Pixelworks (PXLW) 10-Q 12 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 02, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	000-30269
Entity Registrant Name	PIXELWORKS, INC
Entity Central Index Key	0001040161
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Incorporation, State or Country Code	OR
Entity Tax Identification Number	91-1761992
Entity Address, Address Line One	226 Airport Parkway, Suite 595
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95110
City Area Code	408
Local Phone Number	200-9200
Title of 12(b) Security	Common Stock
Trading Symbol	PXLW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,931,783

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 16,746	$ 17,944
Short-term marketable securities	6,575	6,069
Accounts receivable, net	7,353	6,982
Inventories	2,842	2,954
Prepaid expenses and other current assets	2,303	1,494
Total current assets	35,819	35,443
Property and equipment, net	4,817	6,151
Operating lease right of use assets	5,173	0
Other assets, net	1,606	1,132
Acquired intangible assets, net	3,452	4,208
Goodwill	18,407	18,407
Total assets	69,274	65,341
Current liabilities:
Accounts payable	2,183	2,116
Accrued liabilities and current portion of long-term liabilities	9,158	10,256
Current portion of income taxes payable	578	263
Total current liabilities	11,919	12,635
Long-term liabilities, net of current portion	674	1,017
Operating lease liabilities, net of current portion	3,595	0
Income taxes payable, net of current portion	2,335	2,299
Total liabilities	18,523	15,951
Commitments and contingencies (Note 14)
Shareholders’ equity:
Preferred stock	0	0
Common stock	432,572	428,903
Accumulated other comprehensive income	22	15
Accumulated deficit	(381,843)	(379,528)
Total shareholders’ equity	50,751	49,390
Total liabilities and shareholders’ equity	$ 69,274	$ 65,341

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019		Jun. 30, 2018		Jun. 30, 2019		Jun. 30, 2018
Income Statement [Abstract]
Revenue, net	$ 18,027		$ 19,251		$ 34,675		$ 34,543
Cost of revenue	8,651	[1]	9,717	[1]	16,827	[2]	17,207	[2]
Gross profit	9,376		9,534		17,848		17,336
Operating expenses:
Research and development	6,364	[2]	6,423	[2]	12,836	[3]	10,886	[3]
Selling, general and administrative	4,935	[3]	4,959	[3]	10,395	[4]	9,573	[4]
Restructuring	398		602		398		621
Total operating expenses	11,697		11,984		23,629		21,080
Loss from operations	(2,321)		(2,450)		(5,781)		(3,744)
Gain on sale of patents	0		0		3,905		0
Interest income and other, net	104	[4]	40	[4]	200		1,177
Total other income, net	104		40		4,105		1,177
Loss before income taxes	(2,217)		(2,410)		(1,676)		(2,567)
Provision for income taxes	231		32		639		308
Net loss	$ (2,448)		$ (2,442)		$ (2,315)		$ (2,875)
Net loss per share - basic and diluted	$ (0.06)		$ (0.07)		$ (0.06)		$ (0.08)
Weighted average shares outstanding - basic and diluted	37,688		35,704		37,469		35,445
[1]	Includes: Inventory step-up and backlog amortization— 239 12 361Amortization of acquired intangible assets298 298 596 596Stock-based compensation83 78 178 144
[2]	Includes: Stock-based compensation703 627 1,364 1,222
[3]	Includes: Stock-based compensation879 682 1,812 1,221Amortization of acquired intangible assets76 101 160 202
[4]	Includes: Discount accretion on convertible debt fair value— — — 69Gain on debt extinguishment— — — (1,272)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Amortization of acquired intangible assets			$ 756	$ 798
Stock-based compensation	$ (1,665)	$ (1,387)
Inventory step-up and backlog amortization			12	361
Gain on debt extinguishment	0	0	0	1,272
Discount accretion on convertible debt fair value	0	0	0	69
Cost of revenue
Stock-based compensation	83	78	178	144
Inventory step-up and backlog amortization	0	239	12	361
Cost of revenue | Acquired intangible assets
Amortization of acquired intangible assets	298	298	596	596
Research and development
Stock-based compensation	703	627	1,364	1,222
Selling, general and administrative
Amortization of acquired intangible assets	76	101	160	202
Stock-based compensation	879	682	1,812	1,221
Interest income and other, net
Gain on debt extinguishment	0	0	0	(1,272)
Discount accretion on convertible debt fair value	$ 0	$ 0	$ 0	$ 69

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Other Comprehensive Income [Abstract]
Net loss	$ (2,448)	$ (2,442)	$ (2,315)	$ (2,875)
Other comprehensive loss:
Unrealized gain (loss) on available-for-sale securities	3	(2)	7	(2)
Total comprehensive loss	$ (2,445)	$ (2,444)	$ (2,308)	$ (2,877)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (2,315)	$ (2,875)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on sale of patents	(3,905)	0
Stock-based compensation	3,354	2,587
Depreciation and amortization	1,800	1,749
Amortization of acquired intangible assets	756	798
Accretion on short-term marketable securities	(52)	(2)
Reversal of uncertain tax positions	(31)	(19)
Inventory step-up and backlog amortization	12	361
Deferred income tax benefit	0	(63)
Gain on debt extinguishment	0	(1,272)
Discount accretion on convertible debt fair value	0	69
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable, net	(371)	(1,949)
Inventories	100	(405)
Prepaid expenses and other current and long-term assets, net	207	(703)
Accounts payable	37	1,492
Accrued current and long-term liabilities	(2,230)	(3,174)
Income taxes payable	382	(12)
Net cash used in operating activities	(2,256)	(3,418)
Cash flows from investing activities:
Purchases of short-term marketable securities	(6,045)	(2,725)
Proceeds from maturities of short-term marketable securities	5,600	0
Proceeds from sale of patents	4,250	0
Purchases of property and equipment	(1,859)	(1,326)
Purchases of licensed technology	(521)	0
Payment associated with sale of patents	(345)	0
Net cash provided by (used in) investing activities	1,080	(4,051)
Cash flows from financing activities:
Payments on asset financings	(337)	(636)
Proceeds from issuance of common stock under employee equity incentive plans	315	245
Payments on convertible debt	0	(2,220)
Net cash used in financing activities	(22)	(2,611)
Net decrease in cash and cash equivalents	(1,198)	(10,080)
Cash and cash equivalents, beginning of period	17,944	27,523
Cash and cash equivalents, end of period	16,746	17,443
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds received	291	383
Cash paid during the period for interest	66	307
Non-cash investing and financing activities:
Value of debt converted into shares	$ 0	$ 2,644

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Income	Accumulated Deficit
Beginning Balance (in shares) at Dec. 31, 2017		34,651,087
Beginning Balance at Dec. 31, 2017	$ 43,296	$ 418,891	$ 20	$ (375,615)
Stock issued under employee equity incentive plans (in shares)		495,686
Stock issued under employee equity incentive plans	233	$ 233
Stock-based compensation expense	1,200	$ 1,200
Debt conversion, shares		435,353
Debt conversion, value	2,644	$ 2,644
Net loss	(433)			(433)
Ending Balance (in shares) at Mar. 31, 2018		35,582,126
Ending Balance at Mar. 31, 2018	46,940	$ 422,968	20	(376,048)
Beginning Balance (in shares) at Dec. 31, 2017		34,651,087
Beginning Balance at Dec. 31, 2017	43,296	$ 418,891	20	(375,615)
Net loss	(2,875)
Ending Balance (in shares) at Jun. 30, 2018		35,822,715
Ending Balance at Jun. 30, 2018	45,895	$ 424,367	18	(378,490)
Beginning Balance (in shares) at Mar. 31, 2018		35,582,126
Beginning Balance at Mar. 31, 2018	46,940	$ 422,968	20	(376,048)
Stock issued under employee equity incentive plans (in shares)		240,589
Stock issued under employee equity incentive plans	12	$ 12
Stock-based compensation expense	1,387	$ 1,387
Unrealized gain (loss) on available for sale securities	(2)		(2)
Net loss	(2,442)			(2,442)
Ending Balance (in shares) at Jun. 30, 2018		35,822,715
Ending Balance at Jun. 30, 2018	45,895	$ 424,367	18	(378,490)
Beginning Balance (in shares) at Dec. 31, 2018		36,937,458
Beginning Balance at Dec. 31, 2018	49,390	$ 428,903	15	(379,528)
Stock issued under employee equity incentive plans (in shares)		605,911
Stock issued under employee equity incentive plans	315	$ 315
Stock-based compensation expense	1,689	$ 1,689
Unrealized gain (loss) on available for sale securities	4		4
Net loss	133			133
Ending Balance (in shares) at Mar. 31, 2019		37,543,369
Ending Balance at Mar. 31, 2019	51,531	$ 430,907	19	(379,395)
Beginning Balance (in shares) at Dec. 31, 2018		36,937,458
Beginning Balance at Dec. 31, 2018	49,390	$ 428,903	15	(379,528)
Net loss	(2,315)
Ending Balance (in shares) at Jun. 30, 2019		37,833,791
Ending Balance at Jun. 30, 2019	50,751	$ 432,572	22	(381,843)
Beginning Balance (in shares) at Mar. 31, 2019		37,543,369
Beginning Balance at Mar. 31, 2019	51,531	$ 430,907	19	(379,395)
Stock issued under employee equity incentive plans (in shares)		290,422
Stock-based compensation expense	1,665	$ 1,665
Unrealized gain (loss) on available for sale securities	3		3
Net loss	(2,448)			(2,448)
Ending Balance (in shares) at Jun. 30, 2019		37,833,791
Ending Balance at Jun. 30, 2019	$ 50,751	$ 432,572	$ 22	$ (381,843)

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019, we had an intellectual property portfolio of 349 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 and six month periods ended June 30, 2019 and 2018 is prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and is unaudited. Such information reflects all adjustments, consisting of only normal recurring adjustments, except as discussed below, 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, 2018 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2018, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 13, 2019 and as amended on August 9, 2019, and should be read in conjunction with such consolidated financial statements. The results of operations for the three and six month periods ended June 30, 2019 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2019. Immaterial Error Correction During the second quarter of 2019, the Company determined that the statute of limitations had previously expired related to a portion of a liability that had been accrued in prior periods. Management evaluated the materiality of the error, both quantitatively and qualitatively, and concluded that it was not material to the financial statements of any period presented. The Company has revised beginning retained earnings and corrected the error in the accompanying prior period financial information in these condensed consolidated financial statements. The following table sets forth the effect this immaterial error correction had on the Company’s unaudited condensed consolidated statements of operations for the three and six month periods ended June 30, 2018: Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Previously Reported Correction Revised Previously Reported Correction Revised Interest income (expense) and other, net $ (131 ) $ 171 $ 40 $ 841 $ 336 $ 1,177 Total other income (expense), net (131 ) 171 40 841 336 1,177 Income (loss) before income taxes (2,581 ) 171 (2,410 ) (2,903 ) 336 (2,567 ) Net loss (2,613 ) 171 (2,442 ) (3,211 ) 336 (2,875 ) Net loss per share - basic and diluted $ (0.07 ) $ — $ (0.07 ) $ (0.09 ) $ 0.01 $ (0.08 ) The following table sets forth the effect this immaterial error correction had on the Company's unaudited condensed consolidated balance sheet as of December 31, 2018: December 31, 2018 Previously Reported Correction Revised Accrued liabilities and current portion of long-term liabilities $ 14,823 $ (4,567 ) $ 10,256 Total current liabilities 17,202 (4,567 ) 12,635 Total liabilities 20,518 (4,567 ) 15,951 Accumulated deficit (384,095 ) 4,567 (379,528 ) Total shareholders’ equity 44,823 4,567 49,390 The following table sets forth the effect this immaterial error correction had on the Company's unaudited condensed consolidated statement of cash flows for the six month period ended June 30, 2018: Six Months Ended June 30, 2018 Previously Reported Correction Revised Operating activities: Net loss (3,211 ) 336 (2,875 ) Change in accrued current and long-term liabilities (2,838 ) (336 ) (3,174 ) Net cash used in operating activities (3,418 ) — (3,418 ) Recent Accounting Pronouncements In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements: Clarifying the Interaction Between Topic 808 and Topic 606 ("ASU 2018-18"). ASU 2018-18 requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counter-party is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods in those fiscal years. We are currently assessing the impact of this update on our financial position, results of operations and cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASC 842"), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU No. 2018-10, Codification Improvements to Topic 842 ; and ASU No. 2018-11, Targeted Improvements . The new standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application under the modified retrospective approach. Under the effective date method, financial information and disclosures prior to January 1, 2019 are not required to be restated. We elected the “practical expedient package,” which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all of our leases. The adoption of this standard had the effect of increasing the assets and liabilities on our condensed consolidated balance sheet by $6,224 and $6,847 , respectively, but did not have a material impact on our condensed consolidated statements of operations or cash flows. The most significant impact relates to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our office operating leases; and (2) providing significant new disclosures about our leasing activities. Upon adoption, we recognized operating lease liabilities of $6,847 based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. We also recognized ROU assets of $6,224 which represents the operating lease liability adjusted for accrued rent and cease-use liabilities. Use of Estimates

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2019
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: June 30, December 31, Accounts receivable, gross $ 7,398 $ 7,003 Less: allowance for doubtful accounts (45 ) (21 ) Accounts receivable, net $ 7,353 $ 6,982 The following is the change in our allowance for doubtful accounts: Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 21 $ 47 Additions charged (reductions credited) 24 (25 ) Balance at end of period $ 45 $ 22 Inventories Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value). Inventories consist of the following: June 30, December 31, Finished goods $ 1,675 $ 1,577 Work-in-process 1,167 1,377 Inventories $ 2,842 $ 2,954 Property and Equipment, Net Property and equipment consists of the following: June 30, December 31, Gross carrying amount $ 23,249 $ 22,882 Less: accumulated depreciation and amortization (18,432 ) (16,731 ) Property and equipment, net $ 4,817 $ 6,151 Acquired Intangible Assets, Net In connection with the acquisition of ViXS ("the Acquisition"), we recorded certain identifiable intangible assets. Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following: June 30, 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 (3,278 ) (2,522 ) Acquired intangible assets, net $ 3,452 $ 4,208 Developed technology and customer relationships are amortized over a useful life of 3 to 5 years. Backlog was fully amortized as of September 30, 2018 and tradename was fully amortized as of March 31, 2019. Amortization expense for intangible assets was $374 and $756 for the three and six months ended June 30, 2019, respectively, $298 and $596 were included in cost of revenue for the three and six month periods ended June 30, 2019, respectively, and $76 and $160 were included in selling, general and administrative for the three and six months ended June 30, 2019, respectively, in the condensed consolidated statements of operations. As of June 30, 2019, future estimated amortization expense is as follows: Six months ending December 31: 2019 $ 749 Years ending December 31: 2020 1,496 2021 1,117 2022 90 $ 3,452 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 June 30, 2019. Goodwill Goodwill resulted from the Acquisition, whereby we recorded goodwill of $18,407 . Goodwill is not amortized; however, we review goodwill for impairment annually and whenever events or changes in circumstances indicate that the fair value of the reporting unit may be less than it's carrying value. Conditions that would trigger an impairment assessment include, but are not limited to, a significant adverse change in our business climate or 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 or 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 June 30, 2019. 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: June 30, December 31, Accrued payroll and related liabilities $ 3,180 $ 4,428 Operating lease liabilities, current 2,037 — Accrued royalties 779 900 Current portion of accrued liabilities for asset financings 411 748 Accrued interest payable 398 403 Accrued costs related to restructuring 224 200 Deferred revenue 156 96 Liability for warranty returns 9 13 Other 1,964 3,468 Accrued liabilities and current portion of long-term liabilities $ 9,158 $ 10,256 Deferred revenues are contract liabilities that arise when cash payments are received or due in advance of the satisfaction of our performance obligations. 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: Six Months Ended June 30, 2019 2018 Deferred revenue: Balance at beginning of period $ 96 $ 418 Revenue deferred 335 550 Revenue recognized (275 ) (713 ) Balance at end of period $ 156 $ 255 Liability for warranty returns: Balance at beginning of period $ 13 $ 17 Charge-offs (2 ) (4 ) Provision (2 ) (1 ) Balance at end of period $ 9 $ 12 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, December 21, 2017 and December 18, 2018 (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 27, 2019. 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 June 30, 2019, we were in compliance with all of the terms of the Revolving Loan Agreement, as amended. As of June 30, 2019 and December 31, 2018, we had no

Convertible Debt

Convertible Debt	6 Months Ended
	Jun. 30, 2019
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. 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. 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

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS Marketable Securities As of June 30, 2019 and December 31, 2018, all of our marketable securities are classified as available-for-sale, have contractual maturities of one year or less and consist of the following: Cost Unrealized Gain (Loss) Fair Value Short-term marketable securities: As of June 30, 2019: Corporate debt securities $ 2,493 $ 6 $ 2,499 Commercial paper 2,481 — 2,481 U.S. government treasury bills 1,594 1 1,595 $ 6,568 $ 7 $ 6,575 As of December 31, 2018: Corporate debt securities $ 3,238 $ (2 ) $ 3,236 Commercial paper 992 — 992 U.S. government treasury bills 1,841 — 1,841 $ 6,071 $ (2 ) $ 6,069 Unrealized holding gains and losses are recorded in accumulated other comprehensive income, a component of shareholders’ equity, in the condensed consolidated balance sheets. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2: Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018: Level 1 Level 2 Level 3 Total As of June 30, 2019: Assets: Cash equivalents: Money market funds $ 6,759 $ — $ — $ 6,759 Short-term marketable securities: U.S. government treasury bills 1,595 — — 1,595 Corporate debt securities — 2,499 — 2,499 Commercial paper — 2,481 — 2,481 As of December 31, 2018: Assets: Cash equivalents: Money market funds $ 13,388 $ — $ — $ 13,388 Commercial paper — 250 — 250 Corporate debt securities — 249 — 249 Short-term marketable securities: U.S. government treasury bills 1,841 — — 1,841 Corporate debt securities — 3,236 — 3,236 Commercial paper — 992 — 992 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.

Restructurings

Restructurings	6 Months Ended
	Jun. 30, 2019
Restructuring and Related Activities [Abstract]
Restructurings	RESTRUCTURINGS In June 2019, we executed a restructuring plan to make the operation of the Company more efficient (the "2019 Plan"). The 2019 Plan included an approximately 2% reduction in workforce, primarily in the areas of sales and operations. In April 2018, we executed a restructuring plan to make the operation of the Company more efficient (the "2018 Plan"). The 2018 Plan included an approximately 5% reduction in workforce, primarily in the areas of development, marketing and administration. The 2018 plan also included closing the Hong Kong office and reducing the size of the Toronto office. In September 2017, in connection with the Acquisition, we executed a restructuring plan to secure significant synergies between ViXS and Pixelworks (the "2017 Plan"). The 2017 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 and six month periods ended June 30, 2019 and 2018 is comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Operating expenses — restructuring: Employee severance and benefits $ 398 $ 602 $ 398 $ 621 Total restructuring expense $ 398 $ 602 $ 398 $ 621 During the three and six months ended June 30, 2019, we recorded $398 in restructuring expense related to the 2019 Plan. During the three months ended June 30, 2018, we recorded $602 in restructuring expense related to the 2018 Plan. During the six months ended June 30, 2018, we recorded $19 in restructuring expense related to the 2017 Plan and $602 related to the 2018 Plan. The following is a rollforward of the accrued liabilities related to restructuring for the six month period ended June 30, 2019: Balance as of December 31, 2018 Adjustment Expensed Payments Balance as of June 30, 2019 Facility closure and consolidations $ 360 $ (360 ) $ — $ — $ — Employee severance and benefits — — 398 (174 ) 224 Accrued costs related to restructuring $ 360 $ (360 ) $ 398 $ (174 ) $ 224 The adjustment to accrued costs related to restructuring was due to adjusting the ROU asset associated with cease-use liabilities upon the adoption of ASC 842 and did not result in an adjustment to restructuring expense.

Research and Development

Research and Development	6 Months Ended
	Jun. 30, 2019
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 that would be incurred in connection with our development of an integrated circuit product to be sold exclusively to the customer. Under the Co-Development Agreement, 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 were each payable upon completion of certain development milestones. As amounts became due and payable, they were offset against research and development expense on a pro rata basis. We recognized offsets to research and development expense of $4,000 related to the Co-development Agreement during each of 2018 and 2017. All milestones under the Co-development Agreement were completed as of December 31, 2018.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	LEASES On January 1, 2019, we adopted the new requirements of ASC 842, under the modified retrospective approach, using the effective date method. Under the effective date method, financial information and disclosures prior to January 1, 2019 are not required to be restated. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets also exclude lease incentives received. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. We have operating leases for office buildings and one vehicle. Our leases have remaining lease terms of 1 year to 6 years . Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease cost: $ 657 $ 1,286 Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases: $ 1,339 Weighted average remaining lease term (in years): 3.58 Weighted average discount rate: 5.75 % Future minimum lease payments under non-cancellable leases as of June 30, 2019 were as follows: Operating Lease Payments Six months ending December 31, 2019 $ 1,195 Years ending December 31: 2020 1,936 2021 1,244 2022 760 2023 624 Thereafter 513 Total operating lease payments 6,272 Less imputed interest (640 ) Total operating lease liabilities $ 5,632 As of June 30, 2019, the Company had no operating lease liabilities that had not commenced. As required, the following disclosure is provided for periods prior to adoption of ASC 842. Minimum lease commitments as of December 31, 2018 that had initial or remaining lease terms in excess of one year were as follows: Operating Leases 2019 1,856 2020 1,039 2021 708 2022 539 2023 492 2024 378

Revenue

Revenue	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue	REVENUE 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 circuit 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 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. License Revenue - 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. Fees under these agreements generally include license fees relating to our IP and support service fees, resulting in two performance obligations. We evaluate each performance obligation, which generally results in the transfer of control at a point in time for the license fee and over time for support services. Other - From time-to-time, we enter into arrangements for other revenue generating activities, such as providing technical support services to customers through technical support 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 for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 IC sales $ 17,588 $ 18,575 $ 32,662 $ 33,131 Engineering services, license and other 439 676 2,013 1,412 Total revenues $ 18,027 $ 19,251 $ 34,675 $ 34,543 For segment information, including revenue by geographic region, see "Note 12: Segment Information". Our contract balances include accounts receivable, deferred revenue and our liability for warranty returns. For information concerning these contract balances, see "Note 2: 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. We have not identified any material 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. The aggregate amount of the transaction price allocated to unsatisfied performance obligations with an original expected duration of greater than one year is $330 , which we expect to recognize ratably over the next 33 months

Interest Income (Expense) and O

Interest Income (Expense) and Other, Net	6 Months Ended
	Jun. 30, 2019
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest income $ 85 $ 67 $ 185 $ 124 Other income 53 54 97 105 Interest expense (34 ) (81 ) (82 ) (255 ) Gain on debt extinguishment — — — 1,272 Discount accretion on convertible debt fair value — — — (69 ) Total interest income (expense) and other, net $ 104 $ 40 $ 200 $ 1,177

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Incomes Taxes	INCOME TAXES The provision for income taxes during the 2019 and 2018 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 $31 and $19 during the first six months of 2019 and 2018, 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 June 30, 2019 and December 31, 2018, the amount of our uncertain tax positions was a liability of $1,651 and $1,661 , respectively, as well as a contra deferred tax asset of $1,039 and $925 , 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 $112 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.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2019
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net loss $ (2,448 ) $ (2,442 ) $ (2,315 ) $ (2,875 ) Weighted average shares outstanding - basic and diluted 37,688 35,704 37,469 35,445 Net loss per share - basic and diluted $ (0.06 ) $ (0.07 ) $ (0.06 ) $ (0.08 ) 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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Employee equity incentive plans 3,423 3,441 3,353 3,438

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION We function as a single operating segment: the design and development of integrated circuits for use in electronic display devices. The majority of our assets are located in the United States. Geographic Information Revenue by geographic region, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Japan $ 15,234 $ 17,057 $ 28,694 $ 30,402 China 1,686 1,712 3,548 2,638 United States 623 283 1,337 873 Taiwan 380 97 899 266 Europe 71 — 104 50 Korea 33 102 93 314 $ 18,027 $ 19,251 $ 34,675 $ 34,543 Significant Customers The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Distributors: All distributors 45 % 35 % 36 % 36 % Distributor A 37 % 27 % 30 % 25 % End customers: 1 Top five end customers 81 % 82 % 80 % 81 % End customer A 45 % 58 % 50 % 56 % End customer B 12 % 6 % 14 % 6 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: June 30, December 31, Account X 41 % 54 % Account Y 36 % 34 %

Risks and Uncertainties

Risks and Uncertainties	6 Months Ended
	Jun. 30, 2019
Risks and Uncertainties [Abstract]
Risks and Uncertainties	RISKS AND UNCERTAINTIES Concentration of Suppliers We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We rely on a limited number of foundries and assembly and test vendors to produce all of our wafers and for completion of finished products. We do not have any long-term agreements with any of these suppliers. In light of these dependencies, it is reasonably possible that failure to perform by one of these suppliers could have a severe impact on our results of operations. Additionally, the concentration of these vendors within Taiwan and the People’s Republic of China increases our risk of supply disruption due to natural disasters, economic instability, political unrest or other regional disturbances. Risk of Technological Change The markets in which we compete, or seek to compete, are subject to rapid technological change, frequent new product introductions, changing customer requirements for new products and features, and evolving industry standards. The introduction of new technologies and the emergence of new industry standards could render our products less desirable or obsolete, which could harm our business. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and accounts receivable. We limit our exposure to credit risk associated with cash equivalent balances by holding our funds in high quality, highly liquid money market accounts. We limit our exposure to credit risk associated with accounts receivable by carefully evaluating creditworthiness before offering terms to customers.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Indemnifications Certain of our agreements include indemnification provisions for claims from third-parties relating to our intellectual property. It is not possible for us to predict the maximum potential amount of future payments or indemnification costs under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. We have not made any payments under these agreements in the past, and as of June 30, 2019, 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, 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 June 30, 2019, $478 is included in accrued liabilities and current portion of long-term liabilities in our consolidated balance sheet and $516

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Consolidated Financial Statements	Condensed Consolidated Financial Statements The financial information included herein for the three and six month periods ended June 30, 2019 and 2018 is prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and is unaudited. Such information reflects all adjustments, consisting of only normal recurring adjustments, except as discussed below, 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, 2018 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2018, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 13, 2019 and as amended on August 9, 2019, and should be read in conjunction with such consolidated financial statements. The results of operations for the three and six month periods ended June 30, 2019 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2019.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements: Clarifying the Interaction Between Topic 808 and Topic 606 ("ASU 2018-18"). ASU 2018-18 requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counter-party is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods in those fiscal years. We are currently assessing the impact of this update on our financial position, results of operations and cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASC 842"), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU No. 2018-10, Codification Improvements to Topic 842 ; and ASU No. 2018-11, Targeted Improvements . The new standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application under the modified retrospective approach. Under the effective date method, financial information and disclosures prior to January 1, 2019 are not required to be restated. We elected the “practical expedient package,” which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all of our leases. The adoption of this standard had the effect of increasing the assets and liabilities on our condensed consolidated balance sheet by $6,224 and $6,847 , respectively, but did not have a material impact on our condensed consolidated statements of operations or cash flows. The most significant impact relates to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our office operating leases; and (2) providing significant new disclosures about our leasing activities. Upon adoption, we recognized operating lease liabilities of $6,847 based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. We also recognized ROU assets of $6,224 which represents the operating lease liability adjusted for accrued rent and cease-use liabilities.
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).
Co-Development Arrangements, Policy	As amounts became due and payable, they were offset against research and development expense on a pro rata basis.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Immaterial Error Correction	The following table sets forth the effect this immaterial error correction had on the Company’s unaudited condensed consolidated statements of operations for the three and six month periods ended June 30, 2018: Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Previously Reported Correction Revised Previously Reported Correction Revised Interest income (expense) and other, net $ (131 ) $ 171 $ 40 $ 841 $ 336 $ 1,177 Total other income (expense), net (131 ) 171 40 841 336 1,177 Income (loss) before income taxes (2,581 ) 171 (2,410 ) (2,903 ) 336 (2,567 ) Net loss (2,613 ) 171 (2,442 ) (3,211 ) 336 (2,875 ) Net loss per share - basic and diluted $ (0.07 ) $ — $ (0.07 ) $ (0.09 ) $ 0.01 $ (0.08 ) The following table sets forth the effect this immaterial error correction had on the Company's unaudited condensed consolidated balance sheet as of December 31, 2018: December 31, 2018 Previously Reported Correction Revised Accrued liabilities and current portion of long-term liabilities $ 14,823 $ (4,567 ) $ 10,256 Total current liabilities 17,202 (4,567 ) 12,635 Total liabilities 20,518 (4,567 ) 15,951 Accumulated deficit (384,095 ) 4,567 (379,528 ) Total shareholders’ equity 44,823 4,567 49,390 The following table sets forth the effect this immaterial error correction had on the Company's unaudited condensed consolidated statement of cash flows for the six month period ended June 30, 2018: Six Months Ended June 30, 2018 Previously Reported Correction Revised Operating activities: Net loss (3,211 ) 336 (2,875 ) Change in accrued current and long-term liabilities (2,838 ) (336 ) (3,174 ) Net cash used in operating activities (3,418 ) — (3,418 )

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract]
Accounts Receivable, Net	Accounts receivable consists of the following: June 30, December 31, Accounts receivable, gross $ 7,398 $ 7,003 Less: allowance for doubtful accounts (45 ) (21 ) Accounts receivable, net $ 7,353 $ 6,982
Allowance for Doubtful Accounts	The following is the change in our allowance for doubtful accounts: Six Months Ended June 30, 2019 2018 Balance at beginning of period $ 21 $ 47 Additions charged (reductions credited) 24 (25 ) Balance at end of period $ 45 $ 22
Inventories	Inventories consist of the following: June 30, December 31, Finished goods $ 1,675 $ 1,577 Work-in-process 1,167 1,377 Inventories $ 2,842 $ 2,954
Property and Equipment, Net	Property and equipment consists of the following: June 30, December 31, Gross carrying amount $ 23,249 $ 22,882 Less: accumulated depreciation and amortization (18,432 ) (16,731 ) Property and equipment, net $ 4,817 $ 6,151
Acquired Intangible Assets, Net	Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following: June 30, 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 (3,278 ) (2,522 ) Acquired intangible assets, net $ 3,452 $ 4,208
Future Amortization Expense	As of June 30, 2019, future estimated amortization expense is as follows: Six months ending December 31: 2019 $ 749 Years ending December 31: 2020 1,496 2021 1,117 2022 90 $ 3,452
Accrued Liabilities and Current Portion of Long-Term Liabilities	Accrued liabilities and current portion of long-term liabilities consist of the following: June 30, December 31, Accrued payroll and related liabilities $ 3,180 $ 4,428 Operating lease liabilities, current 2,037 — Accrued royalties 779 900 Current portion of accrued liabilities for asset financings 411 748 Accrued interest payable 398 403 Accrued costs related to restructuring 224 200 Deferred revenue 156 96 Liability for warranty returns 9 13 Other 1,964 3,468 Accrued liabilities and current portion of long-term liabilities $ 9,158 $ 10,256
Deferred Revenue & Liability for Warranty Returns	The changes in deferred revenue and the liability for warranty returns are as follows: Six Months Ended June 30, 2019 2018 Deferred revenue: Balance at beginning of period $ 96 $ 418 Revenue deferred 335 550 Revenue recognized (275 ) (713 ) Balance at end of period $ 156 $ 255 Liability for warranty returns: Balance at beginning of period $ 13 $ 17 Charge-offs (2 ) (4 ) Provision (2 ) (1 ) Balance at end of period $ 9 $ 12

Marketable Securities and Fai_2

Marketable Securities and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring and Nonrecurring Basis	As of June 30, 2019 and December 31, 2018, all of our marketable securities are classified as available-for-sale, have contractual maturities of one year or less and consist of the following: Cost Unrealized Gain (Loss) Fair Value Short-term marketable securities: As of June 30, 2019: Corporate debt securities $ 2,493 $ 6 $ 2,499 Commercial paper 2,481 — 2,481 U.S. government treasury bills 1,594 1 1,595 $ 6,568 $ 7 $ 6,575 As of December 31, 2018: Corporate debt securities $ 3,238 $ (2 ) $ 3,236 Commercial paper 992 — 992 U.S. government treasury bills 1,841 — 1,841 $ 6,071 $ (2 ) $ 6,069
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018: Level 1 Level 2 Level 3 Total As of June 30, 2019: Assets: Cash equivalents: Money market funds $ 6,759 $ — $ — $ 6,759 Short-term marketable securities: U.S. government treasury bills 1,595 — — 1,595 Corporate debt securities — 2,499 — 2,499 Commercial paper — 2,481 — 2,481 As of December 31, 2018: Assets: Cash equivalents: Money market funds $ 13,388 $ — $ — $ 13,388 Commercial paper — 250 — 250 Corporate debt securities — 249 — 249 Short-term marketable securities: U.S. government treasury bills 1,841 — — 1,841 Corporate debt securities — 3,236 — 3,236 Commercial paper — 992 — 992

Restructurings (Tables)

Restructurings (Tables)	6 Months Ended
	Jun. 30, 2019
Restructuring and Related Activities [Abstract]
Restructuring Expense by Components	Total restructuring expense included in our statement of operations for the three and six month periods ended June 30, 2019 and 2018 is comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Operating expenses — restructuring: Employee severance and benefits $ 398 $ 602 $ 398 $ 621 Total restructuring expense $ 398 $ 602 $ 398 $ 621
Schedule of Accrued Restructuring Liabilities	The following is a rollforward of the accrued liabilities related to restructuring for the six month period ended June 30, 2019: Balance as of December 31, 2018 Adjustment Expensed Payments Balance as of June 30, 2019 Facility closure and consolidations $ 360 $ (360 ) $ — $ — $ — Employee severance and benefits — — 398 (174 ) 224 Accrued costs related to restructuring $ 360 $ (360 ) $ 398 $ (174 ) $ 224

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Supplemental Information Related to Leases	Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease cost: $ 657 $ 1,286
Future Minimum Payments Under Non-cancellable Leases	Future minimum lease payments under non-cancellable leases as of June 30, 2019 were as follows: Operating Lease Payments Six months ending December 31, 2019 $ 1,195 Years ending December 31: 2020 1,936 2021 1,244 2022 760 2023 624 Thereafter 513 Total operating lease payments 6,272 Less imputed interest (640 ) Total operating lease liabilities $ 5,632
Future Minimum Lease Payments Under Previous Guidance	December 31, 2018 that had initial or remaining lease terms in excess of one year were as follows: Operating Leases 2019 1,856 2020 1,039 2021 708 2022 539 2023 492 2024 378

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table provides information about disaggregated revenue based on the preceding categories for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 IC sales $ 17,588 $ 18,575 $ 32,662 $ 33,131 Engineering services, license and other 439 676 2,013 1,412 Total revenues $ 18,027 $ 19,251 $ 34,675 $ 34,543

Interest Income (Expense) and_2

Interest Income (Expense) and Other, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Other Income and Expenses [Abstract]
Interest Income (Expense) and Other, net	Interest income (expense) and other, consists of the following: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest income $ 85 $ 67 $ 185 $ 124 Other income 53 54 97 105 Interest expense (34 ) (81 ) (82 ) (255 ) Gain on debt extinguishment — — — 1,272 Discount accretion on convertible debt fair value — — — (69 ) Total interest income (expense) and other, net $ 104 $ 40 $ 200 $ 1,177

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net loss $ (2,448 ) $ (2,442 ) $ (2,315 ) $ (2,875 ) Weighted average shares outstanding - basic and diluted 37,688 35,704 37,469 35,445 Net loss per share - basic and diluted $ (0.06 ) $ (0.07 ) $ (0.06 ) $ (0.08 )
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Employee equity incentive plans 3,423 3,441 3,353 3,438

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Region	Revenue by geographic region, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Japan $ 15,234 $ 17,057 $ 28,694 $ 30,402 China 1,686 1,712 3,548 2,638 United States 623 283 1,337 873 Taiwan 380 97 899 266 Europe 71 — 104 50 Korea 33 102 93 314 $ 18,027 $ 19,251 $ 34,675 $ 34,543
Schedule of Revenue from Significant Customers	The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Distributors: All distributors 45 % 35 % 36 % 36 % Distributor A 37 % 27 % 30 % 25 % End customers: 1 Top five end customers 81 % 82 % 80 % 81 % End customer A 45 % 58 % 50 % 56 % End customer B 12 % 6 % 14 % 6 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.
Schedule of Accounts Receivable Percentage from Significant Customers	The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: June 30, December 31, Account X 41 % 54 % Account Y 36 % 34 %

Basis of Presentation (Details)

Basis of Presentation (Details)	Jun. 30, 2019patent
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of patents held	349

Basis of Presentation (Immateri

Basis of Presentation (Immaterial Error Correction, Statement of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						6 Months Ended
	Jun. 30, 2019		Mar. 31, 2019	Jun. 30, 2018		Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Interest income (expense) and other, net	$ 104	[1]		$ 40	[1]		$ 200	$ 1,177
Total other income (expense), net	104			40			4,105	1,177
Income (loss) before income taxes	(2,217)			(2,410)			(1,676)	(2,567)
Net loss	$ (2,448)		$ 133	$ (2,442)		$ (433)	$ (2,315)	$ (2,875)
Net loss per share - basic and diluted	$ (0.06)			$ (0.07)			$ (0.06)	$ (0.08)
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Interest income (expense) and other, net				$ (131)				$ 841
Total other income (expense), net				(131)				841
Income (loss) before income taxes				(2,581)				(2,903)
Net loss				$ (2,613)				$ (3,211)
Net loss per share - basic and diluted				$ (0.07)				$ (0.09)
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Interest income (expense) and other, net				$ 171				$ 336
Total other income (expense), net				171				336
Income (loss) before income taxes				171				336
Net loss				$ 171				$ 336
Net loss per share - basic and diluted				$ 0				$ 0.01
[1]	Includes: Discount accretion on convertible debt fair value— — — 69Gain on debt extinguishment— — — (1,272)

Basis of Presentation (Immate_2

Basis of Presentation (Immaterial Error Correction, Balance Sheet) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued liabilities and current portion of long-term liabilities	$ 9,158		$ 10,256
Total current liabilities	11,919		12,635
Total liabilities	18,523		15,951
Accumulated deficit	(381,843)		(379,528)
Total shareholders’ equity	$ 50,751	$ 51,531	49,390	$ 45,895	$ 46,940	$ 43,296
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued liabilities and current portion of long-term liabilities			14,823
Total current liabilities			17,202
Total liabilities			20,518
Accumulated deficit			(384,095)
Total shareholders’ equity			44,823
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued liabilities and current portion of long-term liabilities			(4,567)
Total current liabilities			(4,567)
Total liabilities			(4,567)
Accumulated deficit			4,567
Total shareholders’ equity			$ 4,567

Basis of Presentation (Immate_3

Basis of Presentation (Immaterial Error Correction, Cash Flow) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (2,448)	$ 133	$ (2,442)	$ (433)	$ (2,315)	$ (2,875)
Change in accrued current and long-term liabilities					(2,230)	(3,174)
Net cash used in operating activities					$ (2,256)	(3,418)
Previously Reported
Cash flows from operating activities:
Net loss			(2,613)			(3,211)
Change in accrued current and long-term liabilities						(2,838)
Net cash used in operating activities						(3,418)
Correction
Cash flows from operating activities:
Net loss			$ 171			336
Change in accrued current and long-term liabilities						(336)
Net cash used in operating activities						$ 0

Basis of Presentation (Recent A

Basis of Presentation (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets	$ 69,274		$ 65,341
Liabilities	18,523		15,951
Operating lease liabilities	5,632
Operating lease right of use assets	$ 5,173		$ 0
Topic 842
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets		$ 6,224
Liabilities		6,847
Operating lease liabilities		6,847
Operating lease right of use assets		$ 6,224

Balance Sheet Components - Acco

Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts receivable, gross	$ 7,398	$ 7,003
Less: allowance for doubtful accounts	(45)	(21)	$ (22)	$ (47)
Accounts receivable, net	$ 7,353	$ 6,982

Balance Sheet Components - Allo

Balance Sheet Components - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 21	$ 47
Additions charged (reductions credited)	24	(25)
Balance at end of period	$ 45	$ 22

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Finished goods	$ 1,675	$ 1,577
Work-in-process	1,167	1,377
Inventories	$ 2,842	$ 2,954

Balance Sheet Components - Prop

Balance Sheet Components - Property Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Gross carrying amount	$ 23,249	$ 22,882
Less: accumulated depreciation and amortization	(18,432)	(16,731)
Property and equipment, net	$ 4,817	$ 6,151

Balance Sheet Components - Acqu

Balance Sheet Components - Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	$ 6,730	$ 6,730	$ 6,730
Less: accumulated amortization	(3,278)	(3,278)	(2,522)
Acquired intangible assets, net	3,452	3,452	4,208
Amortization of acquired intangible assets including backlog	374	756
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets including backlog	298	596
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets including backlog	76	160
Developed technology
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	5,050	$ 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	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	$ 410

Balance Sheet Components - Futu

Balance Sheet Components - Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
2019	$ 749
2020	1,496
2021	1,117
2022	90
Acquired intangible assets, net	$ 3,452	$ 4,208

Balance Sheet Components - Good

Balance Sheet Components - Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	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	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Accrued payroll and related liabilities	$ 3,180	$ 4,428
Operating lease liabilities, current	2,037	0
Accrued royalties	779	900
Current portion of accrued liabilities for asset financings	411	748
Accrued interest payable	398	403
Accrued costs related to restructuring	224	200
Deferred revenue	156	96	$ 255	$ 418
Liability for warranty returns	9	13	$ 12	$ 17
Other	1,964	3,468
Accrued liabilities and current portion of long-term liabilities	$ 9,158	$ 10,256

Balance Sheet Components - Defe

Balance Sheet Components - Deferred Revenue & Liability for Warranty Returns (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Deferred Revenue [Abstract]
Balance at beginning of period	$ 96	$ 418
Revenue deferred	335	550
Revenue recognized	(275)	(713)
Balance at end of period	156	255
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	13	17
Charge-offs	(2)	(4)
Provision	(2)	(1)
Balance at end of period	$ 9	$ 12

Balance Sheet Components - Shor

Balance Sheet Components - Short-Term Line of Credit (Narrative) (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Dec. 18, 2018
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) $ in Thousands, $ in Thousands	Jan. 12, 2018USD ($)shares	Jan. 12, 2018CAD ($)shares	Aug. 02, 2017shares	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Debt Instrument [Line Items]
Value of debt converted into shares							$ 0	$ 2,644
Gain on debt extinguishment				$ 0	$ 0		0	(1,272)
Discount accretion on convertible debt fair value				$ 0	$ 0		$ 0	$ 69
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
Convertible Debt | 10% convertible notes
Debt Instrument [Line Items]
Interest expense, debt						66
Discount accretion on convertible debt fair value						69
Foreign currency transaction loss						$ 15
ViXS Systems, Inc.
Debt Instrument [Line Items]
Shares issued per acquired share (in shares) | shares			0.04836

Marketable Securities and Fai_3

Marketable Securities and Fair Value Measurements - Schedule of Short Term Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	$ 6,568	$ 6,071
Unrealized Gain (Loss)	7	(2)
Fair Value	6,575	6,069
Corporate debt securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	2,493	3,238
Unrealized Gain (Loss)	6	(2)
Fair Value	2,499	3,236
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	2,481	992
Unrealized Gain (Loss)	0	0
Fair Value	2,481	992
U.S. government treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	1,594	1,841
Unrealized Gain (Loss)	1	0
Fair Value	$ 1,595	$ 1,841

Marketable Securities and Fai_4

Marketable Securities and Fair Value Measurements - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	$ 6,575	$ 6,069
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		249
Corporate debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		0
Corporate debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		249
Corporate debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	6,759	13,388
Money market funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	6,759	13,388
Money market funds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	0	0
Money market funds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		250
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		250
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:		0
U.S. government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	1,595	1,841
U.S. government treasury bills | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	1,595	1,841
U.S. government treasury bills | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	0	0
U.S. government treasury bills | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	0	0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	2,499	3,236
Corporate debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	0	0
Corporate debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	2,499	3,236
Corporate debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	2,481	992
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	0	0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	2,481	992
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	$ 0	$ 0

Restructurings (Details)

Restructurings (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring expense		$ 398
2019 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expense		$ 398
The 2018 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 602		$ 602
The 2017 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expense			$ 19

Restructurings - Components of

Restructurings - Components of Restructuring Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	$ 398	$ 602	$ 398	$ 621
Operating expenses — restructuring:
Restructuring Cost and Reserve [Line Items]
Employee severance and benefits	$ 398	$ 602	$ 398	$ 621

Restructurings - Restructuring

Restructurings - Restructuring Reserve Rollforward (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2018	$ 360
Adjustment	(360)
Expensed	398
Payments	174
Balance as of June 30, 2019	224
Facility closure and consolidations
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2018	360
Adjustment	(360)
Expensed	0
Payments	0
Balance as of June 30, 2019	0
Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2018	0
Adjustment	0
Expensed	398
Payments	174
Balance as of June 30, 2019	$ 224

Research and Development (Detai

Research and Development (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
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

Leases - Narrative (Details)

Leases - Narrative (Details)	6 Months Ended
	Jun. 30, 2019
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms on operating leases	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms on operating leases	6 years

Leases - Supplemental informati

Leases - Supplemental information related to leases (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)
Leases [Abstract]
Operating lease cost:	$ 657	$ 1,286
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$ 1,339
Weighted average remaining lease term (in years):	3 years 6 months 29 days	3 years 6 months 29 days
Weighted average discount rate:	5.75%	5.75%

Leases - Future minimum lease p

Leases - Future minimum lease payments under noncancellable leases (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
Six months ending December 31, 2019	$ 1,195
Years ending December 31:
2020	1,936
2021	1,244
2022	760
2023	624
Thereafter	513
Total operating lease payments	6,272
Less imputed interest	(640)
Total operating lease liabilities	$ 5,632

Leases - Future minimum lease_2

Leases - Future minimum lease payments under previous guidance (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 1,856
2020	1,039
2021	708
2022	539
2023	492
2024	$ 378

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue from External Customer [Line Items]
Revenues	$ 18,027	$ 19,251	$ 34,675	$ 34,543
IC sales
Revenue from External Customer [Line Items]
Revenues	17,588	18,575	32,662	33,131
Engineering services, license and other
Revenue from External Customer [Line Items]
Revenues	$ 439	$ 676	$ 2,013	$ 1,412

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Unsatisfied performance obligations	$ 330
Expected timing of satisfaction of performance obligations	which we expect to recognize ratably over the next 33 months

Interest Income (Expense) and_3

Interest Income (Expense) and Other, Net (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019		Jun. 30, 2018		Jun. 30, 2019	Jun. 30, 2018
Other Income and Expenses [Abstract]
Interest income	$ 85		$ 67		$ 185	$ 124
Other income	53		54		97	105
Interest expense	(34)		(81)		(82)	(255)
Gain on debt extinguishment	0		0		0	1,272
Discount accretion on convertible debt fair value	0		0		0	(69)
Total interest income (expense) and other, net	$ 104	[1]	$ 40	[1]	$ 200	$ 1,177
[1]	Includes: Discount accretion on convertible debt fair value— — — 69Gain on debt extinguishment— — — (1,272)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Reversal of uncertain tax positions	$ 31	$ 19
Liability for uncertain tax positions	1,651		$ 1,661
Reduction to deferred tax assets	1,039		$ 925
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	$ 112

Earnings Per Share - Earnings P

Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net loss	$ (2,448)	$ 133	$ (2,442)	$ (433)	$ (2,315)	$ (2,875)
Weighted average shares outstanding - basic and diluted	37,688		35,704		37,469	35,445
Net loss per share - basic and diluted	$ (0.06)		$ (0.07)		$ (0.06)	$ (0.08)

Earnings Per Share - Antidiluti

Earnings Per Share - Antidilutive Effect on Weighted Average Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
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	3,441	3,353	3,438

Segment Information - Geographi

Segment Information - Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, net	$ 18,027	$ 19,251	$ 34,675	$ 34,543
Japan
Revenue, net	15,234	17,057	28,694	30,402
China
Revenue, net	1,686	1,712	3,548	2,638
United States
Revenue, net	623	283	1,337	873
Taiwan
Revenue, net	380	97	899	266
Europe
Revenue, net	71	0	104	50
Korea
Revenue, net	$ 33	$ 102	$ 93	$ 314

Segment Information - Revenue b

Segment Information - Revenue by Major Customer (Details) - Revenue, net		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
All distributors
Revenue, Major Customer
Percentage of revenue		45.00%	35.00%	36.00%	36.00%
Distributor A
Revenue, Major Customer
Percentage of revenue		37.00%	27.00%	30.00%	25.00%
Top five end customers
Revenue, Major Customer
Percentage of revenue	[1]	81.00%	82.00%	80.00%	81.00%
End customer A
Revenue, Major Customer
Percentage of revenue	[1]	45.00%	58.00%	50.00%	56.00%
End customer B
Revenue, Major Customer
Percentage of revenue	[1]	12.00%	6.00%	14.00%	6.00%
[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
	Jun. 30, 2019	Dec. 31, 2018
Account X
Segment Reporting Information
Percentage of accounts receivable	41.00%	54.00%
Account Y
Segment Reporting Information
Percentage of accounts receivable	36.00%	34.00%

Commitments and Contingencies (

Commitments and Contingencies (Details) - ViXS Systems, Inc. - Research And Development Expense Payment $ in Thousands	Jun. 30, 2019USD ($)
Accrued Liabilities And Current Portion Of Long Term Debt
Other Commitments [Line Items]
Other Commitment	$ 478
Long-term Debt
Other Commitments [Line Items]
Other Commitment	$ 516