Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 30,854,570 | ||
Trading Symbol | IMMR | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 284,594,233 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 110,988 | $ 24,622 |
Short-term investments | 13,930 | 21,916 |
Accounts and other receivables | 1,051 | 806 |
Prepaid expenses and other current assets | 9,856 | 736 |
Total current assets | 135,825 | 48,080 |
Property and equipment, net | 2,343 | 3,150 |
Deferred income tax assets | 295 | 401 |
Other assets, net | 7,532 | 344 |
Total assets | 145,995 | 51,975 |
Current liabilities: | ||
Accounts payable | 3,612 | 6,647 |
Accrued compensation | 3,948 | 4,133 |
Other current liabilities | 3,194 | 3,896 |
Deferred revenue | 4,591 | 4,424 |
Total current liabilities | 15,345 | 19,100 |
Long-term deferred revenue | 30,203 | 22,303 |
Other long-term liabilities | 787 | 915 |
Total liabilities | 46,335 | 42,318 |
Commitments and contingencies (Notes 14 and 15) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital – $0.001 par value; 100,000,000 shares authorized; 37,652,498 and 35,950,518 shares issued, respectively; 30,829,351 and 29,263,828 shares outstanding, respectively | 246,415 | 228,046 |
Accumulated other comprehensive income | 116 | 99 |
Accumulated deficit | (98,521) | (171,616) |
Treasury stock at cost: 6,823,147 and 6,686,690 shares, respectively | (48,350) | (46,872) |
Total stockholders’ equity | 99,660 | 9,657 |
Total liabilities and stockholders’ equity | $ 145,995 | $ 51,975 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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) | 37,652,498 | 35,950,518 |
Common stock, shares outstanding (in shares) | 30,829,351 | 29,263,828 |
Treasury stock, shares (in shares) | 6,823,147 | 6,686,690 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Revenue | $ 110,979 | $ 35,013 | $ 57,086 |
Costs and expenses: | |||
Cost of revenues | 218 | 197 | 197 |
Sales and marketing | 6,118 | 13,516 | 14,613 |
Research and development | 9,727 | 11,759 | 13,388 |
General and administrative | 41,815 | 53,343 | 44,151 |
Restructuring costs | 0 | 1,620 | 0 |
Total costs and expenses | 57,878 | 80,435 | 72,349 |
Operating income (loss) | 53,101 | (45,422) | (15,263) |
Interest and other income | 1,832 | 337 | 817 |
Other income (expense) | (198) | 274 | (63) |
Income (loss) from continuing operations before provision for income taxes | 54,735 | (44,811) | (14,509) |
Provision for income taxes from continuing operations | (392) | (480) | (25,521) |
Income (loss) from continuing operations | 54,343 | (45,291) | (40,030) |
Income from discontinued operations, net of tax | 0 | 0 | 649 |
Net income (loss) | $ 54,343 | $ (45,291) | $ (39,381) |
Basic net income (loss) per share: | |||
Continuing operations (in dollars per share) | $ 1.78 | $ (1.55) | $ (1.39) |
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 |
Total (in dollars per share) | $ 1.78 | $ (1.55) | $ (1.37) |
Shares used in calculating basic net income (loss) per share (in shares) | 30,459 | 29,179 | 28,759 |
Diluted net income (loss) per share: | |||
Continuing operations (in dollars per share) | $ 1.73 | $ (1.55) | $ (1.39) |
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 |
Total (in dollars per shares) | $ 1.73 | $ (1.55) | $ (1.37) |
Shares used in calculating diluted net income (loss) per share (in shares) | 31,407 | 29,179 | 28,759 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized gains (losses) on short-term investments | $ 17 | $ (16) | $ 8 |
Foreign currency translation adjustments | 0 | 0 | 21 |
Total other comprehensive income (loss) | 17 | (16) | 29 |
Total comprehensive income (loss) | 54,360 | (45,307) | (39,352) |
Royalty and license | |||
Revenues: | |||
Revenue | 110,557 | 34,089 | 56,030 |
Development, services, and other | |||
Revenues: | |||
Revenue | $ 422 | $ 924 | $ 1,056 |
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, 2015 | $ 86,615 | $ 212,115 | $ 86 | $ (79,948) | $ (45,638) |
Beginning balance (in 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 (in shares) | 105,750 | 105,750 | |||
Issuance of stock for ESPP purchase | $ 307 | $ 307 | |||
Issuance of stock for ESPP purchase (in 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 (in 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 (in 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 (in 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 (in shares) | 48,687 | 48,687 | |||
Issuance of stock for ESPP purchase | $ 328 | $ 328 | |||
Issuance of stock for ESPP purchase (in shares) | 48,750 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 518 | $ 518 | |||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 70,608 | ||||
Release of restricted stock units and awards, including related stock compensation | 2,661 | $ 2,661 | |||
Release of restricted stock units and awards (in shares) | 275,598 | ||||
Stock based compensation for stock options | 3,441 | $ 3,441 | |||
Ending balance at Dec. 31, 2017 | 9,657 | $ 228,046 | 99 | (171,616) | $ (46,872) |
Ending balance (in shares) at Dec. 31, 2017 | 35,950,518 | 6,686,690 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 54,343 | 54,343 | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 17 | 17 | |||
Foreign currency translation adjustments | $ 0 | ||||
Repurchase of stock (in shares) | 0 | ||||
Issuance of stock for ESPP purchase | $ 218 | $ 218 | |||
Issuance of stock for ESPP purchase (in shares) | 26,689 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 7,987 | $ 9,465 | $ (1,478) | ||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 1,452,306 | 136,457 | |||
Release of restricted stock units and awards, including related stock compensation | 2,806 | $ 2,806 | |||
Release of restricted stock units and awards (in shares) | 222,985 | ||||
Stock based compensation for stock options | 5,880 | $ 5,880 | |||
Ending balance at Dec. 31, 2018 | $ 99,660 | $ 246,415 | $ 116 | $ (98,521) | $ (48,350) |
Ending balance (in shares) at Dec. 31, 2018 | 37,652,498 | 6,823,147 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows provided by (used in) operating activities: | |||
Net income (loss) | $ 54,343 | $ (45,291) | $ (39,381) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization of property and equipment | 855 | 968 | 910 |
Stock-based compensation | 8,686 | 6,102 | 6,111 |
Deferred income taxes | 109 | (32) | 24,274 |
Loss on disposal of equipment | 26 | 1 | 19 |
Income from discontinued operations | 0 | 0 | (649) |
Changes in operating assets and liabilities: | |||
Accounts and other receivables | (245) | 576 | (171) |
Prepaid income taxes | 0 | 0 | 1,998 |
Prepaid expenses and other current assets | (4,015) | 141 | (86) |
Other assets | (7,188) | (197) | (275) |
Accounts payable | (3,035) | 696 | 5,322 |
Accrued compensation and other current liabilities | (887) | (1,111) | 967 |
Deferred revenue | 21,406 | (5,575) | 23,090 |
Other long-term liabilities | (131) | (107) | (87) |
Net cash provided by (used in) operating activities | 69,924 | (43,829) | 22,042 |
Cash flows provided by investing activities: | |||
Purchases of short-term investments | (17,693) | (23,807) | (32,813) |
Proceeds from maturities of short-term investments | 26,004 | 35,000 | 40,000 |
Purchases of property and equipment | (74) | (125) | (343) |
Proceeds from discontinued operations | 0 | 0 | 1,000 |
Net cash provided by investing activities | 8,237 | 11,068 | 7,844 |
Cash flows provided by financing activities: | |||
Issuance of common stock under employee stock purchase plan | 218 | 328 | 307 |
Exercise of stock options, net of shares withheld for employee taxes | 7,987 | 518 | 2,388 |
Purchases of treasury stock | 0 | (328) | (729) |
Net cash provided by financing activities | 8,205 | 518 | 1,966 |
Net increase (decrease) in cash and cash equivalents | 86,366 | (32,243) | 31,852 |
Cash and cash equivalents: | |||
Beginning of year | 24,622 | 56,865 | 25,013 |
End of year | 110,988 | 24,622 | 56,865 |
Supplemental disclosure of cash flow information: | |||
Cash paid for taxes | 151 | 191 | (419) |
Supplemental disclosure of noncash operating, investing, and financing activities: | |||
Amounts accrued for property and equipment | 0 | 0 | 22 |
Cashless option exercise under company stock plan | 1,478 | 0 | 177 |
Release of Restricted Stock Units and Awards under company stock plan | $ 2,806 | $ 2,661 | $ 2,257 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 business model under which it provides advanced tactile software, related tools, and technical assistance designed to help integrate its patented technology into its customers’ products or enhance the functionality of its patented technology to certain customers; and offers licenses to the Company's patented technology 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 U.S. 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 the accumulated other comprehensive income within stockholders’ equity. The Company recognizes an impairment charge in the consolidated statement of operations and comprehensive income (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 In May 2014, the FASB issued an Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers (Topic 606)" ("Accounting Standard Codification 606", "ASC 606"), which superseded most prior revenue recognition guidance under ASC Topic 605, "Revenue Recognition" ("ASC 605") including industry-specific guidance. The underlying principle of ASC 606 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that the entity expects to be entitled in exchange for those goods or services. The new standard provides a five-step analysis of transactions to determine when and how revenue is recognized, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption if the modified retrospective transition method is elected. The new standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The Company adopted the new revenue standard effective January 1, 2018 using the modified retrospective transition method where the cumulative effect of the initial application is recognized as an adjustment to the opening balance of the accumulated deficit at January 1, 2018, the date of adoption. Therefore, comparative prior periods have not been adjusted and continue to be presented under ASC 605. Refer to Note 2 to the consolidated financial statements for the Company's revised revenue recognition accounting policy and a summary of the impact of adoption of ASC 606. Deferred Revenue Deferred revenue consists of amounts that have been invoiced or paid, but have not been recognized as revenue. The amounts are primarily derived from the Company's fixed license fee agreements under which the Company is obliged to transfer both rights to its patent portfolio that exists when the contract is executed ("Performance Obligation A"), and rights to its patent portfolio as it evolves over the contract term ("Performance Obligation B"). Refer to Note 2 to the consolidated financial statements for detail discussion. Deferred revenue that will be recognizable 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 (in thousands): Year ended December 31, 2018 2017 2016 Advertising expense $ 67 $ 221 $ 102 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 7 for further information regarding the Company’s stock-based compensation assumptions and expenses. Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) as well as other items of comprehensive income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains (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 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, and revenue recognition. 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 subject to a concentration of revenues given certain key licensees that contributed a significant portion of the Company's total revenue. See Note 16 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 years ended December 31, 2018 and December 31, 2017 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 Adopted In March 2018, the FASB issued ASU 2018-05 "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update)", which updates SEC guidance released in December 2017 when the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Additional information regarding the adoption of this ASU and its material impact on the Company's consolidated financial statements is contained in Note 11 to the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 “Stock Compensation: Scope of Modification Accounting”. 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 adopted the standard effective January 1, 2018. The adoption of this ASU did not have a material impact on its 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 adopted the standard effective January 1, 2018. The adoption of this ASU did not have a material impact on its consolidated financial statements. Not yet adopted In July 2018, the FASB issued ASU 2018-09 "Codification Improvement" ("ASU 2018-09"). This ASU amends a wide variety of Topics in the Codification issued by FASB with technical corrections, clarifications, and other minor improvements, and should eliminate the need for periodic agenda requests for narrow and incremental items. Many of the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018 for public entities. The Company will adopt certain amendments in this ASU that are applicable, but does not expect a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). The amendments in this ASU expand the scope of Topic 718 to include share-based payment transaction for acquiring goods and services from nonemployees and supersede subtopic 505-50. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted but no earlier than adoption of Topic 606. The Company will adopt this ASU as of January 1, 2019 but does not expect a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted. The Company will adopt this ASU as of January 1, 2019 but does not expect a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases: Topic 842” (“ASU 2016-02” "Topic 842"), 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. Under Topic 842, lessees are required to recognize a lease liability and a right-of-use asset for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance of operating. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. Full retrospective application is prohibited. In July 2018, the FASB issued ASU 2018-10 "Codification Improvement to Topic 842, Leases" ("ASU 2018-10"). The FASB issued this separate ASU for the improvements related to ASC 2016-02 to increase stakeholders' awareness of the amendments and to expedite the improvements. In July 2018, the FASB issued ASU 2018-11 "Leases (Topic 842) Target Improvement" ("ASU 2018-11"). This ASU introduces a lessee model that will bring most leases of property, plant and equipment onto the balance sheet. It requires a lessee to recognize a lease obligation (present value of future lease payments) and also a “right of use asset” for all leases, although certain short-term leases are exempted from the standard. The ASU introduces two models for the subsequent measurement of the lease asset and liability, depending on whether the lease qualifies as a “finance lease” or an “operating lease”. This distinction focuses on whether or not effective control of the asset is being transferred from the lessor to the lessee. The effective date and transition requirements for these ASUs will be same as the effective date and transition requirements in Topic 842. The Company will adopt Topic 842 and applicable amendments on January 1, 2019 using a modified retrospective approach. The Company does not anticipate this adoption will have a material impact on its financial statements. The Company expects to establish a lease asset and corresponding lease liability of approximately $4 - $5 million upon adoption of the standard. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revised Revenue Recognition Accounting Policy On January 1, 2018, the Company adopted ASC 606 using the modified retrospective transition method. The new revenue standard has been applied to all contracts that were not completed as of the date of adoption. To the extent that modifications occurred prior to the adoption of ASC 606, the Company has reflected the aggregate impact of any modification when evaluating the impact of the adoption. The Company's revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements, along with less significant revenue earned from development, services and other revenue. The adoption of ASC 606 affected the Company's revenue recognition model for both fixed fee license revenue and per-unit royalty revenue presented as “royalty and license revenue” on the Company’s consolidated statements of operations and comprehensive income (loss). Although all of the Company's revenues in the periods presented have been derived from contracts with customers, revenues for the year ended December 31, 2018 have been recognized in accordance with ASC 606 while revenues for the other periods presented have been recognized under the previous revenue standard ASC 605. Fixed fee license revenue In applying ASC 606, the Company is required to recognize revenue from a fixed fee license agreement when it has satisfied its performance obligations, which typically occurs upon the transfer of rights to the Company's technology upon the execution of the license agreement. However, in certain contracts, the Company grants a license to its existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term. For such arrangements, the Company has concluded that it has two separate performance obligations: • Performance Obligation A: to transfer rights to the Company's patent portfolio as it exists when the contract is executed; • Performance Obligation B: to transfer rights to the Company's patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. Under the Company's previous accounting practices under ASC 605, fixed license fees were generally recognized on a straight-line basis over the contract term. As a result of the adoption of ASC 606, if a fixed fee license agreement contains only Performance Obligation A, the Company has recognized most or all of the revenue from the agreement at the inception of the contract. For fixed fee license agreements that contain both Performance Obligation A and B, the Company has allocated the transaction price based on the standalone price for each of the two performance obligations. The Company has developed a process, and established internal controls around such process, to estimate standalone prices related to Performance Obligation A and B using a number of factors primarily related to the attributes of its patent portfolio. Once the transaction price is allocated, the portion of the transaction price allocable to Performance Obligation A has been recognized in the quarter the license agreement is signed and the customer can benefit from rights provided in the contract, and the portion allocable to Performance Obligation B has been recognized on a straight-line basis over the contract term. For such contracts, a contract liability account will be established and included within "deferred revenue" on the consolidated balance sheet. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract have been presented on a net basis. Historically, certain of the Company's license agreements contained fixed fees related to past infringements for which the fixed fees were recognized as revenue or recorded as a deduction to its operating expense in the quarter the license agreement was signed. After the adoption of ASC 606, the Company has recognized revenue from such fixed fees related to past infringements in the same manner in the quarter the license agreement is signed. Payments for fixed fee license contracts typically are due in full within 30 - 45 days from execution of the contract. From time to time, the Company enters into a fixed fee license contract with payments due in a number of installments payable throughout the contract term. In such cases, the Company has determined if a significant financing component exists and if it does, the Company will recognize more or less revenue and corresponding interest expense or income, as appropriate. Per-unit Royalty revenue Under the Company's previous accounting practices under ASC 605, it recognized revenue from per-unit royalty agreements in the period in which the related royalty report was received from its licensees, generally one quarter in arrears from the period in which the underlying sales occurred (i.e. on a "quarter-lag"). ASC 606 requires an entity to record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. As the Company generally does not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows the Company to adequately review the reports and include the actual amounts in its quarterly results for such quarter, the Company accrues the related revenue based on estimates of its licensees’ underlying sales, subject to certain constraints on its ability to estimate such amounts. The Company’s estimates have been developed based on a combination of available data including, but not limited to, approved customer forecasts, a lookback at historical royalty reporting for each of its customers, and industry information available for the licensed products. As a result of accruing per-unit royalty revenue for the quarter based on such estimates, adjustments will be required in the following quarter to true up revenue to the actual amounts reported by its licensees. After the adoption of ASC 606, the Company has recorded adjustments to decrease revenue by $326,000 and $333,000 during the three months ended June 30 and September 30, 2018, respectively, and recorded an adjustment to increase revenue by $ 189,000 during the three months ended December 31, 2018 . The adjustments represent the difference between per-unit royalty based on actual sales reported by the Company's licensees in a quarter-lag, and the estimate of per-unit royalty that was reported in the same quarter the underlying sales occurred. The Company had no adjustment recorded for the three months ended March 31, 2018. Certain of the Company's per-unit royalty agreements contains a minimum royalty provision which sets forth minimum amounts to be received by the Company during the contract term. Per the Company's previous accounting policy under ASC 605, such minimum royalties were 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 were below the minimum threshold set forth in the contract. Under ASC 606, minimum royalties are considered a fixed transaction price to which the Company will have an unconditional right once all other performance obligations, if any, are satisfied. Therefore, the Company has recognized all minimum royalties as revenue at the inception of the license agreement, or in the period in which all remaining revenue recognition criteria have been met. The Company has established contract assets for the unbilled minimum royalties on a contract basis. Such contract asset balance has been reduced by the actual royalties reported by the licensee during the contract term until fully utilized, after which point any excess per-unit royalties reported will be recognized as revenue. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract have been presented on a net basis. Payments of per-unit royalties typically are due within 30 to 60 days from the end of the calendar quarter in which the underlying sales took place. Development, services, and other revenue With little change from its previous accounting practices related to development, service and other revenue, the Company continued to recognize revenue from this stream when it has satisfied service obligations. Consistent with the Company’s previous accounting practices under ASC 605, the performance obligation related to its development, service and other revenue is satisfied over a period of time, and such revenue has been recognized evenly over the period of performance obligation, which is generally consistent with the contractual term. Adjustments upon Adoption of ASC 606 The following table summarizes adjustments related to the Company's adoption of ASC 606 (in thousands) Balance at December 31, 2017 as Reported under ASC 605 Adjustment for Fixed Fee License Revenue * Elimination of Quarter-Lag Per-Unit Royalties Total Adjustments upon Adoption of ASC 606 Balance at January 1, 2018 (ASC 606) Prepaid expenses and other current assets $ 736 $ 4,996 $ 4,996 $ 5,732 Deferred revenue - current (4,424 ) 1,766 1,766 (2,658 ) Long-term deferred revenue (22,303 ) 11,573 11,573 (10,730 ) Accumulated deficit 171,616 (13,339 ) (4,996 ) (18,335 ) 153,281 * Adjustment for fixed fee license revenue includes both the recognition of Performance Obligation A upon the adoption of ASC 606, which had previously been deferred under ASC 605, and the change in the transaction price allocated to Performance Obligation B and consequently the revenue recognized as of January 1, 2018. Disaggregated Revenue The following table presents the disaggregation of the Company's revenue for the year ended December 31, 2018 under ASC 606. Revenues for the years ended December 31, 2017 and 2016 are presented in accordance with ASC 605. Years Ended December 31, 2018 2017 2016 (in thousands) Fixed fee license revenue $ 83,573 $ 12,575 $ 30,389 Per-Unit royalty revenue 26,984 21,514 25,641 Total royalty and license revenue 110,557 34,089 56,030 Development, services, and other 422 924 1,056 Total revenues $ 110,979 $ 35,013 $ 57,086 As of December 31, 2018 , the Company had contract assets of $9.0 million included within prepaid expenses and other current assets, and $7.2 million included within other non-current assets, net, on the consolidated balance sheet. The balance of these contract assets increased by $11.2 million from January 1, 2018 to December 31, 2018 , primarily related to certain contracts entered into during the year ended December 31, 2018 that included a minimum royalty arrangement. The balance of the contract assets as of December 31, 2018 also included the Company's estimate of per-unit royalty related to the underlying sales that occurred in the fourth quarter, 2018. Impact of Adoption of ASC 606 Presented in the tables below is disclosure of the impact of adoption on the Company's consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2018 , as well as consolidated balance sheet as of December 31, 2018 in accordance with the requirements of ASC 606. The Company believes that this additional information is vital during the transition year to allow readers of its financial statements to compare financial results from the preceding financial years given the use of the modified retrospective method of adoption. The adoption of ASC 606 did not affect the Company's reported total amounts of cash flows from operating, investing and financing activities. Therefore, tables for this separate financial statement have not been provided. Amounts contained in the tables below are in thousands, except number of shares and per share amounts. 2018 2017 2016 As Reported Adjustments ASC 605 As Reported (ASC 605) As Reported (ASC 605) Revenues: Fixed fee license revenue $ 83,573 $ (68,094 ) $ 15,479 $ 12,575 $ 30,389 Per-unit royalty revenue 26,984 (8,482 ) 18,502 21,514 25,641 Total royalty and license revenue 110,557 (76,576 ) 33,981 34,089 56,030 Development, services, and other 422 422 924 1,056 Total revenues 110,979 (76,576 ) 34,403 35,013 57,086 Total costs and operating expenses 57,878 57,878 80,435 72,349 Operating income (loss) 53,101 (76,576 ) (23,475 ) (45,422 ) (15,263 ) Interest and other income 1,634 — 1,634 611 754 Income (loss) before provision for income taxes 54,735 (76,576 ) (21,841 ) (44,811 ) (14,509 ) Provision for income taxes from continuing operations (392 ) — (392 ) (480 ) (25,521 ) Income (loss) from continuing operations 54,343 (76,576 ) (22,233 ) (45,291 ) (40,030 ) Income (loss) from discontinued operations, net of tax — — — — 649 Net income (loss) $ 54,343 $ (76,576 ) $ (22,233 ) $ (45,291 ) $ (39,381 ) Basic net income (loss) per share Continuing operations $ 1.78 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.39 ) Discontinued operations — — — — 0.02 Total $ 1.78 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.37 ) Shares used in calculating basic net income (loss) per share 30,459 30,459 30,459 29,179 28,759 Diluted net income (loss) per share Continuing operations $ 1.73 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.39 ) Discontinued operations — — — — 0.02 Total $ 1.73 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.37 ) Shares used in calculating diluted net income (loss) per share 31,407 30,459 30,459 29,179 28,759 December 31, 2018 December 31, 2017 As Reported Adjustments ASC 605 As Reported (ASC 605) Prepaid expenses and other current assets $ 9,856 $ (8,973 ) $ 883 $ 736 Other assets, net 7,532 (7,231 ) 301 344 Other current liabilities (3,194 ) 220 (2,974 ) (3,896 ) Deferred revenue - current (4,591 ) (10,040 ) (14,631 ) (4,424 ) Long-term deferred revenue (30,203 ) (70,126 ) (100,329 ) (22,303 ) Accumulated deficit $ 98,521 $ 95,329 $ 193,850 $ 171,616 Contracted Revenue Based on contracts signed and payments received as of December 31, 2018 , the Company expects to recognize $34.5 million revenue related to Performance Obligation B under its fixed fee license agreements, which is satisfied over time, including $13.6 million over one to three years and $20.9 million over more than three years. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , the Company did not hold any Level 3 instruments. The Company had no other-than-temporary impairment charges recorded in the years ended December 31, 2018 , 2017 , and 2016 . Financial instruments measured at fair value on a recurring basis as of December 31, 2018 and December 31, 2017 are listed in the tables below (in thousands): December 31, 2018 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) Assets: U.S. Treasury securities $ — $ 13,930 $ — $ 13,930 Money market funds 81,425 — — 81,425 Total assets at fair value $ 81,425 $ 13,930 $ — $ 95,355 The above table excludes $29.6 million of cash held in banks. 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) 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. 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, 2018 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (in thousands) U.S. Treasury securities $ 13,936 $ — $ (6 ) $ 13,930 Total $ 13,936 $ — $ (6 ) $ 13,930 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 The contractual maturities of the Company’s available-for-sale securities on December 31, 2018 and December 31, 2017 were all due within one year. There were no transfers of instruments between Level 1 and 2 during the years ended December 31, 2018 and 2017 . |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
ACCOUNTS AND OTHER RECEIVABLES | ACCOUNTS AND OTHER RECEIVABLES December 31, 2018 2017 (in thousands) Trade accounts receivable $ 645 $ 458 Receivables from vendors and other 406 348 Accounts and other receivables $ 1,051 $ 806 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT December 31, 2018 2017 (in thousands) Computer equipment and purchased software $ 3,167 $ 3,206 Machinery and equipment 821 834 Furniture and fixtures 1,113 1,274 Leasehold improvements 3,897 3,920 Total 8,998 9,234 Less accumulated depreciation (6,655 ) (6,084 ) Property and equipment, net $ 2,343 $ 3,150 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Current [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES December 31, 2018 2017 (in thousands) Accrued legal $ 1,827 $ 2,202 Income taxes payable 204 219 Other current liabilities 1,163 1,475 Total other current liabilities $ 3,194 $ 3,896 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options and Awards 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 time based options, market condition based 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 this program, 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 four years and expire from seven to ten 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 canceled before the expiration of the options. 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, 2018 Common stock shares available for grant 1,791,088 Standard and market condition based stock options outstanding 2,134,504 Restricted stock awards outstanding 54,667 Restricted stock units outstanding 1,090,752 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, 2018 , 724,822 shares had been purchased since the inception of the ESPP in 1999. 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, 2018 are listed below. Shares purchased under the ESPP for the year ended December 31, 2017 were 48,750 . 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, 2018 Shares purchased under ESPP 26,689 Average price of shares purchased under ESPP $ 8.17 Intrinsic value of shares purchased under ESPP $ 106,000 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, 2018 , 2017 , and 2016 : 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, 2016 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 Granted 207,500 $ 12.50 $ 5.82 Exercised (1,452,306 ) $ 6.52 $ 8,222 Forfeited (78,390 ) $ 8.31 Expired (92,372 ) $ 11.93 Outstanding at December 31, 2018 1,862,423 $ 9.44 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 standard stock options outstanding at December 31, 2018 , 2017 , and 2016 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) 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 December 31, 2018 Options outstanding 1,862,423 $ 9.44 2.85 $ 0.8 Options vested and expected to vest using estimated forfeiture rates 1,785,740 $ 9.40 2.74 $ 0.7 Options exercisable 1,396,171 $ 9.22 1.97 $ 0.5 Additional information regarding standard options outstanding as of December 31, 2018 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 $5.53 - $7.79 321,144 4.16 $ 7.21 189,149 $ 7.06 8.09 - 8.45 222,175 4.38 8.29 143,083 8.22 8.64 - 9.00 259,173 2.45 8.83 226,776 8.82 9.53 - 9.53 671,500 0.95 9.53 671,500 9.53 9.68 - 11.84 205,573 5.68 11.66 25,693 10.87 11.94 - 12.20 100,963 1.51 11.94 100,963 11.94 12.26 - 12.26 21,675 3.43 12.26 21,675 12.26 12.38 - 12.38 4,320 3.87 12.38 3,420 12.38 12.48 - 12.48 15,900 3.54 12.48 13,912 12.48 15.25 - 15.25 40,000 6.54 15.25 — — $5.53 - $15.25 1,862,423 2.85 $ 9.44 1,396,171 $ 9.22 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 canceled 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, 2018 , 2017 and 2016 . There were no activities for the year ended December 31, 2018 . 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, 2016 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 Granted — Exercised — Forfeited — Expired — Outstanding at December 31, 2018 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, 2018 , 2017 and 2016 is summarized below: Number Weighted Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) 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 $ — December 31, 2018 Options outstanding 272,081 $ 8.44 0.91 $ 0.1 Options vested and expected to vest using estimated forfeiture rates 272,081 $ 8.44 0.91 $ 0.1 Options exercisable 272,081 $ 8.44 0.91 $ 0.1 Additional information regarding market condition based stock options outstanding as of December 31, 2018 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 0.91 $ 8.09 135,000 $ 8.09 8.65 - 8.65 84,581 0.91 $ 8.65 84,581 $ 8.65 9.00 - 9.00 52,500 0.91 $ 9.00 52,500 $ 9.00 $8.09 - $9.00 272,081 0.91 $ 8.44 272,081 $ 8.44 Summary of Restricted Stock Units RSU activity for the years ended December 31, 2018 , 2017 , and 2016 was as follows: Number of Shares Weighted Average Grant Date Fair Value Fair Value of Released RSU’s (in thousands) Outstanding at January 1, 2016 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 Awarded 957,443 $ 11.74 Released (178,447 ) $ 2,133 Forfeited (197,124 ) Outstanding at December 31, 2018 1,090,752 Information regarding RSU’s at December 31, 2018 , 2017 , and 2016 is summarized below: Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) Fair Value (in millions) 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 December 31, 2018 RSUs outstanding 1,090,752 0.67 $ 9.8 $ 9.8 RSUs vested and expected to vest using estimated forfeiture rates 959,209 0.56 $ 8.6 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, 2018 , 2017 , and 2016 was as follows: Number of Shares Weighted Average Grant Date Fair Value Total Fair Value of Awards Released (in thousands) Outstanding at January 1, 2016 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 Awarded 62,556 $ 13.32 Released (44,538 ) $ 8.65 $ 673 Forfeited (7,889 ) $ 15.44 Outstanding at December 31, 2018 54,667 $ 13.02 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 2018 2017 2016 Expected life (in years) 4.4 4.6 4.5 Interest rate 3.0 % 2.0 % 1.2 % Volatility 55 % 52 % 56 % Dividend yield — % — % — % Market Condition Based Stock Options 2018 (1) 2017 2016 Expected life (in years) N/A 7.0 7.0 Interest rate N/A 2.0 % 1.6 % Volatility N/A 55 % 59 % Dividend yield N/A — % — % (1) No market condition based stock options were granted during the year ended December 31, 2018. Employee Stock Purchase Plan 2018 2017 2016 Expected life (in years) 0.5 0.5 0.5 Interest rate 1.9 % 0.9 % 0.4 % Volatility 58 % 48 % 53 % Dividend yield — % — % — % Total stock-based compensation recognized in the consolidated statements of income is as follows: Year Ended December 31, 2018 2017 2016 Income Statement Classifications (in thousands) Sales and marketing $ 946 $ 1,025 $ 1,280 Research and development 1,948 981 1,297 General and administrative 5,792 4,096 3,534 Total $ 8,686 $ 6,102 $ 6,111 As of December 31, 2018 , there was $6.0 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 2.47 years for standard options, 0.46 years for restricted stock awards and 1.13 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, 2018 | |
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, 2018 Unrealized Gains and Losses on Available-for Sale Securities Foreign Currency Items Total (in thousands) Beginning balance $ (23 ) $ 122 $ 99 Amounts reclassified from accumulated other comprehensive income (loss) 17 17 Ending balance $ (6 ) $ 122 $ 116 Stock Repurchase Program On November 1, 2007, the Company announced its Board authorized the repurchase of up to $50 million of the Company’s common stock. In addition, on October 22, 2014, the Board 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. There were no stock repurchases during the year ended December 31, 2018 . During the year ended December 31, 2017 , the Company repurchased 48,687 shares for $328,000 at an average cost of $6.73 per share, 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. As of December 31, 2018 , 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. No shares were issued in connection with this Right, and the Rights expired on December 26, 2018. |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 12 Months Ended |
Dec. 31, 2018 | |
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 was expected to increase internal efficiencies through the consolidation of certain sites of operation and 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 additional restructuring activities during the year ended December 31, 2018 . The Company recorded $44,000 adjustments to the 2017 restructuring costs during the three months ended March 31, 2018. There were no restructuring costs in 2016. Twelve months ended December 31, 2017 Employee Separation Costs Asset-Related Charges Other Total (in thousands) 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. All accrued amounts related to the 2017 restructuring activities were paid during the first quarter of 2018. The following table presents a reconciliation of the restructuring reserve recorded within other current liabilities on the Company’s consolidated balance sheet as of December 31, 2018 (in thousands): Employee Separation Costs Asset-Related Charges Other Total Balance as of December 31, 2017 $ 1,522 $ — $ 57 $ 1,579 Adjustments (44 ) — (28 ) (72 ) Non-cash activity (10 ) — (29 ) (39 ) Cash payments (1,468 ) — — (1,468 ) Balance as of December 31, 2018 $ — $ — $ — $ — |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
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 it would recognize income from the notes receivable when 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, 2018 and 2017. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provisions from continuing operations consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Income (loss) from continuing operations before provisions for income taxes $ 54,735 $ (44,811 ) $ (14,509 ) Provision for income taxes from continuing operations (392 ) (480 ) (25,521 ) Effective tax rate 0.7 % (1.1 )% (175.9 )% The 2018 and 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 Company reported pre-tax book income or loss from continuing operations of (in thousands): Year Ended December 31, 2018 2017 2016 Domestic $ 49,509 $ (23,994 ) $ (14,656 ) Foreign 5,226 (20,817 ) 147 Total $ 54,735 $ (44,811 ) $ (14,509 ) The provisions for income taxes from continuing operations consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Current: U.S. federal $ — $ — $ (1,649 ) State and local (3 ) (5 ) 859 Foreign (331 ) (448 ) (442 ) Total current $ (334 ) $ (453 ) $ (1,232 ) Deferred: U.S. federal — — (24,261 ) State and local — — — Foreign (58 ) (27 ) (28 ) Total deferred (58 ) (27 ) (24,289 ) Total provision for income taxes $ (392 ) $ (480 ) $ (25,521 ) 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. On July 24 , 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court that had found certain Treasury regulations related to stock-based compensation to be invalid. On August 7, 2018, the U.S. Court of Appeals for the Ninth Circuit withdrew its July 24, 2018 opinion to allow a reconstituted panel to confer on the decision. This reconstituted panel will reconsider the validity of the cost sharing regulations at issue. The regulations at issue require related entities to share the cost of employee stock compensation in order for their cost-sharing arrangements to be classified as “qualified cost-sharing arrangements” and to avoid potential IRS adjustment. 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. On December 22, 2017, the Tax Act was passed into law. Among other changes, the Tax Act reduces the US federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. In addition, the Act introduced the Base Erosion and Anti-Abuse Tax (the “BEAT”), which creates a new tax on certain related party payments. Some provisions of the Tax Act began to impact the Company in 2017, while other provisions impact the Company beginning in 2018. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provided guidance on accounting for the federal tax rate change and other tax effects of the Tax Act. SAB 118 provided 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 connection with the Company's adoption of the Tax Act and in consideration of SAB 118, the following updates have been made to the Company's income tax provision. In the fourth quarter of 2017, 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. The Company completed its analysis of the impacts of the Tax Act in the fourth quarter of 2018 and determined there were no significant adjustments to the provisional tax amounts recorded in the fourth quarter of 2017. For the Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Act, the Company completed its assessment during the fourth quarter of 2018 and, effective January 1, 2018, elected an accounting policy to record GILTI as period costs if and when incurred. Additionally, the Company concluded that it is has not met the threshold requirements of the BEAT. Although the measurement period has closed, further technical guidance related to the Tax Act, including final regulations on a broad range of topics, is expected to be issued. In accordance with Accounting Standards Codification (ASC) 740, the Company will recognize any effects of the guidance in the period that such guidance is issued. 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 (in thousands): December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 4,968 $ 13,394 State income taxes 1 1 Deferred revenue 2,347 5,349 Research and development and other credits 9,590 11,447 Reserves and accruals recognized in different periods 3,734 3,088 Basis difference in investment — 583 Capitalized R&D expenses 3,415 3,623 Depreciation and amortization 472 413 Deferred rent 160 183 Other 6 — Total deferred tax assets 24,693 38,081 Valuation allowance (24,398 ) (37,680 ) Net deferred tax assets 295 401 Foreign credits (29 ) (43 ) Other (17 ) — Net deferred tax liabilities (46 ) (43 ) Net deferred taxes $ 249 $ 358 The Company accounts for deferred taxes under 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, 2018, 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. As of December 31, 2018, the net operating loss carryforwards for federal and state income tax purposes were approximately $0 and $52.9 million , respectively. The state net operating losses begin to expire in 2028 . The Company also has net operating loss carryforwards from Ireland of 2.4 million that can be carried forward indefinitely and do not expire. As of December 31, 2018, the Company had federal and state tax credit carryforwards of approximately $9.5 million and $2.3 million , respectively, available to offset future tax liabilities. The federal credit carryforwards will expire between 2019 and 2038 and the California tax credits will carryforward indefinitely. In addition, as of December 31, 2018, the Company has Canadian research and development credit carryforwards of $1.6 million , which will expire at various dates through 2038. 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, 2018, 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. 21% rate is applied for 2018, the year in which the Tax Act took effect. For prior years presented in the table below, the national U.S. rate of 35%, the rate in effect prior to the Tax Act change, was applied for the reconciliation between the provision for income taxes at the statutory rate and the effective tax rate: 2018 2017 2016 Federal statutory tax rate 21.0 % 35.0 % 35.0 % Sale of IP rights to foreign subsidiary — % — % (13.8 )% Foreign withholding 0.1 % (0.2 )% (1.2 )% Stock compensation expense (1.0 )% (2.0 )% (6.6 )% Foreign rate differential (1.5 )% (17.0 )% (1.2 )% Prior year true-up items — % (0.1 )% (0.3 )% Tax reserves (1.3 )% (0.1 )% 1.8 % Loss on expiration of capital loss carryover 1.1 % — % — % Credits (0.1 )% 0.4 % 1.6 % Other 0.9 % — % (1.6 )% 2017 Tax Act impact 1.1 % (28.7 )% — % Valuation allowance (19.6 )% 11.6 % (193.4 )% State refunds — % — % 3.8 % Effective tax rate 0.7 % (1.1 )% (175.9 )% Undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and accordingly, no provision for applicable income taxes has been provided thereon. Upon distribution of those earnings, the Company would be subject to withholding taxes payable to various foreign countries. As of December 31, 2018, any foreign withholding taxes on the undistributed earnings of the Company’s foreign subsidiaries were immaterial. 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 (in thousands): 2018 2017 2016 Balance at beginning of year $ 4,672 $ 6,232 $ 6,285 Gross increases for tax positions of prior years — — — Gross decreases for federal tax rate change for tax positions of prior years — (1,670 ) (22 ) Gross increases for tax positions of current year 45 110 111 Lapse of statute of limitations (106 ) — (142 ) Balance at end of year $ 4,611 $ 4,672 $ 6,232 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, 2018 , the Company accrued interest or penalties related to uncertain tax positions in the amount of $18,000 . As of December 31, 2018 , 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, 2018 | |
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, 2018 2017 2016 (In thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ 54,343 $ (45,291 ) $ (40,030 ) Income from discontinued operations, net of tax $ — $ — $ 649 Net income (loss) used in computing basic net income (loss) per share $ 54,343 $ (45,291 ) $ (39,381 ) Denominator: Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) 30,459 29,179 28,759 Dilutive potential common shares: Stock options, ESPP, Restricted Stock and RSUs 948 — — Shares used in computation of diluted net income (loss) per share 31,407 29,179 28,759 Basic net income (loss) per share: Continuing Operations $ 1.78 $ (1.55 ) $ (1.39 ) Discontinued Operations $ — $ 0.00 $ 0.02 Total $ 1.78 $ (1.55 ) $ (1.37 ) Diluted net income (loss) per share: Continuing Operations $ 1.73 $ (1.55 ) $ (1.39 ) Discontinued Operations $ — $ 0.00 $ 0.02 Total $ 1.73 $ (1.55 ) $ (1.37 ) 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, 2018 , options to purchase approximately 0.4 million shares of common stock with an exercise price greater than the average fair market value of the Company’s stock of $11.37 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 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, 2018 | |
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 2018 and 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 every year. Year ended December 31, 2018 2017 2016 (in thousands) Company contribution to 401 (k) plan $ 141 $ 259 $ 172 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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 2024. 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 (in thousands): Operating Leases 2019 $ 1,168 2020 1,049 2021 1,031 2022 1,059 2023 450 Thereafter 23 Total $ 4,780 Rent expense was as follows (in thousands): Year ended December 31, 2018 2017 2016 Rent expense $ 1,181 $ 1,307 $ 1,283 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
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. As discussed in Part II, Item 1 (Legal Proceedings), on April 28, 2017, the Company and Immersion Software Ireland Limited (collectively, “Immersion”) received a letter from Samsung Electronics Co. (“Samsung”) requesting that the Company 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 October 18, 2018, the Korea Tax Tribunal held a hearing and on November 19, 2018, the Korea Tax Tribunal issued its ruling in which it decided not to accept the Company's arguments with respect to the Korean tax authorities’ assessment of withholding tax and penalties imposed on Samsung. We filed an appeal with the Korea Administrative Court on February 15, 2019. On September 29, 2017, Samsung filed an arbitration demand with the International Chamber of Commerce against Immersion demanding that the Company reimburse Samsung for the imposed tax and penalties that Samsung paid to the Korean tax authorities. The International Chamber of Commerce has set the deadline for rendering the final award to February 28, 2019. The Company denies liability, and, as discussed in Part II, Item 1 (Legal Proceedings), the arbitration matter is ongoing. The Company believes that there are valid defenses to all of the claims from the Korean tax authorities and that Samsung’s claims are without merit. The Company 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 Administrative Court, the Company could be required to make a payment to Samsung even though it would later be reimbursed should the Company prevail in the appeal. On October 16, 2017, the Company received a letter from LG Electronics Inc. (“LGE”) requesting that the Company 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, the Company filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes. The Company believes that there are valid defenses to the claims raised by the Korean tax authorities and that LGE’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 LGE to be remote. |
SEGMENT REPORTING, GEOGRAPHIC I
SEGMENT REPORTING, GEOGRAPHIC INFORMATION, AND SIGNIFICANT CUSTOMERS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Mobile, Wearables, and Consumer 81 % 48 % 57 % Gaming Devices 5 % 31 % 24 % Automotive 13 % 15 % 7 % Medical 1 % 6 % 12 % 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, 2018 2017 2016 North America 77 % 22 % 32 % Europe 11 % 15 % 8 % Asia 12 % 63 % 60 % Total 100 % 100 % 100 % Geographic revenue as a percentage of total revenues by country was as follows: Years Ended December 31, 2018 2017 2016 United States of America 77 % 22 % 26 % Japan * 39 % 11 % Korea * 18 % 47 % Other countries with less than 10% in a year 23 % 21 % 16 % Total 100 % 100 % 100 % * Represents less than 10% of the Company’s total revenue for the year presented. Long-lived Assets by Country Long-lived assets include net property and equipment, intangibles, and other assets. The following is a summary of geographic long-lived assets as a percentage of total long-lived assets by country: December 31, 2018 2017 United States of America 91 % 83 % Canada 8 % 8 % Rest of World 1 % 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, 2018 2017 2016 Apple Inc. 69 % — % — % Samsung Electronics — % — % 33 % Customer A — % 20 % 13 % Customer B * 18 % 14 % Customer C * 11 % 2 % Total 69 % 49 % 62 % * Represents less than 10% of the Company’s total revenue for the year presented. Customers comprising 10% or greater of the Company’s outstanding accounts and other receivable are summarized as follows: December 31, 2018 2017 2016 Customer D 55 % — % — % Customer E 36 % — % — % Customer F — % 55 % — % Customer G — % 26 % 46 % Customer B — % — % 18 % Customer H — % — % 16 % |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2018 2018 2018 2017 2017 2017 2017 (In thousands, except per share amounts) Revenues (1) $ 10,867 $ 8,552 $ 6,144 $ 85,416 $ 6,896 $ 11,863 $ 7,030 $ 9,224 Gross profit 10,839 8,491 6,050 85,381 6,857 11,802 6,976 9,181 Operating income (loss) (3,546 ) (5,163 ) (8,295 ) 70,105 (12,216 ) (5,443 ) (14,911 ) (12,852 ) Income (loss) before provision for taxes (3,063 ) (4,618 ) (7,920 ) 70,336 (12,109 ) (5,243 ) (14,746 ) (12,713 ) Benefit (provision) for income taxes (79 ) (22 ) 162 (453 ) (185 ) (44 ) (99 ) (152 ) Net income (loss) (3,142 ) (4,640 ) (7,758 ) 69,883 (12,294 ) (5,287 ) (14,845 ) (12,865 ) Basic net income (loss) per share (2) (0.10 ) (0.15 ) (0.25 ) 2.35 (0.42 ) (0.18 ) (0.51 ) (0.44 ) Shares used in calculating basic net income (loss) per share 30,814 30,780 30,527 29,700 29,250 29,245 29,193 29,024 Diluted net income (loss) per share (2) (0.10 ) (0.15 ) (0.25 ) 2.29 (0.42 ) (0.18 ) (0.51 ) (0.44 ) Shares used in calculating diluted net income (loss) per share 30,814 30,780 30,527 30,566 29,250 29,245 29,193 29,024 (1) Revenue increased significantly in the first quarter of 2018 primarily resulted from a change in accounting policy arising from the adoption of ASC 606 effective January 1, 2018. (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. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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, 2018 Allowance for doubtful accounts $ — $ — Year ended December 31, 2017 Allowance for doubtful accounts $ — $ — $ — $ — Year ended December 31, 2016 Allowance for doubtful accounts $ 15 $ 2 $ 17 $ — |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 |
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 the accumulated other comprehensive income within stockholders’ equity. The Company recognizes an impairment charge in the consolidated statement of operations and comprehensive income (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 | Deferred revenue consists of amounts that have been invoiced or paid, but have not been recognized as revenue. The amounts are primarily derived from the Company's fixed license fee agreements under which the Company is obliged to transfer both rights to its patent portfolio that exists when the contract is executed ("Performance Obligation A"), and rights to its patent portfolio as it evolves over the contract term ("Performance Obligation B"). Refer to Note 2 to the consolidated financial statements for detail discussion. Deferred revenue that will be recognizable during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. In May 2014, the FASB issued an Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers (Topic 606)" ("Accounting Standard Codification 606", "ASC 606"), which superseded most prior revenue recognition guidance under ASC Topic 605, "Revenue Recognition" ("ASC 605") including industry-specific guidance. The underlying principle of ASC 606 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that the entity expects to be entitled in exchange for those goods or services. The new standard provides a five-step analysis of transactions to determine when and how revenue is recognized, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption if the modified retrospective transition method is elected. The new standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The Company adopted the new revenue standard effective January 1, 2018 using the modified retrospective transition method where the cumulative effect of the initial application is recognized as an adjustment to the opening balance of the accumulated deficit at January 1, 2018, the date of adoption. Therefore, comparative prior periods have not been adjusted and continue to be presented under ASC 605. Refer to Note 2 to the consolidated financial statements for the Company's revised revenue recognition accounting policy and a summary of the impact of adoption of ASC 606. |
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 (Loss) | Comprehensive income (loss) includes net income (loss) as well as other items of comprehensive income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains (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 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, and revenue recognition. 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 subject to a concentration of revenues given certain key licensees that contributed a significant portion of the Company's total revenue. See Note 16 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 | Adopted In March 2018, the FASB issued ASU 2018-05 "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update)", which updates SEC guidance released in December 2017 when the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Additional information regarding the adoption of this ASU and its material impact on the Company's consolidated financial statements is contained in Note 11 to the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 “Stock Compensation: Scope of Modification Accounting”. 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 adopted the standard effective January 1, 2018. The adoption of this ASU did not have a material impact on its 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 adopted the standard effective January 1, 2018. The adoption of this ASU did not have a material impact on its consolidated financial statements. Not yet adopted In July 2018, the FASB issued ASU 2018-09 "Codification Improvement" ("ASU 2018-09"). This ASU amends a wide variety of Topics in the Codification issued by FASB with technical corrections, clarifications, and other minor improvements, and should eliminate the need for periodic agenda requests for narrow and incremental items. Many of the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018 for public entities. The Company will adopt certain amendments in this ASU that are applicable, but does not expect a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). The amendments in this ASU expand the scope of Topic 718 to include share-based payment transaction for acquiring goods and services from nonemployees and supersede subtopic 505-50. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted but no earlier than adoption of Topic 606. The Company will adopt this ASU as of January 1, 2019 but does not expect a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted. The Company will adopt this ASU as of January 1, 2019 but does not expect a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases: Topic 842” (“ASU 2016-02” "Topic 842"), 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. Under Topic 842, lessees are required to recognize a lease liability and a right-of-use asset for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance of operating. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. Full retrospective application is prohibited. In July 2018, the FASB issued ASU 2018-10 "Codification Improvement to Topic 842, Leases" ("ASU 2018-10"). The FASB issued this separate ASU for the improvements related to ASC 2016-02 to increase stakeholders' awareness of the amendments and to expedite the improvements. In July 2018, the FASB issued ASU 2018-11 "Leases (Topic 842) Target Improvement" ("ASU 2018-11"). This ASU introduces a lessee model that will bring most leases of property, plant and equipment onto the balance sheet. It requires a lessee to recognize a lease obligation (present value of future lease payments) and also a “right of use asset” for all leases, although certain short-term leases are exempted from the standard. The ASU introduces two models for the subsequent measurement of the lease asset and liability, depending on whether the lease qualifies as a “finance lease” or an “operating lease”. This distinction focuses on whether or not effective control of the asset is being transferred from the lessor to the lessee. The effective date and transition requirements for these ASUs will be same as the effective date and transition requirements in Topic 842. The Company will adopt Topic 842 and applicable amendments on January 1, 2019 using a modified retrospective approach. The Company does not anticipate this adoption will have a material impact on its financial statements. The Company expects to establish a lease asset and corresponding lease liability of approximately $4 - $5 million upon adoption of the standard. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (in thousands) Computer equipment and purchased software $ 3,167 $ 3,206 Machinery and equipment 821 834 Furniture and fixtures 1,113 1,274 Leasehold improvements 3,897 3,920 Total 8,998 9,234 Less accumulated depreciation (6,655 ) (6,084 ) Property and equipment, net $ 2,343 $ 3,150 |
Advertising expense | Advertising expense was as follows (in thousands): Year ended December 31, 2018 2017 2016 Advertising expense $ 67 $ 221 $ 102 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of adjustments and impacts related to adoption of ASC 606 | Amounts contained in the tables below are in thousands, except number of shares and per share amounts. 2018 2017 2016 As Reported Adjustments ASC 605 As Reported (ASC 605) As Reported (ASC 605) Revenues: Fixed fee license revenue $ 83,573 $ (68,094 ) $ 15,479 $ 12,575 $ 30,389 Per-unit royalty revenue 26,984 (8,482 ) 18,502 21,514 25,641 Total royalty and license revenue 110,557 (76,576 ) 33,981 34,089 56,030 Development, services, and other 422 422 924 1,056 Total revenues 110,979 (76,576 ) 34,403 35,013 57,086 Total costs and operating expenses 57,878 57,878 80,435 72,349 Operating income (loss) 53,101 (76,576 ) (23,475 ) (45,422 ) (15,263 ) Interest and other income 1,634 — 1,634 611 754 Income (loss) before provision for income taxes 54,735 (76,576 ) (21,841 ) (44,811 ) (14,509 ) Provision for income taxes from continuing operations (392 ) — (392 ) (480 ) (25,521 ) Income (loss) from continuing operations 54,343 (76,576 ) (22,233 ) (45,291 ) (40,030 ) Income (loss) from discontinued operations, net of tax — — — — 649 Net income (loss) $ 54,343 $ (76,576 ) $ (22,233 ) $ (45,291 ) $ (39,381 ) Basic net income (loss) per share Continuing operations $ 1.78 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.39 ) Discontinued operations — — — — 0.02 Total $ 1.78 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.37 ) Shares used in calculating basic net income (loss) per share 30,459 30,459 30,459 29,179 28,759 Diluted net income (loss) per share Continuing operations $ 1.73 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.39 ) Discontinued operations — — — — 0.02 Total $ 1.73 $ (2.51 ) $ (0.73 ) $ (1.55 ) $ (1.37 ) Shares used in calculating diluted net income (loss) per share 31,407 30,459 30,459 29,179 28,759 December 31, 2018 December 31, 2017 As Reported Adjustments ASC 605 As Reported (ASC 605) Prepaid expenses and other current assets $ 9,856 $ (8,973 ) $ 883 $ 736 Other assets, net 7,532 (7,231 ) 301 344 Other current liabilities (3,194 ) 220 (2,974 ) (3,896 ) Deferred revenue - current (4,591 ) (10,040 ) (14,631 ) (4,424 ) Long-term deferred revenue (30,203 ) (70,126 ) (100,329 ) (22,303 ) Accumulated deficit $ 98,521 $ 95,329 $ 193,850 $ 171,616 The following table summarizes adjustments related to the Company's adoption of ASC 606 (in thousands) Balance at December 31, 2017 as Reported under ASC 605 Adjustment for Fixed Fee License Revenue * Elimination of Quarter-Lag Per-Unit Royalties Total Adjustments upon Adoption of ASC 606 Balance at January 1, 2018 (ASC 606) Prepaid expenses and other current assets $ 736 $ 4,996 $ 4,996 $ 5,732 Deferred revenue - current (4,424 ) 1,766 1,766 (2,658 ) Long-term deferred revenue (22,303 ) 11,573 11,573 (10,730 ) Accumulated deficit 171,616 (13,339 ) (4,996 ) (18,335 ) 153,281 * Adjustment for fixed fee license revenue includes both the recognition of Performance Obligation A upon the adoption of ASC 606, which had previously been deferred under ASC 605, and the change in the transaction price allocated to Performance Obligation B and consequently the revenue recognized as of January 1, 2018. |
Disaggregated revenue | The following table presents the disaggregation of the Company's revenue for the year ended December 31, 2018 under ASC 606. Revenues for the years ended December 31, 2017 and 2016 are presented in accordance with ASC 605. Years Ended December 31, 2018 2017 2016 (in thousands) Fixed fee license revenue $ 83,573 $ 12,575 $ 30,389 Per-Unit royalty revenue 26,984 21,514 25,641 Total royalty and license revenue 110,557 34,089 56,030 Development, services, and other 422 924 1,056 Total revenues $ 110,979 $ 35,013 $ 57,086 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 are listed in the tables below (in thousands): December 31, 2018 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) Assets: U.S. Treasury securities $ — $ 13,930 $ — $ 13,930 Money market funds 81,425 — — 81,425 Total assets at fair value $ 81,425 $ 13,930 $ — $ 95,355 The above table excludes $29.6 million of cash held in banks. 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) 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. |
Schedule of Short-term investments | Short-term Investments December 31, 2018 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (in thousands) U.S. Treasury securities $ 13,936 $ — $ (6 ) $ 13,930 Total $ 13,936 $ — $ (6 ) $ 13,930 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 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | December 31, 2018 2017 (in thousands) Trade accounts receivable $ 645 $ 458 Receivables from vendors and other 406 348 Accounts and other receivables $ 1,051 $ 806 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (in thousands) Computer equipment and purchased software $ 3,167 $ 3,206 Machinery and equipment 821 834 Furniture and fixtures 1,113 1,274 Leasehold improvements 3,897 3,920 Total 8,998 9,234 Less accumulated depreciation (6,655 ) (6,084 ) Property and equipment, net $ 2,343 $ 3,150 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current Liabilities | December 31, 2018 2017 (in thousands) Accrued legal $ 1,827 $ 2,202 Income taxes payable 204 219 Other current liabilities 1,163 1,475 Total other current liabilities $ 3,194 $ 3,896 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options and Awards | December 31, 2018 Common stock shares available for grant 1,791,088 Standard and market condition based stock options outstanding 2,134,504 Restricted stock awards outstanding 54,667 Restricted stock units outstanding 1,090,752 |
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, 2018 Shares purchased under ESPP 26,689 Average price of shares purchased under ESPP $ 8.17 Intrinsic value of shares purchased under ESPP $ 106,000 |
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, 2018 , 2017 and 2016 . There were no activities for the year ended December 31, 2018 . 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, 2016 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 Granted — Exercised — Forfeited — Expired — Outstanding at December 31, 2018 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, 2018 , 2017 , and 2016 : 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, 2016 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 Granted 207,500 $ 12.50 $ 5.82 Exercised (1,452,306 ) $ 6.52 $ 8,222 Forfeited (78,390 ) $ 8.31 Expired (92,372 ) $ 11.93 Outstanding at December 31, 2018 1,862,423 $ 9.44 |
Schedule of Information Regarding Standard and Market Condition Based Stock Options Outstanding | Information regarding standard stock options outstanding at December 31, 2018 , 2017 , and 2016 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) 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 December 31, 2018 Options outstanding 1,862,423 $ 9.44 2.85 $ 0.8 Options vested and expected to vest using estimated forfeiture rates 1,785,740 $ 9.40 2.74 $ 0.7 Options exercisable 1,396,171 $ 9.22 1.97 $ 0.5 Information regarding these market condition based stock options outstanding at December 31, 2018 , 2017 and 2016 is summarized below: Number Weighted Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) 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 $ — December 31, 2018 Options outstanding 272,081 $ 8.44 0.91 $ 0.1 Options vested and expected to vest using estimated forfeiture rates 272,081 $ 8.44 0.91 $ 0.1 Options exercisable 272,081 $ 8.44 0.91 $ 0.1 |
Additional Information Regarding Options Outstanding | Additional information regarding market condition based stock options outstanding as of December 31, 2018 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 0.91 $ 8.09 135,000 $ 8.09 8.65 - 8.65 84,581 0.91 $ 8.65 84,581 $ 8.65 9.00 - 9.00 52,500 0.91 $ 9.00 52,500 $ 9.00 $8.09 - $9.00 272,081 0.91 $ 8.44 272,081 $ 8.44 Additional information regarding standard options outstanding as of December 31, 2018 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 $5.53 - $7.79 321,144 4.16 $ 7.21 189,149 $ 7.06 8.09 - 8.45 222,175 4.38 8.29 143,083 8.22 8.64 - 9.00 259,173 2.45 8.83 226,776 8.82 9.53 - 9.53 671,500 0.95 9.53 671,500 9.53 9.68 - 11.84 205,573 5.68 11.66 25,693 10.87 11.94 - 12.20 100,963 1.51 11.94 100,963 11.94 12.26 - 12.26 21,675 3.43 12.26 21,675 12.26 12.38 - 12.38 4,320 3.87 12.38 3,420 12.38 12.48 - 12.48 15,900 3.54 12.48 13,912 12.48 15.25 - 15.25 40,000 6.54 15.25 — — $5.53 - $15.25 1,862,423 2.85 $ 9.44 1,396,171 $ 9.22 |
Schedule of Restricted Stock Units Activity | RSU activity for the years ended December 31, 2018 , 2017 , and 2016 was as follows: Number of Shares Weighted Average Grant Date Fair Value Fair Value of Released RSU’s (in thousands) Outstanding at January 1, 2016 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 Awarded 957,443 $ 11.74 Released (178,447 ) $ 2,133 Forfeited (197,124 ) Outstanding at December 31, 2018 1,090,752 |
Schedule of Information Regarding Restricted Stock Units Outstanding | Information regarding RSU’s at December 31, 2018 , 2017 , and 2016 is summarized below: Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) Fair Value (in millions) 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 December 31, 2018 RSUs outstanding 1,090,752 0.67 $ 9.8 $ 9.8 RSUs vested and expected to vest using estimated forfeiture rates 959,209 0.56 $ 8.6 |
Schedule of Restricted Stock Awards Activity | Restricted stock award activity for the years ended December 31, 2018 , 2017 , and 2016 was as follows: Number of Shares Weighted Average Grant Date Fair Value Total Fair Value of Awards Released (in thousands) Outstanding at January 1, 2016 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 Awarded 62,556 $ 13.32 Released (44,538 ) $ 8.65 $ 673 Forfeited (7,889 ) $ 15.44 Outstanding at December 31, 2018 54,667 $ 13.02 |
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 2018 2017 2016 Expected life (in years) 4.4 4.6 4.5 Interest rate 3.0 % 2.0 % 1.2 % Volatility 55 % 52 % 56 % Dividend yield — % — % — % Market Condition Based Stock Options 2018 (1) 2017 2016 Expected life (in years) N/A 7.0 7.0 Interest rate N/A 2.0 % 1.6 % Volatility N/A 55 % 59 % Dividend yield N/A — % — % (1) No market condition based stock options were granted during the year ended December 31, 2018. Employee Stock Purchase Plan 2018 2017 2016 Expected life (in years) 0.5 0.5 0.5 Interest rate 1.9 % 0.9 % 0.4 % Volatility 58 % 48 % 53 % 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, 2018 2017 2016 Income Statement Classifications (in thousands) Sales and marketing $ 946 $ 1,025 $ 1,280 Research and development 1,948 981 1,297 General and administrative 5,792 4,096 3,534 Total $ 8,686 $ 6,102 $ 6,111 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Unrealized Gains and Losses on Available-for Sale Securities Foreign Currency Items Total (in thousands) Beginning balance $ (23 ) $ 122 $ 99 Amounts reclassified from accumulated other comprehensive income (loss) 17 17 Ending balance $ (6 ) $ 122 $ 116 |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring costs | The following table presents a reconciliation of the restructuring reserve recorded within other current liabilities on the Company’s consolidated balance sheet as of December 31, 2018 (in thousands): Employee Separation Costs Asset-Related Charges Other Total Balance as of December 31, 2017 $ 1,522 $ — $ 57 $ 1,579 Adjustments (44 ) — (28 ) (72 ) Non-cash activity (10 ) — (29 ) (39 ) Cash payments (1,468 ) — — (1,468 ) Balance as of December 31, 2018 $ — $ — $ — $ — 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 additional restructuring activities during the year ended December 31, 2018 . The Company recorded $44,000 adjustments to the 2017 restructuring costs during the three months ended March 31, 2018. There were no restructuring costs in 2016. Twelve months ended December 31, 2017 Employee Separation Costs Asset-Related Charges Other Total (in thousands) Restructuring $ 1,515 $ 22 $ 82 $ 1,620 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax Benefit (provisions) from continuing operations | Income tax provisions from continuing operations consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Income (loss) from continuing operations before provisions for income taxes $ 54,735 $ (44,811 ) $ (14,509 ) Provision for income taxes from continuing operations (392 ) (480 ) (25,521 ) Effective tax rate 0.7 % (1.1 )% (175.9 )% |
Details of pre-tax book income (loss) from continuing operations | The Company reported pre-tax book income or loss from continuing operations of (in thousands): Year Ended December 31, 2018 2017 2016 Domestic $ 49,509 $ (23,994 ) $ (14,656 ) Foreign 5,226 (20,817 ) 147 Total $ 54,735 $ (44,811 ) $ (14,509 ) |
Summary of benefit (provision) for income taxes from continuing operations | The provisions for income taxes from continuing operations consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Current: U.S. federal $ — $ — $ (1,649 ) State and local (3 ) (5 ) 859 Foreign (331 ) (448 ) (442 ) Total current $ (334 ) $ (453 ) $ (1,232 ) Deferred: U.S. federal — — (24,261 ) State and local — — — Foreign (58 ) (27 ) (28 ) Total deferred (58 ) (27 ) (24,289 ) Total provision for income taxes $ (392 ) $ (480 ) $ (25,521 ) |
Details of significant components of net deferred tax assets and liabilities | December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 4,968 $ 13,394 State income taxes 1 1 Deferred revenue 2,347 5,349 Research and development and other credits 9,590 11,447 Reserves and accruals recognized in different periods 3,734 3,088 Basis difference in investment — 583 Capitalized R&D expenses 3,415 3,623 Depreciation and amortization 472 413 Deferred rent 160 183 Other 6 — Total deferred tax assets 24,693 38,081 Valuation allowance (24,398 ) (37,680 ) Net deferred tax assets 295 401 Foreign credits (29 ) (43 ) Other (17 ) — Net deferred tax liabilities (46 ) (43 ) Net deferred taxes $ 249 $ 358 |
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. 21% rate is applied for 2018, the year in which the Tax Act took effect. For prior years presented in the table below, the national U.S. rate of 35%, the rate in effect prior to the Tax Act change, was applied for the reconciliation between the provision for income taxes at the statutory rate and the effective tax rate: 2018 2017 2016 Federal statutory tax rate 21.0 % 35.0 % 35.0 % Sale of IP rights to foreign subsidiary — % — % (13.8 )% Foreign withholding 0.1 % (0.2 )% (1.2 )% Stock compensation expense (1.0 )% (2.0 )% (6.6 )% Foreign rate differential (1.5 )% (17.0 )% (1.2 )% Prior year true-up items — % (0.1 )% (0.3 )% Tax reserves (1.3 )% (0.1 )% 1.8 % Loss on expiration of capital loss carryover 1.1 % — % — % Credits (0.1 )% 0.4 % 1.6 % Other 0.9 % — % (1.6 )% 2017 Tax Act impact 1.1 % (28.7 )% — % Valuation allowance (19.6 )% 11.6 % (193.4 )% State refunds — % — % 3.8 % Effective tax rate 0.7 % (1.1 )% (175.9 )% |
Details of beginning and ending amount of gross unrecognized tax benefits | 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 (in thousands): 2018 2017 2016 Balance at beginning of year $ 4,672 $ 6,232 $ 6,285 Gross increases for tax positions of prior years — — — Gross decreases for federal tax rate change for tax positions of prior years — (1,670 ) (22 ) Gross increases for tax positions of current year 45 110 111 Lapse of statute of limitations (106 ) — (142 ) Balance at end of year $ 4,611 $ 4,672 $ 6,232 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 (In thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ 54,343 $ (45,291 ) $ (40,030 ) Income from discontinued operations, net of tax $ — $ — $ 649 Net income (loss) used in computing basic net income (loss) per share $ 54,343 $ (45,291 ) $ (39,381 ) Denominator: Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) 30,459 29,179 28,759 Dilutive potential common shares: Stock options, ESPP, Restricted Stock and RSUs 948 — — Shares used in computation of diluted net income (loss) per share 31,407 29,179 28,759 Basic net income (loss) per share: Continuing Operations $ 1.78 $ (1.55 ) $ (1.39 ) Discontinued Operations $ — $ 0.00 $ 0.02 Total $ 1.78 $ (1.55 ) $ (1.37 ) Diluted net income (loss) per share: Continuing Operations $ 1.73 $ (1.55 ) $ (1.39 ) Discontinued Operations $ — $ 0.00 $ 0.02 Total $ 1.73 $ (1.55 ) $ (1.37 ) |
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 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, 2018 | |
Postemployment Benefits [Abstract] | |
Details of Company Contribution to Plan | Year ended December 31, 2018 2017 2016 (in thousands) Company contribution to 401 (k) plan $ 141 $ 259 $ 172 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum future lease payments obligations | Minimum future lease payments obligations are as follows (in thousands): Operating Leases 2019 $ 1,168 2020 1,049 2021 1,031 2022 1,059 2023 450 Thereafter 23 Total $ 4,780 |
Rent expense | Rent expense was as follows (in thousands): Year ended December 31, 2018 2017 2016 Rent expense $ 1,181 $ 1,307 $ 1,283 |
SEGMENT REPORTING, GEOGRAPHIC_2
SEGMENT REPORTING, GEOGRAPHIC INFORMATION, AND SIGNIFICANT CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Mobile, Wearables, and Consumer 81 % 48 % 57 % Gaming Devices 5 % 31 % 24 % Automotive 13 % 15 % 7 % Medical 1 % 6 % 12 % 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, 2018 2017 2016 North America 77 % 22 % 32 % Europe 11 % 15 % 8 % Asia 12 % 63 % 60 % Total 100 % 100 % 100 % Geographic revenue as a percentage of total revenues by country was as follows: Years Ended December 31, 2018 2017 2016 United States of America 77 % 22 % 26 % Japan * 39 % 11 % Korea * 18 % 47 % Other countries with less than 10% in a year 23 % 21 % 16 % Total 100 % 100 % 100 % |
Geographic Concentration Risk | Assets, Total | |
Schedules of Concentration of Risk by Risk Factor | Long-lived assets include net property and equipment, intangibles, and other assets. The following is a summary of geographic long-lived assets as a percentage of total long-lived assets by country: December 31, 2018 2017 United States of America 91 % 83 % Canada 8 % 8 % Rest of World 1 % 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, 2018 2017 2016 Apple Inc. 69 % — % — % Samsung Electronics — % — % 33 % Customer A — % 20 % 13 % Customer B * 18 % 14 % Customer C * 11 % 2 % Total 69 % 49 % 62 % |
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, 2018 2017 2016 Customer D 55 % — % — % Customer E 36 % — % — % Customer F — % 55 % — % Customer G — % 26 % 46 % Customer B — % — % 18 % Customer H — % — % 16 % |
QUARTERLY RESULTS OF OPERATIO_2
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Consolidated Statement of Operations Data | 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, 2018 2018 2018 2018 2017 2017 2017 2017 (In thousands, except per share amounts) Revenues (1) $ 10,867 $ 8,552 $ 6,144 $ 85,416 $ 6,896 $ 11,863 $ 7,030 $ 9,224 Gross profit 10,839 8,491 6,050 85,381 6,857 11,802 6,976 9,181 Operating income (loss) (3,546 ) (5,163 ) (8,295 ) 70,105 (12,216 ) (5,443 ) (14,911 ) (12,852 ) Income (loss) before provision for taxes (3,063 ) (4,618 ) (7,920 ) 70,336 (12,109 ) (5,243 ) (14,746 ) (12,713 ) Benefit (provision) for income taxes (79 ) (22 ) 162 (453 ) (185 ) (44 ) (99 ) (152 ) Net income (loss) (3,142 ) (4,640 ) (7,758 ) 69,883 (12,294 ) (5,287 ) (14,845 ) (12,865 ) Basic net income (loss) per share (2) (0.10 ) (0.15 ) (0.25 ) 2.35 (0.42 ) (0.18 ) (0.51 ) (0.44 ) Shares used in calculating basic net income (loss) per share 30,814 30,780 30,527 29,700 29,250 29,245 29,193 29,024 Diluted net income (loss) per share (2) (0.10 ) (0.15 ) (0.25 ) 2.29 (0.42 ) (0.18 ) (0.51 ) (0.44 ) Shares used in calculating diluted net income (loss) per share 30,814 30,780 30,527 30,566 29,250 29,245 29,193 29,024 (1) Revenue increased significantly in the first quarter of 2018 primarily resulted from a change in accounting policy arising from the adoption of ASC 606 effective January 1, 2018. (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 POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Accounting Policies [Abstract] | ||||
Cash equivalents maturity period | 3 months | |||
Short-term investments maturity period | 90 days | |||
Advertising expense | $ 67 | $ 221 | $ 102 | |
Period of maturities, money market and highly liquid debt | 90 days | |||
Minimum | Accounting Standards Update 2016-02 | Scenario, forecast | ||||
Item Effected [Line Items] | ||||
Operating Lease, Liability | $ 4,000 | |||
Operating lease, right-of-use asset | 4,000 | |||
Maximum | Accounting Standards Update 2016-02 | Scenario, forecast | ||||
Item Effected [Line Items] | ||||
Operating Lease, Liability | 5,000 | |||
Operating lease, right-of-use asset | $ 5,000 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
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 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue recognized, true up | $ 189 | $ 333 | $ 326 | $ 0 | ||
Fixed fee license revenue | Minimum | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, performance obligation, term | 30 | |||||
Fixed fee license revenue | Maximum | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, performance obligation, term | 45 | |||||
Per-unit royalty revenue | Minimum | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, performance obligation, term | P30D | |||||
Per-unit royalty revenue | Maximum | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, performance obligation, term | P60D |
REVENUE RECOGNITION - Adjustmen
REVENUE RECOGNITION - Adjustments Upon Adoption of ASC 606 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | $ 9,856 | $ 5,732 | $ 736 |
Deferred revenue - current | (4,591) | (2,658) | (4,424) |
Long-term deferred revenue | (30,203) | (10,730) | (22,303) |
Accumulated deficit | 98,521 | 153,281 | 171,616 |
Calculated under revenue guidance in effect before Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | 883 | 736 | |
Deferred revenue - current | (14,631) | (4,424) | |
Long-term deferred revenue | (100,329) | (22,303) | |
Accumulated deficit | 193,850 | $ 171,616 | |
Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | (8,973) | 4,996 | |
Deferred revenue - current | (10,040) | 1,766 | |
Long-term deferred revenue | (70,126) | 11,573 | |
Accumulated deficit | $ 95,329 | (18,335) | |
Adjustment for Fixed Fee License Revenue | Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue - current | 1,766 | ||
Long-term deferred revenue | 11,573 | ||
Accumulated deficit | (13,339) | ||
Elimination of Quarter-Lag Per-Unit Royalties | Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Prepaid expenses and other current assets | 4,996 | ||
Accumulated deficit | $ (4,996) |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 110,979 | $ 35,013 | $ 57,086 |
Contract with customer, asset, current | 9,000 | ||
Contract with customer, asset, noncurrent | 7,200 | ||
Increase (decrease) in contract with customer, asset | 11,200 | ||
Royalty and license | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 110,557 | 34,089 | 56,030 |
Fixed fee license revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 83,573 | 12,575 | 30,389 |
Per-unit royalty revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,984 | 21,514 | 25,641 |
Development, services, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 422 | $ 924 | $ 1,056 |
REVENUE RECOGNITION - Impact of
REVENUE RECOGNITION - Impact of Adoption of ASC 606 (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Revenues: | ||||||||||||
Revenue | $ 110,979 | $ 35,013 | $ 57,086 | |||||||||
Total costs and operating expenses | 57,878 | |||||||||||
Operating income (loss) | $ (3,546) | $ (5,163) | $ (8,295) | $ 70,105 | $ (12,216) | $ (5,443) | $ (14,911) | $ (12,852) | 53,101 | (45,422) | (15,263) | |
Interest and other income | 1,634 | |||||||||||
Income (loss) from continuing operations before provision for income taxes | (3,063) | (4,618) | (7,920) | 70,336 | (12,109) | (5,243) | (14,746) | (12,713) | 54,735 | (44,811) | (14,509) | |
Provision for income taxes from continuing operations | (79) | (22) | 162 | (453) | (185) | (44) | (99) | (152) | (392) | (480) | (25,521) | |
Income (loss) from continuing operations | 54,343 | (45,291) | (40,030) | |||||||||
Income from discontinued operations, net of tax | 0 | 0 | 649 | |||||||||
Net income (loss) | $ (3,142) | $ (4,640) | $ (7,758) | $ 69,883 | $ (12,294) | $ (5,287) | $ (14,845) | $ (12,865) | $ 54,343 | $ (45,291) | $ (39,381) | |
Basic net income (loss) per share: | ||||||||||||
Continuing operations (in dollars per share) | $ 1.78 | $ (1.55) | $ (1.39) | |||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | |||||||||
Total (in dollars per share) | $ (0.10) | $ (0.15) | $ (0.25) | $ 2.35 | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ 1.78 | $ (1.55) | $ (1.37) | |
Shares used in calculating basic net income (loss) per share (in shares) | 30,814 | 30,780 | 30,527 | 29,700 | 29,250 | 29,245 | 29,193 | 29,024 | 30,459 | 29,179 | 28,759 | |
Diluted net income (loss) per share: | ||||||||||||
Continuing operations (in dollars per share) | $ 1.73 | $ (1.55) | $ (1.39) | |||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | |||||||||
Total (in dollars per shares) | $ (0.10) | $ (0.15) | $ (0.25) | $ 2.29 | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ 1.73 | $ (1.55) | $ (1.37) | |
Shares used in calculating diluted net income (loss) per share (in shares) | 30,814 | 30,780 | 30,527 | 30,566 | 29,250 | 29,245 | 29,193 | 29,024 | 31,407 | 29,179 | 28,759 | |
Balance Sheets | ||||||||||||
Prepaid expenses and other current assets | $ 9,856 | $ 736 | $ 9,856 | $ 736 | $ 5,732 | |||||||
Other assets, net | 7,532 | 344 | 7,532 | 344 | ||||||||
Other current liabilities | (3,194) | (3,896) | (3,194) | (3,896) | ||||||||
Deferred revenue - current | (4,591) | (4,424) | (4,591) | (4,424) | (2,658) | |||||||
Long-term deferred revenue | (30,203) | (22,303) | (30,203) | (22,303) | (10,730) | |||||||
Accumulated deficit | 98,521 | 171,616 | 98,521 | 171,616 | 153,281 | |||||||
Royalty and license | ||||||||||||
Revenues: | ||||||||||||
Revenue | 110,557 | 34,089 | $ 56,030 | |||||||||
Fixed fee license revenue | ||||||||||||
Revenues: | ||||||||||||
Revenue | 83,573 | 12,575 | 30,389 | |||||||||
Per-unit royalty revenue | ||||||||||||
Revenues: | ||||||||||||
Revenue | 26,984 | 21,514 | 25,641 | |||||||||
Development, services, and other | ||||||||||||
Revenues: | ||||||||||||
Revenue | 422 | 924 | 1,056 | |||||||||
Calculated under revenue guidance in effect before Topic 606 | ||||||||||||
Revenues: | ||||||||||||
Revenue | 34,403 | 35,013 | 57,086 | |||||||||
Total costs and operating expenses | 57,878 | 80,435 | 72,349 | |||||||||
Operating income (loss) | (23,475) | (45,422) | (15,263) | |||||||||
Interest and other income | 1,634 | 611 | 754 | |||||||||
Income (loss) from continuing operations before provision for income taxes | (21,841) | (44,811) | (14,509) | |||||||||
Provision for income taxes from continuing operations | (392) | (480) | (25,521) | |||||||||
Income (loss) from continuing operations | (22,233) | (45,291) | (40,030) | |||||||||
Income from discontinued operations, net of tax | 0 | 0 | 649 | |||||||||
Net income (loss) | $ (22,233) | $ (45,291) | $ (39,381) | |||||||||
Basic net income (loss) per share: | ||||||||||||
Continuing operations (in dollars per share) | $ (0.73) | $ (1.55) | $ (1.39) | |||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | |||||||||
Total (in dollars per share) | $ (0.73) | $ (1.55) | $ (1.37) | |||||||||
Shares used in calculating basic net income (loss) per share (in shares) | 30,459 | 29,179 | 28,759 | |||||||||
Diluted net income (loss) per share: | ||||||||||||
Continuing operations (in dollars per share) | $ (0.73) | $ (1.55) | $ (1.39) | |||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | |||||||||
Total (in dollars per shares) | $ (0.73) | $ (1.55) | $ (1.37) | |||||||||
Shares used in calculating diluted net income (loss) per share (in shares) | 30,459 | 29,179 | 28,759 | |||||||||
Balance Sheets | ||||||||||||
Prepaid expenses and other current assets | 883 | 736 | $ 883 | $ 736 | ||||||||
Other assets, net | 301 | 344 | 301 | 344 | ||||||||
Other current liabilities | (2,974) | (3,896) | (2,974) | (3,896) | ||||||||
Deferred revenue - current | (14,631) | (4,424) | (14,631) | (4,424) | ||||||||
Long-term deferred revenue | (100,329) | (22,303) | (100,329) | (22,303) | ||||||||
Accumulated deficit | 193,850 | $ 171,616 | 193,850 | 171,616 | ||||||||
Calculated under revenue guidance in effect before Topic 606 | Royalty and license | ||||||||||||
Revenues: | ||||||||||||
Revenue | 33,981 | 34,089 | $ 56,030 | |||||||||
Calculated under revenue guidance in effect before Topic 606 | Fixed fee license revenue | ||||||||||||
Revenues: | ||||||||||||
Revenue | 15,479 | 12,575 | 30,389 | |||||||||
Calculated under revenue guidance in effect before Topic 606 | Per-unit royalty revenue | ||||||||||||
Revenues: | ||||||||||||
Revenue | 18,502 | 21,514 | 25,641 | |||||||||
Calculated under revenue guidance in effect before Topic 606 | Development, services, and other | ||||||||||||
Revenues: | ||||||||||||
Revenue | 422 | $ 924 | $ 1,056 | |||||||||
Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606 | ||||||||||||
Revenues: | ||||||||||||
Revenue | (76,576) | |||||||||||
Operating income (loss) | (76,576) | |||||||||||
Interest and other income | 0 | |||||||||||
Income (loss) from continuing operations before provision for income taxes | (76,576) | |||||||||||
Provision for income taxes from continuing operations | 0 | |||||||||||
Income (loss) from continuing operations | (76,576) | |||||||||||
Income from discontinued operations, net of tax | 0 | |||||||||||
Net income (loss) | $ (76,576) | |||||||||||
Basic net income (loss) per share: | ||||||||||||
Continuing operations (in dollars per share) | $ (2.51) | |||||||||||
Discontinued operations (in dollars per share) | 0 | |||||||||||
Total (in dollars per share) | $ (2.51) | |||||||||||
Shares used in calculating basic net income (loss) per share (in shares) | 30,459 | |||||||||||
Diluted net income (loss) per share: | ||||||||||||
Continuing operations (in dollars per share) | $ (2.51) | |||||||||||
Discontinued operations (in dollars per share) | 0 | |||||||||||
Total (in dollars per shares) | $ (2.51) | |||||||||||
Shares used in calculating diluted net income (loss) per share (in shares) | 30,459 | |||||||||||
Balance Sheets | ||||||||||||
Prepaid expenses and other current assets | (8,973) | $ (8,973) | 4,996 | |||||||||
Other assets, net | (7,231) | (7,231) | ||||||||||
Other current liabilities | 220 | 220 | ||||||||||
Deferred revenue - current | (10,040) | (10,040) | 1,766 | |||||||||
Long-term deferred revenue | (70,126) | (70,126) | 11,573 | |||||||||
Accumulated deficit | $ 95,329 | 95,329 | (18,335) | |||||||||
Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606 | Royalty and license | ||||||||||||
Revenues: | ||||||||||||
Revenue | (76,576) | |||||||||||
Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606 | Fixed fee license revenue | ||||||||||||
Revenues: | ||||||||||||
Revenue | (68,094) | |||||||||||
Balance Sheets | ||||||||||||
Deferred revenue - current | 1,766 | |||||||||||
Long-term deferred revenue | 11,573 | |||||||||||
Accumulated deficit | (13,339) | |||||||||||
Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606 | Per-unit royalty revenue | ||||||||||||
Revenues: | ||||||||||||
Revenue | $ (8,482) | |||||||||||
Balance Sheets | ||||||||||||
Prepaid expenses and other current assets | 4,996 | |||||||||||
Accumulated deficit | $ (4,996) |
REVENUE RECOGNITION - Contracte
REVENUE RECOGNITION - Contracted Revenue (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 34.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-31 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 13.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 20.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 13,930 | $ 21,916 |
Cash held in banks | 29,600 | 23,500 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 13,930 | 21,916 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 95,355 | 23,033 |
Fair value, measurements, recurring | 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 | 81,425 | 1,117 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 13,930 | 21,916 |
Fair value, measurements, recurring | 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 |
Fair value, measurements, recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 81,425 | 1,117 |
Fair value, measurements, recurring | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 81,425 | 1,117 |
Fair value, measurements, recurring | Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Fair value, measurements, recurring | Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Fair value, measurements, recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 13,930 | 21,916 |
Fair value, measurements, recurring | U.S. Treasury securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value, measurements, recurring | U.S. Treasury securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 13,930 | 21,916 |
Fair value, measurements, recurring | U.S. Treasury securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Sche_2
FAIR VALUE DISCLOSURES - Schedule of Short-Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 13,936 | $ 21,939 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 6 | 23 |
Fair Value | $ 13,930 | $ 21,916 |
Debt securities, available-for-sale, term | 1 year | 1 year |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 13,936 | $ 21,939 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 6 | 23 |
Fair Value | $ 13,930 | $ 21,916 |
ACCOUNTS AND OTHER RECEIVABLE_2
ACCOUNTS AND OTHER RECEIVABLES - Schedule of Accounts and Other Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 645 | $ 458 |
Receivables from vendors and other | 406 | 348 |
Accounts and other receivables | $ 1,051 | $ 806 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 8,998 | $ 9,234 |
Less accumulated depreciation | (6,655) | (6,084) |
Property and equipment, net | 2,343 | 3,150 |
Computer equipment and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 3,167 | 3,206 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 821 | 834 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,113 | 1,274 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 3,897 | $ 3,920 |
OTHER CURRENT LIABILITIES - Sch
OTHER CURRENT LIABILITIES - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities, Current [Abstract] | ||
Accrued legal | $ 1,827 | $ 2,202 |
Income taxes payable | 204 | 219 |
Other current liabilities | 1,163 | 1,475 |
Total other current liabilities | $ 3,194 | $ 3,896 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) | Jun. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
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) | 724,822 | ||
Shares purchased under ESPP (in shares) | 26,689 | 48,750 | |
Expected dividend yield in option-pricing model | 0.00% | ||
Unrecognized compensation cost | $ 6,000,000 | ||
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) | 7 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) | 5 months 15 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) | 1 year 1 month 17 days | ||
Standard stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period (years) | 2 years 5 months 19 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares available for grant | 1,791,088 | |||
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 | 2,134,504 | |||
Restricted stock awards outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards and units outstanding | 54,667 | 44,538 | 77,540 | 21,356 |
RSUs outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards and units outstanding | 1,090,752 | 508,880 | 427,192 | 487,423 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Employee Stock Purchase Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Shares purchased under ESPP (in shares) | 26,689 | 48,750 |
Average price of shares purchased under ESPP (in dollars per share) | $ 8.17 | |
Intrinsic value of shares purchased under ESPP | $ 106 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of Standard and Market-based Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Standard stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning outstanding balance (in shares) | 3,277,991 | 3,421,121 | 3,596,533 |
Granted (in shares) | 207,500 | 489,568 | 815,794 |
Exercised (in shares) | (1,452,306) | (70,608) | (395,515) |
Forfeited (in shares) | (78,390) | (361,687) | (344,541) |
Expired (in shares) | (92,372) | (200,403) | (251,150) |
Ending outstanding balance (in shares) | 1,862,423 | 3,277,991 | 3,421,121 |
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) | $ 7.99 | $ 8.44 | $ 8.45 |
Weighted average exercise price, granted (in dollars per share) | 12.50 | 8.48 | 7.85 |
Weighted average exercise price, exercised (in dollars per share) | 6.52 | 7.34 | 6.48 |
Weighted average exercise price, forfeited (in dollars per share) | 8.31 | 9.11 | 9.05 |
Weighted average exercise price, expired (in dollars per share) | 11.93 | 15.04 | 8.87 |
Weighted average exercise price, ending balance (in dollars per share) | 9.44 | 7.99 | 8.44 |
Weighted average fair value of options granted (in dollars per share) | $ 5.82 | $ 3.82 | $ 3.67 |
Aggregate intrinsic value of options exercised | $ 8,222 | $ 151 | $ 918 |
Market condition based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning outstanding balance (in shares) | 272,081 | 225,000 | 200,000 |
Granted (in shares) | 0 | 120,830 | 75,000 |
Exercised (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | (73,749) | (50,000) |
Expired (in shares) | 0 | 0 | 0 |
Ending outstanding balance (in shares) | 272,081 | 272,081 | 225,000 |
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) | $ 8.44 | $ 8.39 | $ 9.05 |
Weighted average exercise price, granted (in dollars per share) | 8.65 | 9 | |
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 | 8.44 | 8.39 |
Weighted average fair value of options granted (in dollars per share) | $ 3.12 | $ 3.68 | |
Aggregate intrinsic value of options exercised |
STOCK-BASED COMPENSATION - Sc_4
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Standard stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 1,862,423 | 3,277,991 | 3,421,121 | 3,596,533 |
Options vested and expected to vest using estimated forfeiture rates (in shares) | 1,785,740 | 3,175,002 | 3,223,919 | |
Options exercisable (in shares) | 1,396,171 | 2,633,990 | 2,131,268 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.44 | $ 7.99 | $ 8.44 | $ 8.45 |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Exercise Price (in dollars per share) | 9.40 | 7.99 | 8.43 | |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.22 | $ 7.94 | $ 8.22 | |
Options outstanding, Weighted Average Remaining Contractual Life (years) | 2 years 10 months 6 days | 2 years 10 months 17 days | 3 years 11 months 26 days | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | 2 years 8 months 26 days | 2 years 9 months 10 days | 3 years 10 months 13 days | |
Options exercisable, Weighted Average Remaining Contractual Life (years) | 1 year 11 months 19 days | 2 years 1 month 20 days | 3 years 1 month 6 days | |
Options outstanding, Aggregate Intrinsic Value | $ 0.8 | $ 2.2 | $ 9 | |
Options vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value | 0.7 | 2.2 | 8.5 | |
Options exercisable, Aggregate Intrinsic Value | $ 0.5 | $ 2.1 | $ 6.4 | |
Market condition based stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 272,081 | 272,081 | 225,000 | 200,000 |
Options vested and expected to vest using estimated forfeiture rates (in shares) | 272,081 | 272,081 | 209,141 | |
Options exercisable (in shares) | 272,081 | 272,081 | 65,625 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.44 | $ 8.44 | $ 8.39 | $ 9.05 |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Exercise Price (in dollars per share) | 8.44 | 8.44 | 8.38 | |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.44 | $ 8.44 | $ 8.09 | |
Options outstanding, Weighted Average Remaining Contractual Life (years) | 10 months 27 days | 1 year 10 months 27 days | 5 years 6 months | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | 10 months 27 days | 1 year 10 months 27 days | 5 years 5 months 26 days | |
Options exercisable, Weighted Average Remaining Contractual Life (years) | 10 months 27 days | 1 year 10 months 27 days | 5 years 2 months 1 day | |
Options outstanding, Aggregate Intrinsic Value | $ 0.1 | $ 0 | $ 0.5 | |
Options vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value | 0.1 | 0 | 0.5 | |
Options exercisable, Aggregate Intrinsic Value | $ 0.1 | $ 0 | $ 0.2 |
STOCK-BASED COMPENSATION - Ad_2
STOCK-BASED COMPENSATION - Additional Information Regarding Options Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Standard stock options | $5.53 - $7.79 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $ 5.53 |
Exercise price range, upper range limit | $ 7.79 |
Number Outstanding (in shares) | shares | 321,144 |
Weighted Average Remaining Contractual Life (Years) | 4 years 1 month 27 days |
Weighted Average Exercise Price (in dollars per share) | $ 7.21 |
Number Exercisable (in shares) | shares | 189,149 |
Weighted Average Exercise Price (in dollars per share) | $ 7.06 |
Standard stock options | 8.09 - 8.45 | |
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 | $ 8.45 |
Number Outstanding (in shares) | shares | 222,175 |
Weighted Average Remaining Contractual Life (Years) | 4 years 4 months 17 days |
Weighted Average Exercise Price (in dollars per share) | $ 8.29 |
Number Exercisable (in shares) | shares | 143,083 |
Weighted Average Exercise Price (in dollars per share) | $ 8.22 |
Standard stock options | 8.64 - 9.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 8.64 |
Exercise price range, upper range limit | $ 9 |
Number Outstanding (in shares) | shares | 259,173 |
Weighted Average Remaining Contractual Life (Years) | 2 years 5 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ 8.83 |
Number Exercisable (in shares) | shares | 226,776 |
Weighted Average Exercise Price (in dollars per share) | $ 8.82 |
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 | 671,500 |
Weighted Average Remaining Contractual Life (Years) | 11 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ 9.53 |
Number Exercisable (in shares) | shares | 671,500 |
Weighted Average Exercise Price (in dollars per share) | $ 9.53 |
Standard stock options | 9.68 - 11.84 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 9.68 |
Exercise price range, upper range limit | $ 11.84 |
Number Outstanding (in shares) | shares | 205,573 |
Weighted Average Remaining Contractual Life (Years) | 5 years 8 months 4 days |
Weighted Average Exercise Price (in dollars per share) | $ 11.66 |
Number Exercisable (in shares) | shares | 25,693 |
Weighted Average Exercise Price (in dollars per share) | $ 10.87 |
Standard stock options | 11.94 - 12.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 11.94 |
Exercise price range, upper range limit | $ 12.20 |
Number Outstanding (in shares) | shares | 100,963 |
Weighted Average Remaining Contractual Life (Years) | 1 year 6 months 3 days |
Weighted Average Exercise Price (in dollars per share) | $ 11.94 |
Number Exercisable (in shares) | shares | 100,963 |
Weighted Average Exercise Price (in dollars per share) | $ 11.94 |
Standard stock options | 12.26 - 12.26 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 12.26 |
Exercise price range, upper range limit | $ 12.26 |
Number Outstanding (in shares) | shares | 21,675 |
Weighted Average Remaining Contractual Life (Years) | 3 years 5 months 4 days |
Weighted Average Exercise Price (in dollars per share) | $ 12.26 |
Number Exercisable (in shares) | shares | 21,675 |
Weighted Average Exercise Price (in dollars per share) | $ 12.26 |
Standard stock options | 12.38 - 12.38 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 12.38 |
Exercise price range, upper range limit | $ 12.38 |
Number Outstanding (in shares) | shares | 4,320 |
Weighted Average Remaining Contractual Life (Years) | 3 years 10 months 13 days |
Weighted Average Exercise Price (in dollars per share) | $ 12.38 |
Number Exercisable (in shares) | shares | 3,420 |
Weighted Average Exercise Price (in dollars per share) | $ 12.38 |
Standard stock options | 12.48 - 12.48 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 12.48 |
Exercise price range, upper range limit | $ 12.48 |
Number Outstanding (in shares) | shares | 15,900 |
Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 14 days |
Weighted Average Exercise Price (in dollars per share) | $ 12.48 |
Number Exercisable (in shares) | shares | 13,912 |
Weighted Average Exercise Price (in dollars per share) | $ 12.48 |
Standard stock options | 15.25 - 15.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 15.25 |
Exercise price range, upper range limit | $ 15.25 |
Number Outstanding (in shares) | shares | 40,000 |
Weighted Average Remaining Contractual Life (Years) | 6 years 6 months 14 days |
Weighted Average Exercise Price (in dollars per share) | $ 15.25 |
Number Exercisable (in shares) | shares | 0 |
Weighted Average Exercise Price (in dollars per share) | $ 0 |
Standard stock options | $5.53 - $15.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | 5.53 |
Exercise price range, upper range limit | $ 15.25 |
Number Outstanding (in shares) | shares | 1,862,423 |
Weighted Average Remaining Contractual Life (Years) | 2 years 10 months 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 9.44 |
Number Exercisable (in shares) | shares | 1,396,171 |
Weighted Average Exercise Price (in dollars per share) | $ 9.22 |
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) | 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) | 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) | 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) | 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 - Sc_5
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Units Activity (Detail) - RSUs outstanding - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 508,880 | 427,192 | 487,423 |
Awarded (in shares) | 957,443 | 483,015 | 320,880 |
Released (in shares) | (178,447) | (198,058) | (247,556) |
Forfeited (in shares) | (197,124) | (203,269) | (133,555) |
Ending outstanding balance (in shares) | 1,090,752 | 508,880 | 427,192 |
Weighted average grant date fair value, awarded (in dollars per share) | $ 11.74 | $ 8.46 | $ 8.67 |
Released, fair value of released RSU's | $ 2,133 | $ 1,991 | $ 2,118 |
STOCK-BASED COMPENSATION - Sc_6
STOCK-BASED COMPENSATION - Schedule of Information Regarding Restricted Stock Units Outstanding (Detail) - RSUs outstanding - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs outstanding, number of Shares | 1,090,752 | 508,880 | 427,192 | 487,423 |
RSUs vested and expected to vest using estimated forfeiture rates, number of shares | 959,209 | 414,847 | 349,759 | |
RSUs outstanding, weighted average remaining contractual life (years) | 8 months 1 day | 1 year 3 months 18 days | 11 months 4 days | |
RSUs vested and expected to vest using estimated forfeiture rates, weighted average remaining contractual life (years) | 6 months 21 days | 1 year 1 month 27 days | 9 months 18 days | |
RSUs outstanding, aggregate intrinsic value | $ 9.8 | $ 3.6 | $ 4.5 | |
RSUs vested and expected to vest using estimated forfeiture rates, aggregate intrinsic value | 8.6 | 2.9 | 3.7 | |
RSUs outstanding, fair value | $ 9.8 | $ 3.6 | $ 4.5 |
STOCK-BASED COMPENSATION - Sc_7
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 44,538 | 77,540 | 21,356 |
Awarded (in shares) | 62,556 | 44,538 | 77,540 |
Released (in shares) | (44,538) | (77,540) | (21,356) |
Forfeited (in shares) | (7,889) | 0 | 0 |
Ending outstanding balance (in shares) | 54,667 | 44,538 | 77,540 |
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) | $ 8.65 | $ 6.52 | $ 12.26 |
Weighted average grant date fair value, awarded (in dollars per share) | 13.32 | 8.65 | 6.52 |
Weighted average grant date fair value, released (in dollars per share) | 8.65 | 6.52 | 12.26 |
Weighted average grant date fair value, forfeited (in dollars per share) | 15.44 | ||
Weighted average grant date fair value, ending balance (in dollars per share) | $ 13.02 | $ 8.65 | $ 6.52 |
Total fair value of awards released | $ 673 | $ 671 | $ 139 |
STOCK-BASED COMPENSATION - Sc_8
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 1.90% | 0.90% | 0.40% |
Volatility | 58.00% | 48.00% | 53.00% |
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 4 months 24 days | 4 years 7 months 6 days | 4 years 6 months |
Interest rate | 3.00% | 2.00% | 1.20% |
Volatility | 55.00% | 52.00% | 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 | |
Interest rate | 2.00% | 1.60% | |
Volatility | 55.00% | 59.00% | |
Dividend yield | 0.00% | 0.00% |
STOCK-BASED COMPENSATION - Sc_9
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 8,686 | $ 6,102 | $ 6,111 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 946 | 1,025 | 1,280 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,948 | 981 | 1,297 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 5,792 | $ 4,096 | $ 3,534 |
STOCKHOLDERS' EQUITY - Changes
STOCKHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 99 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Amounts reclassified from accumulated other comprehensive income (loss) | 17 |
Ending balance | 116 |
Unrealized Gains and Losses on Available-for Sale Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (23) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Amounts reclassified from accumulated other comprehensive income (loss) | 17 |
Ending balance | (6) |
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] | |
Amounts reclassified from accumulated other comprehensive income (loss) | |
Ending balance | $ 122 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 26, 2018 | 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 (in shares) | 0 | 48,687 | 105,750 | ||||
Repurchased shares, value | $ 328,000 | $ 729,000 | |||||
Stock repurchase program, average cost | $ 6.73 | $ 6.90 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 33,400,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Class of Stock [Line Items] | |||||||
Right, outstanding (in shares) | 0 | ||||||
Series B Junior Participating Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Right, number of shares (in shares) | 0.001 | ||||||
Right, exercise price (in dollars per share) | $ 30 |
RESTRUCTURING COSTS (Details)
RESTRUCTURING COSTS (Details) - 2017 Strategic Restructuring Plan - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Balance as of December 31, 2017 | $ 1,579,000 | $ 1,579,000 | |
Adjustments | (72,000) | ||
Non-cash activity | (39,000) | ||
Cash payments | (1,468,000) | ||
Balance as of December 31, 2018 | 0 | ||
Employee Separation Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of December 31, 2017 | 1,522,000 | 1,522,000 | |
Adjustments | 44,000 | (44,000) | $ 0 |
Non-cash activity | (10,000) | ||
Cash payments | (1,468,000) | ||
Balance as of December 31, 2018 | 0 | ||
Asset-Related Charges | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of December 31, 2017 | 0 | 0 | |
Adjustments | 0 | ||
Non-cash activity | 0 | ||
Cash payments | 0 | ||
Balance as of December 31, 2018 | 0 | ||
Other | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of December 31, 2017 | $ 57,000 | 57,000 | |
Adjustments | (28,000) | ||
Non-cash activity | (29,000) | ||
Cash payments | 0 | ||
Balance as of December 31, 2018 | $ 0 |
RESTRUCTURING COSTS - Additiona
RESTRUCTURING COSTS - Additional Information (Details) - 2017 Strategic Restructuring Plan | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)position | Dec. 31, 2016USD ($) | |
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 | |||
Adjustments | $ (72,000) | |||
Employee Separation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,515,000 | |||
Adjustments | $ 44,000 | (44,000) | $ 0 | |
Asset-Related Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 22,000 | |||
Adjustments | 0 | |||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 82,000 | |||
Adjustments | $ (28,000) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2009 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
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 | $ 0 | $ 1,000 | |
Income from discontinued operations, net of tax | $ 0 | $ 0 | 649 | |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (loss) from continuing operations before provisions for income taxes | $ (3,063) | $ (4,618) | $ (7,920) | $ 70,336 | $ (12,109) | $ (5,243) | $ (14,746) | $ (12,713) | $ 54,735 | $ (44,811) | $ (14,509) |
Provision for income taxes from continuing operations | $ (79) | $ (22) | $ 162 | $ (453) | $ (185) | $ (44) | $ (99) | $ (152) | $ (392) | $ (480) | $ (25,521) |
Effective tax rate | 0.70% | (1.10%) | (175.90%) |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 49,509 | $ (23,994) | $ (14,656) | ||||||||
Foreign | 5,226 | (20,817) | 147 | ||||||||
Income (loss) from continuing operations before provision for income taxes | $ (3,063) | $ (4,618) | $ (7,920) | $ 70,336 | $ (12,109) | $ (5,243) | $ (14,746) | $ (12,713) | $ 54,735 | $ (44,811) | $ (14,509) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||
Tax Cuts And Jobs Act Of 2017, change in tax rate, deferred tax asset, provisional income tax expense (benefit) | $ 12,900,000 | |
Accrued interest or penalties related to uncertain tax positions | $ 18,000 | |
Total amount of unrecognized tax benefits | 97,000 | |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 0 | |
Tax credit carryforwards | $ 9,500,000 | |
Federal credit carryforward expiration, beginning period | 2,019 | |
Federal credit carryforward expiration ending Period | 2,038 | |
State and local | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 52,900,000 | |
Net operating losses expiration beginning period | 2,028 | |
Tax credit carryforwards | $ 2,300,000 | |
Foreign tax authority | Ireland | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 2,400,000 | |
Foreign tax authority | Canada | Research and development | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | $ 1,600,000 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||||||||||
U.S. federal | $ 0 | $ 0 | $ (1,649) | ||||||||
State and local | (3) | (5) | 859 | ||||||||
Foreign | (331) | (448) | (442) | ||||||||
Total current | (334) | (453) | (1,232) | ||||||||
Deferred: | |||||||||||
United States federal | 0 | 0 | (24,261) | ||||||||
State and local | 0 | 0 | 0 | ||||||||
Foreign | (58) | (27) | (28) | ||||||||
Total deferred | (58) | (27) | (24,289) | ||||||||
Income tax, total | $ (79) | $ (22) | $ 162 | $ (453) | $ (185) | $ (44) | $ (99) | $ (152) | $ (392) | $ (480) | $ (25,521) |
INCOME TAXES - Details of Signi
INCOME TAXES - Details of Significant Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 4,968 | $ 13,394 |
State income taxes | 1 | 1 |
Deferred revenue | 2,347 | 5,349 |
Research and development and other credits | 9,590 | 11,447 |
Reserves and accruals recognized in different periods | 3,734 | 3,088 |
Basis difference in investment | 0 | 583 |
Capitalized R&D expenses | 3,415 | 3,623 |
Depreciation and amortization | 472 | 413 |
Deferred rent | 160 | 183 |
Other | 6 | 0 |
Total deferred tax assets | 24,693 | 38,081 |
Valuation allowance | (24,398) | (37,680) |
Net deferred tax assets | 295 | 401 |
Foreign credits | (29) | (43) |
Other | (17) | 0 |
Net deferred tax liabilities | (46) | (43) |
Net deferred taxes | $ 249 | $ 358 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 35.00% | 35.00% |
Sale of IP rights to foreign subsidiary | 0.00% | 0.00% | (13.80%) |
Foreign withholding | 0.10% | (0.20%) | (1.20%) |
Stock compensation expense | (1.00%) | (2.00%) | (6.60%) |
Foreign rate differential | (1.50%) | (17.00%) | (1.20%) |
Prior year true-up items | 0.00% | (0.10%) | (0.30%) |
Tax reserves | (1.30%) | (0.10%) | 1.80% |
Loss on expiration of capital loss carryover | 1.10% | 0.00% | 0.00% |
Credits | (0.10%) | 0.40% | 1.60% |
Other | 0.90% | 0.00% | (1.60%) |
2017 Tax Act impact | 1.10% | (28.70%) | 0.00% |
Valuation allowance | (19.60%) | 11.60% | (193.40%) |
State refunds | 0.00% | 0.00% | 3.80% |
Effective tax rate | 0.70% | (1.10%) | (175.90%) |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 4,672 | $ 6,232 | $ 6,285 |
Gross increases for tax positions of prior years | 0 | 0 | 0 |
Gross decreases for federal tax rate change for tax positions of prior years | 0 | (1,670) | (22) |
Gross increases for tax positions of current year | 45 | 110 | 111 |
Lapse of statute of limitations | (106) | 0 | (142) |
Balance at end of year | $ 4,611 | $ 4,672 | $ 6,232 |
NET INCOME (LOSS) PER SHARE - R
NET INCOME (LOSS) 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Income (loss) from continuing operations | $ 54,343 | $ (45,291) | $ (40,030) | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 649 | ||||||||
Net income (loss) used in computing basic net income (loss) per share | $ (3,142) | $ (4,640) | $ (7,758) | $ 69,883 | $ (12,294) | $ (5,287) | $ (14,845) | $ (12,865) | $ 54,343 | $ (45,291) | $ (39,381) |
Denominator: | |||||||||||
Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) (in shares) | 30,814 | 30,780 | 30,527 | 29,700 | 29,250 | 29,245 | 29,193 | 29,024 | 30,459 | 29,179 | 28,759 |
Dilutive potential common shares: | |||||||||||
Stock options, ESPP, Restricted Stock and RSUs (in shares) | 948 | 0 | 0 | ||||||||
Shares used in computation of diluted net income (loss) per share (in shares) | 30,814 | 30,780 | 30,527 | 30,566 | 29,250 | 29,245 | 29,193 | 29,024 | 31,407 | 29,179 | 28,759 |
Basic net income (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | $ 1.78 | $ (1.55) | $ (1.39) | ||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | ||||||||
Total (in dollars per share) | $ (0.10) | $ (0.15) | $ (0.25) | $ 2.35 | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | 1.78 | (1.55) | (1.37) |
Diluted net income (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | 1.73 | (1.55) | (1.39) | ||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | ||||||||
Total (in dollars per shares) | $ (0.10) | $ (0.15) | $ (0.25) | $ 2.29 | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ 1.73 | $ (1.55) | $ (1.37) |
NET INCOME (LOSS) PER SHARE - A
NET INCOME (LOSS) PER SHARE - Additional Information (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Earnings Per Share [Abstract] | |
Options to purchase shares of common stock | shares | 0.4 |
Average fair market value of stock | $ / shares | $ 11.37 |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Securities Outstanding That Could Potentially Dilute Basic Earnings per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase shares of common stock | 400,000 | ||
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 | ||||||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | |
Retirement Benefits [Abstract] | |||||||||||
Company matched employee's contribution | 50.00% | 50.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Employee's contribution | $ 4,000 | $ 4,000,000 | $ 3,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
EMPLOYEE BENEFIT PLAN - Details
EMPLOYEE BENEFIT PLAN - Details of Company Contribution to Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan [Abstract] | |||
Company contribution to 401 (k) plan | $ 141 | $ 259 | $ 172 |
COMMITMENTS - Additional Inform
COMMITMENTS - Additional Information (Detail) ft² in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2015ft² | Feb. 28, 2015ft² | |
Operating Leased Assets [Line Items] | |||||
Rent expense | $ | $ 1,181 | $ 1,307 | $ 1,283 | ||
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, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating leases, 2019 | $ 1,168 |
Operating leases, 2020 | 1,049 |
Operating leases, 2021 | 1,031 |
Operating leases, 2022 | 1,059 |
Operating leases, 2023 | 450 |
Operating leases, thereafter | 23 |
Operating leases, total | $ 4,780 |
SEGMENT REPORTING, GEOGRAPHIC_3
SEGMENT REPORTING, GEOGRAPHIC INFORMATION, AND SIGNIFICANT CUSTOMERS - Additional Information (Detail) - segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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, GEOGRAPHIC_4
SEGMENT REPORTING, GEOGRAPHIC INFORMATION, AND SIGNIFICANT CUSTOMERS - Schedule of Revenue by Market Areas (Detail) - Net Revenues - Market | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | 100.00% |
Mobile, Wearables, and Consumer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 81.00% | 48.00% | 57.00% |
Gaming Devices | |||
Concentration Risk [Line Items] | |||
Concentration risk | 5.00% | 31.00% | 24.00% |
Automotive | |||
Concentration Risk [Line Items] | |||
Concentration risk | 13.00% | 15.00% | 7.00% |
Medical | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | 6.00% | 12.00% |
SEGMENT REPORTING, GEOGRAPHIC_5
SEGMENT REPORTING, GEOGRAPHIC INFORMATION, AND SIGNIFICANT CUSTOMERS - Summary of Revenues by Geographic Areas (Detail) - Net Revenues - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | 100.00% |
North America | |||
Concentration Risk [Line Items] | |||
Concentration risk | 77.00% | 22.00% | 32.00% |
Europe | |||
Concentration Risk [Line Items] | |||
Concentration risk | 11.00% | 15.00% | 8.00% |
Asia | |||
Concentration Risk [Line Items] | |||
Concentration risk | 12.00% | 63.00% | 60.00% |
SEGMENT REPORTING, GEOGRAPHIC_6
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | 100.00% |
United States of America | |||
Concentration Risk [Line Items] | |||
Concentration risk | 77.00% | 22.00% | 26.00% |
Japan | |||
Concentration Risk [Line Items] | |||
Concentration risk | 39.00% | 11.00% | |
Korea | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | 47.00% | |
Other countries with less than 10% in a year | |||
Concentration Risk [Line Items] | |||
Concentration risk | 23.00% | 21.00% | 16.00% |
SEGMENT REPORTING, GEOGRAPHIC_7
SEGMENT REPORTING, GEOGRAPHIC INFORMATION, AND SIGNIFICANT CUSTOMERS - Assets by Geographic Information (Details) - Assets, Total - Geographic Concentration Risk | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 91.00% | 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 | 1.00% | 9.00% |
SEGMENT REPORTING, GEOGRAPHIC_8
SEGMENT REPORTING, GEOGRAPHIC INFORMATION, AND SIGNIFICANT CUSTOMERS - Summary of Customers Comprising More Than 10% in Net Revenue (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Revenues | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk | 69.00% | 49.00% | 62.00% |
Net Revenues | Customer Concentration Risk | Apple Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk | 69.00% | 0.00% | 0.00% |
Net Revenues | Customer Concentration Risk | Samsung Electronics | |||
Concentration Risk [Line Items] | |||
Concentration risk | 0.00% | 0.00% | 33.00% |
Net Revenues | Customer Concentration Risk | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk | 0.00% | 20.00% | 13.00% |
Net Revenues | Customer Concentration Risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | 14.00% | |
Net Revenues | Customer Concentration Risk | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk | 11.00% | 2.00% | |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk | 0.00% | 0.00% | 18.00% |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk | 55.00% | 0.00% | 0.00% |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk | 36.00% | 0.00% | 0.00% |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer F | |||
Concentration Risk [Line Items] | |||
Concentration risk | 0.00% | 55.00% | 0.00% |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer G | |||
Concentration Risk [Line Items] | |||
Concentration risk | 0.00% | 26.00% | 46.00% |
Outstanding Accounts and Other Receivable | Credit Concentration Risk | Customer H | |||
Concentration Risk [Line Items] | |||
Concentration risk | 0.00% | 0.00% | 16.00% |
QUARTERLY RESULTS OF OPERATIO_3
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 10,867 | $ 8,552 | $ 6,144 | $ 85,416 | $ 6,896 | $ 11,863 | $ 7,030 | $ 9,224 | |||
Gross profit | 10,839 | 8,491 | 6,050 | 85,381 | 6,857 | 11,802 | 6,976 | 9,181 | |||
Operating income (loss) | (3,546) | (5,163) | (8,295) | 70,105 | (12,216) | (5,443) | (14,911) | (12,852) | $ 53,101 | $ (45,422) | $ (15,263) |
Income (loss) from continuing operations before provisions for income taxes | (3,063) | (4,618) | (7,920) | 70,336 | (12,109) | (5,243) | (14,746) | (12,713) | 54,735 | (44,811) | (14,509) |
Benefit (provision) for income taxes | (79) | (22) | 162 | (453) | (185) | (44) | (99) | (152) | (392) | (480) | (25,521) |
Net income (loss) | $ (3,142) | $ (4,640) | $ (7,758) | $ 69,883 | $ (12,294) | $ (5,287) | $ (14,845) | $ (12,865) | $ 54,343 | $ (45,291) | $ (39,381) |
Basic net income (loss) per share (in dollars per share) | $ (0.10) | $ (0.15) | $ (0.25) | $ 2.35 | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ 1.78 | $ (1.55) | $ (1.37) |
Shares used in calculating basic net income (loss) per share (in shares) | 30,814 | 30,780 | 30,527 | 29,700 | 29,250 | 29,245 | 29,193 | 29,024 | 30,459 | 29,179 | 28,759 |
Diluted net income (loss) per share (in dollars per shares) | $ (0.10) | $ (0.15) | $ (0.25) | $ 2.29 | $ (0.42) | $ (0.18) | $ (0.51) | $ (0.44) | $ 1.73 | $ (1.55) | $ (1.37) |
Shares used in calculating diluted net income (loss) per share (in shares) | 30,814 | 30,780 | 30,527 | 30,566 | 29,250 | 29,245 | 29,193 | 29,024 | 31,407 | 29,179 | 28,759 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 0 | $ 0 | $ 15 |
Charged to Costs and Expenses | 0 | 2 | |
Deductions/ Write-offs (Recoveries) | 0 | 17 | |
Balance at End of Period | $ 0 | $ 0 | $ 0 |
Uncategorized Items - immr-2018
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,996,000) | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 18,752,000 | [1] |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (6,996,000) | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 18,752,000 | [1] |
[1] | Effect of adoption of ASC 606 effective January 1, 2018. See Note 2 for detail disclosures. |