairment assessment of other intangible assets during the three months ended March 31, 2018. Goodwill Goodwill resulted from our acquisition of ViXS on August 2, 2017, whereby we recorded goodwill of $18,407 . See Note 2: “Acquisition” for information concerning the acquisition. Goodwill is not amortized; however, we review goodwill for impairment annually and 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, a significant adverse change in our business climate and a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continued losses and adverse changes in legal factors, regulation or business environment. There were no such triggering events requiring a goodwill impairment assessment during the three months ended March 31, 2018. We perform our annual impairment assessment for goodwill on November 30 of each year. Accrued Liabilities and Current Portion of Long-Term Liabilities Accrued liabilities and current portion of long-term liabilities consist of the following: March 31, December 31, Accrued payroll and related liabilities $ 2,915 $ 5,400 Accrued interest payable 2,781 2,770 Accrued royalties 2,623 2,610 Current portion of accrued liabilities for asset financings 1,596 1,701 Deferred revenue 342 418 Accrued costs related to restructuring 41 352 Liability for warranty returns 15 17 Other 2,261 3,119 Accrued liabilities and current portion of long-term liabilities $ 12,574 $ 16,387 Deferred revenues are contract liabilities that arise when cash payments are received or due in advance of the satisfaction of our performance obligation. Any increase in deferred revenues is driven by cash payments received or due in advance of satisfying our performance obligation pursuant to the contract with the customer. Any decrease in deferred revenues is due to the recognition of revenue related to satisfying our performance obligation. The changes in deferred revenue and the liability for warranty returns are as follows: Three Months Ended March 31, 2018 2017 Deferred revenue: Balance at beginning of period $ 418 $ — Revenue recognized (346 ) — Revenue deferred 270 — Balance at end of period $ 342 $ — Liability for warranty returns: Balance at beginning of period $ 17 $ 28 Provision 2 5 Charge-offs (4 ) (2 ) Balance at end of period $ 15 $ 31 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 us on or before the fifth business day after the applicable fiscal month or quarter end. Due to their repayment terms, non-formula advances do not provide us with usable liquidity. The Revolving Loan Agreement, as amended, contains customary affirmative and negative covenants as well as customary events of default. The occurrence of an event of default could result in the acceleration of our obligations under the Revolving Loan Agreement, as amended, and an increase to the applicable interest rate, and would permit the Bank to exercise remedies with respect to its security interest. As of March 31, 2018, we were in compliance with all of the terms of the Revolving Loan Agreement, as amended. As of March 31, 2018 and December 31, 2017, we had no outstanding borrowings under the Revolving Line. |
Convertible Debt
Convertible Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Debt | CONVERTIBLE DEBT As part of the Acquisition, we assumed secured convertible debt and 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 three months ended March 31, 2018. • 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 and CAD $7.03 per share for the convertible notes due January 2020. • Redemption - 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 three months ended March 31, 2018, interest expense consisted of $66 related to the contractual rate of interest and $69 related to accretion of the discount. During the three months ended March 31, 2018, we recorded net foreign currency losses of approximately $(15) in other expense. 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. Subsequently, certain holders of the convertible debt elected to convert their convertible debt into shares of common stock of Pixelworks pursuant to the terms of the convertible debt. This resulted in the issuance of 435,353 shares of our common stock which was valued at an aggregate of $2,644 . We paid an aggregate of CAD $2,875 (equivalent to $2,220 USD) to redeem the convertible debt of those holders who did not elect to convert their convertible debt. The extinguishment of the debt during the first quarter of 2018 resulted in a gain of $1,272 which is recorded in interest income (expense) and other, net within our condensed consolidated statement of operations. As of March 31, 2018, the convertible debt was no longer outstanding. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
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 and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017: Level 1 Level 2 Level 3 Total As of March 31, 2018: Assets: Money market funds $ 17,867 $ — $ — $ 17,867 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 We primarily use the market approach to determine the fair value of our financial assets. The fair value of our current assets and liabilities, including accounts receivable and accounts payable approximates the carrying value due to the short-term nature of these balances. We have currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with U.S. GAAP. 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 on our condensed consolidated balance sheet. Convertible debt was recorded at fair value in our condensed consolidated balance sheet on the date of the Acquisition, however fair value adjustments are not required after the Acquisition date. |
Restructurings
Restructurings | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructurings | 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. Total restructuring expense included in our statement of operations for the three month periods ended March 31, 2018 and 2017 is comprised of the following: Three Months Ended March 31, 2018 2017 Operating expenses — restructuring: Employee severance and benefits $ 19 $ — Total restructuring expense $ 19 $ — The following is a rollforward of the accrued liabilities related to restructuring for the three month period ended March 31, 2018: Balance as of December 31, 2017 Expensed Payments Balance as of March 31, 2018 Employee severance and benefits $ 352 $ 19 $ (330 ) $ 41 Accrued costs related to restructuring $ 352 $ 19 $ (330 ) $ 41 On April 27, 2018, we committed to a restructuring plan to make the operation of the Company more efficient and which would result in an approximately 5% reduction in workforce, primarily in the areas of development, marketing and administration. |
Research and Development
Research and Development | 3 Months Ended |
Mar. 31, 2018 | |
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 (the "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 offsets to research and development expense of $2,000 and $414 during the first quarter of 2018 and the first quarter of 2017, respectively. |
Interest Income (Expense) and O
Interest Income (Expense) and Other, Net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Interest Income (Expense) and Other, Net | INTEREST INCOME (EXPENSE) AND OTHER, NET Interest income (expense) and other, consists of the following: Three Months Ended March 31, 2018 2017 Gain on debt extinguishment $ 1,272 $ — Interest expense 1 (288 ) (108 ) Discount accretion on convertible debt fair value (69 ) — Interest income 57 15 Total interest income (expense) and other, net $ 972 $ (93 ) 1 Increase in the three months ended March 31, 2018 compared to the three months ended March 31, 2017 is 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 | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Incomes Taxes | INCOME TAXES The provision for income taxes during the 2018 and 2017 periods is primarily comprised of current and deferred tax expense in profitable cost-plus foreign jurisdictions, accruals for tax contingencies in foreign jurisdictions and benefits for the reversal of previously recorded foreign tax contingencies due to the expiration of the applicable statutes of limitation. We recorded a benefit for the reversal of previously recorded foreign tax contingencies of $0 and $176 during the first three months of 2018 and 2017, respectively. As we do not believe that it is more likely than not that we will realize a benefit from our U.S. net deferred tax assets, including our U.S. net operating losses, we continue to provide a full valuation allowance against essentially all of those assets, therefore, we do not incur significant U.S. income tax expense or benefit. We have not recorded a valuation allowance against our other foreign net deferred tax assets, with the exception of Canada as we believe that it is more likely than not that we will realize a benefit from those assets. As of March 31, 2018 and December 31, 2017, the amount of our uncertain tax positions was a liability of $1,776 and $1,735 , respectively, as well as a contra deferred tax asset of $846 and $777 , respectively. A number of years may elapse before an uncertain tax position is resolved by settlement or statute of limitation. Settlement of any particular position could require the use of cash. If the uncertain tax positions we have accrued for are sustained by the taxing authorities in our favor, the reduction of the liability will reduce our effective tax rate. We reasonably expect reductions in the liability for unrecognized tax benefits and interest and penalties of approximately $50 within the next twelve months due to the expiration of statutes of limitation in foreign jurisdictions. We recognize interest and penalties related to uncertain tax positions in income tax expense in our condensed consolidated statements of operations. The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate income tax rate from 35% to 21%, 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. We are applying the guidance in SAB 118 when accounting for the enactment-date effects of the Act. As of March 31, 2018, we have not completed our accounting for all of the tax effects of the Act. We will continue to make and refine our calculations as additional analysis is completed. Our estimates may also be effected as we gain a more thorough understanding of the tax law. These changes could be material to income tax expense. We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. We recorded a provisional amount of $28,973 as of December 31, 2017 related to the remeasurement of certain deferred tax balances. Due to the continued refinement of our transition tax calculation and the effect it may have on the measurement of net operating loss and other carryforwards, we will continue to analyze and refine our calculations related to the measurement of these balances. The Act subjects a U.S. shareholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. We have made sufficient progress in our calculations to reasonably estimate the effect on our estimated annual effective tax rate. Due to net operating loss carryforwards and valuation allowance, this adjustment did not impact our effective tax rate. We will continue to refine our calculations, which may result in changes to this amount. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Net income (loss) $ (598 ) $ 2,821 Weighted average shares outstanding - basic 35,183 29,283 Dilutive effect of employee equity incentive plans — 1,863 Diluted weighted average shares outstanding 35,183 31,146 Net income (loss) per share: Basic $ (0.02 ) $ 0.10 Diluted $ (0.02 ) $ 0.09 The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2018 2017 Employee equity incentive plans 3,423 586 Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have identified a single operating segment: the design and development of integrated circuits for use in electronic display devices. The majority of our assets are located in the United States. Geographic Information Revenue by geographic region, is as follows: Three Months Ended March 31, 2018 2017 Japan $ 13,344 $ 15,194 China 927 276 United States 590 121 Korea 211 787 Taiwan 170 3,869 Europe 50 1,936 Other — 527 $ 15,292 $ 22,710 Significant Customers The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows: Three Months Ended March 31, 2018 2017 Distributors: All distributors 37 % 56 % Distributor A 22 % 27 % End customers: 1 Top five end customers 80 % 68 % End customer A 53 % 35 % End customer B 8 % 14 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. The following account represented 10% or more of total accounts receivable in at least one of the periods presented: March 31, December 31, Account X 51 % 38 % Account Y 22 % 29 % |
Risks and Uncertainties
Risks and Uncertainties | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | RISKS AND UNCERTAINTIES Concentration of Suppliers We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We rely on a limited number of foundries and assembly and test vendors to produce all of our wafers and for completion of finished products. We do not have any long-term agreements with any of these suppliers. In light of these dependencies, it is reasonably possible that failure to perform by one of these suppliers could have a severe impact on our results of operations. Additionally, the concentration of these vendors within Taiwan and the People’s Republic of China increases our risk of supply disruption due to natural disasters, economic instability, political unrest or other regional disturbances. Risk of Technological Change The markets in which we compete, or seek to compete, are subject to rapid technological change, frequent new product introductions, changing customer requirements for new products and features, and evolving industry standards. The introduction of new technologies and the emergence of new industry standards could render our products less desirable or obsolete, which could harm our business. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and accounts receivable. We limit our exposure to credit risk associated with cash equivalent balances by holding our funds in high quality, highly liquid money market accounts. We limit our exposure to credit risk associated with accounts receivable by carefully evaluating creditworthiness before offering terms to customers. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Indemnifications Certain of our agreements include indemnification provisions for claims from third-parties relating to our intellectual property. It is not possible for us to predict the maximum potential amount of future payments or indemnification costs under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. We have not made any payments under these agreements in the past, and as of March 31, 2018, we have not incurred any material liabilities arising from these indemnification obligations. In the future, however, such obligations could materially impact our results of operations. Legal Proceedings We are subject to legal matters that arise from time to time in the ordinary course of our business. Although we currently believe that resolving such matters, individually or in the aggregate, will not have a material adverse effect on our financial position, our results of operations, or our cash flows, these matters are subject to inherent uncertainties and our view of these matters may change in the future. Other Contractual Obligation As part of the Acquisition discussed in "Note 2: 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 March 31, 2018, $440 is included in accrued liabilities and current portion of long-term liabilities in our consolidated balance sheet and $683 is included in long-term liabilities, net of current portion in our consolidated balance sheet. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Statement of Financial Position [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On April 27, 2018, we committed to a restructuring plan to make the operation of the Company more efficient and which would result in an approximately 5% reduction in workforce, primarily in the areas of development, marketing and administration. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The financial information included herein for the three month periods ended March 31, 2018 and 2017 is prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and is unaudited. Such information reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the Company's condensed consolidated financial statements for these interim periods. The financial information as of December 31, 2017 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 14, 2018, and should be read in conjunction with such consolidated financial statements. The results of operations for the three month period ended March 31, 2018 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2018. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) We report comprehensive income (loss) and its components following guidance set forth by the Financial Accounting Standards Board (the “FASB”), Accounting Standards Codification section 220-10, Comprehensive Income, which establishes standards for the reporting and display of comprehensive income or loss and its components in the financial statements. During the three month periods ended March 31, 2018 and 2017, aside from our net income (loss), there were no other items of comprehensive income or loss and therefore we have not included a statement of comprehensive income (loss) in our interim condensed consolidated financial statements. |
Revenue | Revenue On January 1, 2018 we adopted the new requirements of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), under the modified retrospective approach. Therefore, the requirements of ASU 2014-09 have only been applied to existing contracts (those for which the entity has remaining performance obligations) as of, and new contracts after, the date of initial application, or January 1, 2018. The ASU is not applied to contracts that were completed before the effective date. The adoption of this new standard did not result in an adjustment to our consolidated financial statements but we have included additional disclosures in our periodic reports, however, we cannot guarantee that there will be no unforeseen effects of this new standard on our financial statements in the future. We generate all of our revenue from contracts with customers. Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Our principal revenue generating activities consist of the following: Product Sales - We sell integrated circuits products, also known as “chips” or “ICs”, based upon a customer purchase order, which includes a fixed price per unit. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods, and not evaluate whether these activities are promised services to the customer. We generally satisfy our single performance obligation upon shipment of the goods to the customer and recognize revenue at a point in time upon shipment of the underlying product. Our shipments are subject to limited return rights subject to our limited warranty for our products sold. In addition, we may provide other credits to certain customers pursuant to price protection and stock rotation rights, all of which are considered variable consideration when estimating the amount of revenue to recognize. We use the “most likely amount” method to determine the amount of consideration to which we are entitled. Our estimate of variable consideration is reassessed at the end of each reporting period based on changes in facts and circumstances. Historically, returns and credits have been not been material. Engineering Services - We enter into contracts for professional engineering services that include software development and customization. We identify each performance obligation in our engineering services agreements (“ESAs”) at contract inception. The ESA generally includes project deliverables specified by the customer. The performance obligations in the ESA are generally combined into one deliverable, with the pricing for services stated at a fixed amount. Services provided under the ESA generally result in the transfer of control over time. We recognize revenue on ESAs based on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. ESAs could include substantive customer acceptance provisions. In ESAs that include substantive customer acceptance provisions, we recognize revenue upon customer acceptance. Other - From time-to-time, we enter into other revenue generating activities, such as providing technical services to customers through technical service agreements. In each circumstance, we evaluate such arrangements for our performance obligations which generally results in the transfer of control for such services over time. Historically, such arrangements have not been material to our operating results. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017-01 clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. ASU 2017-01 will became effective for us on January 1, 2018, with early adoption permitted. The adoption of this update on January 1, 2018 did not 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 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. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates. |
Receivables, Policy | Accounts receivable are contract assets that arise from the performance of our performance obligation pursuant to our contracts with our customers and represent our unconditional right to payment for the satisfaction of our performance obligations. They are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments. |
Inventory, Policy | Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value). Inventory acquired as part of the Acquisition was recorded at fair value. |
Co-Development Arrangements, Policy | As amounts become due and payable, they are offset against research and development expense on a pro rata basis. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue based on the preceding categories: Three Months Ended March 31, IC sales 14,556 Engineering services and other 736 Total revenues 15,292 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | The purchase price was 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 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | Accounts receivable consists of the following: March 31, December 31, Accounts receivable, gross $ 4,496 $ 4,687 Less: allowance for doubtful accounts (45 ) (47 ) Accounts receivable, net $ 4,451 $ 4,640 |
Allowance for Doubtful Accounts | The following is the change in our allowance for doubtful accounts: Three Months Ended March 31, 2018 2017 Balance at beginning of period $ 47 $ 32 Additions charged (reductions credited) (2 ) 66 Balance at end of period $ 45 $ 98 |
Inventories | Inventories consist of the following: March 31, December 31, Finished goods $ 1,557 $ 1,115 Work-in-process 1,032 1,731 Inventories $ 2,589 $ 2,846 |
Property and Equipment, Net | Property and equipment consists of the following: March 31, December 31, Gross carrying amount $ 24,164 $ 23,072 Less: accumulated depreciation and amortization (18,293 ) (17,467 ) Property and equipment, net $ 5,871 $ 5,605 |
Acquired Intangible Assets, Net | Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following: March 31, December 31, Developed technology $ 5,050 $ 5,050 Customer relationships 1,270 1,270 Backlog and tradename 410 410 6,730 6,730 Less: accumulated amortization (1,273 ) (874 ) Acquired intangible assets, net $ 5,457 $ 5,856 |
Future Amortization Expense | As of March 31, 2018, future estimated amortization expense is as follows: Nine months ending December 31: 2018 $ 1,248 Years ending December 31: 2019 1,505 2020 1,497 2021 1,117 2022 90 $ 5,457 |
Accrued Liabilities and Current Portion of Long-Term Liabilities | Accrued liabilities and current portion of long-term liabilities consist of the following: March 31, December 31, Accrued payroll and related liabilities $ 2,915 $ 5,400 Accrued interest payable 2,781 2,770 Accrued royalties 2,623 2,610 Current portion of accrued liabilities for asset financings 1,596 1,701 Deferred revenue 342 418 Accrued costs related to restructuring 41 352 Liability for warranty returns 15 17 Other 2,261 3,119 Accrued liabilities and current portion of long-term liabilities $ 12,574 $ 16,387 |
Deferred Revenue & Liability for Warranty Returns | The changes in deferred revenue and the liability for warranty returns are as follows: Three Months Ended March 31, 2018 2017 Deferred revenue: Balance at beginning of period $ 418 $ — Revenue recognized (346 ) — Revenue deferred 270 — Balance at end of period $ 342 $ — Liability for warranty returns: Balance at beginning of period $ 17 $ 28 Provision 2 5 Charge-offs (4 ) (2 ) Balance at end of period $ 15 $ 31 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about our assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017: Level 1 Level 2 Level 3 Total As of March 31, 2018: Assets: Money market funds $ 17,867 $ — $ — $ 17,867 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 |
Restructurings (Tables)
Restructurings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expense by Components | Total restructuring expense included in our statement of operations for the three month periods ended March 31, 2018 and 2017 is comprised of the following: Three Months Ended March 31, 2018 2017 Operating expenses — restructuring: Employee severance and benefits $ 19 $ — Total restructuring expense $ 19 $ — |
Schedule of Accrued Restructuring Liabilities | The following is a rollforward of the accrued liabilities related to restructuring for the three month period ended March 31, 2018: Balance as of December 31, 2017 Expensed Payments Balance as of March 31, 2018 Employee severance and benefits $ 352 $ 19 $ (330 ) $ 41 Accrued costs related to restructuring $ 352 $ 19 $ (330 ) $ 41 |
Interest Income (Expense) and26
Interest Income (Expense) and Other, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Interest Income (Expense) and Other, net | Interest income (expense) and other, consists of the following: Three Months Ended March 31, 2018 2017 Gain on debt extinguishment $ 1,272 $ — Interest expense 1 (288 ) (108 ) Discount accretion on convertible debt fair value (69 ) — Interest income 57 15 Total interest income (expense) and other, net $ 972 $ (93 ) 1 Increase in the three months ended March 31, 2018 compared to the three months ended March 31, 2017 is 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Net income (loss) $ (598 ) $ 2,821 Weighted average shares outstanding - basic 35,183 29,283 Dilutive effect of employee equity incentive plans — 1,863 Diluted weighted average shares outstanding 35,183 31,146 Net income (loss) per share: Basic $ (0.02 ) $ 0.10 Diluted $ (0.02 ) $ 0.09 |
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): Three Months Ended March 31, 2018 2017 Employee equity incentive plans 3,423 586 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | Revenue by geographic region, is as follows: Three Months Ended March 31, 2018 2017 Japan $ 13,344 $ 15,194 China 927 276 United States 590 121 Korea 211 787 Taiwan 170 3,869 Europe 50 1,936 Other — 527 $ 15,292 $ 22,710 |
Schedule of Revenue from Significant Customers | The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows: Three Months Ended March 31, 2018 2017 Distributors: All distributors 37 % 56 % Distributor A 22 % 27 % End customers: 1 Top five end customers 80 % 68 % End customer A 53 % 35 % End customer B 8 % 14 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. |
Schedule of Accounts Receivable Percentage from Significant Customers | The following account represented 10% or more of total accounts receivable in at least one of the periods presented: March 31, December 31, Account X 51 % 38 % Account Y 22 % 29 % |
Basis of Presentation - Disaggr
Basis of Presentation - Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 15,292 |
IC sales | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 14,556 |
Engineering services and other | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 736 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2018patent |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of patents held | 401 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) | Aug. 02, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Long-term debt | $ 0 | $ 6,069,000 | |
Convertible Debt | |||
Business Acquisition [Line Items] | |||
Long-term debt | $ 0 | ||
ViXS Systems, Inc. | |||
Business Acquisition [Line Items] | |||
Percent of outstanding shares acquired | 100.00% | ||
Shares issued per acquired share (in shares) | 0.04836 | ||
Purchase price | $ 16,975,000 | ||
Integration related costs | 1,115,000 | ||
Severance pay | $ 800,000 | ||
Period of severance payments | 24 months | ||
Cost of accelerated vesting of restricted stock units | $ 315,000 | ||
Inventory | 3,175,000 | ||
Deferred tax assets | 62,992,000 | ||
Valuation allowance | 62,972,000 | ||
Goodwill expected tax deductible amount | 0 | ||
ViXS Systems, Inc. | Fair Value Adjustment to Inventory | |||
Business Acquisition [Line Items] | |||
Inventory | 2,191,000 | ||
ViXS Systems, Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 5,050,000 | ||
Weighted average useful life | 5 years | ||
ViXS Systems, Inc. | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 1,270,000 | ||
Weighted average useful life | 3 years | ||
ViXS Systems, Inc. | Backlog and tradename | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 410,000 | ||
Weighted average useful life | 2 years | ||
ViXS Systems, Inc. | Convertible Debt | |||
Business Acquisition [Line Items] | |||
Long-term debt | $ 4,762,000 | ||
Principal amount | 6,068,000 | ||
Unamortized discount | 1,306,000 | ||
Debt conversion feature | $ 1,723,000 | ||
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 | $ 659,000 | ||
Stock issued due to acquisition (in shares) | 202,043 | ||
ViXS Systems, Inc. | Common Stock | |||
Business Acquisition [Line Items] | |||
Value of shares issued | $ 16,316,000 | ||
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets acquired: | |||
Goodwill | $ 18,407 | $ 18,407 | |
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) | ||
Revolving bank loan | (4,046) | ||
Convertible debt | (6,485) | ||
Other noncurrent liabilities | (1,633) | ||
Less net liabilities assumed | $ (1,432) |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts Receivable, Net [Abstract] | ||||
Accounts receivable, gross | $ 4,496 | $ 4,687 | ||
Less: allowance for doubtful accounts | (45) | (47) | $ (98) | $ (32) |
Accounts receivable, net | $ 4,451 | $ 4,640 |
Balance Sheet Components - Allo
Balance Sheet Components - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of period | $ 47 | $ 32 |
Additions charged (reductions credited) | (2) | 66 |
Balance at end of period | $ 45 | $ 98 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 1,557 | $ 1,115 |
Work-in-process | 1,032 | 1,731 |
Inventories | $ 2,589 | $ 2,846 |
Balance Sheet Components - Prop
Balance Sheet Components - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Gross carrying amount | $ 24,164 | $ 23,072 |
Less: accumulated depreciation and amortization | (18,293) | (17,467) |
Property and equipment, net | $ 5,871 | $ 5,605 |
Balance Sheet Components - Acqu
Balance Sheet Components - Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, gross | $ 6,730 | $ 6,730 | |
Less: accumulated amortization | (1,273) | (874) | |
Acquired intangible assets, net | 5,457 | 5,856 | |
Amortization of acquired intangible assets | 399 | $ 0 | |
Cost of revenue | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | 298 | ||
Selling, general and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | 101 | $ 0 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangible assets, gross | $ 5,050 | 5,050 | |
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 | 1,270 | |
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 | $ 410 | |
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 - Futu
Balance Sheet Components - Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
2,018 | $ 1,248 | |
2,019 | 1,505 | |
2,020 | 1,497 | |
2,021 | 1,117 | |
2,022 | 90 | |
Acquired intangible assets, net | $ 5,457 | $ 5,856 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Aug. 02, 2017 |
Goodwill [Line Items] | |||
Goodwill | $ 18,407 | $ 18,407 | |
ViXS Systems, Inc. | |||
Goodwill [Line Items] | |||
Goodwill | $ 18,407 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities and Current Portion of Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued payroll and related liabilities | $ 2,915 | $ 5,400 | ||
Accrued interest payable | 2,781 | 2,770 | ||
Accrued royalties | 2,623 | 2,610 | ||
Current portion of accrued liabilities for asset financings | 1,596 | 1,701 | ||
Deferred revenue | 342 | 418 | $ 0 | $ 0 |
Accrued costs related to restructuring | 41 | 352 | ||
Liability for warranty returns | 15 | 17 | $ 31 | $ 28 |
Other | 2,261 | 3,119 | ||
Accrued liabilities and current portion of long-term liabilities | $ 12,574 | $ 16,387 |
Balance Sheet Components - Defe
Balance Sheet Components - Deferred Revenue & Liability for Warranty Returns (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Deferred Revenue [Abstract] | ||
Balance at beginning of period | $ 418 | $ 0 |
Revenue recognized | (346) | 0 |
Revenue deferred | 270 | 0 |
Balance at end of period | 342 | 0 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | 17 | 28 |
Provision | 2 | 5 |
Charge-offs | (4) | (2) |
Balance at end of period | $ 15 | $ 31 |
Balance Sheet Components - Shor
Balance Sheet Components - Short-Term Line of Credit (Narrative) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 21, 2017 |
Balance Sheet Related Disclosures [Abstract] | |||
Maximum borrowing capacity | $ 10,000,000 | ||
Line of credit facility, component of calculation for maximum borrowing amount under formula advances | $ 1,000,000 | ||
Line of credit facility maximum borrowing capacity limited by eligible AR | 80.00% | ||
Line of credit facility, maximum borrowing capacity under non-formula advances | $ 10,000,000 | ||
Short term line of credit | $ 0 | $ 0 |
Convertible Debt - Additional I
Convertible Debt - Additional Information (Details) $ / shares in Units, $ in Thousands, $ in Thousands | Jan. 12, 2018USD ($)shares | Jan. 12, 2018CAD ($)shares | Aug. 02, 2017USD ($)shares | Mar. 31, 2018$ / shares | Mar. 31, 2018USD ($)day | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 2,220 | $ 0 | ||||||
Discount accretion on convertible debt fair value | 69 | 0 | ||||||
Value of debt converted into shares | 2,644 | 0 | ||||||
Gain on debt extinguishment | $ 1,272 | $ 0 | ||||||
Long-term debt | $ 6,069 | $ 0 | ||||||
Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Converted instrument, shares issued | shares | 435,353 | 435,353 | ||||||
Value of debt converted into shares | $ 2,644 | |||||||
Repayments of convertible debt | $ 2,220 | $ 2,875 | ||||||
Gain on debt extinguishment | $ 1,272 | |||||||
Long-term debt | $ 0 | |||||||
Convertible Debt | 10% convertible notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 1,000 | |||||||
Stated interest rate | 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% | |||||||
Interest expense, debt | $ 66 | |||||||
Discount accretion on convertible debt fair value | 69 | |||||||
Foreign currency transaction gain (loss) | $ (15) | |||||||
Convertible Debt | 10% Convertible Notes, Due September 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 2,102 | |||||||
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 | |||||||
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 | |||||||
ViXS Systems, Inc. | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 6,068 | |||||||
Long-term debt | $ 4,762 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | $ 17,867 | $ 23,402 |
Convertible debt - including conversion feature | 5,300 | |
Conversion feature - convertible debt | 2,350 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | 17,867 | 23,402 |
Convertible debt - including conversion feature | 0 | |
Conversion feature - convertible debt | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
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 and Nonrecurring Basis | ||
Money market funds | $ 0 | 0 |
Convertible debt - including conversion feature | 0 | |
Conversion feature - convertible debt | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Convertible Debt | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Volatility rate | 60.00% |
Credit spread | 13.13% |
Risk free interest rate | 1.87% |
Restructurings (Details)
Restructurings (Details) | 1 Months Ended |
Sep. 30, 2017 | |
2017 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Approximate reduction in workforce from restructuring plan (percent) | 15.00% |
Restructurings - Components of
Restructurings - Components of Restructuring Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expense | $ 19 | $ 0 |
Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expense | 19 | 0 |
Restructuring Plan | Operating expenses — restructuring: | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and benefits | $ 19 | $ 0 |
Restructurings - Restructuring
Restructurings - Restructuring Reserve Rollforward (Details) - Restructuring Plan $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2017 | $ 352 |
Expensed | 19 |
Payments | (330) |
Balance as of March 31, 2018 | 41 |
Employee severance and benefits | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2017 | 352 |
Expensed | 19 |
Payments | (330) |
Balance as of March 31, 2018 | $ 41 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Research and Development [Abstract] | ||
Amount receivable as of date of development agreement | $ 4,000 | |
Amounts payable upon completion of milestones | 2,000 | |
Research and development benefit recognized | $ 2,000 | $ 414 |
Interest Income (Expense) and50
Interest Income (Expense) and Other, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Other Income and Expenses [Abstract] | |||
Gain on debt extinguishment | $ 1,272 | $ 0 | |
Interest expense | [1] | (288) | (108) |
Discount accretion on convertible debt fair value | (69) | 0 | |
Interest income | 57 | 15 | |
Total interest income (expense) and other, net | [2] | $ 972 | $ (93) |
[1] | Increase in the three months ended March 31, 2018 compared to the three months ended March 31, 2017 is 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. | ||
[2] | Includes: Discount accretion on convertible debt fair value69 —Gain on debt extinguishment(1,272) — |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Reversal of uncertain tax positions | $ 0 | $ 176 | |
Liability for uncertain tax positions | 1,776 | $ 1,735 | |
Reduction to deferred tax assets | 846 | 777 | |
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations, including interest and penalties | $ 50 | ||
Deferred tax expense, re-measurement of certain deferred tax assets and liabilities | $ 28,973 |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (598) | $ 2,821 |
Weighted average shares outstanding, basic | 35,183 | 29,283 |
Dilutive effect of employee equity incentive plans | 0 | 1,863 |
Diluted weighted average shares outstanding | 35,183 | 31,146 |
Income (loss) per share, basic | $ (0.02) | $ 0.10 |
Income (loss) per share, diluted | $ (0.02) | $ 0.09 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Effect on Weighted Average Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee equity incentive plans | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,423 | 586 |
Segment Information - Geographi
Segment Information - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, net | $ 15,292 | $ 22,710 |
Japan | ||
Revenue, net | 13,344 | 15,194 |
China | ||
Revenue, net | 927 | 276 |
United States | ||
Revenue, net | 590 | 121 |
Korea | ||
Revenue, net | 211 | 787 |
Taiwan | ||
Revenue, net | 170 | 3,869 |
Europe | ||
Revenue, net | 50 | 1,936 |
Other | ||
Revenue, net | $ 0 | $ 527 |
Segment Information - Major Cus
Segment Information - Major Customers (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting Information | |
Number of customers included in five largest customer concentration disclosure | 5 |
Revenue, net | Minimum | |
Segment Reporting Information | |
Concentration risk benchmark percentage | 10.00% |
Accounts Receivable | Minimum | |
Segment Reporting Information | |
Concentration risk benchmark percentage | 10.00% |
Segment Information - Revenue b
Segment Information - Revenue by Major Customer (Details) - Revenue, net | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
All distributors | |||
Revenue, Major Customer | |||
Percentage of revenue | 37.00% | 56.00% | |
Distributor A | |||
Revenue, Major Customer | |||
Percentage of revenue | 22.00% | 27.00% | |
Top five end customers | |||
Revenue, Major Customer | |||
Percentage of revenue | [1] | 80.00% | 68.00% |
End customer A | |||
Revenue, Major Customer | |||
Percentage of revenue | [1] | 53.00% | 35.00% |
End customer B | |||
Revenue, Major Customer | |||
Percentage of revenue | [1] | 8.00% | 14.00% |
[1] | End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. |
Segment Information - Accounts
Segment Information - Accounts Receivable by Major Customer (Details) - Accounts Receivable | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Account X | ||
Segment Reporting Information | ||
Percentage of accounts receivable | 51.00% | 38.00% |
Account Y | ||
Segment Reporting Information | ||
Percentage of accounts receivable | 22.00% | 29.00% |