Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZHNE | |
Entity Registrant Name | ZHONE TECHNOLOGIES INC | |
Entity Central Index Key | 1101680 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,626,793 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $11,343 | $11,528 |
Accounts receivable, net of allowances for sales returns and doubtful accounts of $991 as of March 31, 2015 and $1,095 as of December 31, 2014 | 31,892 | 29,916 |
Inventories | 17,250 | 19,985 |
Prepaid expenses and other current assets | 2,705 | 2,863 |
Total current assets | 63,190 | 64,292 |
Property and equipment, net | 1,459 | 1,165 |
Other assets | 255 | 255 |
Total assets | 64,904 | 65,712 |
Current liabilities: | ||
Accounts payable | 11,490 | 11,719 |
Line of credit | 10,000 | 10,000 |
Accrued and other liabilities | 7,586 | 7,669 |
Total current liabilities | 29,076 | 29,388 |
Other long-term liabilities | 1,908 | 1,981 |
Total liabilities | 30,984 | 31,369 |
Stockholders’ equity: | ||
Common stock, $0.001 par value. Authorized 180,000 shares; issued and outstanding 32,626 and 32,506 shares as of March 31, 2015 and December 31, 2014, respectively | 33 | 32 |
Additional paid-in capital | 1,075,576 | 1,075,309 |
Other comprehensive loss | -124 | -35 |
Accumulated deficit | -1,041,565 | -1,040,963 |
Total stockholders’ equity | 33,920 | 34,343 |
Total liabilities and stockholders’ equity | $64,904 | $65,712 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for sales returns and doubtful accounts | $991 | $1,095 |
Common stock, par value | $0.00 | $0.00 |
Common stock, Authorized | 180,000,000 | 180,000,000 |
Common stock, issued | 32,626,000 | 32,506,000 |
Common stock, outstanding | 32,626,000 | 32,506,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net revenue | $27,122 | $28,609 |
Cost of revenue | 16,951 | 17,744 |
Gross profit | 10,171 | 10,865 |
Operating expenses: | ||
Research and product development | 4,050 | 4,143 |
Sales and marketing | 4,382 | 4,678 |
General and administrative | 2,277 | 1,689 |
Total operating expenses | 10,709 | 10,510 |
Operating income (loss) | -538 | 355 |
Interest expense, net | -53 | -16 |
Other income, net | 11 | 6 |
Income (loss) before income taxes | -580 | 345 |
Income tax provision | 22 | 43 |
Net income (loss) | -602 | 302 |
Other comprehensive loss | -89 | -20 |
Comprehensive income (loss) | ($691) | $282 |
Basic and diluted net income (loss) per share | ($0.02) | $0.01 |
Weighted average shares outstanding used to compute basic net income (loss) per share | 32,605 | 32,299 |
Weighted average shares outstanding used to compute diluted net income (loss) per share | 32,605 | 34,826 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | ($602) | $302 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 210 | 90 |
Stock-based compensation | 173 | 59 |
Recovery of sales returns and doubtful accounts | -104 | -210 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -1,872 | 2,934 |
Inventories | 2,735 | 1,673 |
Prepaid expenses and other assets | 158 | 77 |
Accounts payable | -229 | -4,349 |
Accrued and other liabilities | -298 | -716 |
Net cash provided by (used in) operating activities | 171 | -140 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -362 | -31 |
Net cash used in investing activities | -362 | -31 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 95 | 110 |
Net cash provided by financing activities | 95 | 110 |
Effect of exchange rate changes on cash | -89 | -20 |
Net decrease in cash and cash equivalents | -185 | -81 |
Cash and cash equivalents at beginning of period | 11,528 | 15,686 |
Cash and cash equivalents at end of period | $11,343 | $15,605 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [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 operators and enterprises worldwide. The Company’s products provide enterprise solutions that enable both network service providers and enterprises to deliver high speed fiber access, while transporting voice, video and data to the end user. 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 condensed consolidated financial statements are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant inter-company transactions and balances have been eliminated in consolidation. The results of operations for the current interim period are not necessarily indicative of results to be expected for the current year or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014. | ||
(c) | Risks and Uncertainties | |
The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company incurred a net loss of $4.1 million for the year ended December 31, 2014 and a net loss of $0.6 million for the first quarter of 2015, which net losses have continued to reduce cash and cash equivalents. As of March 31, 2015, the Company had approximately $11.3 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. | ||
The Company's financial condition and results of operations could be materially and adversely affected by various factors, 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 in its core and FiberLAN businesses; 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 condensed 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 condensed 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) | Fair Value of Financial Instruments | |
The Company had no financial assets and liabilities as of March 31, 2015 and December 31, 2014 recorded at fair value. The following financial instruments are not measured at fair value on the Company’s condensed consolidated balance sheet as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014 approximated their carrying value as reported on the condensed 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. | ||
(g) | Concentration of Risk | |
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 three months ended March 31, 2015 and 2014, three customers represented 34% and 38% of net revenue, respectively. | ||
Three customers accounted for 53% of net accounts receivable as of March 31, 2015 and December 31, 2014. | ||
As of March 31, 2015 and December 31, 2014, receivables from customers in countries other than the United States represented 85% and 86%, respectively, of net accounts receivable. | ||
(h) | Comprehensive Income (Loss) | |
There have been no items reclassified out of accumulated other comprehensive income (loss) and into net income (loss). The Company’s other comprehensive income (loss) for the three months ended March 31, 2015 and 2014 is comprised of only foreign exchange translations. | ||
(i) Recent Accounting Pronouncements | ||
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | ||
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in financial statements. The new standard is effective for the Company on January 1, 2017. Early application is permitted. The Company is evaluating the effect that ASU 2014-15 will have on its consolidated financial statements and related disclosures. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories as of March 31, 2015 and December 31, 2014 were as follows (in thousands): | ||||||||
March 31, | December 31, 2014 | |||||||
2015 | ||||||||
Raw materials | $ | 11,501 | $ | 12,794 | ||||
Work in process | 1,743 | 2,217 | ||||||
Finished goods | 4,006 | 4,974 | ||||||
$ | 17,250 | $ | 19,985 | |||||
Property_and_Equipment_Net
Property and Equipment, Net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment, Net | Property and Equipment, net | |||||||
Property and equipment, net, as of March 31, 2015 and December 31, 2014 were as follows (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Machinery and equipment | $ | 10,484 | $ | 10,120 | ||||
Computers and acquired software | 4,155 | 4,155 | ||||||
Furniture and fixtures | 263 | 262 | ||||||
Leasehold improvements | 2,191 | 2,066 | ||||||
17,093 | 16,603 | |||||||
Less accumulated depreciation and amortization | (15,634 | ) | (15,438 | ) | ||||
$ | 1,459 | $ | 1,165 | |||||
Depreciation and amortization expense associated with property and equipment amounted to $0.2 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per 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. | ||||||||
The following table is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per share calculation (in thousands, except per share data): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net income (loss): | $ | (602 | ) | $ | 302 | |||
Weighted average number of shares outstanding: | ||||||||
Basic | 32,605 | 32,299 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and share awards | — | 2,527 | ||||||
Diluted | 32,605 | 34,826 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | (0.02 | ) | $ | 0.01 | |||
Diluted | $ | (0.02 | ) | $ | 0.01 | |||
The following tables set forth potential common stock that is not included in the diluted net income (loss) per share calculation because their effect would be antidilutive for the periods indicated (in thousands, except exercise price per share data): | ||||||||
Three Months Ended | Weighted | |||||||
March 31, 2015 | Average | |||||||
Exercise | ||||||||
Price | ||||||||
Outstanding stock options and unvested restricted shares | 5,618 | $ | 1.86 | |||||
Three Months Ended | Weighted | |||||||
31-Mar-14 | Average | |||||||
Exercise | ||||||||
Price | ||||||||
Warrants | 3 | $ | 32.45 | |||||
Outstanding stock options and unvested restricted shares | 1,730 | $ | 1.26 | |||||
1,733 | ||||||||
Debt
Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
As of March 31, 2015, 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 and inventory, 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. At March 31, 2015, the Company's borrowing base was $13.4 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 March 31, 2015 under its WFB Facility. In addition, $3.0 million was committed as security for letters of credit. The Company had $0.4 million of borrowing availability under the WFB Facility as of March 31, 2015. 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 3.27% at March 31, 2015. | |
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 March 31, 2015, the Company was in compliance with these covenants. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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: | ||||||||
2015 (remainder of the year) | $ | 1,094 | ||||||
2016 | 522 | |||||||
2017 | 119 | |||||||
Total minimum lease payments | $ | 1,735 | ||||||
Warranties | ||||||||
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 reconciles changes in the Company’s accrued warranties and related costs for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Beginning balance | $ | 952 | $ | 1,265 | ||||
Charged to cost of revenue | 171 | 157 | ||||||
Claims and settlements | (161 | ) | (190 | ) | ||||
Ending balance | $ | 962 | $ | 1,232 | ||||
Performance Bonds | ||||||||
In the normal course of operations, from time to time, 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 $0.4 million as of March 31, 2015. | ||||||||
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 $5.9 million as of March 31, 2015. | ||||||||
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. | ||||||||
Legal Proceedings | ||||||||
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. |
EnterpriseWide_Information
Enterprise-Wide Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue by Geography: | ||||||||
United States | $ | 9,124 | $ | 9,358 | ||||
Canada | 1,038 | 628 | ||||||
Total North America | 10,162 | 9,986 | ||||||
Latin America | 6,297 | 4,999 | ||||||
Europe, Middle East, Africa | 9,220 | 13,020 | ||||||
Asia Pacific | 1,443 | 604 | ||||||
Total International | 16,960 | 18,623 | ||||||
$ | 27,122 | $ | 28,609 | |||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue by Products and Services: | ||||||||
Products | $ | 25,570 | $ | 26,828 | ||||
Services | 1,552 | 1,781 | ||||||
Total | $ | 27,122 | $ | 28,609 | ||||
Income_Taxes
Income Taxes | 3 Months Ended | ||
Mar. 31, 2015 | |||
Income Tax Disclosure [Abstract] | |||
Income Taxes | Income Taxes | ||
The total amount of unrecognized tax benefits, including interest and penalties, at March 31, 2015 was not material. The amount of tax benefits that would impact the effective income tax rate, if recognized, is not expected to be material. There were no significant changes to unrecognized tax benefits during the quarters ended March 31, 2015 and 2014. The Company does not anticipate any significant changes with respect to unrecognized tax benefits within the next 12 months. | |||
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 | 2011 –2014 | ||
• California and Canada | 2010 – 2014 | ||
• Brazil | 2009 – 2014 | ||
• Germany | 2007 – 2014 | ||
• United Kingdom | 2010 – 2014 | ||
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. | |||
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. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The condensed consolidated financial statements are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant inter-company transactions and balances have been eliminated in consolidation. The results of operations for the current interim period are not necessarily indicative of results to be expected for the current year or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014. | |
Use of Estimates | Use of Estimates |
The preparation of the condensed 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 condensed 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. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
The Company had no financial assets and liabilities as of March 31, 2015 and December 31, 2014 recorded at fair value. The following financial instruments are not measured at fair value on the Company’s condensed consolidated balance sheet as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014 approximated their carrying value as reported on the condensed 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. | |
Concentration of Risk | Concentration of Risk |
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. | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) |
There have been no items reclassified out of accumulated other comprehensive income (loss) and into net income (loss). The Company’s other comprehensive income (loss) for the three months ended March 31, 2015 and 2014 is comprised of only foreign exchange translations. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in financial statements. The new standard is effective for the Company on January 1, 2017. Early application is permitted. The Company is evaluating the effect that ASU 2014-15 will have on its consolidated financial statements and related disclosures. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories as of March 31, 2015 and December 31, 2014 were as follows (in thousands): | |||||||
March 31, | December 31, 2014 | |||||||
2015 | ||||||||
Raw materials | $ | 11,501 | $ | 12,794 | ||||
Work in process | 1,743 | 2,217 | ||||||
Finished goods | 4,006 | 4,974 | ||||||
$ | 17,250 | $ | 19,985 | |||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment, Net | Property and equipment, net, as of March 31, 2015 and December 31, 2014 were as follows (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Machinery and equipment | $ | 10,484 | $ | 10,120 | ||||
Computers and acquired software | 4,155 | 4,155 | ||||||
Furniture and fixtures | 263 | 262 | ||||||
Leasehold improvements | 2,191 | 2,066 | ||||||
17,093 | 16,603 | |||||||
Less accumulated depreciation and amortization | (15,634 | ) | (15,438 | ) | ||||
$ | 1,459 | $ | 1,165 | |||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Reconciliation of Numerator and Denominator of Basic and Diluted Net Income (Loss) Per Share | The following table is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per share calculation (in thousands, except per share data): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net income (loss): | $ | (602 | ) | $ | 302 | |||
Weighted average number of shares outstanding: | ||||||||
Basic | 32,605 | 32,299 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and share awards | — | 2,527 | ||||||
Diluted | 32,605 | 34,826 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | (0.02 | ) | $ | 0.01 | |||
Diluted | $ | (0.02 | ) | $ | 0.01 | |||
Potential Common Stock not Included in Diluted Net Income (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 because their effect would be antidilutive for the periods indicated (in thousands, except exercise price per share data): | |||||||
Three Months Ended | Weighted | |||||||
March 31, 2015 | Average | |||||||
Exercise | ||||||||
Price | ||||||||
Outstanding stock options and unvested restricted shares | 5,618 | $ | 1.86 | |||||
Three Months Ended | Weighted | |||||||
31-Mar-14 | Average | |||||||
Exercise | ||||||||
Price | ||||||||
Warrants | 3 | $ | 32.45 | |||||
Outstanding stock options and unvested restricted shares | 1,730 | $ | 1.26 | |||||
1,733 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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: | ||||||||
2015 (remainder of the year) | $ | 1,094 | ||||||
2016 | 522 | |||||||
2017 | 119 | |||||||
Total minimum lease payments | $ | 1,735 | ||||||
Reconciliation of Changes in Accrued Warranties and Related Costs | The following table reconciles changes in the Company’s accrued warranties and related costs for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Beginning balance | $ | 952 | $ | 1,265 | ||||
Charged to cost of revenue | 171 | 157 | ||||||
Claims and settlements | (161 | ) | (190 | ) | ||||
Ending balance | $ | 962 | $ | 1,232 | ||||
EnterpriseWide_Information_Tab
Enterprise-Wide Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Revenue by Geography | The following summarizes required disclosures about geographic concentrations and revenue by products and services (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue by Geography: | ||||||||
United States | $ | 9,124 | $ | 9,358 | ||||
Canada | 1,038 | 628 | ||||||
Total North America | 10,162 | 9,986 | ||||||
Latin America | 6,297 | 4,999 | ||||||
Europe, Middle East, Africa | 9,220 | 13,020 | ||||||
Asia Pacific | 1,443 | 604 | ||||||
Total International | 16,960 | 18,623 | ||||||
$ | 27,122 | $ | 28,609 | |||||
Revenue by Products and Services | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue by Products and Services: | ||||||||
Products | $ | 25,570 | $ | 26,828 | ||||
Services | 1,552 | 1,781 | ||||||
Total | $ | 27,122 | $ | 28,609 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Income Tax Disclosure [Abstract] | |||
Open Tax Years for Major Jurisdictions | 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 | 2011 –2014 | ||
• California and Canada | 2010 – 2014 | ||
• Brazil | 2009 – 2014 | ||
• Germany | 2007 – 2014 | ||
• United Kingdom | 2010 – 2014 |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Significant Accounting Policies [Line Items] | ||||
Net income (loss) | ($602) | $302 | ($4,100) | |
Cash and cash equivalents | 11,343 | 15,605 | 11,528 | 15,686 |
Line of credit | $10,000 | $10,000 | ||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Extended product warranty, term | 1 year | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Extended product warranty, term | 5 years | |||
Net Revenue | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customers | 3 | 3 | ||
Net Revenue | Customer Concentration Risk | Three major customers | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of net revenue | 34.00% | 38.00% | ||
Accounts Receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customers | 3 | 3 | ||
Accounts Receivable | Customer Concentration Risk | Three major customers | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of net revenue | 53.00% | 53.00% | ||
Other than the United States | Accounts Receivable | Geographic Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of net revenue | 85.00% | 86.00% |
Inventories_Detail
Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $11,501 | $12,794 |
Work in process | 1,743 | 2,217 |
Finished goods | 4,006 | 4,974 |
Inventories | $17,250 | $19,985 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Machinery and equipment | $10,484 | $10,120 |
Computers and acquired software | 4,155 | 4,155 |
Furniture and fixtures | 263 | 262 |
Leasehold improvements | 2,191 | 2,066 |
Property and equipment, Gross, Total | 17,093 | 16,603 |
Less accumulated depreciation and amortization | -15,634 | -15,438 |
Property and equipment, net | $1,459 | $1,165 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization associated with property and equipment | $210 | $90 |
Net_Income_Loss_Per_Share_Reco
Net Income (Loss) Per Share - Reconciliation of Numerator and Denominator of Basic and Diluted Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Earnings Per Share [Abstract] | |||
Net income (loss): | ($602) | $302 | ($4,100) |
Weighted average number of shares outstanding: | |||
Basic, in shares | 32,605 | 32,299 | |
Effect of dilutive securities: | |||
Stock options and share awards | 0 | 2,527 | |
Diluted, in shares | 32,605 | 34,826 | |
Basic, in dollars per share | ($0.02) | $0.01 | |
Diluted, in dollars per share | ($0.02) | $0.01 |
Net_Income_Loss_Per_Share_Pote
Net Income (Loss) Per Share - Potential Common Stock not Included in Diluted Net Income (Loss) Per Share Calculation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of loss per share calculation, shares | 1,733 | |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of loss per share calculation, shares | 3 | |
Weighted average exercise price of warrants | $32.45 | |
Outstanding stock options and unvested restricted shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of loss per share calculation, shares | 5,618 | 1,730 |
Weighted average exercise price of outstanding stock options and unvested restricted shares | $1.86 | $1.26 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
WFB credit facility, maximum borrowing capacity | $25,000,000 |
WFB credit facility, current borrowing base | 13,400,000 |
WFB credit facility, commitment fee on unused capacity, percentage | 0.25% |
WFB credit facility, commitment as security for various letters of credit | 3,000,000 |
WFB credit facility, outstanding amount | 10,000,000 |
WFB credit facility, unused borrowing availability | $400,000 |
Line of credit, marginal floating rate over three-months LIBOR rate | 3.00% |
WFB credit facility, interest rate | 3.27% |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Guarantor Obligations [Line Items] | |
Product warranty period from the date of shipment | 1 year |
Number of notice days required to notice in advance for cancellation of orders | 30 days |
Amount of non-cancellable purchase commitments outstanding | $5.90 |
Surety Bond | |
Guarantor Obligations [Line Items] | |
Maximum potential payment under surety bonds | $0.40 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Estimated Future Lease Payments under All Non-Cancelable Operating Leases (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Operating leases | |
2015 (remainder of the year) | $1,094 |
2016 | 522 |
2017 | 119 |
Total minimum lease payments | $1,735 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Reconciliation of Changes in Accrued Warranties and Related Costs (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $952 | $1,265 |
Charged to cost of revenue | 171 | 157 |
Claims and settlements | -161 | -190 |
Ending balance | $962 | $1,232 |
EnterpriseWide_Information_Rev
Enterprise-Wide Information - Revenue by Geography (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Net revenue | $27,122 | $28,609 |
United States | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 9,124 | 9,358 |
Canada | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 1,038 | 628 |
Total North America | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 10,162 | 9,986 |
Latin America | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 6,297 | 4,999 |
Europe, Middle East, Africa | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 9,220 | 13,020 |
Asia Pacific | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 1,443 | 604 |
Total International | ||
Revenue from External Customer [Line Items] | ||
Net revenue | $16,960 | $18,623 |
EnterpriseWide_Information_Rev1
Enterprise-Wide Information - Revenue by Products and Services (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Net revenue | $27,122 | $28,609 |
Products | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 25,570 | 26,828 |
Services | ||
Revenue from External Customer [Line Items] | ||
Net revenue | $1,552 | $1,781 |
Income_Taxes_Detail
Income Taxes (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Federal | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2011 |
Federal | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2014 |
California and Canada | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2010 |
California and Canada | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2014 |
Brazil | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2009 |
Brazil | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2014 |
Germany | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2007 |
Germany | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2014 |
United Kingdom | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2010 |
United Kingdom | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2014 |