Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 28, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'ZHNE | ' | ' |
Entity Registrant Name | 'ZHONE TECHNOLOGIES INC | ' | ' |
Entity Central Index Key | '0001101680 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 32,302,337 | ' |
Entity Public Float | ' | ' | $19,777,423 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $15,686 | $11,119 |
Accounts receivable, net of allowances for sales returns and doubtful accounts of $1,452 in 2013 and $2,878 in 2012 | 33,328 | 25,820 |
Inventories | 19,562 | 21,404 |
Prepaid expenses and other current assets | 2,269 | 2,590 |
Total current assets | 70,845 | 60,933 |
Property and equipment, net | 718 | 583 |
Other assets | 254 | 208 |
Total assets | 71,817 | 61,724 |
Current liabilities: | ' | ' |
Accounts payable | 12,689 | 7,229 |
Line of credit | 10,000 | 10,000 |
Accrued and other liabilities | 8,865 | 8,836 |
Total current liabilities | 31,554 | 26,065 |
Other long-term liabilities | 2,704 | 3,719 |
Total liabilities | 34,258 | 29,784 |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value. Authorized 180,000 shares; issued and outstanding 32,249 and 31,116 shares as of December 31, 2013 and 2012, respectively | 32 | 31 |
Additional paid-in capital | 1,074,294 | 1,072,839 |
Other comprehensive income | 65 | 216 |
Accumulated deficit | -1,036,832 | -1,041,146 |
Total stockholders' equity | 37,559 | 31,940 |
Total liabilities and stockholders' equity | $71,817 | $61,724 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances for sales returns and doubtful accounts | $1,452 | $2,878 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, issued | 32,249,000 | 31,116,000 |
Common stock, outstanding | 32,249,000 | 31,116,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net revenue | $122,248 | $115,385 | $124,502 |
Cost of revenue | 76,116 | 79,101 | 80,541 |
Gross profit | 46,132 | 36,284 | 43,961 |
Operating expenses: | ' | ' | ' |
Research and product development | 15,326 | 18,542 | 21,380 |
Sales and marketing | 20,159 | 19,304 | 22,297 |
General and administrative | 6,199 | 7,157 | 7,784 |
Impairment of fixed assets | 0 | 61 | 4,236 |
Total operating expenses | 41,684 | 45,064 | 55,697 |
Operating income (loss) | 4,448 | -8,780 | -11,736 |
Interest expense, net | -85 | -102 | -41 |
Other income (expense), net | -7 | -9 | 111 |
Income (loss) before income taxes | 4,356 | -8,891 | -11,666 |
Income tax provision | 42 | 124 | 60 |
Net income (loss) | 4,314 | -9,015 | -11,726 |
Other comprehensive lossbforeign currency translation adjustments | -151 | -21 | -40 |
Comprehensive income (loss) | $4,163 | ($9,036) | ($11,766) |
Earnings per common share | ' | ' | ' |
Basic (in dollar per share) | $0.14 | ($0.29) | ($0.38) |
Diluted (in dollar per share) | $0.13 | ($0.29) | ($0.38) |
Weighted average shares outstanding used to compute earnings per common share | ' | ' | ' |
Basic (in shares) | 31,429 | 31,010 | 30,671 |
Diluted (in shares) | 33,021 | 31,010 | 30,671 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amounts include stock-based compensation cost as follows: | ' | ' | ' |
Stock-based compensation | $424 | $1,314 | $1,670 |
Cost of Revenue | ' | ' | ' |
Amounts include stock-based compensation cost as follows: | ' | ' | ' |
Stock-based compensation | 0 | 63 | 61 |
Research and Product Development | ' | ' | ' |
Amounts include stock-based compensation cost as follows: | ' | ' | ' |
Stock-based compensation | 2 | 297 | 244 |
Sales and Marketing | ' | ' | ' |
Amounts include stock-based compensation cost as follows: | ' | ' | ' |
Stock-based compensation | 2 | 250 | 350 |
General and Administrative | ' | ' | ' |
Amounts include stock-based compensation cost as follows: | ' | ' | ' |
Stock-based compensation | $420 | $704 | $1,015 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common stock | Additional paid-in capital | Other comprehensive income | Accumulated deficit |
In Thousands | |||||
Beginning Balances at Dec. 31, 2010 | $49,415 | $30 | $1,069,513 | $277 | ($1,020,405) |
Beginning Balances (in shares) at Dec. 31, 2010 | ' | 30,555 | ' | ' | ' |
Exercise of stock option for cash (in shares) | ' | 109 | ' | ' | ' |
Exercise of stock options for cash | 77 | 0 | 77 | ' | ' |
Employee stock-based compensation | 1,609 | ' | 1,609 | ' | ' |
Issuance of common stock for executive services (in shares) | 131 | 131 | ' | ' | ' |
Issuance of common stock for executive services | 131 | 1 | 130 | ' | ' |
Issuance of common stock for director services (in shares) | ' | 25 | ' | ' | ' |
Issuance of common stock for director services | 61 | ' | 61 | ' | ' |
Net income (loss) | -11,726 | ' | ' | ' | -11,726 |
Foreign currency translation adjustment | -40 | ' | ' | -40 | ' |
Ending Balances at Dec. 31, 2011 | 39,527 | 31 | 1,071,390 | 237 | -1,032,131 |
Ending Balances (in shares) at Dec. 31, 2011 | ' | 30,820 | ' | ' | ' |
Exercise of stock option for cash (in shares) | ' | 95 | ' | ' | ' |
Exercise of stock options for cash | 49 | 0 | 49 | ' | ' |
Employee stock-based compensation | 1,214 | ' | 1,214 | ' | ' |
Issuance of common stock for executive services (in shares) | 117 | 117 | ' | ' | ' |
Issuance of common stock for executive services | 86 | ' | 86 | ' | ' |
Issuance of common stock for director services (in shares) | ' | 84 | ' | ' | ' |
Issuance of common stock for director services | 100 | ' | 100 | ' | ' |
Net income (loss) | -9,015 | ' | ' | ' | -9,015 |
Foreign currency translation adjustment | -21 | ' | ' | -21 | ' |
Ending Balances at Dec. 31, 2012 | 31,940 | 31 | 1,072,839 | 216 | -1,041,146 |
Ending Balances (in shares) at Dec. 31, 2012 | 31,116 | 31,116 | ' | ' | ' |
Exercise of stock option for cash (in shares) | 930 | 930 | ' | ' | ' |
Exercise of stock options for cash | 1,032 | 1 | 1,031 | ' | ' |
Employee stock-based compensation | 213 | ' | 213 | ' | ' |
Issuance of common stock for executive services (in shares) | ' | 138 | ' | ' | ' |
Issuance of common stock for executive services | 132 | 0 | 132 | ' | ' |
Issuance of common stock for director services (in shares) | ' | 65 | ' | ' | ' |
Issuance of common stock for director services | 79 | ' | 79 | ' | ' |
Net income (loss) | 4,314 | ' | ' | ' | 4,314 |
Foreign currency translation adjustment | -151 | ' | ' | -151 | ' |
Ending Balances at Dec. 31, 2013 | $37,559 | $32 | $1,074,294 | $65 | ($1,036,832) |
Ending Balances (in shares) at Dec. 31, 2013 | 32,249 | 32,249 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $4,314 | ($9,015) | ($11,726) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 367 | 316 | 1,810 |
Stock-based compensation | 424 | 1,314 | 1,670 |
Loss on disposal of fixed assets | 0 | 7 | 0 |
Impairment of fixed assets | 0 | 61 | 4,236 |
Provision for sales returns and doubtful accounts | -1,426 | 2,594 | 1,939 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -6,082 | 3,184 | -3,790 |
Inventories | 1,842 | 5,989 | 3,655 |
Prepaid expenses and other current assets | 321 | 82 | -158 |
Other assets | -46 | 5 | 83 |
Accounts payable | 5,460 | -4,568 | -67 |
Accrued and other liabilities | -986 | -1,853 | -4,424 |
Net cash provided by (used in) operating activities | 4,188 | -1,884 | -6,772 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -502 | -359 | -1,380 |
Changes in restricted cash | 0 | 58 | 0 |
Net cash used in investing activities | -502 | -301 | -1,380 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from exercise of stock options and purchases under the ESPP plan | 1,032 | 135 | 208 |
Net advances (repayment) under credit facilities | 0 | -5,000 | 5,000 |
Net cash provided by (used in) financing activities | 1,032 | -4,865 | 5,208 |
Effect of exchange rate changes on cash | -151 | -21 | -40 |
Net increase (decrease) in cash and cash equivalents | 4,567 | -7,071 | -2,984 |
Cash and cash equivalents at beginning of year | 11,119 | 18,190 | 21,174 |
Cash and cash equivalents at end of year | 15,686 | 11,119 | 18,190 |
Cash paid during period for: | ' | ' | ' |
Taxes | 42 | 124 | 65 |
Interest | $85 | $102 | $44 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Organization and Summary of Significant Accounting Policies | ' | |||||||||||
Organization and Summary of Significant Accounting Policies | ||||||||||||
(a) Description of Business | ||||||||||||
Zhone Technologies, Inc. (sometimes referred to, collectively with its subsidiaries, as “Zhone” or the “Company”) designs, develops and manufactures communications network equipment for telecommunications, wireless and cable operators worldwide. The Company’s products allow network service providers to deliver video and interactive entertainment services in addition to their existing voice and data service offerings. The Company was incorporated under the laws of the state of Delaware in June 1999. The Company began operations in September 1999 and is headquartered in Oakland, California. | ||||||||||||
(b) Basis of Presentation | ||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. In the quarter ended March 31, 2013, the Company recorded a $0.6 million credit to the statement of comprehensive income as a result of a vendor refund received in 2013 which related to overpayments made in 2012. | ||||||||||||
(c) Risks and Uncertainties | ||||||||||||
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Although the Company generated net income for the year ended December 31, 2013, the Company incurred net losses for the years ended December 31, 2012, 2011 and 2010 and there can be no assurance that the Company will continue to generate net income in any future period. As of December 31, 2013, the Company had approximately $15.7 million in cash and cash equivalents and $10.0 million in current debt outstanding under its revolving line of credit and letter of credit facility (the “WFB Facility”) with Wells Fargo Bank (“WFB”). The Company currently expects to repay the WFB Facility within the next twelve months. The Company entered into its WFB Facility to provide liquidity and working capital through March 31, 2016, as discussed in Note 5. | ||||||||||||
The Company’s current lack of liquidity could harm it by: | ||||||||||||
• | increasing its vulnerability to adverse economic conditions in its industry or the economy in general; | |||||||||||
• | requiring substantial amounts of cash to be used for debt servicing, rather than other purposes, including operations; | |||||||||||
• | limiting its ability to plan for, or react to, changes in its business and industry; and | |||||||||||
• | influencing investor and customer perceptions about its financial stability and limiting its ability to obtain financing or acquire customers. | |||||||||||
In order to meet the Company’s liquidity needs and finance its capital expenditures and working capital needs for the business, the Company may be required to sell assets, issue debt or equity securities or borrow on unfavorable terms. If additional capital is raised through the issuance of debt securities or other debt financing, the terms of such debt may include covenants, restrictions and financial ratios that may restrict the Company’s ability to operate its business. Likewise, any equity financing could result in additional dilution of the Company’s stockholders. If the Company is unable to sell assets, issue securities or access additional indebtedness to meet these needs on favorable terms, or at all, the Company may become unable to pay its ordinary expenses, including its debt service, on a timely basis and may be required to reduce the scope of its planned product development and sales and marketing efforts beyond the reductions it has previously taken. In addition, the Company may be required to reduce its operations in low margin regions, including reductions in headcount. Based on the Company’s current plans and business conditions, it believes that its existing cash, cash equivalents and available credit facilities will be sufficient to satisfy its anticipated cash requirements for at least the next twelve months. | ||||||||||||
In addition, global economic and market conditions could impact the Company’s business in a number of ways, including: | ||||||||||||
• | Potential deferment of purchases and orders by customers; | |||||||||||
• | Customers’ inability to obtain financing to make purchases from the Company and/or maintain their business; | |||||||||||
• | Negative impact from increased financial pressures on third-party dealers, distributors and retailers; | |||||||||||
• | Intense competition in the communication equipment market; | |||||||||||
• | Commercial acceptance of the Company’s Single Line Multi-Service ("SLMS") products; and | |||||||||||
• | Negative impact from increased financial pressures on key suppliers. | |||||||||||
The Company may experience material adverse impacts on its business, operating results and financial condition as a result of weak or recessionary economic or market conditions in the United States or the rest of the world. | ||||||||||||
(d) Use of Estimates | ||||||||||||
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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 revenue and expenses during the reporting period. Actual results could differ materially from those estimates. | ||||||||||||
(e) Revenue Recognition | ||||||||||||
The Company recognizes revenue when the earnings process is complete. The Company recognizes product revenue upon shipment of product under contractual terms which transfer title to customers upon shipment, under normal credit terms, net of estimated sales returns and allowances at the time of shipment. Revenue is deferred if there are significant post-delivery obligations or if the fees are not fixed or determinable. When significant post-delivery obligations exist, revenue is deferred until such obligations are fulfilled. The Company’s arrangements generally do not have any significant post-delivery obligations. If the Company’s arrangements include customer acceptance provisions, revenue is recognized upon obtaining the signed acceptance certificate from the customer, unless the Company can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance. In those instances where revenue is recognized prior to obtaining the signed acceptance certificate, the Company uses successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement. The Company also considers historical acceptance experience with the customer, as well as the payment terms specified in the arrangement, when revenue is recognized prior to obtaining the signed acceptance certificate. When collectability is not reasonably assured, revenue is recognized when cash is collected. | ||||||||||||
The Company makes certain sales to product distributors. These customers are given certain privileges to return a portion of inventory. Return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time. The Company recognizes revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors, unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment. In those instances when revenue is recognized upon shipment to distributors, the Company uses historical rates of return from the distributors to provide for estimated product returns. | ||||||||||||
The Company derives revenue primarily from stand-alone sales of its products. In certain cases, the Company’s products are sold along with services, which include education, training, installation, and/or extended warranty services. As such, some of the Company’s sales have multiple deliverables. The Company’s products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as the Company’s arrangements typically do not have any significant performance, cancellation, termination and refund type provisions. Products are typically considered delivered upon shipment. Revenue from services is recognized ratably over the period during which the services are to be performed. | ||||||||||||
For multiple deliverable revenue arrangements, the Company allocates revenue to products and services using the relative selling price method to recognize revenue when the revenue recognition criteria for each deliverable are met. The selling price of a deliverable is based on a hierarchy and if the Company is unable to establish vendor-specific objective evidence of selling price (“VSOE”) it uses third-party evidence of selling price (“TPE”), and if no such data is available, it uses a best estimated selling price (“BSP”). In most instances, particularly as it relates to products, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history. When VSOE cannot be established, the Company attempts to establish the selling price of each element based on TPE. Generally, the Company’s marketing strategy differs from that of the Company’s peers and the Company’s offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. Therefore, the Company is typically not able to determine TPE for the Company’s products. | ||||||||||||
When the Company is unable to establish selling price using VSOE or TPE, the Company uses BSP. The objective of BSP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The BSP of each deliverable is determined using average discounts from list price from historical sales transactions or cost plus margin approaches based on the factors, including but not limited to, the Company’s gross margin objectives and pricing practices plus customer and market specific considerations. | ||||||||||||
The Company has established TPE for its training, education and installation services. TPE is determined based on competitor prices for similar deliverables when sold separately. These service arrangements are typically short term in nature and are largely completed shortly after delivery of the product. Training and education services are based on a daily rate per person and vary according to the type of class offered. Installation services are based on daily rate per person and vary according to the complexity of the products being installed. | ||||||||||||
Extended warranty services are priced based on the type of product and are sold in one to five year durations. Extended warranty services include the right to warranty coverage beyond the standard warranty period. In substantially all of the arrangements with multiple deliverables pertaining to arrangements with these services, the Company has used and intends to continue using VSOE to determine the selling price for the services. The Company determines VSOE based on its normal pricing practices for these specific services when sold separately. | ||||||||||||
(f) Allowances for Sales Returns and Doubtful Accounts | ||||||||||||
The Company records an allowance for sales returns for estimated future product returns related to current period product revenue. The allowance for sales returns is recorded as a reduction of revenue and an allowance against accounts receivable. The Company bases its allowance for sales returns on periodic assessments of historical trends in product return rates and current approved returned products. If the actual future returns were to deviate from the historical data on which the reserve had been established, the Company’s future revenue could be adversely affected. | ||||||||||||
The Company records an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments for amounts owed to the Company. The allowance for doubtful accounts is recorded as a charge to general and administrative expenses. The Company bases its allowance on periodic assessments of its customers’ liquidity and financial condition through analysis of information obtained from credit rating agencies, financial statement review and historical collection trends. Additional allowances may be required in the future if the liquidity or financial conditions of its customers deteriorate, resulting in impairment in their ability to make payments. | ||||||||||||
Activity under the Company’s allowance for sales returns and doubtful accounts was comprised as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 2,878 | $ | 2,024 | $ | 2,433 | ||||||
Charged to revenue | 776 | 2,190 | 2,039 | |||||||||
Charged to (reversal of) expense | (180 | ) | 404 | (100 | ) | |||||||
Utilization | (2,022 | ) | (1,740 | ) | (2,348 | ) | ||||||
Balance at end of year | $ | 1,452 | $ | 2,878 | $ | 2,024 | ||||||
The allowance for doubtful accounts was $0.7 million and $1.6 million as of December 31, 2013 and 2012, respectively. | ||||||||||||
(g) Inventories | ||||||||||||
Inventories are stated at the lower of cost or market, with cost being determined using the first-in, first-out (FIFO) method. In assessing the net realizable value of inventories, the Company is required to make judgments as to future demand requirements and compare these with the current or committed inventory levels. Once inventory has been written down to its estimated net realizable value, its carrying value cannot be increased due to subsequent changes in demand forecasts. To the extent that a severe decline in forecasted demand occurs, or the Company experiences a higher incidence of inventory obsolescence due to rapidly changing technology and customer requirements, the Company may incur significant charges for excess inventory. | ||||||||||||
(h) Foreign Currency Translation | ||||||||||||
For operations outside the United States, the Company translates assets and liabilities of foreign subsidiaries, whose functional currency is the local currency, at end of period exchange rates. Revenues and expenses are translated at monthly average rates of exchange prevailing during the year. The adjustment resulting from translating the financial statements of such foreign subsidiaries, is included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity. Realized gains and losses on foreign currency transactions are included in other income (expense) in the accompanying consolidated statement of comprehensive income (loss). During 2013, 2012 and 2011, the Company recorded no realized foreign exchange gain or loss on its statements of comprehensive income (loss). | ||||||||||||
(i) Comprehensive Income | ||||||||||||
There have been no items reclassified out of accumulated other comprehensive income and into net income. The | ||||||||||||
Company’s other comprehensive loss for the year ended December 31, 2013 is comprised of only foreign exchange translations. | ||||||||||||
(j) Fair Value of Financial Instruments | ||||||||||||
The carrying amounts of the Company’s consolidated financial instruments which include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values as of December 31, 2013 and 2012 due to the relatively short maturities of these instruments. The carrying value of the Company’s debt obligations at December 31, 2013 and 2012 approximate their fair value. | ||||||||||||
(k) Concentration of Risk | ||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist principally of demand deposit and money market accounts. Cash and cash equivalents are principally held with various domestic financial institutions with high credit standing. | ||||||||||||
The Company’s customers include competitive and incumbent local exchange carriers, competitive access providers, Internet service providers, wireless carriers and resellers serving these markets. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. Allowances are maintained for potential doubtful accounts. | ||||||||||||
For the year ended December 31, 2013 and 2012, three customers represented 33% and 25% of net revenue, respectively. The target customers for the Company’s products are network service providers that operate voice, data and video communications networks. There are a limited number of potential customers in this target market. The Company expects that a significant portion of the Company’s future revenue will depend on sales of its products to a limited number of customers. Any failure of one or more customers to purchase products from the Company for any reason, including any downturn in their businesses, would seriously harm the Company’s business, financial condition and results of operations. | ||||||||||||
As of December 31, 2013 and December 31, 2012, three customers accounted for 56% and 52% of net accounts receivable, respectively. As of December 31, 2013 and December 31, 2012, receivables from customers in countries other than the United States represented 82% and 70%, respectively, of net accounts receivable. | ||||||||||||
From time to time, the Company may provide or commit to extend credit or credit support to its customers. As of December 31, 2013, the Company did not have any significant customer financing commitments or guarantees. | ||||||||||||
The Company’s products are concentrated in the communications equipment market, which is highly competitive and subject to rapid change. Significant technological changes in the industry could adversely affect operating results. The Company’s inventories include components that may be specialized in nature, and subject to rapid technological obsolescence. The Company actively manages inventory levels, and the Company considers technological obsolescence and potential changes in product demand based on macroeconomic conditions when estimating required allowances to reduce recorded inventory amounts to market value. Such estimates could change in the future. | ||||||||||||
The Company’s growth and ability to meet customer demands are also dependent on its ability to obtain timely deliveries of components from suppliers and contract manufacturers. The Company depends on contract manufacturers and sole or limited source suppliers for several key components. If the Company were unable to obtain these components on a timely basis, the Company would be unable to meet its customers’ product delivery requirements which could adversely impact operating results. While the Company is not solely dependent on one contract manufacturer, it expects to continue to rely on contract manufacturers to fulfill a portion of its product manufacturing requirements. | ||||||||||||
(l) Property and Equipment | ||||||||||||
Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives. Useful lives of all property and equipment range from 3 to 5 years. Leasehold improvements are generally amortized over the shorter of their useful lives or the remaining lease term. | ||||||||||||
(m) Long-Lived Assets | ||||||||||||
The Company continually monitors events or changes in circumstances that could indicate that the carrying value of an asset may not be fully recoverable based on expected undiscounted cash flows attributable to that asset. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future net undiscounted cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Any assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. | ||||||||||||
During the year ended December 31, 2013, the Company recorded no impairment charges related to the impairment of long-lived assets as discussed in Note 3. During the years ended December 31, 2012 and 2011, the Company recorded charges of $0.1 million and $4.2 million, respectively, related to the impairment of long-lived assets. | ||||||||||||
(n) Accounting for Stock-Based Compensation | ||||||||||||
The Company uses the Black Scholes model to estimate the fair value of options. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statement of comprehensive income (loss). | ||||||||||||
Awards of stock options granted to non-employees under the Company’s share-based compensation plans are accounted for at fair value determined by using the Black Scholes option pricing model. These options are generally immediately exercisable and expire seven to ten years from the date of grant. Non-employee options subject to vesting are re-valued as they become vested. | ||||||||||||
The Company attributes the values of the stock-based compensation to expense using the straight line method. | ||||||||||||
(o) Income Taxes | ||||||||||||
The Company uses the asset and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and the income tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company has recorded a full valuation allowance against its net deferred tax assets at December 31, 2013 and 2012 due to the significant uncertainty regarding whether the deferred tax assets will be realized. | ||||||||||||
(p) Net Income (Loss) per Common Share | ||||||||||||
Basic net income (loss) per share is computed by dividing the net income (loss) applicable to holders of common stock for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net income (loss) per share gives effect to common stock equivalents; however, potential common equivalent shares are excluded if their effect is antidilutive. Potential common equivalent shares are composed of incremental shares of common equivalent shares issuable upon the exercise of stock options and warrants. |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | |
Dec. 31, 2013 | ||
Fair Value Disclosures [Abstract] | ' | |
Fair Value Measurement | ' | |
Fair Value Measurement | ||
The Company utilizes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: | ||
Level 1 – | Inputs are quoted prices in active markets for identical assets or liabilities. | |
Level 2 – | Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. | |
Level 3 – | Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. | |
The following financial instruments are not measured at fair value on the Company’s consolidated balance sheet as of December 31, 2013 and 2012, but require disclosure of their fair values: cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and debt. The estimated fair value of such instruments at December 31, 2013 and 2012 approximated their carrying value as reported on the consolidated balance sheet. The fair value of such financial instruments is determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. | ||
The Company had no financial assets and liabilities as of December 31, 2013 and 2012 recorded at fair value. |
Longlived_Assets
Long-lived Assets | 12 Months Ended |
Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' |
Long-lived Assets | ' |
Long-lived Assets | |
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable based on expected undiscounted cash flows attributable to that asset or asset group. The amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset or asset group. | |
The Company estimates the fair value of its long-lived assets based on a combination of market information primarily obtained from third-party quotes and online markets. In the application of the impairment testing, the Company is required to make estimates of future operating trends and resulting cash flows and judgments on discount rates and other variables. Actual future results and other assumed variables could differ from these estimates. During the fourth quarter of 2011, the Company determined that indicators of impairment existed due to continued negative cash flows and operating losses as well as the significant decrease in the market price of the Company’s stock. These indicators resulted in the potential for the book value of the fixed assets to be impaired, so the Company performed an impairment analysis, resulting in an impairment charge to fixed assets. The Company recorded impairment charges of zero, $0.1 million, and $4.2 million in 2013, 2012, and 2011, respectively. The Company’s long-lived assets as of December 31, 2013 and 2012 consisted of net fixed assets totaling $0.7 million and $0.6 million, respectively. | |
In 2011, when long-lived assets were written down, the fair value of these assets was categorized as Level 2 in the fair value hierarchy. The Company’s valuation techniques used to measure the fair values of the fixed assets were derived from a combination of observable and unobservable inputs. The Company used observable inputs to value a majority of the assets based on quotes obtained for similar assets available in observable markets. The unobservable inputs used were the result of a valuation technique based on the potential salvage values of the goods. |
Balance_Sheet_Detail
Balance Sheet Detail | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Balance Sheet Detail | ' | |||||||
Balance Sheet Detail | ||||||||
Balance sheet detail as of December 31, 2013 and 2012 is as follows (in thousands): | ||||||||
2013 | 2012 | |||||||
Inventories: | ||||||||
Raw materials | $ | 11,722 | $ | 13,226 | ||||
Work in process | 1,724 | 2,051 | ||||||
Finished goods | 6,116 | 6,127 | ||||||
$ | 19,562 | $ | 21,404 | |||||
Property and equipment, net: | ||||||||
Machinery and equipment | 9,610 | 9,178 | ||||||
Computers and acquired software | 3,830 | 3,758 | ||||||
Furniture and fixtures | 247 | 248 | ||||||
Leasehold improvements | 2,066 | 2,067 | ||||||
15,753 | 15,251 | |||||||
Less accumulated depreciation and amortization (1) | (15,035 | ) | (14,668 | ) | ||||
$ | 718 | $ | 583 | |||||
-1 | The accumulated depreciation and amortization balance includes the $4.2 million impairment charge recorded in 2011 and $0.1 million impairment charge recorded in 2012 to decrease the net book value of the Company’s fixed assets to their fair value as discussed above in Note 3. | |||||||
Depreciation and amortization expense associated with property and equipment amounted to $0.4 million, $0.3 million and $1.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
2013 | 2012 | |||||||
Accrued and other liabilities (in thousands): | ||||||||
Accrued warranty | $ | 1,265 | $ | 1,499 | ||||
Accrued compensation | 2,191 | 2,122 | ||||||
Deferred revenue | 1,141 | 1,218 | ||||||
Other | 4,268 | 3,997 | ||||||
$ | 8,865 | $ | 8,836 | |||||
The Company accrues for warranty costs based on historical trends for the expected material and labor costs to provide warranty services. Warranty periods are generally one year from the date of shipment. The following table summarizes the activity related to the product warranty liability during the years ended December 31, 2013 and 2012 (in thousands): | ||||||||
Balance at December 31, 2011 | $ | 1,546 | ||||||
Charged to cost of revenue | 1,036 | |||||||
Claims and settlements | (1,083 | ) | ||||||
Balance at December 31, 2012 | $ | 1,499 | ||||||
Charged to cost of revenue | 696 | |||||||
Claims and settlements | (930 | ) | ||||||
Balance at December 31, 2013 | $ | 1,265 | ||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Debt | |
As of December 31, 2013, the Company had a $25.0 million revolving line of credit and letter of credit facility with WFB to provide liquidity and working capital through March 31, 2016. | |
Under the WFB Facility, the Company has the option of borrowing funds at agreed upon interest rates. The amount that the Company is able to borrow under the WFB Facility varies based on eligible accounts receivable, as defined in the agreement, as long as the aggregate amount outstanding does not exceed $25.0 million less the amount committed as security for letters of credit, which at December 31, 2013 was $10.4 million. To maintain availability of funds under the WFB Facility, the Company pays a commitment fee on the unused portion. The commitment fee is 0.25% per annum and is recorded as interest expense. | |
The Company had $10.0 million outstanding at December 31, 2013 under its WFB Facility. In addition, $10.4 million was committed as security for letters of credit. The Company had $2.1 million of borrowing availability under the WFB Facility as of December 31, 2013. The amounts borrowed under the WFB Facility bear interest, payable monthly, at a floating rate equal to the three-month LIBOR plus a margin of 3.0%. The interest rate on the WFB Facility was 3.25% at December 31, 2013. | |
The Company’s obligations under the WFB Facility are secured by substantially all of its personal property assets and those of its subsidiaries that guarantee the WFB Facility, including their intellectual property. The WFB Facility contains certain financial covenants, and customary affirmative covenants and negative covenants. If the Company defaults under the WFB Facility due to a covenant breach or otherwise, WFB may be entitled to, among other things, require the immediate repayment of all outstanding amounts and sell the Company’s assets to satisfy the obligations under the WFB Facility. As of December 31, 2013, the Company was in compliance with these covenants. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
Stockholders’ Equity | |||||||||||||
(a) Overview | |||||||||||||
As of December 31, 2013 and 2012, the Company’s equity capitalization consisted of 180 million authorized shares of common stock, of which 32.2 million and 31.1 million, respectively, were outstanding. | |||||||||||||
(b) Warrants | |||||||||||||
At December 31, 2013, the Company had a total of 3,290 warrants to purchase common stock outstanding at a weighted average exercise price of $32.45 per share. The outstanding warrants will expire in 2014. No warrants were exercised in 2013, 2012, or 2011. | |||||||||||||
(c) Stock-Based Compensation | |||||||||||||
As of December 31, 2013, the Company had two types of share-based compensation plans related to stock options and employee stock purchases. The compensation cost that has been charged as an expense in the statement of comprehensive income (loss) for those plans was $0.4 million, $1.3 million and $1.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The following table summarizes stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Compensation expense relating to employee stock options | $ | 424 | $ | 1,283 | $ | 1,535 | |||||||
Compensation expense relating to non-employees | — | — | 61 | ||||||||||
Compensation expense relating to Employee Stock Purchase Plan | — | 31 | 74 | ||||||||||
Stock-based compensation expense | $ | 424 | $ | 1,314 | $ | 1,670 | |||||||
Stock Options | |||||||||||||
The Company’s stock-based compensation plans are designed to attract, motivate, retain and reward talented employees, directors and consultants and align stockholder and employee interests. The Company has two active stock option plans, the Amended and Restated Special 2001 Stock Incentive Plan and the Amended and Restated 2001 Stock Incentive Plan. Stock options are primarily issued from the Amended and Restated 2001 Stock Incentive Plan. This plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards and other stock-based awards to officers, employees, directors and consultants of the Company. Options may be granted at an exercise price less than, equal to or greater than the fair market value on the date of grant, except that any options granted to a 10% stockholder must have an exercise price equal to at least 110% of the fair market value of the Company’s common stock on the date of grant. The Board of Directors determines the term of each option, the option exercise price and the vesting terms. Stock options are generally granted at an exercise price equal to the fair market value on the date of grant, expiring seven to ten years from the date of grant and vesting over a period of four years. On January 1 of each year, if the number of shares available for grant under the Amended and Restated 2001 Stock Incentive Plan is less than 5% of the total number of shares of common stock outstanding as of that date, the shares available for grant under the plan are automatically increased by the amount necessary to make the total number of shares available for grant equal to 5% of the total number of shares of common stock outstanding, or by a lesser amount as determined by the Board of Directors. As of December 31, 2013, 0.8 million shares were available for grant under these plans. | |||||||||||||
The Company has estimated the fair value of stock-based payment awards on the date of grant using the Black Scholes pricing model, which is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the term of the awards, actual and projected employee option exercise behaviors, risk free interest rate and expected dividends. The estimated expected term of options granted was determined based on historical option exercise trends. Estimated volatility was based on historical volatility and the risk free interest rate was based on U.S. Treasury yield in effect at the time of grant for the expected life of the options. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore used an expected dividend yield of zero in the option valuation model. The Company is also required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Historical data was used to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. | |||||||||||||
The assumptions used to value option grants for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected term | 4.7 years | 4.7 years | 4.7 years | ||||||||||
Expected volatility | 94 | % | 96 | % | 94 | % | |||||||
Risk free interest rate | 1.42 | % | 0.74 | % | 1.19 | % | |||||||
The weighted average grant date fair value of options granted during the years ended December 31, 2013, 2012 and 2011 was $1.17, $0.95 and $1.25 per share, respectively. The intrinsic value of options exercised for the years ended December 31, 2013, 2012 and 2011 was $3.9 million, zero and $0.2 million, respectively. The Company received $1.0 million, $0.1 million, and $0.1 million in proceeds from stock option exercises for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The following table sets forth the summary of option activity under the stock option program for the year ended December 31, 2013 (in thousands, except per share data): | |||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | ||||||||||
Outstanding | Exercise Price | Remaining | Intrinsic | ||||||||||
Contractual Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 5,323 | $ | 2.07 | 3.64 | — | ||||||||
Granted | 235 | $ | 1.17 | ||||||||||
Canceled/Forfeited | (350 | ) | $ | 12.84 | |||||||||
Exercised | (930 | ) | $ | 1.11 | |||||||||
Outstanding as of December 31, 2013 | 4,278 | $ | 1.36 | 3.02 | $ | 17,828 | |||||||
Vested and expected to vest at December 31, 2013 | 4,196 | $ | 1.36 | 2.97 | $ | 17,432 | |||||||
Vested and exercisable at December 31, 2013 | 3,833 | $ | 1.36 | 2.72 | $ | 15,691 | |||||||
The aggregate intrinsic value represents the total pretax intrinsic value, based on the Company’s closing stock price as of December 31, 2013 of $5.34, which would have been received by the option holders had the option holders exercised their options as of that date. | |||||||||||||
As of December 31, 2013, there was $0.4 million of unrecognized compensation costs, adjusted for estimated forfeitures related to unvested stock-based payments granted which are expected to be recognized over a weighted average period of 1.8 years. | |||||||||||||
In 2011, the Company’s board of directors approved the acceleration of vesting of all unvested options to purchase shares of Zhone common stock that were held by the Company’s senior management as of that date. The acceleration was effective as of September 30, 2011. Options to purchase an aggregate of approximately 0.6 million shares of Zhone common stock were subject to the acceleration and resulted in a compensation charge of $0.7 million which was fully expensed in the three-month period ended September 30, 2011. The acceleration of these options was undertaken to partially offset previous reductions in cash compensation and other benefits by the Company’s senior management. | |||||||||||||
On August 9, 2012, the Company’s board of directors approved the acceleration of vesting of all unvested options to purchase shares of Zhone common stock that were held by the Company’s senior management and employees as of that date. The acceleration for shares held by senior management was effective as of August 9, 2012 and the acceleration of shares held by all other employees was effective as of September 30, 2012. Options to purchase an aggregate of approximately 0.6 million shares of Zhone common stock were subject to the acceleration and resulted in a compensation charge of $0.7 million which was fully expensed in the three month period ended September 30, 2012. The acceleration of these options was undertaken to partially offset previous reductions in cash compensation and other benefits by the Company’s senior management and employees. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
The Company’s 2002 Employee Stock Purchase Plan (“ESPP”) allows eligible employee participants to purchase shares of the Company’s common stock at a price equal to 85% of the lower of the fair market value of the common stock at the beginning or the end of each three-month offering period. Participation is limited to 10% of an employee’s eligible compensation, not to exceed amounts allowed by the Internal Revenue Code. The program was suspended by the Company in June 2012 and there was no activity during the year ended December 31, 2013. The following table summarizes shares purchased, weighted average purchase price, cash received and the aggregate intrinsic value for ESPP purchases during the years ended December 31, 2012 and 2011 (in thousands, except per share data): | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
Shares purchased | 117 | 131 | |||||||||||
Weighted average purchase price | $ | 0.73 | $ | 1 | |||||||||
Cash received | $ | 86 | $ | 131 | |||||||||
Aggregate intrinsic value | $ | 40 | $ | 108 | |||||||||
The assumptions used to value stock purchases under the Company’s ESPP for the years ended December 31, 2012 and 2011 are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
Expected term | 3 months | 3 months | |||||||||||
Volatility | 77 | % | 71 | % | |||||||||
Risk free interest rate | 0.01 | % | 0.03 | % | |||||||||
Weighted average fair value per share | $ | 0.33 | $ | 0.52 | |||||||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income (Loss) Per Share | ' | |||||||||||
Net Income (Loss) Per Share | ||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 4,314 | $ | (9,015 | ) | $ | (11,726 | ) | ||||
Denominator: | ||||||||||||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 31,429 | 31,010 | 30,671 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and share awards | 1,592 | — | — | |||||||||
Diluted | 33,021 | 31,010 | 30,671 | |||||||||
Net income (loss) per share: | ||||||||||||
Basic | $ | 0.14 | $ | (0.29 | ) | $ | (0.38 | ) | ||||
Diluted | $ | 0.13 | $ | (0.29 | ) | $ | (0.38 | ) | ||||
The following tables set forth potential common stock that is not included in the diluted net income (loss) per share calculation above because their effect would be anti-dilutive for the periods indicated (in thousands, except exercise price per share data): | ||||||||||||
2013 | Weighted average | |||||||||||
exercise price | ||||||||||||
Warrants | 3 | $ | 32.45 | |||||||||
Outstanding stock options and unvested restricted shares | 40 | $ | 16.46 | |||||||||
43 | ||||||||||||
2012 | Weighted average | |||||||||||
exercise price | ||||||||||||
Warrants | 7 | $ | 116.55 | |||||||||
Outstanding stock options and unvested restricted shares | 5,376 | $ | 2.05 | |||||||||
5,383 | ||||||||||||
2011 | Weighted average | |||||||||||
exercise price | ||||||||||||
Warrants | 7 | $ | 116.55 | |||||||||
Outstanding stock options and unvested restricted shares | 5,759 | $ | 2.38 | |||||||||
5,766 | ||||||||||||
As of December 31, 2013, 2012 and 2011, there were zero shares of issued common stock subject to repurchase. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The following is a summary of the components of income tax expense applicable to loss before income taxes (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | — | — | — | |||||||||
State | 21 | 26 | 15 | |||||||||
Foreign | 21 | 98 | 45 | |||||||||
$ | 42 | $ | 124 | $ | 60 | |||||||
Deferred: | ||||||||||||
Federal | — | — | — | |||||||||
State | — | — | — | |||||||||
Foreign | — | — | — | |||||||||
$ | 42 | $ | 124 | $ | 60 | |||||||
A reconciliation of the expected tax expense (benefit) to the actual tax expense is as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected tax benefit at statutory rate (35%) | $ | 1,510 | $ | (3,155 | ) | $ | (4,083 | ) | ||||
State taxes, net of Federal effect | 13 | 17 | 9 | |||||||||
Foreign rate differential | (5,465 | ) | (2,416 | ) | (3,532 | ) | ||||||
Valuation allowance | 3,962 | 5,362 | 7,065 | |||||||||
Stock-based compensation | 136 | 402 | 518 | |||||||||
Other | (114 | ) | (86 | ) | 83 | |||||||
$ | 42 | $ | 124 | $ | 60 | |||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands): | ||||||||||||
2013 | 2012 | |||||||||||
Deferred assets: | ||||||||||||
Net operating loss, capital loss, and tax credit carryforwards | $ | 552,010 | $ | 526,575 | ||||||||
Fixed assets and intangible assets | 14,260 | 20,802 | ||||||||||
Inventory and other reserves | 4,088 | 4,995 | ||||||||||
Other | 131 | 128 | ||||||||||
Gross deferred tax assets | 570,489 | 552,500 | ||||||||||
Less valuation allowance | (570,489 | ) | (552,500 | ) | ||||||||
Total net deferred tax assets | $ | — | $ | — | ||||||||
For the years ended December 31, 2013 and 2012, the net changes in the valuation allowance were an increase of $18.0 million and a decrease of $11.1 million, respectively. The Company recorded a full valuation allowance against the net deferred tax assets at December 31, 2013 and 2012 since it is more likely than not that the net deferred tax assets will not be realized due to the lack of previously paid taxes and anticipated taxable income. | ||||||||||||
As of December 31, 2013, the Company had net operating loss carryforwards for federal and California income tax purposes of approximately $1,432.6 million and $422.0 million, respectively, which are available to offset future taxable income, if any, in years through 2031. Approximately $3.6 million and $2.5 million net operating loss carryforwards for federal and California income tax purposes, respectively, are attributable to employee stock option deductions, the benefit from which will be allocated to paid-in-capital rather than current income when subsequently recognized. Federal and state laws impose substantial restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an ownership change for tax purposes, as defined in Section 382 of the Internal Revenue Code. As a result of such ownership changes, the Company’s ability to realize the potential future benefit of tax losses and tax credits that existed at the time of the ownership change will be significantly reduced. The Company’s deferred tax asset and related valuation allowance would be reduced as a result. The Company has not yet performed a Section 382 study to determine the amount of reduction, if any. | ||||||||||||
As of December 31, 2013, the Company also had research credit carryforwards for federal and state income tax purposes of approximately $22.4 million and $7.9 million, respectively, which are available to reduce future income taxes, if any, in years through 2031 and over an indefinite period, respectively. Additionally, the Company had alternative minimum tax credit carryforwards for federal income tax purposes of approximately $0.1 million which are available to reduce future income taxes, if any, over an indefinite period. The Company also had enterprise zone credit carryforwards for state income tax purposes of approximately $0.2 million which are available to reduce future state income taxes, if any, over an indefinite period. | ||||||||||||
The Company may have unrecognized tax benefits included in its deferred tax assets which are subject to a full valuation allowance as of December 31, 2013 and 2012. However, the Company has not yet performed a study to determine the amount of such unrecognized tax benefits. | ||||||||||||
Interest and penalties, to the extent accrued on unrecognized tax benefits in the future, will be included in tax expense. | ||||||||||||
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The open tax years for the major jurisdictions are as follows: | ||||||||||||
• Federal | 2010 – 2013 | |||||||||||
• California and Canada | 2009 – 2013 | |||||||||||
• Brazil | 2008 – 2013 | |||||||||||
• Germany | 2010 – 2013 | |||||||||||
• United Kingdom | 2009 – 2013 | |||||||||||
However, due to the fact the Company had net operating losses and credits carried forward in most jurisdictions, certain items attributable to technically closed years are still subject to adjustment by the relevant taxing authority through an adjustment to tax attributes carried forward to open years. | ||||||||||||
The Company estimates that its foreign income will generally be subject to taxation in the United States on a current basis and that its foreign subsidiaries and representative offices will therefore not have any material untaxed earnings subject to deferred taxes. In addition, to the extent the Company is deemed to have a sufficient connection to a particular taxing jurisdiction to enable that jurisdiction to tax the Company but the Company has not filed an income tax return in that jurisdiction for the year(s) at issue, the jurisdiction would typically be able to assert a tax liability for such years without limitation on the number of years it may examine. | ||||||||||||
The Company is not currently under examination for income taxes in any material jurisdiction. |
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related-Party Transactions | ' |
Related-Party Transactions | |
In the ordinary course of business, the Company’s executive officers and non-employee directors are reimbursed for travel related expenses when incurred for business purposes. The Company reimburses its Chairman, President and Chief Executive Officer, Morteza Ejabat, for the direct operating expenses incurred in the use of his private aircraft when used for business purposes. The amount reimbursed for these expenses was $0.1 million, $0.3 million, and $0.3 million during the years ended December 31, 2013, 2012 and 2011, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Operating Leases | ||||
The Company has entered into operating leases for certain office space and equipment, some of which contain renewal options. | ||||
Estimated future lease payments under all non-cancelable operating leases with terms in excess of one year, including taxes and service fees, are as follows (in thousands): | ||||
Operating leases | ||||
Year ending December 31: | ||||
2014 | $ | 1,649 | ||
2015 | 1,310 | |||
2016 | 429 | |||
2017 | 34 | |||
2018 and thereafter | 13 | |||
Total minimum lease payments | $ | 3,435 | ||
The above amounts include $1.1 million of future minimum lease payments with respect to the Company’s Oakland, California campus. For operating leases that include contractual commitments for operating expenses and maintenance, estimates of such amounts are included based on current rates. Rent expense under operating leases, excluding rent relating to excess facilities previously accrued, totaled $2.0 million, $2.5 million and $2.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. Sublease rental income was immaterial for the year ended December 31, 2013. Sublease rental income totaled $0.4 million, and $0.9 million for the years ended December 31, 2012 and 2011, respectively. | ||||
Performance Bonds | ||||
In the normal course of operations, the Company arranges for the issuance of various types of surety bonds, such as bid and performance bonds, which are agreements under which the surety company guarantees that the Company will perform in accordance with contractual or legal obligations. If the Company fails to perform under its obligations, the maximum potential payment under these surety bonds would have been $3.2 million as of December 31, 2013. | ||||
Purchase Commitments | ||||
The Company has agreements with various contract manufacturers which include non-cancellable inventory purchase commitments. The Company’s inventory purchase commitments typically allow for cancellation of orders 30 days in advance of the required inventory availability date as set by the Company at time of order. The amount of non-cancellable purchase commitments outstanding was $4.6 million as of December 31, 2013. | ||||
Royalties | ||||
The Company has certain royalty commitments associated with the shipment and licensing of certain products. Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying revenue and is recorded in cost of revenue. | ||||
Gain Contingencies | ||||
As part of a patent sale agreement entered into in 2011, the Company is entitled to a portion of proceeds arising from sales of assigned patents. During the years ended December 31, 2013, 2012, and 2011, the Company recorded a gain on patent sales in general and administrative expenses of zero, $1.0 million, and zero, respectively. Future patent sales could result in additional gains. The Company recognizes the gain based upon cash receipts. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2013 | |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Litigation | ' |
Litigation | |
The Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position or results of operations. However, litigation is subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the results of operations of the period in which the ruling occurs, or future periods. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
Employee Benefit Plan | |
The Company maintains a 401(k) plan for its employees whereby eligible employees may contribute up to a specified percentage of their earnings, on a pretax basis, subject to the maximum amount permitted by the Internal Revenue Code. Under the 401(k) plan, the Company may make discretionary contributions. The Company made no discretionary contributions to the plan in 2013, 2012, and 2011. |
Enterprise_Wide_Information
Enterprise Wide Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Enterprise Wide Information | ' | |||||||||||
Enterprise Wide Information | ||||||||||||
The Company designs, develops and manufactures communications products for network service providers. The Company derives substantially all of its revenues from the sales of the Zhone product family. The Company’s chief operating decision maker is the Company’s Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. The Company has determined that it has operated within one discrete reportable business segment since inception. The following summarizes required disclosures about geographic concentrations and revenue by products and services (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue by Geography: | ||||||||||||
United States | $ | 38,208 | $ | 47,131 | $ | 48,626 | ||||||
Canada | 3,398 | 3,763 | 4,190 | |||||||||
Total North America | 41,606 | 50,894 | 52,816 | |||||||||
Latin America | 27,253 | 27,890 | 32,082 | |||||||||
Europe, Middle East, Africa | 49,592 | 34,215 | 38,529 | |||||||||
Asia Pacific | 3,797 | 2,386 | 1,075 | |||||||||
Total International | 80,642 | 64,491 | 71,686 | |||||||||
$ | 122,248 | $ | 115,385 | $ | 124,502 | |||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue by products and services: | ||||||||||||
Products | $ | 113,979 | $ | 110,267 | $ | 119,443 | ||||||
Services | 8,269 | 5,118 | 5,059 | |||||||||
$ | 122,248 | $ | 115,385 | $ | 124,502 | |||||||
Quarterly_Information_unaudite
Quarterly Information (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Information (unaudited) | ' | |||||||||||||||
Quarterly Information (unaudited) | ||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Q1 (1) | Q2 | Q3 | Q4 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net revenue | $ | 28,379 | $ | 30,048 | $ | 31,515 | $ | 32,306 | ||||||||
Gross profit | 10,504 | 11,612 | 11,907 | 12,109 | ||||||||||||
Operating income | 333 | 1,094 | 1,627 | 1,394 | ||||||||||||
Net income | 230 | 1,056 | 1,596 | 1,432 | ||||||||||||
Net income per share | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.03 | $ | 0.05 | $ | 0.04 | ||||||||
Diluted | 0.01 | 0.03 | 0.05 | 0.04 | ||||||||||||
Weighted-average shares outstanding | ||||||||||||||||
Basic | 31,118 | 31,222 | 31,480 | 31,896 | ||||||||||||
Diluted | 31,758 | 32,696 | 33,344 | 34,287 | ||||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Q1 (2) | Q2 | Q3 | Q4 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net revenue | $ | 27,062 | $ | 30,835 | $ | 29,198 | $ | 28,290 | ||||||||
Gross profit | 8,380 | 9,272 | 8,232 | 10,400 | ||||||||||||
Operating income (loss) | (3,354 | ) | (2,092 | ) | (4,139 | ) | 805 | |||||||||
Net income (loss) | (3,414 | ) | (2,102 | ) | (4,198 | ) | 699 | |||||||||
Net income (loss) per share | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | 0.02 | |||||
Diluted | (0.11 | ) | (0.07 | ) | (0.14 | ) | 0.02 | |||||||||
Weighted-average shares outstanding | ||||||||||||||||
Basic | 30,857 | 30,985 | 31,086 | 31,114 | ||||||||||||
Diluted | 30,857 | 30,985 | 31,086 | 31,114 | ||||||||||||
-1 | Includes a $0.6 million credit as a result of a vendor refund received in 2013 which related to overpayments made in 2012. | |||||||||||||||
-2 | Includes a $0.3 million credit as a result of vendor liabilities identified on the consolidated balance sheet where the applicable statute of limitations had expired and thus the Company was no longer legally liable for these amounts. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | ||
Risks and Uncertainties | ' | |
Risks and Uncertainties | ||
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Although the Company generated net income for the year ended December 31, 2013, the Company incurred net losses for the years ended December 31, 2012, 2011 and 2010 and there can be no assurance that the Company will continue to generate net income in any future period. As of December 31, 2013, the Company had approximately $15.7 million in cash and cash equivalents and $10.0 million in current debt outstanding under its revolving line of credit and letter of credit facility (the “WFB Facility”) with Wells Fargo Bank (“WFB”). The Company currently expects to repay the WFB Facility within the next twelve months. The Company entered into its WFB Facility to provide liquidity and working capital through March 31, 2016, as discussed in Note 5. | ||
The Company’s current lack of liquidity could harm it by: | ||
• | increasing its vulnerability to adverse economic conditions in its industry or the economy in general; | |
• | requiring substantial amounts of cash to be used for debt servicing, rather than other purposes, including operations; | |
• | limiting its ability to plan for, or react to, changes in its business and industry; and | |
• | influencing investor and customer perceptions about its financial stability and limiting its ability to obtain financing or acquire customers. | |
In order to meet the Company’s liquidity needs and finance its capital expenditures and working capital needs for the business, the Company may be required to sell assets, issue debt or equity securities or borrow on unfavorable terms. If additional capital is raised through the issuance of debt securities or other debt financing, the terms of such debt may include covenants, restrictions and financial ratios that may restrict the Company’s ability to operate its business. Likewise, any equity financing could result in additional dilution of the Company’s stockholders. If the Company is unable to sell assets, issue securities or access additional indebtedness to meet these needs on favorable terms, or at all, the Company may become unable to pay its ordinary expenses, including its debt service, on a timely basis and may be required to reduce the scope of its planned product development and sales and marketing efforts beyond the reductions it has previously taken. In addition, the Company may be required to reduce its operations in low margin regions, including reductions in headcount. Based on the Company’s current plans and business conditions, it believes that its existing cash, cash equivalents and available credit facilities will be sufficient to satisfy its anticipated cash requirements for at least the next twelve months. | ||
In addition, global economic and market conditions could impact the Company’s business in a number of ways, including: | ||
• | Potential deferment of purchases and orders by customers; | |
• | Customers’ inability to obtain financing to make purchases from the Company and/or maintain their business; | |
• | Negative impact from increased financial pressures on third-party dealers, distributors and retailers; | |
• | Intense competition in the communication equipment market; | |
• | Commercial acceptance of the Company’s Single Line Multi-Service ("SLMS") products; and | |
• | Negative impact from increased financial pressures on key suppliers. | |
The Company may experience material adverse impacts on its business, operating results and financial condition as a result of weak or recessionary economic or market conditions in the United States or the rest of the world. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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 revenue and expenses during the reporting period. Actual results could differ materially from those estimates. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
The Company recognizes revenue when the earnings process is complete. The Company recognizes product revenue upon shipment of product under contractual terms which transfer title to customers upon shipment, under normal credit terms, net of estimated sales returns and allowances at the time of shipment. Revenue is deferred if there are significant post-delivery obligations or if the fees are not fixed or determinable. When significant post-delivery obligations exist, revenue is deferred until such obligations are fulfilled. The Company’s arrangements generally do not have any significant post-delivery obligations. If the Company’s arrangements include customer acceptance provisions, revenue is recognized upon obtaining the signed acceptance certificate from the customer, unless the Company can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance. In those instances where revenue is recognized prior to obtaining the signed acceptance certificate, the Company uses successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement. The Company also considers historical acceptance experience with the customer, as well as the payment terms specified in the arrangement, when revenue is recognized prior to obtaining the signed acceptance certificate. When collectability is not reasonably assured, revenue is recognized when cash is collected. | ||
The Company makes certain sales to product distributors. These customers are given certain privileges to return a portion of inventory. Return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time. The Company recognizes revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors, unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment. In those instances when revenue is recognized upon shipment to distributors, the Company uses historical rates of return from the distributors to provide for estimated product returns. | ||
The Company derives revenue primarily from stand-alone sales of its products. In certain cases, the Company’s products are sold along with services, which include education, training, installation, and/or extended warranty services. As such, some of the Company’s sales have multiple deliverables. The Company’s products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as the Company’s arrangements typically do not have any significant performance, cancellation, termination and refund type provisions. Products are typically considered delivered upon shipment. Revenue from services is recognized ratably over the period during which the services are to be performed. | ||
For multiple deliverable revenue arrangements, the Company allocates revenue to products and services using the relative selling price method to recognize revenue when the revenue recognition criteria for each deliverable are met. The selling price of a deliverable is based on a hierarchy and if the Company is unable to establish vendor-specific objective evidence of selling price (“VSOE”) it uses third-party evidence of selling price (“TPE”), and if no such data is available, it uses a best estimated selling price (“BSP”). In most instances, particularly as it relates to products, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history. When VSOE cannot be established, the Company attempts to establish the selling price of each element based on TPE. Generally, the Company’s marketing strategy differs from that of the Company’s peers and the Company’s offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. Therefore, the Company is typically not able to determine TPE for the Company’s products. | ||
When the Company is unable to establish selling price using VSOE or TPE, the Company uses BSP. The objective of BSP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The BSP of each deliverable is determined using average discounts from list price from historical sales transactions or cost plus margin approaches based on the factors, including but not limited to, the Company’s gross margin objectives and pricing practices plus customer and market specific considerations. | ||
The Company has established TPE for its training, education and installation services. TPE is determined based on competitor prices for similar deliverables when sold separately. These service arrangements are typically short term in nature and are largely completed shortly after delivery of the product. Training and education services are based on a daily rate per person and vary according to the type of class offered. Installation services are based on daily rate per person and vary according to the complexity of the products being installed. | ||
Extended warranty services are priced based on the type of product and are sold in one to five year durations. Extended warranty services include the right to warranty coverage beyond the standard warranty period. In substantially all of the arrangements with multiple deliverables pertaining to arrangements with these services, the Company has used and intends to continue using VSOE to determine the selling price for the services. The Company determines VSOE based on its normal pricing practices for these specific services when sold separately. | ||
Allowances for Sales Returns and Doubtful Accounts | ' | |
Allowances for Sales Returns and Doubtful Accounts | ||
The Company records an allowance for sales returns for estimated future product returns related to current period product revenue. The allowance for sales returns is recorded as a reduction of revenue and an allowance against accounts receivable. The Company bases its allowance for sales returns on periodic assessments of historical trends in product return rates and current approved returned products. If the actual future returns were to deviate from the historical data on which the reserve had been established, the Company’s future revenue could be adversely affected. | ||
The Company records an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments for amounts owed to the Company. The allowance for doubtful accounts is recorded as a charge to general and administrative expenses. The Company bases its allowance on periodic assessments of its customers’ liquidity and financial condition through analysis of information obtained from credit rating agencies, financial statement review and historical collection trends. Additional allowances may be required in the future if the liquidity or financial conditions of its customers deteriorate, resulting in impairment in their ability to make payments. | ||
Inventories | ' | |
Inventories | ||
Inventories are stated at the lower of cost or market, with cost being determined using the first-in, first-out (FIFO) method. In assessing the net realizable value of inventories, the Company is required to make judgments as to future demand requirements and compare these with the current or committed inventory levels. Once inventory has been written down to its estimated net realizable value, its carrying value cannot be increased due to subsequent changes in demand forecasts. To the extent that a severe decline in forecasted demand occurs, or the Company experiences a higher incidence of inventory obsolescence due to rapidly changing technology and customer requirements, the Company may incur significant charges for excess inventory. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
For operations outside the United States, the Company translates assets and liabilities of foreign subsidiaries, whose functional currency is the local currency, at end of period exchange rates. Revenues and expenses are translated at monthly average rates of exchange prevailing during the year. The adjustment resulting from translating the financial statements of such foreign subsidiaries, is included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity. Realized gains and losses on foreign currency transactions are included in other income (expense) in the accompanying consolidated statement of comprehensive income (loss). | ||
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments | ||
The carrying amounts of the Company’s consolidated financial instruments which include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values as of December 31, 2013 and 2012 due to the relatively short maturities of these instruments. | ||
Comprehensive Income | ' | |
Comprehensive Income | ||
There have been no items reclassified out of accumulated other comprehensive income and into net income. The | ||
Company’s other comprehensive loss for the year ended December 31, 2013 is comprised of only foreign exchange translations. | ||
Concentration of Risk | ' | |
Concentration of Risk | ||
Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist principally of demand deposit and money market accounts. Cash and cash equivalents are principally held with various domestic financial institutions with high credit standing. | ||
The Company’s customers include competitive and incumbent local exchange carriers, competitive access providers, Internet service providers, wireless carriers and resellers serving these markets. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. Allowances are maintained for potential doubtful accounts. | ||
For the year ended December 31, 2013 and 2012, three customers represented 33% and 25% of net revenue, respectively. The target customers for the Company’s products are network service providers that operate voice, data and video communications networks. There are a limited number of potential customers in this target market. The Company expects that a significant portion of the Company’s future revenue will depend on sales of its products to a limited number of customers. Any failure of one or more customers to purchase products from the Company for any reason, including any downturn in their businesses, would seriously harm the Company’s business, financial condition and results of operations. | ||
As of December 31, 2013 and December 31, 2012, three customers accounted for 56% and 52% of net accounts receivable, respectively. As of December 31, 2013 and December 31, 2012, receivables from customers in countries other than the United States represented 82% and 70%, respectively, of net accounts receivable. | ||
From time to time, the Company may provide or commit to extend credit or credit support to its customers. As of December 31, 2013, the Company did not have any significant customer financing commitments or guarantees. | ||
The Company’s products are concentrated in the communications equipment market, which is highly competitive and subject to rapid change. Significant technological changes in the industry could adversely affect operating results. The Company’s inventories include components that may be specialized in nature, and subject to rapid technological obsolescence. The Company actively manages inventory levels, and the Company considers technological obsolescence and potential changes in product demand based on macroeconomic conditions when estimating required allowances to reduce recorded inventory amounts to market value. Such estimates could change in the future. | ||
The Company’s growth and ability to meet customer demands are also dependent on its ability to obtain timely deliveries of components from suppliers and contract manufacturers. The Company depends on contract manufacturers and sole or limited source suppliers for several key components. If the Company were unable to obtain these components on a timely basis, the Company would be unable to meet its customers’ product delivery requirements which could adversely impact operating results. While the Company is not solely dependent on one contract manufacturer, it expects to continue to rely on contract manufacturers to fulfill a portion of its product manufacturing requirements. | ||
Property and Equipment | ' | |
Property and Equipment | ||
Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives. Useful lives of all property and equipment range from 3 to 5 years. Leasehold improvements are generally amortized over the shorter of their useful lives or the remaining lease term. | ||
Long-Lived Assets | ' | |
Long-Lived Assets | ||
The Company continually monitors events or changes in circumstances that could indicate that the carrying value of an asset may not be fully recoverable based on expected undiscounted cash flows attributable to that asset. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future net undiscounted cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Any assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. | ||
Accounting for Stock-Based Compensation | ' | |
Accounting for Stock-Based Compensation | ||
The Company uses the Black Scholes model to estimate the fair value of options. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statement of comprehensive income (loss). | ||
Awards of stock options granted to non-employees under the Company’s share-based compensation plans are accounted for at fair value determined by using the Black Scholes option pricing model. These options are generally immediately exercisable and expire seven to ten years from the date of grant. Non-employee options subject to vesting are re-valued as they become vested. | ||
The Company attributes the values of the stock-based compensation to expense using the straight line method. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company uses the asset and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and the income tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company has recorded a full valuation allowance against its net deferred tax assets at December 31, 2013 and 2012 due to the significant uncertainty regarding whether the deferred tax assets will be realized. | ||
Net Income (Loss) per Common Share | ' | |
Net Income (Loss) per Common Share | ||
Basic net income (loss) per share is computed by dividing the net income (loss) applicable to holders of common stock for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net income (loss) per share gives effect to common stock equivalents; however, potential common equivalent shares are excluded if their effect is antidilutive. Potential common equivalent shares are composed of incremental shares of common equivalent shares issuable upon the exercise of stock options and warrants. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Allowance for Sales Returns and Doubtful Accounts | ' | |||||||||||
Activity under the Company’s allowance for sales returns and doubtful accounts was comprised as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 2,878 | $ | 2,024 | $ | 2,433 | ||||||
Charged to revenue | 776 | 2,190 | 2,039 | |||||||||
Charged to (reversal of) expense | (180 | ) | 404 | (100 | ) | |||||||
Utilization | (2,022 | ) | (1,740 | ) | (2,348 | ) | ||||||
Balance at end of year | $ | 1,452 | $ | 2,878 | $ | 2,024 | ||||||
Balance_Sheet_Detail_Tables
Balance Sheet Detail (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Inventories | ' | |||||||
Balance sheet detail as of December 31, 2013 and 2012 is as follows (in thousands): | ||||||||
2013 | 2012 | |||||||
Inventories: | ||||||||
Raw materials | $ | 11,722 | $ | 13,226 | ||||
Work in process | 1,724 | 2,051 | ||||||
Finished goods | 6,116 | 6,127 | ||||||
$ | 19,562 | $ | 21,404 | |||||
Property and equipment, net | ' | |||||||
Property and equipment, net: | ||||||||
Machinery and equipment | 9,610 | 9,178 | ||||||
Computers and acquired software | 3,830 | 3,758 | ||||||
Furniture and fixtures | 247 | 248 | ||||||
Leasehold improvements | 2,066 | 2,067 | ||||||
15,753 | 15,251 | |||||||
Less accumulated depreciation and amortization (1) | (15,035 | ) | (14,668 | ) | ||||
$ | 718 | $ | 583 | |||||
-1 | The accumulated depreciation and amortization balance includes the $4.2 million impairment charge recorded in 2011 and $0.1 million impairment charge recorded in 2012 to decrease the net book value of the Company’s fixed assets to their fair value as discussed above in Note 3. | |||||||
Accrued and Other Liabilities | ' | |||||||
2013 | 2012 | |||||||
Accrued and other liabilities (in thousands): | ||||||||
Accrued warranty | $ | 1,265 | $ | 1,499 | ||||
Accrued compensation | 2,191 | 2,122 | ||||||
Deferred revenue | 1,141 | 1,218 | ||||||
Other | 4,268 | 3,997 | ||||||
$ | 8,865 | $ | 8,836 | |||||
Product Warranty Liability | ' | |||||||
Warranty periods are generally one year from the date of shipment. The following table summarizes the activity related to the product warranty liability during the years ended December 31, 2013 and 2012 (in thousands): | ||||||||
Balance at December 31, 2011 | $ | 1,546 | ||||||
Charged to cost of revenue | 1,036 | |||||||
Claims and settlements | (1,083 | ) | ||||||
Balance at December 31, 2012 | $ | 1,499 | ||||||
Charged to cost of revenue | 696 | |||||||
Claims and settlements | (930 | ) | ||||||
Balance at December 31, 2013 | $ | 1,265 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Summary of Stock Based Compensation Expense | ' | ||||||||||||
The following table summarizes stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Compensation expense relating to employee stock options | $ | 424 | $ | 1,283 | $ | 1,535 | |||||||
Compensation expense relating to non-employees | — | — | 61 | ||||||||||
Compensation expense relating to Employee Stock Purchase Plan | — | 31 | 74 | ||||||||||
Stock-based compensation expense | $ | 424 | $ | 1,314 | $ | 1,670 | |||||||
Assumptions Used to Value Options Grants | ' | ||||||||||||
The assumptions used to value option grants for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected term | 4.7 years | 4.7 years | 4.7 years | ||||||||||
Expected volatility | 94 | % | 96 | % | 94 | % | |||||||
Risk free interest rate | 1.42 | % | 0.74 | % | 1.19 | % | |||||||
Option Activity under Stock Option Program | ' | ||||||||||||
The following table sets forth the summary of option activity under the stock option program for the year ended December 31, 2013 (in thousands, except per share data): | |||||||||||||
Options | Weighted Average | Weighted Average | Aggregate | ||||||||||
Outstanding | Exercise Price | Remaining | Intrinsic | ||||||||||
Contractual Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 5,323 | $ | 2.07 | 3.64 | — | ||||||||
Granted | 235 | $ | 1.17 | ||||||||||
Canceled/Forfeited | (350 | ) | $ | 12.84 | |||||||||
Exercised | (930 | ) | $ | 1.11 | |||||||||
Outstanding as of December 31, 2013 | 4,278 | $ | 1.36 | 3.02 | $ | 17,828 | |||||||
Vested and expected to vest at December 31, 2013 | 4,196 | $ | 1.36 | 2.97 | $ | 17,432 | |||||||
Vested and exercisable at December 31, 2013 | 3,833 | $ | 1.36 | 2.72 | $ | 15,691 | |||||||
Shares Purchased, Weighted Average Purchase Price, Cash Received and Aggregate Intrinsic Value for Employee Stock Purchase Plan Purchases | ' | ||||||||||||
The following table summarizes shares purchased, weighted average purchase price, cash received and the aggregate intrinsic value for ESPP purchases during the years ended December 31, 2012 and 2011 (in thousands, except per share data): | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
Shares purchased | 117 | 131 | |||||||||||
Weighted average purchase price | $ | 0.73 | $ | 1 | |||||||||
Cash received | $ | 86 | $ | 131 | |||||||||
Aggregate intrinsic value | $ | 40 | $ | 108 | |||||||||
Assumptions used to Value Stock Purchases under Employee Stock Purchase Plan | ' | ||||||||||||
The assumptions used to value stock purchases under the Company’s ESPP for the years ended December 31, 2012 and 2011 are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
Expected term | 3 months | 3 months | |||||||||||
Volatility | 77 | % | 71 | % | |||||||||
Risk free interest rate | 0.01 | % | 0.03 | % | |||||||||
Weighted average fair value per share | $ | 0.33 | $ | 0.52 | |||||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Computation of Basic and Diluted Net Income (Loss) Per Share | ' | |||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 4,314 | $ | (9,015 | ) | $ | (11,726 | ) | ||||
Denominator: | ||||||||||||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 31,429 | 31,010 | 30,671 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and share awards | 1,592 | — | — | |||||||||
Diluted | 33,021 | 31,010 | 30,671 | |||||||||
Net income (loss) per share: | ||||||||||||
Basic | $ | 0.14 | $ | (0.29 | ) | $ | (0.38 | ) | ||||
Diluted | $ | 0.13 | $ | (0.29 | ) | $ | (0.38 | ) | ||||
Potential Common Stock not Included in Diluted Net Loss Per Share Calculation | ' | |||||||||||
The following tables set forth potential common stock that is not included in the diluted net income (loss) per share calculation above because their effect would be anti-dilutive for the periods indicated (in thousands, except exercise price per share data): | ||||||||||||
2013 | Weighted average | |||||||||||
exercise price | ||||||||||||
Warrants | 3 | $ | 32.45 | |||||||||
Outstanding stock options and unvested restricted shares | 40 | $ | 16.46 | |||||||||
43 | ||||||||||||
2012 | Weighted average | |||||||||||
exercise price | ||||||||||||
Warrants | 7 | $ | 116.55 | |||||||||
Outstanding stock options and unvested restricted shares | 5,376 | $ | 2.05 | |||||||||
5,383 | ||||||||||||
2011 | Weighted average | |||||||||||
exercise price | ||||||||||||
Warrants | 7 | $ | 116.55 | |||||||||
Outstanding stock options and unvested restricted shares | 5,759 | $ | 2.38 | |||||||||
5,766 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of Income Tax Expense Applicable to Loss Before Income Taxes | ' | |||||||||||
The following is a summary of the components of income tax expense applicable to loss before income taxes (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | — | — | — | |||||||||
State | 21 | 26 | 15 | |||||||||
Foreign | 21 | 98 | 45 | |||||||||
$ | 42 | $ | 124 | $ | 60 | |||||||
Deferred: | ||||||||||||
Federal | — | — | — | |||||||||
State | — | — | — | |||||||||
Foreign | — | — | — | |||||||||
$ | 42 | $ | 124 | $ | 60 | |||||||
Reconciliation of Expected Tax Expense (Benefit) to Actual Tax Expense (Benefit) | ' | |||||||||||
A reconciliation of the expected tax expense (benefit) to the actual tax expense is as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected tax benefit at statutory rate (35%) | $ | 1,510 | $ | (3,155 | ) | $ | (4,083 | ) | ||||
State taxes, net of Federal effect | 13 | 17 | 9 | |||||||||
Foreign rate differential | (5,465 | ) | (2,416 | ) | (3,532 | ) | ||||||
Valuation allowance | 3,962 | 5,362 | 7,065 | |||||||||
Stock-based compensation | 136 | 402 | 518 | |||||||||
Other | (114 | ) | (86 | ) | 83 | |||||||
$ | 42 | $ | 124 | $ | 60 | |||||||
Components of Company's Deferred Tax Assets And Liabilities | ' | |||||||||||
Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands): | ||||||||||||
2013 | 2012 | |||||||||||
Deferred assets: | ||||||||||||
Net operating loss, capital loss, and tax credit carryforwards | $ | 552,010 | $ | 526,575 | ||||||||
Fixed assets and intangible assets | 14,260 | 20,802 | ||||||||||
Inventory and other reserves | 4,088 | 4,995 | ||||||||||
Other | 131 | 128 | ||||||||||
Gross deferred tax assets | 570,489 | 552,500 | ||||||||||
Less valuation allowance | (570,489 | ) | (552,500 | ) | ||||||||
Total net deferred tax assets | $ | — | $ | — | ||||||||
Open Tax Years for Major Jurisdictions | ' | |||||||||||
The open tax years for the major jurisdictions are as follows: | ||||||||||||
• Federal | 2010 – 2013 | |||||||||||
• California and Canada | 2009 – 2013 | |||||||||||
• Brazil | 2008 – 2013 | |||||||||||
• Germany | 2010 – 2013 | |||||||||||
• United Kingdom | 2009 – 2013 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Estimated Future Lease Payments under All Non Cancelable Operating Leases | ' | |||
Estimated future lease payments under all non-cancelable operating leases with terms in excess of one year, including taxes and service fees, are as follows (in thousands): | ||||
Operating leases | ||||
Year ending December 31: | ||||
2014 | $ | 1,649 | ||
2015 | 1,310 | |||
2016 | 429 | |||
2017 | 34 | |||
2018 and thereafter | 13 | |||
Total minimum lease payments | $ | 3,435 | ||
Enterprise_Wide_Information_Ta
Enterprise Wide Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Revenue by Geography | ' | |||||||||||
The following summarizes required disclosures about geographic concentrations and revenue by products and services (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue by Geography: | ||||||||||||
United States | $ | 38,208 | $ | 47,131 | $ | 48,626 | ||||||
Canada | 3,398 | 3,763 | 4,190 | |||||||||
Total North America | 41,606 | 50,894 | 52,816 | |||||||||
Latin America | 27,253 | 27,890 | 32,082 | |||||||||
Europe, Middle East, Africa | 49,592 | 34,215 | 38,529 | |||||||||
Asia Pacific | 3,797 | 2,386 | 1,075 | |||||||||
Total International | 80,642 | 64,491 | 71,686 | |||||||||
$ | 122,248 | $ | 115,385 | $ | 124,502 | |||||||
Revenue by Products and Services | ' | |||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue by products and services: | ||||||||||||
Products | $ | 113,979 | $ | 110,267 | $ | 119,443 | ||||||
Services | 8,269 | 5,118 | 5,059 | |||||||||
$ | 122,248 | $ | 115,385 | $ | 124,502 | |||||||
Quarterly_Information_unaudite1
Quarterly Information (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Information | ' | |||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Q1 (1) | Q2 | Q3 | Q4 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net revenue | $ | 28,379 | $ | 30,048 | $ | 31,515 | $ | 32,306 | ||||||||
Gross profit | 10,504 | 11,612 | 11,907 | 12,109 | ||||||||||||
Operating income | 333 | 1,094 | 1,627 | 1,394 | ||||||||||||
Net income | 230 | 1,056 | 1,596 | 1,432 | ||||||||||||
Net income per share | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.03 | $ | 0.05 | $ | 0.04 | ||||||||
Diluted | 0.01 | 0.03 | 0.05 | 0.04 | ||||||||||||
Weighted-average shares outstanding | ||||||||||||||||
Basic | 31,118 | 31,222 | 31,480 | 31,896 | ||||||||||||
Diluted | 31,758 | 32,696 | 33,344 | 34,287 | ||||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Q1 (2) | Q2 | Q3 | Q4 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net revenue | $ | 27,062 | $ | 30,835 | $ | 29,198 | $ | 28,290 | ||||||||
Gross profit | 8,380 | 9,272 | 8,232 | 10,400 | ||||||||||||
Operating income (loss) | (3,354 | ) | (2,092 | ) | (4,139 | ) | 805 | |||||||||
Net income (loss) | (3,414 | ) | (2,102 | ) | (4,198 | ) | 699 | |||||||||
Net income (loss) per share | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | 0.02 | |||||
Diluted | (0.11 | ) | (0.07 | ) | (0.14 | ) | 0.02 | |||||||||
Weighted-average shares outstanding | ||||||||||||||||
Basic | 30,857 | 30,985 | 31,086 | 31,114 | ||||||||||||
Diluted | 30,857 | 30,985 | 31,086 | 31,114 | ||||||||||||
-1 | Includes a $0.6 million credit as a result of a vendor refund received in 2013 which related to overpayments made in 2012. | |||||||||||||||
-2 | Includes a $0.3 million credit as a result of vendor liabilities identified on the consolidated balance sheet where the applicable statute of limitations had expired and thus the Company was no longer legally liable for these amounts. |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Quantifying misstatement in current year financial statements, amount | $600,000 | ' | ' | ' | ' |
Cash and cash equivalents | ' | 15,686,000 | 11,119,000 | 18,190,000 | 21,174,000 |
Line of credit | ' | 10,000,000 | 10,000,000 | ' | ' |
Allowance for doubtful accounts | ' | 700,000 | 1,600,000 | ' | ' |
Foreign exchange loss realized | ' | 0 | 0 | 0 | ' |
Percentage of net accounts receivable | ' | 56.00% | 52.00% | ' | ' |
Impairment of fixed assets | ' | $0 | $61,000 | $4,236,000 | ' |
Other than United States | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Percentage of net accounts receivable | ' | 82.00% | 70.00% | ' | ' |
Minimum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Extended product warranty, term | ' | '1 year | ' | ' | ' |
Property and equipment, useful lives | ' | '3 years | ' | ' | ' |
Non-employee options, expiration period | ' | '7 years | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Extended product warranty, term | ' | '5 years | ' | ' | ' |
Property and equipment, useful lives | ' | '5 years | ' | ' | ' |
Non-employee options, expiration period | ' | '10 years | ' | ' | ' |
Net Revenue | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Number Of Major Customers | ' | 3 | 3 | ' | ' |
Net Revenue | Customer Concentration Risk | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue | ' | 33.00% | 25.00% | ' | ' |
Accounts Receivable [Member] | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Number Of Major Customers | ' | 3 | 3 | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies Allowance for Sales Returns and Doubtful Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts Receivable and Sales Returns [Roll Forward] | ' | ' | ' |
Balance at beginning of year | $2,878 | $2,024 | $2,433 |
Charged to revenue | 776 | 2,190 | 2,039 |
Charged to (reversal of) expense | -180 | 404 | -100 |
Utilization | -2,022 | -1,740 | -2,348 |
Balance at end of year | $1,452 | $2,878 | $2,024 |
Longlived_Assets_Details
Long-lived Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Impairment of fixed assets | $0 | $61 | $4,236 |
Property and equipment, net | $718 | $583 | ' |
Balance_Sheet_Detail_Details
Balance Sheet Detail (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Balance Sheet Related Disclosures [Abstract] | ' | ' | ' |
Depreciation and amortization associated with property and equipment | $367 | $316 | $1,810 |
Warranty period from date of shipment | '1 year | ' | ' |
Balance_Sheet_Detail_Inventori
Balance Sheet Detail Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories: | ' | ' |
Raw materials | $11,722 | $13,226 |
Work in process | 1,724 | 2,051 |
Finished goods | 6,116 | 6,127 |
Inventories | $19,562 | $21,404 |
Balance_Sheet_Detail_Property_
Balance Sheet Detail Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Property and equipment, net: | ' | ' | ' | ||
Machinery and equipment | $9,610 | $9,178 | ' | ||
Computers and acquired software | 3,830 | 3,758 | ' | ||
Furniture and fixtures | 247 | 248 | ' | ||
Leasehold improvements | 2,066 | 2,067 | ' | ||
Property, Plant and Equipment, Gross, Total | 15,753 | 15,251 | ' | ||
Less accumulated depreciation and amortization | -15,035 | [1] | -14,668 | [1] | ' |
Property and equipment, net | 718 | 583 | ' | ||
Impairment charge to fixed assets | $0 | $61 | $4,236 | ||
[1] | The accumulated depreciation and amortization balance includes the $4.2 million impairment charge recorded in 2011 and $0.1 million impairment charge recorded in 2012 to decrease the net book value of the Companybs fixed assets to their fair value as discussed above in Note 3. |
Balance_Sheet_Detail_Accrued_a
Balance Sheet Detail Accrued and Other Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Balance Sheet Related Disclosures [Abstract] | ' | ' | ' |
Accrued warranty | $1,265 | $1,499 | $1,546 |
Accrued compensation | 2,191 | 2,122 | ' |
Deferred revenue | 1,141 | 1,218 | ' |
Other | 4,268 | 3,997 | ' |
Accrued and other liabilities | $8,865 | $8,836 | ' |
Balance_Sheet_Detail_Product_W
Balance Sheet Detail Product Warranty Liability (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' |
Beginning balance | $1,499 | $1,546 |
Charged to cost of revenue | 696 | 1,036 |
Claims and settlements | -930 | -1,083 |
Ending balance | $1,265 | $1,499 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
WFB credit facility, maximum borrowing capacity | $25,000,000 |
WFB credit facility, expiration date | 31-Mar-16 |
WFB credit facility, commitment as security for various letters of credit | 10,400,000 |
WFB credit facility, remaining borrowing capacity | 2,100,000 |
WFB credit facility, commitment fee on unused capacity, percentage | 0.25% |
WFB credit facility, outstanding amount | $10,000,000 |
Line of credit, marginal floating rate over three-months LIBOR rate | 3.00% |
WFB credit facility, interest rate | 3.25% |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CompensationPlan | |||||
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | 180,000,000 | 180,000,000 | ' |
Common stock, shares outstanding | ' | ' | 32,249,000 | 31,116,000 | ' |
Warrants outstanding | ' | ' | 3,290 | ' | ' |
Weighted average exercise price of warrants | ' | ' | 32.45 | ' | ' |
Number of share-based compensation plans | ' | ' | 2 | ' | ' |
Stock-based compensation | ' | ' | $424,000 | $1,314,000 | $1,670,000 |
Stock options vesting period | ' | ' | '4 years | ' | ' |
Shares grant description | ' | ' | 'On JanuaryB 1 of each year, if the number of shares available for grant under the Amended and Restated 2001 Stock Incentive Plan is less than 5% of the total number of shares of common stock outstanding as of that date, the shares available for grant under the plan are automatically increased by the amount necessary to make the total number of shares available for grant equal to 5% of the total number of shares of common stock outstanding, or by a lesser amount as determined by the Board of Directors. | ' | ' |
Shares available for grant | ' | ' | 800,000 | ' | ' |
Weighted average fair value of options granted | ' | ' | $1.17 | $0.95 | $1.25 |
Options exercised, intrinsic value | ' | ' | 3,900,000 | 0 | 200,000 |
Proceeds from stock options exercised | ' | ' | 1,000,000 | 100,000 | 100,000 |
Closing stock price | ' | ' | $5.34 | ' | ' |
Unrecognized compensation cost related to unvested stock based payments | ' | ' | 400,000 | ' | ' |
Unrecognized compensation cost related to unvested stock based payments, weighted average recognition period | ' | ' | '1 year 9 months 24 days | ' | ' |
Number of shares subject to stock acceleration | 600,000 | 600,000 | ' | ' | ' |
Compensation charge related to stock acceleration | $700,000 | $700,000 | ' | ' | ' |
Employee Stock Purchase plan, Purchase Price of Common Stock as percentage of fair market value | ' | ' | 85.00% | ' | ' |
Maximum percentage of employee compensation eligible for participation in Employee stock purchase plan | ' | ' | 10.00% | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Warrants, expiration year | ' | ' | '2014 | ' | ' |
10 percent stockholder | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Minimum stock option exercise price for 10% stockholder | ' | ' | 110.00% | ' | ' |
Stockholders_Equity_Summary_of
Stockholders' Equity Summary of Stock Based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $424 | $1,314 | $1,670 |
Compensation expense relating to employee stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 424 | 1,283 | 1,535 |
Compensation expense relating to non-employees | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | 0 | 0 | 61 |
Compensation expense relating to Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation | $0 | $31 | $74 |
Stockholders_Equity_Assumption
Stockholders' Equity Assumptions used to Value Options Grants (Details) (Stock Options) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options | ' | ' | ' |
Share based Compensation Arrangement Assumptions Used to Estimate Fair Values of Share Options Granted [Line Items] | ' | ' | ' |
Expected term | '4 years 8 months 12 days | '4 years 8 months 12 days | '4 years 8 months 12 days |
Expected volatility | 94.00% | 96.00% | 94.00% |
Risk free interest rate | 1.42% | 0.74% | 1.19% |
Stockholders_Equity_Stock_Opti
Stockholders' Equity Stock Option Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Options Outstanding | ' | ' |
Options outstanding at beginning of period | 5,323 | ' |
Granted | 235 | ' |
Canceled/Forfeited | -350 | ' |
Exercised | -930 | ' |
Options outstanding at end of period | 4,278 | 5,323 |
Options outstanding vested and expected to vest at end of period | 4,196 | ' |
Options outstanding vested and exercisable at end of period | 3,833 | ' |
Weighted Average Exercise Price | ' | ' |
Options outstanding at beginning of period | $2.07 | ' |
Granted | $1.17 | ' |
Canceled/Forfeited | $12.84 | ' |
Exercised | $1.11 | ' |
Options outstanding at end of period | $1.36 | $2.07 |
Vested and expected to vest at end of period | $1.36 | ' |
Vested and exercisable at end of period | $1.36 | ' |
Weighted Average Remaining Contractual Term (years) | ' | ' |
Stock options outstanding | '3 years 0 months 7 days | '3 years 7 months 21 days |
Vested and expected to vest ending balance | '2 years 11 months 19 days | ' |
Vested and exercisable ending balance | '2 years 8 months 19 days | ' |
Aggregate intrinsic value | ' | ' |
Options outstanding at beginning of period | $0 | ' |
Options outstanding at end of period | 17,828 | 0 |
Vested and expected to vest at end of period | 17,432 | ' |
Vested and exercisable at end of period | $15,691 | ' |
Stockholders_Equity_Shares_Pur
Stockholders' Equity Shares Purchased, Weighted Average Purchase Price, Cash Received and Aggregate Intrinsic Value for Employee Stock Purchase Plan Purchases (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Stockholders' Equity Note [Abstract] | ' | ' |
Shares purchased | 117 | 131 |
Weighted average purchase price | $0.73 | $1 |
Cash received | $86 | $131 |
Aggregate intrinsic value | $40 | $108 |
Stockholders_Equity_Assumption1
Stockholders' Equity Assumptions used to Value Stock Purchases under Employee Stock Purchase Plan (Details) (Employee Stock Purchase Plan, USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Purchase Plan | ' | ' |
Employee Stock Purchase Plan [Line Items] | ' | ' |
Expected term | '3 months | '3 months |
Volatility | 77.00% | 71.00% |
Risk free interest rate | 0.01% | 0.03% |
Weighted average fair value per share | $0.33 | $0.52 |
Net_Income_Loss_Per_Share_Comp
Net Income (Loss) Per Share Computation of Basic and Diluted Net Loss Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net income (loss) | $1,432 | $1,596 | $1,056 | $230 | [1] | $699 | ($4,198) | ($2,102) | ($3,414) | [2] | $4,314 | ($9,015) | ($11,726) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic (in shares) | 31,896 | 31,480 | 31,222 | 31,118 | 31,114 | 31,086 | 30,985 | 30,857 | 31,429 | 31,010 | 30,671 | ||
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock options and share awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,592 | 0 | 0 | ||
Diluted (in shares) | 34,287 | 33,344 | 32,696 | 31,758 | 31,114 | 31,086 | 30,985 | 30,857 | 33,021 | 31,010 | 30,671 | ||
Basic (in dollar per share) | $0.04 | $0.05 | $0.03 | $0.01 | [1] | $0.02 | ($0.14) | ($0.07) | ($0.11) | [2] | $0.14 | ($0.29) | ($0.38) |
Diluted (in dollar per share) | $0.04 | $0.05 | $0.03 | $0.01 | [1] | $0.02 | ($0.14) | ($0.07) | ($0.11) | [2] | $0.13 | ($0.29) | ($0.38) |
[1] | Includes a $0.6 million credit as a result of a vendor refund received in 2013 which related to overpayments made in 2012. | ||||||||||||
[2] | Includes a $0.3 million credit as a result of vendor liabilities identified on the consolidated balance sheet where the applicable statute of limitations had expired and thus the Company was no longer legally liable for these amounts. |
Net_Income_Loss_Per_Share_Anti
Net Income (Loss) Per Share Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average exercise price of warrants | 32.45 | ' | ' |
Antidilutive securities excluded from computation of loss per share calculation, shares | 43 | 5,383 | 5,766 |
Warrants | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average exercise price of warrants | 32.45 | 116.55 | 116.55 |
Antidilutive securities excluded from computation of loss per share calculation, shares | 3 | 7 | 7 |
Stock options and unvested restricted shares | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average exercise price of outstanding stock options and unvested restricted shares | $16.46 | 2.05 | 2.38 |
Antidilutive securities excluded from computation of loss per share calculation, shares | 40 | 5,376 | 5,759 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | ' | ' |
Change in deferred tax valuation allowance | $18 | $11.10 |
Federal | ' | ' |
Income Taxes [Line Items] | ' | ' |
Net operating loss carryforwards | 1,432.60 | ' |
Operating loss carryforward attributable to stock options | 3.6 | ' |
Research credit carry forward | 22.4 | ' |
Alternative minimum tax credit carry forward | 0.1 | ' |
California | ' | ' |
Income Taxes [Line Items] | ' | ' |
Net operating loss carryforwards | 422 | ' |
Operating loss carryforward attributable to stock options | 2.5 | ' |
State | ' | ' |
Income Taxes [Line Items] | ' | ' |
Research credit carry forward | 7.9 | ' |
Operating loss carry forwards, expiration year | '2031 | ' |
Enterprise Zone credit carry forward | $0.20 | ' |
Income_Taxes_Components_of_Inc
Income Taxes Components of Income Tax Expense Applicable to Loss Before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $0 | $0 | $0 |
State | 21 | 26 | 15 |
Foreign | 21 | 98 | 45 |
Current Income Tax Expense (Benefit), Total | 42 | 124 | 60 |
Deferred: | ' | ' | ' |
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 0 | 0 | 0 |
Income tax provision/(benefit) | $42 | $124 | $60 |
Income_Taxes_Reconciliation_of
Income Taxes Reconciliation of Expected Tax Expense (Benefit) to Actual Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Expected tax benefit at statutory rate (35%) | $1,510 | ($3,155) | ($4,083) |
State taxes, net of Federal effect | 13 | 17 | 9 |
Foreign rate differential | -5,465 | -2,416 | -3,532 |
Valuation allowance | 3,962 | 5,362 | 7,065 |
Stock-based compensation | 136 | 402 | 518 |
Other | -114 | -86 | 83 |
Income tax provision/(benefit) | $42 | $124 | $60 |
Income_Taxes_Reconciliation_of1
Income Taxes Reconciliation of Expected Tax Expense (Benefit) to Actual Tax Expense (Benefit) (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax benefit, statutory rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Components_of_Def
Income Taxes Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred assets: | ' | ' |
Net operating loss, capital loss, and tax credit carryforwards | $552,010 | $526,575 |
Fixed assets and intangible assets | 14,260 | 20,802 |
Inventory and other reserves | 4,088 | 4,995 |
Other | 131 | 128 |
Gross deferred tax assets | 570,489 | 552,500 |
Less valuation allowance | -570,489 | -552,500 |
Total net deferred tax assets | $0 | $0 |
Income_Taxes_Open_Tax_Years_fo
Income Taxes Open Tax Years for Major Jurisdictions (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Federal | Minimum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2010 |
Federal | Maximum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2013 |
California and Canada | Minimum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2009 |
California and Canada | Maximum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2013 |
Brazil | Minimum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2008 |
Brazil | Maximum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2013 |
Germany | Minimum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2010 |
Germany | Maximum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2013 |
United Kingdom | Minimum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2009 |
United Kingdom | Maximum | ' |
Income Taxes [Line Items] | ' |
Open tax years | '2013 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
Travel related expenses reimbursed | $0.10 | $0.30 | $0.30 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Rental expenses for leases | $2,000,000 | $2,500,000 | $2,700,000 |
Sublease rental income | ' | 400,000 | 900,000 |
Maximum potential payment under surety bonds | 3,200,000 | ' | ' |
Number of notice days required in advance for cancellation of orders | '30 days | ' | ' |
Amount of non-cancellable purchase commitments outstanding | 4,600,000 | ' | ' |
Gain on patent sales | 0 | 1,000,000 | 0 |
Oakland Campus in connection with sale and leaseback transaction | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Future minimum lease payments | $1,100,000 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies Estimated Future Lease Payments under All Non-Cancelable Operating Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating leases | ' |
2014 | $1,649 |
2015 | 1,310 |
2016 | 429 |
2017 | 34 |
2018 and thereafter | 13 |
Total minimum lease payments | $3,435 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Discretionary contribution made to 401(k) plan | $0 | $0 | $0 |
Enterprise_Wide_Information_Re
Enterprise Wide Information Revenue by Geography (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $32,306 | $31,515 | $30,048 | $28,379 | $28,290 | $29,198 | $30,835 | $27,062 | $122,248 | $115,385 | $124,502 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 38,208 | 47,131 | 48,626 |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 3,398 | 3,763 | 4,190 |
Total North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 41,606 | 50,894 | 52,816 |
Latin America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 27,253 | 27,890 | 32,082 |
Europe, Middle East, Africa | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 49,592 | 34,215 | 38,529 |
Asia Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 3,797 | 2,386 | 1,075 |
Total International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | $80,642 | $64,491 | $71,686 |
Enterprise_Wide_Information_Re1
Enterprise Wide Information Revenue by Products and Services (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $32,306 | $31,515 | $30,048 | $28,379 | $28,290 | $29,198 | $30,835 | $27,062 | $122,248 | $115,385 | $124,502 |
Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 113,979 | 110,267 | 119,443 |
Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | $8,269 | $5,118 | $5,059 |
Quarterly_Information_unaudite2
Quarterly Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net revenue | $32,306 | $31,515 | $30,048 | $28,379 | $28,290 | $29,198 | $30,835 | $27,062 | $122,248 | $115,385 | $124,502 | ||
Gross profit | 12,109 | 11,907 | 11,612 | 10,504 | 10,400 | 8,232 | 9,272 | 8,380 | 46,132 | 36,284 | 43,961 | ||
Operating income (loss) | 1,394 | 1,627 | 1,094 | 333 | [1] | 805 | -4,139 | -2,092 | -3,354 | [2] | 4,448 | -8,780 | -11,736 |
Net income (loss) | $1,432 | $1,596 | $1,056 | $230 | [1] | $699 | ($4,198) | ($2,102) | ($3,414) | [2] | $4,314 | ($9,015) | ($11,726) |
Earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic (in dollar per share) | $0.04 | $0.05 | $0.03 | $0.01 | [1] | $0.02 | ($0.14) | ($0.07) | ($0.11) | [2] | $0.14 | ($0.29) | ($0.38) |
Diluted (in dollar per share) | $0.04 | $0.05 | $0.03 | $0.01 | [1] | $0.02 | ($0.14) | ($0.07) | ($0.11) | [2] | $0.13 | ($0.29) | ($0.38) |
Weighted average shares outstanding used to compute earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic (in shares) | 31,896 | 31,480 | 31,222 | 31,118 | 31,114 | 31,086 | 30,985 | 30,857 | 31,429 | 31,010 | 30,671 | ||
Diluted (in shares) | 34,287 | 33,344 | 32,696 | 31,758 | 31,114 | 31,086 | 30,985 | 30,857 | 33,021 | 31,010 | 30,671 | ||
[1] | Includes a $0.6 million credit as a result of a vendor refund received in 2013 which related to overpayments made in 2012. | ||||||||||||
[2] | Includes a $0.3 million credit as a result of vendor liabilities identified on the consolidated balance sheet where the applicable statute of limitations had expired and thus the Company was no longer legally liable for these amounts. |
Quarterly_Information_unaudite3
Quarterly Information (unaudited) (Parenthetical) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' |
Credit from vendor refund received in 2013 related to overpayment made in 2012 | $0.60 | ' |
Credit from expiration of statute of limitation applicable to vendor liability | ' | $0.30 |