Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Feb. 28, 2013 | Jun. 30, 2012 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'DOT HILL SYSTEMS CORP | ' | ' |
Entity Central Index Key | '0001042783 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-12 | ' | ' |
Document Fiscal Year Focus | '2012 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 58,703,185 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $65,057,120 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $40,315 | $46,168 |
Accounts receivable, net | 25,025 | 31,697 |
Inventories | 5,037 | 5,251 |
Prepaid expenses and other assets | 5,810 | 7,896 |
Total current assets | 76,187 | 91,012 |
Property and equipment, net | 7,147 | 4,972 |
Intangible assets, net | 0 | 2,601 |
Other assets | 603 | 294 |
Total assets | 83,937 | 98,879 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ' | ' |
Accounts payable | 22,659 | 31,434 |
Accrued compensation | 4,863 | 5,049 |
Accrued expenses | 8,325 | 10,860 |
Deferred revenue | 2,889 | 883 |
Restructuring accrual | 365 | 1,328 |
Credit facility borrowings | 2,800 | 0 |
Current portion of long-term note payable | 0 | 71 |
Total current liabilities | 41,901 | 49,625 |
Other long-term liabilities | 3,261 | 552 |
Total liabilities | 45,162 | 50,177 |
Commitments and Contingencies (Note 14) | ' | ' |
Stockholders’ Equity: | ' | ' |
Preferred stock, $.001 par value, 10,000 shares authorized, zero shares issued and outstanding at December 31, 2011 and 2012 | 0 | 0 |
Common stock, $.001 par value, 100,000 shares authorized, 57,699 and 58,265 shares issued and outstanding at December 31, 2011 and 2012, respectively | 58 | 58 |
Additional paid-in capital | 326,575 | 321,681 |
Accumulated other comprehensive loss | -3,533 | -3,662 |
Accumulated deficit | -284,325 | -269,375 |
Total stockholders’ equity | 38,775 | 48,702 |
Total liabilities and stockholders’ equity | $83,937 | $98,879 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,265,000 | 57,699,000 |
Common stock, shares outstanding | 58,265,000 | 57,699,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations and Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
NET REVENUE | $194,548 | $195,827 | $251,838 |
COST OF GOODS SOLD | 146,177 | 150,544 | 207,653 |
GROSS PROFIT | 48,371 | 45,283 | 44,185 |
OPERATING EXPENSES: | ' | ' | ' |
Research and development | 34,199 | 31,196 | 28,113 |
Sales and marketing | 14,133 | 13,225 | 11,837 |
General and administrative | 9,900 | 8,506 | 9,162 |
Restructuring charge (recovery) | -205 | 668 | 2,089 |
Total operating expenses | 58,027 | 53,595 | 51,201 |
OPERATING LOSS | -9,656 | -8,312 | -7,016 |
OTHER INCOME: | ' | ' | ' |
Interest income (expense), net | -8 | 16 | -19 |
Other income, net | 11 | -39 | 16 |
Total other income (expense), net | 3 | -23 | -3 |
LOSS BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS | -9,653 | -8,335 | -7,019 |
INCOME TAX EXPENSE | 749 | 129 | 213 |
Loss from continuing operations | -10,402 | -8,464 | -7,232 |
LOSS FROM DISCONTINUED OPERATIONS | -4,548 | -13,560 | -6,019 |
NET LOSS | -14,950 | -22,024 | -13,251 |
NET LOSS PER SHARE: | ' | ' | ' |
Loss from continuing operations (in usd per share) | ($0.18) | ($0.15) | ($0.14) |
Loss from discontinued operations (in usd per share) | ($0.08) | ($0.25) | ($0.11) |
Basic and diluted (in usd per share) | ($0.26) | ($0.40) | ($0.25) |
WEIGHTED AVERAGE SHARES USED TO CALCULATE NET LOSS PER SHARE: | ' | ' | ' |
Basic and diluted (in shares) | 56,954 | 54,908 | 53,015 |
COMPREHENSIVE LOSS: | ' | ' | ' |
NET LOSS | -14,950 | -22,024 | -13,251 |
Foreign currency translation adjustment | 129 | -78 | -145 |
Comprehensive loss | ($14,821) | ($22,102) | ($13,396) |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning balance at at Dec. 31, 2009 | $66,351 | $49 | $303,841 | ($3,439) | ($234,100) |
Beginning balance, shares at at Dec. 31, 2009 | ' | 48,952,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Shares issued in connection with acquisition, shares | ' | 4,759,000 | ' | ' | ' |
Shares issued in connection with acquisition | 8,132 | 5 | 8,127 | ' | ' |
Common stock issued (canceled) under stock plans, shares | ' | 2,242,000 | ' | ' | ' |
Common stock issued (canceled) under stock plans | 288 | 2 | 286 | ' | ' |
Share-based compensation | 3,003 | ' | 3,003 | ' | ' |
Foreign currency translation adjustment | -145 | ' | ' | -145 | ' |
Net loss | -13,251 | ' | ' | ' | -13,251 |
Ending balance at at Dec. 31, 2010 | 64,378 | 56 | 315,257 | -3,584 | -247,351 |
Ending balance, shares at at Dec. 31, 2010 | ' | 55,953,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Issuance of warrant to customer | 1,007 | ' | 1,007 | ' | ' |
Shares issued in connection with acquisition | 0 | ' | ' | ' | ' |
Common stock issued (canceled) under stock plans, shares | ' | 1,746,000 | ' | ' | ' |
Common stock issued (canceled) under stock plans | 1,028 | 2 | 1,026 | ' | ' |
Share-based compensation | 4,379 | ' | 4,379 | ' | ' |
Excess tax benefit | 12 | ' | 12 | ' | ' |
Foreign currency translation adjustment | -78 | ' | ' | -78 | ' |
Net loss | -22,024 | ' | ' | ' | -22,024 |
Ending balance at at Dec. 31, 2011 | 48,702 | 58 | 321,681 | -3,662 | -269,375 |
Ending balance, shares at at Dec. 31, 2011 | 57,699,000 | 57,699,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Shares issued in connection with acquisition | 0 | ' | ' | ' | ' |
Common stock issued (canceled) under stock plans, shares | ' | -253,000 | ' | ' | ' |
Common stock issued (canceled) under stock plans | 166 | 0 | 166 | ' | ' |
Common stock issued under bonus plans, shares | ' | 819,000 | ' | ' | ' |
Common stock issued under bonus plans | 1,005 | ' | 1,005 | ' | ' |
Share-based compensation | 3,723 | ' | 3,723 | ' | ' |
Foreign currency translation adjustment | 129 | ' | ' | 129 | ' |
Net loss | -14,950 | ' | ' | ' | -14,950 |
Ending balance at at Dec. 31, 2012 | $38,775 | $58 | $326,575 | ($3,533) | ($284,325) |
Ending balance, shares at at Dec. 31, 2012 | 58,265,000 | 58,265,000 | ' | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Net loss | ($14,950) | ($22,024) | ($13,251) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 3,527 | 4,755 | 4,032 |
Business Combination, Contingent Consideration Arrangement, Adjustment | 0 | 0 | -144 |
Provision for bad debt expense | 25 | 203 | 0 |
Stock-based compensation expense | 3,723 | 5,385 | 3,003 |
Issuance of warrant to customer | 0 | 1,007 | 0 |
Long-lived assets impairment charge | 1,647 | 2,928 | 0 |
Impairment losses | 0 | 4,140 | 0 |
Loss on write-off of fixed assets | 244 | 0 | 0 |
Changes in operating assets and liabilities, net of effects of business acquisition: | ' | ' | ' |
Accounts receivable | 6,621 | 3,309 | -816 |
Inventories | 213 | 2,091 | -2,938 |
Prepaid expenses and other assets | 1,740 | -4,263 | 1,702 |
Accounts payable | -7,474 | -92 | 1,543 |
Accrued compensation and other expenses | -1,542 | 6,169 | -1,394 |
Deferred revenue | 2,017 | -501 | 147 |
Restructuring accrual | -963 | -336 | -33 |
Other long-term liabilities | 2,726 | -571 | -946 |
Net cash provided by (used in) operating activities | -2,446 | 2,200 | -9,095 |
Cash Flows From Investing Activities: | ' | ' | ' |
Purchases of property and equipment | -6,152 | -2,548 | -1,490 |
Acquisition, net of cash acquired | 0 | 0 | -625 |
Proceeds from sale of property and equipment | 74 | 0 | 0 |
Net cash (used in) investing activities | -6,078 | -2,548 | -2,115 |
Cash Flows From Financing Activities: | ' | ' | ' |
Principal payment of note payable | -71 | -398 | -1,036 |
Payments on bank borrowings | -1,800 | 0 | -5,800 |
Proceeds from bank borrowings | 4,600 | 0 | 5,800 |
Shares withheld for tax purposes | -590 | -422 | -477 |
Proceeds from sale of stock to employees | 756 | 1,450 | 765 |
Net cash provided by (used in) financing activities | 2,895 | 630 | -748 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -224 | 154 | 116 |
Net Increase (Decrease) in Cash and Cash Equivalents | -5,853 | 436 | -11,842 |
Cash and Cash Equivalents, beginning of period | 46,168 | 45,732 | 57,574 |
Cash and Cash Equivalents, end of period | 40,315 | 46,168 | 45,732 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ' | ' | ' |
Property and equipment acquired but not yet paid | 477 | 1,540 | 67 |
Common stock issued in connection with acquisition | 0 | 0 | 8,132 |
Stock payment for employee bonus plan | 1,005 | 0 | 0 |
Supplemental Cash Flow Data: | ' | ' | ' |
Cash paid for income taxes | $116 | $235 | $90 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary Of Significant Accounting Policies | ' | |||||||||||
Summary of Significant Accounting Policies | ||||||||||||
Description of Business | ||||||||||||
Dot Hill Systems Corp (referred to herein as Dot Hill, we, our or us) is a provider of software and hardware storage systems for the entry and mid-range storage markets for organizations requiring high reliability, high performance networked storage and data management solutions in an open systems architecture. Our storage solutions consist of integrated hardware, firmware and software products employing a modular system that allows end-users to add various capacity or data protection schemes as needed. Our broad range of products, from medium capacity standalone storage units to complete multi-terabyte storage area networks, or SANs, provide end-users with a cost-effective means of addressing increasing storage demands without sacrificing performance. | ||||||||||||
Basis of Presentation | ||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. | ||||||||||||
2010 and 2011 amounts in our consolidated financial statements have been retrospectively adjusted for discontinued operations. See Note 4. | ||||||||||||
Principles of Consolidation | ||||||||||||
The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||
Foreign Currency Translation | ||||||||||||
For our foreign subsidiaries whose functional currency is the local currency, assets and liabilities are translated into United States dollars at period-end exchange rates. Revenues and expenses, and gains and losses, are translated at rates of exchange that approximate the rates in effect on the transaction date. Resulting translation gains and losses are recognized as a component of other comprehensive loss. | ||||||||||||
For our foreign subsidiaries that maintain their books of record in a currency other than the functional currency, the subsidiaries remeasure monetary assets and liabilities using current rates of exchange at the balance sheet date and remeasure non-monetary assets and liabilities using historical rates of exchange. Gains and losses from remeasurement for such subsidiaries are recognized currently in income as a component of general and administrative expenses. | ||||||||||||
Foreign currency translation adjustments comprise the entire amount of our accumulated other comprehensive loss at December 31, 2011 and 2012. We incurred foreign currency transaction losses of $0.2 million and $0.3 million for the years ended December 31, 2010 and 2011, respectively, and foreign currency transaction gains of $0.5 million for the year ended December 31, 2012. | ||||||||||||
Use of Accounting Estimates | ||||||||||||
The preparation of our unaudited condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition, inventory valuation, recurring and specific issue warranty obligations (see Note 7), the valuation and recognition of stock-based compensation expense, and the valuation of long-lived assets, goodwill and other intangibles, as well as any other assets and liabilities acquired and accounted for under the purchase method of accounting for business combinations. In addition, we have other accounting policies that involve estimates such as the determination of useful lives of long-lived assets, the accruals for restructuring, and income taxes, including the valuation allowance for deferred tax assets. Actual results may differ from these estimates and such differences could be material. | ||||||||||||
Revenue Recognition | ||||||||||||
We derive our revenue from sales of our hardware products, software and services. | ||||||||||||
Hardware | ||||||||||||
Hardware product revenue consists of revenue from sales of our AssuredSAN storage systems which is integrated with industry standard hardware which is essential to the functionality of the integrated system product. We recognize hardware product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue is recognized for hardware product sales upon transfer of title and risk of loss to the customer and in addition, upon installation for certain of our AssuredUVS appliance products. We record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates are based on historical sales returns, analysis of credit memo data and other factors known at the time. If actual future returns and pricing adjustments differ from past experience and our estimates, additional revenue reserves may be required. | ||||||||||||
Software | ||||||||||||
In accordance with the specific guidance for recognizing software revenue, where applicable, we recognize revenue from perpetual software licenses at the inception of the license term assuming all revenue recognition criteria have been met. We use the relative method to allocate revenue to software licenses at the inception of the license term when vendor-specific objective evidence, or VSOE, of fair value for all unspecified software updates and enhancements related to our products through service contracts is available. We have established VSOE for the fair value of our support services as measured by the stated renewal prices paid by our customers when the services are sold separately on a standalone basis. | ||||||||||||
Specific long term software contracts may contain multiple deliverables including software licenses, services, training and post-contract support for which we have not established VSOE of fair value of any of the elements. Under specific guidance for recognizing software revenue, we begin recognizing revenue upon the delivery of all the elements except post-contract support (PCS). We defer all the direct and incremental costs related to the deliverables in these contracts until delivery of all the elements except PCS. The deferred revenue and costs are amortized over the contractual PCS support periods. | ||||||||||||
During the preparation of the Company's consolidated financial statements for the year ended December 31, 2012 and the accounting analysis for the renewal of a long-term software contract, the Company determined that it had applied an inappropriate revenue recognition methodology in 2010 and 2011 to the contract. The Company recorded revenue as royalty payments were received on this contract and should have deferred all the revenue and direct and incremental costs until all the deliverables, except PCS, were delivered in 2012. | ||||||||||||
This resulted in an overstatement of $1.4 million of revenue and $1.2 million of costs in 2010, and an overstatement of $2.8 million of revenue and $1.9 million of costs in 2011. This was corrected in the fourth quarter of 2012, and the net out-of-period impact of these adjustments was $1.1 million, consisting of a reduction of revenue and research and development costs of $4.2 million and $3.1 million, respectively. | ||||||||||||
Service | ||||||||||||
Our service revenue primarily includes out-of-warranty repairs and product maintenance contracts. Out-of warranty repairs primarily consist of product repair services performed by our contract manufacturers for those customers that allowed their original product warranty to expire without purchasing one of our higher level support service plans. Revenue from these out-of-warranty repairs, and the associated cost of sales, is recognized in the period these services are provided. Service revenue also consists of product maintenance contracts purchased by our customers as an extension of our standard warranty. Revenue from our product maintenance contracts is deferred and recognized ratably over the contract term, generally 12 to 36 months. Net revenue derived from services was less than 10% of total revenue for all periods presented. | ||||||||||||
Revenue Recognition for Arrangements with Multiple Deliverables | ||||||||||||
For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, we allocate revenue to all deliverables based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) VSOE of fair value, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of the selling price, or ESP. VSOE generally exists only when we sell the deliverable separately and represents the actual price charged by us for that deliverable. ESPs reflect our best estimates of what the selling prices of elements would be if they were sold regularly on a standalone basis. | ||||||||||||
From time to time, we enter into arrangements with customers that include acceptance criteria. In such instances, we defer all revenue on the arrangement until customer acceptance is obtained or the acceptance clause lapses. | ||||||||||||
Revenue Recognition for Sales to Channel Partners | ||||||||||||
On sales to channel partners, we evaluate whether fees are considered fixed or determinable by considering a number of factors, including our ability to estimate returns, payment terms and our relationship and past history with the particular channel partner. If fees are not considered fixed or determinable at the time of sale to a channel partner, revenue recognition is deferred until there is persuasive evidence indicating the product has sold through to an end-user. Persuasive evidence of sell-through may include reports from channel partners documenting sell-through activity or data indicating an order has shipped to an end-user. | ||||||||||||
Deferred Revenue | ||||||||||||
We defer revenue on upfront nonrefundable payments from our customers and recognize it ratably over the term of the agreement, unless the payment is in exchange for products delivered that represent the culmination of a separate earnings process. When we provide consideration to a customer, we recognize the value of that consideration as a reduction in net revenue. We may be required to maintain inventory with certain of our largest OEM customers, which we refer to as hubbing arrangements. Pursuant to these arrangements we deliver products to a customer or a designated third-party warehouse based upon the customer’s projected needs, but do not recognize product revenue unless and until the customer has removed our product from the warehouse to incorporate into its end products. | ||||||||||||
We report taxes collected from customers on behalf of governmental authorities on a net basis (excluded from revenues). | ||||||||||||
Advertising Costs | ||||||||||||
We expense advertising costs in the period incurred. Advertising expense is included as a component of sales and marketing expense. Advertising expense was $1.1 million, $1.2 million and $1.2 million for the years ended December 31, 2010, 2011 and 2012, respectively. | ||||||||||||
Shipping and Handling | ||||||||||||
Cost related to the shipping and handling of our products is included in cost of goods sold for all periods presented. | ||||||||||||
Research and Development | ||||||||||||
Research and development costs are expensed as incurred. In conjunction with the development of our products, we incur certain software development costs. No costs have been capitalized because the period between achieving technological feasibility and completion of such software is relatively short and software development costs qualifying for capitalization have been insignificant. | ||||||||||||
Stock-Based Compensation | ||||||||||||
Stock-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value. We recognize these compensation costs net of an estimated forfeiture rate, and recognize compensation cost only for those shares expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the share-based payment awards. We estimate forfeiture rates based on our historical experience. | ||||||||||||
Income Taxes | ||||||||||||
We recognize deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. We record a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
We classify investments as cash equivalents if they are readily convertible to cash and have average maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of mutual money market funds issued or managed in the United States. At December 31, 2011 and 2012, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity. | ||||||||||||
As of December 31, 2012, $4.5 million of the $40.3 million of cash, cash equivalents, and marketable securities was held by our foreign subsidiaries. If these funds are needed for our operations in the U.S., we will be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations. | ||||||||||||
Property and Equipment | ||||||||||||
Property and equipment are recorded at cost less accumulated depreciation. Property and equipment are depreciated for financial reporting purposes using the straight-line method over the following estimated useful lives: machinery and equipment, furniture, fixtures and computer software, 3-5 years; leasehold improvements are amortized using the straight-line method over the shorter of the useful lives of the assets or the terms of the leases. Significant improvements to our property and equipment are capitalized while expenditures for maintenance and repairs are charged to expense in the period incurred. | ||||||||||||
The components of property and equipment consist of the following as of December 31, (in thousands): | ||||||||||||
2011 | 2012 | |||||||||||
Machinery and equipment | 11,577 | 14,810 | ||||||||||
Furniture, fixtures, and computer software | 854 | 1,159 | ||||||||||
Leasehold improvements | 1,034 | 1,926 | ||||||||||
Construction in progress | 855 | 909 | ||||||||||
Total property and equipment, at cost | 14,320 | 18,804 | ||||||||||
Less accumulated depreciation | (9,348 | ) | (11,657 | ) | ||||||||
Property and equipment, net | 4,972 | 7,147 | ||||||||||
Depreciation expense was $1.8 million, $2.2 million and $2.5 million for the years ended December 31, 2010, 2011 and 2012, respectively. | ||||||||||||
Concentration of Customers and Suppliers | ||||||||||||
A majority of our net revenue is derived from a limited number of customers. We currently have two customers that account for more than 10% of our total net revenue: Hewlett Packard, or HP, and Tektronix, Inc., or Tektronix. Our agreements with our original equipment manufacturers, or OEM, partners do not contain any minimum purchase commitments, do not obligate our OEM partners to purchase their storage solutions exclusively from us and may be terminated at any time upon notice from the applicable partner. | ||||||||||||
Net revenue by major customer is as follows (as a percentage of total net revenue): | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
HP | 57 | % | 74 | % | 68 | % | ||||||
NetApp, Inc. | 26 | % | — | % | — | % | ||||||
Tektronix | — | % | 6 | % | 10 | % | ||||||
Other customers less than 10% | 17 | % | 20 | % | 22 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
HP continues to account for a significant percentage of our sales. If our relationship with HP were disrupted or declined significantly, we would lose a substantial portion of our anticipated net revenue and our business could be materially harmed. We cannot guarantee that our relationship with HP or our other customers will expand or not otherwise be disrupted. | ||||||||||||
At December 31, 2011, our accounts receivable from HP were $22.3 million comprising 70% of our total accounts receivable. At December 31, 2012, our accounts receivable from HP were $17.0 million comprising 68% of our total accounts receivable. No other customer balance exceeded 10% of our total accounts receivable balance at December 31, 2011 or 2012. | ||||||||||||
We expect that the sale of our products to a limited number of customers will continue to account for a high percentage of net revenue for the foreseeable future. On October 31, 2011, we amended the Product Purchase Agreement originally entered into with HP on September 10, 2007 (the Amendment). The Amendment extends the agreement with HP for a five-year period through October 30, 2016. In addition, the Amendment provides that we will continue to comply with the contractually required cost reduction process and to support HP with respect to certain products or statements of work upon any assignment of the agreement for a specified period of time. The Amendment does not contain any minimum purchase commitments by HP. Simultaneously with the extension of the Product Purchase Agreement, we agreed to extend until October 30, 2016 the expiration date of the warrant previously issued to HP to purchase 1,602,489 shares of our common stock at the original exercise price of $2.40 per share. | ||||||||||||
We currently rely on a limited number of contract manufacturing partners to produce substantially all of our products. As a result, should any of our current manufacturing partners, such as Foxconn Technology Group, or parts suppliers not produce and deliver inventory for us to sell on a timely basis, operating results may be adversely impacted. | ||||||||||||
Long-lived asset impairment | ||||||||||||
We periodically review the recoverability of the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. An impairment in the carrying value of an asset group is recognized whenever anticipated future undiscounted cash flows from an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. | ||||||||||||
In September 2011, our primary AssuredUVS customer informed us that the AssuredUVS software would no longer be a component of its business strategy, resulting in significant declines in revenues for the Company. Our long-lived assets consisted of the intangible assets associated with our acquisition of certain identified Cloverleaf Communications, Inc., or Cloverleaf, assets acquired in January 2010. The impairment of these long-lived assets is now reported in discontinued operations (see Note 4), since we have ceased all ongoing operational activities as of December 31, 2012. | ||||||||||||
Valuation of Goodwill | ||||||||||||
We reviewed goodwill for impairment on an annual basis at November 30 and whenever events or changes in circumstances indicated the carrying value of an asset may not be recoverable. | ||||||||||||
Accounting standards required that a two-step impairment test be performed on goodwill. In the first step, we compared the fair value of our reporting unit to its carrying value. We determined the fair value of our reporting unit using a combination of the income approach and market capitalization approach. If the fair value of the reporting unit exceeded the carrying value of the net assets, goodwill was not impaired, and no further testing is required. If the carrying value of the net assets exceeded the fair value of the reporting unit, then we performed the second step in order to determine the implied fair value of the reporting unit’s goodwill and compared it to the carrying value of the reporting unit’s goodwill. If the carrying value of the reporting unit’s goodwill exceeded its implied fair value, then we recorded an impairment charge equal to the difference. | ||||||||||||
Under the income approach, we calculated the fair value of a reporting unit based on the present value of estimated future discounted cash flows. Under the market capitalization approach, valuation multiples were calculated based on operating data from publicly traded companies within our industry. Multiples derived from companies within our industry provided an indication of how much a knowledgeable investor in the marketplace would be willing to pay for a company. These multiples were applied to the operating data for the reporting unit to arrive at an indicated fair value. Significant management judgment is required in the forecasts of future operating results that were used in the estimated future discounted cash flow method of valuation. The estimates we used were consistent with the plans and estimates that we used to manage our business. We based our fair value estimates on forecasted revenue and operating costs along with business plans. Our forecasts considered the effect of a number of factors including, but not limited to, the current future projected competitiveness and market acceptance of the product, technological risk, the ease of use and ease of implementation of the product, the likely outcome of sales and marketing efforts and projected costs associated with product development, customer support and selling, general and administrative costs. It is possible, however, that the plans may change and that actual results may differ significantly from our estimates. | ||||||||||||
The changes in the carrying amount of goodwill are as follows during the years ended December 31, 2011 and 2012 (in thousands): | ||||||||||||
Storage Systems | Standalone Storage Software | Total | ||||||||||
Balance as of January 1, 2011 | ||||||||||||
Goodwill | $ | 40,700 | $ | 4,140 | $ | 44,840 | ||||||
Accumulated impairment losses | (40,700 | ) | — | (40,700 | ) | |||||||
Goodwill acquired during the year | — | — | — | |||||||||
Impairment losses | — | (4,140 | ) | (4,140 | ) | |||||||
Balance as of December 31, 2011 | ||||||||||||
Goodwill | 40,700 | 4,140 | 44,840 | |||||||||
Accumulated impairment losses | (40,700 | ) | (4,140 | ) | (44,840 | ) | ||||||
$ | — | $ | — | $ | — | |||||||
Storage Systems | Standalone Storage Software | Total | ||||||||||
Balance as of January 1, 2012 | ||||||||||||
Goodwill | $ | 40,700 | $ | 4,140 | $ | 44,840 | ||||||
Accumulated impairment losses | (40,700 | ) | (4,140 | ) | (44,840 | ) | ||||||
Goodwill acquired during the year | — | — | — | |||||||||
Impairment losses | — | — | — | |||||||||
Balance as of December 31, 2012 | ||||||||||||
Goodwill | 40,700 | 4,140 | 44,840 | |||||||||
Accumulated impairment losses | (40,700 | ) | (4,140 | ) | (44,840 | ) | ||||||
$ | — | $ | — | $ | — | |||||||
During September 2011, our primary AssuredUVS customer became delinquent on the settlement of its payables to us and upon our investigation it became evident that its financial resources were limited. It also informed us that it was changing its strategy, which would result in a significant decline in revenue for the Company, and we determined that the reporting unit was less than its carrying value. The impairment of the goodwill related to the reporting unit is now reported in discontinued operations (see Note 4), since we have ceased all ongoing operational activities as of December 31, 2012. | ||||||||||||
Allowance for Doubtful Accounts | ||||||||||||
We establish an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. We determine the allowance for doubtful accounts based on the aging of our accounts receivable balances and an analysis of our historical experience of bad debt write-offs. Bad debt expense was $0.0 million, $0.2 million and $0.0 million for the years ended December 31, 2010, 2011 and 2012, respectively, including $0.0 million, $0.2 million and $0.0 million in discontinued operations. | ||||||||||||
Balance sheet details are as follows, (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2011 | 2012 | |||||||||||
Balance, beginning of the year | $ | — | $ | 203 | ||||||||
Additions to allowance | 203 | 37 | ||||||||||
Balance, quarter ended | $ | 203 | $ | 240 | ||||||||
Recent Accounting Pronouncements | ||||||||||||
From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective will not have a material impact on our results of operations and financial position. |
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||
Net Loss Per Share | ' | ||||||||||||||||||||
Net Loss Per Share | |||||||||||||||||||||
Basic net loss per share, including continuing and discontinued operations, is calculated by dividing net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share, including continuing and discontinued operations, is computed by dividing net loss for the period by the weighted average number of shares of common stock outstanding during the period and including the dilutive effect of common stock that would be issued assuming conversion or exercise of outstanding warrants, stock options, share based compensation awards and other dilutive securities. No such items were included in the computation of diluted loss per share for the year ended December 31, 2010, 2011 or 2012 because we incurred a net loss in each of these periods and the effect of inclusion would have been anti-dilutive. | |||||||||||||||||||||
Outstanding equity awards not included in the calculation of diluted net loss per share because their effect was anti-dilutive were as follows: | |||||||||||||||||||||
December 31, 2010 | December 31, 2011 | December 31, 2012 | |||||||||||||||||||
Number of | Range of | Number of | Range of | Number of | Range of | ||||||||||||||||
Potential | Exercise Prices | Potential | Exercise Prices | Potential | Exercise Prices | ||||||||||||||||
Shares | Shares | Shares | |||||||||||||||||||
Stock options | 6,179,547 | $0.47 - $16.36 | 7,314,039 | $0.47 - $16.36 | 8,952,129 | $0.47 - $16.36 | |||||||||||||||
Unvested stock awards | 2,099,523 | $ | — | 2,221,205 | $ | — | 655,402 | $ | — | ||||||||||||
Warrants | 1,602,489 | $ | 2.4 | 1,602,489 | $ | 2.4 | 1,602,489 | $ | 2.4 | ||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | |||
Dec. 31, 2012 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
Acquisitions | ||||
Cloverleaf | ||||
On January 26, 2010, or the acquisition date, Dot Hill acquired 100% of the voting equity interests of Cloverleaf Communications Inc., a Delaware corporation, or Cloverleaf. Prior to the acquisition, Cloverleaf was a privately held software company focused on heterogeneous storage virtualization and unified storage technologies. The acquisition of Cloverleaf was intended to broaden Dot Hill’s market opportunities and help accelerate Dot Hill’s transition from a provider of storage arrays to a provider of storage solutions and software. The Cloverleaf acquisition also provided Dot Hill with a new team of software developers and other professionals located in Israel. | ||||
Dot Hill acquired all of the outstanding equity interests in Cloverleaf in exchange for: (i) $0.7 million of cash; (ii) 4,758,530 shares of Dot Hill common stock valued at $8.1 million, or $1.71 per share, which represents the closing price of Dot Hill common stock on the acquisition date; (iii) $1.8 million of specified assumed outstanding liabilities of Cloverleaf at the acquisition date, and (iv) 327,977 shares of restricted common stock that were issued to the employees of Cloverleaf who became employees of Dot Hill on the acquisition date pursuant to Dot Hill’s 2009 Equity Incentive Plan. | ||||
Dot Hill also incurred direct transaction costs in connection with the acquisition of approximately $0.8 million, of which $0.5 million was recognized as expense in the fourth quarter of 2009 and $0.3 million was recognized as expense in the first quarter of 2010. Dot Hill recorded these costs as general and administrative expenses in its statement of operations. The majority of these costs were paid in the first quarter of 2010. Equity issuance costs incurred in connection with the transaction were not material. | ||||
Dot Hill did not assume or exchange any Cloverleaf stock options or other stock-based payment awards in connection with the acquisition of Cloverleaf. Under the terms of the Merger Agreement, all Cloverleaf stock options and warrants that were outstanding immediately prior to the acquisition date and not exercised prior to the acquisition date expired and became null and void as of the acquisition date. All outstanding options expired and had no fair value. In connection with the employment of certain Cloverleaf employees, Dot Hill granted 327,977 shares of restricted common stock. The fair value of the 327,977 shares of restricted common stock that were issued on the acquisition date will be recognized as compensation cost in the post-combination financial statements over the period in which the shares of restricted common stock vest. These shares vest as follows: one-third of such shares vest upon issuance; one-third of such shares vest one year from the date of issuance; and one-third of such shares vest two years from the date of issuance. | ||||
The consideration transferred in connection with the acquisition of Cloverleaf approximated $8.8 million as follows (in thousands): | ||||
Cash consideration | $ | 703 | ||
Dot Hill common stock issued to Cloverleaf | 8,132 | |||
Consideration transferred | $ | 8,835 | ||
The acquisition of Cloverleaf has been accounted for under the purchase method of accounting in accordance with the requirements of Accounting Standard Codification topic 805 “Business Combinations”. Under the purchase method of accounting, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. | ||||
The allocation of the acquisition date fair value of the total consideration transferred in connection with the acquisition of Cloverleaf is summarized below (in thousands): | ||||
Cash | $ | 78 | ||
Accounts receivable | 55 | |||
Inventory | 67 | |||
Other current assets | 37 | |||
Property and equipment | 452 | |||
Other non-current assets | 23 | |||
Amortizable intangible assets: | ||||
Acquired software | 6,375 | |||
Trade name | 181 | |||
Goodwill | 4,140 | |||
Accounts payable | (269 | ) | ||
Current maturities of long-term loan | (775 | ) | ||
Accrued compensation | (401 | ) | ||
Accrued expenses | (172 | ) | ||
Accrued Cloverleaf transaction costs | (924 | ) | ||
Other non-current liabilities | (32 | ) | ||
$ | 8,835 | |||
The goodwill of $4.1 million and the acquired software of $6.4 million arising from the Cloverleaf acquisition was deemed impaired and was written off as of December 31, 2011 (see Note 6). | ||||
Revenue of $0.7 million, $1.6 million and $0.4 million, and a net loss of $6.0 million, $13.6 million and $4.5 million attributable to the operations of Cloverleaf since the acquisition date are included in Loss from Discontinued Operations for the years ended December 31, 2010, 2011 and 2012 respectively (see Note 4). | ||||
Pro forma results | ||||
The following unaudited pro forma financial information presents the combined results of operations of Dot Hill and Cloverleaf as if the acquisition had occurred on January 1, 2010 and excludes certain non-recurring charges related to the acquisition. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated results of operations or financial condition of Dot Hill that would have been reported had the acquisition been completed as of the dates presented, and should not be taken as representative of the future consolidated results of operations or financial condition of Dot Hill. | ||||
(in thousands, except per share data) | Year Ended December 31, 2010 | |||
Net revenue | $ | 252,571 | ||
Net loss | (13,237 | ) | ||
Basic and diluted net loss per share | $ | (0.25 | ) |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operations | ' | |||||||||||
Discontinued Operations | ||||||||||||
As of September 30, 2011, we identified a change in circumstances that indicated the carrying amount of our long-lived assets may not be recoverable, as our primary AssuredUVS customer informed us that the AssuredUVS software would no longer be a component of its business strategy, which would result in a significant decline in revenues for the Company. Our long-lived assets consisted of the intangible assets associated with our acquisition in January 2010 of certain identified Cloverleaf assets, with an original carrying value of $5.0 million and property and equipment of $1.2 million. | ||||||||||||
Since we did not have an immediate replacement for our AssuredUVS customer, management’s forecasted undiscounted cash flows indicated that the assets were potentially not recoverable, and proceeded to estimate the fair value of each long-lived asset. Property and equipment consisted of mostly machinery and equipment used for testing and development of our AssuredUVS technology. Management determined that carrying value approximated fair value, as property was either acquired in the 2010 acquisition of Cloverleaf, had been purchased subsequently, or could be re-deployed, establishing recent evidence of fair value. It was depreciated over a 3 – 5 year estimated useful life. | ||||||||||||
Intangible assets consisted primarily of acquired software with a net book value of $4.9 million and a trade name with a net book value of $0.1 million. We determined the fair value of the acquired software by estimating the replacement cost of the software, taking into account both the software as acquired and subsequent development work, as well as the business alternatives we were considering and the corresponding value of the software in these alternative approaches. We estimated the value of the software based on the probabilities of each of the business alternatives. We determined the fair value of the trade name using an income approach and considered the fact that the software’s trade name at the time of acquisition was no longer being used. | ||||||||||||
Our impairment analysis at September 30, 2011 identified $2.9 million of impaired long-lived assets, consisting entirely of intangible assets recognized as part of the Cloverleaf acquisition in 2010. Long-lived asset impairment charges are recorded consistent with our treatment of related amortization expense specific to each acquired intangible asset. We recorded $2.8 million of impaired acquired software and $0.1 million of impaired acquired trade name as a component of cost of goods sold for the year ended December 31, 2011. | ||||||||||||
We also evaluated goodwill for impairment and determined that the reporting unit was less than its carrying value. Our valuation resulted in recognition of an impairment charge to goodwill of $4.1 million during the year ended December 31, 2011. | ||||||||||||
In February 2012, our Board of Directors approved a plan to exit our AssuredUVS business and close down our Israel Technology Development Center (see Note 8), at which time it was determined that the valuations at that date were appropriate. During the second quarter of 2012, we explored the potential sale of the AssuredUVS business, but were unsuccessful in locating a buyer and ended efforts to sell the business or its component assets as of June 30, 2012. Accordingly, we recognized an impairment of $0.2 million of property, plant and equipment and $1.6 million for the remaining value of acquired software as a component of cost of goods sold as of June 30, 2012. The AssuredUVS business is now recorded in discontinued operations, since we have ceased all ongoing operational activities as of December 31, 2012. | ||||||||||||
The following is a summary of the components of loss from discontinued operations for the years ended December 31, 2010, 2011 and 2012 (in thousands): | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Net revenue | $ | 656 | $ | 1,634 | $ | 360 | ||||||
Cost of goods sold | 2,011 | 5,284 | 2,501 | |||||||||
Gross profit | (1,355 | ) | (3,650 | ) | (2,141 | ) | ||||||
Operating expenses: | ||||||||||||
Research and development | 3,465 | 4,355 | 741 | |||||||||
Sales and marketing | 327 | 651 | 56 | |||||||||
General and administrative | 766 | 762 | 765 | |||||||||
Restructuring charge | 107 | — | 844 | |||||||||
Goodwill impairment charge | — | 4,140 | — | |||||||||
Total operating expenses | 4,665 | 9,908 | 2,406 | |||||||||
Operating loss | (6,020 | ) | (13,558 | ) | (4,547 | ) | ||||||
Other income (expense), net | 1 | (2 | ) | (1 | ) | |||||||
Loss from discontinued operations | $ | (6,019 | ) | $ | (13,560 | ) | $ | (4,548 | ) | |||
The following is a summary of the carrying amounts of major classes of assets and liabilities related to discontinued operations as of December 31, 2011 and 2012 (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2011 | 2012 | |||||||||||
Cash and cash equivalents | $ | — | $ | — | ||||||||
Inventories | 56 | — | ||||||||||
Prepaid expenses and other assets | 110 | 5 | ||||||||||
Total current assets | 166 | 5 | ||||||||||
Property and equipment, net | 1,031 | — | ||||||||||
Intangible assets, net | 1,824 | — | ||||||||||
Other assets | 54 | 55 | ||||||||||
Total assets | 3,075 | 60 | ||||||||||
Accounts payable | 203 | 7 | ||||||||||
Accrued compensation | 372 | — | ||||||||||
Accrued expenses | 232 | 20 | ||||||||||
Deferred revenue | 319 | — | ||||||||||
Restructuring accrual | — | 206 | ||||||||||
Total current liabilities | 1,126 | 233 | ||||||||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2011 | 2012 | |||||||
Purchased parts and materials | $ | 3,994 | $ | 3,051 | ||||
Finished goods | 1,257 | 1,986 | ||||||
Total inventory | $ | 5,251 | $ | 5,037 | ||||
Inventories are valued at the lower of cost (first-in, first-out method) or market value. The valuation of production inventory requires us to estimate excess or obsolete inventory. The determination of excess or obsolete inventory requires us to estimate the future demand for our products. Our markets are volatile, subject to technological risks and price changes and inventory reduction programs by our customers. In addition, we are required to make last time buys of certain components on occasion. These factors result in a risk that we will forecast incorrectly and purchase excess inventories of particular products or have commitments to purchase excess inventory components from our suppliers. As a result, actual demand will differ from forecasts, and such a difference has in the past and may in the future have a material effect on our financial statements. Any write downs to inventory due to the existence of excess quantities, physical obsolescence, changes in pricing, damage, or other causes establish a new cost basis for the inventory. When we sell or dispose of reserved inventory the new cost basis is charged to cost of sales. Service inventory is amortized ratably over the estimated life of the related product series. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Intangible Assets | ' | |||||||||||||
Intangible Assets | ||||||||||||||
Identifiable intangible assets are as follows (in thousands): | ||||||||||||||
December 31, 2011 | ||||||||||||||
Estimated Useful | Gross | Accumulated | Net | |||||||||||
Life | Amortization | |||||||||||||
RaidCore technology | 4 years | $ | 4,256 | $ | (3,477 | ) | $ | 779 | ||||||
NAS technology | 3 years | 214 | (214 | ) | — | |||||||||
Software | 3 years | 2,050 | (228 | ) | 1,822 | |||||||||
Total intangible assets | $ | 6,520 | $ | (3,919 | ) | $ | 2,601 | |||||||
December 31, 2012 | ||||||||||||||
Estimated Useful | Gross | Accumulated | Net | |||||||||||
Life | Amortization | |||||||||||||
RaidCore technology | 4 years | $ | 4,256 | $ | (4,256 | ) | $ | — | ||||||
Total intangible assets | $ | 4,256 | $ | (4,256 | ) | $ | — | |||||||
As of December 31, 2011, we recorded a $2.8 million impairment of our acquired internally developed software and $0.1 million impairment of our trade name (see Note 4). Effective with the February 6, 2012 announced restructuring plan, the AssuredUVS product family would no longer be marketed to customers and the underlying UVS technology would either be disposed of through a sale to a potential acquirer or, in the event a buyer could not be located, abandoned. Accordingly, the acquired software was temporarily idled, and no additional amortization expense was incurred subsequent to the February 6, 2012 announcement of the 2012 restructuring plan. In accordance with ASC 350, we evaluated the software for impairment as of February 6, 2012. At the time of that evaluation we were actively marketing the software for sale and believed the cash flows from a potential sale would have recovered the recorded book value. We continued actively marketing the software through June 2012. However, we were unsuccessful and all efforts toward locating a potential acquirer ceased as of June 30, 2012. Accordingly, we recognized an impairment for the remaining $1.6 million of acquired software as a component of cost of goods sold as of June 30, 2012. Additionally we are now reporting the underlying business as discontinued operations, since we have ceased all ongoing operational activities as of September 30, 2012. Amortization expense related to intangible assets totaled $0.8 million, $1.1 million and $1.1 million, for the years ended December 31, 2012, 2011 and 2010, respectively. |
Product_Warranties
Product Warranties | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||||||
Product Warranties | ' | |||||||||||
Product Warranties | ||||||||||||
Our standard warranty provides that if our systems do not function to published specifications, we will repair or replace the defective component or system without charge generally for a period of approximately three years. We generally extend to our customers the warranties provided to us by our suppliers, and accordingly, the majority of our warranty obligations to customers are typically intended to be covered by corresponding supplier warranties. For warranty costs not covered by our suppliers, we provide for estimated warranty costs in the period the revenue is recognized. There can be no assurance that our suppliers will continue to provide such warranties to us in the future or that our warranty obligations to our customers will be covered by corresponding warranties from our suppliers, the absence of which could have a material effect on our financial statements. Estimated liabilities for product warranties are included in accrued expenses. | ||||||||||||
In October 2009, we discovered a quality issue associated with certain power supply devices provided by a long-term component supplier, which resulted in a higher than expected level of power supply failures to us and our customers. While we were able to promptly identify and resolve the cause of the failures, we are required to provide replacement products or make repairs to the affected power supply units that had been sold between March and October 2009. Through June 30, 2011, our component supplier had repaired all of the faulty power supplies at no cost to us and reimbursed us for our out-of-pocket costs, which has constituted a reimbursement to customers for certain out-of-pocket costs they incurred in connection with these power supply failures. The total amount reimbursed to us by our component supplier approximated $1.0 million through June 30, 2011. | ||||||||||||
In the second and third quarters of 2011, a material customer provided us with a framework estimating the potential claims precipitated by the power supply failures. As previously disclosed, the customer’s preliminary framework of potential claims provided to us included additional costs related to the customer’s internal overhead for other internal indirect costs, in addition to third-party direct costs. Based on preliminary discussions for settlement and our analysis of the framework provided by the customer, including future potential claims through the warranty period, we estimated that we had incurred a probable loss of approximately $2.8 million. Consequently, in addition to the $1.3 million previously recognized as of June 30, 2011, we recorded an estimated liability of $1.5 million as of September 30, 2011 within “Accrued expenses” on our condensed consolidated balance sheet. | ||||||||||||
Negotiations continued with our customer throughout the fourth quarter of 2011 into the first half of 2012. Based on the results of ongoing negotiations with the material customer, we increased our estimated liability at December 31, 2011 to $5.5 million, resulting in a charge of $2.7 million during the fourth quarter of 2011 within “Accrued expenses” on our condensed consolidated balance sheet, gross of any third-party recoveries. | ||||||||||||
A final settlement with this material customer was reached during the second quarter of 2012. The terms of the agreement required an immediate payment of $2.0 million, and an estimated remaining liability of approximately $1.8 million as of December 31, 2012, a portion of which relates to future price concessions and rebates based on sales volumes through December 31, 2012. The remaining portion relates to costs for extension of warranty coverage on these units. While our estimated liability relating to failed power supply units is subject to some uncertainty, based on our current expectation of sales volumes with this material customer, we do not believe the incurrence of an additional loss is either probable or reasonably possible at this time. | ||||||||||||
During the second quarter of 2011, based on the advice of legal counsel, we established that our component supplier is contractually obligated to reimburse us for fair and reasonable costs we incur with our customers associated with these power supply failures. Our component supplier had continued to re-work and distribute to our customer the affected population of power supplies at no cost to us. In addition, at the time, our collection experience with similar amounts already reimbursed to us by our supplier and our belief that our component supplier and its parent companies had the financial ability to continue to reimburse us for any additional costs we may incur, we recorded a current asset within “Prepaid expenses and other assets” on our consolidated balance sheet of $1.3 million as of June 30, 2011. | ||||||||||||
During the third quarter of 2011, as the claims from our customer became clearer, we commenced negotiations with our component supplier for fair and reasonable costs that we have and are likely to incur through the warranty period associated with this component failure. Originally we determined that the supplier was unlikely to make an up-front cash payment for the original settlement amount of $1.3 million, but it indicated a willingness to provide some form of reimbursement for costs incurred, in the form of cash and/or note receivable of $0.5 million plus future product rebates. Based on our judgment at the time, we reduced the previously recorded current asset of $1.3 million within “Prepaid expenses and other assets” to $0.5 million as of September 30, 2011. We continued to negotiate this settlement with our supplier and during the second quarter of 2012, the supplier signed a final settlement agreement providing for additional reimbursements above what was recognized as of September 30, 2011. Pursuant to the settlement, the supplier agreed to cash consideration of $1.2 million, of which we received $0.9 million subsequent to the signing of the settlement agreement, with the remaining $0.3 million to be received in quarterly installments during 2013. Additionally, our supplier committed to product rebates and/or price concessions on product orders for a period of 39 months from the execution of the settlement agreement, in return for our agreement to release our supplier from all obligations relating to the power supply failures known by us to date. This agreement is not subject to any required future purchases. | ||||||||||||
In addition, we have commenced discussions with our General Liability and Errors and Omissions Insurance and underwriters and will continue to pursue our rights to cover any damages we incur and that are not reimbursed by our supplier. The insurance company has issued a reservation of rights letter to us and at this time, it is not possible to estimate to what extent the residual amounts, if any, we will be covered by our carrier. As of December 31, 2012 we have not assumed or recorded any insurance reimbursement. | ||||||||||||
To the extent our settlement agreements with our customer and our component supplier are not on mutually beneficial terms, or our component supplier does not continue to reimburse us for the expenses incurred by us or our customers, and we are unsuccessful in recovering such expenses from our insurance provider, we could incur additional expenses which could potentially have a material effect on our financial statements and liquidity. | ||||||||||||
Our warranty accrual and cost activity is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Balance, beginning of year | $ | 993 | $ | 982 | $ | 6,871 | ||||||
Charges to operations | 2,623 | 8,244 | 2,116 | |||||||||
Deductions for costs incurred | (2,634 | ) | (2,355 | ) | (4,532 | ) | ||||||
Balance, end of year | $ | 982 | $ | 6,871 | $ | 4,455 | ||||||
The table above does not include the corresponding $1.2 million benefit recorded within cost of sales in 2011 related to the current asset established for the recovery of such costs incurred by our customer which are to be reimbursed to us by our component supplier. There were no additional charges recorded in 2012 related to the liability established for certain third-party material and service costs incurred by our customer related to replacing failed power supplies. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring | ' | |||||||||||
Restructuring | ||||||||||||
2008 Plan | ||||||||||||
In December 2008, our management approved, committed to, and initiated a restructuring plan, or the 2008 Plan, to improve efficiencies in our operations, which was largely driven by our plan to consolidate our facility in Carlsbad, California into the Longmont, Colorado facility. As a result of this relocation, we terminated approximately 70 California employees whose positions were relocated to Colorado and incurred approximately $1.5 million in severance-related costs, all of which was recognized and paid as of December 31, 2010. | ||||||||||||
As part of the 2008 Plan, we also incurred contract termination costs of $3.6 million since the inception of the 2008 Plan through September 30, 2011. We record charges for contract termination and other associated costs as restructuring expense, which is presented as a separate component within operating expenses. Accrued contract termination and other associated costs are recorded in the restructuring accrual line on our consolidated balance sheets. We expect to pay these contract lease termination costs over the remainder of the lease term ending in January 2013. Based on our estimates, we do not expect to receive any material amounts of sublease income through the remainder of the lease term. | ||||||||||||
The following table summarizes our 2008 Plan activities (in thousands): | ||||||||||||
Contract Termination and Other Associated Costs | ||||||||||||
Accrued restructuring balance as of December 31, 2010 | $ | 1,500 | ||||||||||
Restructuring plan expense | 621 | |||||||||||
Cash payments | (909 | ) | ||||||||||
Accrued restructuring balance as of December 31, 2011 | 1,212 | |||||||||||
Restructuring plan expense | 57 | |||||||||||
Adjustments to restructuring plan | (247 | ) | ||||||||||
Cash payments | (877 | ) | ||||||||||
Accrued restructuring balance as of December 31, 2012 | $ | 145 | ||||||||||
The adjustment to the 2008 Plan resulted from certain credits received in the first quarter of 2012 for previously paid common area maintenance (CAM) charges relating to our lease of the Carlsbad, California facility. We recorded this benefit as a reduction of restructuring expense, which is presented as a separate component within operating expenses. | ||||||||||||
During July 2012, we signed an amendment to our lease of the Carlsbad facility abating approximately $0.2 million in rent and other operating expenses in lieu of allowing the landlord to use the facility for the remainder of the lease term. | ||||||||||||
2010 Plan | ||||||||||||
In the second quarter of 2010, our management approved, committed to, and initiated a restructuring and cost reduction plan, or the 2010 Plan, to better align our resources in order to lower our breakeven point. The 2010 Plan included severance and related costs for the reduction of approximately 10% of our workforce, and fees associated with the acceleration of the closure of our Carlsbad, California facility. As a result of these actions, we intended to terminate approximately 26 employees located in the United States, of which 25 had been terminated as of September 30, 2011. We expected to incur approximately $0.4 million in severance-related costs, all of which were recognized as of December 31, 2010. Accrued severance-related costs are recorded in the restructuring accrual line on our consolidated balance sheets. The remainder of the severance and related restructuring costs attributable to our 2010 Plan were paid out in the third quarter of 2011. | ||||||||||||
As part of the 2010 Plan, we also incurred contract termination costs of $0.3 million since the inception of the 2010 Plan through September 30, 2011 for facility lease and other associated costs that we continued to incur without economic benefit, as we exited the remaining portion of our Carlsbad, California facility. We record charges for contract termination costs and other associated costs as restructuring expense, which is presented as a separate component within operating expenses. Accrued contract termination and other associated costs are recorded in the restructuring accrual line on our consolidated balance sheets. Based on our estimates, we do not expect to receive any material amounts of sublease income through the remainder of the lease term. | ||||||||||||
The following table summarizes our 2010 Plan activities (in thousands): | ||||||||||||
Severance and Related Costs | Contract Termination and Other Associated Costs | Total | ||||||||||
Accrued restructuring balance as of December 31, 2010 | $ | 20 | $ | 144 | $ | 164 | ||||||
Restructuring plan expense | — | 62 | 62 | |||||||||
Cash payments | (20 | ) | (90 | ) | (110 | ) | ||||||
Accrued restructuring balance as of December 31, 2011 | $ | — | $ | 116 | 116 | |||||||
Restructuring plan expense | — | 6 | 6 | |||||||||
Adjustments to restructuring plan | — | (21 | ) | (21 | ) | |||||||
Cash payments | — | (87 | ) | (87 | ) | |||||||
Accrued restructuring balance as of December 31, 2012 | $ | — | $ | 14 | $ | 14 | ||||||
The adjustment to the 2010 Plan resulted from certain credits received in the first quarter 2012, for previously paid CAM charges relating to our lease of the Carlsbad, California facility. We recorded this benefit as a reduction of restructuring expense, which is presented as a separate component within operating expenses. | ||||||||||||
2012 Plan | ||||||||||||
In the first quarter 2012, our management approved, committed to, and initiated a restructuring and cost reduction plan, or the 2012 Plan, that is associated with the closure of our Israel Technology Development Center. The 2012 Plan is designed to re-align our software investments to focus on accelerating the development of embedded software features, in order to launch a competitive set of mid-range storage array products in 2012, and to provide more differentiated entry-level products for both OEM and channel customers. As a result of these actions, we terminated all employees located in our Israel Technology Development Center as of December 31, 2012. We incurred a total of $0.4 million in severance-related costs as of December 31, 2012. Accrued severance-related costs are recorded in the restructuring accrual line on our consolidated balance sheets. The majority of severance related restructuring costs attributable to our 2012 Plan were paid out in the second quarter of 2012, with the remainder paid out in the third quarter of 2012. Substantially all of our 2012 Plan workforce reductions were completed by July 31, 2012. | ||||||||||||
As part of the 2012 Plan, we also expect to incur approximately $0.4 million in contract termination costs for facility lease and other associated costs that we continue to incur without economic benefit, as we exited our Petah Tivka, Israel facility. We record charges for contract termination costs and other associated costs as restructuring expense, which is presented as a separate component within operating expenses. Accrued contract termination and other associated costs are recorded in the restructuring accrual line on our consolidated balance sheets. We paid the majority of the contract lease termination costs over the remainder of the facility lease term ending in December 2012. Approximately $0.2 million of our contractual commitments are expected to remain obligations of the Company through December 2013. | ||||||||||||
The majority of the activities comprising the 2012 Plan were completed by the end of 2012. | ||||||||||||
The following table summarizes our 2012 Plan activities (in thousands): | ||||||||||||
Severance and Related Costs | Contract Termination and Other Associated Costs | Total | ||||||||||
Restructuring plan charges | $ | 440 | $ | 332 | $ | 772 | ||||||
Reclassification of customer deposits | — | 206 | 206 | |||||||||
Cash payments | (440 | ) | (332 | ) | (772 | ) | ||||||
Accrued restructuring balance as of December 31, 2012 | $ | — | $ | 206 | $ | 206 | ||||||
As part of the 2012 Plan, the Company announced that it will no longer support the UVS product effective March 31, 2013. The adjustment to the 2012 Plan represents customer prepaid UVS maintenance agreements for terms covering periods after March 31, 2013 that we expect will require future refunds to those customers impacted by this decision. As these were previously recognized as a component of deferred revenue, there was no impact to earnings, but this adjustment reflects a reclassification within the balance sheet as of December 31, 2012. |
Credit_Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2012 | |
Line of Credit Facility [Abstract] | ' |
Credit Facilities | ' |
Credit Facilities | |
We maintain a credit facility with Silicon Valley Bank for cash advances and letters of credit of up to an aggregate of $30 million based upon an advance rate dependent on certain concentration limits within eligible accounts receivable. These limitations exclude certain eligible customer receivables if an individual customer account balance exceeds 25, 50 or 85 percent of the total eligible accounts receivable, depending on the customer, as defined by our Loan and Security Agreement with Silicon Valley Bank. Borrowings under the credit facility bear interest at the prime rate, which was 4% at December 31, 2012, and are secured by substantially all of our accounts receivable, deposit and securities accounts. The agreement provides for a negative pledge on our inventory and intellectual property, subject to certain exceptions, and contains usual and customary covenants for an arrangement of its type, including an obligation that we maintain at all times a net worth, as defined in the agreement, of $50 million (subject to certain increases). The agreement also includes provisions to increase the financing facility by $20 million subject to our meeting certain requirements, including $40 million in borrowing base for the immediately preceding 90 days, and Silicon Valley Bank locating a lender willing to finance the additional facility. In addition, if our cash and cash equivalents net of the total amount outstanding under the credit facility fall below $20 million (measured on a rolling three-month basis), the interest rate will increase to prime plus 1% and additional restrictions will apply. Our credit facility also provides for a cash management services sublimit under the revolving credit line of up to $0.3 million. | |
During the second quarter of 2012, we amended our credit agreement with Silicon Valley Bank. The amendment extends the maturity date to July 21, 2015 and amended certain other terms of the credit agreement, which we do not believe significantly impacts our financial position. As of December 31, 2012 we had no outstanding letters of credit and there was $2.8 million outstanding under the Silicon Valley Bank line of credit. There was $16.8 million available for borrowing under the agreement as of December 31, 2012. We are currently in compliance with all covenant requirements. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 46,168 | $ | 46,168 | $ | — | $ | — | $ | — | ||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 40,315 | $ | 40,315 | $ | — | $ | — | $ | — | ||||||||||
The short-term nature of our all of our financial instruments expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market interest rates. There were no transfers between Level I and Level II inputs for any of our assets measured on a recurring basis during the reporting period. | ||||||||||||||||||||
Assets Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
2011 | ||||||||||||||||||||
Property and equipment, net | $ | 1,150 | $ | — | $ | — | $ | 1,150 | $ | — | ||||||||||
Software | 2,050 | — | — | 2,050 | (2,807 | ) | ||||||||||||||
Trade Name | — | — | — | — | (121 | ) | ||||||||||||||
Goodwill | — | — | — | — | (4,140 | ) | ||||||||||||||
$ | (7,068 | ) | ||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | 31-Dec-12 | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
Property and equipment, net | $ | — | $ | — | $ | — | $ | — | $ | (244 | ) | |||||||||
Software | — | — | — | — | (1,647 | ) | ||||||||||||||
$ | (1,891 | ) | ||||||||||||||||||
Property and equipment, net with a carrying amount of $0.7 million as of June 30, 2012 was tested for impairment using significant unobservable inputs (level 3) as part of our measurement of fair value for long-lived assets held and used and included as a component of our ITC reporting unit. We identified $0.2 million of property and equipment, net that was impaired, and included within our ITC asset group as of December 31, 2012. | ||||||||||||||||||||
Property and equipment, net with a carrying amount of $1.2 million as of December 31, 2011 was tested for impairment using significant unobservable inputs (level 3) as part of our measurement of fair value for long-lived assets held and used and included as a component of our ITC reporting unit. We did not identify any impaired assets classified as property and equipment, net and included within our ITC asset group as of December 31, 2011. | ||||||||||||||||||||
Software acquired as part of our Cloverleaf acquisition in 2010 with a carrying amount of $4.9 million was written down to its fair value of $2.1 million, resulting in an impairment charge of $2.8 million, which was included in earnings for the year-ended December 31, 2011. | ||||||||||||||||||||
The iSNTM trade name acquired as part of our Cloverleaf acquisition in 2010 with a carrying amount of $0.1 million was written down to its fair value of $0.0 million, resulting in an impairment charge of $0.1 million, which was included in earnings for year-ended December 31, 2011. | ||||||||||||||||||||
Goodwill acquired as part of our Cloverleaf acquisition in 2010 with a carrying amount of $4.1 million was written down to its fair value of $0.0 million, resulting in an impairment charge of $4.1 million, which was included in earnings for the year-ended December 31, 2011. | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, notes payable and certain other long-term liabilities. The carrying values on our balance sheet of our cash and cash equivalents, accounts receivable, accounts payable, notes payable, credit facility borrowings and contingent consideration due to Ciprico, Inc., or Ciprico, in connection with the acquisition of certain intangible assets, approximate their fair values due to their short maturities. | ||||||||||||||||||||
The following disclosures relate to financial instruments for which the ending balances at December 31, 2011 and December 31, 2012, are not carried at fair value in their entirety on the consolidated balance sheets. These tables present the carrying value and fair value, by fair value hierarchy, of our financial instruments, excluding cash and cash equivalents at December 31, 2011 and 2012, respectively (in thousands). | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, 2011 | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
Accounts receivable | $ | 31,697 | $ | — | $ | 31,697 | $ | — | $ | — | ||||||||||
Accounts payable | $ | 31,434 | $ | — | $ | 31,434 | $ | — | $ | — | ||||||||||
Notes payable | $ | 71 | $ | — | $ | 71 | $ | — | $ | — | ||||||||||
Contingent consideration due to Ciprico | $ | 100 | $ | — | $ | 100 | $ | — | $ | — | ||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, 2012 | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
Accounts receivable | $ | 25,025 | $ | — | $ | 25,025 | $ | — | $ | — | ||||||||||
Accounts payable | $ | 22,659 | $ | — | $ | 22,659 | $ | — | $ | — | ||||||||||
Credit facility borrowings | $ | 2,800 | $ | — | $ | 2,800 | $ | — | $ | — | ||||||||||
The short-term nature of our all of our financial instruments expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market interest rates. | ||||||||||||||||||||
The note payable owed to the former owners of Ciprico was initially determined by discounting both principal and interest cash flows expected to be paid using a discount rate for similar instruments with adjustments we believe a market participant would consider in determining fair value. As the final installment of this note payable was settled in the first quarter 2012, the short-term nature is such that the carrying value approximates market value. | ||||||||||||||||||||
Our contingent consideration to the former owners of Ciprico included assumptions about estimated future sales of our AssuredVRA technology over the agreed-upon royalty term, of which approximately 6.67% was to be paid to Ciprico under the royalty agreement. This valuation is sensitive to changes in customer demand and forecasted sales of our AssuredVRA technology through March 31, 2012. The final installment of this obligation was settled in the second quarter of 2012 and the short-term nature is such that the carrying value approximates market value. There were no transfers between Level I and Level II inputs for any of our assets measured on a recurring basis during the reporting period. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Components of income (loss) from continuing operations before taxes are as follows for the years ended December 31, (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Income (loss) from continuing operations before taxes: | |||||||||||||
U.S. | $ | (7,448 | ) | $ | (6,229 | ) | $ | (7,211 | ) | ||||
Foreign | 429 | (2,106 | ) | (2,442 | ) | ||||||||
Total income (loss) from continuing operations before taxes | $ | (7,019 | ) | $ | (8,335 | ) | $ | (9,653 | ) | ||||
Components of the income tax provision (benefit) are as follows for the years ended December 31, (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State, local and foreign | 213 | 129 | 749 | ||||||||||
213 | 129 | 749 | |||||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State, local and foreign | — | — | — | ||||||||||
— | — | — | |||||||||||
Total income tax provision | $ | 213 | $ | 129 | $ | 749 | |||||||
The reconciliation of the income tax provision computed using the federal statutory income tax rate to the recognized income tax provision (benefit) is as follows for the years ended December 31, (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Federal statutory rate | $ | (2,386 | ) | $ | (2,834 | ) | $ | (3,282 | ) | ||||
State and local income taxes, net of federal benefit | (153 | ) | (85 | ) | (16 | ) | |||||||
State rate change and other adjustments | 737 | 160 | 531 | ||||||||||
Increase in valuation allowance | 1,400 | 1,490 | 597 | ||||||||||
Foreign tax differential | 70 | 816 | 915 | ||||||||||
Research and development credits | (48 | ) | (49 | ) | 127 | ||||||||
Share based compensation | 378 | 402 | 518 | ||||||||||
Uncertain tax positions | (2 | ) | (46 | ) | 767 | ||||||||
Adjustments to deferred tax assets | — | — | 525 | ||||||||||
Other | 217 | 275 | 67 | ||||||||||
Income tax provision | $ | 213 | $ | 129 | $ | 749 | |||||||
The tax effect of temporary differences that give rise to deferred income taxes are as follows as of December 31, (in thousands): | |||||||||||||
2011 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss and tax credit carry forwards | $ | 88,675 | $ | 93,547 | |||||||||
Inventory reserve and uniform capitalization | 1,959 | 2,016 | |||||||||||
Stock options and warrants | 2,807 | 2,330 | |||||||||||
In-process research and development | 241 | 237 | |||||||||||
Allowance for bad debts | 265 | 232 | |||||||||||
Vacation accrual | 354 | 386 | |||||||||||
Deferred rent | 283 | 429 | |||||||||||
Landlord provided leasehold improvements | — | 317 | |||||||||||
Deferred revenue | — | 376 | |||||||||||
Warranty accrual | 494 | 937 | |||||||||||
Depreciation and amortization | 1,579 | 695 | |||||||||||
Other accruals and reserves | 4,252 | 701 | |||||||||||
Acquired intangibles | 1,386 | 1,336 | |||||||||||
Total deferred tax assets | 102,295 | 103,539 | |||||||||||
Deferred tax liabilities: | |||||||||||||
State taxes | (3,568 | ) | (3,603 | ) | |||||||||
Cloverleaf intangibles | (456 | ) | — | ||||||||||
Other | — | (205 | ) | ||||||||||
Total deferred income tax liabilities | (4,024 | ) | (3,808 | ) | |||||||||
Valuation allowance | (98,271 | ) | (99,731 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
As a result of certain realization requirements, the table of deferred tax assets and liabilities shown above does not include deferred tax assets for net operating losses as of December 31, 2012 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity will be increased by $0.3 million if and when such excess tax benefits are recognized through current taxes payable. The Company uses ASC 740 ordering when determining when excess tax benefits or shortfalls have been realized. | |||||||||||||
U.S. income and withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. This amount becomes taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of such temporary differences totals $0.5 million at December 31, 2012. Determination of the amount of any unrecognized deferred tax liability on this temporary difference is not practicable. | |||||||||||||
The following table summarizes the activity related to our unrecognized tax benefits (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Balance, January 1 | $ | 4,842 | $ | 5,111 | $ | 5,025 | |||||||
Increase related to prior period positions | 367 | — | 583 | ||||||||||
Increase related to current year tax positions | 91 | 124 | 241 | ||||||||||
Decrease related to prior period positions | (101 | ) | (210 | ) | (123 | ) | |||||||
Decrease related to change in prior year estimate | (88 | ) | — | — | |||||||||
Balance, December 31 | $ | 5,111 | $ | 5,025 | $ | 5,726 | |||||||
At December 31, 2010, 2011, and 2012 we had cumulative unrecognized tax benefits of approximately $5.1 million, $5.0 million, and $5.7 million respectively, of which approximately $0.2 million, $0.2 million, and $0.9 million, respectively, are included in other long term liabilities that, if recognized, would affect the effective tax rate. The remaining $4.9 million, $4.8 million and $4.8 million of unrecognized tax benefits will have no impact on the effective tax rate due to the existence of net operating loss carryforwards and a full valuation allowance. Consistent with previous periods, penalties and tax related interest expense are reported as a component of income tax expense. As of December 31, 2010, and 2011, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheet was less than $0.1 million. As of December 31, 2012, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheet was approximately $0.2 million. We do not expect that our unrecognized tax benefit will change significantly within the next 12 months. | |||||||||||||
Due to net operating losses and other tax attributes going forward, we are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending March 31, 1999 through December 31, 2011. With few exceptions, our state income tax returns are open to audit for the years ended December 31, 2008 through 2011. | |||||||||||||
We periodically evaluate the likelihood of the realization of deferred tax assets, and adjust the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to us for tax reporting purposes, and other relevant factors. | |||||||||||||
At December 31, 2012, based on the weight of available evidence, including cumulative losses in recent years and expectations regarding future taxable income, we determined that it was not more likely than not that our deferred tax assets would be realized and have a $99.7 million valuation allowance associated with our deferred tax assets. | |||||||||||||
As of December 31, 2012, we had federal and state net operating loss carryforwards of approximately $203.1 million and $105.4 million, respectively, which begin to expire in the tax years ending 2017 and 2013, respectively. We had foreign net operating loss carryforwards of $43.7 million, which have no expiration date. In addition, we had federal tax credit carryforwards of $6.6 million, of which approximately $0.5 million can be carried forward indefinitely to offset future tax liability, and the remaining $6.1 million begin to expire in the tax year ending 2018. We also had state tax credit carryforwards of $5.5 million, of which the entire $5.5 million has no expiration date. | |||||||||||||
As a result of our equity transactions, an ownership change, within the meaning of IRC Section 382, occurred on September 18, 2003. As a result, annual use of our federal net operating loss and credit carry forwards is limited to (i) the aggregate fair market value of Dot Hill immediately before the ownership change multiplied by (ii) the long-term tax-exempt rate (within the meaning of Section 382 (f) of the IRC) in effect at that time. The annual limitation is cumulative and, therefore, if not fully utilized in a year, can be utilized in future years in addition to the IRC Section 382 limitation for those years. | |||||||||||||
As a result of our acquisition of Chaparral Network Storage, Inc., or Chaparral, a second ownership change, within the meaning of IRC Section 382, occurred on February 23, 2004. As a result, annual use of Chaparral’s federal net operating loss and credit carry forwards may be limited. The annual limitation is cumulative and, therefore, if not fully utilized in a year, can be utilized in future years in addition to the Section 382 limitation for those years. | |||||||||||||
As a result of our acquisition of Cloverleaf, a third ownership change, within the meaning of IRC Section 382, occurred on January 26, 2010. As a result, annual use of Cloverleaf’s federal net operating loss and credit carry forwards may be limited. The annual limitation is cumulative and, therefore, if not fully utilized in a year, can be utilized in future years in addition to the Section 382 limitation for those years. |
Stockholders_Equity_Equity_Inc
Stockholders' Equity, Equity Incentive Plans and Warrants | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Stockholders’ Equity, Equity Incentive Plans and Warrants | ' | ||||||||||||||||||
Stockholders’ Equity, Equity Incentive Plans and Warrants | |||||||||||||||||||
Stock Incentive Plans | |||||||||||||||||||
2009 EIP. Our stockholders approved the 2009 Equity Incentive Plan, or the 2009 EIP, at our Annual Meeting of Stockholders held on June 15, 2009. The 2009 EIP authorizes the issuance or grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance awards, performance cash awards and other stock awards to our employees, directors and consultants and is intended as the successor to and continuation of our 2000 EIP. Following the approval of the 2009 EIP by our stockholders, no additional stock awards may be granted under the 2000 Amended and Restated Equity Incentive Plan, or the 2000 EIP. All outstanding stock awards granted under the 2000 EIP will remain subject to the terms of the 2000 EIP provided, however, that any shares subject to outstanding stock awards granted under the 2000 EIP that expire or terminate for any reason prior to exercise or settlement shall become available for issuance pursuant to awards granted under the 2009 EIP. Awards granted under the 2000 EIP expire 10 years from the date of grant. Awards granted under the 2009 EIP expire seven years from the date of grant. As of June 15, 2009, the total number of shares of our common stock reserved for issuance under the 2009 EIP consisted of 4,500,000 shares plus 7,112,217 shares that are subject to outstanding stock awards under the 2000 EIP that may become available for grant under the 2009 EIP if they expire or terminate for any reason prior to exercise or settlement under the 2000 EIP. On May 2, 2011 shareholders approved our Amended 2009 Equity Incentive Plan, primarily to increase the share reserve by 8,000,000 shares. Unless sooner terminated by our Board of Directors, the 2009 EIP shall automatically terminate on April 26, 2019, the day before the tenth anniversary of the date the 2009 EIP was adopted by the Board. The Board of Directors may also amend the 2009 EIP at any time subject to applicable laws and regulations, including the rules and regulations of The NASDAQ Stock Market LLC. In general, no amendment or termination of the 2009 EIP may adversely affect any rights under awards already granted to a participant unless agreed to by the affected participant. | |||||||||||||||||||
During 2010, 2011 and 2012, we granted restricted stock and options to purchase common stock with various vesting as approved by the Board upon each grant. As of December 31, 2012, 572,794 shares of restricted stock were outstanding under the 2009 EIP, of which 54,282 were performance-based restricted stock awards. These performance–based awards were issued in September 2011, none of which are vested as of December, 31, 2012, all of which will vest in 2013, provided that the performance objectives are achieved. We will determine the actual number of shares the recipient receives based on results achieved versus goals based on internal non-financial operational targets. Additionally, 82,608 shares of restricted stock were outstanding under the 2000 EIP. As of December 31, 2012, options to purchase 4,362,924 and 4,039,203 shares of common stock were outstanding under the 2009 EIP and 2000 EIP, respectively. 4,573,892 shares of common stock remained available for grant under the 2009 EIP. | |||||||||||||||||||
2000 NEDSOP. Under our 2000 Non-Employee Directors Stock Option Plan, or 2000 NEDSOP, nonqualified stock options to purchase common stock are automatically granted to our non-employee directors upon appointment to our Board of Directors (initial grants) and upon each of our annual meeting of stockholders (annual grants). Options granted under the 2000 NEDSOP expire 10 years from the date of the grant. Initial grants vest over four years, with 25% of the shares subject to the option vesting one year from the date of grant and the remaining shares subject to the option vesting ratably thereafter on a monthly basis. Annual grants are fully vested on the date of grant. 1,000,000 shares of common stock are reserved for issuance under the 2000 NEDSOP. As of December 31, 2012, options to purchase 550,000 shares of common stock were outstanding under the 2000 NEDSOP and options to purchase 343,124 shares of common stock remained available for grant under the 2000 NEDSOP. | |||||||||||||||||||
2000 ESPP. Our stockholders approved our Amended and Restated Employee Stock Purchase Plan, or 2000 ESPP, at our Annual Meeting of Stockholders held on June 15, 2009, primarily to increase the share reserve under the 2000 ESPP by 4,000,000 shares. The 2000 ESPP qualifies under the provisions of Section 423 of the Internal Revenue Code, or IRC, and provides our eligible employees, as defined in the 2000 ESPP, with an opportunity to purchase shares of our common stock at 85% of fair market value. There were 667,265 and 675,149 shares issued under the 2000 ESPP for the years ended December 31, 2011 and 2012, respectively. As of December 31, 2012, the 2000 ESPP had a total of 1,867,481 shares available for purchase. | |||||||||||||||||||
As of December 31, 2012, total unrecognized share-based compensation cost related to unvested stock options, restricted stock awards, management stock incentive plan and our 2000 ESPP was $3.3 million, which is expected to be recognized over a weighted-average period of approximately 2.8 years. The following table summarizes share-based compensation expense for the years ended December 31, (in thousands): | |||||||||||||||||||
2010 | 2011 | 2012 | |||||||||||||||||
Cost of goods sold | $ | 489 | $ | 828 | $ | 617 | |||||||||||||
Sales and marketing | 333 | 540 | 419 | ||||||||||||||||
Research and development | 908 | 2,200 | 1,705 | ||||||||||||||||
General and administrative | 819 | 1,548 | 1,024 | ||||||||||||||||
Share-based compensation expense before taxes | 2,549 | 5,116 | 3,765 | ||||||||||||||||
Related deferred income tax benefits | — | — | — | ||||||||||||||||
Share-based compensation expense | $ | 2,549 | $ | 5,116 | $ | 3,765 | |||||||||||||
Share-based compensation expense is derived from: | |||||||||||||||||||
Stock options | $ | 1,577 | $ | 1,434 | $ | 1,508 | |||||||||||||
Restricted stock awards | 610 | 2,303 | 1,958 | ||||||||||||||||
Stock bonus plan | — | 1,005 | — | ||||||||||||||||
2000 ESPP | 362 | 374 | 299 | ||||||||||||||||
Total | $ | 2,549 | $ | 5,116 | $ | 3,765 | |||||||||||||
We estimate forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We have historically and continue to estimate the fair value of share-based awards using the Black Scholes option-pricing model. | |||||||||||||||||||
A summary of stock option activity is as follows: | |||||||||||||||||||
Number of shares | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value | ||||||||||||||||
Outstanding at January 1, 2012 | 7,394,551 | $ | 3.39 | ||||||||||||||||
Granted | 2,486,000 | 1.36 | |||||||||||||||||
Exercised | (27,189 | ) | 0.83 | ||||||||||||||||
Forfeited | (574,705 | ) | 1.84 | ||||||||||||||||
Expired | (326,528 | ) | 3.53 | ||||||||||||||||
Outstanding at December 31, 2012 | 8,952,129 | $ | 2.93 | 4.56 | $ | 28,380 | |||||||||||||
Vested and expected to vest at December 31, 2012 | 8,560,457 | $ | 3 | 4.44 | $ | 24,990 | |||||||||||||
Exercisable at December 31, 2012 | 5,622,274 | $ | 3.67 | 3.77 | $ | 9,312 | |||||||||||||
A summary of restricted stock award activity for 2012 is as follows: | |||||||||||||||||||
Number of shares | Weighted average grant date fair value | ||||||||||||||||||
Outstanding at January 1, 2012 | 2,233,563 | $ | 2.09 | ||||||||||||||||
Granted | 843,968 | 1.23 | |||||||||||||||||
Vested | (1,915,270 | ) | 1.72 | ||||||||||||||||
Forfeited | (506,859 | ) | 1.92 | ||||||||||||||||
Outstanding and unvested at December 31, 2012 | 655,402 | $ | 2.16 | ||||||||||||||||
The weighted average grant-date fair values of options granted during the years ended December 31, 2010, 2011 and 2012 were $0.97 per share, $1.78 per share, and $0.89 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2010, 2011 and 2012 were $0.0 million, $0.8 million, and $0.0 million, respectively. | |||||||||||||||||||
The weighted average grant-date fair values of restricted stock awards granted during the years ended December 31, 2010, 2011 and 2012 were $1.68, $2.68 and $1.23 per share, respectively. The fair value of restricted stock awards that vested during the years ended December 31, 2010, 2011 and 2012 was $0.8 million, $1.4 million and $3.3 million, respectively. | |||||||||||||||||||
Cash generated from options exercised under all share-based compensation arrangements for the years ended December 31, 2010, 2011 and 2012 were $0.1 million, $0.5 million and $0.0 million, respectively. Cash generated from the purchase of shares through the 2000 ESPP for the years ended December 31, 2010, 2011 and 2012, was $0.7 million, $0.9 million, and $0.7 million respectively. We issue new shares from the respective plan share reserves upon exercise of options to purchase common stock and for purchases through the 2000 ESPP. | |||||||||||||||||||
The aggregate intrinsic value in the stock option summary table above is based on our closing stock price of $0.94 per share as of the last business day of the fiscal year ended December 31, 2012, which value would have been realized by the optionees had all options been exercised on that date. The total fair value of options to purchase common stock that vested during the years ended December 31, 2010, 2011 and 2012 was $1.1 million, $1.2 million, and $2.1 million, respectively. | |||||||||||||||||||
To estimate compensation expense for the years ended December 31, 2010, 2011, and 2012 we used the Black-Scholes option-pricing model with the following weighted-average assumptions for equity awards granted: | |||||||||||||||||||
EIP and NEDSOP | ESPP | ||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||
2010 | 2011 | 2012 | 2010 | 2011 | 2012 | ||||||||||||||
Risk-free interest rate | 2.25 | % | 1.84 | % | 1.19 | % | 0.19 | % | 0.17 | % | 0.12 | % | |||||||
Expected dividend yield | — | % | — | % | — | % | — | % | — | % | — | % | |||||||
Volatility | 74 | % | 85 | % | 81 | % | 101 | % | 70 | % | 64 | % | |||||||
Expected Term | 5.9 years | 5.4 years | 5.2 years | 0.5 years | 0.5 years | 0.5 years | |||||||||||||
Forfeiture Rate | 0%-12.69% | 0%-12.25% | 0%-10.62% | — | % | — | % | — | % | ||||||||||
The risk-free interest rate is based on the implied yield available on United States Treasury issues with an equivalent remaining term. We have not paid dividends in the past and do not plan to pay any dividends in the future. | |||||||||||||||||||
The expected volatility is based on historical volatility of our stock for the related vesting period. The expected life of the equity award is based on historical experience. | |||||||||||||||||||
The forfeiture rate is estimated when awards are granted and updated if information becomes available indicating that actual forfeitures will differ. | |||||||||||||||||||
Warrants | |||||||||||||||||||
In January 2008, we amended our Product Purchase Agreement, or Agreement, originally entered into with HP in September 2007, to allow for sales to additional divisions within HP. In connection with the Agreement, we issued a warrant to HP to purchase 1,602,489 shares of our common stock (approximately 3.5% of our outstanding shares prior to the issuance of the warrant) at an exercise price of $2.40 per share. | |||||||||||||||||||
On October 31, 2011, we amended again the Product Purchase Agreement originally entered into with HP on September 10, 2007. In part, this Amendment extends until October 30, 2016 the expiration date of the warrant previously issued to HP to purchase 1,602,489 shares of our common stock at the original exercise price of $2.40 per share. The impact of this extension on our financial statements is a non-cash contra-revenue charge of approximately $1.0 million in Dot Hill’s 2011 statement of operations. |
Employee_Retirement_Benefit_Pl
Employee Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Retirment Benefit Plans | ' |
Employee Retirement Benefit Plans | |
Dot Hill Retirement Savings Plan | |
The Dot Hill Retirement Savings Plan, which qualifies under Section 401(k) of the IRC, is open to eligible employees over 21 years of age. Under the plan, participating United States employees may defer up to 100% of their pretax salary, but not more than statutory limits. At our discretion we may make contributions to this plan for plan participants. Our matching contributions vest to employees as a percentage based on years of employment from one to five years, and matching contributions are fully vested to employees after five years of employment. Our matching contributions to the retirement savings plan for the years ended December 31, 2010, 2011 and 2012 were $0.1 million, $0.1 million and $0.3 million, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments And Contingencies | ' | ||||
Commitments and Contingencies | |||||
Operating Leases | |||||
We lease office space, equipment and automobiles under non-cancelable operating leases, which expire at various dates through May 2018. Rent expense for the years ended December 31, 2010, 2011 and 2012 was $1.1 million, $1.0 million and $1.1 million, respectively. We record rent expense on a straight–line basis based on contractual lease payments. | |||||
Future minimum lease payments due under all non-cancelable operating leases as of December 31, 2012 are as follows (in thousands): | |||||
2013 | $ | 1,301 | |||
2014 | 1,232 | ||||
2015 | 1,224 | ||||
2016 | 1,130 | ||||
2017 | 1,155 | ||||
Thereafter | 488 | ||||
Total minimum lease payments | $ | 6,530 | |||
For purposes of the table above, the operating lease obligations exclude common area maintenance, real estate taxes and insurance expenses. | |||||
Unconditional Purchase Obligations | |||||
We have unconditional inventory related purchase obligations to certain suppliers for certain commodities in order to ensure supply of select key components at the most favorable pricing. Additionally, we have non-inventory related purchase obligations that represent purchase commitments made in the ordinary course of business. At December 31, 2012 we had approximately $21.8 million of unconditional purchase obligations. | |||||
Legal Proceedings | |||||
We are involved in certain legal actions and claims from time to time arising in the ordinary course of business. Management believes the outcome of such litigation and claims could have a material adverse effect on our financial statements. Historically, the outcome of such litigation and claims has not had a material adverse effect on our financial condition or results of operations. | |||||
In January 2012, Dot Hill filed an arbitration claim against a customer for unpaid money owed to Dot Hill under the OEM and License Agreement entered into by the parties in July 2010 (the “Agreement”). Pursuant to the Agreement, the customer licensed portions of our UVS software and bundled it with its hardware and software. Our customer was required to pay licensing and support fees under the Agreement. During the second calendar quarter of 2011, the customer stopped making payments, and approximately $1.1 million dollars is owed to us under the Agreement. Our customer filed a counter claim for $0.6 million, primarily for damages and reimbursement of specific amounts paid under the Agreement. The case was heard at arbitration in late February to early March 2013, and we expect that a judgment will be issued within the next 60 days. We have reviewed this claim, but cannot at this stage in the process determine the likelihood of the outcome. Our initial estimate of our potential exposure ranges between $0.0 million and $0.6 million. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
Segment Information | ||||||||||||
Operating segments, as defined in ASC 280, Segment Reporting, are components of an enterprise for which separate financial information is available and is evaluated regularly by the Chief Operating Decision Maker, or CODM, in deciding how to allocate resources and in assessing performance. ASC 280 also requires disclosures about products and services, geographic areas and significant customers. | ||||||||||||
As a result of our decision to exit our AssuredUVS line of business, and close down our Israel Technology Development Center during the first quarter of 2012 (see Note 8), our CODM now operates our business in one reportable operating segment. Prior year information has been recast to conform to current year presentation, excluding discontinued operations. | ||||||||||||
Geographic Information | ||||||||||||
Net revenue is recorded in the geographic area in which the sale is originated. Long-lived assets include property and equipment, net, identifiable intangible assets, net, and other non-current assets. Information concerning principal geographic areas in which we operate is as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Net revenue: | ||||||||||||
United States | $ | 245,372 | $ | 193,755 | $ | 192,801 | ||||||
Europe, Middle East and Africa | 4,975 | 76 | 14 | |||||||||
Asia | 1,491 | 1,996 | 1,733 | |||||||||
Total net revenue | $ | 251,838 | $ | 195,827 | $ | 194,548 | ||||||
Long-lived assets: | ||||||||||||
United States | $ | 5,140 | $ | 4,945 | $ | 7,682 | ||||||
Europe, Middle East and Africa | 6,408 | 2,922 | 68 | |||||||||
Asia | — | — | — | |||||||||
Total long-lived assets | $ | 11,548 | $ | 7,867 | $ | 7,750 | ||||||
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
Quarterly Financial Information (Unaudited) | |||||||||||||||||
The information presented below reflects all adjustments, which, in the opinion of management, are of a normal and recurring nature necessary to present fairly the results of operations for the periods presented (in thousands, except per share amounts). | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Year Ended December 31, 2011: | |||||||||||||||||
Net revenue | $ | 48,543 | $ | 52,458 | $ | 47,805 | $ | 47,021 | |||||||||
Gross profit | 11,930 | 13,113 | 11,441 | 8,799 | |||||||||||||
Income (loss) before income taxes and discontinued operations | (12 | ) | (302 | ) | (3,162 | ) | (4,859 | ) | |||||||||
Net income (loss) from continuing operations | (62 | ) | (367 | ) | (3,237 | ) | (4,798 | ) | |||||||||
Basic and diluted net income (loss) per share from continuing operations | $ | — | $ | (0.01 | ) | $ | (0.06 | ) | $ | (0.08 | ) | ||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||
Net revenue | $ | 54,598 | $ | 47,708 | $ | 48,223 | $ | 44,019 | |||||||||
Gross profit | 15,565 | 12,661 | 12,268 | 7,877 | |||||||||||||
Income (loss) before income taxes and discontinued operations | 69 | (2,545 | ) | (2,581 | ) | (4,596 | ) | ||||||||||
Net income (loss) from continuing operations | 160 | (2,945 | ) | (2,734 | ) | (4,883 | ) | ||||||||||
Basic and diluted net income (loss) per share from continuing operations | $ | — | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.08 | ) | ||||||
During the first, second, third and fourth quarters of 2011, we incurred approximately $0.0 million, $0.0 million, $0.7 million and $0.0 million, respectively, of restructuring charges related to our 2008 and 2010 restructuring plan. During the first, second, third and fourth quarters of 2012, we incurred approximately $0.0 million, $0.0 million, $0.0 million and $0.0 million, respectively, of restructuring charges related to our 2008 and 2010 restructuring plans. See further discussion of our restructuring activities in Note 8. | |||||||||||||||||
During the preparation of the Company's consolidated financial statements for the year ended December 31, 2012 and the accounting analysis for the renewal of a long-term software contract, the Company determined that it had applied an inappropriate revenue recognition methodology in 2010 and 2011 to the contract. The Company recorded revenue as royalty payments were received on this contract and should have deferred all the revenue and direct and incremental costs until all the deliverables, except PCS, were delivered in 2012. This was corrected in the fourth quarter of 2012, and the net out-of-period impact of these adjustments was $1.1 million, consisting of a reduction of revenue and costs of $2.0 million and $0.9 million, respectively. | |||||||||||||||||
2011 quarterly amounts, and amounts for the quarters ended March 31, 2012 and June 30, 2012 have been retrospectively adjusted for discontinued operations. See Note 4. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Basis of Presentation | ' | |||||||||||
Basis of Presentation | ||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. | ||||||||||||
Principles of Consolidation | ' | |||||||||||
Principles of Consolidation | ||||||||||||
The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||
Foreign Currency Transaction | ' | |||||||||||
Foreign Currency Translation | ||||||||||||
For our foreign subsidiaries whose functional currency is the local currency, assets and liabilities are translated into United States dollars at period-end exchange rates. Revenues and expenses, and gains and losses, are translated at rates of exchange that approximate the rates in effect on the transaction date. Resulting translation gains and losses are recognized as a component of other comprehensive loss. | ||||||||||||
For our foreign subsidiaries that maintain their books of record in a currency other than the functional currency, the subsidiaries remeasure monetary assets and liabilities using current rates of exchange at the balance sheet date and remeasure non-monetary assets and liabilities using historical rates of exchange. Gains and losses from remeasurement for such subsidiaries are recognized currently in income as a component of general and administrative expenses. | ||||||||||||
Foreign currency translation adjustments comprise the entire amount of our accumulated other comprehensive loss at December 31, 2011 and 2012. We incurred foreign currency transaction losses of $0.2 million and $0.3 million for the years ended December 31, 2010 and 2011, respectively, and foreign currency transaction gains of $0.5 million for the year ended December 31, 2012. | ||||||||||||
Use of Accounting Estimates | ' | |||||||||||
Use of Accounting Estimates | ||||||||||||
The preparation of our unaudited condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition, inventory valuation, recurring and specific issue warranty obligations (see Note 7), the valuation and recognition of stock-based compensation expense, and the valuation of long-lived assets, goodwill and other intangibles, as well as any other assets and liabilities acquired and accounted for under the purchase method of accounting for business combinations. In addition, we have other accounting policies that involve estimates such as the determination of useful lives of long-lived assets, the accruals for restructuring, and income taxes, including the valuation allowance for deferred tax assets. Actual results may differ from these estimates and such differences could be material. | ||||||||||||
Revenue Recognition | ' | |||||||||||
Revenue Recognition | ||||||||||||
We derive our revenue from sales of our hardware products, software and services. | ||||||||||||
Hardware | ||||||||||||
Hardware product revenue consists of revenue from sales of our AssuredSAN storage systems which is integrated with industry standard hardware which is essential to the functionality of the integrated system product. We recognize hardware product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue is recognized for hardware product sales upon transfer of title and risk of loss to the customer and in addition, upon installation for certain of our AssuredUVS appliance products. We record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates are based on historical sales returns, analysis of credit memo data and other factors known at the time. If actual future returns and pricing adjustments differ from past experience and our estimates, additional revenue reserves may be required. | ||||||||||||
Software | ||||||||||||
In accordance with the specific guidance for recognizing software revenue, where applicable, we recognize revenue from perpetual software licenses at the inception of the license term assuming all revenue recognition criteria have been met. We use the relative method to allocate revenue to software licenses at the inception of the license term when vendor-specific objective evidence, or VSOE, of fair value for all unspecified software updates and enhancements related to our products through service contracts is available. We have established VSOE for the fair value of our support services as measured by the stated renewal prices paid by our customers when the services are sold separately on a standalone basis. | ||||||||||||
Specific long term software contracts may contain multiple deliverables including software licenses, services, training and post-contract support for which we have not established VSOE of fair value of any of the elements. Under specific guidance for recognizing software revenue, we begin recognizing revenue upon the delivery of all the elements except post-contract support (PCS). We defer all the direct and incremental costs related to the deliverables in these contracts until delivery of all the elements except PCS. The deferred revenue and costs are amortized over the contractual PCS support periods. | ||||||||||||
During the preparation of the Company's consolidated financial statements for the year ended December 31, 2012 and the accounting analysis for the renewal of a long-term software contract, the Company determined that it had applied an inappropriate revenue recognition methodology in 2010 and 2011 to the contract. The Company recorded revenue as royalty payments were received on this contract and should have deferred all the revenue and direct and incremental costs until all the deliverables, except PCS, were delivered in 2012. | ||||||||||||
This resulted in an overstatement of $1.4 million of revenue and $1.2 million of costs in 2010, and an overstatement of $2.8 million of revenue and $1.9 million of costs in 2011. This was corrected in the fourth quarter of 2012, and the net out-of-period impact of these adjustments was $1.1 million, consisting of a reduction of revenue and research and development costs of $4.2 million and $3.1 million, respectively. | ||||||||||||
Service | ||||||||||||
Our service revenue primarily includes out-of-warranty repairs and product maintenance contracts. Out-of warranty repairs primarily consist of product repair services performed by our contract manufacturers for those customers that allowed their original product warranty to expire without purchasing one of our higher level support service plans. Revenue from these out-of-warranty repairs, and the associated cost of sales, is recognized in the period these services are provided. Service revenue also consists of product maintenance contracts purchased by our customers as an extension of our standard warranty. Revenue from our product maintenance contracts is deferred and recognized ratably over the contract term, generally 12 to 36 months. Net revenue derived from services was less than 10% of total revenue for all periods presented. | ||||||||||||
Revenue Recognition for Arrangements with Multiple Deliverables | ||||||||||||
For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, we allocate revenue to all deliverables based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) VSOE of fair value, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of the selling price, or ESP. VSOE generally exists only when we sell the deliverable separately and represents the actual price charged by us for that deliverable. ESPs reflect our best estimates of what the selling prices of elements would be if they were sold regularly on a standalone basis. | ||||||||||||
From time to time, we enter into arrangements with customers that include acceptance criteria. In such instances, we defer all revenue on the arrangement until customer acceptance is obtained or the acceptance clause lapses. | ||||||||||||
Revenue Recognition for Sales to Channel Partners | ||||||||||||
On sales to channel partners, we evaluate whether fees are considered fixed or determinable by considering a number of factors, including our ability to estimate returns, payment terms and our relationship and past history with the particular channel partner. If fees are not considered fixed or determinable at the time of sale to a channel partner, revenue recognition is deferred until there is persuasive evidence indicating the product has sold through to an end-user. Persuasive evidence of sell-through may include reports from channel partners documenting sell-through activity or data indicating an order has shipped to an end-user. | ||||||||||||
Deferred Revenue | ||||||||||||
We defer revenue on upfront nonrefundable payments from our customers and recognize it ratably over the term of the agreement, unless the payment is in exchange for products delivered that represent the culmination of a separate earnings process. When we provide consideration to a customer, we recognize the value of that consideration as a reduction in net revenue. We may be required to maintain inventory with certain of our largest OEM customers, which we refer to as hubbing arrangements. Pursuant to these arrangements we deliver products to a customer or a designated third-party warehouse based upon the customer’s projected needs, but do not recognize product revenue unless and until the customer has removed our product from the warehouse to incorporate into its end products. | ||||||||||||
We report taxes collected from customers on behalf of governmental authorities on a net basis (excluded from revenues). | ||||||||||||
Advertising Costs | ' | |||||||||||
Advertising Costs | ||||||||||||
We expense advertising costs in the period incurred. Advertising expense is included as a component of sales and marketing expense. Advertising expense was $1.1 million, $1.2 million and $1.2 million for the years ended December 31, 2010, 2011 and 2012, respectively. | ||||||||||||
Shipping and Handling | ' | |||||||||||
Shipping and Handling | ||||||||||||
Cost related to the shipping and handling of our products is included in cost of goods sold for all periods presented. | ||||||||||||
Research and Development | ' | |||||||||||
Research and Development | ||||||||||||
Research and development costs are expensed as incurred. In conjunction with the development of our products, we incur certain software development costs. No costs have been capitalized because the period between achieving technological feasibility and completion of such software is relatively short and software development costs qualifying for capitalization have been insignificant. | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Stock-Based Compensation | ||||||||||||
Stock-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value. We recognize these compensation costs net of an estimated forfeiture rate, and recognize compensation cost only for those shares expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the share-based payment awards. We estimate forfeiture rates based on our historical experience. | ||||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
We recognize deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. We record a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. | ||||||||||||
Cash and Cash Equivalents | ' | |||||||||||
Cash and Cash Equivalents | ||||||||||||
We classify investments as cash equivalents if they are readily convertible to cash and have average maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of mutual money market funds issued or managed in the United States. At December 31, 2011 and 2012, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity. | ||||||||||||
As of December 31, 2012, $4.5 million of the $40.3 million of cash, cash equivalents, and marketable securities was held by our foreign subsidiaries. If these funds are needed for our operations in the U.S., we will be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations. | ||||||||||||
Property and Equipment | ' | |||||||||||
Property and Equipment | ||||||||||||
Property and equipment are recorded at cost less accumulated depreciation. Property and equipment are depreciated for financial reporting purposes using the straight-line method over the following estimated useful lives: machinery and equipment, furniture, fixtures and computer software, 3-5 years; leasehold improvements are amortized using the straight-line method over the shorter of the useful lives of the assets or the terms of the leases. Significant improvements to our property and equipment are capitalized while expenditures for maintenance and repairs are charged to expense in the period incurred. | ||||||||||||
The components of property and equipment consist of the following as of December 31, (in thousands): | ||||||||||||
2011 | 2012 | |||||||||||
Machinery and equipment | 11,577 | 14,810 | ||||||||||
Furniture, fixtures, and computer software | 854 | 1,159 | ||||||||||
Leasehold improvements | 1,034 | 1,926 | ||||||||||
Construction in progress | 855 | 909 | ||||||||||
Total property and equipment, at cost | 14,320 | 18,804 | ||||||||||
Less accumulated depreciation | (9,348 | ) | (11,657 | ) | ||||||||
Property and equipment, net | 4,972 | 7,147 | ||||||||||
Depreciation expense was $1.8 million, $2.2 million and $2.5 million for the years ended December 31, 2010, 2011 and 2012, respectively. | ||||||||||||
Concentration of Customers and Suppliers | ' | |||||||||||
Concentration of Customers and Suppliers | ||||||||||||
A majority of our net revenue is derived from a limited number of customers. We currently have two customers that account for more than 10% of our total net revenue: Hewlett Packard, or HP, and Tektronix, Inc., or Tektronix. Our agreements with our original equipment manufacturers, or OEM, partners do not contain any minimum purchase commitments, do not obligate our OEM partners to purchase their storage solutions exclusively from us and may be terminated at any time upon notice from the applicable partner. | ||||||||||||
Net revenue by major customer is as follows (as a percentage of total net revenue): | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
HP | 57 | % | 74 | % | 68 | % | ||||||
NetApp, Inc. | 26 | % | — | % | — | % | ||||||
Tektronix | — | % | 6 | % | 10 | % | ||||||
Other customers less than 10% | 17 | % | 20 | % | 22 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
HP continues to account for a significant percentage of our sales. If our relationship with HP were disrupted or declined significantly, we would lose a substantial portion of our anticipated net revenue and our business could be materially harmed. We cannot guarantee that our relationship with HP or our other customers will expand or not otherwise be disrupted. | ||||||||||||
At December 31, 2011, our accounts receivable from HP were $22.3 million comprising 70% of our total accounts receivable. At December 31, 2012, our accounts receivable from HP were $17.0 million comprising 68% of our total accounts receivable. No other customer balance exceeded 10% of our total accounts receivable balance at December 31, 2011 or 2012. | ||||||||||||
We expect that the sale of our products to a limited number of customers will continue to account for a high percentage of net revenue for the foreseeable future. On October 31, 2011, we amended the Product Purchase Agreement originally entered into with HP on September 10, 2007 (the Amendment). The Amendment extends the agreement with HP for a five-year period through October 30, 2016. In addition, the Amendment provides that we will continue to comply with the contractually required cost reduction process and to support HP with respect to certain products or statements of work upon any assignment of the agreement for a specified period of time. The Amendment does not contain any minimum purchase commitments by HP. Simultaneously with the extension of the Product Purchase Agreement, we agreed to extend until October 30, 2016 the expiration date of the warrant previously issued to HP to purchase 1,602,489 shares of our common stock at the original exercise price of $2.40 per share. | ||||||||||||
We currently rely on a limited number of contract manufacturing partners to produce substantially all of our products. As a result, should any of our current manufacturing partners, such as Foxconn Technology Group, or parts suppliers not produce and deliver inventory for us to sell on a timely basis, operating results may be adversely impacted. | ||||||||||||
Long-lived asset impairment | ' | |||||||||||
Long-lived asset impairment | ||||||||||||
We periodically review the recoverability of the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. An impairment in the carrying value of an asset group is recognized whenever anticipated future undiscounted cash flows from an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. | ||||||||||||
In September 2011, our primary AssuredUVS customer informed us that the AssuredUVS software would no longer be a component of its business strategy, resulting in significant declines in revenues for the Company. Our long-lived assets consisted of the intangible assets associated with our acquisition of certain identified Cloverleaf Communications, Inc., or Cloverleaf, assets acquired in January 2010. The impairment of these long-lived assets is now reported in discontinued operations (see Note 4), since we have ceased all ongoing operational activities as of December 31, 2012. | ||||||||||||
Valuation of Goodwill | ' | |||||||||||
Valuation of Goodwill | ||||||||||||
We reviewed goodwill for impairment on an annual basis at November 30 and whenever events or changes in circumstances indicated the carrying value of an asset may not be recoverable. | ||||||||||||
Accounting standards required that a two-step impairment test be performed on goodwill. In the first step, we compared the fair value of our reporting unit to its carrying value. We determined the fair value of our reporting unit using a combination of the income approach and market capitalization approach. If the fair value of the reporting unit exceeded the carrying value of the net assets, goodwill was not impaired, and no further testing is required. If the carrying value of the net assets exceeded the fair value of the reporting unit, then we performed the second step in order to determine the implied fair value of the reporting unit’s goodwill and compared it to the carrying value of the reporting unit’s goodwill. If the carrying value of the reporting unit’s goodwill exceeded its implied fair value, then we recorded an impairment charge equal to the difference. | ||||||||||||
Under the income approach, we calculated the fair value of a reporting unit based on the present value of estimated future discounted cash flows. Under the market capitalization approach, valuation multiples were calculated based on operating data from publicly traded companies within our industry. Multiples derived from companies within our industry provided an indication of how much a knowledgeable investor in the marketplace would be willing to pay for a company. These multiples were applied to the operating data for the reporting unit to arrive at an indicated fair value. Significant management judgment is required in the forecasts of future operating results that were used in the estimated future discounted cash flow method of valuation. The estimates we used were consistent with the plans and estimates that we used to manage our business. We based our fair value estimates on forecasted revenue and operating costs along with business plans. Our forecasts considered the effect of a number of factors including, but not limited to, the current future projected competitiveness and market acceptance of the product, technological risk, the ease of use and ease of implementation of the product, the likely outcome of sales and marketing efforts and projected costs associated with product development, customer support and selling, general and administrative costs. It is possible, however, that the plans may change and that actual results may differ significantly from our estimates. | ||||||||||||
The changes in the carrying amount of goodwill are as follows during the years ended December 31, 2011 and 2012 (in thousands): | ||||||||||||
Storage Systems | Standalone Storage Software | Total | ||||||||||
Balance as of January 1, 2011 | ||||||||||||
Goodwill | $ | 40,700 | $ | 4,140 | $ | 44,840 | ||||||
Accumulated impairment losses | (40,700 | ) | — | (40,700 | ) | |||||||
Goodwill acquired during the year | — | — | — | |||||||||
Impairment losses | — | (4,140 | ) | (4,140 | ) | |||||||
Balance as of December 31, 2011 | ||||||||||||
Goodwill | 40,700 | 4,140 | 44,840 | |||||||||
Accumulated impairment losses | (40,700 | ) | (4,140 | ) | (44,840 | ) | ||||||
$ | — | $ | — | $ | — | |||||||
Storage Systems | Standalone Storage Software | Total | ||||||||||
Balance as of January 1, 2012 | ||||||||||||
Goodwill | $ | 40,700 | $ | 4,140 | $ | 44,840 | ||||||
Accumulated impairment losses | (40,700 | ) | (4,140 | ) | (44,840 | ) | ||||||
Goodwill acquired during the year | — | — | — | |||||||||
Impairment losses | — | — | — | |||||||||
Balance as of December 31, 2012 | ||||||||||||
Goodwill | 40,700 | 4,140 | 44,840 | |||||||||
Accumulated impairment losses | (40,700 | ) | (4,140 | ) | (44,840 | ) | ||||||
$ | — | $ | — | $ | — | |||||||
During September 2011, our primary AssuredUVS customer became delinquent on the settlement of its payables to us and upon our investigation it became evident that its financial resources were limited. It also informed us that it was changing its strategy, which would result in a significant decline in revenue for the Company, and we determined that the reporting unit was less than its carrying value. The impairment of the goodwill related to the reporting unit is now reported in discontinued operations (see Note 4), since we have ceased all ongoing operational activities as of December 31, 2012. | ||||||||||||
Allowance for Doubtful Accounts | ' | |||||||||||
Allowance for Doubtful Accounts | ||||||||||||
We establish an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. We determine the allowance for doubtful accounts based on the aging of our accounts receivable balances and an analysis of our historical experience of bad debt write-offs. Bad debt expense was $0.0 million, $0.2 million and $0.0 million for the years ended December 31, 2010, 2011 and 2012, respectively, including $0.0 million, $0.2 million and $0.0 million in discontinued operations. | ||||||||||||
Balance sheet details are as follows, (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2011 | 2012 | |||||||||||
Balance, beginning of the year | $ | — | $ | 203 | ||||||||
Additions to allowance | 203 | 37 | ||||||||||
Balance, quarter ended | $ | 203 | $ | 240 | ||||||||
Recent Accounting Pronouncements | ' | |||||||||||
Recent Accounting Pronouncements | ||||||||||||
From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective will not have a material impact on our results of operations and financial position. |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Property and equipment | ' | ||||||||
The components of property and equipment consist of the following as of December 31, (in thousands): | |||||||||
2011 | 2012 | ||||||||
Machinery and equipment | 11,577 | 14,810 | |||||||
Furniture, fixtures, and computer software | 854 | 1,159 | |||||||
Leasehold improvements | 1,034 | 1,926 | |||||||
Construction in progress | 855 | 909 | |||||||
Total property and equipment, at cost | 14,320 | 18,804 | |||||||
Less accumulated depreciation | (9,348 | ) | (11,657 | ) | |||||
Property and equipment, net | 4,972 | 7,147 | |||||||
Net revenue by major customer | ' | ||||||||
Net revenue by major customer is as follows (as a percentage of total net revenue): | |||||||||
2010 | 2011 | 2012 | |||||||
HP | 57 | % | 74 | % | 68 | % | |||
NetApp, Inc. | 26 | % | — | % | — | % | |||
Tektronix | — | % | 6 | % | 10 | % | |||
Other customers less than 10% | 17 | % | 20 | % | 22 | % | |||
Total | 100 | % | 100 | % | 100 | % | |||
Allowance for doubtful accounts | ' | ||||||||
Balance sheet details are as follows, (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2011 | 2012 | ||||||||
Balance, beginning of the year | $ | — | $ | 203 | |||||
Additions to allowance | 203 | 37 | |||||||
Balance, quarter ended | $ | 203 | $ | 240 | |||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||
Outstanding equity awards not included in calculation of diluted net loss per share | ' | ||||||||||||||||||||
Outstanding equity awards not included in the calculation of diluted net loss per share because their effect was anti-dilutive were as follows: | |||||||||||||||||||||
December 31, 2010 | December 31, 2011 | December 31, 2012 | |||||||||||||||||||
Number of | Range of | Number of | Range of | Number of | Range of | ||||||||||||||||
Potential | Exercise Prices | Potential | Exercise Prices | Potential | Exercise Prices | ||||||||||||||||
Shares | Shares | Shares | |||||||||||||||||||
Stock options | 6,179,547 | $0.47 - $16.36 | 7,314,039 | $0.47 - $16.36 | 8,952,129 | $0.47 - $16.36 | |||||||||||||||
Unvested stock awards | 2,099,523 | $ | — | 2,221,205 | $ | — | 655,402 | $ | — | ||||||||||||
Warrants | 1,602,489 | $ | 2.4 | 1,602,489 | $ | 2.4 | 1,602,489 | $ | 2.4 | ||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2012 | ||||
Business Combinations [Abstract] | ' | |||
Consideration transferred in acquisition | ' | |||
The consideration transferred in connection with the acquisition of Cloverleaf approximated $8.8 million as follows (in thousands): | ||||
Cash consideration | $ | 703 | ||
Dot Hill common stock issued to Cloverleaf | 8,132 | |||
Consideration transferred | $ | 8,835 | ||
Fair value of the total consideration acquired | ' | |||
The allocation of the acquisition date fair value of the total consideration transferred in connection with the acquisition of Cloverleaf is summarized below (in thousands): | ||||
Cash | $ | 78 | ||
Accounts receivable | 55 | |||
Inventory | 67 | |||
Other current assets | 37 | |||
Property and equipment | 452 | |||
Other non-current assets | 23 | |||
Amortizable intangible assets: | ||||
Acquired software | 6,375 | |||
Trade name | 181 | |||
Goodwill | 4,140 | |||
Accounts payable | (269 | ) | ||
Current maturities of long-term loan | (775 | ) | ||
Accrued compensation | (401 | ) | ||
Accrued expenses | (172 | ) | ||
Accrued Cloverleaf transaction costs | (924 | ) | ||
Other non-current liabilities | (32 | ) | ||
$ | 8,835 | |||
Pro forma results | ' | |||
(in thousands, except per share data) | Year Ended December 31, 2010 | |||
Net revenue | $ | 252,571 | ||
Net loss | (13,237 | ) | ||
Basic and diluted net loss per share | $ | (0.25 | ) |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Summary of the components of loss from discontinued operations | ' | |||||||||||
The following is a summary of the components of loss from discontinued operations for the years ended December 31, 2010, 2011 and 2012 (in thousands): | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Net revenue | $ | 656 | $ | 1,634 | $ | 360 | ||||||
Cost of goods sold | 2,011 | 5,284 | 2,501 | |||||||||
Gross profit | (1,355 | ) | (3,650 | ) | (2,141 | ) | ||||||
Operating expenses: | ||||||||||||
Research and development | 3,465 | 4,355 | 741 | |||||||||
Sales and marketing | 327 | 651 | 56 | |||||||||
General and administrative | 766 | 762 | 765 | |||||||||
Restructuring charge | 107 | — | 844 | |||||||||
Goodwill impairment charge | — | 4,140 | — | |||||||||
Total operating expenses | 4,665 | 9,908 | 2,406 | |||||||||
Operating loss | (6,020 | ) | (13,558 | ) | (4,547 | ) | ||||||
Other income (expense), net | 1 | (2 | ) | (1 | ) | |||||||
Loss from discontinued operations | $ | (6,019 | ) | $ | (13,560 | ) | $ | (4,548 | ) | |||
The following is a summary of the carrying amounts of major classes of assets and liabilities related to discontinued operations as of December 31, 2011 and 2012 (in thousands): | ||||||||||||
December 31, | December 31, | |||||||||||
2011 | 2012 | |||||||||||
Cash and cash equivalents | $ | — | $ | — | ||||||||
Inventories | 56 | — | ||||||||||
Prepaid expenses and other assets | 110 | 5 | ||||||||||
Total current assets | 166 | 5 | ||||||||||
Property and equipment, net | 1,031 | — | ||||||||||
Intangible assets, net | 1,824 | — | ||||||||||
Other assets | 54 | 55 | ||||||||||
Total assets | 3,075 | 60 | ||||||||||
Accounts payable | 203 | 7 | ||||||||||
Accrued compensation | 372 | — | ||||||||||
Accrued expenses | 232 | 20 | ||||||||||
Deferred revenue | 319 | — | ||||||||||
Restructuring accrual | — | 206 | ||||||||||
Total current liabilities | 1,126 | 233 | ||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of inventory | ' | |||||||
Inventories consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2011 | 2012 | |||||||
Purchased parts and materials | $ | 3,994 | $ | 3,051 | ||||
Finished goods | 1,257 | 1,986 | ||||||
Total inventory | $ | 5,251 | $ | 5,037 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of identifiable intangible assets | ' | |||||||||||||
Identifiable intangible assets are as follows (in thousands): | ||||||||||||||
December 31, 2011 | ||||||||||||||
Estimated Useful | Gross | Accumulated | Net | |||||||||||
Life | Amortization | |||||||||||||
RaidCore technology | 4 years | $ | 4,256 | $ | (3,477 | ) | $ | 779 | ||||||
NAS technology | 3 years | 214 | (214 | ) | — | |||||||||
Software | 3 years | 2,050 | (228 | ) | 1,822 | |||||||||
Total intangible assets | $ | 6,520 | $ | (3,919 | ) | $ | 2,601 | |||||||
December 31, 2012 | ||||||||||||||
Estimated Useful | Gross | Accumulated | Net | |||||||||||
Life | Amortization | |||||||||||||
RaidCore technology | 4 years | $ | 4,256 | $ | (4,256 | ) | $ | — | ||||||
Total intangible assets | $ | 4,256 | $ | (4,256 | ) | $ | — | |||||||
Product_Warranties_Tables
Product Warranties (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||||||
Warranty Accrual and Cost Activity | ' | |||||||||||
Our warranty accrual and cost activity is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Balance, beginning of year | $ | 993 | $ | 982 | $ | 6,871 | ||||||
Charges to operations | 2,623 | 8,244 | 2,116 | |||||||||
Deductions for costs incurred | (2,634 | ) | (2,355 | ) | (4,532 | ) | ||||||
Balance, end of year | $ | 982 | $ | 6,871 | $ | 4,455 | ||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring Activities | ' | |||||||||||
The following table summarizes our 2012 Plan activities (in thousands): | ||||||||||||
Severance and Related Costs | Contract Termination and Other Associated Costs | Total | ||||||||||
Restructuring plan charges | $ | 440 | $ | 332 | $ | 772 | ||||||
Reclassification of customer deposits | — | 206 | 206 | |||||||||
Cash payments | (440 | ) | (332 | ) | (772 | ) | ||||||
Accrued restructuring balance as of December 31, 2012 | $ | — | $ | 206 | $ | 206 | ||||||
The following table summarizes our 2008 Plan activities (in thousands): | ||||||||||||
Contract Termination and Other Associated Costs | ||||||||||||
Accrued restructuring balance as of December 31, 2010 | $ | 1,500 | ||||||||||
Restructuring plan expense | 621 | |||||||||||
Cash payments | (909 | ) | ||||||||||
Accrued restructuring balance as of December 31, 2011 | 1,212 | |||||||||||
Restructuring plan expense | 57 | |||||||||||
Adjustments to restructuring plan | (247 | ) | ||||||||||
Cash payments | (877 | ) | ||||||||||
Accrued restructuring balance as of December 31, 2012 | $ | 145 | ||||||||||
The following table summarizes our 2010 Plan activities (in thousands): | ||||||||||||
Severance and Related Costs | Contract Termination and Other Associated Costs | Total | ||||||||||
Accrued restructuring balance as of December 31, 2010 | $ | 20 | $ | 144 | $ | 164 | ||||||
Restructuring plan expense | — | 62 | 62 | |||||||||
Cash payments | (20 | ) | (90 | ) | (110 | ) | ||||||
Accrued restructuring balance as of December 31, 2011 | $ | — | $ | 116 | 116 | |||||||
Restructuring plan expense | — | 6 | 6 | |||||||||
Adjustments to restructuring plan | — | (21 | ) | (21 | ) | |||||||
Cash payments | — | (87 | ) | (87 | ) | |||||||
Accrued restructuring balance as of December 31, 2012 | $ | — | $ | 14 | $ | 14 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
2011 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 46,168 | $ | 46,168 | $ | — | $ | — | $ | — | ||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 40,315 | $ | 40,315 | $ | — | $ | — | $ | — | ||||||||||
These tables present the carrying value and fair value, by fair value hierarchy, of our financial instruments, excluding cash and cash equivalents at December 31, 2011 and 2012, respectively (in thousands). | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, 2011 | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
Accounts receivable | $ | 31,697 | $ | — | $ | 31,697 | $ | — | $ | — | ||||||||||
Accounts payable | $ | 31,434 | $ | — | $ | 31,434 | $ | — | $ | — | ||||||||||
Notes payable | $ | 71 | $ | — | $ | 71 | $ | — | $ | — | ||||||||||
Contingent consideration due to Ciprico | $ | 100 | $ | — | $ | 100 | $ | — | $ | — | ||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | December 31, 2012 | Quoted Prices for Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (Losses) | |||||||||||||||
Accounts receivable | $ | 25,025 | $ | — | $ | 25,025 | $ | — | $ | — | ||||||||||
Accounts payable | $ | 22,659 | $ | — | $ | 22,659 | $ | — | $ | — | ||||||||||
Credit facility borrowings | $ | 2,800 | $ | — | $ | 2,800 | $ | — | $ | — | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of income (loss) before taxes | ' | ||||||||||||
Components of income (loss) from continuing operations before taxes are as follows for the years ended December 31, (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Income (loss) from continuing operations before taxes: | |||||||||||||
U.S. | $ | (7,448 | ) | $ | (6,229 | ) | $ | (7,211 | ) | ||||
Foreign | 429 | (2,106 | ) | (2,442 | ) | ||||||||
Total income (loss) from continuing operations before taxes | $ | (7,019 | ) | $ | (8,335 | ) | $ | (9,653 | ) | ||||
Components of income tax provision | ' | ||||||||||||
Components of the income tax provision (benefit) are as follows for the years ended December 31, (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State, local and foreign | 213 | 129 | 749 | ||||||||||
213 | 129 | 749 | |||||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State, local and foreign | — | — | — | ||||||||||
— | — | — | |||||||||||
Total income tax provision | $ | 213 | $ | 129 | $ | 749 | |||||||
Reconciliation of the income tax provision | ' | ||||||||||||
The reconciliation of the income tax provision computed using the federal statutory income tax rate to the recognized income tax provision (benefit) is as follows for the years ended December 31, (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Federal statutory rate | $ | (2,386 | ) | $ | (2,834 | ) | $ | (3,282 | ) | ||||
State and local income taxes, net of federal benefit | (153 | ) | (85 | ) | (16 | ) | |||||||
State rate change and other adjustments | 737 | 160 | 531 | ||||||||||
Increase in valuation allowance | 1,400 | 1,490 | 597 | ||||||||||
Foreign tax differential | 70 | 816 | 915 | ||||||||||
Research and development credits | (48 | ) | (49 | ) | 127 | ||||||||
Share based compensation | 378 | 402 | 518 | ||||||||||
Uncertain tax positions | (2 | ) | (46 | ) | 767 | ||||||||
Adjustments to deferred tax assets | — | — | 525 | ||||||||||
Other | 217 | 275 | 67 | ||||||||||
Income tax provision | $ | 213 | $ | 129 | $ | 749 | |||||||
The tax effect of temporary differences that give rise to deferred income taxes | ' | ||||||||||||
The tax effect of temporary differences that give rise to deferred income taxes are as follows as of December 31, (in thousands): | |||||||||||||
2011 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss and tax credit carry forwards | $ | 88,675 | $ | 93,547 | |||||||||
Inventory reserve and uniform capitalization | 1,959 | 2,016 | |||||||||||
Stock options and warrants | 2,807 | 2,330 | |||||||||||
In-process research and development | 241 | 237 | |||||||||||
Allowance for bad debts | 265 | 232 | |||||||||||
Vacation accrual | 354 | 386 | |||||||||||
Deferred rent | 283 | 429 | |||||||||||
Landlord provided leasehold improvements | — | 317 | |||||||||||
Deferred revenue | — | 376 | |||||||||||
Warranty accrual | 494 | 937 | |||||||||||
Depreciation and amortization | 1,579 | 695 | |||||||||||
Other accruals and reserves | 4,252 | 701 | |||||||||||
Acquired intangibles | 1,386 | 1,336 | |||||||||||
Total deferred tax assets | 102,295 | 103,539 | |||||||||||
Deferred tax liabilities: | |||||||||||||
State taxes | (3,568 | ) | (3,603 | ) | |||||||||
Cloverleaf intangibles | (456 | ) | — | ||||||||||
Other | — | (205 | ) | ||||||||||
Total deferred income tax liabilities | (4,024 | ) | (3,808 | ) | |||||||||
Valuation allowance | (98,271 | ) | (99,731 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
Summary of the activity related to unrecognized tax benefits | ' | ||||||||||||
The following table summarizes the activity related to our unrecognized tax benefits (in thousands): | |||||||||||||
2010 | 2011 | 2012 | |||||||||||
Balance, January 1 | $ | 4,842 | $ | 5,111 | $ | 5,025 | |||||||
Increase related to prior period positions | 367 | — | 583 | ||||||||||
Increase related to current year tax positions | 91 | 124 | 241 | ||||||||||
Decrease related to prior period positions | (101 | ) | (210 | ) | (123 | ) | |||||||
Decrease related to change in prior year estimate | (88 | ) | — | — | |||||||||
Balance, December 31 | $ | 5,111 | $ | 5,025 | $ | 5,726 | |||||||
Stockholders_Equity_Equity_Inc1
Stockholders' Equity, Equity Incentive Plans and Warrants (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Share-based compensation expense | ' | ||||||||||||||||||
The following table summarizes share-based compensation expense for the years ended December 31, (in thousands): | |||||||||||||||||||
2010 | 2011 | 2012 | |||||||||||||||||
Cost of goods sold | $ | 489 | $ | 828 | $ | 617 | |||||||||||||
Sales and marketing | 333 | 540 | 419 | ||||||||||||||||
Research and development | 908 | 2,200 | 1,705 | ||||||||||||||||
General and administrative | 819 | 1,548 | 1,024 | ||||||||||||||||
Share-based compensation expense before taxes | 2,549 | 5,116 | 3,765 | ||||||||||||||||
Related deferred income tax benefits | — | — | — | ||||||||||||||||
Share-based compensation expense | $ | 2,549 | $ | 5,116 | $ | 3,765 | |||||||||||||
Share-based compensation expense is derived from: | |||||||||||||||||||
Stock options | $ | 1,577 | $ | 1,434 | $ | 1,508 | |||||||||||||
Restricted stock awards | 610 | 2,303 | 1,958 | ||||||||||||||||
Stock bonus plan | — | 1,005 | — | ||||||||||||||||
2000 ESPP | 362 | 374 | 299 | ||||||||||||||||
Total | $ | 2,549 | $ | 5,116 | $ | 3,765 | |||||||||||||
Summary of stock option activity | ' | ||||||||||||||||||
A summary of stock option activity is as follows: | |||||||||||||||||||
Number of shares | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value | ||||||||||||||||
Outstanding at January 1, 2012 | 7,394,551 | $ | 3.39 | ||||||||||||||||
Granted | 2,486,000 | 1.36 | |||||||||||||||||
Exercised | (27,189 | ) | 0.83 | ||||||||||||||||
Forfeited | (574,705 | ) | 1.84 | ||||||||||||||||
Expired | (326,528 | ) | 3.53 | ||||||||||||||||
Outstanding at December 31, 2012 | 8,952,129 | $ | 2.93 | 4.56 | $ | 28,380 | |||||||||||||
Vested and expected to vest at December 31, 2012 | 8,560,457 | $ | 3 | 4.44 | $ | 24,990 | |||||||||||||
Exercisable at December 31, 2012 | 5,622,274 | $ | 3.67 | 3.77 | $ | 9,312 | |||||||||||||
Summary of restricted stock activity | ' | ||||||||||||||||||
A summary of restricted stock award activity for 2012 is as follows: | |||||||||||||||||||
Number of shares | Weighted average grant date fair value | ||||||||||||||||||
Outstanding at January 1, 2012 | 2,233,563 | $ | 2.09 | ||||||||||||||||
Granted | 843,968 | 1.23 | |||||||||||||||||
Vested | (1,915,270 | ) | 1.72 | ||||||||||||||||
Forfeited | (506,859 | ) | 1.92 | ||||||||||||||||
Outstanding and unvested at December 31, 2012 | 655,402 | $ | 2.16 | ||||||||||||||||
Schedule of valuation assumptions for equity awards | ' | ||||||||||||||||||
To estimate compensation expense for the years ended December 31, 2010, 2011, and 2012 we used the Black-Scholes option-pricing model with the following weighted-average assumptions for equity awards granted: | |||||||||||||||||||
EIP and NEDSOP | ESPP | ||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||
2010 | 2011 | 2012 | 2010 | 2011 | 2012 | ||||||||||||||
Risk-free interest rate | 2.25 | % | 1.84 | % | 1.19 | % | 0.19 | % | 0.17 | % | 0.12 | % | |||||||
Expected dividend yield | — | % | — | % | — | % | — | % | — | % | — | % | |||||||
Volatility | 74 | % | 85 | % | 81 | % | 101 | % | 70 | % | 64 | % | |||||||
Expected Term | 5.9 years | 5.4 years | 5.2 years | 0.5 years | 0.5 years | 0.5 years | |||||||||||||
Forfeiture Rate | 0%-12.69% | 0%-12.25% | 0%-10.62% | — | % | — | % | — | % | ||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Future minimum rental payments for operating leases | ' | ||||
Future minimum lease payments due under all non-cancelable operating leases as of December 31, 2012 are as follows (in thousands): | |||||
2013 | $ | 1,301 | |||
2014 | 1,232 | ||||
2015 | 1,224 | ||||
2016 | 1,130 | ||||
2017 | 1,155 | ||||
Thereafter | 488 | ||||
Total minimum lease payments | $ | 6,530 | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Net revenue by geographic area | ' | |||||||||||
Net revenue is recorded in the geographic area in which the sale is originated. Long-lived assets include property and equipment, net, identifiable intangible assets, net, and other non-current assets. Information concerning principal geographic areas in which we operate is as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Net revenue: | ||||||||||||
United States | $ | 245,372 | $ | 193,755 | $ | 192,801 | ||||||
Europe, Middle East and Africa | 4,975 | 76 | 14 | |||||||||
Asia | 1,491 | 1,996 | 1,733 | |||||||||
Total net revenue | $ | 251,838 | $ | 195,827 | $ | 194,548 | ||||||
Long-lived assets: | ||||||||||||
United States | $ | 5,140 | $ | 4,945 | $ | 7,682 | ||||||
Europe, Middle East and Africa | 6,408 | 2,922 | 68 | |||||||||
Asia | — | — | — | |||||||||
Total long-lived assets | $ | 11,548 | $ | 7,867 | $ | 7,750 | ||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
The information presented below reflects all adjustments, which, in the opinion of management, are of a normal and recurring nature necessary to present fairly the results of operations for the periods presented (in thousands, except per share amounts). | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Year Ended December 31, 2011: | |||||||||||||||||
Net revenue | $ | 48,543 | $ | 52,458 | $ | 47,805 | $ | 47,021 | |||||||||
Gross profit | 11,930 | 13,113 | 11,441 | 8,799 | |||||||||||||
Income (loss) before income taxes and discontinued operations | (12 | ) | (302 | ) | (3,162 | ) | (4,859 | ) | |||||||||
Net income (loss) from continuing operations | (62 | ) | (367 | ) | (3,237 | ) | (4,798 | ) | |||||||||
Basic and diluted net income (loss) per share from continuing operations | $ | — | $ | (0.01 | ) | $ | (0.06 | ) | $ | (0.08 | ) | ||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||
Net revenue | $ | 54,598 | $ | 47,708 | $ | 48,223 | $ | 44,019 | |||||||||
Gross profit | 15,565 | 12,661 | 12,268 | 7,877 | |||||||||||||
Income (loss) before income taxes and discontinued operations | 69 | (2,545 | ) | (2,581 | ) | (4,596 | ) | ||||||||||
Net income (loss) from continuing operations | 160 | (2,945 | ) | (2,734 | ) | (4,883 | ) | ||||||||||
Basic and diluted net income (loss) per share from continuing operations | $ | — | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.08 | ) | ||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Foreign Currency Translation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Accounting Policies [Abstract] | ' | ' | ' |
Foreign currency translation gains (losses) | $0.50 | ($0.30) | ($0.20) |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Advertising Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Accounting Policies [Abstract] | ' | ' | ' |
Advertising expense | $1.20 | $1.20 | $1.10 |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Cash and Cash Equivalents) (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $40,315 | $46,168 | $45,732 | $57,574 |
Foreign Subsidiaries [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $4,500 | ' | ' | ' |
Summary_Of_Significant_Account6
Summary Of Significant Accounting Policies (Components of Property and Equipment) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Propertyand equipment, gross | $18,804,000 | $14,320,000 | ' |
Less accumulated depreciation | -11,657,000 | -9,348,000 | ' |
Property and equipment, net | 7,147,000 | 4,972,000 | ' |
Depreciation | 2,500,000 | 2,200,000 | 1,800,000 |
Machinery and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Propertyand equipment, gross | 14,810,000 | 11,577,000 | ' |
Furniture, fixtures, and computer software [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Propertyand equipment, gross | 1,159,000 | 854,000 | ' |
Leasehold improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Propertyand equipment, gross | 1,926,000 | 1,034,000 | ' |
Construction in progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Propertyand equipment, gross | $909,000 | $855,000 | ' |
Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life | '5 years | ' | ' |
Summary_Of_Significant_Account7
Summary Of Significant Accounting Policies (Concentration of Customers and Suppliers) (Details) (USD $) | Dec. 31, 2012 | Jan. 31, 2008 | Oct. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2011 |
In Millions, except Share data, unless otherwise specified | customer | HP [Member] | HP [Member] | HP [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Net Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Common Stock [Member] | |
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | HP [Member] | HP [Member] | HP [Member] | ||||||
HP [Member] | HP [Member] | HP [Member] | NetApp, Inc. [Member] | NetApp, Inc. [Member] | NetApp, Inc. [Member] | Tektronix [Member] | Tektronix [Member] | Tektronix [Member] | Other customers less than 10% [Member] | Other customers less than 10% [Member] | Other customers less than 10% [Member] | ||||||||||||
Major customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Receivable, Gross | ' | ' | ' | $17 | $22.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of major customers | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | 68.00% | 74.00% | 57.00% | 0.00% | 0.00% | 26.00% | 10.00% | 6.00% | 0.00% | 22.00% | 20.00% | 17.00% | 68.00% | 70.00% | ' |
Product purchase agreement, period | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase shares of our common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,602,489 |
Warrants, exercise price | ' | 2.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 |
Summary_Of_Significant_Account8
Summary Of Significant Accounting Policies (Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $203 | $0 | ' |
Additions to allowance | 37 | 203 | 0 |
Balance, quarter ended | 240 | 203 | 0 |
Discontinued Operations [Member] | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Additions to allowance | $0 | $200 | $0 |
Summary_Of_Significant_Account9
Summary Of Significant Accounting Policies (Revenue Recognition) (Details) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Sales Revenue, Services, Net [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Service revenue, as a percentage of total revenue | 10.00% | 10.00% | 10.00% |
Minimum [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Service contract terms | '12 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Service contract terms | '36 months | ' | ' |
Recovered_Sheet1
Summary Of Significant Accounting Policies (Software) (Details) (Software [Member], USD $) | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 |
Net Revenue [Member] | Net Revenue [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Overstatement of revenue | ' | $2.80 | $1.40 | ' | ' | ' | ' |
Overstatement of costs | ' | 1.9 | 1.2 | ' | ' | ' | ' |
Out-of-period impact expense (revenue) adjustment | $1.10 | ' | ' | ($2) | ($4.20) | $0.90 | $3.10 |
Recovered_Sheet2
Summary Of Significant Accounting Policies (Changes in the Carrying Amount of Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill | $44,840 | $44,840 | ' |
Accumulated impairment losses | -44,840 | -44,840 | -40,700 |
Goodwill acquired during the year | 0 | 0 | ' |
Impairment losses | 0 | -4,140 | 0 |
Goodwill | 44,840 | 44,840 | 44,840 |
Goodwill, net of accumulated impairment losses | 0 | 0 | ' |
Storage Systems [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill | 40,700 | 40,700 | ' |
Accumulated impairment losses | -40,700 | -40,700 | -40,700 |
Goodwill acquired during the year | 0 | 0 | ' |
Impairment losses | 0 | 0 | ' |
Goodwill | 40,700 | 40,700 | ' |
Goodwill, net of accumulated impairment losses | 0 | 0 | ' |
Standalone Storage Software [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill | 4,140 | 4,140 | ' |
Accumulated impairment losses | -4,140 | -4,140 | 0 |
Goodwill acquired during the year | 0 | 0 | ' |
Impairment losses | 0 | -4,140 | ' |
Goodwill | 4,140 | 4,140 | ' |
Goodwill, net of accumulated impairment losses | $0 | $0 | ' |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | Jan. 31, 2008 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Unvested stock awards [Member] | Unvested stock awards [Member] | Unvested stock awards [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | ||
Outstanding equity awards not included in the calculation of diluted net loss per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equity awards not included in the calculation of diluted net loss per share | ' | 8,952,129 | 7,314,039 | 6,179,547 | 655,402 | 2,221,205 | 2,099,523 | 1,602,489 | 1,602,489 | 1,602,489 |
Range of exercise prices, lower limit | ' | $0.47 | $0.47 | $0.47 | ' | ' | ' | ' | ' | ' |
Range of exercise prices, upper limit | ' | $16.36 | $16.36 | $16.36 | ' | ' | ' | ' | ' | ' |
Warrants, exercise price | 2.4 | ' | ' | ' | ' | ' | ' | 2.4 | 2.4 | 2.4 |
Acquisitions_Consideration_Tra
Acquisitions (Consideration Transferred) (Details) (Cloverleaf Communications, Inc. [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jan. 26, 2010 |
Cloverleaf Communications, Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Cash consideration | $703 |
Dot Hill common stock issued to Cloverleaf | 8,132 |
Consideration transferred | $8,835 |
Acquisitions_Purchase_Price_Al
Acquisitions (Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Jan. 26, 2010 | Jan. 26, 2010 | Jan. 26, 2010 |
In Thousands, unless otherwise specified | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | ||
Acquired software [Member] | Trade name [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $78 | ' | ' |
Accounts receivable | ' | ' | ' | 55 | ' | ' |
Inventory | ' | ' | ' | 67 | ' | ' |
Other current assets | ' | ' | ' | 37 | ' | ' |
Property ad equipment | ' | ' | ' | 452 | ' | ' |
Other non-current assets | ' | ' | ' | 23 | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | 6,375 | 181 |
Goodwill | 0 | 0 | 4,100 | 4,140 | ' | ' |
Accounts payable | ' | ' | ' | -269 | ' | ' |
Current maturities of long-term loan | ' | ' | ' | -775 | ' | ' |
Accrued compensation | ' | ' | ' | -401 | ' | ' |
Accrued expenses | ' | ' | ' | -172 | ' | ' |
Accrued Cloverleaf transaction costs | ' | ' | ' | -924 | ' | ' |
Other non-current liabilities | ' | ' | ' | -32 | ' | ' |
Total | ' | ' | ' | $8,835 | ' | ' |
Acquisitions_Pro_Forma_Results
Acquisitions (Pro Forma Results) (Details) (Cloverleaf Communications, Inc. [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2010 |
Cloverleaf Communications, Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Net revenue | $252,571 |
Net loss | ($13,237) |
Basic and diluted net loss per share | ($0.25) |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 26, 2010 | Mar. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment losses | ' | ' | ' | $0 | $4,140,000 | $0 |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of awards vesting | 33.33% | ' | ' | ' | ' | ' |
Minimum [Member] | Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Award vesting period | '1 year | ' | ' | ' | ' | ' |
Maximum [Member] | Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Award vesting period | '2 years | ' | ' | ' | ' | ' |
Cloverleaf Communications, Inc. [Member] | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Voting eaquity interests acquired | 100.00% | ' | ' | ' | ' | ' |
Cash consideration | 703,000 | ' | ' | ' | ' | ' |
Equity interest issued, number of shares | 4,758,530 | ' | ' | ' | ' | ' |
Dot Hill common stock value issued to Cloverleaf | 8,132,000 | ' | ' | ' | ' | ' |
Common stock, share price | $1.71 | ' | ' | ' | ' | ' |
Assumed liabilities | 1,800,000 | ' | ' | ' | ' | ' |
Accrued Cloverleaf transaction costs | 800,000 | ' | ' | ' | ' | ' |
Transaction costs, period expense | ' | 300,000 | 500,000 | ' | ' | ' |
Consideration transferred | 8,835,000 | ' | ' | ' | ' | ' |
Impairment losses | ' | ' | ' | ' | 4,100,000 | ' |
Revenue included in discontinued operations | ' | ' | ' | 400,000 | 1,600,000 | 700,000 |
Net income (loss) related to discontinued operations | ' | ' | ' | -4,500,000 | -13,600,000 | -6,000,000 |
Cloverleaf Communications, Inc. [Member] | Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Equity interest issued, number of shares | 327,977 | ' | ' | ' | ' | ' |
Cloverleaf Communications, Inc. [Member] | Acquired software [Member] | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of intangible assets | ' | ' | ' | ' | $6,400,000 | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | |
Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | AssuredUVS [Member] | ||||||||||||
Trade name [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | |||||||||||||||||
Software [Member] | Software [Member] | Trade name [Member] | Trade name [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||
Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued intangible assets, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $1,824,000 | ' | $5,000,000 | ' | $4,900,000 | ' | $100,000 | ' | ' |
Discontinued property and equipment, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,031,000 | ' | 1,200,000 | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, estimated useful life - discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years |
Impaired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' |
Impairment of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | 100,000 | 1,600,000 | ' | ' | ' | ' | 2,800,000 | ' | 100,000 | ' | ' | ' |
Impairment of property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of goodwill | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 4,140,000 | 0 | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 360,000 | 1,634,000 | 656,000 | ' | ' | ' | ' | ' | ' | ' |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,501,000 | 5,284,000 | 2,011,000 | ' | ' | ' | ' | ' | ' | ' |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,141,000 | -3,650,000 | -1,355,000 | ' | ' | ' | ' | ' | ' | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 741,000 | 4,355,000 | 3,465,000 | ' | ' | ' | ' | ' | ' | ' |
Sales and marketing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,000 | 651,000 | 327,000 | ' | ' | ' | ' | ' | ' | ' |
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 765,000 | 762,000 | 766,000 | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge (recovery) | 0 | 0 | 0 | 0 | 0 | 700,000 | 0 | 0 | -205,000 | 668,000 | 2,089,000 | ' | ' | ' | 844,000 | 0 | 107,000 | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 4,140,000 | 0 | ' | ' | ' | ' | ' | ' | ' |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,406,000 | 9,908,000 | 4,665,000 | ' | ' | ' | ' | ' | ' | ' |
Operating loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,547,000 | -13,558,000 | -6,020,000 | ' | ' | ' | ' | ' | ' | ' |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,000 | -2,000 | 1,000 | ' | ' | ' | ' | ' | ' | ' |
Loss from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ($4,548,000) | ($13,560,000) | ($6,019,000) | ' | ' | ' | ($4,548,000) | ($13,560,000) | ($6,019,000) | ' | ' | ' | ' | ' | ' | ' |
Discontinued_Operations_Major_
Discontinued Operations (Major Classes of Assets and Liabilities Related to Discontinued Operations) (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' |
Restructuring accrual | $365 | $1,328 |
AssuredUVS [Member] | ' | ' |
Assets of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Inventories | 0 | 56 |
Prepaid expenses and other assets | 5 | 110 |
Total current assets | 5 | 166 |
Property and equipment, net | 0 | 1,031 |
Intangible assets, net | 0 | 1,824 |
Other assets | 55 | 54 |
Total assets | 60 | 3,075 |
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | ' | ' |
Accounts payable | 7 | 203 |
Accrued compensation | 0 | 372 |
Accrued expenses | 20 | 232 |
Deferred revenue | 0 | 319 |
Restructuring accrual | 206 | 0 |
Liabilities of Disposal Group, Including Discontinued Operation, Current | $233 | $1,126 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Purchased parts and materials | $3,051 | $3,994 |
Finished goods | 1,986 | 1,257 |
Total inventory | $5,037 | $5,251 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2012 | |
Cloverleaf Communications, Inc. [Member] | RaidCore technology [Member] | RaidCore technology [Member] | NAS technology [Member] | Software [Member] | Trade name [Member] | Cost of goods sold [Member] | ||||
Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | |||||||||
Finite-Lived Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | ' | ' | '4 years | '4 years | '3 years | '3 years | ' | ' |
Gross | $4,256,000 | $6,520,000 | ' | ' | $4,256,000 | $4,256,000 | $214,000 | $2,050,000 | ' | ' |
Accumulated Amortization | -4,256,000 | -3,919,000 | ' | ' | -4,256,000 | -3,477,000 | -214,000 | -228,000 | ' | ' |
Net | 0 | 2,601,000 | ' | ' | 0 | 779,000 | 0 | 1,822,000 | ' | ' |
Impairment of intangible assets | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | 100,000 | 1,600,000 |
Amortization of intangible assets | $1,100,000 | $1,100,000 | $800,000 | ' | ' | ' | ' | ' | ' | ' |
Product_Warranties_Details
Product Warranties (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
Sep. 30, 2011 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | |
Power supply devices [Member] | Power supply devices [Member] | Power supply devices [Member] | Power supply devices [Member] | Power supply devices [Member] | Power supply devices [Member] | Cost of sales [Member] | Accrued expenses [Member] | Accrued expenses [Member] | Prepaid expenses and other assets [Member] | Prepaid expenses and other assets [Member] | ||||||||
Power supply devices [Member] | Power supply devices [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum product warranty term | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursements from suppliers | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | $1,200,000 | ' | ' | ' | ' |
Warranty accrual | ' | ' | 4,455,000 | 6,871,000 | 982,000 | ' | ' | ' | ' | ' | ' | 5,500,000 | 2,800,000 | ' | ' | ' | ' | ' |
Previously recoognized warranty liability | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated product warranty liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | 1,500,000 | ' | ' |
Product warranty expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | ' | ' | ' |
Product warranty payments | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement receivable | ' | ' | ' | ' | ' | 1,200,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 1,300,000 |
Reimbursement receivable, in the form of cash and/or note receivable | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received pursuant to settlement | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining reimbursement receivable after payment | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of product rebates/price concessions under settlement agreement | ' | ' | '39 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | 6,871,000 | 982,000 | 993,000 | ' | ' | ' | ' | ' | ' | 5,500,000 | 2,800,000 | ' | ' | ' | ' | ' |
Charges to operations | ' | ' | 2,116,000 | 8,244,000 | 2,623,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deductions for costs incurred | ' | ' | -4,532,000 | -2,355,000 | -2,634,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, end of period | ' | ' | $4,455,000 | $6,871,000 | $982,000 | ' | ' | ' | ' | ' | ' | $5,500,000 | $2,800,000 | ' | ' | ' | ' | ' |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 25 Months Ended | 3 Months Ended | 12 Months Ended | 18 Months Ended | 12 Months Ended | 25 Months Ended | 12 Months Ended | 49 Months Ended | 18 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jul. 31, 2012 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | |
2008 Plan | 2008 Plan | 2010 Plan | 2010 Plan | 2010 Plan | 2010 Plan | 2010 Plan | 2012 Plan | Contract Termination and Other Associated Costs | Contract Termination and Other Associated Costs | Contract Termination and Other Associated Costs | Contract Termination and Other Associated Costs | Contract Termination and Other Associated Costs | Severance and Related Costs | Severance and Related Costs | Severance and Related Costs | Severance and Related Costs | Severance and Related Costs | Contract Termination | Contract Termination | Contract Termination | ||||||||||||
employee | employee | employee | 2008 Plan | 2008 Plan | 2010 Plan | 2010 Plan | 2012 Plan | 2008 Plan | 2010 Plan | 2010 Plan | 2010 Plan | 2012 Plan | 2008 Plan | 2010 Plan | 2012 Plan | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Positions terminated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70 | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance-related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | ' | ' | $400,000 | $400,000 | ' | ' | ' |
Contract termination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | 300,000 | 400,000 |
Abatement of rent and other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage reduction in workforce | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions intended to terminate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual commitments expected to remain obligations through December 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued restructuring balance, beginning of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116,000 | 164,000 | ' | ' | ' | 1,212,000 | 1,500,000 | 116,000 | 144,000 | ' | ' | 0 | 20,000 | ' | ' | ' | ' | ' |
Restructuring plan expense | 0 | 0 | 0 | 0 | 0 | 700,000 | 0 | 0 | -205,000 | 668,000 | 2,089,000 | ' | ' | ' | 6,000 | 62,000 | ' | ' | 772,000 | 57,000 | 621,000 | 6,000 | 62,000 | 332,000 | ' | 0 | 0 | ' | 440,000 | ' | ' | ' |
Adjustments to restructuring plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -21,000 | ' | ' | ' | 206,000 | -247,000 | ' | -21,000 | ' | 206,000 | ' | 0 | ' | ' | 0 | ' | ' | ' |
Cash payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -87,000 | -110,000 | ' | ' | -772,000 | -877,000 | -909,000 | -87,000 | -90,000 | -332,000 | ' | 0 | -20,000 | ' | -440,000 | ' | ' | ' |
Accrued restructuring balance, end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,000 | $116,000 | $164,000 | ' | $206,000 | $145,000 | $1,212,000 | $14,000 | $116,000 | $206,000 | ' | $0 | $0 | $20,000 | $0 | ' | ' | ' |
Credit_Facilities_Details
Credit Facilities (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Credit facility | Cash management services sublimit | Letters of credit | Threshold One [Member] | Threshold Two [Member] | Threshold Three [Member] | |||
Silicon Valley Bank | Silicon Valley Bank | Silicon Valley Bank | ||||||
Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity | ' | ' | $30,000,000 | $300,000 | ' | ' | ' | ' |
Customer accounts receivable concentration limit | ' | ' | ' | ' | ' | 25.00% | 50.00% | 85.00% |
Minimum net worth requirement | ' | ' | 50,000,000 | ' | ' | ' | ' | ' |
Potential increase in borrowing capacity | ' | ' | 20,000,000 | ' | ' | ' | ' | ' |
Borrowing base requirement | ' | ' | 40,000,000 | ' | ' | ' | ' | ' |
Period for borrowing base requirement | ' | ' | '90 days | ' | ' | ' | ' | ' |
Cash and cash equivalents, net of amount outstanding under credit agreement | ' | ' | 20,000,000 | ' | ' | ' | ' | ' |
Interest rate over prime | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | 0 | ' | ' | ' |
Amount outstanding | 2,800,000 | 0 | 2,800,000 | ' | ' | ' | ' | ' |
Available borrowing capacity | ' | ' | $16,800,000 | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment, net | $0 | ' | ' |
Property and equipment impairment charges | -244,000 | ' | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | -2,800,000 | ' |
Goodwill impairment charge | 0 | -4,140,000 | 0 |
Write-off of property and equipment, and software | -1,891,000 | ' | ' |
Accounts receivable | 25,025,000 | 31,697,000 | ' |
Accounts payable | 22,659,000 | ' | ' |
Notes payable | ' | 71,000 | ' |
Credit facility borrowings | 2,800,000 | 0 | ' |
Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment, net | 0 | ' | ' |
Accounts receivable | 0 | 0 | ' |
Accounts payable | 0 | 0 | ' |
Notes payable | ' | 0 | ' |
Contingent consideration due to Ciprico | ' | 0 | ' |
Credit facility borrowings | 0 | ' | ' |
Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment, net | 0 | ' | ' |
Accounts receivable | 25,025,000 | 31,697,000 | ' |
Accounts payable | 22,659,000 | 31,434,000 | ' |
Contingent consideration due to Ciprico | ' | 100,000 | ' |
Credit facility borrowings | 2,800,000 | ' | ' |
Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment, net | 0 | ' | ' |
Accounts receivable | 0 | 0 | ' |
Accounts payable | 0 | 0 | ' |
Notes payable | ' | 0 | ' |
Contingent consideration due to Ciprico | ' | 0 | ' |
Credit facility borrowings | 0 | ' | ' |
Estimate of Fair Value [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Contingent consideration due to Ciprico | ' | 100,000 | ' |
Software [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ' | ' |
Impairment of Intangible Assets (Excluding Goodwill) | -1,647,000 | ' | ' |
Software [Member] | Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ' | ' |
Software [Member] | Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ' | ' |
Software [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ' | ' |
Trade name [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 0 | ' |
Recurring [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Cash and cash equivalents, fair value adjustment | 0 | 0 | ' |
Recurring [Member] | Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Cash and cash equivalents | 40,315,000 | 46,168,000 | ' |
Recurring [Member] | Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Recurring [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Nonrecurring [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment impairment charges | ' | 0 | ' |
Goodwill at fair value | ' | 0 | ' |
Write-off of property and equipment, and software | ' | -7,068,000 | ' |
Nonrecurring [Member] | Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment, net | ' | 0 | ' |
Goodwill at fair value | ' | 0 | ' |
Nonrecurring [Member] | Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment, net | ' | 0 | ' |
Goodwill at fair value | ' | 0 | ' |
Nonrecurring [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Property and equipment, net | ' | 1,150,000 | ' |
Goodwill at fair value | ' | 0 | ' |
Nonrecurring [Member] | Software [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 2,050,000 | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | -2,807,000 | ' |
Nonrecurring [Member] | Software [Member] | Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 0 | ' |
Nonrecurring [Member] | Software [Member] | Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 0 | ' |
Nonrecurring [Member] | Software [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 2,050,000 | ' |
Nonrecurring [Member] | Trade name [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 0 | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | -121,000 | ' |
Nonrecurring [Member] | Trade name [Member] | Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 0 | ' |
Nonrecurring [Member] | Trade name [Member] | Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | 0 | ' |
Nonrecurring [Member] | Trade name [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | ' | $0 | ' |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Jan. 26, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
Nonrecurring [Member] | Software [Member] | Software [Member] | Trade name [Member] | Trade name [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Cloverleaf Communications, Inc. [Member] | Property and Equipment [Member] | Property and Equipment [Member] | Property and Equipment [Member] | ||||
Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | $7,147,000 | $4,972,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 | ' |
Impairment of property and equipment | 1,647,000 | 2,928,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Property and equipment, net | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,150,000 |
Acquired software at carrying value | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of acquired software | ' | ' | ' | ' | 0 | 2,050,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Impairment of software | ' | 2,800,000 | ' | ' | 1,647,000 | 2,807,000 | ' | 121,000 | ' | ' | ' | ' | ' | ' | ' |
Acquired trade name at carrying value | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | 4,140,000 | ' | ' | ' | ' |
Goodwill at fair value | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Impairment losses | $0 | $4,140,000 | $0 | ' | ' | ' | ' | ' | $4,100,000 | ' | ' | $4,140,000 | ' | ' | ' |
Royalty payments to Ciprico based on estimated future sales | 6.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Anticpated increase in equity, if deferred tax benefits are recognized | $300,000 | ' | ' | ' |
Deferred tax liabilities from undistributed foreign earnings | 500,000 | ' | ' | ' |
Unrecognized tax benefits | 5,726,000 | 5,025,000 | 5,111,000 | 4,842,000 |
Unrecognized tax benefits that would impact effective tax rate | 900,000 | 200,000 | 200,000 | ' |
Unrecognized tax benefits that would not impact effective tax rate | 4,800,000 | 4,800,000 | 4,900,000 | ' |
Income tax penalties and tax related interest accrued | 200,000 | 100,000 | 100,000 | ' |
Valuation allowance | $99,731,000 | $98,271,000 | ' | ' |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income (Loss) Before Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income (loss) from continuing operations before taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ($7,211) | ($6,229) | ($7,448) |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -2,442 | -2,106 | 429 |
Total income (loss) from continuing operations before taxes | ($4,596) | ($2,581) | ($2,545) | $69 | ($4,859) | ($3,162) | ($302) | ($12) | ($9,653) | ($8,335) | ($7,019) |
Income_Taxes_Components_of_Inc1
Income Taxes (Components of Income Tax Provision (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Current: | ' | ' | ' |
Federal | $0 | $0 | $0 |
State, local and foreign | 749 | 129 | 213 |
Current Income Tax Expense (Benefit) | 749 | 129 | 213 |
Deferred: | ' | ' | ' |
Federal | 0 | 0 | 0 |
State, local and foreign | 0 | 0 | 0 |
Deferred Income Tax Expense (Benefit) | 0 | 0 | 0 |
Income tax provision | $749 | $129 | $213 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
State and local income taxes, net of federal benefit | ($3,282) | ($2,834) | ($2,386) |
State and local income taxes, net of federal benefit | -16 | -85 | -153 |
State rate change and other adjustments | 531 | 160 | 737 |
Increase in valuation allowance | 597 | 1,490 | 1,400 |
Foreign tax differential | 915 | 816 | 70 |
Research and development credits | 127 | -49 | -48 |
Share based compensation | 518 | 402 | 378 |
Uncertain tax positions | 767 | -46 | -2 |
Adjustments to deferred tax assets | 525 | 0 | 0 |
Other | 67 | 275 | 217 |
Income tax provision | $749 | $129 | $213 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets, Gross [Abstract] | ' | ' |
Net operating loss and tax credit carry forwards | $93,547 | $88,675 |
Inventory reserve and uniform capitalization | 2,016 | 1,959 |
Stock options and warrants | 2,330 | 2,807 |
In-process research and development | 237 | 241 |
Allowance for bad debts | 232 | 265 |
Vacation accrual | 386 | 354 |
Deferred rent | 429 | 283 |
Landlord provided leasehold improvements | 317 | 0 |
Deferred revenue | 376 | 0 |
Warranty accrual | 937 | 494 |
Depreciation and amortization | 695 | 1,579 |
Other accruals and reserves | 701 | 4,252 |
Acquired intangibles | 1,336 | 1,386 |
Total deferred tax assets | 103,539 | 102,295 |
Deferred Tax Liabilities, Gross [Abstract] | ' | ' |
State taxes | -3,603 | -3,568 |
Cloverleaf intangibles | 0 | -456 |
Other | -205 | 0 |
Total deferred income tax liabilities | -3,808 | -4,024 |
Valuation allowance | 99,731 | 98,271 |
Net deferred tax assets | $0 | $0 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefit Activity) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits, beginning balance | ' | $5,111 | $4,842 |
Increase related to prior period positions | 583 | 0 | 367 |
Increase related to current year tax positions | 241 | 124 | 91 |
Decrease related to prior period positions | -123 | -210 | -101 |
Decrease related to change in prior year estimate | 0 | 0 | -88 |
Unrecognized tax benefits, ending balance | $5,726 | $5,025 | $5,111 |
Income_Taxes_Operating_Loss_Ca
Income Taxes (Operating Loss Carryforwards) (Details) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Federal [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating Loss Carryforwards | $203.10 |
State [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating Loss Carryforwards | 105.4 |
Foreign Tax Authority [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating Loss Carryforwards | $43.70 |
Income_Taxes_Tax_Credit_Carryf
Income Taxes (Tax Credit Carryforwards) (Details) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Federal [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Tax credit carryforward | $6.60 |
Tax credit carryforward with expiration date | 6.1 |
Tax dredit carryforward with no expiration date | 0.5 |
State [Member] | ' |
Tax Credit Carryforward [Line Items] | ' |
Tax credit carryforward | 5.5 |
Tax dredit carryforward with no expiration date | $5.50 |
Stockholders_Equity_Equity_Inc2
Stockholders' Equity, Equity Incentive Plans and Warrants (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2008 | Dec. 31, 2012 | Jun. 15, 2009 | Dec. 31, 2012 | 2-May-11 | Jun. 15, 2009 | Dec. 31, 2012 | Jun. 15, 2009 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 26, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2008 |
2000 EIP [Member] | 2000 EIP [Member] | 2009 EIP [Member] | 2009 EIP [Member] | 2009 EIP [Member] | 2000 NEDSOP [Member] | 2000ESPP [Member] | 2000ESPP [Member] | 2000ESPP [Member] | 2000ESPP [Member] | 2000ESPP [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Shares [Member] | Director [Member] | Director [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||||
2000 EIP [Member] | 2009 EIP [Member] | 2009 EIP [Member] | 2000 NEDSOP [Member] | Vesting after first year [Member] | |||||||||||||||||||||||||||
2000 NEDSOP [Member] | |||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected Term | ' | ' | ' | ' | ' | ' | '10 years | ' | '7 years | ' | ' | ' | ' | ' | '6 months | '6 months | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for future issuance (in shares) | ' | ' | ' | ' | ' | ' | ' | 7,112,217 | 4,573,892 | 8,000,000 | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 58,265,000 | 58,265,000 | 57,699,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,608 | 572,794 | 54,282 | ' | ' | 58,265,000 | 57,699,000 | 55,953,000 | 48,952,000 | ' |
Options to purchase common stock, outstanding | 8,952,129 | 8,952,129 | 7,394,551 | ' | ' | ' | 4,039,203 | ' | 4,362,924 | ' | ' | ' | ' | 1,867,481 | ' | ' | ' | ' | ' | 2,233,563 | ' | ' | ' | ' | 550,000 | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 58,265,000 | 58,265,000 | 57,699,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of awards vesting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.33% | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P10Y | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '1 year | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Number of shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 343,124 | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount from market price on share purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 675,149 | 667,265 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized share-based compensation cost | $3.30 | $3.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted, weighted average exercise price | ' | $0.89 | $1.78 | $0.97 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.23 | $2.68 | $1.68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | ' | 0 | 0.8 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested in period | 2.1 | ' | ' | 1.2 | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.3 | 1.4 | 0.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from exercise of stock options | ' | 0 | 0.5 | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.7 | 0.9 | 0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | ' | ' | $0.94 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,602,489 |
Number of warrants issued as a percentage of outstanding shares | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, exercise price | ' | ' | ' | ' | ' | 2.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contra-revenue due to warrant agreement | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Equity_Inc3
Stockholders' Equity, Equity Incentive Plans and Warrants (Share-based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | $3,765 | $5,116 | $2,549 |
Related deferred income tax benefits | 0 | 0 | 0 |
Share-based compensation expense, net of tax | 3,765 | 5,116 | 2,549 |
Stock Options [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | 1,508 | 1,434 | 1,577 |
Restricted Stock [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | 1,958 | 2,303 | 610 |
Stock Bonus Plan [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | 0 | 1,005 | 0 |
Employee Stock Purchase Pan [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | 299 | 374 | 362 |
Cost of goods sold [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | 617 | 828 | 489 |
Selling and marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | 419 | 540 | 333 |
Research and development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | 1,705 | 2,200 | 908 |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense, gross | $1,024 | $1,548 | $819 |
Stockholders_Equity_Equity_Inc4
Stockholders' Equity, Equity Incentive Plans and Warrants (Summary of Stock Option Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Number of shares | ' |
Options outstanding at beginning of period (in shares) | 7,394,551 |
Options granted (in shares) | 2,486,000 |
Options exercised (in shares) | -27,189 |
Options forfeited (in shares) | -574,705 |
Options expired (in shares) | -326,528 |
Options outstanding at end of period (in shares) | 8,952,129 |
Options vested and expected to vest (in shares) | 8,560,457 |
Options exercisable (in shares) | 5,622,274 |
Weighted average exercise price | ' |
Options outstanding at beginning of period, weighted average exercise price | $3.39 |
Options granted, weighted average exercise price | $1.36 |
Options exercised, weighted average exercise price | $0.83 |
Options forfeited, weighted average exercise price | $1.84 |
Options expired, weighted average exercise price | $3.53 |
Options vested and expected to vest, weighted average exercise price | $3 |
Options exercisable, weighted average exercise price | $3.67 |
Options outstanding at end of period, weighted average exercise price | $2.93 |
Options outstanding, weighted average remaining contractual term | '4 years 6 months 22 days |
Options outstanding, aggregate intrinsic value | $28,380 |
Options vested and expected to vest, weighted average remaining contractual term | '4 years 5 months 9 days |
Options vested and expected to vest, aggregate intrinsic value | 24,990 |
Options exercisable, weighted average remaining contractual term | '3 years 9 months 7 days |
Options exercisable, aggregate intrinsic value | $9,312 |
Stockholders_Equity_Equity_Inc5
Stockholders' Equity, Equity Incentive Plans and Warrants (Summary of Restricted Stock Awards Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Options outstanding, number of shares | 8,952,129 | 7,394,551 | ' |
Options outstanding, weighted average exercise price | $2.93 | $3.39 | ' |
Options granted (in shares) | 2,486,000 | ' | ' |
Options granted, weighted average exercise price | $0.89 | $1.78 | $0.97 |
Options forfeited (in shares) | -574,705 | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Options outstanding, number of shares | ' | 2,233,563 | ' |
Options outstanding, weighted average exercise price | $2.16 | $2.09 | ' |
Options granted (in shares) | 843,968 | ' | ' |
Options granted, weighted average exercise price | $1.23 | ' | ' |
Options vested (in shares) | -1,915,270 | ' | ' |
Options vested, weighted average exercise price | $1.72 | ' | ' |
Options forfeited (in shares) | -506,859 | ' | ' |
Options forfeited, weighted average exercise price | $1.92 | ' | ' |
Options outstanding and unvested (in shares) | ' | 655,402 | ' |
Stockholders_Equity_Equity_Inc6
Stockholders' Equity, Equity Incentive Plans and Warrants (Schedule of Fair Value Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Forfeiture Rate, Minimum | 0.00% | 0.00% | 0.00% |
Forfeiture Rate, Maximum | 12.25% | 12.69% | 12.37% |
EIP and NEDSOP [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.19% | 1.84% | 2.25% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 81.00% | 85.00% | 74.00% |
Expected Term | '5 years 2 months 12 days | '5 years 4 months 10 days | '5 years 10 months 24 days |
2000ESPP [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.12% | 0.17% | 0.19% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 64.00% | 70.00% | 101.00% |
Expected Term | '6 months | '6 months | '6 months |
Forfeiture Rate | 0.00% | 0.00% | 0.00% |
Employee_Retirement_Benefit_Pl1
Employee Retirement Benefit Plans (Details) (401K [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Maximum employee contribution, as a percentage | 100.00% | ' | ' |
Contributions to the retirement savings plan | $0.30 | $0.10 | $0.10 |
Minimum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Vesting period | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Commitments_And_Contingencies_1
Commitments And Contingencies (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jan. 31, 2012 | Jan. 31, 2012 |
OEM and License Agreement Case [Member] | Customer [Member] | ||||
OEM and License Agreement Case, Counterclaim [Member] | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Rent expense | $1.10 | $1 | $1.10 | ' | ' |
Unconditional purchase obligations | 21.8 | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Damages sought | ' | ' | ' | 1.1 | 0.6 |
Initial estimate of potential exposure, minimum | ' | ' | ' | 0 | ' |
Initial estimate of potential exposure, maximum | ' | ' | ' | $0.60 | ' |
Commitments_And_Contingencies_2
Commitments And Contingencies (Future Minimum Lease Payments) (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due | ' |
2013 | $1,301 |
2014 | 1,232 |
2015 | 1,224 |
2016 | 1,130 |
2017 | 1,155 |
Thereafter | 488 |
Total minimum lease payments | $6,530 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
segment | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Net revenue | $44,019 | $48,223 | $47,708 | $54,598 | $47,021 | $47,805 | $52,458 | $48,543 | $194,548 | $195,827 | $251,838 |
Long-Lived Assets | 7,750 | ' | ' | ' | 7,867 | ' | ' | ' | 7,750 | 7,867 | 11,548 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 192,801 | 193,755 | 245,372 |
Long-Lived Assets | 7,682 | ' | ' | ' | 4,945 | ' | ' | ' | 7,682 | 4,945 | 5,140 |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 76 | 4,975 |
Long-Lived Assets | 68 | ' | ' | ' | 2,922 | ' | ' | ' | 68 | 2,922 | 6,408 |
Asia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,733 | 1,996 | 1,491 |
Long-Lived Assets | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | $0 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $44,019 | $48,223 | $47,708 | $54,598 | $47,021 | $47,805 | $52,458 | $48,543 | $194,548 | $195,827 | $251,838 |
Gross profit | 7,877 | 12,268 | 12,661 | 15,565 | 8,799 | 11,441 | 13,113 | 11,930 | 48,371 | 45,283 | 44,185 |
Total income (loss) from continuing operations before taxes | -4,596 | -2,581 | -2,545 | 69 | -4,859 | -3,162 | -302 | -12 | -9,653 | -8,335 | -7,019 |
Net income (loss) | -4,883 | -2,734 | -2,945 | 160 | -4,798 | -3,237 | -367 | -62 | -14,950 | -22,024 | -13,251 |
Basic and diluted net income (loss) per share | ($0.08) | ($0.05) | ($0.05) | $0 | ($0.08) | ($0.06) | ($0.01) | $0 | ($0.26) | ($0.40) | ($0.25) |
Restructuring charge (recovery) | $0 | $0 | $0 | $0 | $0 | $700 | $0 | $0 | ($205) | $668 | $2,089 |
Quarterly_Financial_Informatio3
Quarterly Financial Information (Long-Term Software Contract) (Details) (Software [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 | Dec. 31, 2012 |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ' | ' |
Out-of-period impact expense (revenue) adjustment | ' | ($1.10) |
Net Revenue [Member] | ' | ' |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ' | ' |
Out-of-period impact expense (revenue) adjustment | 2 | 4.2 |
Cost of Goods Sold [Member] | ' | ' |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ' | ' |
Out-of-period impact expense (revenue) adjustment | ($0.90) | ($3.10) |