Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | IMMERSION CORP | ||
Entity Central Index Key | 1,058,811 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 29,462,117 | ||
Trading Symbol | IMMR | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 141,739,100 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 24,622 | $ 56,865 |
Short-term investments | 21,916 | 32,907 |
Accounts and other receivables, net | 806 | 1,382 |
Prepaid expenses and other current assets | 736 | 2,876 |
Total current assets | 48,080 | 94,030 |
Property and equipment, net | 3,150 | 4,016 |
Deferred income tax assets | 401 | 359 |
Prepaid income taxes | 0 | 4,997 |
Other assets, net | 344 | 365 |
Total assets | 51,975 | 103,767 |
Current liabilities: | ||
Accounts payable | 6,647 | 5,951 |
Accrued compensation | 4,133 | 4,753 |
Other current liabilities | 3,896 | 4,409 |
Deferred revenue | 4,424 | 5,909 |
Total current liabilities | 19,100 | 21,022 |
Long-term deferred revenue | 22,303 | 26,393 |
Other long-term liabilities | 915 | 1,012 |
Total liabilities | 42,318 | 48,427 |
Commitments and contingencies (Notes 13 and 14) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital – $0.001 par value; 100,000,000 shares authorized; 35,950,518 and 35,555,562 shares issued, respectively; 29,263,828 and 28,917,559 shares outstanding, respectively | 228,046 | 221,098 |
Accumulated other comprehensive income | 99 | 115 |
Accumulated deficit | (171,616) | (119,329) |
Treasury stock at cost: 6,686,690 and 6,638,003 shares, respectively | (46,872) | (46,544) |
Total stockholders’ equity | 9,657 | 55,340 |
Total liabilities and stockholders’ equity | $ 51,975 | $ 103,767 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 35,950,518 | 35,555,562 |
Common stock, shares outstanding (in shares) | 29,263,828 | 28,917,559 |
Treasury stock, shares (in shares) | 6,686,690 | 6,638,003 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Royalty and license | $ 34,089 | $ 56,030 | $ 61,677 |
Development, services, and other | 924 | 1,056 | 1,716 |
Total revenues | 35,013 | 57,086 | 63,393 |
Costs and expenses: | |||
Cost of revenues | 197 | 197 | 460 |
Sales and marketing | 13,516 | 14,613 | 14,674 |
Research and development | 11,759 | 13,388 | 14,785 |
General and administrative | 53,343 | 44,151 | 28,755 |
Restructuring costs | 1,620 | 0 | 0 |
Total costs and expenses | 80,435 | 72,349 | 58,674 |
Operating income (loss) | (45,422) | (15,263) | 4,719 |
Interest and other income | 337 | 817 | 177 |
Other expense | 274 | (63) | (447) |
Income (loss) from continuing operations before provision for income taxes | (44,811) | (14,509) | 4,449 |
Provision for income taxes from continuing operations | (480) | (25,521) | (1,591) |
Income (loss) from continuing operations | (45,291) | (40,030) | 2,858 |
Income from discontinued operations, net of tax | 0 | 649 | 0 |
Net income (loss) | $ (45,291) | $ (39,381) | $ 2,858 |
Basic net income (loss) per share: | |||
Basic net income (loss) per share - Continuing operations (in dollars per share) | $ (1.55) | $ (1.39) | $ 0.10 |
Basic net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0.02 | 0 |
Basic net income per share (in dollars per share) | $ (1.55) | $ (1.37) | $ 0.10 |
Shares used in calculating basic net income per share (in shares) | 29,179 | 28,759 | 28,097 |
Diluted net income (loss) per share: | |||
Diluted net income (loss) per share - Continuing operations (in dollars per share) | $ (1.55) | $ (1.39) | $ 0.10 |
Diluted net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0.02 | 0 |
Diluted net income per share (in dollars per shares) | $ (1.55) | $ (1.37) | $ 0.10 |
Shares used in computation of diluted net income (loss) per share (in shares) | 29,179 | 28,759 | 29,015 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized gains (losses) on short-term investments | $ (16) | $ 8 | $ (16) |
Foreign currency translation adjustments | 0 | 21 | 0 |
Total other comprehensive income (loss) | (16) | 29 | (16) |
Total comprehensive income (loss) | $ (45,307) | $ (39,352) | $ 2,842 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Treasury Stock | |
Beginning balance at Dec. 31, 2014 | $ 76,603 | $ 204,876 | $ 102 | $ (82,806) | $ (45,569) | |
Beginning balance, shares at Dec. 31, 2014 | 34,225,778 | 6,510,391 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,858 | 2,858 | ||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (16) | (16) | ||||
Foreign currency translation adjustments | $ 0 | |||||
Repurchase of stock, shares | 0 | |||||
Issuance of stock for ESPP purchase | $ 367 | $ 367 | ||||
Issuance of stock for ESPP purchase, shares | 45,820 | |||||
Exercise of stock options, net of shares withheld for employee taxes | 1,561 | $ 1,630 | $ (69) | |||
Exercise of stock options, net of shares withheld for employee taxes, shares | 239,071 | 5,503 | ||||
Release of restricted stock units and awards, including related stock compensation | 3,059 | $ 3,059 | ||||
Release of restricted stock units and awards, shares | 334,641 | |||||
Tax benefit/(deficiency) from the stock incentive plans | (228) | $ (228) | ||||
Stock based compensation for stock options | 2,411 | 2,411 | ||||
Ending balance at Dec. 31, 2015 | 86,615 | $ 212,115 | 86 | (79,948) | $ (45,638) | |
Ending balance, shares at Dec. 31, 2015 | 34,845,310 | 6,515,894 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (39,381) | (39,381) | ||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 8 | 8 | ||||
Foreign currency translation adjustments | 21 | 21 | ||||
Repurchase of stock | (729) | $ (729) | ||||
Repurchase of stock, shares | 105,750 | |||||
Issuance of stock for ESPP purchase | 307 | $ 307 | ||||
Issuance of stock for ESPP purchase, shares | 45,825 | |||||
Exercise of stock options, net of shares withheld for employee taxes | 2,388 | $ 2,565 | $ (177) | |||
Exercise of stock options, net of shares withheld for employee taxes, shares | 395,515 | 16,359 | ||||
Release of restricted stock units and awards, including related stock compensation | 2,257 | $ 2,257 | ||||
Release of restricted stock units and awards, shares | 268,912 | |||||
Stock based compensation for stock options | 3,854 | $ 3,854 | ||||
Ending balance at Dec. 31, 2016 | 55,340 | $ 221,098 | 115 | (119,329) | $ (46,544) | |
Ending balance, shares at Dec. 31, 2016 | 35,555,562 | 6,638,003 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (45,291) | (45,291) | ||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (16) | (16) | ||||
Foreign currency translation adjustments | 0 | |||||
Repurchase of stock | $ (328) | $ (328) | ||||
Repurchase of stock, shares | 48,687 | 48,687 | ||||
Issuance of stock for ESPP purchase | $ 328 | $ 328 | ||||
Issuance of stock for ESPP purchase, shares | 48,750 | |||||
Exercise of stock options, net of shares withheld for employee taxes | 518 | $ 518 | $ 0 | |||
Exercise of stock options, net of shares withheld for employee taxes, shares | 70,608 | 0 | ||||
Release of restricted stock units and awards, including related stock compensation | 2,661 | $ 2,661 | ||||
Release of restricted stock units and awards, shares | 275,598 | |||||
Stock based compensation for stock options | 3,441 | $ 3,441 | ||||
Effect of change in accounting policy (1) | [1] | (6,996) | (6,996) | |||
Ending balance at Dec. 31, 2017 | $ 9,657 | $ 228,046 | $ 99 | $ (171,616) | $ (46,872) | |
Ending balance, shares at Dec. 31, 2017 | 35,950,518 | 6,686,690 | ||||
[1] | Represents less than 10% of the Company’s outstanding accounts and other receivables. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows provided by (used in) operating activities: | |||
Net income (loss) | $ (45,291) | $ (39,381) | $ 2,858 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization of property and equipment | 968 | 910 | 1,016 |
Stock-based compensation | 6,102 | 6,111 | 5,470 |
Deferred income taxes | (32) | 24,274 | 9,935 |
Loss on disposal of equipment | 1 | 19 | 4 |
Income from discontinued operations | 0 | (649) | 0 |
Changes in operating assets and liabilities: | |||
Accounts and other receivables | 576 | (171) | 1,814 |
Prepaid income taxes | 0 | 1,998 | (6,995) |
Prepaid expenses and other current assets | 141 | (86) | (1,945) |
Intangibles and other assets | (197) | (275) | (36) |
Accounts payable | 696 | 5,322 | (19) |
Accrued compensation and other current liabilities | (1,111) | 967 | 3,750 |
Deferred revenue | (5,575) | 23,090 | (6,394) |
Other long-term liabilities | (107) | (87) | 587 |
Net cash provided by (used in) operating activities | (43,829) | 22,042 | 10,045 |
Cash flows provided by (used in) investing activities: | |||
Purchases of short-term investments | (23,807) | (32,813) | (44,910) |
Proceeds from maturities of short-term investments | 35,000 | 40,000 | 48,000 |
Purchases of property and equipment | (125) | (343) | (4,430) |
Proceeds from discontinued operations | 0 | 1,000 | 0 |
Net cash provided by (used in) investing activities | 11,068 | 7,844 | (1,340) |
Cash flows provided by financing activities: | |||
Issuance of common stock under employee stock purchase plan | 328 | 307 | 367 |
Exercise of stock options, net of shares withheld for employee taxes | 518 | 2,388 | 1,561 |
Purchases of treasury stock | (328) | (729) | 0 |
Net cash provided by financing activities | 518 | 1,966 | 1,928 |
Net increase (decrease) in cash and cash equivalents | (32,243) | 31,852 | 10,633 |
Cash and cash equivalents: | |||
Beginning of year | 56,865 | 25,013 | 14,380 |
End of year | 24,622 | 56,865 | 25,013 |
Supplemental disclosure of cash flow information: | |||
Cash paid for taxes | 191 | (419) | 156 |
Supplemental disclosure of noncash operating, investing, and financing activities: | |||
Amounts accrued for property and equipment | 0 | 22 | 18 |
Cashless option exercise under company stock plan | 0 | 177 | 69 |
Release of Restricted Stock Units and Awards under company stock plan | $ 2,661 | $ 2,257 | $ 3,059 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Description of Business Immersion Corporation (the “Company”) was incorporated in 1993 in California and reincorporated in Delaware in 1999. The company focuses on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with products and experience the digital world around them. The Company has adopted a “hybrid” business model, under which it provides advanced tactile software, related tools, and technical assistance to certain customers; and offers licenses to the Company's patented intellectual property (“IP”) to other customers. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Immersion Corporation and its wholly-owned subsidiaries, Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Cash Equivalents The Company considers all highly liquid instruments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. Short-term Investments The Company’s short-term investments consist primarily of U.S treasury bills with an original or remaining maturity of greater than 90 days on the date of purchase. The Company classifies debt securities with readily determinable market values as “available-for-sale.” Even though the stated maturity dates of these debt securities may be one year or more beyond the balance sheet date, the Company has classified all debt securities as short-term investments as they are reasonably expected to be realized in cash or sold within one year. These investments are carried at fair market value with unrealized gains and losses considered to be temporary in nature reported as a separate component of other comprehensive income (loss) within stockholders’ equity. The Company recognizes an impairment charge in the consolidated statement of operations and comprehensive loss when a decline in value is judged to be other than temporary based on the specific identification method. Other-than-temporary impairment charges may exist when the Company has the intent to sell the security, will more likely than not be required to sell the security, or does not expect to recover the principal. Property and Equipment Property is stated at cost and is depreciated using the straight-line method over the estimated useful life of the related asset. The estimated useful lives are typically as follows: Computer equipment and purchased software 3 years Machinery and equipment 3-5 years Furniture and fixtures 5 years Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life. Long-lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of that asset may not be recoverable. An impairment loss would be recognized when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. Revenue Recognition The Company recognizes revenues in accordance with applicable accounting standards, including ASC 605-10-S99, “Revenue Recognition” (“ASC 605-10-S99”); ASC 605-25, “Multiple Element Arrangements” (“ASC 605-25”), and ASC 985-605, “Software-Revenue Recognition” (“ASC 985-605”). The Company derives its revenues from two principal sources: royalty and license fees, and development contract and service fees. As described below, management judgments, assumptions, and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of revenue for any period based on the judgments and estimates made by management. Specifically, in connection with each transaction, the Company must evaluate whether: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collectability is probable. The Company applies these criteria as discussed below. • Persuasive evidence of an arrangement exists . For a license arrangement, the Company requires a written contract, signed by both the customer and the Company. • Delivery has occurred . The Company delivers software electronically. Delivery occurs when the Company provides the customer access codes or “keys” that allow the customer to take immediate possession of the software. • The fee is fixed or determinable . The Company’s arrangement fee is based on the use of standard payment terms, which are those that are generally offered to the majority of customers. For transactions involving extended payment terms, the Company deems these fees not to be fixed or determinable for revenue recognition purposes and revenue is deferred until the fees become due and payable. • Collectability is probable. To recognize revenue, the Company must judge collectability of fees, which is done on a customer-by-customer basis pursuant to the Company’s credit review policy. The Company typically sells to customers with whom there is a history of successful collection. For new customers, the Company evaluates the customer’s financial condition and ability to pay. If it is determined that collectability is not probable based upon the credit review process or the customer’s payment history, revenue is recognized when payment is received. Royalty and license revenue — The Company licenses its patents and software to customers in a variety of industries such as mobility, gaming, automotive, and medical devices. Revenues that are derived from the sale of a licensee's products that incorporate the Company’s IP are classified as royalty revenues. The terms of the royalty agreements generally require licensees to give notification of royalties due to the Company within 30 – 45 days of the end of the quarter during which their related sales occur. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Certain royalties could be subject to change and may result in out of period adjustments depending on the specific terms of the arrangement. The Company also enters into fixed license fee arrangements. The Company recognizes fixed license fee revenue when earned under the terms of the agreements, which generally results in recognition on a straight-line basis over the expected term of the license. Development, services, and other revenue — Development, services, and other revenue are composed of engineering services (engineering services and/or development contracts), and in limited cases, post contract customer support (“PCS”). Engineering services revenues are recognized under the proportional performance accounting method based on the completion of the work to be performed or completed performance method. A provision for losses on contracts is made, if necessary, in the period in which the loss becomes probable and can be reasonably estimated. Revisions in estimates are reflected in the period in which the conditions become known. To date, such losses have not been significant. Revenue from PCS is typically recognized over the period of the ongoing obligation, which is generally consistent with the contractual term. Multiple element arrangements — The Company enters into multiple element arrangements in which customers purchase time-based non-exclusive licenses that cannot be resold to others, which include a combination of software and/or IP licenses, engineering services, and in limited cases PCS. For arrangements that are software based with an engineering services component, the services are generally not essential to the functionality of the software, and customers may purchase engineering services from the Company to facilitate the adoption of the Company’s technology, but they may choose to use their own resources or appoint other engineering service organizations to perform these services. For arrangements that are in substance subscription arrangements, the entire arrangement fee is recognized ratably over the contract term, subject to any limitations related to extended payment terms. For arrangements involving upfront fees for services and royalties earned by the Company based on units sold or sales volumes of the respective licensed products, and the services are performed ratably over the arrangement or are front-end loaded, the upfront fees are recognized ratably over the contract term, and royalties based on units sold or sales volume are recognized when they become fixed and determinable. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes per unit or sales volume driven royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Deferred Revenue Deferred revenue consists of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue. The amounts are primarily related to our fixed fee contracts which are recognized ratably over the license term (up to 10 years). Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. Advertising Advertising costs (including obligations under cooperative marketing programs) are expensed as incurred and included in sales and marketing expense. Advertising expense was as follows: Year ended December 31, 2017 2016 2015 (In thousands) Advertising expense $ 221 $ 102 $ 265 Research and Development Research and development costs are expensed as incurred. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized and are reversed at such time that realization is believed to be more likely than not. Software Development Costs Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. The Company considers technological feasibility to be established upon completion of a working model of the software. Because the Company believes its current process for developing software is essentially completed concurrently with the establishment of technological feasibility, no costs have been capitalized to date. Stock-based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. See Note 6 for further information regarding the Company’s stock-based compensation assumptions and expenses. Comprehensive Income Comprehensive income includes net income as well as other items of comprehensive income or loss. The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains and losses on short term investments, net of tax. Use of Estimates The preparation of consolidated financial statements and related disclosures in accordance with U.S. GAAP and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of income taxes including uncertain tax provisions, revenue recognition, stock-based compensation, and accruals for other liabilities. Actual results may differ materially from those estimates which were made based on the best information known to management at that time. Concentration of Credit Risks Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash, cash equivalents, short term investments, and accounts receivable. The Company is also subjected to a concentration of revenues given certain key licensees that contributed a significant portion of the Company's total revenue. See Note 15 for customer revenue concentration. The Company invests primarily in money market accounts and highly liquid debt instruments purchased with an original or remaining maturity of greater than 90 days on the date of purchase. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand. The Company licenses technology primarily to companies in North America, Europe, and Asia. To reduce credit risk, management performs periodic credit evaluations of its customers’ financial condition. The Company periodically evaluates potential credit losses to ensure adequate reserves are maintained, but historically the Company has not experienced any significant losses related to individual customers or groups of customers in any particular industry or geographic area. As such, the Company had zero reserves for the year ended December 31, 2017 and December 31, 2016 due to its low credit risk. Certain Significant Risks and Uncertainties The Company operates in multiple industries and its operations can be affected by a variety of factors. For example, management believes that changes in any of the following areas could have a negative effect on the Company's future financial position and results of operations: the mix of revenues; the loss of significant customers; fundamental changes in the technologies underlying the Company’s and its licensees’ products; market acceptance of the Company’s and its licensees’ products under development; development of sales channels; litigation or other claims in which the Company is involved; the ability to successfully assert its patent rights against others; the impact of changing economic conditions; the hiring, training, and retention of key employees; successful and timely completion of product and technology development efforts; and new product or technology introductions by competitors. Fair Value of Financial Instruments Financial instruments consist primarily of cash equivalents, short-term investments, accounts receivable and accounts payable. Cash equivalents and short term investments are stated at fair value based on quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The recorded cost of accounts receivable and accounts payable approximate the fair value of the respective assets and liabilities. Foreign Currency Translation The functional currency of the Company’s foreign subsidiaries is U. S. dollars. Accordingly, gains and losses from the translation of the financial statements of the foreign subsidiaries and foreign currency transaction gains and losses are included in earnings. Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09 “Stock Compensation: Scope of Modification Accounting” ("ASU 2017-09"). The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2017. The Company will adopt the standard in the first quarter of fiscal 2018, but does not expect the adoption of ASU 2016-19 will have a material impact on its condensed consolidated financial statements. In December 2016, the FASB issued ASU 2016-19 “Technical Corrections and Improvements”. The amendments in this update affect a wide variety of topics in the Accounting Standards Codification. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods in the annual period beginning after December 15, 2018. The Company will adopt the standard in the first quarter of fiscal 2018, but does not expect the adoption of ASU 2016-19 will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases: Topic 842” (“ASU 2016-02”), which supersedes the existing guidance for lease accounting in Topic 840, Leases. The FASB issued the ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. In September 2017, the FASB issued ASU 2017-13 "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)" ("ASU 2017-13)", which adds SEC paragraphs to the new revenue and leases sections of the Accounting Standards Codification (ASC or Codification) on the announcement the SEC Observer made at the July 20, 2017 EITF meeting, and supersedes certain SEC paragraphs in the Codification related to previous SEC staff announcements and moves other paragraphs, upon adoption of ASC 606 or ASC 842. ASU2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements but has not elected to early adopt the standard and would plan to implement the standard on January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers: Topic 606” (“ASU 2014-09”) which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of ASU 2014-09 is that 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. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers: Deferral of the Effective Date”, which deferred the effective date of ASU 2014-09 for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. In March 2016, the FASB issued ASU 2016-08 "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations" ("ASU 2016-08") which provides updates to revenue recognition guidance relating to considerations for reporting revenue gross versus net. In April 2016, the FASB issued ASU 2016-10 "Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing" ("ASU 2016-10"), which provides updates to revenue recognition guidance relating to performance obligations and accounting for licensing revenue. In May 2016, the FASB issued ASU 2016-12 "Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients" ("ASU 2016-12") which provides updates to revenue recognition guidance relating to scope and practical expedients for revenue recognition. In December 2016, the FASB issued ASU 2016-20 "Technical Corrections and Improvements to Topic 606" ("ASU 2016-20") which further provides updates to certain aspects of the revenue recognition guidance. In September 2017, the FASB issued ASU 2017-13 "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)" ("ASU 2017-13)", which adds SEC paragraphs to the new revenue and leases sections of the Accounting Standards Codification (ASC or Codification) on the announcement the SEC Observer made at the July 20, 2017 EITF meeting, and supersedes certain SEC paragraphs in the Codification related to previous SEC staff announcements and moves other paragraphs, upon adoption of ASC 606 or ASC 842. In November 2017, the FASB issued ASU2017-14 "Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606)" ("ASU 2017-14"). ASU 2017-14 amends SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, which bring existing guidance into conformity with Topic 606, Revenue from Contracts with Customers. The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company will adopt the new standard as of January 1, 2018 using the modified retrospective method rather than full retrospective method. The Company's revenue is primarily comprised of per-unit royalty revenue and fixed fee license revenue, along with less significant revenue earned from development, services, and other revenue. The expected impacts upon adoption and post-adoption for each revenue stream are as follows: Per-unit Royalty revenue Under current GAAP, the Company recognizes per-unit royalty revenue when royalty reports are received from its customers (typically one quarter in arrears). The Company expects a shift in the method and timing by which it recognizes per-unit royalty revenue under the new standard, as the Company will be required to estimate the amount of this revenue in the quarter when the customer sales transaction occurs. As a result, there will be variances between the estimated per-unit royalty revenue and that based on the actual sales reported by its customers. The Company will be required to adjust the estimate to reflect the actual sales upon receipt of royalty reports submitted by the licensees in the following quarter. Upon adoption of ASU 2014-09 on January 1, 2018, the Company will recognize the per-unit royalty revenue for customer transactions that occur in the fourth quarter of 2017 as an adjustment to accumulated deficit. Based on royalty reports received for the period and the estimates for those not yet received, the Company has estimated the impact on accumulated deficit will be $5.2 million . The Company also expects a shift in the method and timing of revenue recognition for contracts with minimum royalty arrangements. Under current GAAP, minimum royalties are recognized as revenue at the end of each reporting period (usually a calendar year) if the actual royalties reported by the customer for that reporting period are below the minimum royalty amount set forth in the contract. Under the new standard, minimum royalties are considered a fixed transaction price to which the Company will have an unconditional right once all performance obligations are satisfied. At the inception of a contract, the Company will be required to recognize all minimum royalties, since only the passage of time is required before payment of the minimum royalty is due. The Company determined that the contract asset to be established for the unbilled minimum royalties that exist as of January 1, 2018 will be immaterial. After adoption, the Company will record its unconditional right to minimum royalties as contract asset at the inception of the contract where the license is granted to the licensee, and present any associated contract assets and contract liabilities under one contract on a net basis in the statement of financial position. Fixed fee license revenue In accordance with current GAAP, fixed fee license revenue historically has been recognized ratably over the term of the license agreement. Under the new standard, the Company will be required to recognize fixed fee license revenue when it satisfies its performance obligations, which typically occurs upon the transfer of rights to the Company's technology at the point in time a contract is executed, and/or the transfer of rights to technology updates and/or new technologies developed over the contract term. In certain contracts, the Company provides to its customers access to both the patent portfolio that exists as of the contract signing as well as future patents that are to be issued throughout the contract term. In consideration of ASU 2014-09, the Company has concluded that, for such arrangements, it has two separate performance obligations being (a) patents in existence when the contract is signed for which revenue will be recognized up front and (b) patents to be issued, finalized, or approved over the contract term that will be made available to customers for which revenue will be recognized over the course of the contract term. In connection with the allocation of the transfer price between these two aforementioned performance obligations, the Company has developed a process to estimate the standalone price for each of the two performance obligations in these arrangements, considering a number of factors primarily based on the volume of the Company's patents outstanding as of the contract date as well as those which are expected to be filed and enforceable during the contract term. As of the date of this filing, the Company is in the process of finalizing this estimate and evaluating the performance of certain controls over the information used therein, and expects to complete the determination of its estimate in the first quarter of 2018. Upon review of the potential impact of this change in accounting, the Company has determined that the majority of its deferred revenue balance as of December 31, 2017 relates to fixed fee license revenue, and expects that a substantial portion of this balance will be recorded as an adjustment to accumulated deficit on January 1, 2018 upon adoption of ASU 2014-09. After adoption, the Company will account for and present any associated contract assets and contract liabilities under one contract on a net basis in the statement of financial position. Development, services, and other revenue The Company expects minimum changes on this revenue stream under the new standard. It will continue to recognize development, services, and other revenue when such service obligation is satisfied. The Company acknowledges that the conclusions are drawn from the specific facts and circumstances pertaining to its existing contracts. With the Company’s continuous evolution of technologies and its increasing ability to demonstrate the value of its innovations to licensees, the Company will need to assess the application of ASU 2014-09 for each new contract entered after the adoption date, and determine the appropriate revenue recognition on a case-by-case, industry-by-industry basis. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Cash Equivalents and Short-term Investments The financial instruments of the Company measured at fair value on a recurring basis are cash equivalents and short-term investments. The Company’s fixed income available-for-sale securities consist of high quality, investment grade securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly (Level 2) in determining fair value. The types of instruments valued based on quoted market prices in active markets include mostly money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. The types of instruments valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy and include U.S. treasury securities. The types of instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy. As of December 31, 2017 and 2016, the Company did not hold any Level 3 instruments. The Company recorded no other than temporary impairment charges in the years ended December 31, 2017 , 2016 , and 2015 . Financial instruments measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016 are listed in the table below: December 31, 2017 Total Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets: U.S. Treasury securities $ — $ 21,916 $ — $ 21,916 Money market funds 1,117 — — 1,117 Total assets at fair value $ 1,117 $ 21,916 $ — $ 23,033 The above table excludes $23.5 million of cash held in banks. December 31, 2016 Total Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets: U.S. Treasury securities $ — $ 32,907 $ — $ 32,907 Money market funds 32,031 — — 32,031 Total assets at fair value $ 32,031 $ 32,907 $ — $ 64,938 The above table excludes $24.8 million of cash held in banks. U.S. Treasury securities are classified as short-term investments, and money market accounts are classified as cash equivalents on the Company’s consolidated balance sheets. Short-term Investments December 31, 2017 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 21,939 $ — $ (23 ) $ 21,916 Total $ 21,939 $ — $ (23 ) $ 21,916 December 31, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 32,914 $ — $ (7 ) $ 32,907 Total $ 32,914 $ — $ (7 ) $ 32,907 The contractual maturities of the Company’s available-for-sale securities on December 31, 2017 and December 31, 2016 were all due within one year. There were no transfers of instruments between Level 1 and 2 during the years ended December 31, 2017 and 2016 . |
Accounts and Other Receivables
Accounts and Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts and Other Receivables | Accounts and Other Receivables December 31, 2017 2016 (In thousands) Trade accounts receivable $ 458 $ 1,084 Receivables from vendors and other 348 298 Accounts and other receivables $ 806 $ 1,382 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment December 31, 2017 2016 (In thousands) Computer equipment and purchased software $ 3,206 $ 3,489 Machinery and equipment 834 882 Furniture and fixtures 1,274 1,290 Leasehold improvements 3,920 3,917 Total 9,234 9,578 Less accumulated depreciation (6,084 ) (5,562 ) Property and equipment, net $ 3,150 $ 4,016 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities December 31, 2017 2016 (In thousands) Accrued legal $ 2,202 $ 3,096 Income taxes payable 219 164 Other current liabilities 1,475 1,149 Total other current liabilities $ 3,896 $ 4,409 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation The Company’s equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for talented employees, consultants, officers, and directors and to align stockholder and employee interests. The Company may grant options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other stock-based or cash-based awards to employees, officers, directors, and consultants. Under these programs, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. These options generally vest over 4 years and expire from 5 to 10 years from the date of grant. In addition to time based vesting, market condition based options are subject to a market condition: the closing price of the Company stock must exceed a certain level for a number of trading days within a specified timeframe or the options will be cancelled before their expiration. On June 2, 2017, the Company's stockholders approved an increase to the number of shares reserved for issuance by 3,476,850 shares. Restricted stock generally vests over one year. RSUs generally vest over 3 years. Awards granted other than an option or stock appreciation right shall reduce the common stock shares available for grant by 1.75 shares for every share issued. December 31, 2017 Common stock shares available for grant 3,254,051 Standard and market condition based stock options outstanding 3,550,072 Restricted stock awards outstanding 44,538 Restricted stock units outstanding 508,880 Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (“ESPP”). Under the ESPP, eligible employees may purchase common stock through payroll deductions at a purchase price of 85% of the lower of the fair market value of the Company’s stock at the beginning of the offering period or the purchase date. Participants may not purchase more than 2,000 shares in a six -month offering period or purchase stock having a value greater than $25,000 in any calendar year as measured at the beginning of the offering period. A total of 1,000,000 shares of common stock have been reserved for issuance under the ESPP. As of December 31, 2017 , 698,133 shares had been purchased since the inception of the ESPP in 1999. Under ASC 718-10, the ESPP is considered a compensatory plan and the Company is required to recognize compensation cost related to the fair value of the award purchased under the ESPP. Shares purchased under the ESPP for the year ended December 31, 2017 are listed below. Shares purchased under the ESPP for the year ended December 31, 2016 were 45,825 . The intrinsic value listed below is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Year Ended December 31, 2017 Shares purchased under ESPP 48,750 Average price of shares purchased under ESPP $ 6.74 Intrinsic value of shares purchased under ESPP $ 136,000 Summary of Standard Stock Options The following table sets forth the summary of standard stock option activity under the Company’s stock option plans for the years ended December 31, 2017 , 2016 , and 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Of Options Granted Aggregate Intrinsic Value of Options Exercised (In thousands) Outstanding at January 1, 2015 3,486,157 $ 8.30 Granted 525,840 10.15 $ 4.56 Exercised (239,071 ) 6.82 $ 1,186 Forfeited (116,425 ) 12.38 Expired (59,968 ) 13.75 Outstanding at December 31, 2015 3,596,533 8.45 Granted 815,794 7.85 3.67 Exercised (395,515 ) 6.48 918 Forfeited (344,541 ) 9.05 Expired (251,150 ) 8.87 Outstanding at December 31, 2016 3,421,121 8.44 Granted 489,568 8.48 3.82 Exercised (70,608 ) 7.34 151 Forfeited (361,687 ) 9.11 Expired (200,403 ) 15.04 Outstanding at December 31, 2017 3,277,991 7.99 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money. Information regarding standard stock options outstanding at December 31, 2017 , 2016 , and 2015 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (In millions) December 31, 2015 Options outstanding 3,596,533 $ 8.45 4.23 $ 12.5 Options vested and expected to vest using estimated forfeiture rates 3,452,487 8.36 4.16 12.3 Options exercisable 2,252,744 7.59 3.56 9.9 December 31, 2016 Options outstanding 3,421,121 $ 8.44 3.99 $ 9.0 Options vested and expected to vest using estimated forfeiture rates 3,223,919 8.43 3.87 8.5 Options exercisable 2,131,268 8.22 3.10 6.4 December 31, 2017 Options outstanding 3,277,991 $ 7.99 2.88 $ 2.2 Options vested and expected to vest using estimated forfeiture rates 3,175,002 7.99 2.78 2.2 Options exercisable 2,633,990 7.94 2.14 2.1 Additional information regarding standard options outstanding as of December 31, 2017 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $3.72 - $3.72 938 1.54 $ 3.72 938 $ 3.72 3.85 - 3.85 600,000 1.87 3.85 600,000 3.85 4.95 - 6.66 374,068 4.13 6.34 263,312 6.23 6.86 - 8.09 405,525 4.66 7.82 206,030 7.83 8.13 - 8.65 386,949 4.00 8.54 196,434 8.56 8.70 - 9.19 378,506 2.51 9.04 279,659 9.10 9.20 - 9.20 44,300 0.54 9.20 44,300 9.20 9.53 - 9.53 734,000 1.97 9.53 734,000 9.53 9.61 - 12.48 336,414 2.64 11.82 292,026 11.92 12.49 - 14.02 17,291 1.02 13.74 17,291 13.74 $3.72 - $14.02 3,277,991 2.88 $ 7.99 2,633,990 $ 7.94 Summary of Market Condition Based Stock Options In 2014, the Company began granting options that are subject to both time-based vesting and a market condition. For these options, the closing price of the Company stock must exceed a certain level for a number of trading days within a specified timeframe or the options will be cancelled before the seven -year life of the options. The following table sets forth the summary of the market condition based option activity under the Company’s stock option plans for the years ended December 31, 2017 , 2016 and 2015 . Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Of Options Granted Aggregate Intrinsic Value of Options Exercised (In thousands) Outstanding at January 1, 2015 50,000 $ 11.94 Granted 150,000 8.09 3.64 Exercised — Forfeited — Expired — Outstanding at December 31, 2015 200,000 9.05 Granted 75,000 9.00 3.68 Exercised — Forfeited (50,000 ) 11.94 Expired — Outstanding at December 31, 2016 225,000 8.39 Granted 120,830 8.65 3.12 Exercised — Forfeited (73,749 ) 8.64 Expired — Outstanding at December 31, 2017 272,081 8.44 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money. Information regarding these market condition based stock options outstanding at December 31, 2017 , 2016 and 2015 is summarized below: Number Weighted Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (In millions) December 31, 2015 Options outstanding 200,000 $ 9.05 5.92 $ 0.5 Options vested and expected to vest using estimated forfeiture rates 184,125 9.12 5.90 0.5 Options exercisable — — 0.00 — December 31, 2016 Options outstanding 225,000 $ 8.39 5.50 $ 0.5 Options vested and expected to vest using estimated forfeiture rates 209,141 8.38 5.49 0.5 Options exercisable 65,625 8.09 5.17 0.2 December 31, 2017 Options outstanding 272,081 $ 8.44 1.91 $ — Options vested and expected to vest using estimated forfeiture rates 272,081 8.44 1.91 — Options exercisable 272,081 8.44 1.91 — Additional information regarding market condition based stock options outstanding as of December 31, 2017 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $8.09 - $8.09 135,000 1.91 $ 8.09 135,000 $ 8.09 8.65 - 8.65 84,581 1.91 8.65 84,581 8.65 9.00 - 9.00 52,500 1.91 9.00 52,500 9.00 $8.09 - $9.00 272,081 1.91 $ 8.44 272,081 $ 8.44 Summary of Restricted Stock Units RSU activity for the years ended December 31, 2017 , 2016 , and 2015 was as follows: Number of Shares Weighted Average Grant Date Fair Value Fair Value of Released RSU’s (In thousands) Outstanding at January 1, 2015 564,891 Awarded 281,290 $ 8.16 Released (299,277 ) $ 2,626 Forfeited (59,481 ) Outstanding at December 31, 2015 487,423 Awarded 320,880 8.67 Released (247,556 ) 2,118 Forfeited (133,555 ) Outstanding at December 31, 2016 427,192 Awarded 483,015 8.46 Released (198,058 ) 1,991 Forfeited (203,269 ) Outstanding at December 31, 2017 508,880 Information regarding RSU’s at December 31, 2017 , 2016 , and 2015 is summarized below: Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (In millions) Fair Value (In millions) December 31, 2015 RSUs outstanding 487,423 0.90 $ 5.7 $ 5.7 RSUs vested and expected to vest using estimated forfeiture rates 414,934 0.87 4.8 December 31, 2016 RSUs outstanding 427,192 0.93 $ 4.5 $ 4.5 RSUs vested and expected to vest using estimated forfeiture rates 349,759 0.80 3.7 December 31, 2017 RSUs outstanding 508,880 1.30 3.6 $ 3.6 RSUs vested and expected to vest using estimated forfeiture rates 414,847 1.16 2.9 The aggregate intrinsic value is calculated as the market value as of the end of the reporting period. Summary of Restricted Stock Awards Restricted stock award activity for the years ended December 31, 2017 , 2016 , and 2015 was as follows: Number of Shares Weighted Average Grant Date Fair Value Total Fair Value of Awards Released (In thousands) Outstanding at January 1, 2015 35,364 $ 10.97 Awarded 21,356 12.26 Released (35,364 ) 10.97 $ 434 Forfeited — Outstanding at December 31, 2015 21,356 12.26 Awarded 77,540 6.52 Released (21,356 ) 12.26 139 Forfeited — Outstanding at December 31, 2016 77,540 6.52 Awarded 44,538 8.65 Released (77,540 ) 6.52 671 Forfeited — Outstanding at December 31, 2017 44,538 8.65 Stock-based Compensation Valuation and amortization methods — The Company uses the Black-Scholes-Merton option pricing model (“Black-Scholes model”), single-option approach to determine the fair value of standard stock options and ESPP shares. All share-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates if necessary, in subsequent periods if actual forfeitures differ from these estimates. The determination of the fair value of share-based payment awards on the date of grant using an option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include actual and projected employee stock option exercise behaviors that impact the expected term, the Company’s expected stock price volatility over the term of the awards, risk-free interest rate, and expected dividends. Expected term — The Company estimates the expected term of options granted by calculating the average term from the Company’s historical stock option exercise experience. The expected term of ESPP shares is the length of the offering period. Expected volatility — The Company estimates the volatility of its common stock taking into consideration its historical stock price movement and its expected future stock price trends based on known or anticipated events. Risk-free interest rate — The Company bases the risk-free interest rate that it uses in the option pricing model on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. Expected dividend — The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option-pricing model. Forfeitures — The Company is required to estimate future forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. The Company uses the Monte-Carlo Simulation model to value the stock options with a market condition. Valuation techniques such as a Monte-Carlo Simulation model have been developed to value path-dependent awards. The Monte-Carlo Simulation model is a generally accepted statistical technique used, in this instance, to simulate a range of future stock prices for the Company. The assumptions used to value option grants under the Company’s stock plans are as follows: Standard Stock Options 2017 2016 2015 Expected life (in years) 4.6 4.5 4.7 Interest rate 2.0 % 1.2 % 1.4 % Volatility 52 % 56 % 56 % Dividend yield — % — % — % Market Condition Based Stock Options 2017 2016 2015 Expected life (in years) 7.0 7.0 7.0 Interest rate 2.0 % 1.6 % 1.9 % Volatility 55 % 59 % 65 % Dividend yield — % — % — % Employee Stock Purchase Plan 2017 2016 2015 Expected life (in years) 0.5 0.5 0.5 Interest rate 0.9 % 0.4 % 0.1 % Volatility 48 % 53 % 48 % Dividend yield — % — % — % Total stock-based compensation recognized in the consolidated statements of income is as follows: Year Ended December 31, 2017 2016 2015 Income Statement Classifications (In thousands) Sales and marketing $ 1,025 $ 1,280 $ 1,116 Research and development 981 1,297 1,303 General and administrative 4,096 3,534 3,051 Total $ 6,102 $ 6,111 $ 5,470 As of December 31, 2017 , there was $5.5 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options, restricted stock awards and RSU’s granted to the Company’s employees and directors. This cost will be recognized over an estimated weighted-average period of approximately 2.33 years for standard options, 0.42 years for restricted stock awards and 2.36 years for RSU’s. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) are included in the table below. Year Ended December 31, 2017 Unrealized Gains and Losses on Available-for Sale Securities Foreign Currency Items Total (In thousands) Beginning balance $ (7 ) $ 122 $ 115 Other comprehensive income before reclassifications — — — Amounts reclassified from accumulated other comprehensive income (loss) (16 ) (16 ) Net current period other comprehensive income (loss) (16 ) — (16 ) Ending Balance $ (23 ) $ 122 $ 99 Stock Repurchase Program On November 1, 2007, the Company announced its board of directors’ authorized the repurchase of up to $50 million of the Company’s common stock. In addition, on October 22, 2014, the board of directors authorized another $30 million under the share repurchase program. The Company may repurchase its stock for cash in the open market in accordance with applicable securities laws. The timing and amount of any stock repurchase will depend on share price, corporate and regulatory requirements, economic and market conditions, and other factors. The stock repurchase authorization has no expiration date, does not require the Company to repurchase a specific number of shares, and may be modified, suspended, or discontinued at any time. During the year ended December 31, 2017 , the Company repurchased 48,687 shares for $328,000 at an average cost of $6.73 net of transaction costs through open market repurchases. During the year ended December 31, 2016 , the Company repurchased 105,750 shares for $729,000 at an average cost of $6.90 per share, net of transaction costs through open market repurchases. There were no stock repurchases in 2015 under this stock repurchase program. As of December 31, 2017 , the program remains available with approximately $33.4 million that may yet be purchased under it. Stockholders Right Plan On December 26, 2017, the Board declared a dividend of one right (a “Right”) for each of the Company's issued and outstanding shares of common stock, par value $0.001 per share. The dividend was paid to the stockholders of record at the close of business on January 8, 2018 (the “Record Date”). Each Right entitles the holder to purchase from the Company one one-thousandth of a share of the Company’s Series B Junior Participating Preferred Stock (the “Preferred Stock”) at a price of $30.00 (the “Exercise Price”), subject to certain adjustments and contingently issuable. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs In the fourth quarter of 2017, the Company executed a series of restructuring actions designed to sharpen the Company’s strategic focus and establish a more cost-efficient operating structure. The restructuring activities primarily focused on a reduction of the Company’s global workforce in conjunction with steps taken to: • Significantly reduce the Company’s presence in China and focus its efforts on Mobile OEM licensing in that region; • Cease its Mobile Advertising activities; and • Narrow its focus in the Gaming and VR/AR markets on development efforts to bolster its IP licensing model in these markets The restructuring plan is expected to increase internal efficiencies through the consolidation of certain sites of operation and has resulted in the elimination of approximately 56 positions, or 41% , of the worldwide employee base. For the year ended December 31, 2017, the Company recorded restructuring expenses of $1.6 million . The following table summarizes the total expenses recorded related to the 2017 restructuring activities reflected in the consolidated statements of operations by type of activity. There were no restructuring costs in 2016 and 2015. Twelve months ended December 31, 2017 (in Thousands) Employee Separation Costs Asset-Related Charges Other Total Restructuring $ 1,515 $ 22 $ 82 $ 1,620 Employee separation costs are associated with worldwide headcount reductions. Asset-related charges consist primarily of accelerated depreciation costs related to the closure of one of the Company’s offices in China. Accelerated depreciation costs represent the difference between the depreciation expense as determined using the useful life of the assets prior to the restructuring activities and the revised useful life resulting from the restructuring activities. Other expenses consist primarily of lease termination expenses related to the closure of one of the Company’s offices in China. The following table presents a reconciliation of the restructuring reserve recorded within accrued liabilities on the Company’s consolidated balance sheet for year ended December 31, 2017: Twelve months ended December 31, 2017 (in Thousands) Employee Separation Costs Asset-Related Charges Other Total Liability, beginning of period $ — $ — $ — $ — Charges 1,515 22 82 1,620 Non-cash activity 7 (22 ) (25 ) (41 ) Liability end of period 1,522 — 57 1,579 The Company expects to pay substantially all accrued amounts related to the 2017 restructuring activities in the first quarter of 2018. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During the year ended December 31, 2009, the Company sold its 3D product line including inventory, fixed assets, and intangibles and recorded a gain of discontinued operations of $187,000 at the time of the sales. Total initially negotiated consideration for the sales was $2.7 million which comprised of $320,000 in cash paid in the year ended December 31, 2009 and notes receivable of $2.4 million which were payable through the year ended December 31, 2013. Given the inherent uncertainty relative to the credit worthiness of the buyers, the Company concluded that they would recognize income from the notes receivable as proceeds were received. The operations of the 3D product line were classified as discontinued operations in the period of the initial sales transactions. In the year ended December 31, 2016 , a final settlement payment of $1.0 million was received relative to these sales, resulting in a gain of $649,000 of discontinued operations, net of tax of $351,000 . There were no discontinued operations during the years ended December 31, 2017 and 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provisions from continuing operations consisted of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Income (loss) from continuing operations before provisions for income taxes $ (44,811 ) $ (14,509 ) $ 4,449 Provision for income taxes from continuing operations (480 ) (25,521 ) (1,591 ) Effective tax rate (1.1 )% (175.9 )% 35.8 % The 2017 provision for income tax from continuing operations resulted primarily from estimated foreign taxes and foreign withholding tax expense. The 2016 provision for income tax from continuing operations resulted primarily from the application of a full federal valuation allowance against deferred tax assets. The 2015 provision for income tax from continuing operations resulted primarily from the Company’s federal and foreign tax recognized at statutory rates, adjusted for the tax impact of non-deductible permanent items including stock-based compensation expenses and foreign withholding taxes. The 2015 provision for income tax from continuing operations also includes non-cash tax expense based on intercompany profit that resulted from the sale of certain IP rights in 2015, and also includes an increase to the valuation allowance against certain of the Company’s deferred tax assets. In October 2016, the FASB issued ASU 2016-16 “Income Taxes: Topic 740, Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”) which simplifies certain aspects of the income tax accounting for Intra-Entity Transfers of Assets. Under current GAAP, the tax effects of intra-entity asset transfers (intercompany sales) are deferred until the transferred asset is sold to a third party or otherwise recovered through use. This is an exception to the principle in ASC 740, Income Taxes, that generally requires comprehensive recognition of current and deferred income taxes. ASU 2016-16 allows a reporting entity to recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The standard is effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted only in the first interim period of 2017. The Company elected to early adopt ASU 2016-16 at the beginning of the first quarter of 2017 for the benefit of simplifying its accounting for intra-entity asset transfers. As required by the FASB in adopting the new standard, the company applied the ASU on a modified retrospective basis which resulted in a cumulative-effect adjustment to the accumulated deficit as of January 1, 2017 for the recognition of the income tax consequences of intra-entity transfers that occurred prior to January 1, 2017. As such, previously issued balance sheets have not been retrospectively adjusted. The adoption resulted in the decrease of $7.0 million in the Company’s short-term and long-term prepaid income taxes and a corresponding increase to the accumulated deficit on the Company’s condensed consolidated balance sheet as of January 1, 2017. In March 2016, the FASB issued ASU 2016-09 “Compensation - Stock Compensation: Topic 718” (“ASU 2016-09”) which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The standard is effective for periods beginning after December 15, 2016, with early adoption permitted. The Company elected to adopt ASU 2016-09 on a prospective basis beginning in the first quarter of 2017. Upon adoption, the “without” basis NOL deferred tax asset was adjusted for historical excess benefits to match the “with” basis NOL deferred tax asset, offset by the full valuation allowance. Subsequent to the adoption, all stock option activities are accounted for discretely in the quarter that occur. As a result of the adoption, the previously unrecognized US excess tax benefits of $3.5 million were recorded as a deferred tax asset which was fully offset by valuation allowance resulting in no impact to retained earnings. Additionally, due to the full valuation allowance on our federal deferred tax assets, no excess benefits have been reported discretely in the current year. As permitted by the ASU, the Company continues to use an estimated forfeiture rate in calculating stock based compensation expense. On July 27, 2015, a U.S. Tax Court opinion (Altera Corporation et. al v. Commissioner) concerning the treatment of stock-based compensation expense in an intercompany cost sharing arrangement was issued. In its opinion, the U.S. Tax Court accepted Altera's position of excluding stock-based compensation from its intercompany cost sharing arrangement. On February 19, 2016, the IRS appealed the ruling to the U.S. Court of Appeals for the Ninth Circuit. Although the IRS has appealed the decision, based on the findings of the US Tax Court, the Company has concluded that it is more likely than not that the decision will be upheld and accordingly has excluded stock-based compensation from intercompany charges during the period. The Company will continue to monitor ongoing developments and potential impacts to its consolidated financial statements. The Company reported pre-tax book income or loss from continuing operations of: Year Ended December 31, 2017 2016 2015 (In thousands) Domestic $ (23,994 ) $ (14,656 ) $ 21,160 Foreign (20,817 ) 147 (16,711 ) Total $ (44,811 ) $ (14,509 ) $ 4,449 The benefit or (provisions) for income taxes from continuing operations consisted of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Current: United States federal $ — $ (1,649 ) $ (1,426 ) State and local (5 ) 859 (12 ) Foreign (448 ) (442 ) (389 ) Total current $ (453 ) $ (1,232 ) $ (1,827 ) Deferred: United States federal — (24,261 ) 585 State and local — — — Foreign (27 ) (28 ) (349 ) Total deferred (27 ) (24,289 ) 236 $ (480 ) $ (25,521 ) $ (1,591 ) In 2017 , due to the adoption of ASU 2016-09, the Company's income tax payable was decreased by the tax benefit related to stock options. Prior to the adoption, in 2016 and 2015 the Company’s income tax payable was not decreased by the tax benefit related to stock options. In those years, the Company included only the direct tax effects of employee stock incentive plans in calculating the benefit, which was recorded to additional paid-in capital. Deferred tax assets and liabilities are recognized for the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, tax losses, and credit carryforwards. Significant components of the net deferred tax assets and liabilities consisted of: December 31, 2017 2016 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 13,394 $ 15,337 State income taxes 1 1 Deferred revenue 5,349 458 Research and development and other credits 11,447 11,418 Reserves and accruals recognized in different periods 3,088 5,397 Basis difference in investment 583 969 Capitalized R&D expenses 3,623 4,569 Depreciation and amortization 413 585 Deferred rent 183 306 Other — 2 Total deferred tax assets 38,081 39,042 Valuation allowance (37,680 ) (38,683 ) Net deferred tax assets 401 359 Foreign credits (43 ) (33 ) Net deferred tax liabilities (43 ) (33 ) Net deferred taxes $ 358 $ 326 On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Act”) was passed into law. Among other changes, the new legislation decreases the corporate federal income tax rate from 35% to 21% effective January 1, 2018. Under U.S. GAAP, changes in tax rates and tax law typically are accounted for in the period of enactment and deferred tax assets and liabilities are measured at the enacted tax rate. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the federal tax rate change and other tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, but the company is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provision estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In accordance with SAB 118, the Company recorded a $12.9 million reduction to deferred tax assets and related valuation allowance in connection with the re-measurement of certain deferred tax assets and liabilities, resulting in no impact to its results of operations. The Company estimated that no current tax expense should be recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings, a provisional estimate at December 31, 2017. Additional work is necessary to complete a more detailed analysis of our deferred tax assets and liabilities and our historical foreign earnings as well as potential correlative adjustments. For the Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Act, a provisional estimate could not be made as the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. Given the significant complexity of the Act, anticipated guidance from the Internal Revenue Service about implementing the Act, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board related to the Act, the Company’s estimates may be adjusted in future periods. Any subsequent adjustment to estimates will be recorded to current tax expense in the quarter of 2018 when the Company’s analysis is complete and the Company is able to complete its accounting for all aspects of the Tax Act. The Company accounts for deferred taxes under ASC Topic 740, “Income Taxes” (“ASC 740”) which requires a reduction of the carrying amounts of deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the ASC 740 more-likely-than-not realization ("MLTN") threshold criterion. This assessment considers matters such as future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The evaluation of the recoverability of the deferred tax assets requires that the Company weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax assets will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. As of December 31, 2017, based on its assessment of the realizability of its deferred tax assets, the Company continued to maintain a full valuation allowance against all of its federal and state, and certain of its foreign, net deferred tax assets. In the fourth quarter of 2016 the Company established a full valuation allowance against all of its net federal deferred tax assets. In performing its analysis, the Company considered both positive and negative evidence of the realizability of its deferred tax assets, and considered recent results of operations, scheduled reversals of deferred tax liabilities, projected future income, and available tax planning strategies. A significant piece of negative evidence evaluated was the cumulative loss incurred by the Company over the three-year period ended December 31, 2016 (which arose in the Company’s fourth quarter of 2016). When performing the evaluation of the cumulative loss, the Company considered the book loss as reported, as well as permanent differences and one-time gains and losses not indicative of future business activities. The Company determined that the three-year cumulative loss constitutes negative objective evidence, limiting the Company’s ability to consider other evidence, such as the Company’s projections for future growth. As a result, the Company concluded that it would be appropriate to record a non-cash charge of $28.1 million as additional valuation allowance in the fourth quarter of 2016, thereby establishing a full valuation allowance against all of its net federal deferred tax assets. The Company continued to maintain a full valuation allowance on its state and certain of its foreign net deferred tax assets. As of December 31, 2017 , the net operating loss carryforwards for federal and state income tax purposes were approximately $51.4 million and $53.2 million , respectively. The federal net operating losses expire between 2019 and 2037 and the state net operating losses begin to expire in 2028 . The Company also has net operating loss carryforwards from Ireland of $3.2 million that can be carried forward indefinitely and do not expire. As of December 31, 2017 , the Company had federal and state tax credit carryforwards of approximately $10.0 million and $2.1 million , respectively, available to offset future tax liabilities. The federal credit carryforwards will expire between 2018 and 2037 and the California tax credits will carryforward indefinitely. In addition, as of December 31, 2017 , the Company has Canadian research and development credit carryforwards of $1.7 million , which will expire at various dates through 2037 . These operating losses and credit carryforwards have not been reviewed by the relevant tax authorities and could be subject to adjustment upon examinations. Section 382 of the Internal Revenue Code (“IRC Section 382”) imposes limitations on a corporation’s ability to utilize its net operating losses and credit carryforwards if it experiences an “ownership change” as defined by IRC Section 382. Utilization of a portion of the Company’s federal net operating loss carryforward was limited in accordance with IRC Section 382, due to an ownership change that occurred during 1999. This limitation has fully lapsed as of December 31, 2010. As of December 31, 2017 , the Company conducted an IRC Section 382 analysis with respect to its net operating loss and credit carryforwards and determined there was no limitation. There can be no assurance that future issuances of the Company’s securities will not trigger limitations under IRC Section 382 which could limit utilization of these tax attributes. For purposes of the reconciliation between the provision for income taxes at the statutory rate and the effective tax rate, a national U.S. 35% rate is applied as follows: 2017 2016 2015 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Sale of IP rights to foreign subsidiary — % (13.8 )% 22.5 % Benefit from foreign losses — % — % 7.8 % Foreign withholding (0.2 )% (1.2 )% 0.5 % Stock compensation expense (2.0 )% (6.6 )% 5.8 % Meals & entertainment — % — % 0.1 % Foreign rate differential (17.0 )% (1.2 )% (24.0 )% Prior year true-up items (0.1 )% (0.3 )% 1.7 % Tax reserves (0.1 )% 1.8 % 3.9 % Loss on foreign share transfer — % — % 5.9 % Credits 0.4 % 1.6 % (35.5 )% State Refunds — % 3.8 % — % Other — % (1.6 )% 3.9 % 2017 Tax Act impact - federal rate change (28.7 )% — % — % Valuation allowance 11.6 % (193.4 )% 8.2 % Effective tax rate (1.1 )% (175.9 )% 35.8 % Undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and accordingly, no provision for federal and state income taxes has been provided thereon. Upon distribution of those earnings, the Company would be subject to withholding taxes payable to various foreign countries. Although the mandatory deemed repatriation tax has removed U.S. federal taxes on distributions to the U.S., the Company continues to evaluate the expected manner of recovery to determine whether or not to continue to assert indefinite reinvestment on a part or all the foreign undistributed earnings. This requires the Company to re-evaluate the existing short and long-term capital allocation its reinvestment policies in light of the 2017 Act and calculate the tax cost that is incremental to the deemed repatriation tax (e.g. foreign withholding, state income taxes) of repatriating cash to the U.S. While the provisional tax expense for the year ended December 31, 2017 is based upon an assumption that foreign undistributed earnings are indefinitely reinvested, the Company’s plan may change upon the completion of the analysis of the impact of the 2017 Act and completion of the calculation of the incremental tax effects on the repatriation of foreign undistributed earnings. In the event the Company determines not to continue to assert the permanent reinvestment of part or all of foreign undistributed earnings, such a determination could result in the accrual and payment of additional foreign, state and local taxes. The Company was unable to determine a reasonable estimate of the tax liability, if any, under the Tax Act for its remaining outside basis difference or evaluate how the Tax Act will affect its existing accounting position to indefinitely reinvest unremitted foreign earnings. The Company will continue to apply its existing accounting under ASC 740 for this matter.” The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases, and other information. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 2017 2016 2015 (In thousands) Balance at beginning of year $ 6,232 $ 6,285 $ 1,744 Gross increases for tax positions of prior years — — 141 Gross decreases for federal tax rate change for tax positions of prior years (1,670 ) (22 ) (15 ) Gross increases for tax positions of current year 110 111 4,415 Lapse of statute of limitations — (142 ) — Balance at end of year $ 4,672 $ 6,232 $ 6,285 The unrecognized tax benefits relate primarily to federal and state research and development credits and intercompany profit on the transfer of certain IP rights to one of the Company’s foreign subsidiaries as part of the Company’s tax reorganization described above. The Company’s policy is to account for interest and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2017 , the Company accrued interest or penalties related to uncertain tax positions in the amount of $10,000 . As of December 31, 2017 , the total amount of unrecognized tax benefits that would affect the Company’s effective tax rate, if recognized, is $97,000 . Because the Company has net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state and foreign taxing authorities may examine the Company’s tax returns for all years from 1998 through the current period. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock and RSUs. Diluted net income (loss) per share is computed using the weighted average common shares outstanding for the period plus dilutive potential shares including assumed release of unvested restricted stock and RSUs, assumed exercise of stock options, and assumed issuance of common stock under ESPP using the treasury stock method. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share: Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ (45,291 ) $ (40,030 ) $ 2,858 Income from discontinued operations, net of tax $ — $ 649 $ — Net income (loss) used in computing basic net income (loss) per share $ (45,291 ) $ (39,381 ) $ 2,858 Denominator: Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) 29,179 28,759 28,097 Dilutive potential common shares: Stock options, ESPP, Restricted Stock and RSUs — — 918 Shares used in computation of diluted net income (loss) per share 29,179 28,759 29,015 Basic net income (loss) per share: Continuing Operations $ (1.55 ) $ (1.39 ) $ 0.10 Discontinued Operations $ — $ 0.02 $ 0.00 Total $ (1.55 ) $ (1.37 ) $ 0.10 Diluted net income (loss) per share: Continuing Operations $ (1.55 ) $ (1.39 ) $ 0.10 Discontinued Operations $ — $ 0.02 $ 0.00 Total $ (1.55 ) $ (1.37 ) $ 0.10 The Company includes the underlying market condition stock options in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and excludes such options if the performance condition has not been met. For the year ended December 31, 2015, options to purchase approximately 1.2 million shares of common stock with an exercise price greater than the average fair market value of the Company’s stock of $11.16 per share were not included in the calculation because the effect would have been anti-dilutive. As of December 31, 2017 and 2016 , the Company had securities outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net loss per share for the year ended December 31, 2017 and 2016 , since their effect would have been anti-dilutive. These outstanding securities consisted of the following: December 31, 2017 2016 Standard and market condition stock options outstanding 3,550,072 3,646,121 Restricted stock awards outstanding 44,538 77,540 RSUs outstanding 508,880 427,192 ESPP 14,425 17,506 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has a 401(k) tax-deferred savings plan under which eligible employees may elect to have a portion of their salary deferred and contributed to the 401(k) plan. Contributions may be matched by the Company at its discretion. The Company matched 50% of the employee’s contribution up to $4,000 for 2017 and 25% of the employee's contribution up to $3,000 for 2016. From 2008 to 2015, the Company matched 25% of the employee's contribution up to $2,000 for every year. Year ended December 31, 2017 2016 2015 (In thousands) Company contribution to 401 (k) plan $ 259 $ 172 $ 127 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Company leases several of its facilities under non-cancelable operating lease arrangements that expire at various dates through 2023 . On November 12, 2014, the Company entered into an amendment to the lease of its primary facilities. The amendment terminated the prior lease of a San Jose, California facility of approximately 33,000 square feet as of May 2015 , which had been scheduled to expire in December 2016 . It also began the current lease of a San Jose, California facility of approximately 42,000 square feet as of February 2015. The lease contains provisions for leasehold improvement incentives and expires as of April 2023 and can be extended to April 2028 . Minimum future lease payments obligations are as follows: Operating Leases (In thousands) 2018 1,306 2019 943 2020 868 2021 894 2022 921 Thereafter 310 Total $ 5,242 Rent expense was as follows: Year ended December 31, 2017 2016 2015 (In thousands) Rent expense $ 1,307 $ 1,283 $ 1,291 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies From time to time, the Company receives claims from third parties asserting that the Company’s technologies, or those of its licensees, infringe on the other parties’ IP rights. Management believes that these claims are without merit. Additionally, periodically, the Company is involved in routine legal matters and contractual disputes incidental to its normal operations. In management’s opinion, the resolution of such matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations, or liquidity. In the normal course of business, the Company provides indemnification of varying scope to customers, most commonly to licensees in connection with licensing arrangements that include our IP, although these provisions can cover additional matters. Historically, costs related to these guarantees have not been significant, and the Company is unable to estimate the maximum potential impact of these guarantees on its future results of operations. On April 28, 2017, Immersion Corporation and Immersion Software Ireland Limited (collectively, “Immersion”) received a letter from Samsung Electronics Co. (“Samsung”) requesting that Immersion reimburse Samsung with respect to withholding tax and penalties imposed on Samsung by the Korean tax authorities following an investigation where the tax authority determined that Samsung failed to withhold taxes on Samsung’s royalty payments to Immersion Software Ireland from 2012 to 2016. On July 12, 2017, Immersion filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes and penalties. On September 29, 2017, Samsung filed an arbitration demand with the International Chamber of Commerce against Immersion demanding that Immersion reimburse Samsung for the imposed tax and penalties that Samsung paid to the Korean tax authorities. Samsung is requesting that Immersion pay Samsung the amount of KRW 7,841,324,165 (approximately $6.3 million ) plus interest from and after May 2, 2017, plus the cost of the arbitration including legal fees. The Company denies liability, and have asked the International Chamber of Commerce to postpone the arbitration until the tax appeal is resolved. The arbitration panel conducted an initial status conference on February 7, 2018. The panel denied our motion and has proposed a procedural schedule with a hearing in July 2018. Immersion believes that there are valid defenses to all of the claims from the Korean tax authorities and that Samsung’s claims are without merit. Immersion intends to vigorously defend against these claims and as a result, Immersion has concluded that the likelihood of a material charge resulting from this claim is remote. In the event Samsung were to prevail in the arbitration in advance of the conclusion of the appeal with the Korea Tax Tribunal, Immersion could be required to make a payment to Samsung even though it would later be reimbursed should Immersion prevail in the appeal. On October 16, 2017, Immersion received a letter from LG Electronics Inc. (“LGE”) requesting that Immersion reimburse LGE with respect to withholding tax imposed on LGE by the Korean tax authorities following an investigation where the tax authority determined that LGE failed to withhold on LGE’s royalty payments to Immersion Software Ireland from 2012 to 2014. On November 3, 2017, Immersion filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes. Immersion believes that there are valid defenses to the claims raised by the Korean tax authorities and that LG’s claims are without merit. The Company intends to vigorously defend itself against these claims and as a result, has concluded that the likelihood of a material charge resulting from the claim from LG to be remote. |
Segment Reporting, Geographic I
Segment Reporting, Geographic Information, and Significant Customers | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting, Geographic Information, and Significant Customers | Segment Reporting, Geographic Information, and Significant Customers Segment Information The Company develops, licenses, and supports a wide range of software and IP that more fully engage users’ sense of touch when operating digital devices. The Company focuses on the following target application areas: mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical; and commercial. The Company manages these application areas in one operating and reporting segment with only one set of management, development, and administrative personnel. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM approves budgets and allocates resources to and assesses the performance of the Company using information about its revenue and operating loss. There is only one segment that is reported to management. Revenue by Market Area The following is a summary of revenues by market areas. Revenue as a percentage of total revenues by market was as follows: Years Ended December 31, 2017 2016 2015 Mobile, Wearables, and Consumer 48 % 57 % 62 % Gaming Devices 31 % 24 % 24 % Automotive 15 % 7 % 7 % Medical 6 % 12 % 7 % Total 100 % 100 % 100 % Revenue by Region The following is a summary of revenues by geographic areas. Revenues are broken out geographically by the location of the customer. Geographic revenue as a percentage of total revenues by region was as follows: Years Ended December 31, 2017 2016 2015 North America 22 % 32 % 28 % Europe 15 % 8 % 5 % Asia 63 % 60 % 67 % Total 100 % 100 % 100 % Geographic revenue as a percentage of total revenues by country was as follows: Years Ended December 31, 2017 2016 2015 Japan 39 % 11 % 14 % United States of America 22 % 26 % 27 % Korea 18 % 47 % 46 % Countries of which none are more than 10% in a year 21 % 16 % 13 % Total 100 % 100 % 100 % Long-lived Assets by Country The following is a summary of long-lived assets by country. Long-lived assets include net property and equipment, intangibles, and other assets. Geographic long-lived assets as a percentage of total long-lived assets by country were as follows: December 31, 2017 2016 United States of America 83 % 83 % Canada 8 % 8 % Rest of World 9 % 9 % Total 100 % 100 % Significant Customers Customers comprising 10% or greater of the Company’s net revenues are summarized as follows: Years Ended December 31, 2017 2016 2015 Samsung Electronics — % 33 % 32 % Customer B 20 % 13 % 18 % Customer C 18 % 14 % 14 % Customer D 11 % 2 % — % Total 49 % 62 % 64 % Customers comprising 10% or greater of the Company’s outstanding accounts and other receivable are summarized as follows: December 31, 2017 2016 2015 Customer C * 18 % * Customer E 55 % * * Customer F 26 % 46 % 31 % Customer G * 16 % * Customer H * * 44 % Customer I * * 11 % * Represents less than 10% of the Company’s outstanding accounts and other receivables. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following table presents certain consolidated statement of operations data for the Company’s eight most recent quarters: Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sept 30, June 30, Mar 31, 2017 2017 2017 2017 2016 2016 2016 2016 (In thousands, except per share data) Revenues (1) $ 6,896 $ 11,863 $ 7,030 $ 9,224 $ 9,293 $ 26,306 $ 7,864 $ 13,623 Gross profit 6,857 11,802 6,976 9,181 9,235 26,255 7,805 13,600 Operating income (loss) (12,216 ) (5,443 ) (14,911 ) (12,852 ) (11,208 ) 10,114 (9,561 ) (4,608 ) Income (loss) from continuing operations before provision for taxes (12,109 ) (5,243 ) (14,746 ) (12,713 ) (11,363 ) 10,778 (9,528 ) (4,396 ) Benefit (provision) for income taxes (185 ) (44 ) (99 ) (152 ) (26,785 ) (3,760 ) 3,323 1,701 Income (loss) from continuing operations (12,294 ) (5,287 ) (14,845 ) (12,865 ) (38,148 ) 7,018 (6,205 ) (2,695 ) Net income from discontinued operations (net of tax) — — — — — — 649 — Net income (loss) (12,294 ) (5,287 ) (14,845 ) (12,865 ) (38,148 ) 7,018 (5,556 ) (2,695 ) Basic net income (loss) per share (2) Continuing operations (2) $ (0.42 ) $ (0.18 ) $ (0.51 ) $ (0.44 ) $ (1.32 ) $ 0.24 $ (0.22 ) $ (0.09 ) Discontinued operations (2) — — — — — — 0.02 — Total (2) (0.42 ) (0.18 ) (0.51 ) (0.44 ) (1.32 ) 0.24 (0.20 ) (0.09 ) Shares used in calculating basic net income (loss) per share 29,250 29,245 29,193 29,024 28,860 28,849 28,834 28,493 Diluted net income (loss) per share (2) Continuing operations (2) $ (0.42 ) $ (0.18 ) $ (0.51 ) $ (0.44 ) $ (1.32 ) $ 0.24 $ (0.22 ) $ (0.09 ) Discontinued operations (2) — — — — — — 0.02 — Total (2) (0.42 ) (0.18 ) (0.51 ) (0.44 ) (1.32 ) 0.24 (0.20 ) (0.09 ) Shares used in calculating diluted net income (loss) per share 29,250 29,245 29,193 29,024 28,860 29,298 28,834 28,493 (1) Revenue increased significantly in the third quarter of 2016 primarily related to the $19 million received from Samsung in July 2016, in exchange for Product Life Cycle Wind Down Rights. (2) The quarterly earnings per share information is calculated separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 26, 2018, the Company entered into a Settlement and License Agreement (the “Settlement and License Agreement”) with Apple, Inc. (“Apple”), pursuant to which the parties have agreed to terms for resolving all of their existing disputes, and entered into a multi-year license agreement covering certain Immersion patents in exchange for cash with an option to extend the term until the expiration of the last licensed patent. The terms of the agreement are confidential. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Costs and Expenses Deductions/ Write-offs (Recoveries) Balance at End of Period (In thousands) Year ended December 31, 2017 Allowance for doubtful accounts $ — $ — Year ended December 31, 2016 Allowance for doubtful accounts $ 15 $ 2 $ 17 $ — Year ended December 31, 2015 Allowance for doubtful accounts $ 28 $ (6 ) $ 7 $ 15 |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Immersion Corporation and its wholly-owned subsidiaries, Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. All intercompany accounts, transactions, and balances have been eliminated in consolidation. |
Basis of Presentation | The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Cash Equivalents | The Company considers all highly liquid instruments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. |
Short-term Investments | The Company’s short-term investments consist primarily of U.S treasury bills with an original or remaining maturity of greater than 90 days on the date of purchase. The Company classifies debt securities with readily determinable market values as “available-for-sale.” Even though the stated maturity dates of these debt securities may be one year or more beyond the balance sheet date, the Company has classified all debt securities as short-term investments as they are reasonably expected to be realized in cash or sold within one year. These investments are carried at fair market value with unrealized gains and losses considered to be temporary in nature reported as a separate component of other comprehensive income (loss) within stockholders’ equity. The Company recognizes an impairment charge in the consolidated statement of operations and comprehensive loss when a decline in value is judged to be other than temporary based on the specific identification method. Other-than-temporary impairment charges may exist when the Company has the intent to sell the security, will more likely than not be required to sell the security, or does not expect to recover the principal. |
Property and Equipment | Property is stated at cost and is depreciated using the straight-line method over the estimated useful life of the related asset. The estimated useful lives are typically as follows: Computer equipment and purchased software 3 years Machinery and equipment 3-5 years Furniture and fixtures 5 years Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life. |
Long-lived Assets | The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of that asset may not be recoverable. An impairment loss would be recognized when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. |
Revenue Recognition and Deferred Revenue | The Company recognizes revenues in accordance with applicable accounting standards, including ASC 605-10-S99, “Revenue Recognition” (“ASC 605-10-S99”); ASC 605-25, “Multiple Element Arrangements” (“ASC 605-25”), and ASC 985-605, “Software-Revenue Recognition” (“ASC 985-605”). The Company derives its revenues from two principal sources: royalty and license fees, and development contract and service fees. As described below, management judgments, assumptions, and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of revenue for any period based on the judgments and estimates made by management. Specifically, in connection with each transaction, the Company must evaluate whether: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collectability is probable. The Company applies these criteria as discussed below. • Persuasive evidence of an arrangement exists . For a license arrangement, the Company requires a written contract, signed by both the customer and the Company. • Delivery has occurred . The Company delivers software electronically. Delivery occurs when the Company provides the customer access codes or “keys” that allow the customer to take immediate possession of the software. • The fee is fixed or determinable . The Company’s arrangement fee is based on the use of standard payment terms, which are those that are generally offered to the majority of customers. For transactions involving extended payment terms, the Company deems these fees not to be fixed or determinable for revenue recognition purposes and revenue is deferred until the fees become due and payable. • Collectability is probable. To recognize revenue, the Company must judge collectability of fees, which is done on a customer-by-customer basis pursuant to the Company’s credit review policy. The Company typically sells to customers with whom there is a history of successful collection. For new customers, the Company evaluates the customer’s financial condition and ability to pay. If it is determined that collectability is not probable based upon the credit review process or the customer’s payment history, revenue is recognized when payment is received. Royalty and license revenue — The Company licenses its patents and software to customers in a variety of industries such as mobility, gaming, automotive, and medical devices. Revenues that are derived from the sale of a licensee's products that incorporate the Company’s IP are classified as royalty revenues. The terms of the royalty agreements generally require licensees to give notification of royalties due to the Company within 30 – 45 days of the end of the quarter during which their related sales occur. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Certain royalties could be subject to change and may result in out of period adjustments depending on the specific terms of the arrangement. The Company also enters into fixed license fee arrangements. The Company recognizes fixed license fee revenue when earned under the terms of the agreements, which generally results in recognition on a straight-line basis over the expected term of the license. Development, services, and other revenue — Development, services, and other revenue are composed of engineering services (engineering services and/or development contracts), and in limited cases, post contract customer support (“PCS”). Engineering services revenues are recognized under the proportional performance accounting method based on the completion of the work to be performed or completed performance method. A provision for losses on contracts is made, if necessary, in the period in which the loss becomes probable and can be reasonably estimated. Revisions in estimates are reflected in the period in which the conditions become known. To date, such losses have not been significant. Revenue from PCS is typically recognized over the period of the ongoing obligation, which is generally consistent with the contractual term. Multiple element arrangements — The Company enters into multiple element arrangements in which customers purchase time-based non-exclusive licenses that cannot be resold to others, which include a combination of software and/or IP licenses, engineering services, and in limited cases PCS. For arrangements that are software based with an engineering services component, the services are generally not essential to the functionality of the software, and customers may purchase engineering services from the Company to facilitate the adoption of the Company’s technology, but they may choose to use their own resources or appoint other engineering service organizations to perform these services. For arrangements that are in substance subscription arrangements, the entire arrangement fee is recognized ratably over the contract term, subject to any limitations related to extended payment terms. For arrangements involving upfront fees for services and royalties earned by the Company based on units sold or sales volumes of the respective licensed products, and the services are performed ratably over the arrangement or are front-end loaded, the upfront fees are recognized ratably over the contract term, and royalties based on units sold or sales volume are recognized when they become fixed and determinable. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes per unit or sales volume driven royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Deferred Revenue Deferred revenue consists of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue. The amounts are primarily related to our fixed fee contracts which are recognized ratably over the license term (up to 10 years). Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. |
Advertising | Advertising costs (including obligations under cooperative marketing programs) are expensed as incurred and included in sales and marketing expense. |
Research and Development | Research and development costs are expensed as incurred. |
Income Taxes | The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized and are reversed at such time that realization is believed to be more likely than not. |
Software Development Costs | Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. The Company considers technological feasibility to be established upon completion of a working model of the software. Because the Company believes its current process for developing software is essentially completed concurrently with the establishment of technological feasibility, no costs have been capitalized to date. |
Stock-based Compensation | Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. |
Comprehensive Income | Comprehensive income includes net income as well as other items of comprehensive income or loss. The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains and losses on short term investments, net of tax. |
Use of Estimates | The preparation of consolidated financial statements and related disclosures in accordance with U.S. GAAP and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of income taxes including uncertain tax provisions, revenue recognition, stock-based compensation, and accruals for other liabilities. Actual results may differ materially from those estimates which were made based on the best information known to management at that time. |
Concentration of Credit Risks | Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash, cash equivalents, short term investments, and accounts receivable. The Company is also subjected to a concentration of revenues given certain key licensees that contributed a significant portion of the Company's total revenue. See Note 15 for customer revenue concentration. The Company invests primarily in money market accounts and highly liquid debt instruments purchased with an original or remaining maturity of greater than 90 days on the date of purchase. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand. The Company licenses technology primarily to companies in North America, Europe, and Asia. To reduce credit risk, management performs periodic credit evaluations of its customers’ financial condition. The Company periodically evaluates potential credit losses to ensure adequate reserves are maintained, but historically the Company has not experienced any significant losses related to individual customers or groups of customers in any particular industry or geographic area |
Certain Significant Risks and Uncertainties | The Company operates in multiple industries and its operations can be affected by a variety of factors. For example, management believes that changes in any of the following areas could have a negative effect on the Company's future financial position and results of operations: the mix of revenues; the loss of significant customers; fundamental changes in the technologies underlying the Company’s and its licensees’ products; market acceptance of the Company’s and its licensees’ products under development; development of sales channels; litigation or other claims in which the Company is involved; the ability to successfully assert its patent rights against others; the impact of changing economic conditions; the hiring, training, and retention of key employees; successful and timely completion of product and technology development efforts; and new product or technology introductions by competitors. |
Fair Value of Financial Instruments | Financial instruments consist primarily of cash equivalents, short-term investments, accounts receivable and accounts payable. Cash equivalents and short term investments are stated at fair value based on quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The recorded cost of accounts receivable and accounts payable approximate the fair value of the respective assets and liabilities. |
Foreign Currency Translation | The functional currency of the Company’s foreign subsidiaries is U. S. dollars. Accordingly, gains and losses from the translation of the financial statements of the foreign subsidiaries and foreign currency transaction gains and losses are included in earnings. |
Recent Accounting Pronouncements | In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09 “Stock Compensation: Scope of Modification Accounting” ("ASU 2017-09"). The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2017. The Company will adopt the standard in the first quarter of fiscal 2018, but does not expect the adoption of ASU 2016-19 will have a material impact on its condensed consolidated financial statements. In December 2016, the FASB issued ASU 2016-19 “Technical Corrections and Improvements”. The amendments in this update affect a wide variety of topics in the Accounting Standards Codification. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods in the annual period beginning after December 15, 2018. The Company will adopt the standard in the first quarter of fiscal 2018, but does not expect the adoption of ASU 2016-19 will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases: Topic 842” (“ASU 2016-02”), which supersedes the existing guidance for lease accounting in Topic 840, Leases. The FASB issued the ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. In September 2017, the FASB issued ASU 2017-13 "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)" ("ASU 2017-13)", which adds SEC paragraphs to the new revenue and leases sections of the Accounting Standards Codification (ASC or Codification) on the announcement the SEC Observer made at the July 20, 2017 EITF meeting, and supersedes certain SEC paragraphs in the Codification related to previous SEC staff announcements and moves other paragraphs, upon adoption of ASC 606 or ASC 842. ASU2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements but has not elected to early adopt the standard and would plan to implement the standard on January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers: Topic 606” (“ASU 2014-09”) which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of ASU 2014-09 is that 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. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers: Deferral of the Effective Date”, which deferred the effective date of ASU 2014-09 for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. In March 2016, the FASB issued ASU 2016-08 "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations" ("ASU 2016-08") which provides updates to revenue recognition guidance relating to considerations for reporting revenue gross versus net. In April 2016, the FASB issued ASU 2016-10 "Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing" ("ASU 2016-10"), which provides updates to revenue recognition guidance relating to performance obligations and accounting for licensing revenue. In May 2016, the FASB issued ASU 2016-12 "Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients" ("ASU 2016-12") which provides updates to revenue recognition guidance relating to scope and practical expedients for revenue recognition. In December 2016, the FASB issued ASU 2016-20 "Technical Corrections and Improvements to Topic 606" ("ASU 2016-20") which further provides updates to certain aspects of the revenue recognition guidance. In September 2017, the FASB issued ASU 2017-13 "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)" ("ASU 2017-13)", which adds SEC paragraphs to the new revenue and leases sections of the Accounting Standards Codification (ASC or Codification) on the announcement the SEC Observer made at the July 20, 2017 EITF meeting, and supersedes certain SEC paragraphs in the Codification related to previous SEC staff announcements and moves other paragraphs, upon adoption of ASC 606 or ASC 842. In November 2017, the FASB issued ASU2017-14 "Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606)" ("ASU 2017-14"). ASU 2017-14 amends SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, which bring existing guidance into conformity with Topic 606, Revenue from Contracts with Customers. The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company will adopt the new standard as of January 1, 2018 using the modified retrospective method rather than full retrospective method. The Company's revenue is primarily comprised of per-unit royalty revenue and fixed fee license revenue, along with less significant revenue earned from development, services, and other revenue. The expected impacts upon adoption and post-adoption for each revenue stream are as follows: Per-unit Royalty revenue Under current GAAP, the Company recognizes per-unit royalty revenue when royalty reports are received from its customers (typically one quarter in arrears). The Company expects a shift in the method and timing by which it recognizes per-unit royalty revenue under the new standard, as the Company will be required to estimate the amount of this revenue in the quarter when the customer sales transaction occurs. As a result, there will be variances between the estimated per-unit royalty revenue and that based on the actual sales reported by its customers. The Company will be required to adjust the estimate to reflect the actual sales upon receipt of royalty reports submitted by the licensees in the following quarter. Upon adoption of ASU 2014-09 on January 1, 2018, the Company will recognize the per-unit royalty revenue for customer transactions that occur in the fourth quarter of 2017 as an adjustment to accumulated deficit. Based on royalty reports received for the period and the estimates for those not yet received, the Company has estimated the impact on accumulated deficit will be $5.2 million . The Company also expects a shift in the method and timing of revenue recognition for contracts with minimum royalty arrangements. Under current GAAP, minimum royalties are recognized as revenue at the end of each reporting period (usually a calendar year) if the actual royalties reported by the customer for that reporting period are below the minimum royalty amount set forth in the contract. Under the new standard, minimum royalties are considered a fixed transaction price to which the Company will have an unconditional right once all performance obligations are satisfied. At the inception of a contract, the Company will be required to recognize all minimum royalties, since only the passage of time is required before payment of the minimum royalty is due. The Company determined that the contract asset to be established for the unbilled minimum royalties that exist as of January 1, 2018 will be immaterial. After adoption, the Company will record its unconditional right to minimum royalties as contract asset at the inception of the contract where the license is granted to the licensee, and present any associated contract assets and contract liabilities under one contract on a net basis in the statement of financial position. Fixed fee license revenue In accordance with current GAAP, fixed fee license revenue historically has been recognized ratably over the term of the license agreement. Under the new standard, the Company will be required to recognize fixed fee license revenue when it satisfies its performance obligations, which typically occurs upon the transfer of rights to the Company's technology at the point in time a contract is executed, and/or the transfer of rights to technology updates and/or new technologies developed over the contract term. In certain contracts, the Company provides to its customers access to both the patent portfolio that exists as of the contract signing as well as future patents that are to be issued throughout the contract term. In consideration of ASU 2014-09, the Company has concluded that, for such arrangements, it has two separate performance obligations being (a) patents in existence when the contract is signed for which revenue will be recognized up front and (b) patents to be issued, finalized, or approved over the contract term that will be made available to customers for which revenue will be recognized over the course of the contract term. In connection with the allocation of the transfer price between these two aforementioned performance obligations, the Company has developed a process to estimate the standalone price for each of the two performance obligations in these arrangements, considering a number of factors primarily based on the volume of the Company's patents outstanding as of the contract date as well as those which are expected to be filed and enforceable during the contract term. As of the date of this filing, the Company is in the process of finalizing this estimate and evaluating the performance of certain controls over the information used therein, and expects to complete the determination of its estimate in the first quarter of 2018. Upon review of the potential impact of this change in accounting, the Company has determined that the majority of its deferred revenue balance as of December 31, 2017 relates to fixed fee license revenue, and expects that a substantial portion of this balance will be recorded as an adjustment to accumulated deficit on January 1, 2018 upon adoption of ASU 2014-09. After adoption, the Company will account for and present any associated contract assets and contract liabilities under one contract on a net basis in the statement of financial position. Development, services, and other revenue The Company expects minimum changes on this revenue stream under the new standard. It will continue to recognize development, services, and other revenue when such service obligation is satisfied. The Company acknowledges that the conclusions are drawn from the specific facts and circumstances pertaining to its existing contracts. With the Company’s continuous evolution of technologies and its increasing ability to demonstrate the value of its innovations to licensees, the Company will need to assess the application of ASU 2014-09 for each new contract entered after the adoption date, and determine the appropriate revenue recognition on a case-by-case, industry-by-industry basis. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Estimated useful lives of property and equipment | The estimated useful lives are typically as follows: Computer equipment and purchased software 3 years Machinery and equipment 3-5 years Furniture and fixtures 5 years December 31, 2017 2016 (In thousands) Computer equipment and purchased software $ 3,206 $ 3,489 Machinery and equipment 834 882 Furniture and fixtures 1,274 1,290 Leasehold improvements 3,920 3,917 Total 9,234 9,578 Less accumulated depreciation (6,084 ) (5,562 ) Property and equipment, net $ 3,150 $ 4,016 |
Advertising expense | Advertising expense was as follows: Year ended December 31, 2017 2016 2015 (In thousands) Advertising expense $ 221 $ 102 $ 265 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value on recurring basis | Financial instruments measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016 are listed in the table below: December 31, 2017 Total Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets: U.S. Treasury securities $ — $ 21,916 $ — $ 21,916 Money market funds 1,117 — — 1,117 Total assets at fair value $ 1,117 $ 21,916 $ — $ 23,033 The above table excludes $23.5 million of cash held in banks. December 31, 2016 Total Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets: U.S. Treasury securities $ — $ 32,907 $ — $ 32,907 Money market funds 32,031 — — 32,031 Total assets at fair value $ 32,031 $ 32,907 $ — $ 64,938 The above table excludes $24.8 million of cash held in banks. |
Schedule of Short-term investments | Short-term Investments December 31, 2017 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 21,939 $ — $ (23 ) $ 21,916 Total $ 21,939 $ — $ (23 ) $ 21,916 December 31, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 32,914 $ — $ (7 ) $ 32,907 Total $ 32,914 $ — $ (7 ) $ 32,907 |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | December 31, 2017 2016 (In thousands) Trade accounts receivable $ 458 $ 1,084 Receivables from vendors and other 348 298 Accounts and other receivables $ 806 $ 1,382 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The estimated useful lives are typically as follows: Computer equipment and purchased software 3 years Machinery and equipment 3-5 years Furniture and fixtures 5 years December 31, 2017 2016 (In thousands) Computer equipment and purchased software $ 3,206 $ 3,489 Machinery and equipment 834 882 Furniture and fixtures 1,274 1,290 Leasehold improvements 3,920 3,917 Total 9,234 9,578 Less accumulated depreciation (6,084 ) (5,562 ) Property and equipment, net $ 3,150 $ 4,016 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current Liabilities | December 31, 2017 2016 (In thousands) Accrued legal $ 2,202 $ 3,096 Income taxes payable 219 164 Other current liabilities 1,475 1,149 Total other current liabilities $ 3,896 $ 4,409 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options and Awards | December 31, 2017 Common stock shares available for grant 3,254,051 Standard and market condition based stock options outstanding 3,550,072 Restricted stock awards outstanding 44,538 Restricted stock units outstanding 508,880 |
Schedule of Employee Stock Purchase Plan | The intrinsic value listed below is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Year Ended December 31, 2017 Shares purchased under ESPP 48,750 Average price of shares purchased under ESPP $ 6.74 Intrinsic value of shares purchased under ESPP $ 136,000 |
Schedule of Standard and Market-based Stock Options Activity | The following table sets forth the summary of the market condition based option activity under the Company’s stock option plans for the years ended December 31, 2017 , 2016 and 2015 . Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Of Options Granted Aggregate Intrinsic Value of Options Exercised (In thousands) Outstanding at January 1, 2015 50,000 $ 11.94 Granted 150,000 8.09 3.64 Exercised — Forfeited — Expired — Outstanding at December 31, 2015 200,000 9.05 Granted 75,000 9.00 3.68 Exercised — Forfeited (50,000 ) 11.94 Expired — Outstanding at December 31, 2016 225,000 8.39 Granted 120,830 8.65 3.12 Exercised — Forfeited (73,749 ) 8.64 Expired — Outstanding at December 31, 2017 272,081 8.44 The following table sets forth the summary of standard stock option activity under the Company’s stock option plans for the years ended December 31, 2017 , 2016 , and 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Of Options Granted Aggregate Intrinsic Value of Options Exercised (In thousands) Outstanding at January 1, 2015 3,486,157 $ 8.30 Granted 525,840 10.15 $ 4.56 Exercised (239,071 ) 6.82 $ 1,186 Forfeited (116,425 ) 12.38 Expired (59,968 ) 13.75 Outstanding at December 31, 2015 3,596,533 8.45 Granted 815,794 7.85 3.67 Exercised (395,515 ) 6.48 918 Forfeited (344,541 ) 9.05 Expired (251,150 ) 8.87 Outstanding at December 31, 2016 3,421,121 8.44 Granted 489,568 8.48 3.82 Exercised (70,608 ) 7.34 151 Forfeited (361,687 ) 9.11 Expired (200,403 ) 15.04 Outstanding at December 31, 2017 3,277,991 7.99 |
Schedule of Information Regarding Standard and Market Condition Based Stock Options Outstanding | Information regarding standard stock options outstanding at December 31, 2017 , 2016 , and 2015 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (In millions) December 31, 2015 Options outstanding 3,596,533 $ 8.45 4.23 $ 12.5 Options vested and expected to vest using estimated forfeiture rates 3,452,487 8.36 4.16 12.3 Options exercisable 2,252,744 7.59 3.56 9.9 December 31, 2016 Options outstanding 3,421,121 $ 8.44 3.99 $ 9.0 Options vested and expected to vest using estimated forfeiture rates 3,223,919 8.43 3.87 8.5 Options exercisable 2,131,268 8.22 3.10 6.4 December 31, 2017 Options outstanding 3,277,991 $ 7.99 2.88 $ 2.2 Options vested and expected to vest using estimated forfeiture rates 3,175,002 7.99 2.78 2.2 Options exercisable 2,633,990 7.94 2.14 2.1 Information regarding these market condition based stock options outstanding at December 31, 2017 , 2016 and 2015 is summarized below: Number Weighted Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (In millions) December 31, 2015 Options outstanding 200,000 $ 9.05 5.92 $ 0.5 Options vested and expected to vest using estimated forfeiture rates 184,125 9.12 5.90 0.5 Options exercisable — — 0.00 — December 31, 2016 Options outstanding 225,000 $ 8.39 5.50 $ 0.5 Options vested and expected to vest using estimated forfeiture rates 209,141 8.38 5.49 0.5 Options exercisable 65,625 8.09 5.17 0.2 December 31, 2017 Options outstanding 272,081 $ 8.44 1.91 $ — Options vested and expected to vest using estimated forfeiture rates 272,081 8.44 1.91 — Options exercisable 272,081 8.44 1.91 — |
Additional Information Regarding Options Outstanding | Additional information regarding standard options outstanding as of December 31, 2017 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $3.72 - $3.72 938 1.54 $ 3.72 938 $ 3.72 3.85 - 3.85 600,000 1.87 3.85 600,000 3.85 4.95 - 6.66 374,068 4.13 6.34 263,312 6.23 6.86 - 8.09 405,525 4.66 7.82 206,030 7.83 8.13 - 8.65 386,949 4.00 8.54 196,434 8.56 8.70 - 9.19 378,506 2.51 9.04 279,659 9.10 9.20 - 9.20 44,300 0.54 9.20 44,300 9.20 9.53 - 9.53 734,000 1.97 9.53 734,000 9.53 9.61 - 12.48 336,414 2.64 11.82 292,026 11.92 12.49 - 14.02 17,291 1.02 13.74 17,291 13.74 $3.72 - $14.02 3,277,991 2.88 $ 7.99 2,633,990 $ 7.94 Additional information regarding market condition based stock options outstanding as of December 31, 2017 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $8.09 - $8.09 135,000 1.91 $ 8.09 135,000 $ 8.09 8.65 - 8.65 84,581 1.91 8.65 84,581 8.65 9.00 - 9.00 52,500 1.91 9.00 52,500 9.00 $8.09 - $9.00 272,081 1.91 $ 8.44 272,081 $ 8.44 |
Schedule of Restricted Stock Units Activity | RSU activity for the years ended December 31, 2017 , 2016 , and 2015 was as follows: Number of Shares Weighted Average Grant Date Fair Value Fair Value of Released RSU’s (In thousands) Outstanding at January 1, 2015 564,891 Awarded 281,290 $ 8.16 Released (299,277 ) $ 2,626 Forfeited (59,481 ) Outstanding at December 31, 2015 487,423 Awarded 320,880 8.67 Released (247,556 ) 2,118 Forfeited (133,555 ) Outstanding at December 31, 2016 427,192 Awarded 483,015 8.46 Released (198,058 ) 1,991 Forfeited (203,269 ) Outstanding at December 31, 2017 508,880 |
Schedule of Information Regarding Restricted Stock Units Outstanding | Information regarding RSU’s at December 31, 2017 , 2016 , and 2015 is summarized below: Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (In millions) Fair Value (In millions) December 31, 2015 RSUs outstanding 487,423 0.90 $ 5.7 $ 5.7 RSUs vested and expected to vest using estimated forfeiture rates 414,934 0.87 4.8 December 31, 2016 RSUs outstanding 427,192 0.93 $ 4.5 $ 4.5 RSUs vested and expected to vest using estimated forfeiture rates 349,759 0.80 3.7 December 31, 2017 RSUs outstanding 508,880 1.30 3.6 $ 3.6 RSUs vested and expected to vest using estimated forfeiture rates 414,847 1.16 2.9 |
Schedule of Restricted Stock Awards Activity | Restricted stock award activity for the years ended December 31, 2017 , 2016 , and 2015 was as follows: Number of Shares Weighted Average Grant Date Fair Value Total Fair Value of Awards Released (In thousands) Outstanding at January 1, 2015 35,364 $ 10.97 Awarded 21,356 12.26 Released (35,364 ) 10.97 $ 434 Forfeited — Outstanding at December 31, 2015 21,356 12.26 Awarded 77,540 6.52 Released (21,356 ) 12.26 139 Forfeited — Outstanding at December 31, 2016 77,540 6.52 Awarded 44,538 8.65 Released (77,540 ) 6.52 671 Forfeited — Outstanding at December 31, 2017 44,538 8.65 |
Schedule of Stock Options, Market Condition Based Stock Options and Employee Stock Purchase Plan, Valuation Assumptions | The assumptions used to value option grants under the Company’s stock plans are as follows: Standard Stock Options 2017 2016 2015 Expected life (in years) 4.6 4.5 4.7 Interest rate 2.0 % 1.2 % 1.4 % Volatility 52 % 56 % 56 % Dividend yield — % — % — % Market Condition Based Stock Options 2017 2016 2015 Expected life (in years) 7.0 7.0 7.0 Interest rate 2.0 % 1.6 % 1.9 % Volatility 55 % 59 % 65 % Dividend yield — % — % — % Employee Stock Purchase Plan 2017 2016 2015 Expected life (in years) 0.5 0.5 0.5 Interest rate 0.9 % 0.4 % 0.1 % Volatility 48 % 53 % 48 % Dividend yield — % — % — % |
Schedule of Stock-Based Compensation | Total stock-based compensation recognized in the consolidated statements of income is as follows: Year Ended December 31, 2017 2016 2015 Income Statement Classifications (In thousands) Sales and marketing $ 1,025 $ 1,280 $ 1,116 Research and development 981 1,297 1,303 General and administrative 4,096 3,534 3,051 Total $ 6,102 $ 6,111 $ 5,470 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) are included in the table below. Year Ended December 31, 2017 Unrealized Gains and Losses on Available-for Sale Securities Foreign Currency Items Total (In thousands) Beginning balance $ (7 ) $ 122 $ 115 Other comprehensive income before reclassifications — — — Amounts reclassified from accumulated other comprehensive income (loss) (16 ) (16 ) Net current period other comprehensive income (loss) (16 ) — (16 ) Ending Balance $ (23 ) $ 122 $ 99 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring costs | The following table summarizes the total expenses recorded related to the 2017 restructuring activities reflected in the consolidated statements of operations by type of activity. There were no restructuring costs in 2016 and 2015. Twelve months ended December 31, 2017 (in Thousands) Employee Separation Costs Asset-Related Charges Other Total Restructuring $ 1,515 $ 22 $ 82 $ 1,620 The following table presents a reconciliation of the restructuring reserve recorded within accrued liabilities on the Company’s consolidated balance sheet for year ended December 31, 2017: Twelve months ended December 31, 2017 (in Thousands) Employee Separation Costs Asset-Related Charges Other Total Liability, beginning of period $ — $ — $ — $ — Charges 1,515 22 82 1,620 Non-cash activity 7 (22 ) (25 ) (41 ) Liability end of period 1,522 — 57 1,579 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax Benefit (provisions) from continuing operations | Income tax provisions from continuing operations consisted of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Income (loss) from continuing operations before provisions for income taxes $ (44,811 ) $ (14,509 ) $ 4,449 Provision for income taxes from continuing operations (480 ) (25,521 ) (1,591 ) Effective tax rate (1.1 )% (175.9 )% 35.8 % |
Details of pre-tax book income (loss) from continuing operations | The Company reported pre-tax book income or loss from continuing operations of: Year Ended December 31, 2017 2016 2015 (In thousands) Domestic $ (23,994 ) $ (14,656 ) $ 21,160 Foreign (20,817 ) 147 (16,711 ) Total $ (44,811 ) $ (14,509 ) $ 4,449 |
Summary of benefit (provision) for income taxes from continuing operations | The benefit or (provisions) for income taxes from continuing operations consisted of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Current: United States federal $ — $ (1,649 ) $ (1,426 ) State and local (5 ) 859 (12 ) Foreign (448 ) (442 ) (389 ) Total current $ (453 ) $ (1,232 ) $ (1,827 ) Deferred: United States federal — (24,261 ) 585 State and local — — — Foreign (27 ) (28 ) (349 ) Total deferred (27 ) (24,289 ) 236 $ (480 ) $ (25,521 ) $ (1,591 ) |
Details of significant components of net deferred tax assets and liabilities | Significant components of the net deferred tax assets and liabilities consisted of: December 31, 2017 2016 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 13,394 $ 15,337 State income taxes 1 1 Deferred revenue 5,349 458 Research and development and other credits 11,447 11,418 Reserves and accruals recognized in different periods 3,088 5,397 Basis difference in investment 583 969 Capitalized R&D expenses 3,623 4,569 Depreciation and amortization 413 585 Deferred rent 183 306 Other — 2 Total deferred tax assets 38,081 39,042 Valuation allowance (37,680 ) (38,683 ) Net deferred tax assets 401 359 Foreign credits (43 ) (33 ) Net deferred tax liabilities (43 ) (33 ) Net deferred taxes $ 358 $ 326 |
Reconciliation between benefit (provision) for income taxes at statutory rate and effective tax rate | For purposes of the reconciliation between the provision for income taxes at the statutory rate and the effective tax rate, a national U.S. 35% rate is applied as follows: 2017 2016 2015 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Sale of IP rights to foreign subsidiary — % (13.8 )% 22.5 % Benefit from foreign losses — % — % 7.8 % Foreign withholding (0.2 )% (1.2 )% 0.5 % Stock compensation expense (2.0 )% (6.6 )% 5.8 % Meals & entertainment — % — % 0.1 % Foreign rate differential (17.0 )% (1.2 )% (24.0 )% Prior year true-up items (0.1 )% (0.3 )% 1.7 % Tax reserves (0.1 )% 1.8 % 3.9 % Loss on foreign share transfer — % — % 5.9 % Credits 0.4 % 1.6 % (35.5 )% State Refunds — % 3.8 % — % Other — % (1.6 )% 3.9 % 2017 Tax Act impact - federal rate change (28.7 )% — % — % Valuation allowance 11.6 % (193.4 )% 8.2 % Effective tax rate (1.1 )% (175.9 )% 35.8 % |
Details of beginning and ending amount of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 2017 2016 2015 (In thousands) Balance at beginning of year $ 6,232 $ 6,285 $ 1,744 Gross increases for tax positions of prior years — — 141 Gross decreases for federal tax rate change for tax positions of prior years (1,670 ) (22 ) (15 ) Gross increases for tax positions of current year 110 111 4,415 Lapse of statute of limitations — (142 ) — Balance at end of year $ 4,672 $ 6,232 $ 6,285 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation used in Computing Basic and Diluted Net Income per Share | The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share: Years Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ (45,291 ) $ (40,030 ) $ 2,858 Income from discontinued operations, net of tax $ — $ 649 $ — Net income (loss) used in computing basic net income (loss) per share $ (45,291 ) $ (39,381 ) $ 2,858 Denominator: Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) 29,179 28,759 28,097 Dilutive potential common shares: Stock options, ESPP, Restricted Stock and RSUs — — 918 Shares used in computation of diluted net income (loss) per share 29,179 28,759 29,015 Basic net income (loss) per share: Continuing Operations $ (1.55 ) $ (1.39 ) $ 0.10 Discontinued Operations $ — $ 0.02 $ 0.00 Total $ (1.55 ) $ (1.37 ) $ 0.10 Diluted net income (loss) per share: Continuing Operations $ (1.55 ) $ (1.39 ) $ 0.10 Discontinued Operations $ — $ 0.02 $ 0.00 Total $ (1.55 ) $ (1.37 ) $ 0.10 |
Schedule of antidilutive securities excluded from computation of earnings per share | As of December 31, 2017 and 2016 , the Company had securities outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net loss per share for the year ended December 31, 2017 and 2016 , since their effect would have been anti-dilutive. These outstanding securities consisted of the following: December 31, 2017 2016 Standard and market condition stock options outstanding 3,550,072 3,646,121 Restricted stock awards outstanding 44,538 77,540 RSUs outstanding 508,880 427,192 ESPP 14,425 17,506 |
Employee Benefit Plan (Tables)
Employee Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Details of Company Contribution to Plan | Year ended December 31, 2017 2016 2015 (In thousands) Company contribution to 401 (k) plan $ 259 $ 172 $ 127 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum future lease payments obligations | Minimum future lease payments obligations are as follows: Operating Leases (In thousands) 2018 1,306 2019 943 2020 868 2021 894 2022 921 Thereafter 310 Total $ 5,242 |
Rent expense | Rent expense was as follows: Year ended December 31, 2017 2016 2015 (In thousands) Rent expense $ 1,307 $ 1,283 $ 1,291 |
Segment Reporting, Geographic38
Segment Reporting, Geographic Information, and Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Market | Net Revenues | |
Schedules of Concentration of Risk by Risk Factor | The following is a summary of revenues by market areas. Revenue as a percentage of total revenues by market was as follows: Years Ended December 31, 2017 2016 2015 Mobile, Wearables, and Consumer 48 % 57 % 62 % Gaming Devices 31 % 24 % 24 % Automotive 15 % 7 % 7 % Medical 6 % 12 % 7 % Total 100 % 100 % 100 % |
Geographic Concentration Risk | Net Revenues | |
Schedules of Concentration of Risk by Risk Factor | The following is a summary of revenues by geographic areas. Revenues are broken out geographically by the location of the customer. Geographic revenue as a percentage of total revenues by region was as follows: Years Ended December 31, 2017 2016 2015 North America 22 % 32 % 28 % Europe 15 % 8 % 5 % Asia 63 % 60 % 67 % Total 100 % 100 % 100 % Geographic revenue as a percentage of total revenues by country was as follows: Years Ended December 31, 2017 2016 2015 Japan 39 % 11 % 14 % United States of America 22 % 26 % 27 % Korea 18 % 47 % 46 % Countries of which none are more than 10% in a year 21 % 16 % 13 % Total 100 % 100 % 100 % |
Geographic Concentration Risk | Assets, Total | |
Schedules of Concentration of Risk by Risk Factor | The following is a summary of long-lived assets by country. Long-lived assets include net property and equipment, intangibles, and other assets. Geographic long-lived assets as a percentage of total long-lived assets by country were as follows: December 31, 2017 2016 United States of America 83 % 83 % Canada 8 % 8 % Rest of World 9 % 9 % Total 100 % 100 % |
Customer Concentration Risk | Net Revenues | |
Schedules of Concentration of Risk by Risk Factor | Customers comprising 10% or greater of the Company’s net revenues are summarized as follows: Years Ended December 31, 2017 2016 2015 Samsung Electronics — % 33 % 32 % Customer B 20 % 13 % 18 % Customer C 18 % 14 % 14 % Customer D 11 % 2 % — % Total 49 % 62 % 64 % |
Credit Concentration Risk | Outstanding Accounts and Other Receivable | |
Schedules of Concentration of Risk by Risk Factor | Customers comprising 10% or greater of the Company’s outstanding accounts and other receivable are summarized as follows: December 31, 2017 2016 2015 Customer C * 18 % * Customer E 55 % * * Customer F 26 % 46 % 31 % Customer G * 16 % * Customer H * * 44 % Customer I * * 11 % * Represents less than 10% of the Company’s outstanding accounts and other receivables. |
Quarterly Results of Operatio39
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Consolidated Statement of Operations Data | The following table presents certain consolidated statement of operations data for the Company’s eight most recent quarters: Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sept 30, June 30, Mar 31, 2017 2017 2017 2017 2016 2016 2016 2016 (In thousands, except per share data) Revenues (1) $ 6,896 $ 11,863 $ 7,030 $ 9,224 $ 9,293 $ 26,306 $ 7,864 $ 13,623 Gross profit 6,857 11,802 6,976 9,181 9,235 26,255 7,805 13,600 Operating income (loss) (12,216 ) (5,443 ) (14,911 ) (12,852 ) (11,208 ) 10,114 (9,561 ) (4,608 ) Income (loss) from continuing operations before provision for taxes (12,109 ) (5,243 ) (14,746 ) (12,713 ) (11,363 ) 10,778 (9,528 ) (4,396 ) Benefit (provision) for income taxes (185 ) (44 ) (99 ) (152 ) (26,785 ) (3,760 ) 3,323 1,701 Income (loss) from continuing operations (12,294 ) (5,287 ) (14,845 ) (12,865 ) (38,148 ) 7,018 (6,205 ) (2,695 ) Net income from discontinued operations (net of tax) — — — — — — 649 — Net income (loss) (12,294 ) (5,287 ) (14,845 ) (12,865 ) (38,148 ) 7,018 (5,556 ) (2,695 ) Basic net income (loss) per share (2) Continuing operations (2) $ (0.42 ) $ (0.18 ) $ (0.51 ) $ (0.44 ) $ (1.32 ) $ 0.24 $ (0.22 ) $ (0.09 ) Discontinued operations (2) — — — — — — 0.02 — Total (2) (0.42 ) (0.18 ) (0.51 ) (0.44 ) (1.32 ) 0.24 (0.20 ) (0.09 ) Shares used in calculating basic net income (loss) per share 29,250 29,245 29,193 29,024 28,860 28,849 28,834 28,493 Diluted net income (loss) per share (2) Continuing operations (2) $ (0.42 ) $ (0.18 ) $ (0.51 ) $ (0.44 ) $ (1.32 ) $ 0.24 $ (0.22 ) $ (0.09 ) Discontinued operations (2) — — — — — — 0.02 — Total (2) (0.42 ) (0.18 ) (0.51 ) (0.44 ) (1.32 ) 0.24 (0.20 ) (0.09 ) Shares used in calculating diluted net income (loss) per share 29,250 29,245 29,193 29,024 28,860 29,298 28,834 28,493 (1) Revenue increased significantly in the third quarter of 2016 primarily related to the $19 million received from Samsung in July 2016, in exchange for Product Life Cycle Wind Down Rights. (2) The quarterly earnings per share information is calculated separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. |
Significant Accounting Polici40
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||||
Cash equivalents maturity period | 3 months | |||
Short-term investments maturity period | 90 days | |||
Period of royalties notification, minimum | 30 days | |||
Period of royalties notification, maximum | 45 days | |||
Advertising expense | $ 221 | $ 102 | $ 265 | |
Period of maturities, money market and highly liquid debt | 90 days | |||
Pro Forma | Accounting Standards Update 2014-09 | ||||
Item Effected [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ (5,200) |
Significant Accounting Polici41
Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Computer equipment and purchased software | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 23,033 | $ 64,938 |
Cash held in banks | 23,500 | 24,800 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,117 | 32,031 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 21,916 | 32,907 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Short-term investments | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 21,916 | 32,907 |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Short-term investments | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 21,916 | 32,907 |
Short-term investments | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,117 | 32,031 |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,117 | 32,031 |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 0 | $ 0 |
Fair Value Disclosures - Sche43
Fair Value Disclosures - Schedule of Short-Term Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | $ 21,939 | $ 32,914 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term Investments, Gross Unrealized Holding Losses | (23) | (7) |
Short-term Investments, Fair Value | $ 21,916 | $ 32,907 |
Available-for-sale securities, maturity period | 1 year | 1 year |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term Investments, Amortized Cost | $ 21,939 | $ 32,914 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term Investments, Gross Unrealized Holding Losses | (23) | (7) |
Short-term Investments, Fair Value | $ 21,916 | $ 32,907 |
Accounts and Other Receivable44
Accounts and Other Receivables - Schedule of Accounts and Other Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 458 | $ 1,084 |
Receivables from vendors and other | 348 | 298 |
Accounts and other receivables | $ 806 | $ 1,382 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 9,234 | $ 9,578 |
Less accumulated depreciation | (6,084) | (5,562) |
Property and equipment, net | 3,150 | 4,016 |
Computer equipment and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 3,206 | 3,489 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 834 | 882 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,274 | 1,290 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 3,920 | $ 3,917 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities, Current [Abstract] | ||
Accrued legal | $ 2,202 | $ 3,096 |
Income taxes payable | 219 | 164 |
Other current liabilities | 1,475 | 1,149 |
Total other current liabilities | $ 3,896 | $ 4,409 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Jun. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options for every share issued (in shares) | 1.75 | ||
Percentage of fair market value on the purchase date | 85.00% | ||
Maximum number of shares per employee (in shares) | 2,000 | ||
Employee stock purchase plan offering period | 6 months | ||
Maximum value of shares per employee | $ 25,000 | ||
Common stock reserved for issuance (in shares) | 1,000,000 | ||
Shares purchased by employee since inception of ESPP (in shares) | 698,133 | ||
Shares purchased under ESPP (in shares) | 48,750 | 45,825 | |
Expected dividend yield in option-pricing model | 0.00% | ||
Unrecognized compensation cost | $ 5,500,000 | ||
Standard and market condition stock options outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period (years) | 4 years | ||
Shares reserved for issuance (in shares) | 3,476,850 | ||
Standard and market condition stock options outstanding | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award expiration period (years) | 5 years | ||
Standard and market condition stock options outstanding | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award expiration period (years) | 10 years | ||
Restricted stock awards outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period (years) | 1 year | ||
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | 2 years 4 months 9 days | ||
RSUs outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period (years) | 3 years | ||
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | 5 months 1 day | ||
Standard stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | 2 years 3 months 29 days | ||
Market condition based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award expiration period (years) | 7 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options and Awards (Detail) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares available for grant | 3,254,051 | |||
Standard and market condition stock options outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Standard and market condition based stock options outstanding | 3,550,072 | |||
Restricted stock awards outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards and units outstanding | 44,538 | 77,540 | 21,356 | 35,364 |
RSUs outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards and units outstanding | 508,880 | 427,192 | 487,423 | 564,891 |
Stock-Based Compensation - Sc49
Stock-Based Compensation - Schedule of Employee Stock Purchase Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Shares purchased under ESPP (in shares) | 48,750 | 45,825 |
Average price of shares purchased under ESPP (in dollars per share) | $ 6.74 | |
Intrinsic value of shares purchased under ESPP | $ 136 |
Stock-Based Compensation - Sc50
Stock-Based Compensation - Schedule of Standard and Market-based Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Standard stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning outstanding balance (in shares) | 3,421,121 | 3,596,533 | 3,486,157 |
Granted (in shares) | 489,568 | 815,794 | 525,840 |
Exercised (in shares) | (70,608) | (395,515) | (239,071) |
Forfeited (in shares) | (361,687) | (344,541) | (116,425) |
Expired (in shares) | (200,403) | (251,150) | (59,968) |
Ending outstanding balance (in shares) | 3,277,991 | 3,421,121 | 3,596,533 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted average exercise price, beginning balance (in dollars per share) | $ 8.44 | $ 8.45 | $ 8.30 |
Weighted average exercise price, granted (in dollars per share) | 8.48 | 7.85 | 10.15 |
Weighted average exercise price, exercised (in dollars per share) | 7.34 | 6.48 | 6.82 |
Weighted average exercise price, forfeited (in dollars per share) | 9.11 | 9.05 | 12.38 |
Weighted average exercise price, expired (in dollars per share) | 15.04 | 8.87 | 13.75 |
Weighted average exercise price, ending balance (in dollars per share) | 7.99 | 8.44 | 8.45 |
Weighted average fair value of options granted (in dollars per share) | $ 3.82 | $ 3.67 | $ 4.56 |
Aggregate intrinsic value of options exercised | $ 151 | $ 918 | $ 1,186 |
Market condition based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning outstanding balance (in shares) | 225,000 | 200,000 | 50,000 |
Granted (in shares) | 120,830 | 75,000 | 150,000 |
Exercised (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | (73,749) | (50,000) | 0 |
Expired (in shares) | 0 | 0 | 0 |
Ending outstanding balance (in shares) | 272,081 | 225,000 | 200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted average exercise price, beginning balance (in dollars per share) | $ 8.39 | $ 9.05 | $ 11,940 |
Weighted average exercise price, granted (in dollars per share) | 8.65 | 9 | 8.09 |
Weighted average exercise price, exercised (in dollars per share) | |||
Weighted average exercise price, forfeited (in dollars per share) | 8.64 | 11.94 | |
Weighted average exercise price, expired (in dollars per share) | |||
Weighted average exercise price, ending balance (in dollars per share) | 8.44 | 8.39 | 9.05 |
Weighted average fair value of options granted (in dollars per share) | $ 3.12 | $ 3.68 | $ 3.64 |
Aggregate intrinsic value of options exercised |
Stock-Based Compensation - Sc51
Stock-Based Compensation - Schedule of Information Regarding Standard and Market Condition Based Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Standard stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 3,277,991 | 3,421,121 | 3,596,533 | 3,486,157 |
Options vested and expected to vest using estimated forfeiture rates (in shares) | 3,175,002 | 3,223,919 | 3,452,487 | |
Options exercisable (in shares) | 2,633,990 | 2,131,268 | 2,252,744 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 7.99 | $ 8.44 | $ 8.45 | $ 8.30 |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Exercise Price (in dollars per share) | 7.99 | 8.43 | 8.36 | |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 7.94 | $ 8.22 | $ 7.59 | |
Options outstanding, Weighted Average Remaining Contractual Life (years) | 2 years 10 months 17 days | 3 years 11 months 26 days | 4 years 2 months 23 days | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | 2 years 9 months 10 days | 3 years 10 months 13 days | 4 years 1 month 27 days | |
Options exercisable, Weighted Average Remaining Contractual Life (years) | 2 years 1 month 20 days | 3 years 1 month 6 days | 3 years 6 months 21 days | |
Options outstanding, Aggregate Intrinsic Value | $ 2.2 | $ 9 | $ 12.5 | |
Options vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value | 2.2 | 8.5 | 12.3 | |
Options exercisable, Aggregate Intrinsic Value | $ 2.1 | $ 6.4 | $ 9.9 | |
Market condition based stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 272,081 | 225,000 | 200,000 | 50,000 |
Options vested and expected to vest using estimated forfeiture rates (in shares) | 272,081 | 209,141 | 184,125 | |
Options exercisable (in shares) | 272,081 | 65,625 | 0 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.44 | $ 8.39 | $ 9.05 | $ 11,940 |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Exercise Price (in dollars per share) | 8.44 | 8.38 | 9.12 | |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.44 | $ 8.09 | $ 0 | |
Options outstanding, Weighted Average Remaining Contractual Life (years) | 1 year 10 months 27 days | 5 years 6 months | 5 years 11 months 1 day | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | 1 year 10 months 27 days | 5 years 5 months 26 days | 5 years 10 months 24 days | |
Options exercisable, Weighted Average Remaining Contractual Life (years) | 1 year 10 months 27 days | 5 years 2 months 1 day | 0 days | |
Options outstanding, Aggregate Intrinsic Value | $ 0 | $ 0.5 | $ 0.5 | |
Options vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value | 0 | 0.5 | 0.5 | |
Options exercisable, Aggregate Intrinsic Value | $ 0 | $ 0.2 | $ 0 |
Stock-based Compensation - Ad52
Stock-based Compensation - Additional Information Regarding Options Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Standard stock options | $3.72 - $3.72 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $ 3.72 |
Exercise price range, upper range limit | $ 3.72 |
Number Outstanding (in shares) | shares | 938 |
Weighted Average Remaining Contractual Life (Years) | 1 year 6 months 14 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.72 |
Number Exercisable (in shares) | shares | 938 |
Weighted Average Exercise Price (in dollars per share) | $ 3.72 |
Standard stock options | 3.85 - 3.85 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 3.85 |
Exercise price range, upper range limit | $ 3.85 |
Number Outstanding (in shares) | shares | 600,000 |
Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 13 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.85 |
Number Exercisable (in shares) | shares | 600,000 |
Weighted Average Exercise Price (in dollars per share) | $ 3.85 |
Standard stock options | 4.95 - 6.66 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 4.95 |
Exercise price range, upper range limit | $ 6.66 |
Number Outstanding (in shares) | shares | 374,068 |
Weighted Average Remaining Contractual Life (Years) | 4 years 1 month 17 days |
Weighted Average Exercise Price (in dollars per share) | $ 6.34 |
Number Exercisable (in shares) | shares | 263,312 |
Weighted Average Exercise Price (in dollars per share) | $ 6.23 |
Standard stock options | 6.86 - 8.09 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 6.86 |
Exercise price range, upper range limit | $ 8.09 |
Number Outstanding (in shares) | shares | 405,525 |
Weighted Average Remaining Contractual Life (Years) | 4 years 7 months 27 days |
Weighted Average Exercise Price (in dollars per share) | $ 7.82 |
Number Exercisable (in shares) | shares | 206,030 |
Weighted Average Exercise Price (in dollars per share) | $ 7.83 |
Standard stock options | 8.13 - 8.65 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 8.13 |
Exercise price range, upper range limit | $ 8.65 |
Number Outstanding (in shares) | shares | 386,949 |
Weighted Average Remaining Contractual Life (Years) | 4 years |
Weighted Average Exercise Price (in dollars per share) | $ 8.54 |
Number Exercisable (in shares) | shares | 196,434 |
Weighted Average Exercise Price (in dollars per share) | $ 8.56 |
Standard stock options | 8.70 - 9.19 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 8.70 |
Exercise price range, upper range limit | $ 9.19 |
Number Outstanding (in shares) | shares | 378,506 |
Weighted Average Remaining Contractual Life (Years) | 2 years 6 months 3 days |
Weighted Average Exercise Price (in dollars per share) | $ 9.04 |
Number Exercisable (in shares) | shares | 279,659 |
Weighted Average Exercise Price (in dollars per share) | $ 9.10 |
Standard stock options | 9.20 - 9.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 9.20 |
Exercise price range, upper range limit | $ 9.20 |
Number Outstanding (in shares) | shares | 44,300 |
Weighted Average Remaining Contractual Life (Years) | 6 months 14 days |
Weighted Average Exercise Price (in dollars per share) | $ 9.20 |
Number Exercisable (in shares) | shares | 44,300 |
Weighted Average Exercise Price (in dollars per share) | $ 9.20 |
Standard stock options | 9.53 - 9.53 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 9.53 |
Exercise price range, upper range limit | $ 9.53 |
Number Outstanding (in shares) | shares | 734,000 |
Weighted Average Remaining Contractual Life (Years) | 1 year 11 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 9.53 |
Number Exercisable (in shares) | shares | 734,000 |
Weighted Average Exercise Price (in dollars per share) | $ 9.53 |
Standard stock options | 9.61 - 12.48 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 9.61 |
Exercise price range, upper range limit | $ 12.48 |
Number Outstanding (in shares) | shares | 336,414 |
Weighted Average Remaining Contractual Life (Years) | 2 years 7 months 20 days |
Weighted Average Exercise Price (in dollars per share) | $ 11.82 |
Number Exercisable (in shares) | shares | 292,026 |
Weighted Average Exercise Price (in dollars per share) | $ 11.92 |
Standard stock options | 12.49 - 14.02 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 12.49 |
Exercise price range, upper range limit | $ 14.02 |
Number Outstanding (in shares) | shares | 17,291 |
Weighted Average Remaining Contractual Life (Years) | 1 year 7 days |
Weighted Average Exercise Price (in dollars per share) | $ 13.74 |
Number Exercisable (in shares) | shares | 17,291 |
Weighted Average Exercise Price (in dollars per share) | $ 13.74 |
Standard stock options | $3.72 - $14.02 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 3.72 |
Exercise price range, upper range limit | $ 14.02 |
Number Outstanding (in shares) | shares | 3,277,991 |
Weighted Average Remaining Contractual Life (Years) | 2 years 10 months 17 days |
Weighted Average Exercise Price (in dollars per share) | $ 7.99 |
Number Exercisable (in shares) | shares | 2,633,990 |
Weighted Average Exercise Price (in dollars per share) | $ 7.94 |
Standard stock options | $8.09 - $8.09 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 8.09 |
Exercise price range, upper range limit | 8.09 |
Standard stock options | 8.65 - 8.65 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 8.65 |
Exercise price range, upper range limit | $ 8.65 |
Market condition based stock options | $8.09 - $8.09 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 135,000 |
Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 27 days |
Weighted Average Exercise Price (in dollars per share) | $ 8.09 |
Number Exercisable (in shares) | shares | 135,000 |
Weighted Average Exercise Price (in dollars per share) | $ 8.09 |
Market condition based stock options | 8.65 - 8.65 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 84,581 |
Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 27 days |
Weighted Average Exercise Price (in dollars per share) | $ 8.65 |
Number Exercisable (in shares) | shares | 84,581 |
Weighted Average Exercise Price (in dollars per share) | $ 8.65 |
Market condition based stock options | 9.00 - 9.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 9 |
Exercise price range, upper range limit | $ 9 |
Number Outstanding (in shares) | shares | 52,500 |
Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 27 days |
Weighted Average Exercise Price (in dollars per share) | $ 9 |
Number Exercisable (in shares) | shares | 52,500 |
Weighted Average Exercise Price (in dollars per share) | $ 9 |
Market condition based stock options | $8.09 - $9.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 8.09 |
Exercise price range, upper range limit | $ 9 |
Number Outstanding (in shares) | shares | 272,081 |
Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 27 days |
Weighted Average Exercise Price (in dollars per share) | $ 8.44 |
Number Exercisable (in shares) | shares | 272,081 |
Weighted Average Exercise Price (in dollars per share) | $ 8.44 |
Stock-Based Compensation - Sc53
Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Detail) - RSUs outstanding - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning outstanding balance (in shares) | 427,192 | 487,423 | 564,891 |
Awarded (in shares) | 483,015 | 320,880 | 281,290 |
Released (in shares) | (198,058) | (247,556) | (299,277) |
Forfeited (in shares) | (203,269) | (133,555) | (59,481) |
Ending outstanding balance (in shares) | 508,880 | 427,192 | 487,423 |
Weighted average grant date fair value, awarded (in dollars per share) | $ 8.46 | $ 8.67 | $ 8.16 |
Released, fair value of released RSU's | $ 1,991 | $ 2,118 | $ 2,626 |
Stock-Based Compensation - Sc54
Stock-Based Compensation - Schedule of Information Regarding Restricted Stock Units Outstanding (Detail) - RSUs outstanding - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs outstanding, number of Shares | 508,880 | 427,192 | 487,423 | 564,891 |
RSUs vested and expected to vest using estimated forfeiture rates, number of shares | 414,847 | 349,759 | 414,934 | |
RSUs outstanding, weighted average remaining contractual life (years) | 1 year 3 months 18 days | 11 months 4 days | 10 months 24 days | |
RSUs vested and expected to vest using estimated forfeiture rates, weighted average remaining contractual life (years) | 1 year 1 month 27 days | 9 months 18 days | 10 months 13 days | |
RSUs outstanding, aggregate intrinsic value | $ 3.6 | $ 4.5 | $ 5.7 | |
RSUs vested and expected to vest using estimated forfeiture rates, aggregate intrinsic value | 2.9 | 3.7 | 4.8 | |
RSUs outstanding, fair value | $ 3.6 | $ 4.5 | $ 5.7 |
Stock-Based Compensation - Sc55
Stock-Based Compensation - Schedule of Restricted Stock Awards Activity (Detail) - Restricted stock awards outstanding - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning outstanding balance (in shares) | 77,540 | 21,356 | 35,364 |
Awarded (in shares) | 44,538 | 77,540 | 21,356 |
Released (in shares) | (77,540) | (21,356) | (35,364) |
Forfeited (in shares) | 0 | 0 | 0 |
Ending outstanding balance (in shares) | 44,538 | 77,540 | 21,356 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $ 6.52 | $ 12.26 | $ 10.97 |
Weighted average grant date fair value, awarded (in dollars per share) | 8.65 | 6.52 | 12.26 |
Weighted average grant date fair value, released (in dollars per share) | 6.52 | 12.26 | 10.97 |
Weighted average grant date fair value, ending balance (in dollars per share) | $ 8.65 | $ 6.52 | $ 12.26 |
Total fair value of awards released | $ 671 | $ 139 | $ 434 |
Stock-Based Compensation - Sc56
Stock-Based Compensation - Schedule of Stock Options, Market Condition Based Stock Options and Employee Stock Purchase Plan, Valuation Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 6 months | 6 months | 6 months |
Interest rate | 0.90% | 0.40% | 0.10% |
Volatility | 48.00% | 53.00% | 48.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Standard stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 4 years 7 months 6 days | 4 years 6 months | 4 years 8 months 12 days |
Interest rate | 2.00% | 1.20% | 1.40% |
Volatility | 52.00% | 56.00% | 56.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Market condition based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 7 years | 7 years | 7 years |
Interest rate | 2.00% | 1.60% | 1.90% |
Volatility | 55.00% | 59.00% | 65.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Sc57
Stock-Based Compensation - Schedule of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 6,102 | $ 6,111 | $ 5,470 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,025 | 1,280 | 1,116 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 981 | 1,297 | 1,303 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 4,096 | $ 3,534 | $ 3,051 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 115 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | (16) |
Net current period other comprehensive income (loss) | (16) |
Ending Balance | 99 |
Unrealized Gains and Losses on Available-for Sale Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (7) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | (16) |
Net current period other comprehensive income (loss) | (16) |
Ending Balance | (23) |
Foreign Currency Items | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 122 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | |
Net current period other comprehensive income (loss) | 0 |
Ending Balance | $ 122 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 26, 2017 | Oct. 22, 2014 | Nov. 01, 2007 | |
Equity [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||||
Stock repurchase program, additional authorized amount | $ 30,000,000 | ||||||
Repurchased shares | 105,750 | 48,687 | 0 | ||||
Repurchased shares, value | $ 729,000 | $ 328,000 | $ 729,000 | ||||
Stock repurchase program, average cost | $ 6.90 | $ 6.73 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 33,400,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||
Series B Junior Participating Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Right, exercise price (in dollars per share) | $ 30 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Charges | $ 0 | $ 0 | |
2017 Strategic Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | $ 0 | ||
Charges | 1,620,000 | ||
Non-cash activity | (41,000) | ||
Liability end of period | 1,579,000 | 0 | |
2017 Strategic Restructuring Plan | Employee Separation Costs | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | 0 | ||
Charges | 1,515,000 | ||
Non-cash activity | 7,000 | ||
Liability end of period | 1,522,000 | 0 | |
2017 Strategic Restructuring Plan | Asset-Related Charges | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | 0 | ||
Charges | 22,000 | ||
Non-cash activity | (22,000) | ||
Liability end of period | 0 | 0 | |
2017 Strategic Restructuring Plan | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | 0 | ||
Charges | 82,000 | ||
Non-cash activity | (25,000) | ||
Liability end of period | $ 57,000 | $ 0 |
Restructuring Costs (Textual) (
Restructuring Costs (Textual) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)position | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Charges | $ 0 | $ 0 | |
2017 Strategic Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, number of position eliminated | position | 56 | ||
Restructuring charges, percentage of position eliminated | 41.00% | ||
Charges | $ 1,620,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2009 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Income from discontinued operations | $ 187 | |||||||||||
Disposal group, including discontinued operation, consideration | 2,700 | |||||||||||
Disposal group, including discontinued operations, cash and cash equivalents | 320 | |||||||||||
Disposal group, including discontinued operation, accounts, notes and loans receivable, net | $ 2,400 | |||||||||||
Proceeds from discontinued operations | $ 0 | $ 1,000 | $ 0 | |||||||||
Income from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 649 | $ 0 | $ 0 | 649 | $ 0 | |
Discontinued operation, tax effect of discontinued operation | $ 351 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax benefit (Provisions) from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (loss) from continuing operations before provisions for income taxes | $ (12,109) | $ (5,243) | $ (14,746) | $ (12,713) | $ (11,363) | $ 10,778 | $ (9,528) | $ (4,396) | $ (44,811) | $ (14,509) | $ 4,449 |
Provision for income taxes from continuing operations | $ (185) | $ (44) | $ (99) | $ (152) | $ (26,785) | $ (3,760) | $ (3,323) | $ (1,701) | $ (480) | $ (25,521) | $ (1,591) |
Effective tax rate | (1.10%) | (175.90%) | 35.80% |
Income Taxes - Details of Pre-T
Income Taxes - Details of Pre-Tax Book Income (Loss) from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (23,994) | $ (14,656) | $ 21,160 | ||||||||
Foreign | (20,817) | 147 | (16,711) | ||||||||
Income (loss) from continuing operations before provision for income taxes | $ (12,109) | $ (5,243) | $ (14,746) | $ (12,713) | $ (11,363) | $ 10,778 | $ (9,528) | $ (4,396) | $ (44,811) | $ (14,509) | $ 4,449 |
Income Taxes - Summary of Benef
Income Taxes - Summary of Benefit (Provision) for Income Taxes from Continuing Operation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
United States federal | $ 0 | $ (1,649) | $ (1,426) | ||||||||
State and local | (5) | 859 | (12) | ||||||||
Foreign | (448) | (442) | (389) | ||||||||
Total current | (453) | (1,232) | (1,827) | ||||||||
Deferred: | |||||||||||
United States federal | 0 | (24,261) | 585 | ||||||||
State and local | 0 | 0 | 0 | ||||||||
Foreign | (27) | (28) | (349) | ||||||||
Total deferred | (27) | (24,289) | 236 | ||||||||
Income tax, total | $ (185) | $ (44) | $ (99) | $ (152) | $ (26,785) | $ (3,760) | $ (3,323) | $ (1,701) | $ (480) | $ (25,521) | $ (1,591) |
Income Taxes - Details of Signi
Income Taxes - Details of Significant Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 13,394 | $ 15,337 |
State income taxes | 1 | 1 |
Deferred revenue | 5,349 | 458 |
Research and development and other credits | 11,447 | 11,418 |
Reserves and accruals recognized in different periods | 3,088 | 5,397 |
Basis difference in investment | 583 | 969 |
Capitalized R&D expenses | 3,623 | 4,569 |
Depreciation and amortization | 413 | 585 |
Deferred rent | 183 | 306 |
Other | 0 | 2 |
Total deferred tax assets | 38,081 | 39,042 |
Valuation allowance | (37,680) | (38,683) |
Net deferred tax assets | 401 | 359 |
Deferred Tax Liabilities, Foreign Credits | (43) | (33) |
Deferred Tax Liabilities, Net | (43) | (33) |
Deferred Taxes, Net | $ 358 | $ 326 |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between the Benefit (Provision) for Income Taxes at Statutory Rate and Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Sale of IP rights to foreign subsidiary | 0.00% | (13.80%) | 22.50% |
Benefit from foreign losses | 0.00% | 0.00% | 7.80% |
Foreign withholding | (0.20%) | (1.20%) | 0.50% |
Stock compensation expense | (2.00%) | (6.60%) | 5.80% |
Meals & entertainment | 0.00% | 0.00% | 0.10% |
Foreign rate differential | (17.00%) | (1.20%) | (24.00%) |
Prior year true-up items | (0.10%) | (0.30%) | 1.70% |
Tax reserves | (0.10%) | 1.80% | 3.90% |
Loss on foreign share transfer | 0.00% | 0.00% | 5.90% |
Credits | 0.40% | 1.60% | (35.50%) |
State Refunds | 0.00% | 3.80% | 0.00% |
Other | 0.00% | (1.60%) | 3.90% |
2017 Tax Act impact - federal rate change | (28.70%) | 0.00% | 0.00% |
Valuation allowance | 11.60% | (193.40%) | 8.20% |
Effective tax rate | (1.10%) | (175.90%) | 35.80% |
Income Taxes - Details of Begin
Income Taxes - Details of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 6,232 | $ 6,285 | $ 1,744 |
Gross increases for tax positions of prior years | 0 | 0 | 141 |
Gross decreases for federal tax rate change for tax positions of prior years | (1,670) | (22) | (15) |
Gross increases for tax positions of current year | 110 | 111 | 4,415 |
Lapse of statute of limitations | 0 | (142) | 0 |
Balance at end of year | $ 4,672 | $ 6,232 | $ 6,285 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Income Taxes [Line Items] | ||
Excess tax benefit, amount | $ 3,500 | |
Tax Cuts And Jobs Act Of 2017, change in tax rate, deferred tax asset, provisional income tax expense (benefit) | 12,900 | |
Valuation allowance, additional | 28,100 | |
Accrued interest or penalties related to uncertain tax positions | 10 | |
Total amount of unrecognized tax benefits | 97 | |
Canada | Research and development | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | $ 1,700 | |
Tax credit carryforward expiration year | 2,037 | |
Domestic tax authority | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 51,400 | |
Net operating losses expiration beginning period | 2,019 | |
Federal net operating losses expiration ending Period | 2,037 | |
Tax credit carryforwards | $ 10,000 | |
Federal credit carryforward expiration, beginning period | 2,018 | |
Federal credit carryforward expiration ending Period | 2,037 | |
State and local jurisdiction | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 53,200 | |
Net operating losses expiration beginning period | 2,028 | |
Tax credit carryforwards | $ 2,100 | |
Foreign tax authority | Ireland | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 3,200 | |
Accounting Standards Update 2016-16 | Accumulated Deficit | ||
Income Taxes [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption | $ (7,000) |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation used in Computing Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Income (loss) from continuing operations | $ (12,294) | $ (5,287) | $ (14,845) | $ (12,865) | $ (38,148) | $ 7,018 | $ (6,205) | $ (2,695) | $ (45,291) | $ (40,030) | $ 2,858 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 649 | 0 | 0 | 649 | 0 |
Net income (loss) used in computing basic net income (loss) per share | $ (12,294) | $ (5,287) | $ (14,845) | $ (12,865) | $ (38,148) | $ 7,018 | $ (5,556) | $ (2,695) | $ (45,291) | $ (39,381) | $ 2,858 |
Denominator: | |||||||||||
Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) | 29,250 | 29,245 | 29,193 | 29,024 | 28,860 | 28,849 | 28,834 | 28,493 | 29,179 | 28,759 | 28,097 |
Dilutive potential common shares: | |||||||||||
Stock options, ESPP, Restricted Stock and RSUs (in shares) | 0 | 0 | 918 | ||||||||
Shares used in computation of diluted net income (loss) per share (in shares) | 29,250 | 29,245 | 29,193 | 29,024 | 28,860 | 29,298 | 28,834 | 28,493 | 29,179 | 28,759 | 29,015 |
Basic net income (loss) per share: | |||||||||||
Basic net income (loss) per share - Continuing operations (in dollars per share) | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ (1.32) | $ 0.24 | $ (0.22) | $ (0.09) | $ (1.55) | $ (1.39) | $ 0.10 |
Basic net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0.02 | 0 |
Basic net income per share (in dollars per share) | (0.42) | (0.18) | (0.51) | (0.44) | (1.32) | 0.24 | (0.20) | (0.09) | (1.55) | (1.37) | 0.10 |
Diluted net income (loss) per share: | |||||||||||
Diluted net income (loss) per share - Continuing operations (in dollars per share) | (0.42) | (0.18) | (0.51) | (0.44) | (1.32) | 0.24 | (0.22) | (0.09) | (1.55) | (1.39) | 0.10 |
Diluted net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0.02 | 0 |
Diluted net income per share (in dollars per shares) | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ (1.32) | $ 0.24 | $ (0.20) | $ (0.09) | $ (1.55) | $ (1.37) | $ 0.10 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Earnings Per Share [Abstract] | |
Options to purchase shares of common stock | shares | 1.2 |
Average fair market value of stock | $ / shares | $ 11.16 |
Net Income Per Share - Additi72
Net Income Per Share - Additional Information (Detail 2) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase shares of common stock | 1,200,000 | ||
Standard and market condition stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase shares of common stock | 3,550,072 | 3,646,121 | |
Restricted stock awards outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase shares of common stock | 44,538 | 77,540 | |
RSUs outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase shares of common stock | 508,880 | 427,192 | |
ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase shares of common stock | 14,425 | 17,506 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | 96 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Company matched employee's contribution | 50.00% | 25.00% | 25.00% |
Employee's contribution | $ 4,000 | $ 3,000 | $ 2,000 |
Employee Benefit Plan - Details
Employee Benefit Plan - Details of Company Contribution to Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan [Abstract] | |||
Company contribution to 401 (k) plan | $ 259 | $ 172 | $ 127 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) ft² in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 31, 2015ft² | Feb. 28, 2015ft² | |
Operating Leased Assets [Line Items] | |||||
Operating lease expiration year | 2,023 | ||||
Rent expense | $ | $ 1,307 | $ 1,283 | $ 1,291 | ||
Lease agreements | Lease property one | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease facility area | 33 | ||||
Lease agreements | Lease property two | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease facility area | 42 |
Commitments - Minimum Future Le
Commitments - Minimum Future Lease Payments Obligations (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating leases, 2018 | $ 1,306 |
Operating leases, 2019 | 943 |
Operating leases, 2020 | 868 |
Operating leases, 2021 | 894 |
Operating leases, 2022 | 921 |
Operating leases, thereafter | 310 |
Operating leases, total | $ 5,242 |
Contingencies (Details)
Contingencies (Details) - Sep. 29, 2017 $ in Millions | USD ($) | KRW (₩) |
Samsung | Pending litigation | Tax withholdings on royalty payments | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 6.3 | ₩ 7,841,324,165 |
Segment Reporting, Geographic78
Segment Reporting, Geographic Information, and Significant Customers - Additional Information (Detail) - segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of reporting segment | 1 | ||
Maximum | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets outside United States of America | 10.00% | 10.00% | 10.00% |
Segment Reporting, Geographic79
Segment Reporting, Geographic Information, and Significant Customers - Schedule of Revenue by Market Areas (Detail) - Net Revenues - Market | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | 100.00% |
Mobile, Wearables, and Consumer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 48.00% | 57.00% | 62.00% |
Gaming Devices | |||
Concentration Risk [Line Items] | |||
Concentration risk | 31.00% | 24.00% | 24.00% |
Automotive | |||
Concentration Risk [Line Items] | |||
Concentration risk | 15.00% | 7.00% | 7.00% |
Medical | |||
Concentration Risk [Line Items] | |||
Concentration risk | 6.00% | 12.00% | 7.00% |
Segment Reporting, Geographic80
Segment Reporting, Geographic Information, and Significant Customers - Summary of Revenues by Geographic Areas (Detail) - Net Revenues - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | 100.00% |
North America | |||
Concentration Risk [Line Items] | |||
Concentration risk | 22.00% | 32.00% | 28.00% |
Europe | |||
Concentration Risk [Line Items] | |||
Concentration risk | 15.00% | 8.00% | 5.00% |
Asia | |||
Concentration Risk [Line Items] | |||
Concentration risk | 63.00% | 60.00% | 67.00% |
Segment Reporting, Geographic81
Segment Reporting, Geographic Information, and Significant Customers - Summary of Geographic Revenue as Percentage of Total Revenues by Country (Detail) - Net Revenues - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | 100.00% |
Japan | |||
Concentration Risk [Line Items] | |||
Concentration risk | 39.00% | 11.00% | 14.00% |
United States of America | |||
Concentration Risk [Line Items] | |||
Concentration risk | 22.00% | 26.00% | 27.00% |
Korea | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | 47.00% | 46.00% |
Countries of which none are more than 10% in a year | |||
Concentration Risk [Line Items] | |||
Concentration risk | 21.00% | 16.00% | 13.00% |
Segment Reporting, Geographic82
Segment Reporting, Geographic Information, and Significant Customers - Assets by Geographic Information (Details) - Assets, Total - Geographic Concentration Risk | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Concentration risk | 100.00% | 100.00% |
United States of America | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Concentration risk | 83.00% | 83.00% |
Canada | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Concentration risk | 8.00% | 8.00% |
Rest of World | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Concentration risk | 9.00% | 9.00% |
Segment Reporting, Geographic83
Segment Reporting, Geographic Information, and Significant Customers - Summary of Customers Comprising More Than 10% in Net Revenue (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Revenues | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk | 49.00% | 62.00% | 64.00% |
Net Revenues | Customer Concentration Risk | Samsung Electronics | |||
Concentration Risk [Line Items] | |||
Concentration risk | 0.00% | 33.00% | 32.00% |
Net Revenues | Customer Concentration Risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk | 20.00% | 13.00% | 18.00% |
Net Revenues | Customer Concentration Risk | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | 14.00% | 14.00% |
Net Revenues | Customer Concentration Risk | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk | 11.00% | 2.00% | 0.00% |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | ||
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk | 55.00% | ||
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer F | |||
Concentration Risk [Line Items] | |||
Concentration risk | 26.00% | 46.00% | 31.00% |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer G | |||
Concentration Risk [Line Items] | |||
Concentration risk | 16.00% | ||
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer H | |||
Concentration Risk [Line Items] | |||
Concentration risk | 44.00% | ||
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer I | |||
Concentration Risk [Line Items] | |||
Concentration risk | 11.00% |
Quarterly Results of Operatio84
Quarterly Results of Operations (Unaudited) - Quarterly Consolidated Statement of Operations Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 6,896 | $ 11,863 | $ 7,030 | $ 9,224 | $ 9,293 | $ 26,306 | $ 7,864 | $ 13,623 | $ 35,013 | $ 57,086 | $ 63,393 |
Gross profit | 6,857 | 11,802 | 6,976 | 9,181 | 9,235 | 26,255 | 7,805 | 13,600 | |||
Operating income (loss) | (12,216) | (5,443) | (14,911) | (12,852) | (11,208) | 10,114 | (9,561) | (4,608) | (45,422) | (15,263) | 4,719 |
Income (loss) from continuing operations before provisions for income taxes | (12,109) | (5,243) | (14,746) | (12,713) | (11,363) | 10,778 | (9,528) | (4,396) | (44,811) | (14,509) | 4,449 |
Benefit (provision) for income taxes | (185) | (44) | (99) | (152) | (26,785) | (3,760) | (3,323) | (1,701) | (480) | (25,521) | (1,591) |
Income (loss) from continuing operations | (12,294) | (5,287) | (14,845) | (12,865) | (38,148) | 7,018 | (6,205) | (2,695) | (45,291) | (40,030) | 2,858 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 649 | 0 | 0 | 649 | 0 |
Net income (loss) | $ (12,294) | $ (5,287) | $ (14,845) | $ (12,865) | $ (38,148) | $ 7,018 | $ (5,556) | $ (2,695) | $ (45,291) | $ (39,381) | $ 2,858 |
Basic net income (loss) per share - Continuing operations (in dollars per share) | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ (1.32) | $ 0.24 | $ (0.22) | $ (0.09) | $ (1.55) | $ (1.39) | $ 0.10 |
Basic net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0.02 | 0 |
Basic net income (loss) per share (in dollars per share) | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ (1.32) | $ 0.24 | $ (0.20) | $ (0.09) | $ (1.55) | $ (1.37) | $ 0.10 |
Shares used in calculating basic net income (loss) per share (in shares) | 29,250 | 29,245 | 29,193 | 29,024 | 28,860 | 28,849 | 28,834 | 28,493 | 29,179 | 28,759 | 28,097 |
Diluted net income (loss) per share - Continuing operations (in dollars per share) | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ (1.32) | $ 0.24 | $ (0.22) | $ (0.09) | $ (1.55) | $ (1.39) | $ 0.10 |
Diluted net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0.02 | 0 |
Diluted net income (loss) per share (in dollars per shares) | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ (1.32) | $ 0.24 | $ (0.20) | $ (0.09) | $ (1.55) | $ (1.37) | $ 0.10 |
Shares used in computation of diluted net income (loss) per share (in shares) | 29,250 | 29,245 | 29,193 | 29,024 | 28,860 | 29,298 | 28,834 | 28,493 | 29,179 | 28,759 | 29,015 |
Samsung Electronics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 19,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 0 | $ 15 | $ 28 |
Charged to Costs and Expenses | 2 | (6) | |
Deductions/ Write-offs (Recoveries) | 17 | 7 | |
Balance at End of Period | $ 0 | $ 0 | $ 15 |