Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2013 | Oct. 18, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'SONUS NETWORKS INC | ' |
Entity Central Index Key | '0001105472 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 273,495,101 |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $72,385 | $88,004 |
Marketable securities | 128,177 | 161,905 |
Accounts receivable, net of allowance for doubtful accounts of $364 at September 27, 2013 and $0 at December 31, 2012 | 52,479 | 68,728 |
Inventory | 22,058 | 25,614 |
Deferred income taxes | 632 | 686 |
Other current assets | 14,450 | 16,520 |
Total current assets | 290,181 | 361,457 |
Property and equipment, net | 18,756 | 23,767 |
Intangible assets, net | 11,177 | 15,237 |
Goodwill | 32,379 | 32,379 |
Investments | 66,889 | 29,698 |
Deferred income taxes | 954 | 1,011 |
Other assets | 7,616 | 7,191 |
Total assets | 427,952 | 470,740 |
Current liabilities: | ' | ' |
Accounts payable | 16,001 | 10,643 |
Accrued expenses | 25,967 | 26,212 |
Current portion of deferred revenue | 36,556 | 37,094 |
Current portion of long-term liabilities | 572 | 763 |
Total current liabilities | 79,096 | 74,712 |
Deferred revenue | 10,322 | 11,647 |
Deferred income taxes | 790 | 249 |
Convertible subordinated note | 2,380 | 2,380 |
Other long-term liabilities | 4,689 | 5,706 |
Total liabilities | 97,277 | 94,694 |
Commitments and contingencies (Note 16) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share; 5,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value per share; 600,000,000 shares authorized; 273,305,861 shares issued and outstanding at September 27, 2013; 280,963,298 shares issued and outstanding at December 31, 2012 | 273 | 281 |
Additional paid-in capital | 1,299,029 | 1,321,385 |
Accumulated deficit | -974,764 | -952,373 |
Accumulated other comprehensive income | 6,137 | 6,753 |
Total stockholders' equity | 330,675 | 376,046 |
Total liabilities and stockholders' equity | $427,952 | $470,740 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $364 | $0 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 273,305,861 | 280,963,298 |
Common stock, shares outstanding | 273,305,861 | 280,963,298 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Revenue: | ' | ' | ' | ' |
Product | $40,712 | $33,520 | $121,447 | $107,517 |
Service | 27,387 | 23,529 | 79,133 | 71,481 |
Total revenue | 68,099 | 57,049 | 200,580 | 178,998 |
Cost of revenue: | ' | ' | ' | ' |
Product | 15,415 | 11,768 | 42,844 | 31,988 |
Service | 10,420 | 12,839 | 33,662 | 40,019 |
Total cost of revenue | 25,835 | 24,607 | 76,506 | 72,007 |
Gross profit | 42,264 | 32,442 | 124,074 | 106,991 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 16,566 | 15,612 | 52,086 | 51,094 |
Sales and marketing | 18,291 | 17,613 | 58,596 | 56,339 |
General and administrative | 9,178 | 7,939 | 29,621 | 25,302 |
Acquisition-related | 0 | 4,090 | 0 | 5,057 |
Restructuring | 1,140 | 1,992 | 4,787 | 1,992 |
Total operating expenses | 45,175 | 47,246 | 145,090 | 139,784 |
Loss from operations | -2,911 | -14,804 | -21,016 | -32,793 |
Interest income, net | 61 | 20 | 289 | 457 |
Other income, net | -1 | -2 | 2 | -2 |
Loss before income taxes | -2,851 | -14,786 | -20,725 | -32,338 |
Income tax provision | -922 | -833 | -1,666 | -1,444 |
Net loss | ($3,773) | ($15,619) | ($22,391) | ($33,782) |
Loss per share | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.01) | ($0.06) | ($0.08) | ($0.12) |
Diluted (in dollars per share) | ($0.01) | ($0.06) | ($0.08) | ($0.12) |
Shares used to compute loss per share: | ' | ' | ' | ' |
Basic (in shares) | 279,209 | 280,145 | 281,041 | 279,854 |
Diluted (in shares) | 279,209 | 280,145 | 281,041 | 279,854 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($3,773) | ($15,619) | ($22,391) | ($33,782) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -77 | 119 | -532 | -76 |
Unrealized gain (loss) on available-for sale marketable securities, net of tax | 188 | 127 | -84 | 24 |
Other comprehensive income (loss), net of tax | 111 | 246 | -616 | -52 |
Comprehensive loss, net of tax | ($3,662) | ($15,373) | ($23,007) | ($33,834) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($22,391) | ($33,782) |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities: | ' | ' |
Depreciation and amortization of property and equipment | 9,591 | 9,081 |
Amortization of intangible assets | 3,460 | 904 |
Impairment of intangible assets | 600 | 0 |
Stock-based compensation | 13,137 | 6,540 |
Loss on disposal of property and equipment | 23 | 23 |
Deferred income taxes | 541 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 15,744 | 13,020 |
Inventory | 3,294 | -3,868 |
Other operating assets | 5,126 | -4,998 |
Accounts payable | 5,134 | -1,753 |
Accrued expenses and other long-term liabilities | -2,061 | -3,625 |
Deferred revenue | -1,664 | -9,624 |
Net cash provided by (used in) operating activities | 30,534 | -28,082 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -4,498 | -7,792 |
Business acquisition, net of cash acquired | 0 | -35,508 |
Purchases of marketable securities | -182,534 | -139,917 |
Maturities of marketable securities | 175,887 | 200,380 |
Net cash (used in) provided by investing activities | -11,145 | 17,163 |
Cash flows from financing activities: | ' | ' |
Proceeds from sale of common stock in connection with employee stock purchase plan | 1,888 | 1,693 |
Proceeds from exercise of stock options | 2,393 | 151 |
Payment of tax withholding obligations related to net share settlements of restricted stock awards | -1,240 | -169 |
Repurchase of common stock | -37,340 | 0 |
Principal payments of capital lease obligations | -91 | -87 |
Settlement of redeemable convertible subordinated debentures | 0 | 23,704 |
Net cash used in financing activities | -34,390 | -22,116 |
Effect of exchange rate changes on cash and cash equivalents | -618 | 192 |
Net decrease in cash and cash equivalents | -15,619 | -32,843 |
Cash and cash equivalents, beginning of year | 88,004 | 105,451 |
Cash and cash equivalents, end of period | 72,385 | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | 49 | 638 |
Income taxes paid | 1,391 | 1,958 |
Income tax refunds received | 117 | 42 |
Supplemental disclosure of non-cash investing activities: | ' | ' |
Capital expenditures incurred, but not yet paid | 467 | 861 |
Property and equipment acquired under operating lease | 0 | 40 |
Business acquisition purchase consideration - assumed equity awards | $0 | $892 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Business | |
Sonus Networks, Inc. (“Sonus” or the “Company”) was incorporated in 1997 and is a leading provider of networked solutions for communications service providers (e.g., telecommunications, wireless and cable service providers) and enterprises to help them advance, protect and unify their communications and improve collaboration. Sonus' products include session border controllers, Session Initiation Protocol ("SIP") session management servers, Voice over IP ("VoIP"), switches, SIP application servers, multiprotocol signaling gateways and network analytics tools. Sonus' solutions address the need for communications service providers and enterprises to seamlessly link and leverage multivendor, multiprotocol communications systems and applications across their networks, around the world and in a rapidly changing ecosystem of IP-enabled devices such as smartphones and tablets. | |
The Company's target customers comprise both communications service providers and enterprises utilizing both direct and indirect sales channels. Customers and prospective customers in the service provider space are traditional and emerging communications providers, including long distance carriers, local exchange carriers, Internet service providers, wireless operators, cable operators, international telephone companies and carriers that provide services to other carriers. Enterprise customers and target enterprise customers include financial institutions, retailers, state and local governments, and other multinational corporations. The Company collaborates with its customers to identify and develop new, advanced services and applications that can help to reduce costs, improve productivity and generate new revenue. | |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). | |
Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2012 ("Annual Report") filed with the SEC on March 6, 2013. | |
On August 24, 2012, the Company completed the acquisition of Network Equipment Technologies, Inc. (“NET”). The financial results of NET are included in the Company's condensed consolidated financial statements for the three and nine months ended September 27, 2013 and for the three and nine months ended September 28, 2012 for the period subsequent to August 24, 2012. | |
The Company reported acquisition-related expenses of approximately $967,000 as a component of general and administrative expenses in its Quarterly Report on Form 10-Q for the quarter ended June 29, 2012. The Company is now separately reporting this amount as acquisition-related expenses in the condensed statements of operations included herein. | |
Significant Accounting Policies | |
The Company's significant accounting policies are disclosed in Note 2 to the Consolidated Financial Statements included in the Company's Annual Report. There were no material changes to the significant accounting policies during the three or nine months ended September 27, 2013. | |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates and Judgments | |
The preparation of financial statements in conformity with GAAP 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these consolidated financial statements include accounting for business combinations, revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation, intangible assets and goodwill valuations, including impairments, legal contingencies and recoverability of Sonus' net deferred tax assets and the related valuation allowances. Sonus regularly assesses these estimates and records changes in estimates in the period in which they become known. Sonus bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | |
The carrying amounts of the Company's financial instruments, which include cash equivalents, marketable securities, investments, accounts receivable, accounts payable, convertible subordinated debt and other long-term liabilities, approximate their fair values. | |
Operating Segments | |
The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, the chief operating decision maker has made such decisions and assessed performance at the company level, as one segment. The Company's chief operating decision maker is its President and Chief Executive Officer. | |
Recent Accounting Pronouncements | |
On July 18, 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, Presentation of a Liability for an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists ("ASU 2013-11"), which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss ("NOL") carryforward, a similar tax loss or a tax credit carryforward exists. The FASB's objective in issuing ASU 2013-11 is to eliminate diversity in practice resulting from a lack of guidance on this topic in current GAAP. ASU 2013-11 requires that an entity present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss or a tax credit unless certain conditions exist. ASU 2013-11 is effective for the Company beginning January 1, 2014. The Company does not expect the adoption of ASU 2013-11 to have an impact on its consolidated financial statements, as the Company currently applies the methodology prescribed by ASU 2013-11. | |
On March 4, 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830) - Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity ("ASU 2013-05"), which indicates that the entire amount of a cumulative translation adjustment ("CTA") related to an entity's investment in a foreign entity should be released when there has been either: (a) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in a foreign entity; (b) the loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated); or (c) the step acquisition of a foreign entity (i.e., when the accounting for an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). ASU 2013-05 does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. ASU 2013-05 is effective for the Company beginning January 1, 2014, although early adoption is permitted. The Company does not expect the adoption of ASU 2013-05 to have a material impact on its consolidated financial statements. | |
On February 5, 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"), which requires entities to disclose changes in accumulated other comprehensive income balances by component (i.e., unrealized gains or losses on available-for-sale securities or foreign-currency items) and significant items reclassified out of accumulated other comprehensive income by component either on the face of the income statement or as a separate footnote to the financial statements. ASU 2013-02 does not change the current requirements for interim financial statement reporting of comprehensive income. ASU 2013-02 became effective for the Company on January 1, 2013. The Company does not have significant items reclassified out of accumulated other comprehensive income and accordingly, the adoption of ASU 2013-02 did not impact the Company's condensed consolidated financial statements. |
ACQUISITION_OF_NET
ACQUISITION OF NET | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
ACQUISITION OF NET | ' | |||||||
ACQUISITION OF NET | ||||||||
On August 24, 2012 (the “NET Acquisition Date”), the Company acquired all of the outstanding common stock of NET for cash consideration of $41.5 million, or $1.35 per share of NET common stock. The acquisition was effected through a merger of a wholly-owned subsidiary of the Company into NET, with NET surviving the merger as a wholly-owned subsidiary of the Company. NET is a provider of networking equipment focused on secure real-time communications for Unified Communications ("UC"), SIP trunking, enterprise mobility and IP-based multi-service networking. The Company acquired NET to enhance its position as an enabler of cloud-based UC. The acquisition of NET expands the Company's portfolio of Session Border Controller (“SBC”) solutions for enterprise customers and brings engineering resources, broader channel capability and a broad U.S. federal government installed base to leverage into SIP-enabled platforms. | ||||||||
As of August 24, 2013, the valuation of acquired assets, identifiable intangible assets, uncertain tax liabilities and certain accrued liabilities had been finalized. Based on new information gathered about facts and circumstances that existed as of the NET Acquisition Date related to the valuation of certain acquired assets and assumed liabilities, the Company finalized its valuations of assets acquired and liabilities assumed. The Company recorded retrospective adjustments as of December 31, 2012, which resulted in a net decrease to goodwill of $1.4 million, a net increase to other current assets of $0.9 million and a net decrease to current liabilities of $0.5 million as set forth in the table below. The adjustments have been retrospectively applied to the December 31, 2012 balance sheet; however, these adjustments had no impact on either the condensed consolidated statements of operations or the condensed consolidated statements of cash flows. | ||||||||
During the second quarter of fiscal 2013, the Company made an election under Section 338(g) of the Internal Revenue Code to have the NET transaction treated as an asset acquisition (i.e., a taxable transaction) with the goodwill being deductible for tax purposes over 15 years. | ||||||||
A summary of the allocation of the purchase consideration for NET is as follows (in thousands): | ||||||||
Fair value of consideration transferred: | ||||||||
Cash, net of cash acquired | $ | 35,508 | ||||||
Fair value of equity awards assumed | 892 | |||||||
Fair value of total consideration | $ | 36,400 | ||||||
Fair value of assets acquired and liabilities assumed: | ||||||||
Marketable securities | $ | 5,359 | ||||||
Deferred income taxes | 681 | |||||||
Other current assets | 13,388 | |||||||
Property and equipment | 4,694 | |||||||
Noncurrent investments | 10,167 | |||||||
Intangible assets | 16,810 | |||||||
Goodwill | 27,317 | |||||||
Other noncurrent assets | 1,843 | |||||||
Current liabilities | (9,350 | ) | ||||||
Debt | (34,208 | ) | ||||||
Other long-term liabilities | (301 | ) | ||||||
$ | 36,400 | |||||||
The valuation of the acquired intangible assets is inherently subjective and relies on significant unobservable inputs. The Company used an income approach to value the acquired customer relationships and developed technology intangible assets. The valuation for each of these intangible assets was based on estimated projections of expected cash flows to be generated by the assets, discounted to the present value at discount rates commensurate with perceived risk. The valuation assumptions take into consideration the Company's estimates of contract renewal, technology attrition and revenue growth projections. The Company is amortizing the identifiable intangible assets in relation to the expected cash flows from the individual intangible assets over their respective useful lives (see Note 6). | ||||||||
Pro Forma Results | ||||||||
The following unaudited pro forma information presents the condensed combined results of operations of the Company and NET for the three and nine months ended September 28, 2012 as if the acquisition of NET had been completed on January 1, 2011, with adjustments to give effect to pro forma events that are directly attributable to the acquisition. These pro forma adjustments include a reduction to historical NET revenue for the fair value adjustment related to assumed deferred revenue, an increase in amortization expense for the acquired identifiable intangible assets and decreases in historical NET interest expense and the Company's historical interest income reflecting the extinguishment of certain of NET's debt as a result of the acquisition. Subsequent to the filing of the Company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2012, the Company refined the amounts and attribution of certain expenses related to the acquisition and the related purchase accounting and accordingly, the pro forma information below has been revised. | ||||||||
The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of the Company and NET. Accordingly, these unaudited pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the combined companies that would have been achieved had the acquisition occurred as of January 1, 2011, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amount): | ||||||||
Three months ended | Nine months ended | |||||||
September 28, 2012 | September 28, 2012 | |||||||
Revenue | $ | 63,369 | $ | 207,878 | ||||
Net loss | $ | (13,496 | ) | $ | (48,765 | ) | ||
Loss per share | $ | (0.05 | ) | $ | (0.17 | ) | ||
Acquisition-Related Expenses | ||||||||
Acquisition-related expenses include those expenses related to the acquisition that would otherwise not have been incurred by the Company. These expenses include professional and services fees, such as legal, audit, consulting, paying agent and other fees, and expenses related to cash payments to former NET executives under their NET change of control agreements. | ||||||||
The components of acquisition-related costs included in the Company's results of operations for the three and nine months ended September 28, 2012 are as follows (in thousands): | ||||||||
Three months ended | Nine months ended | |||||||
September 28, 2012 | September 28, 2012 | |||||||
Professional and services fees | $ | 2,048 | $ | 3,015 | ||||
Change of control agreements | 2,042 | 2,042 | ||||||
$ | 4,090 | $ | 5,057 | |||||
The Company did not record any acquisition-related expenses in either the three or nine months ended September 27, 2013. |
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
EARNINGS (LOSS) PER SHARE | ' | |||||||||||
EARNINGS (LOSS) PER SHARE | ||||||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by using the weighted average number of common and dilutive common equivalent shares outstanding during the period unless the effect is antidilutive. | ||||||||||||
The calculations of shares used to compute basic and diluted loss per share are as follows (in thousands): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average shares outstanding—basic | 279,209 | 280,145 | 281,041 | 279,854 | ||||||||
Potential dilutive common shares | — | — | — | — | ||||||||
Weighted average shares outstanding—diluted | 279,209 | 280,145 | 281,041 | 279,854 | ||||||||
Options to purchase the Company's common stock, unvested shares of restricted stock and unvested performance-based stock awards for which the performance conditions have been satisfied aggregating 35.9 million shares for the three and nine months ended September 27, 2013 have not been included in the computation of diluted loss per share because their effect would have been antidilutive. Options to purchase the Company's common stock and unvested shares of restricted stock aggregating 27.2 million shares for the three and nine months ended September 28, 2012 have not been included in the computation of diluted loss per share because their effect would have been antidilutive. |
CASH_EQUIVALENTS_MARKETABLE_SE
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | ' | |||||||||||||||
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | ||||||||||||||||
The Company invests in debt and equity instruments, primarily U.S. government-backed, municipal and corporate obligations, which management believes to be high quality (investment grade) credit instruments. | ||||||||||||||||
During the nine months ended September 27, 2013 and September 28, 2012, the Company did not sell any of its available-for-sale securities and accordingly, no such gains or losses were realized. | ||||||||||||||||
Marketable securities and investments with continuous unrealized losses for one year or greater at September 27, 2013 were nominal. Since the Company does not intend to sell these securities and does not believe it will be required to sell any securities before they recover in value, it does not believe these declines are other-than-temporary. | ||||||||||||||||
On a quarterly basis, the Company reviews its marketable securities and investments to determine if there have been any events that could create a credit impairment. The increase in unrealized losses in the current year period primarily relates to the recent increase in interest rates. However, since the Company's entire investment portfolio has investment grade ratings with no indication of credit loss, the Company believes it will recover the entire amortized cost basis of these securities and does not believe these unrealized losses are other-than-temporary. Accordingly, the Company does not believe that any impairment existed with its current holdings at September 27, 2013. | ||||||||||||||||
The amortized cost, gross unrealized gains and losses and fair value of the Company's marketable debt and equity securities and investments at September 27, 2013 and December 31, 2012 were comprised of the following (in thousands): | ||||||||||||||||
27-Sep-13 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 33,110 | $ | — | $ | — | $ | 33,110 | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,606 | $ | 30 | $ | — | $ | 47,636 | ||||||||
Corporate debt securities | 65,241 | 24 | (20 | ) | 65,245 | |||||||||||
Commercial paper | 11,240 | 4 | — | 11,244 | ||||||||||||
Certificates of deposit | 4,050 | 3 | (1 | ) | 4,052 | |||||||||||
$ | 128,137 | $ | 61 | $ | (21 | ) | $ | 128,177 | ||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 20,471 | $ | 8 | $ | (3 | ) | $ | 20,476 | |||||||
Foreign government notes | 1,250 | — | (1 | ) | 1,249 | |||||||||||
Corporate debt securities | 45,188 | 16 | (40 | ) | 45,164 | |||||||||||
$ | 66,909 | $ | 24 | $ | (44 | ) | $ | 66,889 | ||||||||
31-Dec-12 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 69,389 | $ | — | $ | — | $ | 69,389 | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 53,646 | $ | 22 | $ | — | $ | 53,668 | ||||||||
Foreign government notes | 2,000 | 1 | — | 2,001 | ||||||||||||
Corporate debt securities | 84,047 | 34 | (5 | ) | 84,076 | |||||||||||
Commercial paper | 7,492 | 5 | — | 7,497 | ||||||||||||
Certificates of deposit | 14,650 | 13 | — | 14,663 | ||||||||||||
$ | 161,835 | $ | 75 | $ | (5 | ) | $ | 161,905 | ||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 19,358 | $ | 20 | $ | — | $ | 19,378 | ||||||||
Corporate debt securities | 10,306 | 20 | (6 | ) | 10,320 | |||||||||||
$ | 29,664 | $ | 40 | $ | (6 | ) | $ | 29,698 | ||||||||
The Company's available-for-sale debt securities that are classified as Investments in the condensed consolidated balance sheet mature after one year but within two years or less from the balance sheet date. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tier fair value hierarchy is based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: | ||||||||||||||||
Level 1. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2. Level 2 applies to assets or liabilities for which there are inputs that are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). | ||||||||||||||||
Level 3. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||||||||||||
The following table shows the fair value of the Company's financial assets at September 27, 2013 and December 31, 2012. These financial assets are comprised of the Company's available-for-sale debt and equity securities and reported under the captions Cash and cash equivalents, Marketable securities and Investments in the consolidated balance sheets (in thousands): | ||||||||||||||||
Fair value measurements at | ||||||||||||||||
September 27, 2013 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
September 27, | markets | inputs | inputs | |||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 33,110 | $ | 33,110 | $ | — | $ | — | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,636 | $ | — | $ | 47,636 | $ | — | ||||||||
Corporate debt securities | 65,245 | — | 65,245 | — | ||||||||||||
Commercial paper | 11,244 | — | 11,244 | — | ||||||||||||
Certificates of deposit | 4,052 | — | 4,052 | — | ||||||||||||
$ | 128,177 | $ | — | $ | 128,177 | $ | — | |||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 20,476 | $ | — | $ | 20,476 | $ | — | ||||||||
Foreign government notes | 1,249 | — | 1,249 | — | ||||||||||||
Corporate debt securities | 45,164 | — | 45,164 | — | ||||||||||||
$ | 66,889 | $ | — | $ | 66,889 | $ | — | |||||||||
Fair value measurements at | ||||||||||||||||
December 31, 2012 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
December 31, | markets | inputs | inputs | |||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 69,389 | $ | 68,389 | $ | 1,000 | $ | — | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 53,668 | $ | — | $ | 53,668 | $ | — | ||||||||
Foreign government notes | 2,001 | — | 2,001 | — | ||||||||||||
Corporate debt securities | 84,076 | — | 84,076 | — | ||||||||||||
Commercial paper | 7,497 | — | 7,497 | — | ||||||||||||
Certificates of deposit | 14,663 | — | 14,663 | — | ||||||||||||
$ | 161,905 | $ | — | $ | 161,905 | $ | — | |||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 19,378 | $ | — | $ | 19,378 | $ | — | ||||||||
Corporate debt securities | 10,320 | — | 10,320 | — | ||||||||||||
$ | 29,698 | $ | — | $ | 29,698 | $ | — | |||||||||
The Company's marketable securities and investments have been valued on the basis of valuations provided by third-party pricing services, as derived from such services' pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. The Company is ultimately responsible for the condensed consolidated financial statements and underlying estimates. Accordingly, the Company assesses the reasonableness of the valuations provided by the third-party pricing services by reviewing actual trade data, broker/dealer quotes and other similar data, which are obtained from quoted market prices or other sources. |
INVENTORY
INVENTORY | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
INVENTORY | ||||||||
Inventory consists of the following (in thousands): | ||||||||
September 27, | December 31, | |||||||
2013 | 2012 | |||||||
On-hand final assemblies and finished goods inventories | $ | 18,895 | $ | 22,009 | ||||
Deferred cost of goods sold | 5,420 | 5,704 | ||||||
24,315 | 27,713 | |||||||
Less current portion | (22,058 | ) | (25,614 | ) | ||||
Noncurrent portion (included in Other assets) | $ | 2,257 | $ | 2,099 | ||||
INTANGIBLE_ASSETS_AND_GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 9 Months Ended | |||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | ' | |||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | ||||||||||||||||||
The Company's intangible assets at September 27, 2013 and December 31, 2012 consist of the following (dollars in thousands): | ||||||||||||||||||
September 27, 2013 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||||||
(years) | amortization | carrying value | ||||||||||||||||
Intellectual property | 5 | $ | 999 | $ | 999 | $ | — | |||||||||||
Developed technology | 5.03 | 9,080 | 2,229 | 6,851 | ||||||||||||||
Customer relationships | 5.3 | 6,140 | 2,280 | 3,860 | ||||||||||||||
Order backlog | 0.33 | 860 | 860 | — | ||||||||||||||
Internal use software | 3 | 730 | 264 | 466 | ||||||||||||||
4.35 | $ | 17,809 | $ | 6,632 | $ | 11,177 | ||||||||||||
December 31, 2012 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||||||
(years) | amortization | carrying value | ||||||||||||||||
Intellectual property | 5 | $ | 2,999 | $ | 2,199 | $ | 800 | |||||||||||
Developed technology | 5.03 | 9,080 | 730 | 8,350 | ||||||||||||||
Customer relationships | 5.3 | 6,140 | 702 | 5,438 | ||||||||||||||
Order backlog | 0.33 | 860 | 860 | — | ||||||||||||||
Internal use software | 3 | 730 | 81 | 649 | ||||||||||||||
4.35 | $ | 19,809 | $ | 4,572 | $ | 15,237 | ||||||||||||
Amortization expense for intangible assets for the three and nine months ended September 27, 2013 and September 28, 2012 was as follows (in thousands): | ||||||||||||||||||
Three months ended | Nine months ended | Statement of operations classification | ||||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | |||||||||||||||
Intellectual property | $ | — | $ | 100 | $ | 200 | $ | 300 | Research and development | |||||||||
Developed technology | 500 | 183 | 1,499 | 183 | Cost of revenue - product | |||||||||||||
Customer relationships | 526 | 175 | 1,578 | 175 | Sales and marketing | |||||||||||||
Order backlog | — | 216 | — | 216 | Cost of revenue - product | |||||||||||||
Internal use software | 61 | 30 | 183 | 30 | Cost of revenue - product | |||||||||||||
$ | 1,087 | $ | 704 | $ | 3,460 | $ | 904 | |||||||||||
In connection with the preparation of its financial statements for the second quarter of fiscal 2013, the Company reviewed its intangible assets and other long-lived assets for impairment indicators. The Company determined that a triggering event had occurred relative to one of its intellectual property intangible assets that had been acquired during fiscal 2010. During the three months ended June 28, 2013, the Company discontinued its development of this technology and determined that there were no alternative uses of the technology within either its existing or future product lines. Additionally, based on the age and resulting obsolescence of such technology, the Company concluded that the fair value was nominal based on a discounted cash flow model. As a result, the Company recorded an impairment charge of $0.6 million in the three months ended June 28, 2013 to write down the carrying value of the asset to zero. This expense is included as a component of research and development expense in the Company's condensed consolidated statements of operations for the nine months ended September 27, 2013. The nonrecurring fair value measurement of the impairment of the intellectual property was categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||
Estimated future amortization expense for the Company's intangible assets at September 27, 2013 is as follows (in thousands): | ||||||||||||||||||
Years ending December 31, | ||||||||||||||||||
Remainder of 2013 | $ | 1,087 | ||||||||||||||||
2014 | 3,235 | |||||||||||||||||
2015 | 2,367 | |||||||||||||||||
2016 | 1,933 | |||||||||||||||||
2017 | 1,900 | |||||||||||||||||
Thereafter | 655 | |||||||||||||||||
$ | 11,177 | |||||||||||||||||
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. Other than the purchase price adjustments discussed in Note 2 and retrospectively recorded as of December 31, 2012, there were no changes to the carrying value of the Company's goodwill in the three or nine months ended September 27, 2013. | ||||||||||||||||||
The changes in the carrying value of the Company's goodwill in the nine months ended September 28, 2012 were as follows (in thousands): | ||||||||||||||||||
Balance at January 1, 2012: | ||||||||||||||||||
Goodwill | $ | 8,168 | ||||||||||||||||
Accumulated impairment losses | (3,106 | ) | ||||||||||||||||
5,062 | ||||||||||||||||||
Acquisition of NET | 27,199 | |||||||||||||||||
Balance at September 28, 2012 | $ | 32,261 | ||||||||||||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
ACCRUED EXPENSES | ' | |||||||
ACCRUED EXPENSES | ||||||||
Accrued expenses consist of the following (in thousands): | ||||||||
September 27, | December 31, | |||||||
2013 | 2012 | |||||||
Employee compensation and related costs | $ | 16,640 | $ | 15,799 | ||||
Other | 9,327 | 10,413 | ||||||
$ | 25,967 | $ | 26,212 | |||||
RESTRUCTURING_ACCRUAL
RESTRUCTURING ACCRUAL | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
RESTRUCTURING ACCRUAL | ' | |||||||||||||||
RESTRUCTURING ACCRUAL | ||||||||||||||||
On August 7, 2012, the Company announced that it had committed to a restructuring initiative to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. In connection with this initiative, the Company recorded $4.8 million of restructuring expense in the nine months ended September 27, 2013, comprised of $4.5 million for severance and related costs in connection with reducing the Company's workforce and $0.3 million related to facilities. Of this amount, the Company recorded $1.2 million in the three months ended September 27, 2013 for severance and related costs; $1.7 million in the three months ended June 28, 2013, comprised of $1.4 million for severance and related costs and $0.3 million for facility costs; and $1.9 million in the three months ended March 29, 2013, primarily for severance and related costs. The Company had recorded $7.7 million of restructuring expense in the year ended December 31, 2012, of which $5.2 million remained accrued at December 31, 2012. | ||||||||||||||||
The table below summarizes the restructuring accrual activity for the nine months ended September 27, 2013 (in thousands): | ||||||||||||||||
Balance at | Initiatives | Cash | Balance at | |||||||||||||
January 1, | charged to | payments | September 27, | |||||||||||||
2013 | expense | 2013 | ||||||||||||||
Severance | $ | 1,135 | $ | 4,478 | $ | (3,435 | ) | $ | 2,178 | |||||||
Facilities | 4,100 | 309 | (1,102 | ) | 3,307 | |||||||||||
$ | 5,235 | $ | 4,787 | $ | (4,537 | ) | $ | 5,485 | ||||||||
The Company expects to complete the restructuring payments related to severance in the fourth quarter of fiscal 2014 and the payments related to facilities in fiscal 2016. The portion of restructuring payments due more than one year from the balance sheet date is included in Other long-term liabilities in the Company's condensed consolidated balance sheets. The long-term portions of accrued restructuring were $2.1 million at September 27, 2013 and $2.7 million at December 31, 2012. The Company expects to record restructuring expense of approximately $2 million in the fourth quarter of fiscal 2013. |
DEBT
DEBT | 9 Months Ended |
Sep. 27, 2013 | |
Debt Disclosure [Abstract] | ' |
DEBT | ' |
DEBT | |
The Company has determined that the estimated fair value of its $2.4 million of aggregate principal amount of outstanding debt due in 2014 equaled its carrying value at both September 27, 2013 and December 31, 2012. Although the debt can be publicly traded, there have been no trading transactions since 2010 and accordingly, the Company has categorized it in Level 2 within the fair value hierarchy. |
STOCKHOLDER_RIGHTS_PLAN
STOCKHOLDER RIGHTS PLAN | 9 Months Ended |
Sep. 27, 2013 | |
Equity [Abstract] | ' |
STOCKHOLDER RIGHTS PLAN | ' |
STOCKHOLDER RIGHTS PLAN | |
On June 21, 2013, the Company entered into an amendment to its stockholder rights agreement, as amended (the "Rights Plan"), to extend the expiration date of the rights in such Rights Plan from June 26, 2013 to June 26, 2015. The amendment was not in response to any acquisition proposal and no other amendments were made to the Rights Plan. The Rights Plan was originally adopted on June 26, 2008 and subsequently extended to June 26, 2013 on June 10, 2011. | |
Under the Rights Plan, preferred stock purchase rights (the "Rights") were distributed as a dividend at the rate of one Right per share of common stock held by stockholders of record as of the close of business on July 7, 2008. Each Right entitles the stockholder to purchase from the Company a unit consisting of one one-thousandth of a share (a "Unit") of preferred stock at a purchase price of $25.00, subject to adjustment. | |
The Rights generally will be exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company's common stock (which includes for this purpose shares of common stock referenced in derivative transactions or securities), or commences or publicly announces a tender or exchange offer upon consummation of which they would beneficially own 15% or more of the Company's common stock. Subject to certain conditions, a person or group who beneficially owned 15% or more of the outstanding shares of the Company's common stock prior to the adoption of the Rights Plan did not cause the Rights to become exercisable upon adoption of the Rights Plan. Should the Rights become exercisable, the effect would be to dilute the ownership of the beneficial owner(s) who triggered the Rights, as that beneficial owner or group of owners would not receive the Units. |
COMMON_STOCK_REPURCHASES_Notes
COMMON STOCK REPURCHASES (Notes) | 9 Months Ended |
Sep. 27, 2013 | |
Equity [Abstract] | ' |
COMMON STOCK REPURCHASES | ' |
COMMON STOCK REPURCHASES | |
On July 29, 2013, the Company announced that its Board of Directors had authorized a stock buyback program to repurchase up to $100 million of the Company's common stock from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. The Company may elect to implement a 10b5-1 repurchase program, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The buyback program may be suspended or discontinued at any time. The buyback program is being funded using the Company's working capital. | |
During both the three and nine months ended September 27, 2013, the Company spent $37.3 million, including transaction fees, to repurchase and retire 10.8 million shares of its common stock under the buyback program. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | |||||||||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||||||||||
The Company's 2007 Stock Incentive Plan, as amended, (the "2007 Plan"), provides for the award of options to purchase the Company's common stock ("stock options"), stock appreciation rights ("SARs"), restricted common stock ("restricted stock"), performance-based awards, restricted stock units ("RSUs") and other stock-based awards to employees, officers, directors (including those directors who are not employees or officers of the Company), consultants and advisors of the Company and its subsidiaries. At its June 12, 2013 annual meeting of stockholders, the Company's stockholders approved an amendment to the 2007 Plan, which increased the number of shares available for future grant by 21 million shares. | ||||||||||||||||
The Company's 2008 Stock Incentive Plan provides for the award of stock options, SARs, restricted stock, performance-based awards and RSUs to former employees of NET who subsequently became employees of Sonus and Sonus employees hired subsequent to the NET Acquisition Date. | ||||||||||||||||
In March 2013, 21 executives of the Company, including Raymond P. Dolan, the Company's President and Chief Executive Officer ("Mr. Dolan"), elected to receive bonuses with respect to fiscal 2013 (collectively, the "2013 Bonus"), if any are earned, in the form of shares of the Company's common stock (collectively, the "2013 Bonus Shares"). The 2013 Bonus Shares, if any are granted, will be granted on a date concurrent with the timing of normal 2013 bonus payouts and will be fully vested as of the date of grant, with the number of 2013 Bonus Shares calculated by dividing amounts equal to 1.5 times the respective 2013 Bonus amounts earned, as determined by the Compensation Committee of the Company's Board of Directors (the "Compensation Committee") by the closing price of the Company's common stock on the date of grant. The Company is recording stock-based compensation expense for the 2013 Bonus Shares commensurate with the expected achievement level represented by the Company's accrual for its company-wide cash bonus program, as the performance metrics for each are consistent. Because no shares have been granted in connection with the 2013 Bonus, there are no shares related to the 2013 Bonus reported in the restricted stock grant table below. | ||||||||||||||||
On February 15, 2013, Mr. Dolan elected to accept restricted shares of the Company's common stock in lieu of his base salary for the period from January 1, 2013 through December 31, 2013. Mr. Dolan had previously not received any salary payments from the Company for this period. On February 15, 2013, the Company granted Mr. Dolan 183,824 shares of restricted common stock (the "Salary Shares") having a total grant date fair value of $500,000, equal to Mr. Dolan's base salary for the year ending December 31, 2013. The number of shares was calculated by dividing Mr. Dolan's base salary for the year by $2.72, the closing price of the Company's common stock on the date of grant. The Salary Shares will vest on December 31, 2013. If Mr. Dolan's employment is terminated by Mr. Dolan with Good Reason (as defined in his employment agreement, as amended) or his employment is terminated by the Company without Cause (as defined in his employment agreement, as amended) before December 31, 2013, a pro rata portion of the Salary Shares will vest on the date of such termination. If Mr. Dolan terminates his employment without Good Reason or his employment is terminated by the Company for Cause before December 31, 2013, he will forfeit the Salary Shares. The Company is recording stock-based compensation expense related to the Salary Shares ratably for the period of January 1, 2013 through December 31, 2013. The Salary Shares are included in the amount reported as "Granted" in the restricted stock grant table below. | ||||||||||||||||
On February 14, 2013, the Compensation Committee determined that eight executives of the Company, excluding Mr. Dolan, would receive their bonuses with respect to fiscal 2012 in the form of restricted shares of the Company's common stock equal to 100% of their respective target bonus amounts for fiscal 2012 (collectively, the "Executive Bonus Shares"). The number of shares granted to each executive was calculated by dividing his/her target bonus amount by the closing price of the Company's common stock on February 15, 2013, the date of grant. The Executive Bonus Shares vested 50% on August 15, 2013 and the remaining 50% will vest on February 15, 2014, contingent upon each such executive's continued employment with the Company on the last vesting date. The Company had accrued for the cash payment of bonuses at the expected company-wide cash payout percentage amount at December 31, 2012, which amounts were less than the target bonus amounts for each individual. The Company is recording the unamortized expense related to the Executive Bonus Shares as stock-based compensation expense through February 15, 2014. These shares are reported as "Granted" in the restricted stock grant table below. | ||||||||||||||||
On August 7, 2012, Mr. Dolan elected to receive his fiscal year 2012 bonus, if earned, in the form of restricted shares of the Company's common stock (the “Dolan Bonus Shares”). On August 10, 2012, the Company granted Mr. Dolan 421,348 Dolan Bonus Shares, which equaled Mr. Dolan's potential 2012 bonus at the maximum level of achievement (150% of Mr. Dolan's annual base salary), divided by $1.78, the closing price of the Company's common stock on the date of grant. During fiscal 2012, the Company recorded stock-based compensation expense for the Dolan Bonus Shares commensurate with the expected achievement level represented by the Company's accrual for its company-wide cash bonus program, as the performance metrics for each were consistent. The Dolan Bonus Shares represented the performance-based stock award shares reported as “Unvested balance at January 1, 2013” in the performance-based stock awards table below. On February 14, 2013, the Compensation Committee determined that Mr. Dolan had earned 280,899 Dolan Bonus Shares, of which 50% vested on August 15, 2013 and the remaining 50% will vest on February 15, 2014, subject to Mr. Dolan's continued employment with the Company on the last vesting date. The Company is recording the unamortized expense related to the Dolan Bonus Shares, including incremental expense arising from the modification of this award, through February 15, 2014. Mr. Dolan forfeited the remaining 140,449 Dolan Bonus Shares on February 14, 2013, and these shares are reported as "Forfeited" in the performance-based stock awards table below. | ||||||||||||||||
Certain members of the Company's Board of Directors elected to receive their annual cash retainer in shares of the Company's common stock in lieu of cash payments. Accordingly, the Company granted approximately 73,000 shares in the aggregate under the 2007 Plan to such members of the Board of Directors, of which approximately 40,000 shares were granted on February 15, 2013 and approximately 33,000 shares were granted on June 17, 2013. All such shares vested immediately. The shares are reported as both "Granted" and "Vested" in the restricted stock grants table below. | ||||||||||||||||
Stock Options | ||||||||||||||||
The activity related to the Company's outstanding stock options during the nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic Value | |||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||||
Contractual Term | ||||||||||||||||
(years) | ||||||||||||||||
Outstanding at January 1, 2013 | 25,116,398 | $ | 3.46 | |||||||||||||
Granted | 13,043,856 | $ | 2.92 | |||||||||||||
Exercised | (1,166,397 | ) | $ | 2.01 | ||||||||||||
Forfeited | (1,398,660 | ) | $ | 2.62 | ||||||||||||
Expired | (2,312,336 | ) | $ | 4.78 | ||||||||||||
Outstanding at September 27, 2013 | 33,282,861 | $ | 3.25 | 7.21 | $ | 16,860 | ||||||||||
Vested or expected to vest at September 27, 2013 | 30,487,280 | $ | 3.29 | 7.02 | $ | 15,294 | ||||||||||
Exercisable at September 27, 2013 | 14,228,903 | $ | 3.85 | 4.76 | $ | 5,694 | ||||||||||
The grant date fair values of options to purchase common stock granted in the three and nine months ended September 27, 2013 were estimated using the Black-Scholes valuation model with the following assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 27, | September 27, | |||||||||||||||
2013 | 2013 | |||||||||||||||
Risk-free interest rate | 1.51% - 1.71% | 0.82% - 1.71% | ||||||||||||||
Expected dividends | — | — | ||||||||||||||
Weighted average volatility | 57.60% | 63.20% | ||||||||||||||
Expected life (years) | 4.5 | 4.5 - 6.0 | ||||||||||||||
Additional information regarding the Company's stock options for the three and nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 27, | September 27, | |||||||||||||||
2013 | 2013 | |||||||||||||||
Weighted average grant date fair value of stock options granted | $ | 1.58 | $ | 1.49 | ||||||||||||
Total intrinsic value of stock options exercised (in thousands) | $ | 398 | $ | 1,185 | ||||||||||||
Cash received from the exercise of stock options (in thousands) | $ | 1,056 | $ | 2,393 | ||||||||||||
Restricted Stock Grants - Restricted Stock Awards and Restricted Stock Units | ||||||||||||||||
The Company's outstanding restricted stock grants consist of both restricted stock awards and RSUs. The activity related to the Company's unvested restricted stock grants for the nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2013 | 617,203 | $ | 2.45 | |||||||||||||
Granted | 1,334,086 | $ | 2.82 | |||||||||||||
Vested | (634,514 | ) | $ | 2.56 | ||||||||||||
Forfeited | (54,039 | ) | $ | 2.66 | ||||||||||||
Unvested balance at September 27, 2013 | 1,262,736 | $ | 2.77 | |||||||||||||
The total fair value of restricted stock grant shares that vested during the nine months ended September 27, 2013 was $1.6 million. | ||||||||||||||||
Performance-Based Stock Awards | ||||||||||||||||
The activity related to the Company's performance-based stock awards for the nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2013 | 421,348 | $ | 1.78 | |||||||||||||
Granted | 1,984,500 | $ | 2.72 | |||||||||||||
Vested | (954,292 | ) | $ | 2.58 | ||||||||||||
Forfeited | (140,449 | ) | $ | 1.78 | ||||||||||||
Unvested balance at September 27, 2013 | 1,311,107 | $ | 2.62 | |||||||||||||
On February 14, 2013, the Compensation Committee took certain actions regarding performance-based stock awards that had been awarded in previous years but for which the grant date criteria had not been met as of December 31, 2012. These actions included determining that a certain number of these performance-based shares would vest as of February 15, 2013 (the “Vested Performance Shares”) and subjecting the remaining performance-based shares (the “Future Performance Shares”) to further performance and service conditions. Accordingly, as of February 15, 2013 the grant date criteria were met for both the Vested Performance Shares and the Future Performance Shares and they are reported as "Granted" in the table above. The performance conditions relate to either a portion of or the full fiscal 2013 year and the service conditions were implemented through vesting schedules individually assigned to each Future Performance Share award that provide for service-based vesting through fiscal 2015. On July 26, 2013, the Compensation Committee determined that the performance conditions related to the Future Performance Shares had been satisfied based on the Company's performance for the six months ended June 28, 2013 and accordingly, all of the Future Performance Shares will vest contingent upon continued employment with the Company on the vesting dates. The Company had previously estimated that the conditions related to the Future Performance Shares would be satisfied by June 28, 2013 and had recorded expense in the first and second quarters of 2013 based on that estimate. The Company is recording the unamortized expense related to the Future Performance Shares based on the vesting dates of the respective awards. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The condensed consolidated statements of operations include stock-based compensation for the three and nine months ended September 27, 2013 and September 28, 2012 as follows (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | 28-Sep-12 | |||||||||||||
Product cost of revenue | $ | 46 | $ | 41 | $ | 128 | $ | 130 | ||||||||
Service cost of revenue | 299 | 211 | 761 | 595 | ||||||||||||
Research and development | 903 | 524 | 2,402 | 1,773 | ||||||||||||
Sales and marketing | 1,313 | 500 | 3,631 | 1,458 | ||||||||||||
General and administrative | 1,812 | 1,124 | 6,215 | 2,584 | ||||||||||||
$ | 4,373 | $ | 2,400 | $ | 13,137 | $ | 6,540 | |||||||||
There is no income tax benefit for employee stock-based compensation expense for the three and nine months ended September 27, 2013 or September 28, 2012 due to the valuation allowance recorded. | ||||||||||||||||
At September 27, 2013, there was $26.7 million, net of expected forfeitures, of unrecognized stock-based compensation expense related to unvested stock options and restricted stock awards. This expense is expected to be recognized over a weighted average period of approximately three years. |
MAJOR_CUSTOMERS
MAJOR CUSTOMERS | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
MAJOR CUSTOMERS | ' | ||||||||
MAJOR CUSTOMERS | |||||||||
The following customers each contributed 10% or more of the Company's revenue in at least one of the three or nine month periods ended September 27, 2013 and September 28, 2012: | |||||||||
Three months ended | Nine months ended | ||||||||
September 27, | September 28, | September 27, | September 28, | ||||||
2013 | 2012 | 2013 | 2012 | ||||||
AT&T Inc. | 18% | * | 17% | 24% | |||||
Level 3 Communications | * | 12% | * | * | |||||
__________________________________ | |||||||||
* Represents less than 10% of revenue | |||||||||
At September 27, 2013, one customer accounted for 10% or more of the Company's accounts receivable balance, representing approximately 21% of the Company's accounts receivable balance. At December 31, 2012, one customer accounted for 10% or more of the Company's accounts receivable balance, representing approximately 25% of the Company's accounts receivable balance. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts and such losses have been within management's expectations. |
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
GEOGRAPHIC INFORMATION | ' | ||||||||||||
GEOGRAPHIC INFORMATION | |||||||||||||
The Company's classification of revenue by geographic area is determined by the location to which the product is shipped or where the services are performed. The following table summarizes revenue by geographic area as a percentage of total revenue: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
United States | 66 | % | 76 | % | 70 | % | 75 | % | |||||
Europe, Middle East and Africa | 15 | 13 | 12 | 10 | |||||||||
Japan | 8 | * | 11 | 9 | |||||||||
Other Asia Pacific | 7 | 10 | 5 | 5 | |||||||||
Other | 4 | 1 | 2 | 1 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||
* Represents less than 1% of revenue | |||||||||||||
International revenue, both as a percentage of total revenue and absolute dollars, may vary from one period to the next, and accordingly, historical data may not be indicative of future periods. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 27, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The Company's income tax provisions for the nine months ended September 27, 2013 and September 28, 2012 reflect the Company's estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company's estimated tax expense for the full year. The estimated effective rates for the nine months ended September 27, 2013 and September 28, 2012 do not include any benefit for the Company's domestic losses, as the Company has concluded that a valuation allowance on any domestic benefit is required. | |
In September 2013, the U.S. Department of the Treasury and the Internal Revenue Service released final regulations relating to guidance on applying tax rules to amounts paid to acquire, produce or improve tangible personal property as well as rules for materials and supplies. The Company is currently assessing these rules and the impact they will have on its consolidated financial statements, if any. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 27, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
The Company is often a party to disputes and legal proceedings that it considers routine and incidental to its business. In the normal course of business, the Company enters into contractual commitments to purchase services, materials, components, and finished goods from suppliers. Under agreements with certain contract manufacturers, the Company may be liable for purchased raw materials procured for the Company by the applicable contract manufacturer. Management does not expect the results of any of these actions to have a material effect on the Company's business or consolidated financial statements. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 27, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On October 24, 2013, Mark T. Greenquist accepted an offer of employment as Chief Financial Officer of the Company, effective November 1, 2013. | |
On October 29, 2013, Maurice L. Castonguay resigned as Senior Vice President and Chief Financial Officer, effective November 1, 2013. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). | |
Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2012 ("Annual Report") filed with the SEC on March 6, 2013. | |
On August 24, 2012, the Company completed the acquisition of Network Equipment Technologies, Inc. (“NET”). The financial results of NET are included in the Company's condensed consolidated financial statements for the three and nine months ended September 27, 2013 and for the three and nine months ended September 28, 2012 for the period subsequent to August 24, 2012. | |
The Company reported acquisition-related expenses of approximately $967,000 as a component of general and administrative expenses in its Quarterly Report on Form 10-Q for the quarter ended June 29, 2012. The Company is now separately reporting this amount as acquisition-related expenses in the condensed statements of operations included herein. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates and Judgments | ' |
Use of Estimates and Judgments | |
The preparation of financial statements in conformity with GAAP 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these consolidated financial statements include accounting for business combinations, revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation, intangible assets and goodwill valuations, including impairments, legal contingencies and recoverability of Sonus' net deferred tax assets and the related valuation allowances. Sonus regularly assesses these estimates and records changes in estimates in the period in which they become known. Sonus bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying amounts of the Company's financial instruments, which include cash equivalents, marketable securities, investments, accounts receivable, accounts payable, convertible subordinated debt and other long-term liabilities, approximate their fair values. | |
Operating Segments | ' |
Operating Segments | |
The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, the chief operating decision maker has made such decisions and assessed performance at the company level, as one segment. The Company's chief operating decision maker is its President and Chief Executive Officer. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
On July 18, 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, Presentation of a Liability for an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists ("ASU 2013-11"), which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss ("NOL") carryforward, a similar tax loss or a tax credit carryforward exists. The FASB's objective in issuing ASU 2013-11 is to eliminate diversity in practice resulting from a lack of guidance on this topic in current GAAP. ASU 2013-11 requires that an entity present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss or a tax credit unless certain conditions exist. ASU 2013-11 is effective for the Company beginning January 1, 2014. The Company does not expect the adoption of ASU 2013-11 to have an impact on its consolidated financial statements, as the Company currently applies the methodology prescribed by ASU 2013-11. | |
On March 4, 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830) - Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity ("ASU 2013-05"), which indicates that the entire amount of a cumulative translation adjustment ("CTA") related to an entity's investment in a foreign entity should be released when there has been either: (a) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in a foreign entity; (b) the loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated); or (c) the step acquisition of a foreign entity (i.e., when the accounting for an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). ASU 2013-05 does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. ASU 2013-05 is effective for the Company beginning January 1, 2014, although early adoption is permitted. The Company does not expect the adoption of ASU 2013-05 to have a material impact on its consolidated financial statements. | |
On February 5, 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"), which requires entities to disclose changes in accumulated other comprehensive income balances by component (i.e., unrealized gains or losses on available-for-sale securities or foreign-currency items) and significant items reclassified out of accumulated other comprehensive income by component either on the face of the income statement or as a separate footnote to the financial statements. ASU 2013-02 does not change the current requirements for interim financial statement reporting of comprehensive income. ASU 2013-02 became effective for the Company on January 1, 2013. The Company does not have significant items reclassified out of accumulated other comprehensive income and accordingly, the adoption of ASU 2013-02 did not impact the Company's condensed consolidated financial statements. |
ACQUISITION_OF_NET_Tables
ACQUISITION OF NET (Tables) | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Summary of preliminary allocation of the purchase consideration | ' | |||||||
A summary of the allocation of the purchase consideration for NET is as follows (in thousands): | ||||||||
Fair value of consideration transferred: | ||||||||
Cash, net of cash acquired | $ | 35,508 | ||||||
Fair value of equity awards assumed | 892 | |||||||
Fair value of total consideration | $ | 36,400 | ||||||
Fair value of assets acquired and liabilities assumed: | ||||||||
Marketable securities | $ | 5,359 | ||||||
Deferred income taxes | 681 | |||||||
Other current assets | 13,388 | |||||||
Property and equipment | 4,694 | |||||||
Noncurrent investments | 10,167 | |||||||
Intangible assets | 16,810 | |||||||
Goodwill | 27,317 | |||||||
Other noncurrent assets | 1,843 | |||||||
Current liabilities | (9,350 | ) | ||||||
Debt | (34,208 | ) | ||||||
Other long-term liabilities | (301 | ) | ||||||
$ | 36,400 | |||||||
Schedule of Pro Forma Results from Business Acquisition | ' | |||||||
The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of the Company and NET. Accordingly, these unaudited pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the combined companies that would have been achieved had the acquisition occurred as of January 1, 2011, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amount): | ||||||||
Three months ended | Nine months ended | |||||||
September 28, 2012 | September 28, 2012 | |||||||
Revenue | $ | 63,369 | $ | 207,878 | ||||
Net loss | $ | (13,496 | ) | $ | (48,765 | ) | ||
Loss per share | $ | (0.05 | ) | $ | (0.17 | ) | ||
Schedule of Components of Acquisition Related Costs | ' | |||||||
The components of acquisition-related costs included in the Company's results of operations for the three and nine months ended September 28, 2012 are as follows (in thousands): | ||||||||
Three months ended | Nine months ended | |||||||
September 28, 2012 | September 28, 2012 | |||||||
Professional and services fees | $ | 2,048 | $ | 3,015 | ||||
Change of control agreements | 2,042 | 2,042 | ||||||
$ | 4,090 | $ | 5,057 | |||||
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of calculations of shares used to compute basic and diluted earnings (loss) per share | ' | |||||||||||
The calculations of shares used to compute basic and diluted loss per share are as follows (in thousands): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average shares outstanding—basic | 279,209 | 280,145 | 281,041 | 279,854 | ||||||||
Potential dilutive common shares | — | — | — | — | ||||||||
Weighted average shares outstanding—diluted | 279,209 | 280,145 | 281,041 | 279,854 | ||||||||
CASH_EQUIVALENTS_MARKETABLE_SE1
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||
Schedule of amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | |||||||||||||||
The amortized cost, gross unrealized gains and losses and fair value of the Company's marketable debt and equity securities and investments at September 27, 2013 and December 31, 2012 were comprised of the following (in thousands): | ||||||||||||||||
27-Sep-13 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 33,110 | $ | — | $ | — | $ | 33,110 | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,606 | $ | 30 | $ | — | $ | 47,636 | ||||||||
Corporate debt securities | 65,241 | 24 | (20 | ) | 65,245 | |||||||||||
Commercial paper | 11,240 | 4 | — | 11,244 | ||||||||||||
Certificates of deposit | 4,050 | 3 | (1 | ) | 4,052 | |||||||||||
$ | 128,137 | $ | 61 | $ | (21 | ) | $ | 128,177 | ||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 20,471 | $ | 8 | $ | (3 | ) | $ | 20,476 | |||||||
Foreign government notes | 1,250 | — | (1 | ) | 1,249 | |||||||||||
Corporate debt securities | 45,188 | 16 | (40 | ) | 45,164 | |||||||||||
$ | 66,909 | $ | 24 | $ | (44 | ) | $ | 66,889 | ||||||||
31-Dec-12 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 69,389 | $ | — | $ | — | $ | 69,389 | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 53,646 | $ | 22 | $ | — | $ | 53,668 | ||||||||
Foreign government notes | 2,000 | 1 | — | 2,001 | ||||||||||||
Corporate debt securities | 84,047 | 34 | (5 | ) | 84,076 | |||||||||||
Commercial paper | 7,492 | 5 | — | 7,497 | ||||||||||||
Certificates of deposit | 14,650 | 13 | — | 14,663 | ||||||||||||
$ | 161,835 | $ | 75 | $ | (5 | ) | $ | 161,905 | ||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 19,358 | $ | 20 | $ | — | $ | 19,378 | ||||||||
Corporate debt securities | 10,306 | 20 | (6 | ) | 10,320 | |||||||||||
$ | 29,664 | $ | 40 | $ | (6 | ) | $ | 29,698 | ||||||||
Schedule of fair value of financial assets | ' | |||||||||||||||
The following table shows the fair value of the Company's financial assets at September 27, 2013 and December 31, 2012. These financial assets are comprised of the Company's available-for-sale debt and equity securities and reported under the captions Cash and cash equivalents, Marketable securities and Investments in the consolidated balance sheets (in thousands): | ||||||||||||||||
Fair value measurements at | ||||||||||||||||
September 27, 2013 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
September 27, | markets | inputs | inputs | |||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 33,110 | $ | 33,110 | $ | — | $ | — | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,636 | $ | — | $ | 47,636 | $ | — | ||||||||
Corporate debt securities | 65,245 | — | 65,245 | — | ||||||||||||
Commercial paper | 11,244 | — | 11,244 | — | ||||||||||||
Certificates of deposit | 4,052 | — | 4,052 | — | ||||||||||||
$ | 128,177 | $ | — | $ | 128,177 | $ | — | |||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 20,476 | $ | — | $ | 20,476 | $ | — | ||||||||
Foreign government notes | 1,249 | — | 1,249 | — | ||||||||||||
Corporate debt securities | 45,164 | — | 45,164 | — | ||||||||||||
$ | 66,889 | $ | — | $ | 66,889 | $ | — | |||||||||
Fair value measurements at | ||||||||||||||||
December 31, 2012 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
December 31, | markets | inputs | inputs | |||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 69,389 | $ | 68,389 | $ | 1,000 | $ | — | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 53,668 | $ | — | $ | 53,668 | $ | — | ||||||||
Foreign government notes | 2,001 | — | 2,001 | — | ||||||||||||
Corporate debt securities | 84,076 | — | 84,076 | — | ||||||||||||
Commercial paper | 7,497 | — | 7,497 | — | ||||||||||||
Certificates of deposit | 14,663 | — | 14,663 | — | ||||||||||||
$ | 161,905 | $ | — | $ | 161,905 | $ | — | |||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 19,378 | $ | — | $ | 19,378 | $ | — | ||||||||
Corporate debt securities | 10,320 | — | 10,320 | — | ||||||||||||
$ | 29,698 | $ | — | $ | 29,698 | $ | — | |||||||||
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of inventory | ' | |||||||
Inventory consists of the following (in thousands): | ||||||||
September 27, | December 31, | |||||||
2013 | 2012 | |||||||
On-hand final assemblies and finished goods inventories | $ | 18,895 | $ | 22,009 | ||||
Deferred cost of goods sold | 5,420 | 5,704 | ||||||
24,315 | 27,713 | |||||||
Less current portion | (22,058 | ) | (25,614 | ) | ||||
Noncurrent portion (included in Other assets) | $ | 2,257 | $ | 2,099 | ||||
INTANGIBLE_ASSETS_AND_GOODWILL1
INTANGIBLE ASSETS AND GOODWILL (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||
The Company's intangible assets at September 27, 2013 and December 31, 2012 consist of the following (dollars in thousands): | ||||||||||||||||||
September 27, 2013 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||||||
(years) | amortization | carrying value | ||||||||||||||||
Intellectual property | 5 | $ | 999 | $ | 999 | $ | — | |||||||||||
Developed technology | 5.03 | 9,080 | 2,229 | 6,851 | ||||||||||||||
Customer relationships | 5.3 | 6,140 | 2,280 | 3,860 | ||||||||||||||
Order backlog | 0.33 | 860 | 860 | — | ||||||||||||||
Internal use software | 3 | 730 | 264 | 466 | ||||||||||||||
4.35 | $ | 17,809 | $ | 6,632 | $ | 11,177 | ||||||||||||
December 31, 2012 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||||||
(years) | amortization | carrying value | ||||||||||||||||
Intellectual property | 5 | $ | 2,999 | $ | 2,199 | $ | 800 | |||||||||||
Developed technology | 5.03 | 9,080 | 730 | 8,350 | ||||||||||||||
Customer relationships | 5.3 | 6,140 | 702 | 5,438 | ||||||||||||||
Order backlog | 0.33 | 860 | 860 | — | ||||||||||||||
Internal use software | 3 | 730 | 81 | 649 | ||||||||||||||
4.35 | $ | 19,809 | $ | 4,572 | $ | 15,237 | ||||||||||||
Schedule of amortization expense related to intangible assets | ' | |||||||||||||||||
Amortization expense for intangible assets for the three and nine months ended September 27, 2013 and September 28, 2012 was as follows (in thousands): | ||||||||||||||||||
Three months ended | Nine months ended | Statement of operations classification | ||||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | |||||||||||||||
Intellectual property | $ | — | $ | 100 | $ | 200 | $ | 300 | Research and development | |||||||||
Developed technology | 500 | 183 | 1,499 | 183 | Cost of revenue - product | |||||||||||||
Customer relationships | 526 | 175 | 1,578 | 175 | Sales and marketing | |||||||||||||
Order backlog | — | 216 | — | 216 | Cost of revenue - product | |||||||||||||
Internal use software | 61 | 30 | 183 | 30 | Cost of revenue - product | |||||||||||||
$ | 1,087 | $ | 704 | $ | 3,460 | $ | 904 | |||||||||||
Schedule of estimated future amortization expense for intangible assets | ' | |||||||||||||||||
Estimated future amortization expense for the Company's intangible assets at September 27, 2013 is as follows (in thousands): | ||||||||||||||||||
Years ending December 31, | ||||||||||||||||||
Remainder of 2013 | $ | 1,087 | ||||||||||||||||
2014 | 3,235 | |||||||||||||||||
2015 | 2,367 | |||||||||||||||||
2016 | 1,933 | |||||||||||||||||
2017 | 1,900 | |||||||||||||||||
Thereafter | 655 | |||||||||||||||||
$ | 11,177 | |||||||||||||||||
Schedule of goodwill | ' | |||||||||||||||||
The changes in the carrying value of the Company's goodwill in the nine months ended September 28, 2012 were as follows (in thousands): | ||||||||||||||||||
Balance at January 1, 2012: | ||||||||||||||||||
Goodwill | $ | 8,168 | ||||||||||||||||
Accumulated impairment losses | (3,106 | ) | ||||||||||||||||
5,062 | ||||||||||||||||||
Acquisition of NET | 27,199 | |||||||||||||||||
Balance at September 28, 2012 | $ | 32,261 | ||||||||||||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of accrued expenses | ' | |||||||
Accrued expenses consist of the following (in thousands): | ||||||||
September 27, | December 31, | |||||||
2013 | 2012 | |||||||
Employee compensation and related costs | $ | 16,640 | $ | 15,799 | ||||
Other | 9,327 | 10,413 | ||||||
$ | 25,967 | $ | 26,212 | |||||
RESTRUCTURING_ACCRUAL_Tables
RESTRUCTURING ACCRUAL (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Summary of restructuring accrual activity | ' | |||||||||||||||
The table below summarizes the restructuring accrual activity for the nine months ended September 27, 2013 (in thousands): | ||||||||||||||||
Balance at | Initiatives | Cash | Balance at | |||||||||||||
January 1, | charged to | payments | September 27, | |||||||||||||
2013 | expense | 2013 | ||||||||||||||
Severance | $ | 1,135 | $ | 4,478 | $ | (3,435 | ) | $ | 2,178 | |||||||
Facilities | 4,100 | 309 | (1,102 | ) | 3,307 | |||||||||||
$ | 5,235 | $ | 4,787 | $ | (4,537 | ) | $ | 5,485 | ||||||||
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of activity related to outstanding stock options | ' | |||||||||||||||
The activity related to the Company's outstanding stock options during the nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic Value | |||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||||
Contractual Term | ||||||||||||||||
(years) | ||||||||||||||||
Outstanding at January 1, 2013 | 25,116,398 | $ | 3.46 | |||||||||||||
Granted | 13,043,856 | $ | 2.92 | |||||||||||||
Exercised | (1,166,397 | ) | $ | 2.01 | ||||||||||||
Forfeited | (1,398,660 | ) | $ | 2.62 | ||||||||||||
Expired | (2,312,336 | ) | $ | 4.78 | ||||||||||||
Outstanding at September 27, 2013 | 33,282,861 | $ | 3.25 | 7.21 | $ | 16,860 | ||||||||||
Vested or expected to vest at September 27, 2013 | 30,487,280 | $ | 3.29 | 7.02 | $ | 15,294 | ||||||||||
Exercisable at September 27, 2013 | 14,228,903 | $ | 3.85 | 4.76 | $ | 5,694 | ||||||||||
Schedule of assumptions used to estimate the fair value of options at the date of grant using the Black-Scholes option pricing model | ' | |||||||||||||||
The grant date fair values of options to purchase common stock granted in the three and nine months ended September 27, 2013 were estimated using the Black-Scholes valuation model with the following assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 27, | September 27, | |||||||||||||||
2013 | 2013 | |||||||||||||||
Risk-free interest rate | 1.51% - 1.71% | 0.82% - 1.71% | ||||||||||||||
Expected dividends | — | — | ||||||||||||||
Weighted average volatility | 57.60% | 63.20% | ||||||||||||||
Expected life (years) | 4.5 | 4.5 - 6.0 | ||||||||||||||
Schedule of stock options, additional information | ' | |||||||||||||||
Additional information regarding the Company's stock options for the three and nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 27, | September 27, | |||||||||||||||
2013 | 2013 | |||||||||||||||
Weighted average grant date fair value of stock options granted | $ | 1.58 | $ | 1.49 | ||||||||||||
Total intrinsic value of stock options exercised (in thousands) | $ | 398 | $ | 1,185 | ||||||||||||
Cash received from the exercise of stock options (in thousands) | $ | 1,056 | $ | 2,393 | ||||||||||||
Schedule of activity related to unvested restricted stock grants | ' | |||||||||||||||
The activity related to the Company's unvested restricted stock grants for the nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2013 | 617,203 | $ | 2.45 | |||||||||||||
Granted | 1,334,086 | $ | 2.82 | |||||||||||||
Vested | (634,514 | ) | $ | 2.56 | ||||||||||||
Forfeited | (54,039 | ) | $ | 2.66 | ||||||||||||
Unvested balance at September 27, 2013 | 1,262,736 | $ | 2.77 | |||||||||||||
Schedule of activity related to performance stock awards | ' | |||||||||||||||
The activity related to the Company's performance-based stock awards for the nine months ended September 27, 2013 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2013 | 421,348 | $ | 1.78 | |||||||||||||
Granted | 1,984,500 | $ | 2.72 | |||||||||||||
Vested | (954,292 | ) | $ | 2.58 | ||||||||||||
Forfeited | (140,449 | ) | $ | 1.78 | ||||||||||||
Unvested balance at September 27, 2013 | 1,311,107 | $ | 2.62 | |||||||||||||
Schedule of stock-based compensation expenses which are included in condensed consolidated statement of operations | ' | |||||||||||||||
The condensed consolidated statements of operations include stock-based compensation for the three and nine months ended September 27, 2013 and September 28, 2012 as follows (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | 28-Sep-12 | |||||||||||||
Product cost of revenue | $ | 46 | $ | 41 | $ | 128 | $ | 130 | ||||||||
Service cost of revenue | 299 | 211 | 761 | 595 | ||||||||||||
Research and development | 903 | 524 | 2,402 | 1,773 | ||||||||||||
Sales and marketing | 1,313 | 500 | 3,631 | 1,458 | ||||||||||||
General and administrative | 1,812 | 1,124 | 6,215 | 2,584 | ||||||||||||
$ | 4,373 | $ | 2,400 | $ | 13,137 | $ | 6,540 | |||||||||
MAJOR_CUSTOMERS_Tables
MAJOR CUSTOMERS (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Schedule of customers contributing 10% or more of the revenue | ' | ||||||||
The following customers each contributed 10% or more of the Company's revenue in at least one of the three or nine month periods ended September 27, 2013 and September 28, 2012: | |||||||||
Three months ended | Nine months ended | ||||||||
September 27, | September 28, | September 27, | September 28, | ||||||
2013 | 2012 | 2013 | 2012 | ||||||
AT&T Inc. | 18% | * | 17% | 24% | |||||
Level 3 Communications | * | 12% | * | * | |||||
__________________________________ | |||||||||
* Represents less than 10% of revenue |
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Summary of revenue by geographic area as a percentage of total revenue | ' | ||||||||||||
The Company's classification of revenue by geographic area is determined by the location to which the product is shipped or where the services are performed. The following table summarizes revenue by geographic area as a percentage of total revenue: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
United States | 66 | % | 76 | % | 70 | % | 75 | % | |||||
Europe, Middle East and Africa | 15 | 13 | 12 | 10 | |||||||||
Japan | 8 | * | 11 | 9 | |||||||||
Other Asia Pacific | 7 | 10 | 5 | 5 | |||||||||
Other | 4 | 1 | 2 | 1 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % |
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 29, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
segment | |||||
Accounting Policies [Abstract] | ' | ' | ' | ' | ' |
Acquisition-related | $0 | $4,090 | $967 | $0 | $5,057 |
Number of reportable operating segments | ' | ' | ' | 1 | ' |
ACQUISITION_OF_NET_Details
ACQUISITION OF NET - (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 27, 2013 | Sep. 28, 2012 | Jun. 29, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Aug. 24, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | ||||||
Acquisition Of Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | ' | $41,500,000 | ' | ' | ' | ' |
Cash consideration per share of the acquired entity (in dollars per share) | ' | ' | ' | ' | ' | $1.35 | ' | ' | ' | ' |
Increase to goodwill | ' | ' | ' | ' | ' | ' | -1,400,000 | ' | ' | ' |
Decrease to other current assets | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' |
Increase to current liabilities | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' |
Period over which goodwill will be deductible for tax purpose | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' |
Fair value of consideration transferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, net of cash acquired | ' | ' | ' | 0 | 35,508,000 | 35,508,000 | ' | ' | ' | ' |
Assumption of equity awards in connection with acquisition of Network Technologies, Inc. | ' | ' | ' | 0 | 892,000 | 892,000 | ' | ' | ' | ' |
Fair value of total consideration | ' | ' | ' | ' | ' | 36,400,000 | ' | ' | ' | ' |
Allocation of the purchase consideration: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | ' | ' | ' | ' | ' | 5,359,000 | ' | ' | ' | ' |
Deferred income taxes | ' | ' | ' | ' | ' | 681,000 | ' | ' | ' | ' |
Other current assets | ' | ' | ' | ' | ' | 13,388,000 | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | 4,694,000 | ' | ' | ' | ' |
Noncurrent investments | ' | ' | ' | ' | ' | 10,167,000 | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | 16,810,000 | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | 27,317,000 | ' | ' | ' | ' |
Other non-current assets | ' | ' | ' | ' | ' | 1,843,000 | ' | ' | ' | ' |
Current liabilities | ' | ' | ' | ' | ' | -9,350,000 | ' | ' | ' | ' |
Debt | ' | ' | ' | ' | ' | -34,208,000 | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | ' | ' | -301,000 | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | 63,369,000 | ' | 207,878,000 |
Net loss | ' | ' | ' | ' | ' | ' | ' | -13,496,000 | ' | -48,765,000 |
Loss per share | ' | ' | ' | ' | ' | ' | ' | ($0.05) | ' | ($0.17) |
Professional Fees | ' | ' | ' | ' | ' | ' | ' | 2,048,000 | ' | 3,015,000 |
Change of Control Agreements | ' | ' | ' | ' | ' | ' | ' | 2,042,000 | ' | 2,042,000 |
Acquisition-related | $0 | $4,090,000 | $967,000 | $0 | $5,057,000 | ' | ' | $4,090,000 | ' | $5,057,000 |
EARNINGS_LOSS_PER_SHARE_Detail
EARNINGS (LOSS) PER SHARE - (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Reconciliation of weighted average shares outstanding from basic to diluted | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 279,209,000 | 280,145,000 | 281,041,000 | 279,854,000 |
Potential dilutive common shares | 0 | 0 | 0 | 0 |
Weighted average shares outstanding - diluted | 279,209,000 | 280,145,000 | 281,041,000 | 279,854,000 |
Common stock and unvested shares of restricted stock not included because their effect would have been antidilutive (in shares) | 36,000,000 | 27,600,000 | 35,900,000 | 27,200,000 |
CASH_EQUIVALENTS_MARKETABLE_SE2
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Schedule of Activity for Short-Term Investments (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Minimum [Member] | Maximum [Member] | U.S. government agency notes [Member] | U.S. government agency notes [Member] | Foreign government notes [Member] | Foreign government notes [Member] | Corporate debt securities [Member] | Corporate debt securities [Member] | Commercial paper [Member] | Commercial paper [Member] | Certificates of deposit [Member] | Certificates of deposit [Member] | ||
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents, amortized cost | $33,110 | $69,389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents, fair value | 33,110 | 69,389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities, amortized cost | 128,137 | 161,835 | ' | ' | 47,606 | 53,646 | ' | 2,000 | 65,241 | 84,047 | 11,240 | 7,492 | 4,050 | 14,650 |
Marketable securities, unrealized gains | 61 | 75 | ' | ' | 30 | 22 | ' | 1 | 24 | 34 | 4 | 5 | 3 | 13 |
Marketable securities, unrealized losses | -21 | -5 | ' | ' | 0 | 0 | ' | 0 | -20 | -5 | 0 | 0 | -1 | 0 |
Marketable securities, fair value | 128,177 | 161,905 | ' | ' | 47,636 | 53,668 | ' | 2,001 | 65,245 | 84,076 | 11,244 | 7,497 | 4,052 | 14,663 |
Investments, amortized cost | 66,909 | 29,664 | ' | ' | 20,471 | 19,358 | 1,250 | ' | 45,188 | 10,306 | ' | ' | ' | ' |
Investments, unrealized gains | 24 | 40 | ' | ' | 8 | 20 | 0 | ' | 16 | 20 | ' | ' | ' | ' |
Investments, unrealized losses | -44 | -6 | ' | ' | -3 | 0 | -1 | ' | -40 | -6 | ' | ' | ' | ' |
Investments, fair value | $66,889 | $29,698 | ' | ' | $20,476 | $19,378 | $1,249 | ' | $45,164 | $10,320 | ' | ' | ' | ' |
Period considered to classify available-for-sale securities as investments | ' | ' | '1 year | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CASH_EQUIVALENTS_MARKETABLE_SE3
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Schedule of Short-Term Investments by Measurement (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | $33,110 | $69,389 |
Marketable securities, fair value | 128,177 | 161,905 |
Investments, fair value | 66,889 | 29,698 |
Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 33,110 | 69,389 |
Marketable securities, fair value | 128,177 | 161,905 |
Investments, fair value | 66,889 | 29,698 |
Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 33,110 | 68,389 |
Marketable securities, fair value | 0 | 0 |
Investments, fair value | 0 | 0 |
Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 0 | 1,000 |
Marketable securities, fair value | 128,177 | 161,905 |
Investments, fair value | 66,889 | 29,698 |
Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 0 | 0 |
Marketable securities, fair value | 0 | 0 |
Investments, fair value | 0 | 0 |
U.S. government agency notes [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 47,636 | 53,668 |
Investments, fair value | 20,476 | 19,378 |
U.S. government agency notes [Member] | Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | 0 |
Investments, fair value | 0 | 0 |
U.S. government agency notes [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 47,636 | 53,668 |
Investments, fair value | 20,476 | 19,378 |
U.S. government agency notes [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | 0 |
Investments, fair value | 0 | 0 |
Foreign government notes [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | ' | 2,001 |
Investments, fair value | 1,249 | ' |
Foreign government notes [Member] | Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | ' | 0 |
Investments, fair value | 0 | ' |
Foreign government notes [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | ' | 2,001 |
Investments, fair value | 1,249 | ' |
Foreign government notes [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | ' | 0 |
Investments, fair value | 0 | ' |
Corporate debt securities [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 65,245 | 84,076 |
Investments, fair value | 45,164 | 10,320 |
Corporate debt securities [Member] | Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | 0 |
Investments, fair value | 0 | 0 |
Corporate debt securities [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 65,245 | 84,076 |
Investments, fair value | 45,164 | 10,320 |
Corporate debt securities [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | 0 |
Investments, fair value | 0 | 0 |
Commercial paper [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 11,244 | 7,497 |
Commercial paper [Member] | Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | 0 |
Commercial paper [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 11,244 | 7,497 |
Commercial paper [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | 0 |
Certificates of deposit [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 4,052 | 14,663 |
Certificates of deposit [Member] | Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | 0 |
Certificates of deposit [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 4,052 | 14,663 |
Certificates of deposit [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | $0 | $0 |
INVENTORY_Details
INVENTORY - (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
On-hand final assemblies and finished goods inventories | $18,895 | $22,009 |
Deferred cost of goods sold | 5,420 | 5,704 |
Gross inventory | 24,315 | 27,713 |
Less current portion | -22,058 | -25,614 |
Noncurrent portion (included in other assets) | $2,257 | $2,099 |
INTANGIBLE_ASSETS_AND_GOODWILL2
INTANGIBLE ASSETS AND GOODWILL - (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' |
Goodwill, Gross | ' | ' | ' | ' | ' | $8,168,000 |
Goodwill, Impaired, Accumulated Impairment Loss | ' | ' | ' | ' | ' | 3,106,000 |
Weighted average amortization period (years) | ' | ' | '4 years 4 months 6 days | ' | '4 years 4 months 6 days | ' |
Cost | 17,809,000 | ' | 17,809,000 | ' | 19,809,000 | ' |
Accumulated amortization | 6,632,000 | ' | 6,632,000 | ' | 4,572,000 | ' |
Net carrying value | 11,177,000 | ' | 11,177,000 | ' | 15,237,000 | ' |
Amortization expense | 1,087,000 | 704,000 | 3,460,000 | 904,000 | ' | ' |
Estimated future amortization expense for intangible assets | ' | ' | ' | ' | ' | ' |
2013 | 1,087,000 | ' | 1,087,000 | ' | ' | ' |
2014 | 3,235,000 | ' | 3,235,000 | ' | ' | ' |
2015 | 2,367,000 | ' | 2,367,000 | ' | ' | ' |
2016 | 1,933,000 | ' | 1,933,000 | ' | ' | ' |
2017 | 1,900,000 | ' | 1,900,000 | ' | ' | ' |
Thereafter | 655,000 | ' | 655,000 | ' | ' | ' |
Total | 11,177,000 | ' | 11,177,000 | ' | ' | ' |
Intellectual Property [Member] | ' | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '5 years | ' | '5 years | ' |
Cost | 999,000 | ' | 999,000 | ' | 2,999,000 | ' |
Accumulated amortization | 999,000 | ' | 999,000 | ' | 2,199,000 | ' |
Net carrying value | 0 | ' | 0 | ' | 800,000 | ' |
Amortization expense | 0 | 100,000 | 200,000 | 300,000 | ' | ' |
Developed technology [Member] | ' | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '5 years 0 months 11 days | ' | '5 years 0 months 11 days | ' |
Cost | 9,080,000 | ' | 9,080,000 | ' | 9,080,000 | ' |
Accumulated amortization | 2,229,000 | ' | 2,229,000 | ' | 730,000 | ' |
Net carrying value | 6,851,000 | ' | 6,851,000 | ' | 8,350,000 | ' |
Amortization expense | 500,000 | 183,000 | 1,499,000 | 183,000 | ' | ' |
Customer relationships [Member] | ' | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '5 years 3 months 18 days | ' | '5 years 3 months 18 days | ' |
Cost | 6,140,000 | ' | 6,140,000 | ' | 6,140,000 | ' |
Accumulated amortization | 2,280,000 | ' | 2,280,000 | ' | 702,000 | ' |
Net carrying value | 3,860,000 | ' | 3,860,000 | ' | 5,438,000 | ' |
Amortization expense | 526,000 | 175,000 | 1,578,000 | 175,000 | ' | ' |
Order backlog [Member] | ' | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '3 months 29 days | ' | '3 months 29 days | ' |
Cost | 860,000 | ' | 860,000 | ' | 860,000 | ' |
Accumulated amortization | 860,000 | ' | 860,000 | ' | 860,000 | ' |
Net carrying value | 0 | ' | 0 | ' | 0 | ' |
Amortization expense | 0 | 216,000 | 0 | 216,000 | ' | ' |
Internal use software [Member] | ' | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '3 years | ' | '3 years | ' |
Cost | 730,000 | ' | 730,000 | ' | 730,000 | ' |
Accumulated amortization | 264,000 | ' | 264,000 | ' | 81,000 | ' |
Net carrying value | 466,000 | ' | 466,000 | ' | 649,000 | ' |
Amortization expense | 61,000 | 30,000 | 183,000 | 30,000 | ' | ' |
Research and development [Member] | ' | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | $600,000 | ' | ' | ' | ' | ' |
INTANGIBLE_ASSETS_AND_GOODWILL3
INTANGIBLE ASSETS AND GOODWILL - (Details 2) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Roll Forward] | ' | ' | ' | ' |
Goodwill | ' | ' | ' | $8,168 |
Accumulated impairment losses | ' | ' | ' | -3,106 |
Goodwill, beginning of period | 32,261 | 32,379 | 32,379 | 5,062 |
Acquisition of NET | 27,199 | ' | ' | ' |
Goodwill, end of period | $32,261 | $32,379 | $32,379 | $5,062 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES - (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Employee compensation and related costs | $16,640 | $15,799 |
Other | 9,327 | 10,413 |
Total | $25,967 | $26,212 |
RESTRUCTURING_ACCRUAL_Details
RESTRUCTURING ACCRUAL - (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Jun. 28, 2013 | Mar. 29, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | |
Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | Facilities [Member] | Facilities [Member] | Employee Severance and Facilities [Member] | Employee Severance and Facilities [Member] | Employee Severance and Facilities [Member] | Scenario, Forecast [Member] | ||||||
Employee Severance and Facilities [Member] | ||||||||||||||
RESTRUCTURING ACCRUAL | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued restructuring | $2,100,000 | ' | $2,100,000 | ' | $2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | ' | ' | ' | 1,135,000 | 1,135,000 | ' | 4,100,000 | ' | ' | 5,235,000 | ' |
Restructuring | 1,140,000 | 1,992,000 | 4,787,000 | 1,992,000 | 7,675,000 | 1,434,000 | 1,900,000 | 4,478,000 | 264,000 | 309,000 | 1,200,000 | 1,700,000 | 4,787,000 | 2,000,000 |
Cash payments | ' | ' | ' | ' | ' | ' | ' | -3,435,000 | ' | -1,102,000 | ' | ' | -4,537,000 | ' |
Balance at the end of the period | ' | ' | ' | ' | ' | ' | ' | $2,178,000 | ' | $3,307,000 | $5,485,000 | ' | $5,485,000 | ' |
DEBT_Details
DEBT - (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Aggregate principal amounts remaining outstanding | $2,380 | $2,380 |
STOCKHOLDER_RIGHTS_PLAN_Detail
STOCKHOLDER RIGHTS PLAN (Details) | Sep. 27, 2013 | Jun. 26, 2013 |
Class of Warrant or Right [Line Items] | ' | ' |
Minimum percentage of ownership for rights to be exercisable | ' | 15.00% |
Preferred Stock [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Dividend of right per common stock | ' | 1 |
Share of preferred stock issued upon conversion | ' | 0.001 |
Exerice price per right | 25 | ' |
COMMON_STOCK_REPURCHASES_Detai
COMMON STOCK REPURCHASES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |
Share data in Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Jul. 29, 2013 |
Common Stock [Member] | ||||
Class of Stock [Line Items] | ' | ' | ' | ' |
Stock buyback program authorized amount | ' | ' | ' | $100,000,000 |
Payments for Repurchase of Common Stock | $37,340,000 | $37,340,000 | $0 | ' |
Stock Repurchased and Retired During Period, Shares | ' | 10.8 | ' | ' |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS - (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||
Jun. 12, 2013 | Feb. 15, 2013 | Mar. 29, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Feb. 15, 2013 | Sep. 27, 2013 | Feb. 15, 2013 | Aug. 07, 2012 | Feb. 15, 2013 | Aug. 07, 2012 | Feb. 14, 2013 | Sep. 27, 2013 | Mar. 29, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | |
executives | executives | Product cost of revenue [Member] | Product cost of revenue [Member] | Product cost of revenue [Member] | Product cost of revenue [Member] | Service cost of revenue [Member] | Service cost of revenue [Member] | Service cost of revenue [Member] | Service cost of revenue [Member] | Research and development [Member] | Research and development [Member] | Research and development [Member] | Research and development [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Stock options [Member] | Stock options [Member] | Restricted stock awards [Member] | Performance share awards [Member] | Performance share awards [Member] | Raymond P. Dolan, President and Chief Executive Officer [Member] | Raymond P. Dolan, President and Chief Executive Officer [Member] | Raymond P. Dolan, President and Chief Executive Officer [Member] | Raymond P. Dolan, President and Chief Executive Officer [Member] | Raymond P. Dolan, President and Chief Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Minimum [Member] | Maximum [Member] | ||||||
Performance share awards [Member] | Performance share awards [Member] | Performance share awards [Member] | Restricted stock awards [Member] | Restricted stock awards [Member] | Restricted stock awards [Member] | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized for future grant | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of executives | ' | 8 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of bonus received as common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion factor used to convert a number of shares available for grant into the entity's equity awards | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base salary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum level of achievement as a percentage of base salary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,116,398 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,043,856 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,166,397 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,398,660 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,312,336 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,282,861 | 33,282,861 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,487,280 | 30,487,280 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,228,903 | 14,228,903 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.92 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.25 | $3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.29 | $3.29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.85 | $3.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 2 months 16 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 0 months 7 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 9 months 4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,860,000 | 16,860,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,294,000 | 15,294,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,694,000 | 5,694,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of assumptions used in estimating fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rates, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.51% | 0.82% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rates, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.71% | 1.71% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57.60% | 63.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | '4 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 6 months | '6 years |
Weighted average grant date fair value of stock options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.58 | $1.49 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic values of stock options exercised (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 398,000 | 1,185,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from the exercise of stock options (in dollars) | ' | ' | ' | ' | ' | 2,393,000 | 151,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,056,000 | 2,393,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in unvested restricted stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 617,203 | ' | 421,348 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,334,086 | ' | 1,984,500 | ' | ' | 183,824 | 421,348 | 280,899 | 33,000 | 40,000 | 73,000 | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -634,514 | ' | -954,292 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -54,039 | ' | -140,449 | ' | ' | ' | ' | -140,449 | ' | ' | ' | ' | ' |
Unvested balance at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,262,736 | ' | 1,311,107 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant-date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.45 | ' | $1.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.82 | ' | $2.72 | ' | ' | $2.72 | $1.78 | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.56 | ' | $2.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.66 | ' | $1.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.77 | ' | $2.62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation (in dollars) | ' | ' | ' | 4,373,000 | 2,400,000 | 13,137,000 | 6,540,000 | 46,000 | 41,000 | 128,000 | 130,000 | 299,000 | 211,000 | 761,000 | 595,000 | 903,000 | 524,000 | 2,402,000 | 1,773,000 | 1,313,000 | 500,000 | 3,631,000 | 1,458,000 | 1,812,000 | 1,124,000 | 6,215,000 | 2,584,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the assumed awards attributable to future stock-based compensation expense | ' | ' | ' | $26,700,000 | ' | $26,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected period for unrecognized expense | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MAJOR_CUSTOMERS_Details
MAJOR CUSTOMERS - (Details) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | |
Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Accounts receivable balance [Member] | Accounts receivable balance [Member] | Accounts receivable balance [Member] | Accounts receivable balance [Member] | |
Less than [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | ||
AT&T [Member] | AT&T [Member] | AT&T [Member] | Level 3 Communications [Member] | customer | customer | ||||
MAJOR CUSTOMERS | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | 18.00% | 17.00% | 24.00% | 12.00% | ' | 21.00% | 25.00% | ' |
Number of major customers | ' | ' | ' | ' | ' | ' | 1 | ' | 1 |
Threshold percentage | 10.00% | ' | ' | ' | ' | 10.00% | ' | ' | ' |
GEOGRAPHIC_INFORMATION_Summary
GEOGRAPHIC INFORMATION - Summary of Revenue by Geographic Area as a Percentage of Total Revenue (Details) (Revenue [Member], Geographical area [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 66.00% | 76.00% | 70.00% | 75.00% |
Europe, Middle East and Africa [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 15.00% | 13.00% | 12.00% | 10.00% |
Japan [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 8.00% | ' | 11.00% | 9.00% |
Other Asia Pacific [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 7.00% | 10.00% | 5.00% | 5.00% |
Other [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 4.00% | 1.00% | 2.00% | 1.00% |