Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 17,727,497 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 6,527 | $ 14,855 |
Short-term investment securities | 29,979 | 18,456 |
Accounts receivable, net of allowance for doubtful accounts of $302 and $273 at September 30, 2017 and December 31, 2016, respectively | 18,530 | 19,101 |
Inventories, net | 12,828 | 14,442 |
Prepaid expenses and other assets | 966 | 1,498 |
Current assets held for sale | 0 | 50 |
Total current assets | 68,830 | 68,402 |
Property and equipment, net | 12,227 | 11,833 |
Goodwill | 3,332 | 3,332 |
Intangible assets, net | 2,403 | 3,275 |
Deferred tax assets, net | 5,344 | 4,512 |
Other noncurrent assets | 69 | 36 |
Non-current assets held for sale | 0 | 776 |
TOTAL ASSETS | 92,205 | 92,166 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 5,185 | 6,073 |
Accrued liabilities | 6,734 | 7,177 |
Total current liabilities | 11,919 | 13,250 |
Other long-term liabilities | 430 | 391 |
Total liabilities | 12,349 | 13,641 |
Stockholders’ equity: | ||
Common stock, $0.001 par value, 100,000,000 shares authorized, 17,762,694 and 17,335,122 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 18 | 17 |
Additional paid-in capital | 134,441 | 134,480 |
Accumulated deficit | (54,508) | (55,590) |
Accumulated other comprehensive loss | (95) | (382) |
Total stockholders’ equity | 79,856 | 78,525 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 92,205 | $ 92,166 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 302 | $ 273 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,762,694 | 17,335,122 |
Common stock, shares outstanding | 17,762,694 | 17,335,122 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
REVENUES | $ 23,665 | $ 20,892 | $ 68,136 | $ 61,383 |
COST OF REVENUES | 13,515 | 12,637 | 39,570 | 36,735 |
GROSS PROFIT | 10,150 | 8,255 | 28,566 | 24,648 |
OPERATING EXPENSES: | ||||
Research and development | 2,757 | 2,451 | 8,141 | 7,581 |
Sales and marketing | 3,230 | 3,116 | 9,394 | 9,070 |
General and administrative | 3,146 | 2,847 | 10,081 | 9,031 |
Amortization of intangible assets | 124 | 124 | 372 | 408 |
Restructuring expenses | 0 | 17 | 0 | 233 |
Total operating expenses | 9,257 | 8,555 | 27,988 | 26,323 |
OPERATING INCOME (LOSS) | 893 | (300) | 578 | (1,675) |
Other income, net | 32 | 35 | 74 | 49 |
INCOME (LOSS) BEFORE INCOME TAXES | 925 | (265) | 652 | (1,626) |
(Benefit) expense for income taxes | 206 | (354) | (68) | 6,603 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 719 | 89 | 720 | (8,229) |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT (EXPENSE) | 236 | 86 | (148) | (4,125) |
NET INCOME (LOSS) | $ 955 | $ 175 | $ 572 | $ (12,354) |
Net Income (Loss) per Share From Continuing Operations: | ||||
Basic | $ 0.04 | $ 0.01 | $ 0.04 | $ (0.51) |
Diluted | 0.04 | 0.01 | 0.04 | (0.51) |
Net Income (Loss) per Share From Discontinued Operations: | ||||
Basic | 0.01 | 0.01 | (0.01) | (0.26) |
Diluted | 0.01 | 0.01 | (0.01) | (0.26) |
Net Income (Loss) per Share: | ||||
Basic | 0.06 | 0.01 | 0.03 | (0.77) |
Diluted | $ 0.06 | $ 0.01 | $ 0.03 | $ (0.77) |
Weighted Average Shares: | ||||
Basic | 16,757 | 16,106 | 16,526 | 16,136 |
Diluted | 17,065 | 16,245 | 16,830 | 16,136 |
Cash dividend per share | $ 0.055 | $ 0.05 | $ 0.155 | $ 0.15 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 955 | $ 175 | $ 572 | $ (12,354) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Foreign currency translation adjustments | 131 | (14) | 287 | (126) |
COMPREHENSIVE INCOME (LOSS) | $ 1,086 | $ 161 | $ 859 | $ (12,480) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid - In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE at beginning of year at Dec. 31, 2016 | $ 78,525 | $ 17 | $ 134,480 | $ (55,590) | $ (382) |
Cumulative-effect adjustment resulting from adoption of ASU 2016-09 at Dec. 31, 2016 | 510 | 510 | |||
BALANCE at beginning of year, as adjusted at Dec. 31, 2016 | 79,035 | 17 | 134,480 | (55,080) | (382) |
Stock-based compensation expense | 2,507 | 1 | 2,506 | 0 | 0 |
Issuance of shares for stock purchase plans | 1,375 | 0 | 1,375 | 0 | 0 |
Cancellation of shares for payment of withholding tax | (1,190) | 0 | (1,190) | 0 | 0 |
Dividends paid | (2,730) | 0 | (2,730) | 0 | 0 |
Net income | 572 | 0 | 0 | 572 | 0 |
Foreign currency translation adjustments | 287 | 0 | 0 | 0 | 287 |
BALANCE at end of year at Sep. 30, 2017 | $ 79,856 | $ 18 | $ 134,441 | $ (54,508) | $ (95) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities: | ||
Net income (loss) from continuing operations | $ 720 | $ (8,229) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 1,913 | 1,994 |
Intangible asset amortization | 872 | 908 |
Stock-based compensation | 2,458 | 3,069 |
Loss on disposal/sale of property and equipment | 18 | 4 |
Restructuring costs | (88) | 112 |
Deferred tax provision | (282) | 6,332 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 710 | 2,946 |
Inventories | 1,809 | 2,793 |
Prepaid expenses and other assets | 509 | 306 |
Accounts payable | (1,078) | (1,360) |
Income taxes payable | (154) | (153) |
Other accrued liabilities | (426) | (857) |
Deferred revenue | 95 | 12 |
Net cash provided by operating activities | 7,076 | 7,877 |
Investing Activities: | ||
Capital expenditures | (2,097) | (1,550) |
Proceeds from disposal of property and equipment | 1 | 1 |
Purchases of investments | (37,579) | (47,552) |
Redemptions/maturities of short-term investments | 26,056 | 54,181 |
Net cash (used in) provided by investing activities | (13,619) | 5,080 |
Financing Activities: | ||
Proceeds from issuance of common stock | 1,375 | 649 |
Payments for repurchase of common stock | 0 | (4,095) |
Payment of withholding tax on stock-based compensation | (1,190) | (365) |
Principle payments on capital leases | (64) | (34) |
Cash dividends | (2,730) | (2,589) |
Net cash used in financing activities | (2,609) | (6,434) |
Cash flows from discontinued operations: | ||
Net cash used in operating activities | (697) | (321) |
Net cash provided by (used in) investing activities | 1,434 | (149) |
Net (decrease) increase in cash and cash equivalents | (8,415) | 6,053 |
Effect of exchange rate changes on cash | 87 | (3) |
Cash and cash equivalents, beginning of year | 14,855 | 7,055 |
Cash and Cash Equivalents, End of Period | $ 6,527 | $ 13,105 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016. Nature of Operations PCTEL, Inc. (“PCTEL”, the “Company”, “we”, “ours”, and “us”) delivers P erformance C ritical TEL ecom technology solutions to the wireless industry. PCTEL is a leading global supplier of antennas and wireless network testing solutions. PCTEL’s Connected Solutions segment designs and manufactures precision antennas. PCTEL antennas are deployed in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in network equipment and devices for the Industrial Internet of Things (“IIoT”). PCTEL’s RF Solutions segment p rovides test tools that improve the performance of wireless networks globally. Mobile operators, neutral hosts, and equipment manufacturers rely on PCTEL to analyze, design, and optimize next generation wireless networks. Segment Reporting PCTEL operates in two segments for reporting purposes, Connected Solutions and RF Solutions. The Company’s chief operating decision maker uses operating profits and identified assets for the Connected Solutions and RF Solutions segments for resource allocations. 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 PCTEL Connected Solutions designs and manufactures precision antennas. Our precision antennas are deployed in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things (IIoT). We offer in-house design, testing, radio integration, and manufacturing capabilities for our antenna customers. Revenue growth in these markets is driven by the increased use of wireless communications and increased complexity trends occurring in these markets. PCTEL antennas are primarily sold to original equipment manufacturer (“OEM”) providers where they are designed into the customer’s solution. Competition in the antenna markets addressed by Connected Solutions is fragmented. Competitors include Airgain, Amphenol, Laird, Pulse, and Taoglas. 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 market. These include radio frequency engineering, mobile antenna design and manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. RF Solutions Segment PCTEL RF Solutions p rovides test tools Revenue growth is driven by the implementation and roll out of new wireless technology standards (i.e., 1G to 2G, 2G to 3G, 3G to 4G, 4G to 5G, etc.). PCTEL test equipment is sold directly to wireless carriers or to Competitors for PCTEL’s test tool products include OEMs such as Anritsu, Berkley Varitronics, Digital Receiver Technology, and Rohde and Schwarz. PCTEL maintains expertise in several technology areas in order to be competitive in the test tool market. These include radio frequency engineering, digital signal process (“DSP”) engineering, manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. Discontinued Operations During the quarter ended June 30, 2017, the Company approved a plan to sell its Network Engineering Services business (“Engineering Services”), which was part of the RF Solutions segment, and shift its focus towards research and development driven radio frequency (“RF”) products. On July 31, 2017, the Company sold substantially all of the Engineering Services assets of the Company’s Network Engineering Services business unit to Gabe’s Construction Co., Inc. (“Gabe’s”). The Company’s financial statements have been restated to reflect the historical results of Engineering Services as discontinued operations. The Company classified the Engineering Services assets as held for sale at December 31, 2016 and classified the results of its operations as discontinued operations for the three and nine months ended September 30, 2017 and 2016, respectively. See Note 5 in the notes to the financial statements for more information on discontinued operations. Basis of Consolidation The condensed consolidated balance sheet as of September 30, 2017 and the condensed consolidated statements of operations, statements of comprehensive income (loss), and cash flows for the three and nine months ended September 30, 2017 and 2016, 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, 2016. 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, 2016 (“the 2016 Form 10-K”). There were no changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2017. In addition, the Company reaffirms the use of estimates in the preparation of the financial statements as set forth in the 2016 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 2016 Form 10-K. The results of operations for the period ended September 30, 2017 may not be indicative of the results for the period ending December 31, 2017. Reclassifications Certain reclassifications of the prior year’s financial statement and footnote amounts have been made to conform to the current year’s presentation. Foreign Operations 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 (loss), 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 (losses) gains resulting from foreign currency transactions included in other income, net were $(45) and $11 for the three months ended September 30, 2017 and 2016, respectively. Net foreign exchange losses resulting from foreign currency transactions included in other income, net were $(98) and $(24) for the nine months ended September 30, 2017 and 2016, respectively. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates Step 2 as part of the goodwill impairment test, the result of which is that the impairment charge recognized would now be the amount by which the carrying value exceeds the reporting unit’s fair value. The loss to be recognized cannot exceed the amount of goodwill allocated to that reporting unit. The Company early adopted this guidance on January 1, 2017 because its annual impairment test is performed after January 1, 2017. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for us on January 1, 2018. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 ("ASU 2016-13") regarding ASC Topic 326, "Financial Instruments - Credit Losses," which modifies the measurement of expected credit losses of certain financial instruments. The amendments will be effective for us on January 1, 2020. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU No. 2016-09 affects all entities that issue share-based payment awards to their employees. ASU No. 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows, including recognizing all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement rather than in additional paid-in capital. The Company adopted this ASU in the first quarter 2017. Upon adoption, the Company recognized deferred tax assets of $0.6 million for all excess tax benefits that had not been previously recognized. The Company also elected to recognize forfeitures as incurred. The Company recorded an adjustment of $0.1 million to deferred tax assets for estimated forfeitures previously recorded. These adjustments were recorded through a cumulative-effect adjustment to retained earnings of approximately $0.5 million and adjustment to the valuation allowance for $0.2 million. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. This ASU also provides clarifications surrounding the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for us on January 1, 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. The Company adopted this guidance on January 1, 2017. The adoption of this ASU did not have a material impact to the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” which introduces a new 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. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. 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. This guidance will be effective for us on January 1, 2018. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-20, Technical Corrections and Improvements to Topic 606, ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, ASU 2016-10, Identifying Performance Obligations and Licensing and ASU 2016-08, Principal versus Agent Considerations. The Company commenced its assessment of ASU 2014-09 during the first quarter of 2017. The Company has developed its project plan to guide the implementation. This project plan includes analyzing the standard’s impact on the Company’s contract portfolio, comparing historical accounting policies and practices to the requirements of the new standard and identifying potential differences from applying the requirements of the new standard to its contracts. We made progress on this project plan including categorizing the revenue portfolio, surveying the Company's businesses and discussing the various revenue streams, and completing contract reviews. The Company will draft an updated accounting policy, evaluate new disclosure requirements and identify and implement appropriate changes to the business processes, systems and controls to support recognition and disclosure under the new standard. The Company expects to adopt this new standard using the modified retrospective method that will result in a cumulative effect adjustment as of the date of adoption. The Company is currently evaluating this guidance and the impact it will have on the consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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, which establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value 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. 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, 2017 | |
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, 2017 2016 2017 2016 Basic Earnings Per Share computation: Numerator: Net income (loss) from continuing operations $ 719 $ 89 $ 720 $ (8,229 ) Net income (loss) from discontinued operations $ 236 $ 86 $ (148 ) $ (4,125 ) Net income (loss) $ 955 $ 175 $ 572 $ (12,354 ) Denominator: Common shares outstanding 16,757 16,106 16,526 16,136 Earnings per common share - basic Net income (loss) from continuing operations $ 0.04 $ 0.01 $ 0.04 $ (0.51 ) Net income (loss) from discontinued operations $ 0.01 $ 0.01 $ (0.01 ) $ (0.26 ) Net income (loss) $ 0.06 $ 0.01 $ 0.03 $ (0.77 ) Diluted Earnings Per Share computation: Denominator: Common shares outstanding 16,757 16,106 16,526 16,136 Restricted shares subject to vesting 304 139 302 * Common stock option grants 4 0 2 * Total shares 17,065 16,245 16,830 16,136 Earnings per common share - diluted Net income (loss) from continuing operations $ 0.04 $ 0.01 $ 0.04 $ (0.51 ) Net income (loss) from discontinued operations $ 0.01 $ 0.01 $ (0.01 ) $ (0.26 ) Net income (loss) $ 0.06 $ 0.01 $ 0.03 $ (0.77 ) * As denoted by “*” in the table above, the weighted average common stock option grants and restricted shares of 140,000 for the nine months ended September 30, 2016, were excluded from the calculations of diluted net loss per share since their effects are anti-dilutive. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 Cash $ 4,822 $ 7,507 Cash equivalents 1,705 7,348 Short-term investments 29,979 18,456 $ 36,506 $ 33,311 Cash and Cash Equivalents At September 30, 2017 and December 31, 2016, cash and cash equivalents included bank balances and investments with original maturities less than 90 days. At September 30, 2017 and December 31, 2016, the Company’s cash equivalents were invested in highly liquid AAA rated 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 Company’s cash in U.S. banks is insured by the Federal Deposit Insurance Corporation up to the insurable limit of $250. At September 30, 2017, the Company had $4.8 million in cash and $1.7 million in cash equivalents, and at December 31, 2016, the Company had $7.5 million in cash and $7.3 million in cash equivalents. At September 30, 2017, the Company had in cash equivalents $0.5 million in AA rated or higher corporate bonds, $8 million in U.S. government agency bonds, and $0.5 million in money market funds. At December 31, 2016, the Company had in cash equivalents, $3.6 million in AA rated or higher corporate bonds, $2.8 million in U.S. government agency bonds, $0.8 million in certificates of deposit, and $0.1 million in money market funds. The Company had $1.4 million and $0.9 million of cash and cash equivalents in foreign bank accounts at September 30, 2017 and December 31, 2016, respectively. With respect to the cash in foreign bank accounts, the Company had cash of $1.2 million and $0.5 million in Chinese bank accounts at September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, the Company has no intention of repatriating the cash in its foreign bank accounts in China. 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. The Company ceased ongoing operations of its Israel subsidiary during the third quarter 2016. The Company expects to liquidate the subsidiary and repatriate its remaining cash in 2018. Investments At September 30, 2017 and December 31, 2016, 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, all classified as held-to-maturity. At September 30, 2017, the Company had invested $15.0 million in AA rated or higher corporate bonds, $6.2 million in certificates of deposit, $4.4 million in pre-refunded municipal bonds, and $4.4 million in U.S. government agency bonds. 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 bond investments are recorded at the purchase price and carried at amortized cost. The net unrealized losses were $15 and $9 at September 30, 2017 and December 31, 2016, respectively. Approximately 3% and 6% of the Company’s bond investments were protected by bond default insurance at September 30, 2017 and December 31, 2016, respectively. At December 31, 2016, the Company had invested $7.8 million in pre-refunded municipal bonds and taxable bond funds, $5.6 million in AA rated or higher corporate bond funds, $2.6 million in U.S. government agency bonds, and $2.5 million in certificates of deposit. 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 investments measured at fair value were as follows at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Corporate bonds $ 0 $ 499 $ 0 $ 499 $ 0 $ 3,608 $ 0 $ 3,608 US government agency bonds 0 752 0 752 0 2,846 0 2,846 Certificates of deposit 0 0 0 0 750 0 0 750 Money market funds 454 0 0 454 145 0 0 145 Investments: Corporate bonds 0 14,958 0 14,958 0 5,569 0 5,569 Pre-refunded municipal bonds 0 4,437 0 4,437 0 7,776 0 7,776 US government agency bonds 0 4,407 0 4,407 0 2,571 0 2,571 Certificates of deposit 6,162 0 0 6,162 2,530 0 0 2,530 Total $ 6,616 $ 25,053 $ 0 $ 31,669 $ 3,425 $ 22,370 $ 0 $ 25,795 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 5. Discontinued Operations During the quarter ended June 30, 2017, the Company approved a plan to sell its Network Engineering Services business (“Engineering Services”) and shift its focus towards research and development driven radio frequency (“RF”) products. On July 31, 2017, the Company sold its Network Engineering Services business to Gabe’s Construction Co., Inc. (“Gabe’s”). The Company filed a Form 8-K related to the disposition on August 4, 2017. The disposition met the requirements for classification as held for sale during the quarter ended June 30, 2017 because the disposition met all of the criteria outlined in the accounting guidance. Due to the significance of the results during the years ended December 31, 2016, 2015, and 2014, and because this disposition represents a strategic shift by the Company to focus on products, the disposition of Engineering Services also qualified as a discontinued operation for reporting purposes. As such, the Company reported the results of its Engineering Services business as discontinued operations beginning with the quarter ended June 30, 2017. In this quarterly report on Form 10-Q, the results for Engineering Services are reported as discontinued operations for the three and nine months ended September 30, 2017 and 2016, respectively. All of the revenues and cost of revenues in discontinued operations related to services provided by the Company. The Company sold the fixed assets and backlog of the Network Engineering Services business to Gabe’s for $1.45 million. At closing, the Company received $1.4 million, consisting of $1.3 million for the sale of the business and $0.1 million related to future services. A pre-tax book gain of $0.5 million is included in discontinued operations in the three and nine months ended September 30, 2017. The net pre-tax book gain includes proceeds from the sale of assets minus the book value of the assets disposed as well as severance and related payroll benefits for terminated employees. The book value of the assets was $0.6 million at the date of closing. On August 1, 2017, the Company terminated 25 employees and Gabe’s hired 11 of these employees. The severance and related benefits for the terminated employees were not subsequently hired by Gabe’s was $0.2 million. The income tax gain was $0.3 million, which included the tax value of the fixed assets and the remaining tax value for intangible assets no longer being used by the Company as of the sale to Gabe’s. The Company retained working capital of approximately $0.5 million, including accounts receivable, accounts payable, and accrued liabilities. Subsequent to the sale, the Company is providing transition services for billing and accounts receivable collection. This transition is expected to be complete by the end of the quarter ended December 31, 2017. There was no impairment loss recorded on the long-lived assets because the fair value of the assets less cost to sell was higher than the carrying value of the assets. At December 31, 2016, the assets held for sale consisted of the fixed assets of $0.6 million and prepaid expenses of the business of $0.1 million. For the balance sheet at December 31, 2016, the Company reclassified the fixed assets to noncurrent assets held for sale and the prepaid expenses to current assets held for sale. There were no liabilities classified as held for sale at December 31, 2016. investing cash flows included the proceeds from the sale to Gabe’s. The following table is a reconciliation of the assets classified as held for sale in the consolidated balance sheets. September 30, December 31, 2017 2016 Prepaid expenses and other assets 0 50 Current assets held for sale 0 50 Fixed assets 0 776 Non-current assets held for sale $ 0 $ 776 The details of the discontinued operations within the Statements of Operations are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenues $ 368 $ 3,795 $ 3,725 $ 8,621 Cost of revenues 415 3,113 3,974 8,044 Gross profit (47 ) 682 (249 ) 577 Operating expenses: Sales and marketing 51 280 400 855 General and administrative 4 43 31 126 Amortization of intangible assets 0 126 0 1,022 Impairment of intangible assets 0 0 0 4,724 Restructuring expenses 0 96 8 420 Total operating expenses 55 545 439 7,147 Operating (loss) income (102 ) 137 (688 ) (6,570 ) Gain on sale (503 ) 0 (503 ) 0 Net (loss) income before income taxes 401 137 (185 ) (6,570 ) Expense (benefit) for income taxes 165 51 (37 ) (2,445 ) Net (loss) income $ 236 $ 86 $ (148 ) $ (4,125 ) The details of the cash flows for discontinued operations are as follows: Nine Months Ended September 30 . 2017 2016 Cash flows from discontinued operations: Operating Activities: Net loss $ (148 ) $ (4,125 ) Gain on sale of assets (803 ) 0 Depreciation 197 411 Intangible amortization 0 1,022 Impairment of intangible assets 0 4,724 Deferred tax provision (37 ) (2,445 ) Stock compensation 49 118 Prepaid expenses and other assets 2 (26 ) Accrued liabilities 43 0 Net cash used in operating activities $ (697 ) $ (321 ) Investing Activities: Capital expenditures $ (16 ) $ (149 ) Proceeds from sale of assets 1,450 0 Net cash provided by (used) in investing activities $ 1,434 $ (149 ) The investing cash flows for the nine months ended September 30, 2017 includes the proceeds from the sale of assets to Gabe’s |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill There were no changes to goodwill during the nine months ended September 30, 2017. The $3.3 million of goodwill on the balance sheet was recorded in February 2015 as part of the purchase accounting for the Nexgen acquisition and was assigned to the RF Solutions segment. For evaluation purposes, this goodwill is part of the products reporting unit within the RF Solutions segment. There were no triggering events for the products reporting unit of the RF Solutions segment during the quarter ended September 30, 2017. The Company will continue to monitor goodwill for impairment going forward. 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 six years. In continuing operations, amortization expense was approximately $0.3 million for the three months ended September 30, 2017 and 2016, respectively and $0.9 million for the nine months ended September 30, 2017 and 2016, respectively. Amortization for technology assets is included in cost of revenues and amortization for all other intangible assets is included in operating expenses. For the three months ended September 30, 2017 and 2016, $0.2 million of the amortization expense was included in cost of revenues. For the nine months ended September 30, 2017 and 2016, $0.5 million of the amortization expense was included in cost of revenues. In discontinued operations, amortization expense was approximately $0.1 million and $1.0 million for the three and nine months ended September 30, 2016, respectively. There was no amortization expense in discontinued operations for the three and nine months ended September 30, 2017, respectively. The summary of other intangible assets, net is as follows: September 30, 2017 December 31, 2016 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Customer contracts and relationships $ 16,880 $ 16,880 $ 0 $ 17,380 $ 17,380 $ 0 Patents and technology 10,114 8,503 1,611 10,114 8,004 2,110 Trademarks and trade names 4,834 4,248 586 4,960 4,111 849 Other 2,506 2,300 206 2,743 2,427 316 $ 34,334 $ 31,931 $ 2,403 $ 35,197 $ 31,922 $ 3,275 The $0.9 million decrease in the net book value of intangible assets at September 30, 2017 compared to December 31, 2016 relates to amortization expense for the nine months ended September 30, 2017. During 2016, the Company recorded total impairment expense of $5.8 million related to customer relationships for the Engineering Services reporting unit within the RF Solutions segment, consisting of $4.7 million at September 30, 2016 and $1.1 million at December 31, 2016. The impairment expense is included within discontinued operations on the statement of earnings for the three and nine months ended September 30, 2016. During the quarter ended June 30, 2017, the Company decided to sell the Engineering Services reporting unit. For the three months ended June 30, 2016, the revenue and contribution margin of the Engineering Services reporting unit were below its forecasts. The results and revised forecast were reflective of a long-term slowdown in the Distributed Antenna System (“DAS”) market which is the primary market addressed by the Company’s services offering. The Company considered the changes to its forecast and the industry and market trends as a triggering event to assess the intangible assets of the Engineering Services reporting units for impairment. The Company reviewed the intangible assets for impairment by performing a test of recoverability. The cash flow forecast prepared by the Company included assumptions for revenues, gross margins, and operating expenses. The test of recoverability failed because the undiscounted cash flows were below the carrying value of the Engineering Services reporting unit. The Company calculated the fair value of the Engineering Services reporting unit with the assistance of a third-party valuation firm. For the three months ended December 31, 2016, the revenues and contribution margin for the Engineering Services reporting unit declined sequentially. The fourth quarter 2016 gross margin was negatively impacted by the lower revenue volume and by lower average margins on individual projects. At December 31, 2016, the backlog was lower than historical trends and there were no known large projects in the sales funnel. Based on these facts and an updated review of the market and industry trends, the Company lowered its profit forecast for 2017 compared to the profit forecast prepared for the 2017 operating plan and the Company lowered its long-term revenue and profit forecast. The Company determined that the revision to the forecast for Engineering Services reporting unit was a triggering event for its review of intangible assets for impairment. The Company reviewed its intangible assets for impairment by performing a test of recoverability. The cash flow forecast prepared by the Company included assumptions for revenues, gross margins, and operating expenses. The test of recoverability failed because the undiscounted cash flows were below the carrying value of the Engineering Services reporting unit. The Company calculated the fair value of the Engineering Services reporting unit based on the valuation assumptions from the analysis prepared at June 30, 2016. The impairment charge of $1.1 million represented the remaining value of the customer relationships as of December 31, 2016. The assigned lives and weighted average amortization periods by intangible asset category is summarized below: Intangible Assets Assigned Life Weighted Average Amortization Period Customer contracts and relationships 5 years 5.0 Patents and technology 5 to 6 years 5.1 Trademarks and trade names 5 to 6 years 5.6 Other 1 to 6 years 3.0 The Company’s scheduled amortization expense for 2017 and the next three years is as follows: Fiscal Year Amount 2017 $ 1,162 2018 $ 1,084 2019 $ 885 2020 $ 144 |
Balance Sheet Information
Balance Sheet Information | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Information | 7. 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 $0.3 million at September 30, 2017 and at December 31, 2016. 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, 2017 and December 31, 2016 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 $0.4 million at September 30, 2017 and December 31, 2016, 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. Reserves for excess inventory are calculated based on our estimate of inventory in excess of normal and planned usage. Obsolete reserves are based on our identification of inventory where carrying value is above net realizable value. The allowance for inventory losses was $3.2 million at September 30, 2017 and $2.9 million at December 31, 2016. Inventories consisted of the following: September 30, December 31, 2017 2016 Raw materials $ 7,053 $ 8,718 Work in process 1,324 1,486 Finished goods 4,451 4,238 Inventories, net $ 12,828 $ 14,442 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, 2017 2016 Building $ 6,351 $ 6,351 Computers and office equipment 11,615 10,683 Manufacturing and test equipment 12,653 11,638 Furniture and fixtures 1,257 1,225 Leasehold improvements 1,348 1,191 Motor vehicles 20 20 Total property and equipment 33,244 31,108 Less: Accumulated depreciation and amortization (22,787 ) (21,045 ) Land 1,770 1,770 Property and equipment, net $ 12,227 $ 11,833 Depreciation and amortization expense in continuing operations was approximately $0.7 million for the three months ended September 30, 2017 and 2016, respectively. Depreciation and amortization expense in continuing operations was approximately $1.9 million and $2.0 million for the nine months ended September 30, 2017 and 2016, 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, 2017 2016 Payroll, bonuses, and other employee benefits $ 2,298 $ 2,029 Inventory receipts 1,531 1,622 Paid time off 1,084 1,230 Warranties 418 394 Income and sales taxes 344 546 Professional fees and contractors 224 320 Deferred revenues 199 104 Employee stock purchase plan 128 300 Real estate taxes 122 152 Customer prepayments 45 164 Restructuring 24 126 Other 317 190 Total $ 6,734 $ 7,177 Long-term liabilities consisted of the following: September 30, December 31, 2017 2016 Long-term obligations under capital leases $ 196 $ 157 Deferred rent 107 156 Restructuring 84 70 Deferred revenues 43 8 Total $ 430 $ 391 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation The condensed consolidated statements of operations include $0.7 million and $2.5 million of stock compensation expense for the three and nine months ended September 30, 2017, respectively. The condensed consolidated statements of operations include $0.9 million and $3.2 million of stock compensation expense for the three and nine months ended September 30, 2016, respectively. Three Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Service-based restricted stock $ 612 $ 640 $ 2,291 $ 2,368 Employee stock purchase plan 50 40 138 125 Stock options (1 ) 34 29 145 Stock bonuses 0 264 0 431 Total continuing operations 661 978 2,458 3,069 Discontinued operations (0 ) (34 ) 49 118 Total $ 661 $ 944 $ 2,507 $ 3,187 The Company did not capitalize any stock compensation expense during the three and nine months ended September 30, 2017 or 2016. Effective January 1, 2017, the Company has elected to account for forfeitures as they occur. Prior to fiscal year 2017, the Company estimated the number of stock-based awards that were expected to vest, and only recognized compensation expense for such awards. Total stock-based compensation is reflected in the condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenues 67 78 200 219 Research and development 128 183 394 525 Sales and marketing 117 176 363 477 General and administrative 349 541 1,501 1,848 Total continuing operations 661 978 2,458 3,069 Discontinued operations 0 (34 ) 49 118 Total 661 944 2,507 3,187 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. During the first quarter 2017, the Company issued 285,000 service-based restricted stock awards to employees as long-term incentives that cliff vest in two years. The following table summarizes service-based restricted stock activity for the nine months ended September 30, 2017: Weighted Average Grant Date Shares Fair Value Unvested Restricted Stock Awards - December 31, 2016 1,120,960 $ 5.83 Shares awarded 337,786 6.13 Shares vested (474,895 ) 6.39 Shares cancelled (75,763 ) 6.06 Unvested Restricted Stock Awards - September 30, 2017 908,088 $ 5.63 The intrinsic value of service-based restricted shares that vested during the three months ended September 30, 2017, and 2016, was $1.3 million and $0.6 million, respectively. The intrinsic value of service-based restricted shares that vested during the nine months ended September 30, 2017, and 2016, was $2.5 million and $1.0 million, respectively. The Company accelerated the vesting of 7,387 restricted shares and cancelled 37,793 unvested restricted shares for terminated employees of the Engineering Services business. At September 30, 2017, total unrecognized compensation expense related to restricted stock was approximately $3.3 million to be recognized through 2020 over a weighted average period of 1.4 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, 2017: Weighted Average Grant Date Units Fair Value Unvested Restricted Stock Units - December 31, 2016 36,388 $ 5.57 Units awarded 5,000 5.97 Units vested (6,588 ) 6.44 Unvested Restricted Stock Units - September 30, 2017 34,800 $ 5.47 The intrinsic value of service-based restricted stock units that vested and were issued as shares during the nine months ended September 30, 2017 and 2016 was $40 and $7, respectively. No units vested during the three months ended September 30, 2017 or 2016. As of September 30, 2017, the unrecognized compensation expense related to the unvested portion of the Company’s restricted stock units was approximately $0.1 million, to be recognized through 2020 over a weighted average period of 0.9 years. Stock Options The Company grants stock options to purchase common stock as long-term incentives. The exercise price of the stock options is no less than the fair value of the Company’s stock on the grant date. The stock options have a seven-year life and generally vest over a period of four years, 25% after one year, and monthly thereafter. 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. A summary of the Company’s stock option activity for the nine months ended September 30, 2017 is as follows: Weighted Average Options Exercise Outstanding Price Outstanding at December 31, 2016 825,561 $ 7.30 Exercised (121,026 ) 7.11 Expired or Cancelled (83,182 ) 8.35 Forfeited (40,652 ) 6.70 Outstanding at September 30, 2017 580,701 $ 7.23 Exercisable at September 30, 2017 567,025 $ 7.27 There were no stock options granted during the nine months ended September 30, 2017. The range of exercise prices for options outstanding and exercisable at September 30, 2017, was $5.00 to $10.46. The following table summarizes information about stock options outstanding under all stock option plans: Options Outstanding Options Exercisable Weighted Average Weighted- Weighted Range of Number Contractual Life Average Number Average Exercise Prices ($) Outstanding (# Years) Exercise Price Exercisable Exercise Price $ 5.00 -- $ 6.00 13,900 5.81 $ 5.08 3,400 $ 5.17 6.01 -- 7.00 38,289 0.60 6.82 38,289 6.82 7.01 -- 8.00 493,708 2.50 7.20 491,960 7.20 8.01 -- 9.00 16,567 1.48 8.31 15,171 8.33 9.01 -- 10.00 16,837 0.81 9.62 16,805 9.62 10.01 -- 10.46 1,400 0.84 10.46 1,400 10.46 $ 5.00 -- $ 10.46 580,701 2.37 $ 7.23 567,025 $ 7.27 The weighted average contractual life and intrinsic value at September 30, 2017, was the following: Weighted Average Contractual Life (years) Intrinsic Value Options Outstanding 2.37 $ 17 Options Exercisable 2.29 $ 4 The intrinsic value is based on the share price of $6.30 at September 30, 2017. The fair value of each stock option outstanding 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. 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. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility and expected option life. The Company calculated the volatility based on a five-year historical period of the Company’s stock price. The expected life used for options granted was based on historical data of employee exercise performance. 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 volatility was based on a five-year historical period of the Company’s stock price. The Company records expense based on the grading vesting method. As of September 30, 2017, the unrecognized compensation expense related to the unvested portion of the Company’s stock options was approximately $43 to be recognized through 2020 over a weighted average period of 1.1 years. Performance-based Equity Awards Performance awards are restricted shares that vest if certain annual performance measures are met. The Company had 255,500 unvested performance awards at September 30, 2017. As of September 30, 2017, the Company does not expect any of these performance awards to vest. There were forfeitures of 41,000 awards during the nine months ended September 30, 2017 due to employee attrition. The following table summarizes the performance-based equity activity during the nine months ended September 30, 2017: Weighted Average Grant Date Units Fair Value Unvested Performance Units - December 31, 2016 296,500 $ 7.95 Units cancelled (41,000 ) 7.82 Unvested Performance Units - September 30, 2017 255,500 $ 7.97 Short-term incentive plan For the Company’s 2016 short-term incentive plan (“STIP”), executives were paid in shares of the Company’s stock. During the first quarter of 2017, the Company issued 112,916 shares with a fair value of $0.6 million earned under the 2016 STIP. The Company recorded the expense during the year ended December 31, 2016. No shares were issued for the STIP during the second or third quarter 2017. Because all bonuses earned for the 2017 STIP will be paid in cash, there was no stock compensation expense recorded related to the STIP during the nine months ended September 30, 2017. The accrual for the 2017 STIP and the cash portion of the 2016 STIP is included in the accrual for payroll, bonuses, and other employee benefits at September 30, 2017 and December 31, 2016, respectively in the liabilities section of Note 7. The Company expects to pay the 2017 STIP in March 2018. 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 $0.3 million from the issuance of 67,383 shares under the ESPP in August 2017 and received proceeds of $0.3 million from the issuance of 67,533 shares under the ESPP in August 2016. The Company received proceeds of $0.3 million from the issuance of 72,218 shares under the ESPP in February 2017 and received proceeds of $0.4 million from the issuance of 78,415 shares under the ESPP in February 2016. 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, 2017 2016 Dividend yield 3.5 % 4.2 % Risk-free interest rate 1.1 % 0.6 % Expected volatility 34 % 34 % 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. 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. For withholding taxes related to stock awards, the Company paid $1.2 million and $0.4 million during the nine months ended September 30, 2017 and 2016, respectively. Stock Repurchases No shares have been repurchased during 2017. The Company repurchased 783,212 shares at an average price of $5.23 during the first quarter 2016. There are no current programs to repurchase shares. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 9. Benefit Plans Employee Benefit Plans The Company’s 401(k) plan covers all U.S. employees beginning the first day of the month following the first month of 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 matches employee contributions up to 4% and may also 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 September 30, September 30, 2017 2016 2017 2016 PCTEL, Inc. 401(k) Profit sharing Plan - US employees $ 173 $ 168 $ 533 $ 509 Defined contribution plans - foreign employees 117 89 325 285 Total $ 290 $ 257 $ 858 $ 794 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Restructuring The restructuring liability at September 30, 2017 and December 31, 2016 is primarily related to the Company’s exit from its Colorado office during the first quarter 2016. The restructuring liability includes the remaining obligations under the Colorado lease, net of proceeds for a sublease. The Company signed a sublease for the office space in the second quarter 2017. The Company exited from its Colorado office in order to consolidate facility space for its Engineering Services reporting unit. The restructuring expense related to the Colorado lease is included in discontinued operations in the statements of earnings for the nine months ended September 30, 2017 and 2016, respectively. The restructuring liability was not held for sale at September 30, 2017. Of the $108 restructuring liability at September 30, 2017, $24 was included in accrued liabilities and $84 was included in long-term liabilities in the consolidated balance sheets. Of the $0.2 million restructuring liability at December 31, 2016, $0.1 million was included in accrued liabilities and $0.1 million was included in long-term liabilities in the consolidated balance sheets. The following table summarizes the restructuring activity during the nine months ended September 30, 2017 and the status of the reserves at September 30, 2017. December 31, 2016 Expenses/ Adjustments Cash Payments/ Adjustments September 30, 2017 Severance and related employee benefits $ 6 $ (1 ) $ (5 ) $ 0 Lease terminations 190 9 (91 ) 108 Total $ 196 $ 8 $ (96 ) $ 108 . Operating Leases The Company has operating leases for facilities through 2024 and office equipment through 2021. The future minimum rental payments under these leases at September 30, 2017, are as follows: Year Amount 2017 $ 276 2018 1,085 2019 1,056 2020 470 Thereafter 456 Future minimum lease payments $ 3,343 The rent expense under leases was approximately $0.2 million for the three months ended September 30, 2017, and 2016, respectively. The rent expense under leases was approximately $0.7 million for the nine months ended September 30, 2017, and 2016, respectively. Operating Leases - Continuing Operations In June 2016, the Company entered into a new four-year lease for its Beijing Design Center and in January 2017 the Company signed a new lease for additional space at the same location. With the expansion, the Company has 11,270 square feet in its Beijing Design Center. The total lease obligation pursuant to agreement for the expansion was $0.4 million. The Beijing Design Center has an engineering department for antenna development as well as sales and marketing for the China market. In April 2017, the Company renewed the first-floor space of Tianjin facility with 22,120 square feet of leased space. The total lease obligation as of September 30, 2017 pursuant to the agreement was $35 and expires on April 11, 2018. In August 2017, the Company entered into a new seven-year lease for 5,977 square feet of office space in Akron, Ohio for antenna product development. The total lease obligation pursuant to the agreement was $0.7 million with a scheduled commencement date of January 1, 2018. Operating Leases- Discontinued Operations During the first quarter 2016, the Company exited from its Colorado office in order to consolidate facility space related to its Engineering Services reporting unit. In May 2017, the Company signed a sublease with a term through the lease termination date. The lease expires on October 31, 2020 and the Company’s remaining lease obligation to the landlord as of September 30, 2017 was $0.4 million. See discussion related to the Colorado offices in the restructuring section of this footnote. As part of the sale of the Engineering Services business to Gabe’s on July 31, 2017, Gabe’s assumed the lease of the Company’s office space in Melbourne, Florida through the end of the lease period. The lease expires on December 31, 2018 and the remaining lease obligation as of the transaction date with Gabe’s was $78. Capital Leases The Company has capital leases for office and manufacturing equipment. The net book values for assets under capital leases were as follows: September 30, 2017 December 31, 2016 Cost $ 453 $ 324 Accumulated Depreciation (172 ) (105 ) Net Book Value $ 281 $ 219 The following table presents future minimum lease payments under capital leases together with the present value of the net minimum lease payments due in each year: Year Amount 2017 $ 26 2018 104 2019 87 2020 47 Thereafter 47 Total minimum payments required: 311 Less amount representing interest: 21 Present value of net minimum lease payments: $ 290 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 product returns was $0.2 million at September 30, 2017 and December 31, 2016, respectively, and is included within accounts receivable on the accompanying condensed consolidated balance sheet. 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 at September 30, 2017 and December 31, 2016, respectively, and is included in other accrued liabilities in the accompanying condensed consolidated balance sheets. Nine Months Ended September 30, 2017 2016 Beginning balance $ 394 $ 348 Provisions for warranties 99 57 Consumption of reserves (75 ) (86 ) Ending balance $ 418 $ 319 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company recorded an income tax benefit of $0.1 million in continuing operations for the nine months ended September 30, 2017 and income tax expense of $6.6 million in continuing operations for the nine months ended September 30, 2016. The benefit recorded for the nine months ended September 30, 2017 differed from the statutory rate of 34% primarily due to the combination of U.S. pretax losses and foreign pretax profits taxed at lower rates. The net tax benefit for the nine months ended September 30, 2017 included income tax expense of $0.2 million related to tax deficiencies with restricted stock and stock options in accordance with recently adopted accounting standards and $0.1 million income tax benefit related to previously unrecognized tax benefits for research credits. The income tax expense for the nine months ended September 30, 2016 included a $7.6 million adjustment to the valuation allowance for deferred tax assets. The Company had deferred tax assets net of deferred tax liabilities of $5.3 million and $4.5 million at September 30, 2017 and December 31, 2016, respectively, virtually all of which are related to the United States tax jurisdiction. On January 1, 2017 in accordance with the new accounting standards for stock compensation, the Company recorded an increase of $0.7 million to deferred tax assets to account for tax benefits related to stock compensation previously unrecognized and for forfeitures previously recorded for restricted stock and stock options with a corresponding increase of $0.2 million to its valuation allowance. The adjustment to the valuation allowance was based on the same assumptions used to adjust the valuation allowance in 2016 which are still applicable for the three months ended September 30, 2017. The Company’s valuation allowance against its deferred tax assets was $13.5 million at September 30, 2017 and $13.3 million at December 31, 2016. The valuation allowance at September 30, 2017 and December 31, 2016 is primarily because the Company does not believe it will generate sufficient US taxable income to realize a significant portion of its deferred tax assets. 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 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 27.0 year average period over which future income can be utilized to realize the deferred tax assets. The sale of the Company’s Engineering Services business did not have a significant impact on the Company’s long-term projections for U.S. taxable income. Therefore, there was no adjustment to the valuation allowance related to discontinued operations. During 2016, the Company adjusted the valuation allowance by $12.6 million as income tax expense. During the second quarter 2016, there were two significant changes in the deferred tax asset recoverability evidence pattern. The cumulative three-year US book income turned to a loss. In addition, the Company experienced a significant shift in its Connected Solutions segment revenue to products that are designed, manufactured and sold through the Company’s China subsidiary directly into China. This will cause a significant shift going forward in the Company’s tax profitability from the United States to China. The Company believes this is the beginning of a long-term trend. The Company completed a recapitalization of its China subsidiary to accommodate the initial working capital growth required to support the shift and continues to anticipate permanently reinvesting future earnings and profits from its China subsidiary in China to support its future working capital needs there. The Company re-forecasted its long term domestic profitability in light of the shift in business to China that is occurring. The Company recorded an adjustment to the valuation allowance of $7.6 million at September 30, 2016. In the fourth quarter 2016, the Company updated its projections for its analysis to determine the valuation allowance. The Company reduced its domestic profit forecast because it lowered its long-term forecast for its services business and increased the contribution of the profits from its China subsidiary. The Company also updated its estimated tax deductions. Based on assigned probabilities to each scenario, the Company recorded an additional adjustment to the valuation allowance of $5.0 million at December 31, 2016. The analysis that the Company prepared to determine the valuation allowance required significant judgment and assumptions regarding future market conditions as well as forecasts for profits, taxable income, and taxable income by jurisdiction. The Company used a series of projections bound on the low side by what it would take for none of its deferred tax assets to be realized and on the high side by what it would take for all of the deferred tax assets to be realized. The Company assigned probabilities to each scenario to calculate a weighted average valuation allowance. Due to the sensitivity of the analysis, changes to the assumptions in subsequent periods could have a material effect on the valuation allowance. The Company’s gross unrecognized tax benefit was $0.7 million at September 30, 2017 and $0.9 million at December 31, 2016. The Company files a consolidated federal income tax return, income tax returns with various states, and foreign income tax returns in various foreign jurisdictions. For U.S. federal income tax purposes 2015 and subsequent periods are subject to examination by the IRS. For state income tax purposes, 2012 and subsequent periods are generally subject to examination by various state taxing authorities. |
Segment, Customer and Geographi
Segment, Customer and Geographic Information - Continuing Operations | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment, Customer and Geographic Information - Continuing Operations | 12. Segment, Customer and Geographic Information – Continuing Operations 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 other test tools. 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 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 operating profits 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 in continuing operations for the three months ended September 30, 2017 and 2016, respectively, and the segment balance sheet information as of September 30, 2017 and December 31, 2016: Three Months Ended September 30, 2017 Connected Solutions RF Solutions Corporate Total REVENUES $ 17,988 $ 5,739 $ (62 ) $ 23,665 GROSS PROFIT 6,148 4,006 (4 ) 10,150 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 2,684 $ 883 $ (2,674 ) $ 893 Depreciation $ 437 $ 140 $ 74 $ 651 Intangible amortization $ 39 $ 252 $ 0 $ 291 Capital expenditures $ 437 $ 103 $ 13 $ 553 Nine Months Ended September 30, 2017 Connected Solutions RF Solutions Corporate Total REVENUES $ 52,125 $ 16,157 $ (146 ) $ 68,136 GROSS PROFIT $ 17,283 $ 11,275 $ 8 $ 28,566 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 6,775 $ 2,319 $ (8,516 ) $ 578 Depreciation $ 1,288 $ 419 $ 206 $ 1,913 Intangible amortization $ 117 $ 755 $ 0 $ 872 Capital expenditures $ 1,294 $ 388 $ 415 $ 2,097 As of September 30, 2017 Connected Solutions RF Solutions Corporate Total Accounts receivable $ 13,243 $ 5,287 $ 0 $ 18,530 Inventories $ 11,267 $ 1,561 $ 0 $ 12,828 Current assets held for sale $ 0 $ 0 $ 0 $ 0 Long-lived assets: Property and equipment, net $ 9,905 $ 1,395 $ 927 $ 12,227 Goodwill $ 0 $ 3,332 $ 0 $ 3,332 Intangible assets, net $ 116 $ 2,287 $ 0 $ 2,403 Deferred tax assets, net $ 0 $ 0 $ 5,344 $ 5,344 Other noncurrent assets $ 0 $ 0 $ 69 $ 69 Three Months Ended September 30, 2016 Connected Solutions RF Solutions Corporate Total REVENUES $ 17,136 $ 3,814 $ (58 ) $ 20,892 GROSS PROFIT $ 5,771 $ 2,497 $ (13 ) $ 8,255 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 2,530 $ (467 ) $ (2,363 ) $ (300 ) Depreciation $ 484 $ 190 $ 0 $ 674 Intangible amortization $ 39 $ 252 $ 0 $ 291 Capital expenditures $ 284 $ 16 $ (18 ) $ 282 Nine Months Ended September 30, 2016 Connected Solutions RF Solutions Corporate Total REVENUES $ 47,616 $ 13,931 $ (164 ) $ 61,383 GROSS PROFIT $ 15,035 $ 9,620 $ (7 ) $ 24,648 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 5,625 $ 344 $ (7,644 ) $ (1,675 ) Depreciation $ 1,417 $ 577 $ 0 $ 1,994 Intangible amortization $ 153 $ 755 $ 0 $ 908 Capital expenditures $ 1,127 $ 90 $ 333 $ 1,550 As of December 31, 2016 Connected Solutions RF Solutions Corporate Total Accounts receivable $ 12,731 $ 6,370 $ 0 $ 19,101 Inventories $ 12,301 $ 2,141 $ 0 $ 14,442 Current assets held for sale $ 0 $ 50 $ 0 $ 50 Long-lived assets: Property and equipment, net $ 9,756 $ 1,346 $ 731 $ 11,833 Goodwill $ 0 $ 3,332 $ 0 $ 3,332 Intangible assets, net $ 233 $ 3,042 $ 0 $ 3,275 Deferred tax assets, net $ 0 $ 0 $ 4,512 $ 4,512 Other noncurrent assets $ 0 $ 0 $ 36 $ 36 Non-current assets held for sale $ 0 $ 776 $ 0 $ 776 All revenues and cost of revenues in continuing operations for the three and nine months ended September 30, 2017 and 2016, respectively relate to products. All the revenues and cost of revenues included in discontinued operations relate to services. See Note 5 for the revenues and cost of revenues in discontinued operations for three and nine months ended September 30, 2017 and 2016, respectively. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | 13. Concentration of Credit Risk Revenue by Geography The Company’s revenue by geographic location, as a percent of total revenues, is as follows: Three Months Ended Nine Months Ended September 30, September 30, Region 2017 2016 2017 2016 Asia Pacific 17% 23% 19% 20% Europe, Middle East, & Africa 9% 8% 8% 9% Other Americas 8% 7% 6% 6% Total Foreign sales 34% 38% 33% 35% Concentration of Revenues and Accounts Receivable The following tables represents the customer that accounted for 10% or more of revenues during the three and nine months ended September 30, 2017 and 2016 and customers that accounted for 10% or more of total trade accounts receivable at September 30, 2017 and December 31, 2016. Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Customer A 10% 11% 10% 10% September 30, December 31, 2017 2016 Customer A 7% 17% Customer B 14% 7% |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
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. There were no subsequent events or transactions that required recognition or disclosure in the consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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 erformance C ritical TEL ecom technology solutions to the wireless industry. PCTEL is a leading global supplier of antennas and wireless network testing solutions. PCTEL’s Connected Solutions segment designs and manufactures precision antennas. PCTEL antennas are deployed in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in network equipment and devices for the Industrial Internet of Things (“IIoT”). PCTEL’s RF Solutions segment p rovides test tools that improve the performance of wireless networks globally. Mobile operators, neutral hosts, and equipment manufacturers rely on PCTEL to analyze, design, and optimize next generation wireless networks. |
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 operating profits and identified assets for the Connected Solutions and RF Solutions segments for resource allocations. 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 PCTEL Connected Solutions designs and manufactures precision antennas. Our precision antennas are deployed in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things (IIoT). We offer in-house design, testing, radio integration, and manufacturing capabilities for our antenna customers. Revenue growth in these markets is driven by the increased use of wireless communications and increased complexity trends occurring in these markets. PCTEL antennas are primarily sold to original equipment manufacturer (“OEM”) providers where they are designed into the customer’s solution. Competition in the antenna markets addressed by Connected Solutions is fragmented. Competitors include Airgain, Amphenol, Laird, Pulse, and Taoglas. 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 market. These include radio frequency engineering, mobile antenna design and manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. RF Solutions Segment PCTEL RF Solutions p rovides test tools Revenue growth is driven by the implementation and roll out of new wireless technology standards (i.e., 1G to 2G, 2G to 3G, 3G to 4G, 4G to 5G, etc.). PCTEL test equipment is sold directly to wireless carriers or to Competitors for PCTEL’s test tool products include OEMs such as Anritsu, Berkley Varitronics, Digital Receiver Technology, and Rohde and Schwarz. PCTEL maintains expertise in several technology areas in order to be competitive in the test tool market. These include radio frequency engineering, digital signal process (“DSP”) engineering, manufacturing, mechanical engineering, product quality and testing, and wireless network engineering. |
Discontinued Operations | Discontinued Operations During the quarter ended June 30, 2017, the Company approved a plan to sell its Network Engineering Services business (“Engineering Services”), which was part of the RF Solutions segment, and shift its focus towards research and development driven radio frequency (“RF”) products. On July 31, 2017, the Company sold substantially all of the Engineering Services assets of the Company’s Network Engineering Services business unit to Gabe’s Construction Co., Inc. (“Gabe’s”). The Company’s financial statements have been restated to reflect the historical results of Engineering Services as discontinued operations. The Company classified the Engineering Services assets as held for sale at December 31, 2016 and classified the results of its operations as discontinued operations for the three and nine months ended September 30, 2017 and 2016, respectively. See Note 5 in the notes to the financial statements for more information on discontinued operations. |
Basis of Consolidation | Basis of Consolidation The condensed consolidated balance sheet as of September 30, 2017 and the condensed consolidated statements of operations, statements of comprehensive income (loss), and cash flows for the three and nine months ended September 30, 2017 and 2016, 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, 2016. 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, 2016 (“the 2016 Form 10-K”). There were no changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2017. In addition, the Company reaffirms the use of estimates in the preparation of the financial statements as set forth in the 2016 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 2016 Form 10-K. The results of operations for the period ended September 30, 2017 may not be indicative of the results for the period ending December 31, 2017. |
Reclassifications | Reclassifications Certain reclassifications of the prior year’s financial statement and footnote amounts have been made to conform to the current year’s presentation. |
Foreign Operations | Foreign Operations 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 (loss), 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 (losses) gains resulting from foreign currency transactions included in other income, net were $(45) and $11 for the three months ended September 30, 2017 and 2016, respectively. Net foreign exchange losses resulting from foreign currency transactions included in other income, net were $(98) and $(24) for the nine months ended September 30, 2017 and 2016, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates Step 2 as part of the goodwill impairment test, the result of which is that the impairment charge recognized would now be the amount by which the carrying value exceeds the reporting unit’s fair value. The loss to be recognized cannot exceed the amount of goodwill allocated to that reporting unit. The Company early adopted this guidance on January 1, 2017 because its annual impairment test is performed after January 1, 2017. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for us on January 1, 2018. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 ("ASU 2016-13") regarding ASC Topic 326, "Financial Instruments - Credit Losses," which modifies the measurement of expected credit losses of certain financial instruments. The amendments will be effective for us on January 1, 2020. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU No. 2016-09 affects all entities that issue share-based payment awards to their employees. ASU No. 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows, including recognizing all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement rather than in additional paid-in capital. The Company adopted this ASU in the first quarter 2017. Upon adoption, the Company recognized deferred tax assets of $0.6 million for all excess tax benefits that had not been previously recognized. The Company also elected to recognize forfeitures as incurred. The Company recorded an adjustment of $0.1 million to deferred tax assets for estimated forfeitures previously recorded. These adjustments were recorded through a cumulative-effect adjustment to retained earnings of approximately $0.5 million and adjustment to the valuation allowance for $0.2 million. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. This ASU also provides clarifications surrounding the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for us on January 1, 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. The Company adopted this guidance on January 1, 2017. The adoption of this ASU did not have a material impact to the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” which introduces a new 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. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. 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. This guidance will be effective for us on January 1, 2018. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-20, Technical Corrections and Improvements to Topic 606, ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, ASU 2016-10, Identifying Performance Obligations and Licensing and ASU 2016-08, Principal versus Agent Considerations. The Company commenced its assessment of ASU 2014-09 during the first quarter of 2017. The Company has developed its project plan to guide the implementation. This project plan includes analyzing the standard’s impact on the Company’s contract portfolio, comparing historical accounting policies and practices to the requirements of the new standard and identifying potential differences from applying the requirements of the new standard to its contracts. We made progress on this project plan including categorizing the revenue portfolio, surveying the Company's businesses and discussing the various revenue streams, and completing contract reviews. The Company will draft an updated accounting policy, evaluate new disclosure requirements and identify and implement appropriate changes to the business processes, systems and controls to support recognition and disclosure under the new standard. The Company expects to adopt this new standard using the modified retrospective method that will result in a cumulative effect adjustment as of the date of adoption. The Company is currently evaluating this guidance and the impact it will have on the consolidated financial statements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2017 2016 Basic Earnings Per Share computation: Numerator: Net income (loss) from continuing operations $ 719 $ 89 $ 720 $ (8,229 ) Net income (loss) from discontinued operations $ 236 $ 86 $ (148 ) $ (4,125 ) Net income (loss) $ 955 $ 175 $ 572 $ (12,354 ) Denominator: Common shares outstanding 16,757 16,106 16,526 16,136 Earnings per common share - basic Net income (loss) from continuing operations $ 0.04 $ 0.01 $ 0.04 $ (0.51 ) Net income (loss) from discontinued operations $ 0.01 $ 0.01 $ (0.01 ) $ (0.26 ) Net income (loss) $ 0.06 $ 0.01 $ 0.03 $ (0.77 ) Diluted Earnings Per Share computation: Denominator: Common shares outstanding 16,757 16,106 16,526 16,136 Restricted shares subject to vesting 304 139 302 * Common stock option grants 4 0 2 * Total shares 17,065 16,245 16,830 16,136 Earnings per common share - diluted Net income (loss) from continuing operations $ 0.04 $ 0.01 $ 0.04 $ (0.51 ) Net income (loss) from discontinued operations $ 0.01 $ 0.01 $ (0.01 ) $ (0.26 ) Net income (loss) $ 0.06 $ 0.01 $ 0.03 $ (0.77 ) * As denoted by “*” in the table above, the weighted average common stock option grants and restricted shares of 140,000 for the nine months ended September 30, 2016, were excluded from the calculations of diluted net loss per share since their effects are anti-dilutive. |
Cash, Cash Equivalents and In24
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 Cash $ 4,822 $ 7,507 Cash equivalents 1,705 7,348 Short-term investments 29,979 18,456 $ 36,506 $ 33,311 |
Cash Equivalents and Investments Measured at Fair Value | Cash equivalents and investments measured at fair value were as follows at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Corporate bonds $ 0 $ 499 $ 0 $ 499 $ 0 $ 3,608 $ 0 $ 3,608 US government agency bonds 0 752 0 752 0 2,846 0 2,846 Certificates of deposit 0 0 0 0 750 0 0 750 Money market funds 454 0 0 454 145 0 0 145 Investments: Corporate bonds 0 14,958 0 14,958 0 5,569 0 5,569 Pre-refunded municipal bonds 0 4,437 0 4,437 0 7,776 0 7,776 US government agency bonds 0 4,407 0 4,407 0 2,571 0 2,571 Certificates of deposit 6,162 0 0 6,162 2,530 0 0 2,530 Total $ 6,616 $ 25,053 $ 0 $ 31,669 $ 3,425 $ 22,370 $ 0 $ 25,795 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Reconciliation of Assets Classified as Held for Sale in Consolidated Balance Sheets | The following table is a reconciliation of the assets classified as held for sale in the consolidated balance sheets. September 30, December 31, 2017 2016 Prepaid expenses and other assets 0 50 Current assets held for sale 0 50 Fixed assets 0 776 Non-current assets held for sale $ 0 $ 776 |
Schedule of Discontinue Operations within Statement of Operations | The details of the discontinued operations within the Statements of Operations are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenues $ 368 $ 3,795 $ 3,725 $ 8,621 Cost of revenues 415 3,113 3,974 8,044 Gross profit (47 ) 682 (249 ) 577 Operating expenses: Sales and marketing 51 280 400 855 General and administrative 4 43 31 126 Amortization of intangible assets 0 126 0 1,022 Impairment of intangible assets 0 0 0 4,724 Restructuring expenses 0 96 8 420 Total operating expenses 55 545 439 7,147 Operating (loss) income (102 ) 137 (688 ) (6,570 ) Gain on sale (503 ) 0 (503 ) 0 Net (loss) income before income taxes 401 137 (185 ) (6,570 ) Expense (benefit) for income taxes 165 51 (37 ) (2,445 ) Net (loss) income $ 236 $ 86 $ (148 ) $ (4,125 ) |
Schedule of Cash Flows for Discontinue Operations | The details of the cash flows for discontinued operations are as follows: Nine Months Ended September 30 . 2017 2016 Cash flows from discontinued operations: Operating Activities: Net loss $ (148 ) $ (4,125 ) Gain on sale of assets (803 ) 0 Depreciation 197 411 Intangible amortization 0 1,022 Impairment of intangible assets 0 4,724 Deferred tax provision (37 ) (2,445 ) Stock compensation 49 118 Prepaid expenses and other assets 2 (26 ) Accrued liabilities 43 0 Net cash used in operating activities $ (697 ) $ (321 ) Investing Activities: Capital expenditures $ (16 ) $ (149 ) Proceeds from sale of assets 1,450 0 Net cash provided by (used) in investing activities $ 1,434 $ (149 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | The summary of other intangible assets, net is as follows: September 30, 2017 December 31, 2016 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Customer contracts and relationships $ 16,880 $ 16,880 $ 0 $ 17,380 $ 17,380 $ 0 Patents and technology 10,114 8,503 1,611 10,114 8,004 2,110 Trademarks and trade names 4,834 4,248 586 4,960 4,111 849 Other 2,506 2,300 206 2,743 2,427 316 $ 34,334 $ 31,931 $ 2,403 $ 35,197 $ 31,922 $ 3,275 |
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 Amortization Period Customer contracts and relationships 5 years 5.0 Patents and technology 5 to 6 years 5.1 Trademarks and trade names 5 to 6 years 5.6 Other 1 to 6 years 3.0 |
Schedule of Expected Amortization Expense | The Company’s scheduled amortization expense for 2017 and the next three years is as follows: Fiscal Year Amount 2017 $ 1,162 2018 $ 1,084 2019 $ 885 2020 $ 144 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Inventories | Inventories consisted of the following: September 30, December 31, 2017 2016 Raw materials $ 7,053 $ 8,718 Work in process 1,324 1,486 Finished goods 4,451 4,238 Inventories, net $ 12,828 $ 14,442 |
Summary of Property and Equipment | Property and equipment consisted of the following: September 30, December 31, 2017 2016 Building $ 6,351 $ 6,351 Computers and office equipment 11,615 10,683 Manufacturing and test equipment 12,653 11,638 Furniture and fixtures 1,257 1,225 Leasehold improvements 1,348 1,191 Motor vehicles 20 20 Total property and equipment 33,244 31,108 Less: Accumulated depreciation and amortization (22,787 ) (21,045 ) Land 1,770 1,770 Property and equipment, net $ 12,227 $ 11,833 |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following: September 30, December 31, 2017 2016 Payroll, bonuses, and other employee benefits $ 2,298 $ 2,029 Inventory receipts 1,531 1,622 Paid time off 1,084 1,230 Warranties 418 394 Income and sales taxes 344 546 Professional fees and contractors 224 320 Deferred revenues 199 104 Employee stock purchase plan 128 300 Real estate taxes 122 152 Customer prepayments 45 164 Restructuring 24 126 Other 317 190 Total $ 6,734 $ 7,177 |
Summary of Long-term Liabilities | Long-term liabilities consisted of the following: September 30, December 31, 2017 2016 Long-term obligations under capital leases $ 196 $ 157 Deferred rent 107 156 Restructuring 84 70 Deferred revenues 43 8 Total $ 430 $ 391 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Stock-Based Compensation Expense by Type | Three Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Service-based restricted stock $ 612 $ 640 $ 2,291 $ 2,368 Employee stock purchase plan 50 40 138 125 Stock options (1 ) 34 29 145 Stock bonuses 0 264 0 431 Total continuing operations 661 978 2,458 3,069 Discontinued operations (0 ) (34 ) 49 118 Total $ 661 $ 944 $ 2,507 $ 3,187 |
Stock-Based Compensation | The Company did not capitalize any stock compensation expense during the three and nine months ended September 30, 2017 or 2016. Effective January 1, 2017, the Company has elected to account for forfeitures as they occur. Prior to fiscal year 2017, the Company estimated the number of stock-based awards that were expected to vest, and only recognized compensation expense for such awards. Total stock-based compensation is reflected in the condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenues 67 78 200 219 Research and development 128 183 394 525 Sales and marketing 117 176 363 477 General and administrative 349 541 1,501 1,848 Total continuing operations 661 978 2,458 3,069 Discontinued operations 0 (34 ) 49 118 Total 661 944 2,507 3,187 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the nine months ended September 30, 2017 is as follows: Weighted Average Options Exercise Outstanding Price Outstanding at December 31, 2016 825,561 $ 7.30 Exercised (121,026 ) 7.11 Expired or Cancelled (83,182 ) 8.35 Forfeited (40,652 ) 6.70 Outstanding at September 30, 2017 580,701 $ 7.23 Exercisable at September 30, 2017 567,025 $ 7.27 |
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 Weighted Average Weighted- Weighted Range of Number Contractual Life Average Number Average Exercise Prices ($) Outstanding (# Years) Exercise Price Exercisable Exercise Price $ 5.00 -- $ 6.00 13,900 5.81 $ 5.08 3,400 $ 5.17 6.01 -- 7.00 38,289 0.60 6.82 38,289 6.82 7.01 -- 8.00 493,708 2.50 7.20 491,960 7.20 8.01 -- 9.00 16,567 1.48 8.31 15,171 8.33 9.01 -- 10.00 16,837 0.81 9.62 16,805 9.62 10.01 -- 10.46 1,400 0.84 10.46 1,400 10.46 $ 5.00 -- $ 10.46 580,701 2.37 $ 7.23 567,025 $ 7.27 |
Weighted Average Contractual Life and Intrinsic Value of the Options Outstanding | The weighted average contractual life and intrinsic value at September 30, 2017, was the following: Weighted Average Contractual Life (years) Intrinsic Value Options Outstanding 2.37 $ 17 Options Exercisable 2.29 $ 4 |
Summary of Performance Share Equity Activity | The following table summarizes the performance-based equity activity during the nine months ended September 30, 2017: Weighted Average Grant Date Units Fair Value Unvested Performance Units - December 31, 2016 296,500 $ 7.95 Units cancelled (41,000 ) 7.82 Unvested Performance Units - September 30, 2017 255,500 $ 7.97 |
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, 2017 2016 Dividend yield 3.5 % 4.2 % Risk-free interest rate 1.1 % 0.6 % Expected volatility 34 % 34 % Expected life (in years) 0.5 0.5 |
Restricted Stock [Member] | |
Summary of Service-based Restricted Stock Activity | The following table summarizes service-based restricted stock activity for the nine months ended September 30, 2017: Weighted Average Grant Date Shares Fair Value Unvested Restricted Stock Awards - December 31, 2016 1,120,960 $ 5.83 Shares awarded 337,786 6.13 Shares vested (474,895 ) 6.39 Shares cancelled (75,763 ) 6.06 Unvested Restricted Stock Awards - September 30, 2017 908,088 $ 5.63 |
Restricted Stock Units [Member] | |
Summary of Service-based Restricted Stock Activity | The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2017: Weighted Average Grant Date Units Fair Value Unvested Restricted Stock Units - December 31, 2016 36,388 $ 5.57 Units awarded 5,000 5.97 Units vested (6,588 ) 6.44 Unvested Restricted Stock Units - September 30, 2017 34,800 $ 5.47 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, September 30, 2017 2016 2017 2016 PCTEL, Inc. 401(k) Profit sharing Plan - US employees $ 173 $ 168 $ 533 $ 509 Defined contribution plans - foreign employees 117 89 325 285 Total $ 290 $ 257 $ 858 $ 794 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Restructuring Activity | The following table summarizes the restructuring activity during the nine months ended September 30, 2017 and the status of the reserves at September 30, 2017. December 31, 2016 Expenses/ Adjustments Cash Payments/ Adjustments September 30, 2017 Severance and related employee benefits $ 6 $ (1 ) $ (5 ) $ 0 Lease terminations 190 9 (91 ) 108 Total $ 196 $ 8 $ (96 ) $ 108 . |
Future Minimum Rental Payments Under Operating Leases | The future minimum rental payments under these leases at September 30, 2017, are as follows: Year Amount 2017 $ 276 2018 1,085 2019 1,056 2020 470 Thereafter 456 Future minimum lease payments $ 3,343 |
Summary of Capital Leases for Office and Manufacturing Equipment | The Company has capital leases for office and manufacturing equipment. The net book values for assets under capital leases were as follows: September 30, 2017 December 31, 2016 Cost $ 453 $ 324 Accumulated Depreciation (172 ) (105 ) Net Book Value $ 281 $ 219 |
Present Value of Net Minimum Lease Payments, Capital Leases | The following table presents future minimum lease payments under capital leases together with the present value of the net minimum lease payments due in each year: Year Amount 2017 $ 26 2018 104 2019 87 2020 47 Thereafter 47 Total minimum payments required: 311 Less amount representing interest: 21 Present value of net minimum lease payments: $ 290 |
Changes in Warranty Reserves | Nine Months Ended September 30, 2017 2016 Beginning balance $ 394 $ 348 Provisions for warranties 99 57 Consumption of reserves (75 ) (86 ) Ending balance $ 418 $ 319 |
Segment, Customer and Geograp31
Segment, Customer and Geographic Information - Continuing Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Result of Operations by Segments | The following tables are the segment operating profits and cash flow information in continuing operations for the three months ended September 30, 2017 and 2016, respectively, and the segment balance sheet information as of September 30, 2017 and December 31, 2016: Three Months Ended September 30, 2017 Connected Solutions RF Solutions Corporate Total REVENUES $ 17,988 $ 5,739 $ (62 ) $ 23,665 GROSS PROFIT 6,148 4,006 (4 ) 10,150 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 2,684 $ 883 $ (2,674 ) $ 893 Depreciation $ 437 $ 140 $ 74 $ 651 Intangible amortization $ 39 $ 252 $ 0 $ 291 Capital expenditures $ 437 $ 103 $ 13 $ 553 Nine Months Ended September 30, 2017 Connected Solutions RF Solutions Corporate Total REVENUES $ 52,125 $ 16,157 $ (146 ) $ 68,136 GROSS PROFIT $ 17,283 $ 11,275 $ 8 $ 28,566 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 6,775 $ 2,319 $ (8,516 ) $ 578 Depreciation $ 1,288 $ 419 $ 206 $ 1,913 Intangible amortization $ 117 $ 755 $ 0 $ 872 Capital expenditures $ 1,294 $ 388 $ 415 $ 2,097 Three Months Ended September 30, 2016 Connected Solutions RF Solutions Corporate Total REVENUES $ 17,136 $ 3,814 $ (58 ) $ 20,892 GROSS PROFIT $ 5,771 $ 2,497 $ (13 ) $ 8,255 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 2,530 $ (467 ) $ (2,363 ) $ (300 ) Depreciation $ 484 $ 190 $ 0 $ 674 Intangible amortization $ 39 $ 252 $ 0 $ 291 Capital expenditures $ 284 $ 16 $ (18 ) $ 282 Nine Months Ended September 30, 2016 Connected Solutions RF Solutions Corporate Total REVENUES $ 47,616 $ 13,931 $ (164 ) $ 61,383 GROSS PROFIT $ 15,035 $ 9,620 $ (7 ) $ 24,648 OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS $ 5,625 $ 344 $ (7,644 ) $ (1,675 ) Depreciation $ 1,417 $ 577 $ 0 $ 1,994 Intangible amortization $ 153 $ 755 $ 0 $ 908 Capital expenditures $ 1,127 $ 90 $ 333 $ 1,550 |
Assets by Segment | The following tables are the segment operating profits and cash flow information in continuing operations for the three months ended September 30, 2017 and 2016, respectively, and the segment balance sheet information as of September 30, 2017 and December 31, 2016: As of September 30, 2017 Connected Solutions RF Solutions Corporate Total Accounts receivable $ 13,243 $ 5,287 $ 0 $ 18,530 Inventories $ 11,267 $ 1,561 $ 0 $ 12,828 Current assets held for sale $ 0 $ 0 $ 0 $ 0 Long-lived assets: Property and equipment, net $ 9,905 $ 1,395 $ 927 $ 12,227 Goodwill $ 0 $ 3,332 $ 0 $ 3,332 Intangible assets, net $ 116 $ 2,287 $ 0 $ 2,403 Deferred tax assets, net $ 0 $ 0 $ 5,344 $ 5,344 Other noncurrent assets $ 0 $ 0 $ 69 $ 69 As of December 31, 2016 Connected Solutions RF Solutions Corporate Total Accounts receivable $ 12,731 $ 6,370 $ 0 $ 19,101 Inventories $ 12,301 $ 2,141 $ 0 $ 14,442 Current assets held for sale $ 0 $ 50 $ 0 $ 50 Long-lived assets: Property and equipment, net $ 9,756 $ 1,346 $ 731 $ 11,833 Goodwill $ 0 $ 3,332 $ 0 $ 3,332 Intangible assets, net $ 233 $ 3,042 $ 0 $ 3,275 Deferred tax assets, net $ 0 $ 0 $ 4,512 $ 4,512 Other noncurrent assets $ 0 $ 0 $ 36 $ 36 Non-current assets held for sale $ 0 $ 776 $ 0 $ 776 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Revenues by Geographic Location | The Company’s revenue by geographic location, as a percent of total revenues, is as follows: Three Months Ended Nine Months Ended September 30, September 30, Region 2017 2016 2017 2016 Asia Pacific 17% 23% 19% 20% Europe, Middle East, & Africa 9% 8% 8% 9% Other Americas 8% 7% 6% 6% Total Foreign sales 34% 38% 33% 35% |
Schedules of Concentration of Revenues and Accounts Receivable Represents Customer Accounted for 10% or More Percentage | The following tables represents the customer that accounted for 10% or more of revenues during the three and nine months ended September 30, 2017 and 2016 and customers that accounted for 10% or more of total trade accounts receivable at September 30, 2017 and December 31, 2016. Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Customer A 10% 11% 10% 10% September 30, December 31, 2017 2016 Customer A 7% 17% Customer B 14% 7% |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Nature Of Operations [Line Items] | |||||
Number of operating segments | Segment | 2 | ||||
Net foreign exchange (losses) gains resulting from foreign currency transactions included in other income | $ (45,000) | $ 11,000 | $ (98,000) | $ (24,000) | |
Cumulative-effect adjustment to retained earnings | $ 510,000 | ||||
Adjustments of deferred tax assets | 13,500,000 | 13,500,000 | 13,300,000 | ||
Adjustments of deferred tax valuation allowance | 0 | $ 7,600,000 | 12,600,000 | ||
Retained Earnings [Member] | |||||
Nature Of Operations [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 510,000 | ||||
ASU No. 2016-09 [Member] | |||||
Nature Of Operations [Line Items] | |||||
Deferred tax assets | 600,000 | 600,000 | |||
Adjustments of deferred tax assets | 100,000 | 100,000 | |||
Adjustments of deferred tax valuation allowance | 200,000 | ||||
ASU No. 2016-09 [Member] | Retained Earnings [Member] | |||||
Nature Of Operations [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 500,000 | $ 500,000 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income (loss) from continuing operations | $ 719 | $ 89 | $ 720 | $ (8,229) |
Net income (loss) from discontinued operations | 236 | 86 | (148) | (4,125) |
Net income (loss) | $ 955 | $ 175 | $ 572 | $ (12,354) |
Denominator: | ||||
Common shares outstanding | 16,757 | 16,106 | 16,526 | 16,136 |
Earnings per common share - basic | ||||
Net income (loss) from continuing operations | $ 0.04 | $ 0.01 | $ 0.04 | $ (0.51) |
Net income (loss) from discontinued operations | 0.01 | 0.01 | (0.01) | (0.26) |
Net income (loss) | $ 0.06 | $ 0.01 | $ 0.03 | $ (0.77) |
Denominator: | ||||
Common shares outstanding | 16,757 | 16,106 | 16,526 | 16,136 |
Common stock option grants | 4 | 0 | 2 | |
Total shares | 17,065 | 16,245 | 16,830 | 16,136 |
Earnings per common share - diluted | ||||
Net income (loss) from continuing operations | $ 0.04 | $ 0.01 | $ 0.04 | $ (0.51) |
Net income (loss) from discontinued operations | 0.01 | 0.01 | (0.01) | (0.26) |
Net income (loss) | $ 0.06 | $ 0.01 | $ 0.03 | $ (0.77) |
Restricted Stock [Member] | ||||
Denominator: | ||||
Shares subject to vesting | 304 | 139 | 302 |
Earnings per Share - Computat35
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2016shares | |
Earnings Per Share [Abstract] | |
Antidilutive shares excluded | 140,000,000 |
Cash, Cash Equivalents and In36
Cash, Cash Equivalents and Investments - Cash and Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||
Cash | $ 4,822 | $ 7,507 |
Cash equivalents | 1,705 | 7,348 |
Short-term investments | 29,979 | 18,456 |
Cash and investments | $ 36,506 | $ 33,311 |
Cash, Cash Equivalents and In37
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents maturities | 90 days | 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% | |
Cash | $ 4,822,000 | $ 7,507,000 |
Cash equivalents | 1,705,000 | 7,348,000 |
Cash and cash equivalents in foreign bank | 1,400,000 | 900,000 |
Short-term investments | $ 29,979,000 | 18,456,000 |
Short-term investments, maturities | 90 days | |
Net unrealized gains (losses) | $ 15,000 | $ 9,000 |
Percentage of investment in bond protected by bond default insurance | 3.00% | 6.00% |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 500,000 | $ 3,600,000 |
Short-term investments | 15,000,000 | 5,600,000 |
U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 8,000,000 | 2,800,000 |
Short-term investments | 4,400,000 | 2,600,000 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 800,000 | |
Short-term investments | 6,200,000 | 2,500,000 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 500,000 | 100,000 |
Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 4,400,000 | 7,800,000 |
Chinese [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash in foreign bank | 1,200,000 | $ 500,000 |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Federal Deposit Insurance Corporation insured limit | $ 250,000 |
Cash, Cash Equivalents and In38
Cash, Cash Equivalents and Investments - Cash Equivalents and Investments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | $ 31,669 | $ 25,795 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 499 | 3,608 |
Investments | 14,958 | 5,569 |
U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 752 | 2,846 |
Investments | 4,407 | 2,571 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 750 |
Investments | 6,162 | 2,530 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 454 | 145 |
Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 4,437 | 7,776 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 6,616 | 3,425 |
Level 1 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Level 1 [Member] | U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 750 |
Investments | 6,162 | 2,530 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 454 | 145 |
Level 1 [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 25,053 | 22,370 |
Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 499 | 3,608 |
Investments | 14,958 | 5,569 |
Level 2 [Member] | U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 752 | 2,846 |
Investments | 4,407 | 2,571 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 4,437 | 7,776 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Level 3 [Member] | U.S. Government Agency Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 0 | $ 0 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) | Aug. 01, 2017USD ($)Employee | Jul. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Pre-tax book gain included in discontinued operations | $ 401,000 | $ 137,000 | $ (185,000) | $ (6,570,000) | |||
Book value of the assets sold | 92,205,000 | 92,205,000 | $ 92,166,000 | ||||
Income tax gain related to tax value of fixed assets and remaining tax value for intangible assets | (165,000) | $ (51,000) | 37,000 | $ 2,445,000 | |||
Fixed assets held for sale | 0 | 0 | 776,000 | ||||
Engineering Services [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale of business | $ 1,450,000 | ||||||
Amount received from sale of business at closing | 1,400,000 | ||||||
Amount recieved from sale of business | 1,300,000 | ||||||
Proceeds from sale of business related to future services | 100,000 | ||||||
Pre-tax book gain included in discontinued operations | $ 500,000 | 500,000 | |||||
Book value of the assets sold | 600,000 | ||||||
Number of employees terminated | Employee | 25 | ||||||
Estimated severance and related benefits, related to employees not subsequently hired by gabe's | $ 200,000 | ||||||
Income tax gain related to tax value of fixed assets and remaining tax value for intangible assets | 300,000 | ||||||
Working capital retained including accounts receivable, accounts payable and accrued liabilities | $ 500,000 | ||||||
Impairment loss recorded on long-lived assets | $ 0 | ||||||
Fixed assets held for sale | 600,000 | ||||||
Prepaid expenses related to current assets held for sale | 100,000 | ||||||
Liabilities classified as held for sale | $ 0 | ||||||
Engineering Services [Member] | Gabe's Construction Compnay Inc [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Number of employees hired | Employee | 11 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Reconciliation of Assets Classified as Held for Sale in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Disposal Group Including Discontinued Operation Balance Sheet Disclosures [Abstract] | ||
Prepaid expenses and other assets | $ 0 | $ 50 |
Current assets held for sale | 0 | 50 |
Fixed assets | 0 | 776 |
Non-current assets held for sale | $ 0 | $ 776 |
Discontinued Operations - Sch41
Discontinued Operations - Schedule of Discontinued Operations within Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | ||||
Revenues | $ 368 | $ 3,795 | $ 3,725 | $ 8,621 |
Cost of revenues | 415 | 3,113 | 3,974 | 8,044 |
Gross profit | (47) | 682 | (249) | 577 |
Operating expenses: | ||||
Sales and marketing | 51 | 280 | 400 | 855 |
General and administrative | 4 | 43 | 31 | 126 |
Amortization of intangible assets | 0 | 126 | 0 | 1,022 |
Impairment of intangible assets | 0 | 0 | 0 | 4,724 |
Restructuring expenses | 0 | 96 | 8 | 420 |
Total operating expenses | 55 | 545 | 439 | 7,147 |
Operating (loss) income | (102) | 137 | (688) | (6,570) |
Gain on sale | (503) | 0 | (503) | 0 |
Net (loss) income before income taxes | 401 | 137 | (185) | (6,570) |
Expense (benefit) for income taxes | 165 | 51 | (37) | (2,445) |
Net (loss) income | $ 236 | $ 86 | $ (148) | $ (4,125) |
Discontinued Operations - Sch42
Discontinued Operations - Schedule of Cash Flows for Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities: | ||||
Net loss | $ 236 | $ 86 | $ (148) | $ (4,125) |
Gain on sale of assets | (803) | 0 | ||
Depreciation | 197 | 411 | ||
Intangible amortization | 0 | 126 | 0 | 1,022 |
Impairment of intangible assets | $ 0 | $ 0 | 0 | 4,724 |
Deferred tax provision | (37) | (2,445) | ||
Stock compensation | 49 | 118 | ||
Prepaid expenses and other assets | 2 | (26) | ||
Accrued liabilities | 43 | 0 | ||
Net cash used in operating activities | (697) | (321) | ||
Investing Activities: | ||||
Capital expenditures | (16) | (149) | ||
Proceeds from sale of assets | 1,450 | 0 | ||
Net cash provided by (used) in investing activities | $ 1,434 | $ (149) |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | |||||||
Change in goodwill | $ 0 | ||||||
Amortization of intangible assets | $ 291,000 | $ 291,000 | 872,000 | $ 908,000 | |||
Increase (decrease) in cost of intangible assets | $ 900,000 | ||||||
Customer Contracts and Relationships [Member] | |||||||
Finite Lived Intangible Assets [Line Items] | |||||||
Amortization of intangible assets basis over estimated useful lives | 5 years | ||||||
RF Solutions [Member] | Customer Contracts and Relationships [Member] | |||||||
Finite Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | $ 1,100,000 | 4,700,000 | $ 5,800,000 | ||||
Continuing Operations [Member] | |||||||
Finite Lived Intangible Assets [Line Items] | |||||||
Amortization of intangible assets | 300,000 | 300,000 | $ 900,000 | 900,000 | |||
Discontinued Operations [Member] | |||||||
Finite Lived Intangible Assets [Line Items] | |||||||
Amortization of intangible assets | 0 | 100,000 | 0 | 1,000,000 | |||
Cost of Revenues [Member] | |||||||
Finite Lived Intangible Assets [Line Items] | |||||||
Amortization of intangible assets | $ 200,000 | $ 200,000 | $ 500,000 | $ 500,000 | |||
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 | 6 years | ||||||
Nexgen Wireless, Inc. [Member] | |||||||
Finite Lived Intangible Assets [Line Items] | |||||||
Goodwill acquired | $ 3,300,000 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 34,334 | $ 35,197 |
Accumulated Amortization | 31,931 | 31,922 |
Net Book Value | 2,403 | 3,275 |
Customer Contracts and Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 16,880 | 17,380 |
Accumulated Amortization | 16,880 | 17,380 |
Net Book Value | 0 | 0 |
Patents and Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 10,114 | 10,114 |
Accumulated Amortization | 8,503 | 8,004 |
Net Book Value | 1,611 | 2,110 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 4,834 | 4,960 |
Accumulated Amortization | 4,248 | 4,111 |
Net Book Value | 586 | 849 |
Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 2,506 | 2,743 |
Accumulated Amortization | 2,300 | 2,427 |
Net Book Value | $ 206 | $ 316 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Summary of Assigned Lives and Weighted Average Amortization Periods by Intangible Asset Category (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Minimum [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 | 6 years |
Customer Contracts and Relationships [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
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 | 5 years 1 month 6 days |
Patents and Technology [Member] | Minimum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
Patents and Technology [Member] | Maximum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 6 years |
Trademarks and Trade Names [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Weighted Average Amortization Period | 5 years 7 months 6 days |
Trademarks and Trade Names [Member] | Minimum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
Trademarks and Trade Names [Member] | Maximum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 6 years |
Other [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Weighted Average Amortization Period | 3 years |
Other [Member] | Minimum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 1 year |
Other [Member] | Maximum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 6 years |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,017 | $ 1,162 |
2,018 | 1,084 |
2,019 | 885 |
2,020 | $ 144 |
Balance Sheet Information - Add
Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Allowance for doubtful accounts | $ 302 | $ 302 | $ 273 | ||
Consigned inventory with customers | 700 | 700 | 400 | ||
Allowance for inventory losses | 3,200 | 3,200 | $ 2,900 | ||
Depreciation and amortization expense in continuing operations | $ 700 | $ 700 | $ 1,900 | $ 2,000 | |
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, 2017 | Dec. 31, 2016 |
Inventory Net [Abstract] | ||
Raw materials | $ 7,053 | $ 8,718 |
Work in process | 1,324 | 1,486 |
Finished goods | 4,451 | 4,238 |
Inventories, net | $ 12,828 | $ 14,442 |
Balance Sheet Information - S49
Balance Sheet Information - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 33,244 | $ 31,108 |
Less: Accumulated depreciation and amortization | (22,787) | (21,045) |
Land | 1,770 | 1,770 |
Property and equipment, net | 12,227 | 11,833 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,351 | 6,351 |
Computers and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,615 | 10,683 |
Manufacturing and Test Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,653 | 11,638 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,257 | 1,225 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,348 | 1,191 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 20 | $ 20 |
Balance Sheet Information - S50
Balance Sheet Information - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Payroll, bonuses, and other employee benefits | $ 2,298 | $ 2,029 |
Inventory receipts | 1,531 | 1,622 |
Paid time off | 1,084 | 1,230 |
Warranties | 418 | 394 |
Income and sales taxes | 344 | 546 |
Professional fees and contractors | 224 | 320 |
Deferred revenues | 199 | 104 |
Employee stock purchase plan | 128 | 300 |
Real estate taxes | 122 | 152 |
Customer prepayments | 45 | 164 |
Restructuring | 24 | 126 |
Other | 317 | 190 |
Total | $ 6,734 | $ 7,177 |
Balance Sheet Information - S51
Balance Sheet Information - Summary of Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Liabilities Noncurrent [Abstract] | ||
Long-term obligations under capital leases | $ 196 | $ 157 |
Deferred rent | 107 | 156 |
Restructuring | 84 | 70 |
Deferred revenues | 43 | 8 |
Total | $ 430 | $ 391 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Stock compensation expense | $ 0.7 | $ 0.9 | $ 2.5 | $ 3.2 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Based Compensation [Line Items] | ||||
Total | $ 661 | $ 944 | $ 2,507 | $ 3,187 |
Continuing Operations [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | 661 | 978 | 2,458 | 3,069 |
Discontinued Operations [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | 0 | (34) | 49 | 118 |
Service Based Restricted Stock [Member] | Continuing Operations [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | 612 | 640 | 2,291 | 2,368 |
Employee Stock Purchase Plan [Member] | Continuing Operations [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | 50 | 40 | 138 | 125 |
Stock Options [Member] | Continuing Operations [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | (1) | 34 | 29 | 145 |
Stock Bonuses [Member] | Continuing Operations [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | $ 0 | $ 264 | $ 0 | $ 431 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 661 | $ 944 | $ 2,507 | $ 3,187 |
Continuing Operations [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 661 | 978 | 2,458 | 3,069 |
Discontinued Operations [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 0 | (34) | 49 | 118 |
Cost of Revenues [Member] | Continuing Operations [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 67 | 78 | 200 | 219 |
Research and Development [Member] | Continuing Operations [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 128 | 183 | 394 | 525 |
Sales and Marketing [Member] | Continuing Operations [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 117 | 176 | 363 | 477 |
General and Administrative [Member] | Continuing Operations [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 349 | $ 541 | $ 1,501 | $ 1,848 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock - Service-Based - Additional Information (Detail) - Service Based Restricted Stock [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants vesting period | 4 years | ||||
Stock awards issued during the period | 285,000 | ||||
Restricted shares vested grant date intrinsic value | $ 1.3 | $ 0.6 | $ 2.5 | $ 1 | |
Accelerated vesting of restricted shares | 7,387 | ||||
Unrecognized compensation expense | $ 3.3 | $ 3.3 | |||
Weighted average period | 1 year 4 months 25 days | ||||
Non Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cancelled unvested restricted shares | 37,793 | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants vesting period | 2 years |
Stock-Based Compensation - Su56
Stock-Based Compensation - Summary of Service-based Restricted Stock Activity (Detail) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, Shares | shares | 1,120,960 |
Units awarded, Shares | shares | 337,786 |
Units vested, Shares | shares | (474,895) |
Units cancelled, Shares | shares | (75,763) |
Ending balance, Shares | shares | 908,088 |
Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 5.83 |
Shares awarded, Weighted Average Grant Date Fair Value | $ / shares | 6.13 |
Shares vested, Weighted Average Grant Date Fair Value | $ / shares | 6.39 |
Shares cancelled, Weighted Average Grant Date Fair Value | $ / shares | 6.06 |
Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 5.63 |
Stock-Based Compensation - Su57
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Schedule Of Summary Of Restricted Stock Unit Activity [Line Items] | |
Beginning balance, Shares | shares | 36,388 |
Units awarded, Units | shares | 5,000 |
Units vested, Units | shares | (6,588) |
Ending balance, Shares | shares | 34,800 |
Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 5.57 |
Units awarded, Weighted Average Grant Date Fair Value | $ / shares | 5.97 |
Units vested, Weighted Average Grant Date Fair Value | $ / shares | 6.44 |
Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 5.47 |
Stock-Based Compensation - Re58
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares vested intrinsic value | $ 0 | $ 0 | $ 40,000 | $ 7,000 |
Unrecognized compensation expense | $ 100,000 | $ 100,000 | ||
Weighted average period | 10 months 25 days |
Stock-Based Compensation - St59
Stock-Based Compensation - Stock Options - Additional Information (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Intrinsic value based on share price | $ 6.30 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee stock options vesting provisions, description | The stock options have a seven-year life and generally vest over a period of four years, 25% after one year, and monthly thereafter. |
Options vested in remaining period | 4 years |
Options vesting percentage after one year | 25.00% |
Period of termination of employment | 90 days |
Stock options granted period | 7 years |
Options granted | shares | 0 |
Lower range of exercise prices | $ 5 |
Upper range of exercise prices | $ 10.46 |
Period of expected life, options granted | 5 years |
Unrecognized compensation expense | $ | $ 43 |
Weighted average period | 1 year 1 month 7 days |
Stock-Based Compensation - Su60
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Summary Of Stock Option Activities [Line Items] | |
Options Outstanding, Beginning balance, Shares | shares | 825,561 |
Options Outstanding, Exercised | shares | (121,026) |
Options Outstanding, Expired or cancelled | shares | (83,182) |
Options Outstanding, Forfeited | shares | (40,652) |
Options Outstanding, Ending balance, Shares | shares | 580,701 |
Options Exercisable, Ending balance, Shares | shares | 567,025 |
Options Outstanding, Beginning balance, Weighted Average Exercise Price | $ / shares | $ 7.30 |
Weighted Average Exercise Price, Exercised | $ / shares | 7.11 |
Weighted Average Exercise Price, Expired or Cancelled | $ / shares | 8.35 |
Weighted Average Exercise Price, Forfeited | $ / shares | 6.70 |
Options Outstanding, Ending balance, Weighted Average Exercise Price | $ / shares | 7.23 |
Options Outstanding, Exercisable at End of Year, Weighted Average Exercise Price | $ / shares | $ 7.27 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Stock Options Outstanding Under all Stock Plans (Detail) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | $ 5 |
Upper range of exercise prices | $ 6 |
Options Outstanding, Number | shares | 13,900 |
Options Outstanding, Weighted Average Contractual Life (Years) | 5 years 9 months 22 days |
Options Outstanding, Weighted-Average Exercise Price | $ 5.08 |
Options Exercisable, Number | shares | 3,400 |
Options Exercisable, Weighted Average Exercise Price | $ 5.17 |
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 | $ 7 |
Options Outstanding, Number | shares | 38,289 |
Options Outstanding, Weighted Average Contractual Life (Years) | 7 months 7 days |
Options Outstanding, Weighted-Average Exercise Price | $ 6.82 |
Options Exercisable, Number | shares | 38,289 |
Options Exercisable, Weighted Average Exercise Price | $ 6.82 |
Range Three [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 | $ 8 |
Options Outstanding, Number | shares | 493,708 |
Options Outstanding, Weighted Average Contractual Life (Years) | 2 years 6 months |
Options Outstanding, Weighted-Average Exercise Price | $ 7.20 |
Options Exercisable, Number | shares | 491,960 |
Options Exercisable, Weighted Average Exercise Price | $ 7.20 |
Range Four [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 | $ 9 |
Options Outstanding, Number | shares | 16,567 |
Options Outstanding, Weighted Average Contractual Life (Years) | 1 year 5 months 24 days |
Options Outstanding, Weighted-Average Exercise Price | $ 8.31 |
Options Exercisable, Number | shares | 15,171 |
Options Exercisable, Weighted Average Exercise Price | $ 8.33 |
Range Five [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 | $ 10 |
Options Outstanding, Number | shares | 16,837 |
Options Outstanding, Weighted Average Contractual Life (Years) | 9 months 22 days |
Options Outstanding, Weighted-Average Exercise Price | $ 9.62 |
Options Exercisable, Number | shares | 16,805 |
Options Exercisable, Weighted Average Exercise Price | $ 9.62 |
Range Six [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 | $ 10.46 |
Options Outstanding, Number | shares | 1,400 |
Options Outstanding, Weighted Average Contractual Life (Years) | 10 months 3 days |
Options Outstanding, Weighted-Average Exercise Price | $ 10.46 |
Options Exercisable, Number | shares | 1,400 |
Options Exercisable, Weighted Average Exercise Price | $ 10.46 |
Range Seven [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | 5 |
Upper range of exercise prices | $ 10.46 |
Options Outstanding, Number | shares | 580,701 |
Options Outstanding, Weighted Average Contractual Life (Years) | 2 years 4 months 14 days |
Options Outstanding, Weighted-Average Exercise Price | $ 7.23 |
Options Exercisable, Number | shares | 567,025 |
Options Exercisable, Weighted Average Exercise Price | $ 7.27 |
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, 2017USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures [Abstract] | |
Options Outstanding Weighted Average Contractual Life (years) | 2 years 4 months 14 days |
Options Exercisable Weighted Average Contractual Life (years) | 2 years 3 months 15 days |
Options Outstanding Intrinsic Value | $ 17 |
Options Exercisable Intrinsic Value | $ 4 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-based Equity Awards - Additional Information (Detail) - Performance Units [Member] - shares | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested performance units | 255,500 | 296,500 |
Unvested units forfeitures | 41,000 |
Stock-Based Compensation - Su64
Stock-Based Compensation - Summary of Performance Share Equity Activity (Detail) - Performance Units [Member] | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, Shares | shares | 296,500 |
Units cancelled, Shares | shares | (41,000) |
Ending balance, Shares | shares | 255,500 |
Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 7.95 |
Units cancelled, Weighted Average Grant Date Fair Value | $ / shares | 7.82 |
Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 7.97 |
Stock-Based Compensation - Shor
Stock-Based Compensation - Short-term Incentive Plan - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued under short-term incentive plan, value | $ 2,507 | |||||
Stock compensation expense | $ 700 | $ 900 | 2,500 | $ 3,200 | ||
Short-Term Incentive Plan (STIP) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued under short-term incentive plan, shares | 0 | 0 | 112,916 | |||
Stock issued under short-term incentive plan, value | $ 600 | |||||
Stock compensation expense | $ 0 |
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, 2017 | Feb. 28, 2017 | Aug. 31, 2016 | Feb. 29, 2016 | Sep. 30, 2017 | |
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 | $ 0.3 | $ 0.3 | $ 0.4 | ||
Options issued | 67,383 | 72,218 | 78,415 | ||
Rate of discount on fair market value of common stock under ESPP | 15.00% | ||||
Period of expected life, options granted | 5 years | ||||
Employee Stock Purchase Plan ("ESPP") [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds of from issuance of shares under ESPP | $ 0.3 | ||||
Options issued | 67,533 |
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, 2017 | Sep. 30, 2016 | |
Calculation of fair value of each employee stock purchase grant using the Black-Scholes option-pricing model | ||
Dividend yield | 3.50% | 4.20% |
Risk-free interest rate | 1.10% | 0.60% |
Expected volatility | 34.00% | 34.00% |
Expected life (in years) | 6 months | 6 months |
Stock-Based Compensation - Em68
Stock-Based Compensation - Employee Withholding Taxes on Stock Awards - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payment of withholding taxes related to stock awards | $ 1,190 | $ 365 |
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 | $ 1,200 | $ 400 |
Stock-Based Compensation - St69
Stock-Based Compensation - Stock Repurchases - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended |
Mar. 31, 2016 | Sep. 30, 2017 | |
Share Repurchases [Abstract] | ||
Stock repurchased during period, shares | 783,212 | 0 |
Stock repurchased during period, average price per share | $ 5.23 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - Employee Benefit Plans [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Maximum percentage of current compensation of employee to contribute in plan | 15.00% |
Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer matches employee contribution percentage | 4.00% |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | $ 290 | $ 257 | $ 858 | $ 794 |
US Employees [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | 173 | 168 | 533 | 509 |
Foreign Employees [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | $ 117 | $ 89 | $ 325 | $ 285 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2017USD ($)ft² | Jul. 31, 2017USD ($) | Apr. 30, 2017ft² | Jun. 30, 2016USD ($)ft² | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Restructuring reserve | $ 108 | $ 108 | $ 196 | |||||||
Rent expense under leases | 200 | $ 200 | 700 | $ 700 | ||||||
Operating lease obligation | 3,343 | 3,343 | ||||||||
Allowance for product returns | 200 | 200 | ||||||||
Warranty reserve | 418 | $ 418 | 394 | |||||||
Antenna [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Repair and replacement warranty | 5 years | |||||||||
Warranty Reserves [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Warranty reserve | 418 | $ 319 | $ 418 | $ 319 | 394 | $ 348 | ||||
Beijing Design Center [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Lease term | 4 years | |||||||||
Area of office space | ft² | 11,270 | |||||||||
Operating lease obligation | $ 400 | |||||||||
Tianjin Facility [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Area of office space | ft² | 22,120 | |||||||||
Operating lease obligation | 35 | $ 35 | ||||||||
Lease expiration date | Apr. 11, 2018 | |||||||||
Akron, Ohio [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Lease term | 7 years | |||||||||
Area of office space | ft² | 5,977 | |||||||||
Operating lease obligation | $ 700 | |||||||||
Lease commencement date | Jan. 1, 2018 | |||||||||
Colorado Office [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Lease expiration date | Oct. 31, 2020 | |||||||||
Colorado Office [Member] | Landlord [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Operating lease obligation | 400 | $ 400 | ||||||||
Melbourne, Florida [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Operating lease obligation | $ 78,000 | |||||||||
Lease expiration date | Dec. 31, 2018 | |||||||||
Accrued Liabilities [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Restructuring reserve | 24 | 24 | 100 | |||||||
Long-term Liabilities [Member] | ||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||
Restructuring reserve | $ 84 | $ 84 | $ 100 |
Commitments and Contingencies73
Commitments and Contingencies - Summary of Restructuring Activity (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 196 |
Expenses/ Adjustments | 8 |
Cash Payments/ Adjustments | (96) |
Ending Balance | 108 |
Severance and Related Employee Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 6 |
Expenses/ Adjustments | (1) |
Cash Payments/ Adjustments | (5) |
Ending Balance | 0 |
Lease Terminations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 190 |
Expenses/ Adjustments | 9 |
Cash Payments/ Adjustments | (91) |
Ending Balance | $ 108 |
Commitments and Contingencies74
Commitments and Contingencies - Future Minimum Rental Payments Under Operating Leases (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,017 | $ 276 |
2,018 | 1,085 |
2,019 | 1,056 |
2,020 | 470 |
Thereafter | 456 |
Future minimum lease payments | $ 3,343 |
Commitments and Contingencies75
Commitments and Contingencies - Summary of Capital Leases for Office and Manufacturing Equipment (Detail) - Office and Manufacturing Equipment [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Capital Leased Assets [Line Items] | ||
Cost | $ 453 | $ 324 |
Accumulated Depreciation | (172) | (105) |
Net Book Value | $ 281 | $ 219 |
Commitments and Contingencies76
Commitments and Contingencies - Present Value of Net Minimum Lease Payments, Capital Leases (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 26 |
2,018 | 104 |
2,019 | 87 |
2,020 | 47 |
Thereafter | 47 |
Total minimum payments required: | 311 |
Less amount representing interest: | 21 |
Present value of net minimum lease payments: | $ 290 |
Commitments and Contingencies77
Commitments and Contingencies - Changes in Warranty Reserves (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in warranty reserves | ||
Beginning balance | $ 394 | |
Ending balance | 418 | |
Warranty Reserves [Member] | ||
Changes in warranty reserves | ||
Beginning balance | 394 | $ 348 |
Provisions for warranties | 99 | 57 |
Consumption of reserves | (75) | (86) |
Ending balance | $ 418 | $ 319 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||||
Income tax expense (benefit) in continuing operations | $ 206,000 | $ (354,000) | $ (68,000) | $ 6,603,000 | ||
Statutory rate | 34.00% | 34.00% | ||||
Adjustments of deferred tax valuation allowance | $ 0 | $ 7,600,000 | $ 12,600,000 | |||
Deferred tax assets, net of deferred tax liabilities | 5,300,000 | 5,300,000 | 4,500,000 | |||
Deferred tax assets, valuation allowance | 13,500,000 | $ 13,500,000 | 13,300,000 | |||
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 | 27 years | |||||
Additional adjustment to the valuation allowance | 5,000,000 | |||||
Gross unrecognized tax benefit | 700,000 | $ 700,000 | $ 900,000 | |||
Research Tax Credit Carryforward [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax benefit related to previously unrecognized tax benefits | $ 100,000 | 100,000 | ||||
Recently Adopted Accounting Standards [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax deficiencies with restricted stock and stock options | 200,000 | |||||
Adjustments of deferred tax valuation allowance | $ 200,000 | |||||
Increase to deferred tax assets to account for tax benefits and forfeitures | $ 700,000 |
Segment, Customer and Geograp79
Segment, Customer and Geographic Information - Continuing Operations - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segment, Customer and Geograp80
Segment, Customer and Geographic Information - Continuing Operations - Result of Operations by Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Results of operations by segments | ||||
REVENUES | $ 23,665 | $ 20,892 | $ 68,136 | $ 61,383 |
GROSS PROFIT | 10,150 | 8,255 | 28,566 | 24,648 |
OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS | 893 | (300) | 578 | (1,675) |
Depreciation | 651 | 674 | 1,913 | 1,994 |
Intangible amortization | 291 | 291 | 872 | 908 |
Capital expenditures | 553 | 282 | 2,097 | 1,550 |
Operating Segments [Member] | Connected Solutions [Member] | ||||
Results of operations by segments | ||||
REVENUES | 17,988 | 17,136 | 52,125 | 47,616 |
GROSS PROFIT | 6,148 | 5,771 | 17,283 | 15,035 |
OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS | 2,684 | 2,530 | 6,775 | 5,625 |
Depreciation | 437 | 484 | 1,288 | 1,417 |
Intangible amortization | 39 | 39 | 117 | 153 |
Capital expenditures | 437 | 284 | 1,294 | 1,127 |
Operating Segments [Member] | RF Solutions [Member] | ||||
Results of operations by segments | ||||
REVENUES | 5,739 | 3,814 | 16,157 | 13,931 |
GROSS PROFIT | 4,006 | 2,497 | 11,275 | 9,620 |
OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS | 883 | (467) | 2,319 | 344 |
Depreciation | 140 | 190 | 419 | 577 |
Intangible amortization | 252 | 252 | 755 | 755 |
Capital expenditures | 103 | 16 | 388 | 90 |
Corporate, Non-Segment [Member] | ||||
Results of operations by segments | ||||
REVENUES | (62) | (58) | (146) | (164) |
GROSS PROFIT | (4) | (13) | 8 | (7) |
OPERATING INCOME (LOSS) FOR CONTINUING OPERATIONS | (2,674) | (2,363) | (8,516) | (7,644) |
Depreciation | 74 | 0 | 206 | 0 |
Intangible amortization | 0 | 0 | 0 | 0 |
Capital expenditures | $ 13 | $ (18) | $ 415 | $ 333 |
Segment, Customer and Geograp81
Segment, Customer and Geographic Information - Continuing Operations - Assets by Segment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Results of operations by segments | ||
Accounts receivable | $ 18,530 | $ 19,101 |
Inventories | 12,828 | 14,442 |
Current assets held for sale | 0 | 50 |
Property and equipment, net | 12,227 | 11,833 |
Goodwill | 3,332 | 3,332 |
Intangible assets, net | 2,403 | 3,275 |
Deferred tax assets, net | 5,344 | 4,512 |
Other noncurrent assets | 69 | 36 |
Non-current assets held for sale | 0 | 776 |
Operating Segments [Member] | Connected Solutions [Member] | ||
Results of operations by segments | ||
Accounts receivable | 13,243 | 12,731 |
Inventories | 11,267 | 12,301 |
Current assets held for sale | 0 | 0 |
Property and equipment, net | 9,905 | 9,756 |
Goodwill | 0 | 0 |
Intangible assets, net | 116 | 233 |
Deferred tax assets, net | 0 | 0 |
Other noncurrent assets | 0 | 0 |
Non-current assets held for sale | 0 | |
Operating Segments [Member] | RF Solutions [Member] | ||
Results of operations by segments | ||
Accounts receivable | 5,287 | 6,370 |
Inventories | 1,561 | 2,141 |
Current assets held for sale | 0 | 50 |
Property and equipment, net | 1,395 | 1,346 |
Goodwill | 3,332 | 3,332 |
Intangible assets, net | 2,287 | 3,042 |
Deferred tax assets, net | 0 | 0 |
Other noncurrent assets | 0 | 0 |
Non-current assets held for sale | 776 | |
Corporate, Non-Segment [Member] | ||
Results of operations by segments | ||
Accounts receivable | 0 | 0 |
Inventories | 0 | 0 |
Current assets held for sale | 0 | 0 |
Property and equipment, net | 927 | 731 |
Goodwill | 0 | 0 |
Intangible assets, net | 0 | 0 |
Deferred tax assets, net | 5,344 | 4,512 |
Other noncurrent assets | $ 69 | 36 |
Non-current assets held for sale | $ 0 |
Concentration of Credit Risk -
Concentration of Credit Risk - Revenues by Geographic Location (Detail) - Sales [Member] - Geographic Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 17.00% | 23.00% | 19.00% | 20.00% |
Europe, Middle East, & Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 9.00% | 8.00% | 8.00% | 9.00% |
Other Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 8.00% | 7.00% | 6.00% | 6.00% |
Total Foreign Sales [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 34.00% | 38.00% | 33.00% | 35.00% |
Concentration of Credit Risk 83
Concentration of Credit Risk - Schedules of Concentration of Revenues and Accounts Receivable Represents Customer Accounted for 10% or More Percentage (Detail) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Sales [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.00% | 11.00% | 10.00% | 10.00% | |
Trade Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 7.00% | 17.00% | |||
Trade Accounts Receivable [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14.00% | 7.00% |