Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PCTI | |
Entity Registrant Name | PC TEL INC | |
Entity Central Index Key | 1,057,083 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,616,522 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 12,887 | $ 20,432 |
Short-term investment securities | 21,428 | 39,577 |
Accounts receivable, net of allowance for doubtful accounts of $119 and $121 at September 30, 2015 and December 31, 2014, respectively | 20,643 | 23,874 |
Inventories, net | 17,187 | 16,358 |
Deferred tax assets, net | 2,279 | 2,281 |
Prepaid expenses and other assets | 2,440 | 1,757 |
Total current assets | 76,864 | 104,279 |
Property and equipment, net | 14,042 | 14,842 |
Goodwill | 3,493 | 161 |
Intangible assets, net | 12,434 | 2,637 |
Deferred tax assets, net | 10,348 | 9,710 |
Other noncurrent assets | 36 | 40 |
TOTAL ASSETS | 117,217 | 131,669 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 5,631 | 5,495 |
Accrued liabilities | 6,430 | 10,211 |
Total current liabilities | 12,061 | 15,706 |
Other long-term liabilities | 930 | 448 |
Total liabilities | 12,991 | 16,154 |
Stockholders' equity: | ||
Common stock, $0.001 par value, 100,000,000 shares authorized, 17,815,573 and 18,571,419 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 18 | 19 |
Additional paid-in capital | 137,768 | 145,462 |
Accumulated deficit | (33,619) | (30,101) |
Accumulated other comprehensive income | 59 | 135 |
Total stockholders' equity | 104,226 | 115,515 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 117,217 | $ 131,669 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 119 | $ 121 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,815,573 | 18,571,419 |
Common stock, shares outstanding | 17,815,573 | 18,571,419 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
REVENUES | $ 26,526 | $ 27,932 | $ 80,477 | $ 77,769 |
COST OF REVENUES | 17,896 | 16,538 | 52,067 | 45,943 |
GROSS PROFIT | 8,630 | 11,394 | 28,410 | 31,826 |
OPERATING EXPENSES: | ||||
Research and development | 2,863 | 2,659 | 8,506 | 8,970 |
Sales and marketing | 3,603 | 3,054 | 10,558 | 9,312 |
General and administrative | 2,847 | 3,120 | 9,513 | 9,822 |
Amortization of intangible assets | 1,125 | 465 | 2,963 | 1,503 |
Restructuring charges | 413 | 0 | 852 | 0 |
Total operating expenses | 10,851 | 9,298 | 32,392 | 29,607 |
OPERATING INCOME (LOSS) | (2,221) | 2,096 | (3,982) | 2,219 |
Other income, net | 534 | 207 | 2,783 | 738 |
INCOME (LOSS) BEFORE INCOME TAXES | (1,687) | 2,303 | (1,199) | 2,957 |
Expense (benefit) for income taxes | (625) | 85 | (451) | 340 |
NET INCOME (LOSS) | $ (1,062) | $ 2,218 | $ (748) | $ 2,617 |
Net Income (Loss) per Share: | ||||
Basic | $ (0.06) | $ 0.12 | $ (0.04) | $ 0.14 |
Diluted | $ (0.06) | $ 0.12 | $ (0.04) | $ 0.14 |
Weighed Average Shares: | ||||
Basic | 17,626 | 18,112 | 18,059 | 18,155 |
Diluted | 17,626 | 18,271 | 18,059 | 18,346 |
Cash dividend per share | $ 0.05 | $ 0.04 | $ 0.15 | $ 0.12 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,062) | $ 2,218 | $ (748) | $ 2,617 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Foreign currency translation adjustments | (82) | 12 | (76) | (33) |
COMPREHENSIVE INCOME (LOSS) | $ (1,144) | $ 2,230 | $ (824) | $ 2,584 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid - In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
BALANCE at Dec. 31, 2014 | $ 115,515 | $ 19 | $ 145,462 | $ (30,101) | $ 135 |
Stock-based compensation expense | 1,392 | 0 | 1,392 | 0 | 0 |
Issuance of shares for stock purchase and option | 1,018 | 0 | 1,018 | 0 | 0 |
Cancellation of shares for payment of withholding | (412) | 0 | (412) | 0 | 0 |
Repurchase of common stock | (9,693) | (1) | (9,692) | 0 | 0 |
Dividend paid | (2,770) | 0 | 0 | (2,770) | 0 |
Net loss | (748) | 0 | 0 | (748) | 0 |
Change in cumulative translation adjustment, net | (76) | 0 | 0 | 0 | (76) |
BALANCE at Sep. 30, 2015 | $ 104,226 | $ 18 | $ 137,768 | $ 33,619 | $ 59 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net income (loss) | $ (748) | $ 2,617 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,261 | 3,589 |
Stock-based compensation | 1,392 | 2,578 |
(Gain)/loss on disposal/sale of property and equipment | (18) | 9 |
Restructuring costs | 485 | 0 |
Payment of withholding tax on stock based compensation | (412) | (1,025) |
Deferred tax provision | (640) | 468 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 8,641 | (1,641) |
Inventories | (908) | (1,857) |
Prepaid expenses and other assets | (619) | 1,722 |
Accounts payable | 56 | 1,007 |
Income taxes payable | (110) | (51) |
Other accrued liabilities | (3,535) | (1,913) |
Deferred revenue | (1,044) | (75) |
Net cash provided by operating activities | 7,801 | 5,428 |
Investing Activities: | ||
Capital expenditures | (1,583) | (1,884) |
Proceeds from disposal of property and equipment | 40 | 0 |
Purchases of investments | (20,277) | (54,673) |
Redemptions/maturities of short-term investments | 38,426 | 51,232 |
Purchase of business from Nexgen | (20,500) | 0 |
Net cash used in investing activities | (3,894) | (5,325) |
Financing Activities: | ||
Proceeds from issuance of common stock | 1,018 | 839 |
Tax benefit from stock based compensation | 0 | 486 |
Payments for repurchase of common stock | (9,693) | (1,652) |
Cash dividends | (2,770) | (2,218) |
Net cash used in financing activities | (11,445) | (2,545) |
Net decrease in cash and cash equivalents | (7,538) | (2,442) |
Effect of exchange rate changes on cash | (7) | (3) |
Cash and cash equivalents, beginning of year | 20,432 | 21,790 |
Cash and Cash Equivalents, End of Period | $ 12,887 | $ 19,345 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Nature of Operations PCTEL, Inc. (“PCTEL”, the “Company”, “we”, “ours”, and “us”) delivers P C Tel Segment Reporting PCTEL operates in two segments for reporting purposes, Connected Solutions and RF Solutions. The Company’s chief operating decision maker uses the profit and loss results through operating profit and identified assets for the Connected Solutions and RF Solutions segments to make operating decisions. Each segment has its own segment manager as well as its own engineering, sales and marketing, and operational general and administrative functions. All of the Company’s accounting and finance, human resources, IT and legal functions are provided on a centralized basis through the corporate function. The Company manages its balance sheet and cash flows centrally at the corporate level, with the exception of trade accounts receivable and inventory which is managed at the segment level. Each of the segment managers reports to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment. Connected Solutions Segment Connected Solutions designs and delivers performance critical antennas and site solutions for wireless networks globally. The Company’s antennas and site solutions support networks worldwide, including SCADA for oil, gas and utilities, fleet management, industrial operations, health care, small cell and network timing deployment, defense, public safety, education, and broadband access. PCTEL’s performance critical MAXRAD ® There are many competitors for antenna products, as the market is highly fragmented. Competitors include Laird (Cushcraft, Centurion, and Antennex products), Mobile Mark, Radiall/Larsen, Comtelco, Wilson, Commscope (Andrew products), and Kathrein, among others. The Company seeks out product applications that command a premium for product performance and customer service, and avoids commodity markets. PCTEL maintains expertise in several technology areas in order to be competitive in the antenna engineered site solutions market. These include radio frequency engineering, mobile antenna design and manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. RF Solutions Segment RF Solutions develops and provides performance critical test equipment, software, and engineering services for wireless networks. The industry relies upon PCTEL to benchmark network performance, analyze trends, and optimize wireless networks. SeeGull ® On February 27, 2015, PCTEL, Inc. acquired substantially all of the assets of, and assumed certain specified liabilities of, Nexgen Wireless, Inc. (“Nexgen”), pursuant to an Asset Purchase Agreement dated as of February 27, 2015 (the “Nexgen APA”). The business acquired from Nexgen is based in Schaumburg, Illinois. Nexgen provided Meridian™, a network analysis tool portfolio now known as SeeHawk ® PCTEL maintains expertise in several technology areas in order to be competitive in the scanning receiver and related engineering services market. These include radio frequency engineering, DSP engineering, manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. Basis of Consolidation The condensed consolidated balance sheet as of September 30, 2015 and the condensed consolidated statements of operations, statements of comprehensive income, and cash flows for the three and nine months ended September 30, 2015 and 2014, respectively, are unaudited and reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The interim condensed consolidated financial statements are derived from the audited financial statements as of December 31, 2014. The unaudited interim condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted. The significant accounting policies followed by the Company are set forth within the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”). There were no changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2015. In addition, the Company reaffirms the use of estimates in the preparation of the financial statements as set forth in the 2014 Form 10-K. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the 2014 Form 10-K. The results for the operations for the period ended September 30, 2015 may not be indicative of the results for the period ending December 31, 2015. Foreign Currency Translation The Company is exposed to foreign currency fluctuations due to its foreign operations and because products are sold internationally. The functional currency for the Company’s foreign operations is predominantly the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using the exchange rate in effect at the applicable balance sheet date for assets and liabilities and average monthly rates prevailing during the period for revenue and expense accounts. Adjustments resulting from translation are included in accumulated other comprehensive income, a separate component of shareholders’ equity. Gains and losses resulting from other transactions originally in foreign currencies and then translated into U.S. dollars are included in the condensed consolidated statement of operations. Net foreign exchange gains resulting from foreign currency transactions included in other income, net were $5 and $10 for the three months ended September 30, 2015 and 2014, respectively. Net foreign exchange losses resulting from foreign currency transactions included in other income, net were and ($23) and ($37) for the nine months ended September 30, 2015 and 2014, respectively. Recent Accounting Guidance In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory (Topic 330).” The new guidance requires most inventory to be measured at the lower of cost and net realizable value, thereby simplifying the previous guidance under which an entity must measure inventory at the lower of cost or market. Market is defined as replacement cost, net realizable value (“NRV”), or NRV less a normal profit margin. The ASU will not apply to inventory that is measured using either the last-in, first-out method or the retail inventory method. The standard will be effective prospectively for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently assessing the provisions of the guidance and has not determined the impact of the adoption of this guidance on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, which requires management to assess whether there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. The new accounting standard is effective as of December 31, 2016, and the Company does not expect it to have an impact on its financial statement disclosures. In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 was issued to clarify that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The new accounting standard is effective for the Company in 2016. Because participants in the Company’s performance-based long-term incentive plan must be service providers of the Company on the determination date in order to be eligible to receive the shares, the adoption of ASU No. 2014-12 will not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 which introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The FASB has voted to approve a one-year deferral of the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The new accounting standard is expected to have an impact to the Company’s consolidated financial statements. The Company is currently reviewing its arrangements to evaluate the impact and method of adoption. In April 2014, the FASB issued ASU 2014-08, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations - that is, a major effect on the organization’s operations and financial results should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. Additionally, the ASU requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This update took effect in the first quarter of 2015. The new guidance did not have a material impact on the Company’s consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments The Company follows accounting guidance for fair value measurements and disclosures. To measure fair value, the Company refers to a hierarchy that requires it to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instruments categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of input that may be used to measure fair value are as follows: Level 1: inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 4 for the hierarchy leveling table for cash and cash equivalents. Cash equivalents are measured at fair value and investments are recognized at amortized cost in the Company’s financial statements. Accounts receivable and other investments are financial assets with carrying values that approximate fair value due to the short-term nature of these assets. Accounts payable is a financial liability with a carrying value that approximates fair value due to the short-term nature of these liabilities. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 3. Earnings per Share The following table is the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Basic Earnings Per Share computation: Numerator: Net income (loss) ($ 1,062 ) $ 2,218 ($ 748 ) $ 2,617 Denominator: Common shares outstanding 17,626 18,112 18,059 18,155 Earnings per common share - basic Net income (loss) ($ 0.06 ) $ 0.12 ($ 0.04 ) $ 0.14 Diluted Earnings Per Share computation: Denominator: Common shares outstanding 17,626 18,112 18,059 18,155 Restricted shares subject to vesting * 88 * 110 Performance shares subject to vesting * 62 * 69 Common stock option grants * 9 * 12 Total shares 17,626 18,271 18,059 18,346 Earnings per common share - diluted Net income (loss) ($ 0.06 ) $ 0.12 ($ 0.04 ) $ 0.14 * As denoted by “*” in the table above, weighted average common stock option grants and restricted shares of 183,000 and 369,000 were excluded from the calculations of diluted net loss per share for the three months and nine months ended September 30, 2015, respectively, since their effects are anti-dilutive. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | 4. Cash, Cash Equivalents and Investments The Company’s cash and investments consisted of the following: September 30, December 31, Cash $ 8,625 $ 19,731 Cash equivalents 4,262 701 Short-term investments 21,428 39,577 $ 34,315 $ 60,009 Cash and Cash equivalents At September 30, 2015, cash and cash equivalents included bank balances and investments with original maturities less than 90 days. At September 30, 2015 and December 31, 2014, the Company’s cash equivalents were invested in highly liquid AAA money market funds that are required to comply with Rule 2a-7 of the Investment Company Act of 1940. Such funds utilize the amortized cost method of accounting, seek to maintain a constant $1.00 per share price, and are redeemable upon demand. The Company restricts its investments in AAA money market funds to those invested 100% in either short-term U.S. government agency securities or bank repurchase agreements collateralized by these same securities. The fair values of these money market funds are established through quoted prices in active markets for identical assets (Level 1 inputs). The cash in the Company’s U.S. banks is insured by the Federal Deposit Insurance Corporation up to the insurable amount of $250. At September 30, 2015, the Company had $8.6 million in cash and $4.3 million in cash equivalents and at December 31, 2014, the Company had $19.7 million in cash and $0.7 million in cash equivalents. The Company had $1.4 million and $0.5 million of cash and cash equivalents in foreign bank accounts at September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, the Company has no intentions of repatriating the cash in its foreign bank accounts. If the Company decides to repatriate the cash in the foreign bank accounts, it may experience difficulty in doing so in a timely manner. The Company may also be exposed to foreign currency fluctuations and taxes if it repatriates these funds. The Company’s cash in its foreign bank accounts is not insured. Investments At September 30, 2015 and December 31, 2014, the Company’s short-term investments consisted of pre-refunded municipal bonds, U.S. government agency bonds, AA or higher rated corporate bonds, and certificates of deposit classified as held-to-maturity. At September 30, 2015 the Company had invested $7.7 million in U.S. government agency bonds, $7.4 million in pre-refunded municipal bonds, $4.2 million in AA rated or higher corporate bonds, and $2.1 million in certificates of deposit. The income and principal from the pre-refunded municipal bonds are secured by an irrevocable trust of U.S. Treasury securities. The bonds have original maturities greater than 90 days and mature in less than one year. The Company’s bonds are recorded at the purchase price and carried at amortized cost. The net unrealized gains were $6 at September 30, 2015. Approximately 9% and 5% of the Company’s bonds were protected by bond default insurance at September 30, 2015 and December 31, 2014, respectively. At December 31, 2014, the Company had invested $13.5 million in U.S. government agency bonds, $11.8 million in certificates of deposit, $7.2 million in AA rated or higher corporate bond funds, $5.2 million in pre-refunded municipal bonds and taxable bond funds, and $2.0 million in mutual funds. The Company categorizes its financial instruments within a fair value hierarchy according to accounting guidance for fair value. The fair value hierarchy is described under the Fair Value of Financial Instruments in Note 2. For the Level 2 investments, the Company uses quoted prices of similar assets in active markets. Cash equivalents and Level 1 and Level 2 investments measured at fair value were as follows at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds and other cash equivalents $ 4,262 $ 0 $ 0 $ 4,262 $ 701 $ 0 $ 0 $ 701 Investments: US government agency bonds 0 7,671 0 7,671 0 13,502 0 13,502 Certificates of deposit 2,138 0 0 2,138 11,782 0 0 11,782 Pre-refunded municipal bonds 0 7,375 0 7,375 0 5,162 0 5,162 Corporate bonds 0 4,250 0 4,250 0 7,155 0 7,155 Mutual funds 0 0 0 0 1,971 0 0 1,971 Total $ 6,400 $ 19,296 $ 0 $ 25,696 $ 14,454 $ 25,819 $ 0 $ 40,273 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill The activity related to goodwill for the nine months ended September 30, 2015 was as follows: Balance at December 31, 2014 $ 161 Goodwill related to acquisition of Nexgen business 3,332 Balance at September 30, 2015 $ 3,493 The goodwill of $3.5 million relates to the RF Solutions segment. In February 2015, the Company acquired substantially all of the assets and assumed certain liabilities of Nexgen Wireless, Inc. As of September 30, 2015, the Company recorded goodwill of $3.3 million as part of the provisional allocation of the purchase price. Based on revisions to the Nexgen valuation, goodwill was lowered by $0.6 million and customer relationships was increased by $0.6 million during the third quarter 2015. See Note 7 for additional information on the acquisition. The Company recorded $0.2 million of goodwill related to the business acquired from Envision Wireless, Inc. in 2011. The Company performs an annual impairment test of goodwill as of the end of the first month of the fiscal fourth quarter (October 31st), or at an interim date if an event occurs or if circumstances change that would indicate that an impairment loss may have been incurred. In performing the impairment test, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. If the qualitative assessment is indicative of possible impairment, then a two-step quantitative fair value assessment is performed at the reporting unit level. In the first step, the fair value of each reporting unit is compared with its carrying value. If the fair value exceeds the carrying value, then goodwill is not impaired and no further testing is performed. The second step is performed if the carrying value exceeds the fair value. The implied fair value of goodwill is then compared against the carrying value of goodwill to determine the amount of impairment. The RF Solutions segment has experienced declining profitability year to date (See Note 12 for the segment information). The Company considered the decline to be an interim change in circumstances that would indicate that an impairment loss may have been incurred at September 30, 2015. There are two reporting units for goodwill testing purposes within the RF Solutions segment, Products and Services, and both carry goodwill. The Company performed a qualitative assessment on both reporting units and determined it is more likely than not that the fair value of a reporting unit is greater than its carrying value, including goodwill. The primary positive evidence considered was the recent restructuring of costs that is expected to lower the cost structure by several million dollars annually. In addition the Company performed a Step 1 quantitative goodwill test at September 30, 2015 at the lower forecasted cost structure, which confirmed the qualitative assessment. Intangible Assets The Company amortizes intangible assets with finite lives on a straight-line basis over the estimated useful lives, which range from one to eight years. The summary of other intangible assets, net as of September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Cost Accumulated Net Book Cost Accumulated Net Book Customer contracts and relationships $ 25,497 $ 17,880 $ 7,617 $ 17,381 $ 15,933 $ 1,448 Patents and technology 10,114 7,171 2,943 6,781 6,507 274 Trademarks and trade names 4,960 3,631 1,329 3,988 3,152 836 Other 2,743 2,198 545 1,998 1,919 79 $ 43,314 $ 30,880 $ 12,434 $ 30,148 $ 27,511 $ 2,637 The $9.8 million increase in the net book value of intangible assets at September 30, 2015 compared to December 31, 2014 reflects $13.2 million of intangible assets recorded for the purchase of the business from Nexgen, offset by amortization expense of $3.0 million recorded for the nine months ended September 30, 2015, and a restructuring charge of $0.4 million recorded in June 2015. The restructuring charge related to the Company’s exit from the mobile towers product line. The Company wrote off the remaining patents and technology and a portion of the trade names and customer relationships from the acquisition of TelWorx in 2012. The amortization related to the assets recorded for the acquisition of the business from Nexgen was $0.7 million and $1.7 million for the three and nine months ended September 30, 2015, respectively. The amortization related to all other intangible assets was $0.4 million and $1.3 million for the three and nine months ended September 30, 2015. The assigned lives and weighted average amortization periods by intangible asset category is summarized below: Intangible Assets Assigned Life Weighted Average Customer contracts and relationships 4 to 6 years 5.0 Patents and technology 3 to 6 years 4.5 Trademarks and trade names 3 to 8 years 4.7 Other 1 to 6 years 4.4 The Company’s scheduled amortization expense for 2015 and the next five years is as follows: Fiscal Year Amount 2015 $ 4,020 2016 $ 2,962 2017 $ 2,785 2018 $ 2,708 2019 $ 2,508 2020 $ 414 |
Balance Sheet Information
Balance Sheet Information | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | 6. Balance Sheet Information Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amount with standard net terms that range between 30 and 90 days. The Company extends credit to its customers based on an evaluation of a customer’s financial condition and collateral is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on the Company’s assessment of known delinquent accounts, historical experience, and other currently available evidence of the collectability and the aging of accounts receivable. The Company’s allowance for doubtful accounts was $0.1 million at September 30, 2015 and at December 31, 2014. The provision for doubtful accounts is included in sales and marketing expense in the condensed consolidated statements of operations. Inventories Inventories are stated at the lower of cost or market and include material, labor and overhead costs using the first-in, first-out (“FIFO”) method of costing. Inventories as of September 30, 2015 and December 31, 2014 were composed of raw materials, sub-assemblies, finished goods and work-in-process. The Company had consigned inventory with customers of $0.7 million and $0.8 million at September 30, 2015 and December 31, 2014, respectively. The Company records allowances to reduce the value of inventory to the lower of cost or market, including allowances for excess and obsolete inventory. The allowance for inventory losses was $1.9 million at September 30, 2015 and $1.8 million at December 31, 2014. Inventories consisted of the following: September 30, December 31, Raw materials $ 10,713 $ 10,160 Work in process 1,108 915 Finished goods 5,366 5,283 Inventories, net $ 17,187 $ 16,358 Prepaid and Other Current Assets Prepaid assets are stated at cost and are amortized over the useful lives (up to one year) of the assets. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company depreciates computer equipment over three to five years, office equipment, manufacturing and test equipment, and motor vehicles over five years, furniture and fixtures over seven years, and buildings over 30 years. Leasehold improvements are amortized over the shorter of the corresponding lease term or useful life. Depreciation expense and gains and losses on the disposal of property and equipment are included in cost of sales and operating expenses in the condensed consolidated statements of operations. Maintenance and repairs are expensed as incurred. Property and equipment consisted of the following: September 30, December 31, Building $ 6,231 $ 6,229 Computers and office equipment 10,816 10,435 Manufacturing and test equipment 12,720 11,880 Furniture and fixtures 1,275 1,214 Leasehold improvements 875 909 Motor vehicles 42 117 Total property and equipment 31,959 30,784 Less: Accumulated depreciation and amortization (19,687 ) (17,712 ) Land 1,770 1,770 Property and equipment, net $ 14,042 $ 14,842 Depreciation and amortization expense was approximately $0.8 million and $0.7 million for the three months ended September 30, 2015 and 2014, respectively, and $2.3 million and $2.1 million for the nine months ended September 30, 2015 and 2014, respectively. Amortization for capital leases is included in depreciation and amortization expense. See Note 10 for information related to capital leases. Liabilities Accrued liabilities consisted of the following: September 30, December 31, 2015 2014 Inventory receipts $ 1,626 $ 2,471 Paid time off 1,338 1,247 Payroll, bonuses, and other employee benefits 991 1,539 Due to Nexgen Parties - working capital adjustment 840 0 Professional fees and contractors 403 223 Warranties 381 304 Deferred revenues 218 1,262 Real estate taxes 121 181 Income and sales taxes 157 266 Employee stock purchase plan 97 314 Executive deferred compensation 0 2,043 Other 258 361 Total $ 6,430 $ 10,211 Long-term liabilities consist of the following: September 30, December 31, 2015 2014 Due to Nexgen Parties - contingent consideration $ 500 $ 0 Deferred rent 263 258 Long-term obligations under capital leases 128 135 Deferred revenues 39 55 $ 930 $ 448 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions Business combinations are accounted for using the acquisition method of accounting. In general, the acquisition method requires acquisition-date fair value measurement of identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree. The measurement requirements result in the recognition of the full amount of acquisition-date goodwill, which includes amounts attributable to non-controlling interests. Neither the direct costs incurred to effect a business combination nor the costs the acquirer expects to incur under a plan to restructure an acquired business may be included as part of the business combination accounting. As a result, those costs are charged to expense when incurred, except for debt or equity issuance costs, which are accounted for in accordance with other generally accepted accounting principles. Acquisition of Nexgen Wireless, Inc. On February 27, 2015, the Company acquired substantially all of the assets of, and assumed certain specified liabilities of, Nexgen Wireless, Inc., an Illinois corporation (“Nexgen”), pursuant to an Asset Purchase Agreement dated as of February 27, 2015 (the “Nexgen APA”) among PCTEL, Inc., Nexgen, PCTEL, Nexgen, Bhumika Thakkar 2012 Irrevocable Trust Number One, Bhumika Thakkar 2012 Irrevocable Trust Number Two, and Jigar Thakkar (collectively, such trusts and Mr. Thakkar are the “Nexgen Shareholders”), and Bhumika Thakkar (collectively with Nexgen and the Nexgen Shareholders, the “Nexgen Parties”). The business of Nexgen is based in Schaumburg, Illinois. Nexgen provides Meridian™, a network analysis tool portfolio, and engineering services. Nexgen’s Meridian software product portfolio translates real-time network performance data into engineering actions to optimize operator performance. Meridian, with its modules of Network IQ™, Subscriber IQ™, and Map IQ™, supports crowd-based, cloud-based data analysis to enhance network performance. Nexgen provides performance engineering, specialized staffing, and trend analysis for carriers, infrastructure vendors, and neutral hosts for 2G, 3G, 4G, and LTE networks. The provisional purchase consideration for Nexgen was $21.4 million, consisting of $18.25 million in cash paid at closing, $2.25 million held in escrow, an estimated $0.8 million excess working capital true up to be paid in cash, and a contingency payment that was provisionally calculated with a fair value of $0.1 million. The contingent payment was dependent on the achievement of revenue-based goals pertaining to the acquired business for the period commencing on March 1, 2015 and ending on April 30, 2016. The cash consideration paid was provided from the Company’s existing cash. The assets acquired consisted primarily of customer relationships, intellectual property (including trade names), working capital (accounts receivable, work in process, accounts payable and accrued liabilities), and fixed assets. The Nexgen Parties are bound by non-competition covenants under the Nexgen APA, which generally expire on February 27, 2019. The Company calculates the fair value of the assets acquired by using a blended analysis of the present value of future discounted cash flows and the market approach of valuation. The intangible assets recorded have a weighted average amortization period of 5.0 years. As previously reported in the Company’s Current Report on Form 8-K filed with the SEC on April 14, 2015, on April 7, 2015, Samsung Electronics America, Inc., as successor in interest to Samsung Telecommunications America, LLC (“Samsung”), provided Nexgen and the Company with a final notice of Samsung’s election to terminate, effective April 30, 2015, the Contractor Services Agreement, dated May 2, 2012 (the “CSA”), by and between Samsung and Nexgen. On May 5, 2015, the Company and the Nexgen Parties entered into an Amendment to Asset Purchase Agreement (the “Nexgen APA Amendment”) with the following principal terms: (a) Nexgen agreed to transfer to the Company previously excluded accounts receivable with an aggregate value of $0.8 million; (b) the aggregate amount potentially payable to the Nexgen Parties as contingent earnout consideration was reduced from $2.0 million to $1.0 million; (c) the Company waived its right to seek additional indemnification from the Nexgen Parties for matters specified therein; (d) the parties directed that $2.25 million in escrowed funds potentially payable to the Nexgen Parties pursuant to the Nexgen APA be released to the Company; (e) Mr. Thakkar relinquished a portion of the equity awards previously granted to him; (f) the Company released various potential claims against Nexgen and the Nexgen Parties with respect to the termination of the CSA and related matters; and (g) the parties agreed that the Nexgen Parties would be eligible for potential additional consideration if the acquired business achieves performance metrics set forth therein. The additional consideration is dependent on the achievement of revenue-based goals pertaining to the acquired business for the period commencing on January 1, 2016 and ending on December 31, 2016. The amendment terms were accounted for consistent with accounting for legal settlements, as there is not a clear and direct link between the settlement and the acquisition price. During June 2015, the Company received the cash from the escrow fund and the previously excluded accounts receivable. These amounts are recorded in Other Income, net in the condensed consolidated statements of operations. At June 30, 2015, the Company estimated the liability for the contingent earnout consideration at $1.0 million. At September 30, 2015, the Company revised the liability for the contingent earnout consideration at $0.5 million due to revised revenue projections for 2016. The adjustment of $0.9 million from the original liability recorded for the contingent consideration was recorded as an expense in Other Income, net in the condensed consolidated statement of operations. Approximately 78% of Nexgen’s revenue was related to the U.S. Sprint cellular network, contracted either with Samsung or Sprint directly. During due diligence, the Company modeled a likely range of future revenue and cash flow based on the high degree of customer concentration risk. While the terminated CSA represented a material portion of that revenue, the resulting total future revenue and cash flow remained within the lower range of the forecast model. The Company utilized the lower end of the forecast range in evaluating the fair value of the acquired assets. At September 30, 2015, the valuation yielded provisional goodwill of $3.3 million, of which $1.5 million is related to the assembled workforce. The goodwill is deductible for tax purposes. Based on revisions to the Nexgen valuation, goodwill was lowered by $0.6 million and customer relationships was increased by $0.6 million during the third quarter 2015. The purchase accounting related to the valuation of certain tangible and intangible assets was still in process at September 30, 2015. The purchase accounting is expected to be completed by the quarter ended December 31, 2015. The following is the provisional allocation of the purchase price for the assets from Nexgen at the date of the acquisition as of September 30, 2015: Tangible assets: Accounts receivable $ 5,358 Prepaid and other assets 49 Deferred cost of sales 24 Fixed assets 43 Total tangible assets 5,474 Intangible assets: Customer relationships 8,117 Trade names 972 Technology 3,332 Backlog 162 Non-compete 583 Goodwill 3,332 Total intangible assets 16,498 Total assets 21,972 Accounts payable 200 Accrued liabilities 341 Total liabilities 541 Net assets acquired $ 21,431 A reconciliation of the assets acquired with the cash paid at closing is as follows: Net assets acquired $ 21,431 Due Nexgen - contingent liability (91 ) Due Nexgen - working capital adjustment (840 ) Cash paid at closing $ 20,500 The Company does not have any material relationship with Mr. Thakkar and the other Nexgen Parties other than in respect of the Nexgen APA, the Nexgen APA Amendment, the transactions provided for therein, and Mr. Thakkar’s post-acquisition role as the Company’s Vice President and Chief Technology Officer, Network Analytics. The Company assumed Nexgen’s existing lease for Nexgen’s offices in Schaumburg, Illinois and is currently operating the acquired business from that location. All of the Nexgen assets and employees were immediately integrated into the Network Engineering Services reporting unit within the RF Solutions segment. The Company recognizes revenue for the engineering services under the completed performance method. For specialized staffing, the Company recognizes revenue as services are provided to the customer. Revenues for Nexgen were $23.8 million for the year ended December 31, 2014. The Company’s results for the nine months ended September 30, 2015 include the operating results for March through September 2015 for the business acquired from Nexgen. The following pro forma financial information gives effect to the acquisition of the Nexgen business as if the acquisition had taken place on January 1, 2014. The pro forma financial information for Nexgen was derived from the unaudited historical accounting records of Nexgen. (unaudited) (unaudited) (unaudited) (unaudited) Nine Months Ended REVENUES $ 26,526 $ 33,155 $ 83,435 $ 95,508 NET INCOME ($ 1,062 ) $ 2,680 ($ 719 ) $ 4,464 NET INCOME PER SHARE ($ 0.06 ) $ 0.15 ($ 0.04 ) $ 0.24 The pro forma results include adjustments for intangible amortization of $0.6 million for the three months ended September 30, 2014 and $0.4 million and $2.0 million for the nine months ended September 30, 2015 and 2014, respectively. The pro forma information is presented for illustrative purposes only and may not be indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014, nor is it necessarily indicative of the Company’s future consolidated results of operations or financial position. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation The condensed consolidated statements of operations include $0.7 million and $1.4 million of stock compensation expense for the three and nine months ended September 30, 2015, respectively. Stock compensation expense for the three months ended September 30, 2015 consisted of $0.5 million for restricted stock awards, $33 related to performance units, $57 for stock option expenses and $55 for stock purchase plan expenses. Stock compensation expense for the nine months ended September 30, 2015 consisted of $1.4 million for restricted stock awards, $0.4 million for stock option expenses and $0.2 million for stock purchase plan expenses, offset by the expense reversal of $0.5 million related to performance units that are not expected to vest. The condensed consolidated statements of operations include $0.7 million and $2.6 million of stock compensation expense for the three and nine months ended September 30, 2014, respectively. Stock compensation expense for the three months ended September 30, 2014 consisted of $0.5 million for restricted stock awards, $0.2 million for stock option expenses and $54 for stock purchase plan expenses. Stock compensation expense for the nine months ended September 30, 2014 consists of $1.6 million for restricted stock awards, $0.8 million for stock option expenses and $137 for stock purchase plan expenses. The Company did not capitalize any stock compensation expense during the three months ended September 30, 2015 or 2014. Total stock-based compensation is reflected in the condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Cost of revenues $ 115 $ 112 $ 244 $ 315 Research and development 99 149 244 509 Sales and marketing 230 155 370 491 General and administrative 206 315 534 1,263 Total $ 650 $ 731 $ 1,392 $ 2,578 Restricted Stock – Service Based The Company grants restricted shares as employee incentives. When service-based restricted stock is granted to employees, the Company records deferred stock compensation within additional paid-in capital, representing the fair value of the common stock on the date the restricted shares are granted. The Company records stock compensation expense on a straight-line basis over the vesting period of the applicable service-based restricted shares. These grants vest over various periods, but typically vest over four years. The 2015 annual service-based awards were granted to eligible employees in June 2015, and the 2014 annual service-based awards were granted to eligible employees in March 2014. In September 2015, the Company’s Board of Directors awarded 200,000 restricted shares to Martin H. Singer, Chief Executive Officer. These shares vest in September 2017 if Mr. Singer remains an employee of the Company on the vesting date. In order to better align compensation incentives with long-term shareholder interest, effective August 31, 2015, the Board of Directors approved reductions in the base salaries of named executive officers and certain other executives, and concurrently therewith granted 117,300 shares of the Company’s common stock which will vest one year from the date of grant. The Company awarded 100,000 shares to Mr. Thakkar as part of his employment offer following the Nexgen acquisition in the first quarter of 2015. These shares vest in February 2017 if Mr. Thakkar remains an employee of the Company on the vesting date. The following table summarizes restricted stock activity for the nine months ended September 30, 2015: Shares Weighted Unvested Restricted Stock Awards - December 31, 2014 343,836 $ 7.41 Shares awarded 633,079 6.81 Shares vested (176,849 ) 7.21 Shares cancelled (19,701 ) 7.77 Unvested Restricted Stock Awards - September 30, 2015 780,365 $ 6.96 The intrinsic value of service-based restricted shares that vested during the three months ended September 30, 2015, and 2014, was $57 and $25, respectively. The intrinsic value of service-based restricted shares that vested during the nine months ended September 30, 2015, and 2014, was $1.4 million and $3.2 million, respectively. At September 30, 2015, total unrecognized compensation expense related to restricted stock was approximately $3.6 million, net of forfeitures to be recognized through 2019 over a weighted average period of 1.5 years. Restricted Stock Units – Service Based The Company grants restricted stock units as employee incentives. Restricted stock units are primarily granted to foreign employees for long-term incentive purposes. Employee restricted stock units are service-based awards and are amortized over the vesting period. At the vesting date, these units are converted to shares of common stock. The Company records expense on a straight-line basis for restricted stock units. The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2015: Units Weighted Unvested Restricted Stock Units - December 31, 2014 4,600 $ 7.47 Units awarded 4,350 7.49 Units vested (2,475 ) 7.00 Units cancelled (1,750 ) 7.91 Unvested Restricted Stock Units - September 30, 2015 4,725 $ 7.47 The intrinsic value of service-based restricted stock units that vested and issued as shares during the nine months ended September 30, 2015 and 2014 was $20 and $27, respectively. No units vested during the three months ended September 30, 2015 and 2014. As of September 30, 2015, the unrecognized compensation expense related to the unvested portion of the Company’s restricted stock units was approximately $22, to be recognized through 2019 over a weighted average period of 1.5 years. Stock Options The Company grants stock options to purchase common stock as long-term incentives. The Company issues stock options with exercise prices no less than the fair value of the Company’s stock on the grant date. Employee option grants are subject to installment vesting typically over a period of four years. Stock options may be exercised at any time prior to their expiration date or within ninety days of termination of employment, or such shorter time as may be provided in the related stock option agreement. Prior to July 2010, the Company primarily granted stock options with a ten-year life. Beginning with options granted in July 2010, the Company grants stock options with a seven-year life. During the three and nine months ended September 30, 2015, respectively, the Company awarded 1,500 and 20,500 stock options to eligible new employees. In addition, in March 2015, the Company awarded 130,000 stock options to former employees of Nexgen in connection with the acquisition of the Nexgen business. A summary of the Company’s stock option activity for the nine months ended September 30, 2015 is as follows: Options Weighted Outstanding at December 31, 2014 1,357,928 $ 7.81 Granted 150,500 8.00 Exercised (35,134 ) 7.25 Expired or Cancelled (110,683 ) 9.00 Forfeited (72,820 ) 7.76 Outstanding at September 30, 2015 1,289,791 $ 7.74 Exercisable at September 30, 2015 796,046 $ 7.96 There were no stock option exercises during the three months ended September 30, 2015. During the nine months ended September 30, 2015, the Company received proceeds of $0.3 million from the exercise of 35,134 options. The intrinsic value of these options exercised was $34. During the three months ended September 30, 2014, the Company received proceeds of $13 from the exercise of 1,894 options. The intrinsic value of these options exercised was $2. During the nine months ended September 30, 2014, the Company received proceeds of $0.3 million from the exercise of 41,841 options. The intrinsic value of these options exercised was $55. The range of exercise prices for options outstanding and exercisable at September 30, 2015, was $5.50 to $11.00. The following table summarizes information about stock options outstanding under all stock option plans: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Contractual Life (Years) Weighted- Average Exercise Price Number Exercisable Weighted Average Exercise Price $5.50 - $6.00 4,879 4.97 $ 5.75 3,124 $ 5.63 6.01 - 6.50 16,267 3.54 6.23 12,722 6.23 6.51 - 7.00 38,491 2.59 6.85 35,688 6.86 7.01 - 7.50 793,096 4.43 7.18 427,814 7.17 7.51 - 8.00 27,750 5.04 7.79 11,791 7.82 8.01 - 8.50 127,195 5.21 8.17 27,935 8.45 8.51 - 9.00 32,478 1.15 8.76 28,986 8.76 9.01 - 9.50 188,085 0.98 9.19 187,511 9.19 9.51 - 10.00 20,650 2.37 9.64 19,575 9.64 10.01 - 11.00 40,900 0.72 10.64 40,900 10.64 $5.50 - $11.00 1,289,791 3.72 $ 7.74 796,046 $ 7.96 The weighted average contractual life and intrinsic value at September 30, 2015, was the following: Weighted Intrinsic Options Outstanding 3.72 $ 1 Options Exercisable 2.93 $ 1 The intrinsic value is based on the share price of $6.01 at September 30, 2015. The Company calculated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions at September 30 th September 30, 2015 2014 Dividend yield 3.4 % 2.2 % Risk-free interest rate 0.6 % 0.5 % Expected volatility 34 % 34 % Expected life (in years) 5.2 5.2 The fair value of each unvested option was estimated on the date of grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility and expected option life. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, the existing models may not necessarily provide a reliable single measure of the fair value of the employee stock options. The dividend yield rate was calculated by dividing the Company’s annual dividend by the closing price on the grant date. The risk-free interest rate was based on the U.S. Treasury yields with remaining term that approximates the expected life of the options granted. The Company calculates the volatility based on a five-year historical period of the Company’s stock price. The Company incorporates a forfeiture rate based on historical data in the expense calculation. The expected life used for options granted is based on historical data of employee exercise performance. The Company records expense based on the grading vesting method. As of September 30, 2015, the unrecognized compensation expense related to the unvested portion of the Company’s stock options was approximately $0.4 million, net of estimated forfeitures to be recognized through 2019 over a weighted average period of 1.2 years. Performance-based Equity Awards In June 2015, the Company’s Board of Directors approved the 2015 Long-Term Incentive Plan (“2015 LTIP”). Under the 2015 LTIP, shares are earned by certain executive employees based upon achievement of revenue goals over a four-year period with a penalty if certain profit levels are not maintained. The four-year period is divided into two interim periods (each an “Interim Period”), the first of which will end on December 31, 2016, and the second of which will end on December 31, 2018. The number of shares that can be earned at threshold and target are 212,000 and 424,000, respectively. Stock compensation expense is amortized over the performance period for these awards based on estimated achievement of the goals. No expense was recorded for the 1 st In March 2014, the Company’s Board of Directors approved the 2014 Long-Term Incentive Plan (“2014 LTIP”) and the LTIP award agreements were completed in April 2014. Under the 2014 LTIP, shares are earned by certain executive employees based upon achievement of revenue goals over a four-year period with a penalty if certain profit levels are not maintained. The four-year period is divided into two interim periods (each an “Interim Period”), the first of which will end on December 31, 2015, and the second of which will end on December 31, 2017. The number of shares that can be earned at threshold and target are 190,000 and 380,000, respectively. Stock compensation expense is amortized over the performance period for these awards based on estimated achievement of the goals. The achievement period for one executive was modified from two years to one year. For the units that vested, shares were awarded with intrinsic value of $50 and the unvested units were cancelled. For the remaining units, no expense has been recorded for the 1 st The following summarizes the performance unit activity during the nine months ended September 30, 2015: Units Weighted Unvested Performance Units - December 31, 2014 380,000 $ 8.47 Units awarded 424,000 7.49 Units vested (6,202 ) 8.47 Units cancelled (33,798 ) 8.04 Unvested Performance Units - September 30, 2015 764,000 $ 7.95 Within a revised employment offer letter to Jigar Thakkar in May 2015, the Company offered Mr. Thakkar the opportunity to earn up to 50,000 shares of common stock-based on achieving revenue goals for 2016. Mr. Thakkar is the primary founder of Nexgen, and remained with the acquired business as the Company’s Vice President, Network Analytics. Under terms of the offer, 50% of the shares will vest on February 27, 2017 and 50% of the shares will vest on February 27, 2018 if Mr. Thakkar remains an employee of the Company on such dates. Stock compensation expense is amortized over the vesting period for these awards based on estimated achievement of the goals. Employee Stock Purchase Plan (“ESPP”) The ESPP enables eligible employees to purchase common stock at the lower of 85% of the fair market value of the common stock on the first or last day of each offering period. Each offering period is approximately six months. The Company received proceeds of $0.4 million from the issuance of 76,314 shares under the ESPP in August 2015 and received proceeds of $0.3 million from the issuance of 51,545 shares under the ESPP in August 2014.The Company received proceeds of $0.4 million from the issuance of 57,293 shares under the ESPP in February 2015 and received proceeds of $0.3 million from the issuance of 49,063 shares under the ESPP in February 2014. Based on the 15% discount and the fair value of the option feature of this plan, this plan is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company calculated the fair value of each employee stock purchase grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions: September 30, 2015 2014 Dividend yield 3.4 % 2.2 % Risk-free interest rate 0.6 % 0.3 % Expected volatility 34 % 38 % Expected life (in years) 0.5 0.5 The dividend yield rate was calculated by dividing the Company’s annual dividend by the closing price on the grant date. The risk-free interest rate was based on the U.S. Treasury yields with a remaining term that approximates the expected life of the options granted. The dividend yield rate is calculated by dividing the Company’s annual dividend by the closing price on the grant date. The Company calculates the volatility based on a five-year historical period of the Company’s stock price. The expected life used is based on the offering period. In June 2014, the Company’s shareholders approved an amended and restated ESPP. Under the restated ESPP, the number of shares authorized for issuance was increased by 750,000. In addition, the expiration date of the ESPP was modified from March 2017 to the date that all shares authorized have been granted. Employee Withholding Taxes on Stock Awards For ease in administering the issuance of stock awards, the Company holds back shares of vested restricted stock awards and short-term incentive plan stock awards for the value of the statutory withholding taxes. For each individual receiving a share award, the Company redeems the shares it computes as the value for the withholding tax and remits this amount to the appropriate tax authority. The Company paid $0.4 million and $1.0 million for withholding taxes related to stock awards during the nine months ended September 30, 2015 and 2014, respectively. Stock Repurchases All share repurchase programs are authorized by the Company’s Board of Directors and are announced publicly. On November 13, 2014, the Board of Directors approved a share repurchase program of up to 926,000 of the Company’s outstanding shares that will expire on the earlier of the date that the total shares are repurchased or November 13, 2016. On April 20, 2015, the Board of Directors authorized an increase to the share repurchase program to purchase another 500,000 shares of stock. Additionally, on August 10, 2015, the Board of Directors authorized another increase to the share repurchase program to purchase an additional 1,300,000 shares, for a total of 2,726,000 shares. The Company repurchased 1,113,934 shares at an average price of $6.18 during the three months ended September 30, 2015. The Company repurchased 1,494,019 shares at an average price of $6.49 during the nine months ended September 30, 2015. At September 30, 2015, the Company had 1,231,981 shares that could still be repurchased under these programs. Amended and Restated Stock Plan On June 10, 2015, the Company’s stockholders approved the amendment and restatement of the PCTEL, Inc. Stock Plan (previously known as the “1997 Stock Plan”) (the “Stock Plan”) to, among other things, increase the number of shares of common stock authorized for issuance under the Stock Plan. As amended and restated, the Stock Plan provides that the maximum aggregate number of shares with respect to which awards may be made under the Stock Plan after the effective date of the amendment and restatement is the sum of (i) 3,573,981 shares, plus (ii) any shares returned (or that would have otherwise been returned) to the Stock Plan on or after the date of approval of the amendment and restatement of the Stock Plan as a result of the Stock Plan’s lapsed share and share counting provisions, plus (iii) any remaining shares that would have been available for grant under the Stock Plan as of the effective date of the amendment and restatement. At the time of the approval of the amendment and restatement of the Stock Plan by the Company’s stockholders, there were 2,058,769 shares of the Registrant’s Common Stock that had been previously registered under the prior Form S-8s and that were available for issuance under the Stock Plan. In addition, under the Stock Plan there were an aggregate of 316,740 unvested restricted shares outstanding and outstanding options to purchase 1,437,661 shares. Substantially all of the shares that remained available for grants under the Stock Plan had already been committed to awards under various incentive programs. Accordingly, the Company requested, and obtained, the approval of the stockholders to increase the number of shares available to enable the Company to continue making planned awards in 2015 and subsequent years. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | 9. Benefit Plans Employee Benefit Plans The Company’s 401(k) plan covers all full-time U.S. employees beginning the first of the month following the month they begin their employment. Under this plan, employees may elect to contribute up to 15% of their current compensation to the 401(k) plan, up to the statutorily prescribed annual limit. The Company may make discretionary contributions to the 401(k) plan. The Company also contributes to various retirement plans for foreign employees. The Company’s contributions to retirement plans were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 PCTEL, Inc. 401(k) Profit sharing Plan - US employees $ 195 $ 154 $ 575 $ 503 Defined contribution plans - foreign employees 87 84 248 245 Total $ 282 $ 238 $ 823 $ 748 Executive Deferred Compensation Plan Through December 2013, the Company provided an Executive Deferred Compensation Plan (“EDCP”) for executive officers, senior managers and directors. The Company funded the obligation related to the EDCP with corporate-owned life insurance policies. In November 2012, the Company’s Board of Directors authorized the termination of the EDCP and on December 27, 2013, the plan was terminated. The funds at the life insurance company were remitted to the Company and subsequently invested by the Company to fund the obligation. At December 31, 2014, the value of the Company’s investment account to fund EDCP obligations was $2.1 million, included in cash equivalents and short-term investments and the deferred compensation obligation was $2.0 million, included in accrued liabilities in the consolidated balance sheets. In January 2015, the Company paid out the full amount of the obligation of $2.0 million to the participants. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Operating Leases The Company has operating leases for facilities through 2020 and office equipment through 2019. The future minimum rental payments under these leases at September 30, 2015, are as follows: Year Amount 2015 $ 299 2016 1,067 2017 933 2018 889 2019 673 Thereafter 231 Future minimum lease payments $ 4,092 The rent expense under leases was approximately $0.3 million and $0.2 million for the three months ended September 30, 2015, and 2014, respectively. The rent expense under leases was approximately $0.8 million and $0.7 million for the nine months ended September 30, 2015, and 2014, respectively. In conjunction with the asset purchase agreement for Nexgen, the Company assumed the lease for office space in Schaumburg, Illinois consisting of 6,652 square feet. The lease expiration date is October 31, 2018 and the total lease obligation pursuant to this lease assumption is $0.4 million. In April 2015, the Company formally terminated the leased office space in San Antonio, Texas effective September 27 th In May 2015, the Company entered into a new five-year, five-month lease for an office for our expanding engineering services business in Englewood, Colorado consisting of leased space of 4,579 square feet with a lease expiration date of February 28 th In May 2015, the Company extended the lease for its assembly facility in Pryor, Oklahoma for a period of six months ending October 31 st In October 2015, the Company entered into a new five-year lease for additional manufacturing space in Tianjin, China consisting of 22,163 square feet with a lease expiration date of October 2020. The total lease obligation pursuant to this lease is $0.2 million. All properties are in good condition and are suitable for the purposes for which they are used. We believe that we have adequate space for our current needs. Capital Leases The Company has capital leases for office and manufacturing equipment. The net book values for asset under capital leases were as follows: September 30, December 31, Cost $ 219 $ 189 Accumulated Depreciation (46 ) (16 ) Net Book Value $ 173 $ 173 The following table presents future minimum lease payments under capital leases at September 30, 2015, together with the present value of the net minimum lease payments due in each year: Year Amount 2015 $ 13 2016 50 2017 50 2018 40 2019 29 2020 4 Total minimum payments required: 186 Less amount representing interest: 13 Present value of net minimum lease payments: $ 173 Warranty Reserve and Sales Returns The Company allows its major distributors and certain other customers to return unused product under specified terms and conditions. The Company accrues for product returns based on historical sales and return trends. The Company’s allowance for sales returns was $0.2 million at September 30, 2015 and $0.1 million at December 31, 2014. The Company offers repair and replacement warranties of up to five years for certain antenna products and scanning receiver products. The Company’s warranty reserve is based on historical sales and costs of repair and replacement trends. The warranty reserve was $0.4 million and $0.3 million at September 30, 2015 and December 31, 2014, respectively, and is included in other accrued liabilities in the accompanying condensed consolidated balance sheets. Changes in the warranty reserves during the nine months ended September 30, 2015 and 2014, were as follows: Nine Months Ended September 30, 2015 2014 Beginning balance $ 304 $ 305 Provisions for warranties 93 62 Consumption of reserves (16 ) (60 ) Ending balance $ 381 $ 307 Restructuring Charges In June 2015, the Company committed to a restructuring program for reductions in U.S. headcount and the exit from the mobile towers product line. The Company acquired the mobile tower product line in the 2012 acquisition of TelWorx (defined below). The Company’s mobile towers were primarily sold into the oil and gas exploration market in North America. The mobile towers were used to either provide a communications link to an oil drilling site or lighting for a site under construction. The decline in oil prices caused a decline in related mobile tower sales. The Company made the decision to exit the mobile tower product line due to the anticipated long term effect on revenue from depressed oil prices, and the fact that one of our two tower suppliers filed for Chapter 7 bankruptcy during June 2015 as a result of the decline in volume. Mobile towers were not a key element of the company’s kitting operation or antenna business within Connected Solutions. According to the accounting guidance, the exit of the mobile tower product line does not meet the requirements of discontinued operations. The Company incurred restructuring charges of $0.4 million and $0.9 million during the three and nine months ended September 30, 2015, respectively. During the three months ended September 30, 2015, the Company incurred $0.4 million for severance and employee related costs related to the termination of 18 employees and $23 related to the disposal of fixed assets of the mobile tower product line. During the nine months ended September 30, 2015, the Company incurred severance costs of $0.4 million of severance and employee related costs related to the termination of 20 employees, $23 related to the disposal of fixed assets of the mobile tower product line, and $0.4 million of intangible assets related to mobile towers. The following table summarizes the restructuring activity during the nine months ended September 30, 2015 and the status of the reserves at September 30. 2015: Accrual Accrual Balance at Balance at December 31, Restructuring Payments/ September 30, 2014 Expense Charges 2015 2015 Restructuring: Employee related costs $ 0 $ 423 ($ 394 ) $ 29 Fixed assets 0 23 (23 ) 0 Intangible assets adjustment 0 406 (406 ) 0 Totals $ 0 $ 852 ($ 823 ) $ 29 TelWorx Settlements The Company acquired substantially all of the assets and assumed certain specified liabilities of TelWorx Communications LLC, TelWorx U.K. Limited, TowerWorx LLC and TowerWorx International, Inc. (collectively “TelWorx”), pursuant to an Asset Purchase Agreement (“APA”) dated as of July 9, 2012 among the Company, TelWorx and Tim and Brenda Scronce, the principal owners of TelWorx. The business operations associated with these purchased assets is collectively referred to as “TelWorx” in this Form 10-Q. As disclosed in the Company’s Form 8-K/A filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2013, after completion of the acquisition, the Company became aware of certain accounting irregularities with respect to the TelWorx Entities and the Company’s Board of Directors directed management to conduct an internal investigation. Based on the results of the Company’s investigation, the Company’s Board of Directors directed management to seek restitution from the TelWorx Parties. On March 27, 2013, after protracted negotiations and concurrent litigation, the parties entered into an amendment to the APA and related settlement agreements to settle the dispute. The Company sought and received restitution from two parties who assisted the sellers of TelWorx by providing professional services to the sellers in connection with their sale of the business to PCTEL. On September 30, 2014, the Company settled in cash with one party for $0.1 million and on October 10, 2014, the Company settled with the other party in cash for $0.8 million. The Company recorded the settlements as income in the quarters ended September 30, 2014 and December 31, 2014, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company recorded an income tax benefit of $0.5 million for the nine months ended September 30, 2015. The tax benefit for the nine months ended September 30, 2015 differed from the statutory rate of 34% primarily because of state income taxes. The Company recorded income tax expense of $0.3 million for the nine months ended September 30, 2014. The tax expense for the nine months ended September 30, 2014 differed from the statutory rate of 34% primarily because the Company recorded a tax benefit of $0.8 million related to the reversal of a liability for uncertain income taxes. The Company’s valuation allowance against its deferred tax assets was $0.6 million at September 30, 2015 and December 31, 2014. On a regular basis, the Company evaluates the recoverability of deferred tax assets and the need for a valuation allowance. Such evaluations involve the application of significant judgment. The Company considers multiple factors in its evaluation of the need for a valuation allowance. The Company’s long-term forecasts continue to support the realization of its deferred tax assets. The Company’s domestic deferred tax assets have a ratable reversal pattern over 15 years. The carry forward rules allow for up to a 20 year carry forward of net operating losses (“NOL”) to future income that is available to realize the deferred tax assets. The combination of the deferred tax asset reversal pattern and carry forward period yields a 26.0 year average period over which future income can be utilized to realize the deferred tax assets. The Company’s gross unrecognized tax benefit was $0.8 million at September 30, 2015 and December 31, 2014. The Company files a consolidated federal income tax return, income tax returns with various states, and foreign income tax returns in various foreign jurisdictions. The Company’s U.S. federal and state tax returns remain subject to examination for 2011 and subsequent periods. |
Segment, Customer and Geographi
Segment, Customer and Geographic Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment, Customer and Geographic Information | 12. Segment, Customer and Geographic Information PCTEL operates in two segments for reporting purposes. The Company’s Connected Solutions segment includes its antenna and engineered site solutions. Its RF Solutions segment includes its scanning receivers and RF engineering services. Each of the segments has its own segment manager as well as its own engineering, sales and marketing, and operational general and administrative functions. All of the Company’s accounting and finance, human resources, IT and legal functions are provided on a centralized basis through the corporate function. The Company manages its balance sheet and cash flows centrally at the corporate level, with the exception of trade accounts receivable and inventory which is managed at the segment level. Each of the segment managers reports to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment. The Company’s chief operating decision maker uses the profit and loss results through operating profit and identified assets for Connected Solutions and RF Solutions segments to make operating decisions. The following tables are the segment operating profits and cash flow information for the three and nine months ended September 30, 2015 and 2014, respectively, and the segment balance sheet information as of September 30, 2015 and December 31, 2014: Three Months Ended September 30, 2015 Connected RF Solutions Corporate Total REVENUES $ 17,450 $ 9,115 ($ 39 ) $ 26,526 GROSS PROFIT 4,729 3,894 7 8,630 OPERATING INCOME (LOSS) $ 1,160 ($ 1,058 ) ($ 2,323 ) ($ 2,221 ) Depreciation $ 428 $ 289 $ 64 $ 781 Intangible amortization $ 195 $ 930 $ 0 $ 1,125 Capital expenditures $ 135 $ 151 $ 0 $ 286 Nine Months Ended September 30, 2015 Connected RF Solutions Corporate Total REVENUES $ 52,903 $ 27,749 ($ 175 ) $ 80,477 GROSS PROFIT 15,588 12,802 20 28,410 OPERATING INCOME (LOSS) $ 4,255 ($ 181 ) ($ 8,056 ) ($ 3,982 ) Depreciation $ 1,281 $ 809 $ 208 $ 2,298 Intangible amortization $ 655 $ 2,308 $ 0 $ 2,963 Capital expenditures $ 653 $ 836 $ 94 $ 1,583 As of September 30, 2015 Connected RF Solutions Corporate Total Accounts receivable $ 12,341 $ 8,302 $ 0 $ 20,643 Inventories $ 14,761 $ 2,426 $ 0 $ 17,187 Long-lived assets: Property and equipment, net $ 10,400 $ 3,027 $ 615 $ 14,042 Goodwill $ 0 $ 3,493 $ 0 $ 3,493 Intangible assets, net $ 620 $ 11,814 $ 0 $ 12,434 Deferred tax assets, net $ 0 $ 0 $ 10,348 $ 10,348 Other noncurrent assets $ 0 $ 0 $ 36 $ 36 Three Months Ended September 30, 2014 Connected RF Solutions Corporate Total REVENUES $ 18,697 $ 9,283 ($ 48 ) $ 27,932 GROSS PROFIT 5,803 5,584 7 11,394 OPERATING INCOME (LOSS) $ 2,262 $ 2,492 ($ 2,658 ) $ 2,096 Depreciation $ 426 $ 211 $ 86 $ 723 Intangible amortization $ 261 $ 204 $ 0 $ 465 Capital expenditures $ 241 $ 345 $ 10 $ 596 Nine Months Ended September 30, 2014 Connected RF Solutions Corporate Total REVENUES $ 52,409 $ 25,578 ($ 218 ) $ 77,769 GROSS PROFIT 16,635 15,171 20 31,826 OPERATING INCOME (LOSS) $ 5,278 $ 5,150 ($ 8,209 ) $ 2,219 Depreciation $ 1,267 $ 562 $ 257 $ 2,086 Intangible amortization $ 891 $ 612 $ 0 $ 1,503 Capital expenditures $ 811 $ 1,036 $ 37 $ 1,884 As of December 31, 2014 Connected RF Solutions Corporate Total Accounts receivable $ 15,947 $ 7,927 $ 0 $ 23,874 Inventories $ 14,172 $ 2,186 $ 0 $ 16,358 Long-lived assets: Property and equipment, net $ 11,124 $ 2,987 $ 731 $ 14,842 Goodwill $ 0 $ 161 $ 0 $ 161 Intangible assets, net $ 1,681 $ 956 $ 0 $ 2,637 Deferred tax assets, net $ 0 $ 0 $ 9,710 $ 9,710 Other noncurrent assets $ 0 $ 0 $ 40 $ 40 The Company’s revenues to customers outside of the United States, as a percent of total revenues for the three and nine months ended September 30, 2015 and 2014, respectively were as follows: Three Months Ended Nine Months Ended September 30, September 30, Region 2015 2014 2015 2014 Asia Pacific 9 % 11 % 9 % 11 % Europe, Middle East, & Africa 7 % 7 % 9 % 9 % Other Americas 7 % 7 % 6 % 6 % Total Foreign sales 23 % 25 % 24 % 26 % There were no customers that accounted for 10% or greater of revenues during the three months and nine months ended September 30, 2015 and no customers accounted for greater than 10% of revenues for the three and nine months ended September 30, 2014. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Parties | 13. Related Parties The Company leased its Pryor, Oklahoma facility from American Tradition Custom Steel LLC, of which Mr. Aaron Jarvis is a member. Mr. Jarvis was the operations manager for the Company’s mobile tower business. Mr. Jarvis was separated from employment with the Company in September 2015, and the lease terminated on October 31 st |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events The Company evaluates subsequent events occurring between the most recent balance sheet date and the date that the financial statements are available to be issued in order to determine whether the subsequent events are to be recorded and/or disclosed in the Company’s financial statements and footnotes. The financial statements are considered to be available to be issued at the time that they are filed with the SEC. Except as described below, there were no other subsequent events or transactions that required recognition or disclosure in the consolidated financial statements. On November 3 rd |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations PCTEL, Inc. (“PCTEL”, the “Company”, “we”, “ours”, and “us”) delivers P C Tel |
Segment Reporting | Segment Reporting PCTEL operates in two segments for reporting purposes, Connected Solutions and RF Solutions. The Company’s chief operating decision maker uses the profit and loss results through operating profit and identified assets for the Connected Solutions and RF Solutions segments to make operating decisions. Each segment has its own segment manager as well as its own engineering, sales and marketing, and operational general and administrative functions. All of the Company’s accounting and finance, human resources, IT and legal functions are provided on a centralized basis through the corporate function. The Company manages its balance sheet and cash flows centrally at the corporate level, with the exception of trade accounts receivable and inventory which is managed at the segment level. Each of the segment managers reports to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment. Connected Solutions Segment Connected Solutions designs and delivers performance critical antennas and site solutions for wireless networks globally. The Company’s antennas and site solutions support networks worldwide, including SCADA for oil, gas and utilities, fleet management, industrial operations, health care, small cell and network timing deployment, defense, public safety, education, and broadband access. PCTEL’s performance critical MAXRAD ® There are many competitors for antenna products, as the market is highly fragmented. Competitors include Laird (Cushcraft, Centurion, and Antennex products), Mobile Mark, Radiall/Larsen, Comtelco, Wilson, Commscope (Andrew products), and Kathrein, among others. The Company seeks out product applications that command a premium for product performance and customer service, and avoids commodity markets. PCTEL maintains expertise in several technology areas in order to be competitive in the antenna engineered site solutions market. These include radio frequency engineering, mobile antenna design and manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. RF Solutions Segment RF Solutions develops and provides performance critical test equipment, software, and engineering services for wireless networks. The industry relies upon PCTEL to benchmark network performance, analyze trends, and optimize wireless networks. SeeGull ® On February 27, 2015, PCTEL, Inc. acquired substantially all of the assets of, and assumed certain specified liabilities of, Nexgen Wireless, Inc. (“Nexgen”), pursuant to an Asset Purchase Agreement dated as of February 27, 2015 (the “Nexgen APA”). The business acquired from Nexgen is based in Schaumburg, Illinois. Nexgen provided Meridian™, a network analysis tool portfolio now known as SeeHawk ® PCTEL maintains expertise in several technology areas in order to be competitive in the scanning receiver and related engineering services market. These include radio frequency engineering, DSP engineering, manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. |
Basis of Consolidation | Basis of Consolidation The condensed consolidated balance sheet as of September 30, 2015 and the condensed consolidated statements of operations, statements of comprehensive income, and cash flows for the three and nine months ended September 30, 2015 and 2014, respectively, are unaudited and reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The interim condensed consolidated financial statements are derived from the audited financial statements as of December 31, 2014. The unaudited interim condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted. The significant accounting policies followed by the Company are set forth within the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”). There were no changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2015. In addition, the Company reaffirms the use of estimates in the preparation of the financial statements as set forth in the 2014 Form 10-K. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the 2014 Form 10-K. The results for the operations for the period ended September 30, 2015 may not be indicative of the results for the period ending December 31, 2015. |
Foreign Currency Translation | Foreign Currency Translation The Company is exposed to foreign currency fluctuations due to its foreign operations and because products are sold internationally. The functional currency for the Company’s foreign operations is predominantly the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using the exchange rate in effect at the applicable balance sheet date for assets and liabilities and average monthly rates prevailing during the period for revenue and expense accounts. Adjustments resulting from translation are included in accumulated other comprehensive income, a separate component of shareholders’ equity. Gains and losses resulting from other transactions originally in foreign currencies and then translated into U.S. dollars are included in the condensed consolidated statement of operations. Net foreign exchange gains resulting from foreign currency transactions included in other income, net were $5 and $10 for the three months ended September 30, 2015 and 2014, respectively. Net foreign exchange losses resulting from foreign currency transactions included in other income, net were and ($23) and ($37) for the nine months ended September 30, 2015 and 2014, respectively. |
Recent Accounting Guidance | Recent Accounting Guidance In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory (Topic 330).” The new guidance requires most inventory to be measured at the lower of cost and net realizable value, thereby simplifying the previous guidance under which an entity must measure inventory at the lower of cost or market. Market is defined as replacement cost, net realizable value (“NRV”), or NRV less a normal profit margin. The ASU will not apply to inventory that is measured using either the last-in, first-out method or the retail inventory method. The standard will be effective prospectively for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently assessing the provisions of the guidance and has not determined the impact of the adoption of this guidance on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, which requires management to assess whether there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. The new accounting standard is effective as of December 31, 2016, and the Company does not expect it to have an impact on its financial statement disclosures. In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 was issued to clarify that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The new accounting standard is effective for the Company in 2016. Because participants in the Company’s performance-based long-term incentive plan must be service providers of the Company on the determination date in order to be eligible to receive the shares, the adoption of ASU No. 2014-12 will not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 which introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The FASB has voted to approve a one-year deferral of the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The new accounting standard is expected to have an impact to the Company’s consolidated financial statements. The Company is currently reviewing its arrangements to evaluate the impact and method of adoption. In April 2014, the FASB issued ASU 2014-08, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations - that is, a major effect on the organization’s operations and financial results should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. Additionally, the ASU requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This update took effect in the first quarter of 2015. The new guidance did not have a material impact on the Company’s consolidated financial statements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table is the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Basic Earnings Per Share computation: Numerator: Net income (loss) ($ 1,062 ) $ 2,218 ($ 748 ) $ 2,617 Denominator: Common shares outstanding 17,626 18,112 18,059 18,155 Earnings per common share - basic Net income (loss) ($ 0.06 ) $ 0.12 ($ 0.04 ) $ 0.14 Diluted Earnings Per Share computation: Denominator: Common shares outstanding 17,626 18,112 18,059 18,155 Restricted shares subject to vesting * 88 * 110 Performance shares subject to vesting * 62 * 69 Common stock option grants * 9 * 12 Total shares 17,626 18,271 18,059 18,346 Earnings per common share - diluted Net income (loss) ($ 0.06 ) $ 0.12 ($ 0.04 ) $ 0.14 * As denoted by “*” in the table above, weighted average common stock option grants and restricted shares of 183,000 and 369,000 were excluded from the calculations of diluted net loss per share for the three months and nine months ended September 30, 2015, respectively, since their effects are anti-dilutive. |
Cash, Cash Equivalents and In24
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Investments | The Company’s cash and investments consisted of the following: September 30, December 31, Cash $ 8,625 $ 19,731 Cash equivalents 4,262 701 Short-term investments 21,428 39,577 $ 34,315 $ 60,009 |
Cash Equivalents and Investments Measured at Fair Value | Cash equivalents and Level 1 and Level 2 investments measured at fair value were as follows at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds and other cash equivalents $ 4,262 $ 0 $ 0 $ 4,262 $ 701 $ 0 $ 0 $ 701 Investments: US government agency bonds 0 7,671 0 7,671 0 13,502 0 13,502 Certificates of deposit 2,138 0 0 2,138 11,782 0 0 11,782 Pre-refunded municipal bonds 0 7,375 0 7,375 0 5,162 0 5,162 Corporate bonds 0 4,250 0 4,250 0 7,155 0 7,155 Mutual funds 0 0 0 0 1,971 0 0 1,971 Total $ 6,400 $ 19,296 $ 0 $ 25,696 $ 14,454 $ 25,819 $ 0 $ 40,273 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The activity related to goodwill for the nine months ended September 30, 2015 was as follows: Balance at December 31, 2014 $ 161 Goodwill related to acquisition of Nexgen business 3,332 Balance at September 30, 2015 $ 3,493 |
Summary of Other Intangible Assets | The summary of other intangible assets, net as of September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Cost Accumulated Net Book Cost Accumulated Net Book Customer contracts and relationships $ 25,497 $ 17,880 $ 7,617 $ 17,381 $ 15,933 $ 1,448 Patents and technology 10,114 7,171 2,943 6,781 6,507 274 Trademarks and trade names 4,960 3,631 1,329 3,988 3,152 836 Other 2,743 2,198 545 1,998 1,919 79 $ 43,314 $ 30,880 $ 12,434 $ 30,148 $ 27,511 $ 2,637 |
Summary of Assigned Lives and Weighted Average Amortization Periods by Intangible Asset Category | The assigned lives and weighted average amortization periods by intangible asset category is summarized below: Intangible Assets Assigned Life Weighted Average Customer contracts and relationships 4 to 6 years 5.0 Patents and technology 3 to 6 years 4.5 Trademarks and trade names 3 to 8 years 4.7 Other 1 to 6 years 4.4 |
Schedule of Expected Amortization Expense | The Company’s scheduled amortization expense for 2015 and the next five years is as follows: Fiscal Year Amount 2015 $ 4,020 2016 $ 2,962 2017 $ 2,785 2018 $ 2,708 2019 $ 2,508 2020 $ 414 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Inventories | Inventories consisted of the following: September 30, December 31, Raw materials $ 10,713 $ 10,160 Work in process 1,108 915 Finished goods 5,366 5,283 Inventories, net $ 17,187 $ 16,358 |
Summary of Property and Equipment | Property and equipment consisted of the following: September 30, December 31, Building $ 6,231 $ 6,229 Computers and office equipment 10,816 10,435 Manufacturing and test equipment 12,720 11,880 Furniture and fixtures 1,275 1,214 Leasehold improvements 875 909 Motor vehicles 42 117 Total property and equipment 31,959 30,784 Less: Accumulated depreciation and amortization (19,687 ) (17,712 ) Land 1,770 1,770 Property and equipment, net $ 14,042 $ 14,842 |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following: September 30, December 31, 2015 2014 Inventory receipts $ 1,626 $ 2,471 Paid time off 1,338 1,247 Payroll, bonuses, and other employee benefits 991 1,539 Due to Nexgen Parties - working capital adjustment 840 0 Professional fees and contractors 403 223 Warranties 381 304 Deferred revenues 218 1,262 Real estate taxes 121 181 Income and sales taxes 157 266 Employee stock purchase plan 97 314 Executive deferred compensation 0 2,043 Other 258 361 Total $ 6,430 $ 10,211 |
Summary of Long-term Liabilities | Long-term liabilities consist of the following: September 30, December 31, 2015 2014 Due to Nexgen Parties - contingent consideration $ 500 $ 0 Deferred rent 263 258 Long-term obligations under capital leases 128 135 Deferred revenues 39 55 $ 930 $ 448 |
Acquisitions (Tables)
Acquisitions (Tables) - Nexgen Wireless, Inc. [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Provisional Allocation of Purchase Price for Assets from Date of Acquisition | The following is the provisional allocation of the purchase price for the assets from Nexgen at the date of the acquisition as of September 30, 2015: Tangible assets: Accounts receivable $ 5,358 Prepaid and other assets 49 Deferred cost of sales 24 Fixed assets 43 Total tangible assets 5,474 Intangible assets: Customer relationships 8,117 Trade names 972 Technology 3,332 Backlog 162 Non-compete 583 Goodwill 3,332 Total intangible assets 16,498 Total assets 21,972 Accounts payable 200 Accrued liabilities 341 Total liabilities 541 Net assets acquired $ 21,431 |
Reconciliation of Assets Acquired with Cash Paid at Closing | A reconciliation of the assets acquired with the cash paid at closing is as follows: Net assets acquired $ 21,431 Due Nexgen - contingent liability (91 ) Due Nexgen - working capital adjustment (840 ) Cash paid at closing $ 20,500 |
Pro Forma Financial Information for Nexgen | The following pro forma financial information gives effect to the acquisition of the Nexgen business as if the acquisition had taken place on January 1, 2014. The pro forma financial information for Nexgen was derived from the unaudited historical accounting records of Nexgen. (unaudited) (unaudited) (unaudited) (unaudited) Nine Months Ended REVENUES $ 26,526 $ 33,155 $ 83,435 $ 95,508 NET INCOME ($ 1,062 ) $ 2,680 ($ 719 ) $ 4,464 NET INCOME PER SHARE ($ 0.06 ) $ 0.15 ($ 0.04 ) $ 0.24 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | Total stock-based compensation is reflected in the condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Cost of revenues $ 115 $ 112 $ 244 $ 315 Research and development 99 149 244 509 Sales and marketing 230 155 370 491 General and administrative 206 315 534 1,263 Total $ 650 $ 731 $ 1,392 $ 2,578 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the nine months ended September 30, 2015 is as follows: Options Weighted Outstanding at December 31, 2014 1,357,928 $ 7.81 Granted 150,500 8.00 Exercised (35,134 ) 7.25 Expired or Cancelled (110,683 ) 9.00 Forfeited (72,820 ) 7.76 Outstanding at September 30, 2015 1,289,791 $ 7.74 Exercisable at September 30, 2015 796,046 $ 7.96 |
Information about Stock Options Outstanding Under all Stock Plans | The following table summarizes information about stock options outstanding under all stock option plans: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Contractual Life (Years) Weighted- Average Exercise Price Number Exercisable Weighted Average Exercise Price $5.50 - $6.00 4,879 4.97 $ 5.75 3,124 $ 5.63 6.01 - 6.50 16,267 3.54 6.23 12,722 6.23 6.51 - 7.00 38,491 2.59 6.85 35,688 6.86 7.01 - 7.50 793,096 4.43 7.18 427,814 7.17 7.51 - 8.00 27,750 5.04 7.79 11,791 7.82 8.01 - 8.50 127,195 5.21 8.17 27,935 8.45 8.51 - 9.00 32,478 1.15 8.76 28,986 8.76 9.01 - 9.50 188,085 0.98 9.19 187,511 9.19 9.51 - 10.00 20,650 2.37 9.64 19,575 9.64 10.01 - 11.00 40,900 0.72 10.64 40,900 10.64 $5.50 - $11.00 1,289,791 3.72 $ 7.74 796,046 $ 7.96 |
Weighted Average Contractual Life and Intrinsic Value of the Options Outstanding | The weighted average contractual life and intrinsic value at September 30, 2015, was the following: Weighted Intrinsic Options Outstanding 3.72 $ 1 Options Exercisable 2.93 $ 1 |
Fair Value of Date of Grant Using Black-Scholes Option-Pricing Model | The Company calculated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions at September 30 th September 30, 2015 2014 Dividend yield 3.4 % 2.2 % Risk-free interest rate 0.6 % 0.5 % Expected volatility 34 % 34 % Expected life (in years) 5.2 5.2 |
Summary of Performance Share Activity | The following summarizes the performance unit activity during the nine months ended September 30, 2015: Units Weighted Unvested Performance Units - December 31, 2014 380,000 $ 8.47 Units awarded 424,000 7.49 Units vested (6,202 ) 8.47 Units cancelled (33,798 ) 8.04 Unvested Performance Units - September 30, 2015 764,000 $ 7.95 |
Calculation of Fair Value of Each Employee Stock Purchase Grant Using Black-Scholes Option-Pricing Model | The Company calculated the fair value of each employee stock purchase grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions: September 30, 2015 2014 Dividend yield 3.4 % 2.2 % Risk-free interest rate 0.6 % 0.3 % Expected volatility 34 % 38 % Expected life (in years) 0.5 0.5 |
Restricted Stock [Member] | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity for the nine months ended September 30, 2015: Shares Weighted Unvested Restricted Stock Awards - December 31, 2014 343,836 $ 7.41 Shares awarded 633,079 6.81 Shares vested (176,849 ) 7.21 Shares cancelled (19,701 ) 7.77 Unvested Restricted Stock Awards - September 30, 2015 780,365 $ 6.96 |
Restricted Stock Units [Member] | |
Summary of Restricted Stock Activity | The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2015: Units Weighted Unvested Restricted Stock Units - December 31, 2014 4,600 $ 7.47 Units awarded 4,350 7.49 Units vested (2,475 ) 7.00 Units cancelled (1,750 ) 7.91 Unvested Restricted Stock Units - September 30, 2015 4,725 $ 7.47 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Contributions to Retirement Plans | The Company’s contributions to retirement plans were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 PCTEL, Inc. 401(k) Profit sharing Plan - US employees $ 195 $ 154 $ 575 $ 503 Defined contribution plans - foreign employees 87 84 248 245 Total $ 282 $ 238 $ 823 $ 748 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments Under Operating Leases | The future minimum rental payments under these leases at September 30, 2015, are as follows: Year Amount 2015 $ 299 2016 1,067 2017 933 2018 889 2019 673 Thereafter 231 Future minimum lease payments $ 4,092 |
Summary of Capital Leases for Office and Manufacturing Equipment | The Company has capital leases for office and manufacturing equipment. The net book values for asset under capital leases were as follows: September 30, December 31, Cost $ 219 $ 189 Accumulated Depreciation (46 ) (16 ) Net Book Value $ 173 $ 173 |
Present Value of Net Minimum Lease Payments, Capital Leases | The following table presents future minimum lease payments under capital leases at September 30, 2015, together with the present value of the net minimum lease payments due in each year: Year Amount 2015 $ 13 2016 50 2017 50 2018 40 2019 29 2020 4 Total minimum payments required: 186 Less amount representing interest: 13 Present value of net minimum lease payments: $ 173 |
Changes in Warranty Reserves | Changes in the warranty reserves during the nine months ended September 30, 2015 and 2014, were as follows: Nine Months Ended September 30, 2015 2014 Beginning balance $ 304 $ 305 Provisions for warranties 93 62 Consumption of reserves (16 ) (60 ) Ending balance $ 381 $ 307 |
Summary of Restructuring Activity | The following table summarizes the restructuring activity during the nine months ended September 30, 2015 and the status of the reserves at September 30. 2015: Accrual Accrual Balance at Balance at December 31, Restructuring Payments/ September 30, 2014 Expense Charges 2015 2015 Restructuring: Employee related costs $ 0 $ 423 ($ 394 ) $ 29 Fixed assets 0 23 (23 ) 0 Intangible assets adjustment 0 406 (406 ) 0 Totals $ 0 $ 852 ($ 823 ) $ 29 |
Segment, Customer and Geograp31
Segment, Customer and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Assets by Segment | The following tables are the segment operating profits and cash flow information for the three and nine months ended September 30, 2015 and 2014, respectively, and the segment balance sheet information as of September 30, 2015 and December 31, 2014: As of September 30, 2015 Connected RF Solutions Corporate Total Accounts receivable $ 12,341 $ 8,302 $ 0 $ 20,643 Inventories $ 14,761 $ 2,426 $ 0 $ 17,187 Long-lived assets: Property and equipment, net $ 10,400 $ 3,027 $ 615 $ 14,042 Goodwill $ 0 $ 3,493 $ 0 $ 3,493 Intangible assets, net $ 620 $ 11,814 $ 0 $ 12,434 Deferred tax assets, net $ 0 $ 0 $ 10,348 $ 10,348 Other noncurrent assets $ 0 $ 0 $ 36 $ 36 As of December 31, 2014 Connected RF Solutions Corporate Total Accounts receivable $ 15,947 $ 7,927 $ 0 $ 23,874 Inventories $ 14,172 $ 2,186 $ 0 $ 16,358 Long-lived assets: Property and equipment, net $ 11,124 $ 2,987 $ 731 $ 14,842 Goodwill $ 0 $ 161 $ 0 $ 161 Intangible assets, net $ 1,681 $ 956 $ 0 $ 2,637 Deferred tax assets, net $ 0 $ 0 $ 9,710 $ 9,710 Other noncurrent assets $ 0 $ 0 $ 40 $ 40 |
Result of Operations by Segments | The following tables are the segment operating profits and cash flow information for the three and nine months ended September 30, 2015 and 2014, respectively, and the segment balance sheet information as of September 30, 2015 and December 31, 2014: Three Months Ended September 30, 2015 Connected RF Solutions Corporate Total REVENUES $ 17,450 $ 9,115 ($ 39 ) $ 26,526 GROSS PROFIT 4,729 3,894 7 8,630 OPERATING INCOME (LOSS) $ 1,160 ($ 1,058 ) ($ 2,323 ) ($ 2,221 ) Depreciation $ 428 $ 289 $ 64 $ 781 Intangible amortization $ 195 $ 930 $ 0 $ 1,125 Capital expenditures $ 135 $ 151 $ 0 $ 286 Nine Months Ended September 30, 2015 Connected RF Solutions Corporate Total REVENUES $ 52,903 $ 27,749 ($ 175 ) $ 80,477 GROSS PROFIT 15,588 12,802 20 28,410 OPERATING INCOME (LOSS) $ 4,255 ($ 181 ) ($ 8,056 ) ($ 3,982 ) Depreciation $ 1,281 $ 809 $ 208 $ 2,298 Intangible amortization $ 655 $ 2,308 $ 0 $ 2,963 Capital expenditures $ 653 $ 836 $ 94 $ 1,583 Three Months Ended September 30, 2014 Connected RF Solutions Corporate Total REVENUES $ 18,697 $ 9,283 ($ 48 ) $ 27,932 GROSS PROFIT 5,803 5,584 7 11,394 OPERATING INCOME (LOSS) $ 2,262 $ 2,492 ($ 2,658 ) $ 2,096 Depreciation $ 426 $ 211 $ 86 $ 723 Intangible amortization $ 261 $ 204 $ 0 $ 465 Capital expenditures $ 241 $ 345 $ 10 $ 596 Nine Months Ended September 30, 2014 Connected RF Solutions Corporate Total REVENUES $ 52,409 $ 25,578 ($ 218 ) $ 77,769 GROSS PROFIT 16,635 15,171 20 31,826 OPERATING INCOME (LOSS) $ 5,278 $ 5,150 ($ 8,209 ) $ 2,219 Depreciation $ 1,267 $ 562 $ 257 $ 2,086 Intangible amortization $ 891 $ 612 $ 0 $ 1,503 Capital expenditures $ 811 $ 1,036 $ 37 $ 1,884 |
Customer Accounted Revenues | The Company’s revenues to customers outside of the United States, as a percent of total revenues for the three and nine months ended September 30, 2015 and 2014, respectively were as follows: Three Months Ended Nine Months Ended September 30, September 30, Region 2015 2014 2015 2014 Asia Pacific 9 % 11 % 9 % 11 % Europe, Middle East, & Africa 7 % 7 % 9 % 9 % Other Americas 7 % 7 % 6 % 6 % Total Foreign sales 23 % 25 % 24 % 26 % |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of operating segments | 2 | |||
Net foreign exchange gains (losses) resulting from foreign currency transactions included in other income | $ | $ 5 | $ 10 | $ (23) | $ (37) |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income (loss) | $ (1,062) | $ 2,218 | $ (748) | $ 2,617 |
Denominator: | ||||
Common shares outstanding | 17,626 | 18,112 | 18,059 | 18,155 |
Earnings per common share - basic | ||||
Net income (loss) | $ (0.06) | $ 0.12 | $ (0.04) | $ 0.14 |
Denominator: | ||||
Common shares outstanding | 17,626 | 18,112 | 18,059 | 18,155 |
Common stock option grants | 9 | 12 | ||
Total shares | 17,626 | 18,271 | 18,059 | 18,346 |
Earnings per common share - diluted | ||||
Net income (loss) | $ (0.06) | $ 0.12 | $ (0.04) | $ 0.14 |
Restricted Stock [Member] | ||||
Denominator: | ||||
Shares subject to vesting | 88 | 110 | ||
Performance Based Equity Awards [Member] | ||||
Denominator: | ||||
Shares subject to vesting | 62 | 69 |
Earnings per Share - Computat34
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive shares excluded | 183,000 | 369,000 |
Cash, Cash Equivalents and In35
Cash, Cash Equivalents and Investments - Cash and Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 8,625 | $ 19,731 |
Cash equivalents | 4,262 | 701 |
Short-term investments | 21,428 | 39,577 |
Cash and investments | $ 34,315 | $ 60,009 |
Cash, Cash Equivalents and In36
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents maturities | 90 days | |
Investment of cash equivalents are redeemable upon demand using amortized cost method | $ 1 | |
Investment in money market funds restricted by investment in short term securities, percentage | 100.00% | |
Federal Deposit Insurance Corporation Insured amount | $ 250 | |
Cash | 8,625 | $ 19,731 |
Cash equivalents | 4,262 | 701 |
Cash and cash equivalents in foreign bank | 1,400 | 500 |
Short-term investments | $ 21,428 | $ 39,577 |
Short-term investments, maturities | 90 days | |
Net unrealized gains | $ 6 | |
Percentage of investment in bond protected by bond default insurance | 9.00% | 5.00% |
Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 7,400 | $ 5,200 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 4,200 | 7,200 |
U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 7,700 | 13,500 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 2,100 | 11,800 |
Mutual Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 2,000 |
Cash, Cash Equivalents and In37
Cash, Cash Equivalents and Investments - Cash Equivalents and Investments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 4,262 | $ 701 |
Total | 25,696 | 40,273 |
U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 7,671 | 13,502 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 2,138 | 11,782 |
Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 7,375 | 5,162 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 4,250 | 7,155 |
Mutual Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 1,971 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 4,262 | 701 |
Total | 6,400 | 14,454 |
Level 1 [Member] | U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 2,138 | 11,782 |
Level 1 [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Mutual Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 1,971 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Total | 19,296 | 25,819 |
Level 2 [Member] | U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 7,671 | 13,502 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 2 [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 7,375 | 5,162 |
Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 4,250 | 7,155 |
Level 2 [Member] | Mutual Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Total | 0 | 0 |
Level 3 [Member] | U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Mutual Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 0 | $ 0 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Intangible Liability Disclosure [Abstract] | |
Beginning balance | $ 161 |
Goodwill related to acquisition of Nexgen business | 3,332 |
Ending balance | $ 3,493 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Reporting_Unit | Sep. 30, 2014USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2014USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill acquired | $ 3,332 | ||||||
Goodwill | $ 3,493 | 3,493 | $ 161 | ||||
Decrease in goodwill | 600 | ||||||
Increase (decrease) in cost of intangible assets | 9,800 | ||||||
Amortization of intangible assets | 1,125 | $ 465 | 2,963 | $ 1,503 | |||
Restructuring charges | 413 | $ 0 | 852 | $ 0 | |||
RF Solutions [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | 3,493 | $ 3,493 | |||||
Number of reporting units for goodwill testing purposes | Reporting_Unit | 2 | ||||||
Minimum [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of intangible assets basis over estimated useful lives | 1 year | ||||||
Maximum [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of intangible assets basis over estimated useful lives | 8 years | ||||||
Nexgen Wireless, Inc. [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill acquired | $ 3,300 | ||||||
Goodwill | 3,332 | 3,332 | |||||
Decrease in goodwill | 600 | ||||||
Intangible asset | 13,200 | 13,200 | |||||
Amortization of intangible assets | 3,000 | ||||||
Intangible asset amortization expense | 700 | 1,700 | |||||
Restructuring charges | $ 400 | ||||||
Envision Wireless, Inc. [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill acquired | $ 200 | ||||||
All Other Intangible Assets [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of intangible assets | 400 | $ 1,300 | |||||
Customer Relationships [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Increase (decrease) in cost of intangible assets | 600 | ||||||
Customer Relationships [Member] | Nexgen Wireless, Inc. [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Increase (decrease) in cost of intangible assets | $ 600 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 43,314 | $ 30,148 |
Accumulated Amortization | 30,880 | 27,511 |
Net Book Value | 12,434 | 2,637 |
Customer Contracts and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 25,497 | 17,381 |
Accumulated Amortization | 17,880 | 15,933 |
Net Book Value | 7,617 | 1,448 |
Patents and Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 10,114 | 6,781 |
Accumulated Amortization | 7,171 | 6,507 |
Net Book Value | 2,943 | 274 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,960 | 3,988 |
Accumulated Amortization | 3,631 | 3,152 |
Net Book Value | 1,329 | 836 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,743 | 1,998 |
Accumulated Amortization | 2,198 | 1,919 |
Net Book Value | $ 545 | $ 79 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Summary of Assigned Lives and Weighted Average Amortization Periods by Intangible Asset Category (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Customer Contracts and Relationships [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Weighted Average Amortization Period | 5 years |
Patents and Technology [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Weighted Average Amortization Period | 4 years 6 months |
Trademarks and Trade Names [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Weighted Average Amortization Period | 4 years 8 months 12 days |
Other [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Weighted Average Amortization Period | 4 years 4 months 24 days |
Minimum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 1 year |
Minimum [Member] | Customer Contracts and Relationships [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 4 years |
Minimum [Member] | Patents and Technology [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 3 years |
Minimum [Member] | Trademarks and Trade Names [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 3 years |
Minimum [Member] | Other [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 1 year |
Maximum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 8 years |
Maximum [Member] | Customer Contracts and Relationships [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 6 years |
Maximum [Member] | Patents and Technology [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 6 years |
Maximum [Member] | Trademarks and Trade Names [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 8 years |
Maximum [Member] | Other [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 6 years |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,015 | $ 4,020 |
2,016 | 2,962 |
2,017 | 2,785 |
2,018 | 2,708 |
2,019 | 2,508 |
2,020 | $ 414 |
Balance Sheet Information - Add
Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Allowance for doubtful accounts | $ 119 | $ 119 | $ 121 | ||
Consigned inventory with customers | 700 | 700 | 800 | ||
Allowance for inventory losses | 1,900 | 1,900 | $ 1,800 | ||
Depreciation and amortization | $ 800 | $ 700 | $ 2,300 | $ 2,100 | |
Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 5 years | ||||
Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 7 years | ||||
Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 30 years | ||||
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Standard term of accounts receivable | 30 days | ||||
Minimum [Member] | Computer Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 3 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Standard term of accounts receivable | 90 days | ||||
Useful lives of the assets | 1 year | ||||
Maximum [Member] | Computer Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 5 years |
Balance Sheet Information - Sum
Balance Sheet Information - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Raw materials | $ 10,713 | $ 10,160 |
Work in process | 1,108 | 915 |
Finished goods | 5,366 | 5,283 |
Inventories, net | $ 17,187 | $ 16,358 |
Balance Sheet Information - S45
Balance Sheet Information - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 31,959 | $ 30,784 |
Less: Accumulated depreciation and amortization | (19,687) | (17,712) |
Land | 1,770 | 1,770 |
Property and equipment, net | 14,042 | 14,842 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,231 | 6,229 |
Computers and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 10,816 | 10,435 |
Manufacturing and Test Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,720 | 11,880 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,275 | 1,214 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 875 | 909 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 42 | $ 117 |
Balance Sheet Information - S46
Balance Sheet Information - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Inventory receipts | $ 1,626 | $ 2,471 |
Paid time off | 1,338 | 1,247 |
Payroll, bonuses, and other employee benefits | 991 | 1,539 |
Due to Nexgen Parties - working capital adjustment | 840 | 0 |
Professional fees and contractors | 403 | 223 |
Warranties | 381 | 304 |
Deferred revenues | 218 | 1,262 |
Real estate taxes | 121 | 181 |
Income and sales taxes | 157 | 266 |
Employee stock purchase plan | 97 | 314 |
Executive deferred compensation | 0 | 2,043 |
Other | 258 | 361 |
Total | $ 6,430 | $ 10,211 |
Balance Sheet Information - S47
Balance Sheet Information - Summary of Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Liabilities, Noncurrent [Abstract] | ||
Due to Nexgen Parties - contingent consideration | $ 500 | $ 0 |
Deferred rent | 263 | 258 |
Long-term obligations under capital leases | 128 | 135 |
Deferred revenues | 39 | 55 |
Long-term liabilities | $ 930 | $ 448 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 27, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2015 | May. 05, 2015 |
Business Acquisition [Line Items] | ||||||||
Business acquisition, acquired entity name | Nexgen Wireless, Inc. | |||||||
Business acquisition, effective date | Feb. 27, 2015 | |||||||
Asset purchase, date of agreement | Feb. 27, 2015 | |||||||
Goodwill | $ 3,493 | $ 3,493 | $ 161 | |||||
Decrease in goodwill | 600 | |||||||
Increase (decrease) in cost of intangible assets | 9,800 | |||||||
Revenue | 26,526 | $ 27,932 | 80,477 | $ 77,769 | ||||
Amortization of intangible assets | 1,125 | 465 | 2,963 | 1,503 | ||||
Pro Forma [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization of intangible assets | $ 600 | 400 | $ 2,000 | |||||
Nexgen Wireless, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Provisional purchase consideration | $ 21,400 | |||||||
Cash paid | 18,250 | |||||||
Contingent consideration related to claims escrow | 2,250 | 91 | $ 91 | |||||
Potential earn-out at fair value | 100 | |||||||
Business acquisition estimated excess working capital paid | $ 800 | |||||||
Weighted average amortization period of intangible assets | 5 years | |||||||
Percentage of revenue | 78.00% | |||||||
Goodwill | 3,332 | $ 3,332 | ||||||
Assembled workforce, goodwill earned | 1,500 | 1,500 | ||||||
Decrease in goodwill | 600 | |||||||
Revenue | $ 23,800 | |||||||
Amortization of intangible assets | 3,000 | |||||||
Nexgen APA Amendment [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration related to claims escrow | 5,000 | 5,000 | $ 1,000 | |||||
Portion of accounts receivable transferred | 800 | |||||||
Escrowed funds payable | 2,250 | |||||||
Adjustment to contingent consideration | 900 | |||||||
Nexgen APA Amendment [Member] | Estimated Fair Value [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration related to claims escrow | 500 | $ 500 | $ 1,000 | $ 2,000 | ||||
Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Increase (decrease) in cost of intangible assets | 600 | |||||||
Customer Relationships [Member] | Nexgen Wireless, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Increase (decrease) in cost of intangible assets | $ 600 |
Acquisitions - Provisional Allo
Acquisitions - Provisional Allocation of Purchase Price for Assets from Date of Acquisition (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Goodwill | $ 3,493 | $ 161 |
Purchase price allocation, Assets and Liabilities Assumed, Net | 21,431 | |
Nexgen Wireless, Inc. [Member] | ||
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Accounts receivable | 5,358 | |
Purchase price allocation, Prepaid and other assets | 49 | |
Purchase price allocation, Deferred cost of sales | 24 | |
Purchase price allocation, Fixed assets | 43 | |
Purchase price allocation, Goodwill | 3,332 | |
Purchase price allocation, Total intangible assets | 16,498 | |
Purchase price allocation, Assets | 21,972 | |
Purchase price allocation, Accounts payable | 200 | |
Purchase price allocation, Accrued liabilities | 341 | |
Purchase price allocation, Liabilities | 541 | |
Purchase price allocation, Assets and Liabilities Assumed, Net | 21,431 | |
Nexgen Wireless, Inc. [Member] | Tangible Assets [Member] | ||
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Assets | 5,474 | |
Nexgen Wireless, Inc. [Member] | Customer Relationships [Member] | ||
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Intangible assets | 8,117 | |
Nexgen Wireless, Inc. [Member] | Trade Names [Member] | ||
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Intangible assets | 972 | |
Nexgen Wireless, Inc. [Member] | Technology [Member] | ||
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Intangible assets | 3,332 | |
Nexgen Wireless, Inc. [Member] | Backlog [Member] | ||
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Intangible assets | 162 | |
Nexgen Wireless, Inc. [Member] | Non-Compete [Member] | ||
Business Acquisition Purchase Price Allocation [Line Items] | ||
Purchase price allocation, Intangible assets | $ 583 |
Acquisitions - Reconciliation o
Acquisitions - Reconciliation of Assets Acquired with Cash Paid at Closing (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Feb. 27, 2015 |
Business Acquisition [Line Items] | ||
Net assets acquired | $ 21,431 | |
Cash paid at closing | 20,500 | |
Nexgen Wireless, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Net assets acquired | 21,431 | |
Due Nexgen - contingent liability | (91) | $ (2,250) |
Due Nexgen - working capital adjustment | $ (840) |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information for Nexgen (Detail) - Nexgen Wireless, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
REVENUES | $ 26,526 | $ 33,155 | $ 83,435 | $ 95,508 |
NET INCOME | $ (1,062) | $ 2,680 | $ (719) | $ 4,464 |
NET INCOME PER SHARE | $ (0.06) | $ 0.15 | $ (0.04) | $ 0.24 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 700 | $ 700 | $ 1,400 | $ 2,600 |
Expense reversal of performance units | 500 | |||
Restricted Stock Award [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 500 | 500 | 1,400 | 1,600 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 57 | 200 | 400 | 800 |
Employee Stock Purchase Plan ("ESPP") [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 55 | $ 54 | $ 200 | $ 137 |
Performance Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 33 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 650 | $ 731 | $ 1,392 | $ 2,578 |
Cost of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 115 | 112 | 244 | 315 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 99 | 149 | 244 | 509 |
Sales and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 230 | 155 | 370 | 491 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 206 | $ 315 | $ 534 | $ 1,263 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock - Service-Based - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Service Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants vesting period | 4 years | |||
Restricted shares vested grant date intrinsic value | $ 57 | $ 25 | $ 1,400 | $ 3,200 |
Unrecognized compensation expense | $ 3,600 | $ 3,600 | ||
Weighted average period | 1 year 6 months | |||
Service Based Restricted Stock [Member] | Martin H. Singer, Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options awarded | 200,000 | |||
Service Based Restricted Stock [Member] | Executive Officers and Other Executives [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options awarded | 117,300 | |||
Vesting period from grant date | 1 year | |||
Nexgen Wireless, Inc. [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options awarded | 100,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, Shares | shares | 343,836 |
Units awarded, Shares | shares | 633,079 |
Units vested, Shares | shares | (176,849) |
Units cancelled, Shares | shares | (19,701) |
Ending balance, Shares | shares | 780,365 |
Beginning balance, Weighted Average Grant Date Fair Value | $ 7.41 |
Units awarded, Weighted Average Grant Date Fair Value | 6.81 |
Units vested, Weighted Average Grant Date Fair Value | 7.21 |
Units cancelled, Weighted Average Grant Date Fair Value | 7.77 |
Ending balance, Weighted Average Grant Date Fair Value | $ 6.96 |
Stock-Based Compensation - Su56
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Schedule Of Summary Of Restricted Stock Unit Activity [Line Items] | |
Beginning balance, Shares | shares | 4,600 |
Units awarded, Units | shares | 4,350 |
Units vested, Units | shares | (2,475) |
Units cancelled, Units | shares | (1,750) |
Ending balance, Shares | shares | 4,725 |
Beginning balance, Weighted Average Grant Date Fair Value | $ 7.47 |
Units awarded, Weighted Average Grant Date Fair Value | 7.49 |
Units vested, Weighted Average Grant Date Fair Value | 7 |
Units cancelled, Weighted Average Grant Date Fair Value | 7.91 |
Ending balance, Weighted Average Grant Date Fair Value | $ 7.47 |
Stock-Based Compensation - Re57
Stock-Based Compensation - Restricted Stock Units - Service-Based - Additional Information (Detail) - Service Based Restricted Stock Units [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares vested intrinsic value | $ 0 | $ 0 | $ 20,000 | $ 27,000 |
Unrecognized compensation expense | $ 22,000 | $ 22,000 | ||
Weighted average period | 1 year 6 months |
Stock-Based Compensation - St58
Stock-Based Compensation - Stock Options - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2015 | Jul. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Lower range of exercise prices | $ 5.50 | |||||
Upper range of exercise prices | 11 | |||||
Intrinsic value based on share price | $ 6.01 | $ 6.01 | ||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee stock options vesting provisions, description | Employee options contain installment vesting typically over a period of four years. | |||||
Options vested in remaining period | 4 years | |||||
Period of termination of employment | 90 days | |||||
Stock options granted period | 10 years | 7 years | ||||
Stock options awarded | 130,000 | 1,500 | 20,500 | |||
Options exercised | 0 | 1,894 | 35,134 | 41,841 | ||
Proceeds from options exercised | $ 13 | $ 300 | $ 300 | |||
Intrinsic value | $ 2 | $ 34 | $ 55 | |||
Lower range of exercise prices | $ 5.50 | |||||
Upper range of exercise prices | $ 11 | |||||
Period of expected life, options granted | 5 years | |||||
Weighted average period | 1 year 2 months 12 days | |||||
Unrecognized compensation expense | $ 400 | $ 400 |
Stock-Based Compensation - Su59
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Stock Options [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Summary Of Stock Option Activities [Line Items] | ||||
Options Outstanding, Beginning balance, Shares | 1,357,928 | |||
Options Outstanding, Granted | 150,500 | |||
Options Outstanding, Exercised | 0 | (1,894) | (35,134) | (41,841) |
Options Outstanding, Expired or cancelled | (110,683) | |||
Options Outstanding, Forfeited | (72,820) | |||
Options Outstanding, Ending balance, Shares | 1,289,791 | 1,289,791 | ||
Options Exercisable, Ending balance, Shares | 796,046 | 796,046 | ||
Options Outstanding, Beginning balance, Weighted Average Exercise Price | $ 7.81 | |||
Weighted Average Exercise Price, Granted | 8 | |||
Weighted Average Exercise Price, Exercised | 7.25 | |||
Weighted Average Exercise Price, Expired or Cancelled | 9 | |||
Weighted Average Exercise Price, Forfeited | 7.76 | |||
Options Outstanding, Ending balance, Weighted Average Exercise Price | $ 7.74 | 7.74 | ||
Options Outstanding, Exercisable at End of Year, Weighted Average Exercise Price | $ 7.96 | $ 7.96 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Stock Options Outstanding Under all Stock Plans (Detail) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | $ 5.50 |
Upper range of exercise prices | $ 11 |
Options Outstanding, Number | shares | 1,289,791 |
Options Outstanding, Weighted Average Contractual Life (Years) | 3 years 8 months 19 days |
Options Outstanding, Weighted Average Exercise Price | $ 7.74 |
Options Exercisable, Number | shares | 796,046 |
Options Exercisable, Weighted Average Exercise Price | $ 7.96 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 5.50 |
Upper range of exercise prices | $ 6 |
Options Outstanding, Number | shares | 4,879 |
Options Outstanding, Weighted Average Contractual Life (Years) | 4 years 11 months 19 days |
Options Outstanding, Weighted Average Exercise Price | $ 5.75 |
Options Exercisable, Number | shares | 3,124 |
Options Exercisable, Weighted Average Exercise Price | $ 5.63 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 6.01 |
Upper range of exercise prices | $ 6.50 |
Options Outstanding, Number | shares | 16,267 |
Options Outstanding, Weighted Average Contractual Life (Years) | 3 years 6 months 15 days |
Options Outstanding, Weighted Average Exercise Price | $ 6.23 |
Options Exercisable, Number | shares | 12,722 |
Options Exercisable, Weighted Average Exercise Price | $ 6.23 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 6.51 |
Upper range of exercise prices | $ 7 |
Options Outstanding, Number | shares | 38,491 |
Options Outstanding, Weighted Average Contractual Life (Years) | 2 years 7 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 6.85 |
Options Exercisable, Number | shares | 35,688 |
Options Exercisable, Weighted Average Exercise Price | $ 6.86 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 7.01 |
Upper range of exercise prices | $ 7.50 |
Options Outstanding, Number | shares | 793,096 |
Options Outstanding, Weighted Average Contractual Life (Years) | 4 years 5 months 5 days |
Options Outstanding, Weighted Average Exercise Price | $ 7.18 |
Options Exercisable, Number | shares | 427,814 |
Options Exercisable, Weighted Average Exercise Price | $ 7.17 |
Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 7.51 |
Upper range of exercise prices | $ 8 |
Options Outstanding, Number | shares | 27,750 |
Options Outstanding, Weighted Average Contractual Life (Years) | 5 years 15 days |
Options Outstanding, Weighted Average Exercise Price | $ 7.79 |
Options Exercisable, Number | shares | 11,791 |
Options Exercisable, Weighted Average Exercise Price | $ 7.82 |
Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 8.01 |
Upper range of exercise prices | $ 8.50 |
Options Outstanding, Number | shares | 127,195 |
Options Outstanding, Weighted Average Contractual Life (Years) | 5 years 2 months 16 days |
Options Outstanding, Weighted Average Exercise Price | $ 8.17 |
Options Exercisable, Number | shares | 27,935 |
Options Exercisable, Weighted Average Exercise Price | $ 8.45 |
Range Seven [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 8.51 |
Upper range of exercise prices | $ 9 |
Options Outstanding, Number | shares | 32,478 |
Options Outstanding, Weighted Average Contractual Life (Years) | 1 year 1 month 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 8.76 |
Options Exercisable, Number | shares | 28,986 |
Options Exercisable, Weighted Average Exercise Price | $ 8.76 |
Range Eight [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 9.01 |
Upper range of exercise prices | $ 9.50 |
Options Outstanding, Number | shares | 188,085 |
Options Outstanding, Weighted Average Contractual Life (Years) | 11 months 23 days |
Options Outstanding, Weighted Average Exercise Price | $ 9.19 |
Options Exercisable, Number | shares | 187,511 |
Options Exercisable, Weighted Average Exercise Price | $ 9.19 |
Range Nine [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 9.51 |
Upper range of exercise prices | $ 10 |
Options Outstanding, Number | shares | 20,650 |
Options Outstanding, Weighted Average Contractual Life (Years) | 2 years 4 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $ 9.64 |
Options Exercisable, Number | shares | 19,575 |
Options Exercisable, Weighted Average Exercise Price | $ 9.64 |
Range Ten [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 10.01 |
Upper range of exercise prices | $ 11 |
Options Outstanding, Number | shares | 40,900 |
Options Outstanding, Weighted Average Contractual Life (Years) | 8 months 19 days |
Options Outstanding, Weighted Average Exercise Price | $ 10.64 |
Options Exercisable, Number | shares | 40,900 |
Options Exercisable, Weighted Average Exercise Price | $ 10.64 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Contractual Life and Intrinsic Value of Options Outstanding (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options Outstanding Weighted Average Contractual Life (years) | 3 years 8 months 19 days |
Options Exercisable Weighted Average Contractual Life (years) | 2 years 11 months 5 days |
Options Outstanding Intrinsic Value | $ 1 |
Options Exercisable Intrinsic Value | $ 1 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Date of Grant Using Black-Scholes Option-Pricing Model (Detail) - Stock Options [Member] | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Dividend yield | 3.40% | 2.20% |
Risk-free interest rate | 0.60% | 0.50% |
Expected volatility | 34.00% | 34.00% |
Expected life (in years) | 5 years 2 months 12 days | 5 years 2 months 12 days |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-based Equity Awards - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | $ 700,000 | $ 700,000 | $ 1,400,000 | $ 2,600,000 | |
Vice President [Member] | Nexgen Wireless, Inc. [Member] | Vest on February 27, 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of vesting right | 50.00% | ||||
Vice President [Member] | Nexgen Wireless, Inc. [Member] | Vest on February 27, 2018 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of vesting right | 50.00% | ||||
2014 LTIP - One-year Revenue Goals [Member] | Performance Based Equity Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | 0 | ||||
Aggregate intrinsic value of shares vested | 50,000 | ||||
2015 Long-Term Incentive Plan [Member] | Performance Based Equity Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | $ 0 | ||||
Minimum [Member] | 2014 LTIP - One-year Revenue Goals [Member] | Performance Based Equity Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares earned | 190,000 | 190,000 | |||
Minimum [Member] | 2015 Long-Term Incentive Plan [Member] | Performance Based Equity Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares earned | 212,000 | 212,000 | |||
Maximum [Member] | Vice President [Member] | Nexgen Wireless, Inc. [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 50,000 | ||||
Maximum [Member] | 2014 LTIP - One-year Revenue Goals [Member] | Performance Based Equity Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares earned | 380,000 | 380,000 | |||
Maximum [Member] | 2015 Long-Term Incentive Plan [Member] | Performance Based Equity Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares earned | 424,000 | 424,000 |
Stock-Based Compensation - Su64
Stock-Based Compensation - Summary of Performance Share Activity (Detail) - Performance Units [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, Shares | shares | 380,000 |
Units awarded, Shares | shares | 424,000 |
Units vested, Shares | shares | (6,202) |
Units cancelled, Shares | shares | (33,798) |
Ending balance, Shares | shares | 764,000 |
Beginning balance, Weighted Average Grant Date Fair Value | $ 8.47 |
Units awarded, Weighted Average Grant Date Fair Value | 7.49 |
Units vested, Weighted Average Grant Date Fair Value | 8.47 |
Units cancelled, Weighted Average Grant Date Fair Value | 8.04 |
Ending balance, Weighted Average Grant Date Fair Value | $ 7.95 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan ("ESPP") - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Aug. 31, 2015 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2014 | Sep. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Offering period | 6 months | |||||
Employee Stock Purchase Plan ("ESPP") [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of fair market value to determine purchase price | 85.00% | |||||
Proceeds of from issuance of shares under ESPP | $ 0.4 | $ 0.4 | $ 0.3 | $ 0.3 | ||
Options issued | 76,314 | 57,293 | 51,545 | 49,063 | ||
Rate of discount on fair market value of common stock under ESPP | 15.00% | |||||
Period of expected life, options granted | 5 years | |||||
Increase number authorized shares | 750,000 |
Stock-Based Compensation - Calc
Stock-Based Compensation - Calculation of Fair Value of Each Employee Stock Purchase Grant Using the Black-Scholes Option-Pricing Model (Detail) - Employee Stock Purchase Plan ("ESPP") [Member] | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Calculation of fair value of each employee stock purchase grant using the Black-Scholes option-pricing model | ||
Dividend yield | 3.40% | 2.20% |
Risk-free interest rate | 0.60% | 0.30% |
Expected volatility | 34.00% | 38.00% |
Expected life (in years) | 6 months | 6 months |
Stock-Based Compensation - Em67
Stock-Based Compensation - Employee Withholding Taxes on Stock Awards - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Withholding Taxes on Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payment of withholding taxes related to stock awards | $ 0.4 | $ 1 |
Stock-Based Compensation - St68
Stock-Based Compensation - Stock Repurchases - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2015 | Aug. 10, 2015 | Apr. 20, 2015 | Nov. 13, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, shares repurchased | 1,113,934 | 1,494,019 | |||
Average price of repurchased shares | $ 6.18 | $ 6.49 | |||
Share repurchase program, shares authorized to be repurchased | 2,726,000 | 926,000 | |||
Shares that could still be repurchased | 1,231,981 | 1,231,981 | |||
Board of Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, shares authorized to be repurchased | 1,300,000 | 500,000 |
Stock-Based Compensation - Amen
Stock-Based Compensation - Amended and Restated Stock Plan - Additional Information (Detail) | Jun. 10, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based payment award, options outstanding, number | 1,437,661 |
Amended and Restated Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Increase in number of shares authorized to issue | 3,573,981 |
Number of shares available for grant | 2,058,769 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted shares outstanding | 316,740 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | |
Executive Deferred Compensation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Value of investment account to fund obligation | $ 2.1 | ||
Deferred compensation obligation | $ 2 | ||
Full settlement of obligation | $ 2 | ||
Employee Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum percentage of current compensation of employee to contribute in plan | 15.00% |
Benefit Plans - Summary of Cont
Benefit Plans - Summary of Contributions to Retirement Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
PCTEL, Inc. 401(k) Profit sharing Plan - US employees | $ 195 | $ 154 | $ 575 | $ 503 |
Defined contribution plans - foreign employees | 87 | 84 | 248 | 245 |
Total | $ 282 | $ 238 | $ 823 | $ 748 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Payments Under Operating Leases (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,015 | $ 299 |
2,016 | 1,067 |
2,017 | 933 |
2,018 | 889 |
2,019 | 673 |
Thereafter | 231 |
Future minimum lease payments | $ 4,092 |
Commitments and Contingencies73
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Oct. 10, 2014USD ($) | Sep. 30, 2014USD ($) | Oct. 31, 2015USD ($)ft² | May. 31, 2015USD ($)ft² | Sep. 30, 2015USD ($)ft²Employees | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ft²Employees | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Rent expense under leases | $ 300 | $ 200 | $ 800 | $ 700 | ||||||
Lease expiration date | Oct. 31, 2015 | |||||||||
Allowance for sales returns | $ 200 | $ 100 | ||||||||
Warranty reserve | 381 | 381 | 304 | |||||||
Restructuring charges | $ 413 | 0 | $ 852 | 0 | ||||||
Number of employees terminated | Employees | 18 | 20 | ||||||||
Severance and Employee Related Costs [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Restructuring charges | $ 400 | $ 400 | ||||||||
Disposal of Fixed Assets [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Restructuring charges | 23 | |||||||||
Mobile Towers [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Intangible assets written off related to mobile towers | 400 | |||||||||
Mobile Towers [Member] | Disposal of Fixed Assets [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Restructuring charges | $ 23 | $ 23 | ||||||||
Other Party [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Acquisition related legal settlements | $ 800 | |||||||||
Acquisition Related Costs [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Acquisition related legal settlements | $ 100 | |||||||||
Schaumburg, Illinois [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Area of office space | ft² | 6,652 | 6,652 | ||||||||
Lease expiration date | Oct. 31, 2018 | |||||||||
Lease obligations | $ 39 | $ 400 | $ 400 | |||||||
Englewood, Colorado [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Area of office space | ft² | 4,579 | |||||||||
Lease expiration date | Feb. 28, 2021 | |||||||||
Lease obligations | $ 600 | |||||||||
Lease term | 5 years | |||||||||
Tianjin, China [Member] | Subsequent Event [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Area of office space | ft² | 22,163 | |||||||||
Lease expiration date | Oct. 31, 2020 | |||||||||
Lease obligations | $ 200 | |||||||||
Lease term | 5 years | |||||||||
Warranty Reserves [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Warranty reserve | $ 307 | $ 381 | $ 307 | $ 381 | $ 307 | $ 304 | $ 305 | |||
Antenna [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Repair and replacement warranty | 5 years |
Commitments and Contingencies74
Commitments and Contingencies - Summary of Capital Leases for Office and Manufacturing Equipment (Detail) - Office and Manufacturing Equipment [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Capital Leased Assets [Line Items] | ||
Cost | $ 219 | $ 189 |
Accumulated Depreciation | (46) | (16) |
Net Book Value | $ 173 | $ 173 |
Commitments and Contingencies75
Commitments and Contingencies - Present Value of Net Minimum Lease Payments, Capital Leases (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,015 | $ 13 |
2,016 | 50 |
2,017 | 50 |
2,018 | 40 |
2,019 | 29 |
2,020 | 4 |
Total minimum payments required: | 186 |
Less amount representing interest: | 13 |
Present value of net minimum lease payments: | $ 173 |
Commitments and Contingencies76
Commitments and Contingencies - Changes in Warranty Reserves (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in warranty reserves | ||
Beginning balance | $ 304 | |
Ending balance | 381 | |
Warranty Reserves [Member] | ||
Changes in warranty reserves | ||
Beginning balance | 304 | $ 305 |
Provisions for warranties | 93 | 62 |
Consumption of reserves | (16) | (60) |
Ending balance | $ 381 | $ 307 |
Commitments and Contingencies77
Commitments and Contingencies - Summary of Restructuring Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Accrual, Beginning Balance | $ 0 | |||
Restructuring Expense | $ 413 | $ 0 | 852 | $ 0 |
Payments/Charges | (823) | |||
Accrual, Ending Balance | 29 | 29 | ||
Employee Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrual, Beginning Balance | 0 | |||
Restructuring Expense | 423 | |||
Payments/Charges | (394) | |||
Accrual, Ending Balance | 29 | 29 | ||
Disposal of Fixed Assets [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrual, Beginning Balance | 0 | |||
Restructuring Expense | 23 | |||
Payments/Charges | (23) | |||
Accrual, Ending Balance | 0 | 0 | ||
Intangible Assets Adjustment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrual, Beginning Balance | 0 | |||
Restructuring Expense | 406 | |||
Payments/Charges | (406) | |||
Accrual, Ending Balance | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ (625) | $ 85 | $ (451) | $ 340 | |
Statutory rate | 34.00% | 34.00% | |||
Income tax benefit related to reversal of liability for uncertain income taxe | $ 800 | ||||
Deferred tax assets, valuation allowances | 600 | $ 600 | $ 600 | ||
Domestic deferred tax assets ratable reversal pattern period | 15 years | ||||
Operating loss carry forward, expiration period | The carry forward rules allow for up to a 20 year carry forward of net operating losses | ||||
Net operating loss carry forward period | 20 years | ||||
Average period required to utilize future income | 26 years | ||||
Gross unrecognized tax benefit | $ 800 | $ 800 | $ 800 |
Segment, Customer and Geograp79
Segment, Customer and Geographic Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015Customer | Sep. 30, 2014Customer | Sep. 30, 2015CustomerSegment | Sep. 30, 2014Customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of reporting segments | Segment | 2 | |||
Number of customers accounted for more than ten percentage of revenue | 0 | 0 | 0 | 0 |
Sales [Member] | Customer Concentration Risk [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Entity wide revenue major customer, benchmark percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Segment, Customer and Geograp80
Segment, Customer and Geographic Information - Result of Operations by Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Results of operations by segments | ||||
REVENUES | $ 26,526 | $ 27,932 | $ 80,477 | $ 77,769 |
GROSS PROFIT | 8,630 | 11,394 | 28,410 | 31,826 |
OPERATING INCOME (LOSS) | (2,221) | 2,096 | (3,982) | 2,219 |
Depreciation | 781 | 723 | 2,298 | 2,086 |
Intangible amortization | 1,125 | 465 | 2,963 | 1,503 |
Capital expenditures | 286 | 596 | 1,583 | 1,884 |
Operating Segments [Member] | Connected Solutions [Member] | ||||
Results of operations by segments | ||||
REVENUES | 17,450 | 18,697 | 52,903 | 52,409 |
GROSS PROFIT | 4,729 | 5,803 | 15,588 | 16,635 |
OPERATING INCOME (LOSS) | 1,160 | 2,262 | 4,255 | 5,278 |
Depreciation | 428 | 426 | 1,281 | 1,267 |
Intangible amortization | 195 | 261 | 655 | 891 |
Capital expenditures | 135 | 241 | 653 | 811 |
Operating Segments [Member] | RF Solutions [Member] | ||||
Results of operations by segments | ||||
REVENUES | 9,115 | 9,283 | 27,749 | 25,578 |
GROSS PROFIT | 3,894 | 5,584 | 12,802 | 15,171 |
OPERATING INCOME (LOSS) | (1,058) | 2,492 | (181) | 5,150 |
Depreciation | 289 | 211 | 809 | 562 |
Intangible amortization | 930 | 204 | 2,308 | 612 |
Capital expenditures | 151 | 345 | 836 | 1,036 |
Corporate, Non-Segment [Member] | ||||
Results of operations by segments | ||||
REVENUES | (39) | (48) | (175) | (218) |
GROSS PROFIT | 7 | 7 | 20 | 20 |
OPERATING INCOME (LOSS) | (2,323) | (2,658) | (8,056) | (8,209) |
Depreciation | 64 | 86 | 208 | 257 |
Intangible amortization | 0 | 0 | 0 | 0 |
Capital expenditures | $ 0 | $ 10 | $ 94 | $ 37 |
Segment, Customer and Geograp81
Segment, Customer and Geographic Information - Assets by Segment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Results of operations by segments | ||
Accounts receivable | $ 20,643 | $ 23,874 |
Inventories | 17,187 | 16,358 |
Property and equipment, net | 14,042 | 14,842 |
Goodwill | 3,493 | 161 |
Intangible assets, net | 12,434 | 2,637 |
Deferred tax assets, net | 10,348 | 9,710 |
Other noncurrent assets | 36 | 40 |
RF Solutions [Member] | ||
Results of operations by segments | ||
Goodwill | 3,493 | |
Operating Segments [Member] | Connected Solutions [Member] | ||
Results of operations by segments | ||
Accounts receivable | 12,341 | 15,947 |
Inventories | 14,761 | 14,172 |
Property and equipment, net | 10,400 | 11,124 |
Goodwill | 0 | 0 |
Intangible assets, net | 620 | 1,681 |
Deferred tax assets, net | 0 | 0 |
Other noncurrent assets | 0 | 0 |
Operating Segments [Member] | RF Solutions [Member] | ||
Results of operations by segments | ||
Accounts receivable | 8,302 | 7,927 |
Inventories | 2,426 | 2,186 |
Property and equipment, net | 3,027 | 2,987 |
Goodwill | 3,493 | 161 |
Intangible assets, net | 11,814 | 956 |
Deferred tax assets, net | 0 | 0 |
Other noncurrent assets | 0 | 0 |
Corporate, Non-Segment [Member] | ||
Results of operations by segments | ||
Accounts receivable | 0 | 0 |
Inventories | 0 | 0 |
Property and equipment, net | 615 | 731 |
Goodwill | 0 | 0 |
Intangible assets, net | 0 | 0 |
Deferred tax assets, net | 10,348 | 9,710 |
Other noncurrent assets | $ 36 | $ 40 |
Segment, Customer and Geograp82
Segment, Customer and Geographic Information - Customer Accounted Revenues (Detail) - Sales [Member] - Geographic Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 9.00% | 11.00% | 9.00% | 11.00% |
EMEA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 7.00% | 7.00% | 9.00% | 9.00% |
Other Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 7.00% | 7.00% | 6.00% | 6.00% |
Total Foreign Sales [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 23.00% | 25.00% | 24.00% | 26.00% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Lease termination date | Oct. 31, 2015 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | Nov. 03, 2015USD ($)Employees | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Subsequent Event [Line Items] | |||||
Restructuring charges | $ 413 | $ 0 | $ 852 | $ 0 | |
Employee Related Costs [Member] | |||||
Subsequent Event [Line Items] | |||||
Restructuring charges | $ 423 | ||||
Subsequent Event [Member] | Connected Solutions [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of employees eliminated | Employees | 22 | ||||
Subsequent Event [Member] | Connected Solutions [Member] | Employee Related Costs [Member] | |||||
Subsequent Event [Line Items] | |||||
Restructuring charges | $ 600 |