Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 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-K | ' | ' |
Document Period End Date | 31-Dec-11 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 266,388,259 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $529,226 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $72,423 | $88,004 |
Marketable securities | 138,882 | 161,905 |
Accounts receivable, net | 64,463 | 68,728 |
Inventory | 21,793 | 25,614 |
Deferred income taxes | 656 | 686 |
Other current assets | 15,073 | 16,520 |
Total current assets | 313,290 | 361,457 |
Property and equipment, net | 19,102 | 23,767 |
Intangible assets, net | 10,091 | 15,237 |
Goodwill | 32,379 | 32,379 |
Investments | 34,364 | 29,698 |
Deferred income taxes | 2,121 | 1,011 |
Other assets | 6,137 | 7,191 |
Total assets | 417,484 | 470,740 |
Current liabilities: | ' | ' |
Accounts payable | 11,164 | 10,643 |
Accrued expenses | 34,026 | 26,212 |
Current portion of deferred revenue | 41,169 | 37,094 |
Convertible subordinated note | 2,380 | 0 |
Current portion of long-term liabilities | 672 | 763 |
Total current liabilities | 89,411 | 74,712 |
Deferred revenue | 10,528 | 11,647 |
Deferred income taxes | 922 | 249 |
Convertible subordinated note | 0 | 2,380 |
Other long-term liabilities | 4,371 | 5,706 |
Total liabilities | 105,232 | 94,694 |
Commitments and contingencies (Note 21) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 600,000,000 shares authorized; 266,226,845 shares issued and outstanding at December 31, 2013; 280,963,298 shares issued and outstanding at December 31, 2012 | 266 | 281 |
Additional paid-in capital | 1,280,442 | 1,321,385 |
Accumulated deficit | -974,492 | -952,373 |
Accumulated other comprehensive income | 6,036 | 6,753 |
Total stockholders' equity | 312,252 | 376,046 |
Total liabilities and stockholders' equity | $417,484 | $470,740 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
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 | 266,226,845 | 280,963,298 |
Common stock, shares outstanding | 266,226,845 | 280,963,298 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue: | ' | ' | ' |
Product | $167,272 | $153,326 | $154,373 |
Service | 109,461 | 100,808 | 105,323 |
Total revenue | 276,733 | 254,134 | 259,696 |
Cost of revenue: | ' | ' | ' |
Product | 59,235 | 58,109 | 57,929 |
Service | 45,038 | 53,431 | 55,646 |
Total cost of revenue | 104,273 | 111,540 | 113,575 |
Gross profit | 172,460 | 142,594 | 146,121 |
Operating expenses: | ' | ' | ' |
Research and development | 69,559 | 67,341 | 64,410 |
Sales and marketing | 78,365 | 76,341 | 59,279 |
General and administrative | 40,107 | 34,283 | 34,957 |
Acquisition-related | 93 | 5,496 | 0 |
Restructuring | 5,411 | 7,675 | 0 |
Total operating expenses | 193,535 | 191,136 | 158,646 |
Loss from operations | -21,075 | -48,542 | -12,525 |
Interest income, net | 405 | 612 | 1,287 |
Other income, net | 3 | 202 | 0 |
Loss before income taxes | -20,667 | -47,728 | -11,238 |
Income tax provision | -1,452 | -2,441 | -1,465 |
Net loss | ($22,119) | ($50,169) | ($12,703) |
Loss per share: | ' | ' | ' |
Basic (in dollars per share) | ($0.08) | ($0.18) | ($0.05) |
Diluted (in dollars per share) | ($0.08) | ($0.18) | ($0.05) |
Shares used to compute loss per share: | ' | ' | ' |
Basic (in shares) | 278,428 | 280,090 | 278,540 |
Diluted (in shares) | 278,428 | 280,090 | 278,540 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' |
Net loss | ($22,119) | ($50,169) | ($12,703) |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Foreign currency translation adjustments | -672 | -535 | 390 |
Unrealized gain (loss) on available-for-sale marketable securities, net of tax | -45 | -19 | 22 |
Other comprehensive income (loss), net of tax | -717 | -554 | 412 |
Comprehensive loss, net of tax | ($22,836) | ($50,723) | ($12,291) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity and Comprehensive Loss (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Comprehensive Loss [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $418,956 | $277 | $1,301,285 | ($889,501) | $6,895 | ' |
Balance (in shares) at Dec. 31, 2010 | ' | 277,170,262 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | 1,780 | 1 | 1,779 | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | 637,403 | ' | ' | ' | ' |
Exercise of stock options | 818 | ' | 818 | ' | ' | ' |
Exercise of stock options (in shares) | ' | 452,617 | ' | ' | ' | ' |
Vesting of restricted stock | 1 | 1 | ' | ' | ' | ' |
Vesting of restricted stock (in shares) | ' | 1,269,393 | ' | ' | ' | ' |
Issuance of vested performance-based stock awards | 0 | ' | ' | ' | ' | ' |
Issuance of vested performance-based stock awards (in shares) | ' | 312,556 | ' | ' | ' | ' |
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations | -1,439 | ' | -1,439 | ' | ' | ' |
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares) | ' | -523,835 | ' | ' | ' | ' |
Stock-based compensation expense | 7,476 | ' | 7,476 | ' | ' | ' |
Assumption of equity awards in connection with acquisition of Network Technologies, Inc. | 0 | ' | ' | ' | ' | ' |
Unrealized loss on available-for-sale marketable securities, net of tax | 22 | ' | ' | ' | 412 | 412 |
Net loss | -12,703 | ' | ' | -12,703 | ' | -12,703 |
Balance at Dec. 31, 2011 | 415,301 | 279 | 1,309,919 | -902,204 | 7,307 | ' |
Balance (in shares) at Dec. 31, 2011 | ' | 279,318,396 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | 1,990 | 1 | 1,989 | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | 826,907 | ' | ' | ' | ' |
Exercise of stock options | 254 | ' | 254 | ' | ' | ' |
Exercise of stock options (in shares) | ' | 212,502 | ' | ' | ' | ' |
Vesting of restricted stock | 1 | 1 | ' | ' | ' | ' |
Vesting of restricted stock (in shares) | ' | 767,523 | ' | ' | ' | ' |
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations | -342 | ' | -342 | ' | ' | ' |
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares) | ' | -162,030 | ' | ' | ' | ' |
Stock-based compensation expense | 8,673 | ' | 8,673 | ' | ' | ' |
Assumption of equity awards in connection with acquisition of Network Technologies, Inc. | 892 | ' | ' | ' | ' | ' |
Unrealized loss on available-for-sale marketable securities, net of tax | -19 | ' | ' | ' | -554 | -554 |
Net loss | -50,169 | ' | ' | -50,169 | ' | -50,169 |
Balance at Dec. 31, 2012 | 376,046 | 281 | 1,321,385 | -952,373 | 6,753 | ' |
Balance (in shares) at Dec. 31, 2012 | 280,963,298 | 280,963,298 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | 2,210 | 1 | 2,209 | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | 764,369 | ' | ' | ' | ' |
Exercise of stock options | 2,669 | 1 | 2,668 | ' | ' | ' |
Exercise of stock options (in shares) | ' | 1,304,918 | ' | ' | ' | ' |
Vesting of restricted stock | 1 | 1 | ' | ' | ' | ' |
Vesting of restricted stock (in shares) | ' | 908,485 | ' | ' | ' | ' |
Issuance of vested performance-based stock awards | 1 | 1 | ' | ' | ' | ' |
Issuance of vested performance-based stock awards (in shares) | ' | 1,205,858 | ' | ' | ' | ' |
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations | -1,300 | ' | -1,300 | ' | ' | ' |
Shares of restricted stock returned to the Company under net share settlements to satisfy tax withholding obligations (in shares) | ' | -405,189 | ' | ' | ' | ' |
Repurchase of common stock | -59,674 | -19 | -59,655 | ' | ' | ' |
Repurchase of common stock, shares | ' | -18,514,894 | ' | ' | ' | ' |
Stock-based compensation expense | 14,504 | ' | 14,504 | ' | ' | ' |
Assumption of equity awards in connection with acquisition of Network Technologies, Inc. | 0 | ' | ' | ' | ' | ' |
Reclassification of liability to equity for cash bonuses converted to equity awards | 631 | ' | ' | ' | ' | 631 |
Unrealized loss on available-for-sale marketable securities, net of tax | -45 | ' | ' | ' | -717 | -717 |
Net loss | -22,119 | ' | ' | -22,119 | ' | -22,119 |
Balance at Dec. 31, 2013 | $312,252 | $266 | $1,280,442 | ($974,492) | $6,036 | ' |
Balance (in shares) at Dec. 31, 2013 | 266,226,845 | 266,226,845 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($22,119) | ($50,169) | ($12,703) |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization of property and equipment | 12,329 | 12,891 | 11,629 |
Amortization of intangible assets | 4,546 | 2,773 | 400 |
Stock-based compensation | 17,873 | 9,003 | 7,865 |
Impairment of intangible assets | 600 | 0 | 0 |
Write-off of prepaid royalties for software licenses | 0 | 7,083 | 0 |
Loss on disposal of property and equipment | 54 | 344 | 24 |
Deferred income taxes | -553 | 785 | 66 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 3,536 | -8,924 | -217 |
Inventory | 4,150 | -7,713 | 22,900 |
Other operating assets | 6,200 | 1,669 | 10,562 |
Accounts payable | -555 | -4,949 | -3,537 |
Accrued expenses and other long-term liabilities | 4,768 | 937 | -7,377 |
Deferred revenue | 3,278 | -3,039 | -35,522 |
Net cash provided by (used in) operating activities | 34,107 | -39,309 | -5,910 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -6,949 | -10,540 | -13,173 |
Business acquisition, net of cash acquired | 0 | -35,508 | 0 |
Purchases of marketable securities | -182,491 | -159,828 | -219,800 |
Sale/maturities of marketable securities | 196,980 | 258,278 | 282,041 |
Increase in restricted cash | 0 | 0 | -310 |
Net cash provided by investing activities | 7,540 | 52,402 | 48,758 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from sale of common stock in connection with employee stock purchase plan | 1,888 | 1,693 | 1,513 |
Proceeds from exercise of stock options | 2,669 | 254 | 818 |
Payment of tax withholding obligations related to net share settlements of restricted stock awards | -1,300 | -342 | -1,439 |
Repurchase of common stock | -59,674 | 0 | 0 |
Principal payments of capital lease obligations | -117 | -120 | -88 |
Settlement of redeemable convertible subordinated debentures | 0 | -31,824 | 0 |
Net cash (used in) provided by financing activities | -56,534 | -30,339 | 804 |
Effect of exchange rate changes on cash and cash equivalents | -694 | -201 | -702 |
Net (decrease) increase in cash and cash equivalents | -15,581 | -17,447 | 42,950 |
Cash and cash equivalents, beginning of year | 88,004 | 105,451 | 62,501 |
Cash and cash equivalents, end of period | 72,423 | 88,004 | 105,451 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Interest paid | 89 | 780 | 10 |
Income taxes paid | 1,569 | 2,388 | 926 |
Income tax refunds received | 164 | 67 | 827 |
Supplemental disclosure of non-cash investing activities: | ' | ' | ' |
Capital expenditures incurred, but not yet paid | 1,446 | 305 | 550 |
Property and equipment acquired under capital lease | 113 | 40 | 119 |
Business acquisition purchase consideration - assumed equity awards | 0 | 892 | 0 |
Supplemental disclosure of non-cash financing activities: | ' | ' | ' |
Total fair value of restricted stock awards, restricted stock units and performance-based stock awards on date vested | $6,816 | $1,640 | $4,331 |
NATURE_OF_THE_BUSINESS
NATURE OF THE BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF THE BUSINESS | ' |
NATURE OF THE 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 increasingly, to enterprises to help them advance, protect and unify their communications and improve collaboration. Sonus helps many of the world's leading communications service providers and enterprises embrace the next generation of Session Initiation Protocol ("SIP")-based solutions, including Voice over Internet Protocol ("VoIP"), video and Unified Communications ("UC") through secure, reliable and scalable Internet Protocol ("IP") networks. Sonus products include session border controllers, policy/routing servers, media and 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. Sonus solutions help the Company's customers realize the intended value and benefits of UC platforms such as Microsoft Lync by enabling disparate communications environments, commonplace in most enterprises today, to work seamlessly together. Likewise, Sonus solutions facilitate the deployment and adoption of cloud-based communications. | |
The Company utilizes both direct and indirect sales channels to reach its target customers. 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_AND_SUMM
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
BASIS OF PRESENTATION | ||||||||||||
The consolidated financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States ("GAAP"). | ||||||||||||
Effective in 2012, the Company began to report its first, second and third quarters on a 4-4-5 basis, with the quarter ending on the Friday closest to the last day of each third month. In 2013, the Company's first quarter ended on March 29, 2013, the second quarter ended on June 28, 2013 and the third quarter ended on September 27, 2013. In 2012, the Company's first quarter ended on March 30, 2012, the second quarter ended on June 29, 2012 and the third quarter ended on September 28, 2012. The Company's fiscal year ends on December 31. | ||||||||||||
On August 24, 2012, the Company completed the acquisition of Network Equipment Technologies, Inc. (“NET”). The financial results of NET have been included in the Company's consolidated financial statements for the year ended December 31, 2013 and in the year ended December 31, 2012 for the period subsequent to its acquisition. | ||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Principles of Consolidation | ||||||||||||
The accompanying consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. All 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, 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. | ||||||||||||
Business Combinations | ||||||||||||
The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired in the business combination that are not individually identified and separately recognized. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company recognizes revenue from sales when persuasive evidence of an arrangement exists, delivery has occurred, the sale price is fixed or determinable, and collectability of the related receivable is probable. In instances where customer acceptance is required, revenue is deferred until the acceptance has been achieved. When fees for products or services are not fixed and determinable, the Company defers the recording of receivables, deferred revenue and revenue until such time as the fees become due or are collected. | ||||||||||||
Revenue from maintenance and support services is recognized ratably over the service period. Maintenance revenue is deferred until the associated product is accepted by the customer and all other revenue recognition criteria have been met. Maintenance and support services include telephone support, return and repair support and unspecified rights to product upgrades and enhancements. Revenue from other professional services is typically recognized as the services are delivered if all other revenue recognition criteria have been met. | ||||||||||||
The Company's products typically have both software and non-software components that function together to deliver the products' essential functionality. In addition, hardware sold generally cannot be used apart from the software. Therefore, the Company considers its principal products to be both software and hardware-related. Many of the Company's sales involve multiple element arrangements that include product, maintenance and various professional services. | ||||||||||||
Beginning January 1, 2011, the Company adopted the provisions of ASU No. 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”) and ASU No. 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements (“ASU 2009-14”) for new and materially modified arrangements that contain tangible products (hardware) with software elements, which comprise the majority of the Company's revenue transactions. For multiple element arrangements entered into subject to the guidance set forth in ASU 2009-13, arrangement consideration is allocated to each element based on the relative selling prices of all of the elements in the arrangement using the fair value hierarchy as required by ASU 2009-13. The Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations, or subject to customer-specific return or refund privileges. | ||||||||||||
For multiple-element arrangements that include both software-only products and non-software products, the Company allocates the total arrangement consideration to the software-only deliverables as a group and to the individual non-software deliverables based on their relative selling prices. If an undelivered element (such as maintenance and support services) relates to both the software-only and non-software deliverables, the Company bifurcates the consideration allocated to the undelivered element (such as maintenance and support services) into a non-software component and the software-only component using the relative selling price method. The consideration allocated to the non-software and software-only deliverables is recognized in accordance with the guidance as discussed in this note. | ||||||||||||
For transactions entered into prior to January 1, 2011 and prospectively for software-only sales, the Company recognizes revenue in accordance with ASC No. 985-605, Software - Revenue Recognition (“ASC 985-605”). Under this guidance, revenue for any undelivered elements that are considered not essential to the functionality of the product and for which vendor-specific objective evidence of selling price (“VSOE”) has been established is deferred and recognized upon delivery utilizing the residual method. If the Company has undelivered product for which VSOE has not been established, it defers all revenue on the entire arrangement until VSOE is established or until such elements are delivered, provided that all other revenue recognition criteria are met. If the Company has undelivered services for which VSOE has not been established, the entire arrangement is recognized as revenue over the longest remaining service period from the point in time that all services have commenced and all products have been delivered, provided that all other revenue recognition criteria are met. | ||||||||||||
The Company establishes VSOE based upon the price charged when the same element is sold separately or established by management having the relevant pricing authority. The Company has VSOE for its maintenance and support services and certain professional services. When VSOE exists it is used to determine the selling price of a deliverable. The Company has not been able to establish VSOE of any of its products and for certain of its services because the Company has not sold such products or services on a stand-alone basis, has not priced its products or services within a narrow range, or has limited sales history. | ||||||||||||
When VSOE is not established, the Company attempts to establish the selling price of each element based on third-party evidence of selling price (“TPE”). The Company's solution typically differs from that of its peers as there are no similar or interchangeable competitor products or services. The Company's various product, service and maintenance offerings contain a significant level of unique features and functionality and therefore, comparable pricing of competitors' products and services with similar functionality cannot be obtained. Accordingly, the Company is not able to determine TPE for its products or services. | ||||||||||||
When the Company is unable to establish selling price using VSOE or TPE, the Company uses estimated selling price (“ESP”) in its allocation of arrangement consideration for the relevant deliverables. The objective of ESP is to determine the price at which the Company would transact a sale if a product or service was sold on a stand-alone basis. The Company determines ESP for its products and certain services by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional-specific market factors, profit objectives and historical pricing practices for such deliverables. The determination of ESP is a formal process within the Company that includes review and approval by the Company's management. | ||||||||||||
Deferred revenue typically includes customer deposits and amounts associated with partial product shipments and maintenance or service contracts. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is reported with long-term liabilities in the condensed consolidated balance sheets. The Company defers recognition of incremental direct costs, such as cost of goods, third-party installations and commissions, until recognition of the related revenue. Such costs are classified as current assets if the deferred revenue is initially classified as current and noncurrent assets if the related deferred revenue is initially classified as long-term. | ||||||||||||
The Company excludes any taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (i.e., sales, use, value added) from its revenue and costs. Reimbursement received for out-of-pocket expenses and shipping costs is recorded as revenue. | ||||||||||||
The Company sells the majority of its products directly to its end customers. For products sold to resellers and distributors, the Company recognizes revenue on a sell-through basis. | ||||||||||||
Financial Instruments | ||||||||||||
The carrying amounts of Sonus' financial instruments, which include cash equivalents, marketable securities, investments, accounts receivable, accounts payable and convertible subordinated debt approximate their fair values. | ||||||||||||
All investments in marketable securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in Accumulated other comprehensive income (loss), which is a component of stockholders' equity. Unrealized losses that are determined to be other-than-temporary, based on current and expected market conditions, are recognized in earnings. Declines in fair value determined to be credit-related are charged to earnings. The cost of marketable securities sold is determined by the specific identification method. | ||||||||||||
Financial instruments with remaining maturities or that are due within one year from the balance sheet date are classified as current. Financial instruments with remaining maturities or that are payable more than one year from the balance sheet date are classified as noncurrent. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash equivalents are stated at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in Accumulated other comprehensive income (loss). Cash equivalents are liquid securities that have remaining maturities of three months or less at the date of purchase. | ||||||||||||
Restricted Cash | ||||||||||||
The Company classifies as restricted cash all cash pledged as collateral to secure long-term obligations and all cash whose use is otherwise limited by contractual provisions. Restricted cash is recorded within other assets on the consolidated balance sheet. | ||||||||||||
Foreign Currency Translation | ||||||||||||
For foreign subsidiaries where the functional currency is the local currency, assets and liabilities are translated into U.S. dollars at the current exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during each period. Translation adjustments for these subsidiaries are included in Accumulated other comprehensive income (loss). | ||||||||||||
For foreign subsidiaries where the functional currency is the U.S. dollar, monetary assets and liabilities are translated into U.S. dollars at the current exchange rate on the balance sheet date. Nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Revenue and expense items are translated at average rates of exchange prevailing during each period. | ||||||||||||
Realized and unrealized foreign currency gains and losses arising from transactions denominated in currencies other than the subsidiary's functional currency are reflected in earnings with the exception of intercompany transactions considered to be of a long-term investment nature. | ||||||||||||
The components of foreign currency translation gains (losses), which are reported as a component of General and administrative expenses in the consolidated statements of operations, for the years ended December 31, 2013, 2012 and 2011 are as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Transaction losses | $ | (746 | ) | $ | (1,365 | ) | $ | (1,293 | ) | |||
Remeasurement gains (losses) | (164 | ) | 767 | 9 | ||||||||
$ | (910 | ) | $ | (598 | ) | $ | (1,284 | ) | ||||
Inventory | ||||||||||||
Inventory is recorded at the lower of cost or market value using the first-in, first-out convention. The Company reduces the carrying value of inventory for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. | ||||||||||||
Sonus writes down evaluation equipment at the time of shipment to its customers, as it is probable that the inventory value will not be realized. | ||||||||||||
Deferred product costs represent deferred cost of revenue for product shipments to customers prior to satisfaction of Sonus' revenue recognition criteria. Such costs are classified as inventory if the related deferred revenue is initially classified as current. Deferred product costs are recorded in Other assets if the related deferred revenue is initially classified as long-term, and remain a component of noncurrent assets until such costs are recognized in the consolidated statement of operations. | ||||||||||||
Property and Equipment | ||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from two to five years. Leasehold improvements are amortized over the lesser of the lease term or five years. When an asset is sold or retired, the cost and related accumulated depreciation or amortization are eliminated, and the resulting gain or loss, if any, is recognized in income (loss) from operations in the consolidated statement of operations. The Company reviews property and equipment for impairment in the same manner as intangible assets discussed below. | ||||||||||||
Software development costs associated with internal use software are incurred in three stages of development: the preliminary project stage, the application development stage and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Certain internal and external qualifying costs incurred during the application development stage are capitalized as property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life of three years, beginning when the software is ready for its intended use. | ||||||||||||
Intangible Assets and Goodwill | ||||||||||||
Intangible assets are comprised of intellectual property purchased in 2010 which is amortized over its estimated useful life of five years, and intangible assets arising from the August 24, 2012 acquisition of NET, comprised of developed technology, customer relationships, order backlog and internal use software, which are amortized over their estimated useful lives of four months to approximately six years. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable based upon the estimated undiscounted cash flows. Recoverability of intangible assets with estimated lives and other long-lived assets is measured by a comparison of the carrying amount of an asset or asset group to future net undiscounted cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the Company will recognize an impairment loss for the amount by which the carrying value of the asset or asset group exceeds the related estimated fair value. Estimated fair value is based on either discounted future operating cash flows or appraised values, depending on the nature of the asset. In the second quarter of 2013, the Company recorded an impairment charge of $0.6 million to write down the carrying value of one of its intellectual property intangible assets to zero. See Note 9 for additional information regarding this expense. | ||||||||||||
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested for impairment at least annually or if indicators of potential impairment exist by comparing the fair value of the Company's reporting unit to its carrying value. | ||||||||||||
The Company adopted ASU 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment ("ASU 2011-08") for its 2013 annual impairment test. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. This qualitative assessment included the review of macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance and other related facts and circumstances that could indicate that a more detailed assessment would be required. If it is concluded that it is more likely than not that the fair value is less than the carrying value, then it is necessary to perform the currently prescribed two-step goodwill impairment test. Alternatively, if it is concluded that it is not more likely than not that the fair value exceeds carrying value, the currently prescribed two-step goodwill impairment test is not required. | ||||||||||||
The Company's annual testing for impairment of goodwill is completed as of November 30 of each year. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. The Company performed its qualitative assessment for 2013 and concluded that it was not more likely than not that the fair value of our reporting unit was less than its carrying value. The Company's testing for 2012 and 2011 also indicated that no impairment of goodwill existed. | ||||||||||||
Other Assets | ||||||||||||
Other assets are primarily comprised of the long-term portion of deferred cost of goods sold, prepaid expenses and deposits. In the fourth quarter of 2012, the Company wrote off $7.1 million of prepaid royalties related to products from which the Company does not expect to derive future sales. This amount is included as a component of Cost of revenue - product in the consolidated statement of operations for the year ended December 31, 2012. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company's stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited. The Company uses the Black-Scholes valuation model for estimating the fair value on the date of grant of stock options. The fair value of stock option awards is affected by the Company's stock price as well as valuation assumptions, including the volatility of Sonus' stock price, expected term of the option, risk-free interest rate and expected dividends. | ||||||||||||
Research and Development Costs | ||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||
Software Development Costs | ||||||||||||
The costs for the development of new software and substantial enhancements to existing software are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized until the product is available for general release. The Company has determined that technological feasibility is established at the time a working model of the software is completed. The Company's process for developing software is essentially completed concurrently with the establishment of technological feasibility. Accordingly, no costs have been capitalized to date. | ||||||||||||
Concentrations of Credit Risk and Single Source Suppliers | ||||||||||||
The financial instruments that potentially subject Sonus to concentrations of credit risk are cash, cash equivalents, marketable debt securities and accounts receivable. The Company's cash equivalents and marketable debt securities were managed by two financial institutions at both December 31, 2013 and 2012. | ||||||||||||
Certain components and software licenses from third parties used in Sonus' products are procured from single sources of supply. The failure of a supplier, including a subcontractor, to deliver on schedule could delay or interrupt Sonus' delivery of products and thereby materially adversely affect Sonus' revenues and operating results. | ||||||||||||
Sonus had three contract manufacturers at December 31, 2013. Failure to manage the activities of these manufacturers or any disruption in these relationships could result in the disruption in the supply of its products and in delays in the fulfillment of the Company's customer orders. | ||||||||||||
Advertising Costs | ||||||||||||
Advertising costs are expensed as incurred. Advertising expenses were $2.7 million for the year ended December 31, 2013, $1.1 million for the year ended December 31, 2012 and $0.2 million for the year ended December 31, 2011. | ||||||||||||
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. | ||||||||||||
Loss Contingencies and Reserves | ||||||||||||
Loss Contingencies. Sonus is subject to ongoing business risks arising in the ordinary course of business that affect the estimation process of the carrying value of assets, the recording of liabilities and the possibility of various loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred or an asset has been impaired and the amount of loss can be reasonably estimated. Sonus regularly evaluates current information available to determine whether such amounts should be adjusted and records changes in estimates in the period they become known. | ||||||||||||
Allowance for Doubtful Accounts. Sonus establishes billing terms at the time it negotiates purchase agreements with its customers. Sonus monitors its outstanding receivables for timely payments and potential collection issues. An allowance for doubtful accounts is estimated based on Sonus' assessment of the collectability of specific customer accounts. | ||||||||||||
Accrual for Royalties. Sonus accrues for royalties for technology that it licenses from vendors based on established royalty rates and usage. In certain cases, Sonus has been contacted by third parties who claim that Sonus' products infringe on certain intellectual property of the third party. Sonus evaluates these claims and accrues amounts only when it is probable that the obligation has been incurred and the amounts are reasonably estimable. | ||||||||||||
Reserve for Litigation and Legal Fees. Sonus is subject to various legal claims. Sonus reserves for legal contingencies and legal fees when it is probable that a loss has been incurred and the amounts are reasonably estimable. | ||||||||||||
Accounting for Income Taxes | ||||||||||||
Deferred tax assets and liabilities are recognized for the expected future consequences of events that have been reflected in the consolidated financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. Such differences arise primarily from stock-based compensation, depreciation, accruals and reserves, acquired intangible assets, deferred revenue, tax credits, net operating loss carryforwards and allowances for accounts receivable. Sonus records valuation allowances to reduce deferred income tax assets to the amount that is more likely than not to be realized. | ||||||||||||
Sonus has not provided for U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries, as the Company plans to permanently reinvest these amounts. Cumulative undistributed foreign earnings were approximately $17 million at December 31, 2013 and approximately $19 million at December 31, 2012. Generally, the undistributed foreign earnings become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. The Company does not believe it is practicable to estimate with reasonable accuracy the hypothetical amount of the unrecognized deferred tax liability on its undistributed foreign earnings given the large number of tax jurisdictions involved and the many factors and assumptions required to estimate the amount of the U.S. federal income tax on the undistributed earnings after reduction for the available foreign tax credits. | ||||||||||||
The Company determines whether it is more likely than not that a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, no amount of the benefit attributable to the position is recognized. The tax benefit to be recognized of any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the contingency. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. | ||||||||||||
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 effective for tax years beginning on or after January 1, 2014. The Company is currently assessing these rules and the impact they will have on its consolidated financial statements, if any. | ||||||||||||
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. 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 consolidated financial statements. |
ACQUISITION_OF_NET
ACQUISITION OF NET | 12 Months Ended | |||||||
Dec. 31, 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 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 expanded the Company's portfolio of Session Border Controller (“SBC”) solutions for enterprise customers and brought engineering resources, broader channel capability and a broad U.S. federal government installed base to leverage into SIP-enabled platforms. | ||||||||
The transaction has been accounted for as a business combination, and the financial results of NET have been included in the Company's consolidated financial statements for the period subsequent to its acquisition. The Company's financial results for year ended December 31, 2012 include $17.3 million of revenue and $9.5 million of net loss attributable to NET for the period subsequent to its acquisition. | ||||||||
The Company finalized the valuation of acquired assets, identifiable intangible assets, uncertain tax liabilities and certain accrued liabilities in the third quarter of 2013. Based on new information gathered about facts and circumstances that existed as of the NET Acquisition Date, 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 the consolidated statements of operations, of comprehensive loss, of stockholders' equity or of cash flows. | ||||||||
During the second quarter of 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 (see Note 16) | 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 9). | ||||||||
The identifiable intangible assets as of the NET Acquisition Date are as follows (in thousands): | ||||||||
Developed technology | $ | 9,080 | ||||||
Customer relationships | 6,140 | |||||||
Order backlog | 860 | |||||||
Internal use software | 730 | |||||||
$ | 16,810 | |||||||
Pro Forma Results | ||||||||
The following unaudited pro forma information presents the condensed combined results of operations of the Company and NET for the years ended December 31, 2012 and 2011 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 of historical NET revenue for the fair value adjustment related to acquired deferred revenue, an increase in amortization expense for the acquired identifiable intangible assets, a decrease in historical NET interest expense reflecting the extinguishment of certain of NET's debt as a result of the acquisition and the elimination of transaction costs included in the Company's and NET's historical results, directly attributable to the acquisition from the year ended December 31, 2012 and inclusion of such costs in the year ended December 31, 2011. | ||||||||
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 company that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amounts): | ||||||||
Year ended | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Revenue | $ | 284,970 | $ | 308,660 | ||||
Net loss | $ | (62,148 | ) | $ | (60,984 | ) | ||
Loss per share | $ | (0.22 | ) | $ | (0.22 | ) | ||
Acquisition-Related Costs | ||||||||
Acquisition-related costs include those costs related to the acquisition that would otherwise not have been incurred by the Company. These costs 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 year ended December 31, 2012 are as follows (in thousands): | ||||||||
Professional and services fees | $ | 3,571 | ||||||
Change of control agreements | 1,925 | |||||||
$ | 5,496 | |||||||
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended | ||||||||
Dec. 31, 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): | |||||||||
Year ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Weighted average shares outstanding—basic | 278,428 | 280,090 | 278,540 | ||||||
Potential dilutive common shares | — | — | — | ||||||
Weighted average shares outstanding—diluted | 278,428 | 280,090 | 278,540 | ||||||
Options to purchase the Company's common stock and unvested shares of restricted stock and performance-based stock awards aggregating 35.4 million shares for the year ended December 31, 2013, 25.7 million shares for the year ended December 31, 2012 and 24.9 million shares for the year ended December 31, 2011 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 | 12 Months Ended | |||||||||||||||
Dec. 31, 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. | ||||||||||||||||
The Company did not sell any of its available-for-sale securities during the years ended December 31, 2013, 2012 or 2011, and accordingly, no gains or losses were realized. | ||||||||||||||||
Marketable securities and investments with continuous unrealized losses for one year or greater at December 31, 2013 were nominal; however, 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. Based on its reviews, the Company does not believe that any impairment existed with its current holdings at December 31, 2013. | ||||||||||||||||
The amortized cost, gross unrealized gains and losses and fair value of the Company's marketable debt and equity securities and investments at December 31, 2013 and 2012 were comprised of the following (in thousands): | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 50,404 | $ | — | $ | — | $ | 50,404 | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,895 | $ | 15 | $ | — | $ | 47,910 | ||||||||
Corporate debt securities | 81,993 | 35 | (8 | ) | 82,020 | |||||||||||
Commercial paper | 5,647 | 2 | — | 5,649 | ||||||||||||
Certificates of deposit | 3,300 | 3 | — | 3,303 | ||||||||||||
$ | 138,835 | $ | 55 | $ | (8 | ) | $ | 138,882 | ||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 9,254 | $ | 3 | $ | — | $ | 9,257 | ||||||||
Foreign government notes | 1,250 | — | — | 1,250 | ||||||||||||
Corporate debt securities | 23,848 | 17 | (8 | ) | 23,857 | |||||||||||
$ | 34,352 | $ | 20 | $ | (8 | ) | $ | 34,364 | ||||||||
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 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 December 31, 2013 and 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 | ||||||||||||||||
December 31, 2013 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
December 31, | markets | inputs | inputs | |||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 50,404 | $ | 50,404 | $ | — | $ | — | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,910 | $ | — | $ | 47,910 | $ | — | ||||||||
Corporate debt securities | 82,020 | — | 82,020 | — | ||||||||||||
Commercial paper | 5,649 | — | 5,649 | — | ||||||||||||
Certificates of deposit | 3,303 | — | 3,303 | — | ||||||||||||
$ | 138,882 | $ | — | $ | 138,882 | $ | — | |||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 9,257 | $ | — | $ | 9,257 | $ | — | ||||||||
Foreign government notes | 1,250 | — | 1,250 | — | ||||||||||||
Corporate debt securities | 23,857 | — | 23,857 | — | ||||||||||||
$ | 34,364 | $ | — | $ | 34,364 | $ | — | |||||||||
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 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. |
ACCOUNTS_RECEIVABLE_NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
ACCOUNTS RECEIVABLE, NET | ' | |||||||||||||||
ACCOUNTS RECEIVABLE, NET | ||||||||||||||||
Accounts receivable, net, consist of the following (in thousands): | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Accounts receivable, gross | $ | 64,620 | $ | 68,728 | ||||||||||||
Allowance for doubtful accounts | (157 | ) | — | |||||||||||||
Accounts receivable, net | $ | 64,463 | $ | 68,728 | ||||||||||||
The activity in the Company's allowance for doubtful accounts is as follows (in thousands): | ||||||||||||||||
Year ended December 31, | Balance at | Charges | Write-offs | Balance at | ||||||||||||
beginning | to expense | end of | ||||||||||||||
of year | year | |||||||||||||||
2013 | $ | — | $ | 415 | $ | (258 | ) | $ | 157 | |||||||
2012 | $ | — | $ | — | $ | — | $ | — | ||||||||
2011 | $ | 313 | $ | — | $ | (313 | ) | $ | — | |||||||
INVENTORY
INVENTORY | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
INVENTORY | ||||||||
Inventory consists of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
On-hand final assemblies and finished goods inventories | $ | 19,070 | $ | 22,009 | ||||
Deferred cost of goods sold | 4,387 | 5,704 | ||||||
23,457 | 27,713 | |||||||
Less current portion | (21,793 | ) | (25,614 | ) | ||||
Noncurrent portion (included in Other assets) | $ | 1,664 | $ | 2,099 | ||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||
PROPERTY AND EQUIPMENT | ||||||||||
Property and equipment consists of the following (in thousands): | ||||||||||
December 31, | ||||||||||
Useful Life | 2013 | 2012 | ||||||||
Equipment | 3 years | $ | 80,710 | $ | 78,517 | |||||
Software | 2-3 years | 15,410 | 14,852 | |||||||
Furniture and fixtures | 3-5 years | 855 | 983 | |||||||
Leasehold improvements | Shorter of the life of the lease or estimated useful life (1-5 years) | 10,659 | 11,747 | |||||||
107,634 | 106,099 | |||||||||
Less accumulated depreciation and amortization | (88,532 | ) | (82,332 | ) | ||||||
Property and equipment, net | $ | 19,102 | $ | 23,767 | ||||||
The Company recorded depreciation and amortization expense related to property and equipment of $12.3 million for the year ended December 31, 2013, $12.9 million for the year ended December 31, 2012 and $11.6 million for the year ended December 31, 2011. | ||||||||||
Property and equipment under capital leases included in the amounts above are as follows (in thousands): | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Cost | $ | 326 | $ | 326 | ||||||
Less accumulated depreciation | (220 | ) | (194 | ) | ||||||
Property and equipment under capital leases, net | $ | 106 | $ | 132 | ||||||
The net book values of the Company's property and equipment by geographic area are as follows (in thousands): | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
United States | $ | 13,960 | $ | 16,110 | ||||||
Asia/Pacific | 4,665 | 6,811 | ||||||||
Europe | 453 | 792 | ||||||||
Other | 24 | 54 | ||||||||
$ | 19,102 | $ | 23,767 | |||||||
INTANGIBLE_ASSETS_AND_GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
INTANGIBLE ASSETS AND GOODWILL | ' | |||||||||||||
INTANGIBLE ASSETS AND GOODWILL | ||||||||||||||
The Company's intangible assets at December 31, 2013 and 2012 consist of the following (in thousands): | ||||||||||||||
31-Dec-13 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||
(years) | amortization | carrying value | ||||||||||||
Intellectual property | 5 | $ | 999 | $ | 999 | $ | — | |||||||
Developed technology | 5.03 | 9,080 | 2,729 | 6,351 | ||||||||||
Customer relationships | 5.3 | 6,140 | 2,806 | 3,334 | ||||||||||
Internal use software | 3 | 730 | 324 | 406 | ||||||||||
4.35 | $ | 16,949 | $ | 6,858 | $ | 10,091 | ||||||||
31-Dec-12 | 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 years ended December 31, 2013, 2012 and 2011 was as follows (in thousands): | ||||||||||||||
Year ended December 31, | Statement of operations classification | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Intellectual property | $ | 200 | $ | 400 | $ | 400 | Research and development | |||||||
Developed technology | 1,999 | 730 | — | Cost of revenue - product | ||||||||||
Customer relationships | 2,104 | 702 | — | Sales and marketing | ||||||||||
Order backlog | — | 860 | — | Cost of revenue - product | ||||||||||
Internal use software | 243 | 81 | — | Cost of revenue - product | ||||||||||
$ | 4,546 | $ | 2,773 | $ | 400 | |||||||||
In connection with the preparation of its financial statements for the second quarter of 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 2010. During 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 consolidated statements of operations for the year ended December 31, 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 December 31, 2013 is as follows (in thousands): | ||||||||||||||
Years ending December 31, | ||||||||||||||
2014 | $ | 3,234 | ||||||||||||
2015 | 2,368 | |||||||||||||
2016 | 1,934 | |||||||||||||
2017 | 1,901 | |||||||||||||
2018 | 393 | |||||||||||||
Thereafter | 261 | |||||||||||||
$ | 10,091 | |||||||||||||
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. The changes in the carrying value of the Company's goodwill in the years ended December 31, 2013 and 2012 are as follows (in thousands): | ||||||||||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Balance at January 1: | ||||||||||||||
Goodwill | $ | 35,485 | $ | 8,168 | ||||||||||
Accumulated impairment losses | (3,106 | ) | (3,106 | ) | ||||||||||
32,379 | 5,062 | |||||||||||||
Acquisition of NET | — | 27,317 | ||||||||||||
Balance at December 31 | $ | 32,379 | $ | 32,379 | ||||||||||
The components of the Company's goodwill balances at December 31, 2013 and 2012 are as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Balance: | ||||||||||||||
Goodwill | $ | 35,485 | $ | 35,485 | ||||||||||
Accumulated impairment losses | (3,106 | ) | (3,106 | ) | ||||||||||
$ | 32,379 | $ | 32,379 | |||||||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
ACCRUED EXPENSES | ' | |||||||
ACCRUED EXPENSES | ||||||||
Accrued expenses consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Employee compensation and related costs | $ | 20,683 | $ | 15,799 | ||||
Other | 13,343 | 10,413 | ||||||
$ | 34,026 | $ | 26,212 | |||||
RESTRUCTURING_ACCRUAL
RESTRUCTURING ACCRUAL | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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 $5.4 million of restructuring expense in the year ended December 31, 2013, comprised of $5.1 million for severance and related costs in connection with reducing the Company's workforce and $0.3 million related to facilities. | ||||||||||||||||||||
The Company recorded $7.7 million of restructuring expense in the year ended December 31, 2012, comprised of $3.2 million for severance and related costs, $4.2 million related to space reductions in three facilities and $0.3 million for the write-off of assets associated with the aforementioned facility consolidations. The $4.2 million recorded in the year ended December 31, 2012 related to facilities is comprised of $4.0 million related to space reductions in NET's former corporate headquarters in California, $0.1 million related to space reductions in the former NET facility in New Jersey and $0.1 million to consolidate the Company's offices in France. | ||||||||||||||||||||
Restructuring expense is reported separately in the Company's consolidated statements of operations. The Company expects to complete the payments related to severance in the second half of 2014 and the payments related to facilities in 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 consolidated balance sheets. At December 31, 2013, the long-term portion of accrued restructuring was $1.8 million. | ||||||||||||||||||||
The tables below summarize the restructuring accrual activity for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||||||||||||
Balance at | Initiatives | Cash | Foreign | Balance at December 31, 2013 | ||||||||||||||||
January 1, | charged to | payments | exchange | |||||||||||||||||
2013 | expense | |||||||||||||||||||
Severance | $ | 1,135 | $ | 5,102 | $ | (4,904 | ) | $ | — | $ | 1,333 | |||||||||
Facilities | 4,100 | 309 | (1,397 | ) | — | 3,012 | ||||||||||||||
$ | 5,235 | $ | 5,411 | $ | (6,301 | ) | $ | — | $ | 4,345 | ||||||||||
Initiatives | Cash | Foreign | Balance at | |||||||||||||||||
charged to | payments | exchange | December 31, | |||||||||||||||||
expense | 2012 | |||||||||||||||||||
Severance | $ | 3,237 | $ | (2,097 | ) | $ | (5 | ) | $ | 1,135 | ||||||||||
Facilities | 4,133 | (35 | ) | 2 | 4,100 | |||||||||||||||
Restructuring accrual activity | 7,370 | $ | (2,132 | ) | $ | (3 | ) | $ | 5,235 | |||||||||||
Asset write-offs | 305 | |||||||||||||||||||
Total restructuring expense | $ | 7,675 | ||||||||||||||||||
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
DEBT | ' |
DEBT | |
In connection with the Company's acquisition of NET, NET remained obligated under its 3 3/4 % Convertible Senior Notes due December 15, 2014 (the "2007 Notes") and 7 1/4 % Redeemable Convertible Subordinated Debentures due May 15, 2014 (the "1989 Debentures") outstanding at the NET Acquisition Date, subject to the transactions discussed below. | |
The Company has determined that the estimated fair value of its outstanding debt at both December 31, 2013 and 2012 equals its carrying value. Although the debt can be publicly traded, there have been no trading transactions since 2010 and accordingly, the Company has categorized it as a Level 2 within the fair value hierarchy. | |
3¾% Convertible Senior Notes | |
In December 2007, NET issued $85.0 million of 2007 Notes in a private placement, of which $10.5 million in principal remained outstanding at the NET Acquisition Date, and under which NET remained obligated after the acquisition. The 2007 Notes bear interest at a rate of 3 3/4 % per annum and mature on December 15, 2014. The 2007 Notes are unsecured senior obligations of NET, ranking equal in right of payment to all existing and future senior indebtedness of NET, and senior in right of payment to any existing and future subordinated indebtedness of NET. The 2007 Notes are effectively subordinated to existing and future secured indebtedness of NET to the extent of the assets securing such indebtedness and structurally subordinated to the claims of all existing and future indebtedness and other liabilities of NET's subsidiaries. In connection with the acquisition, the Company neither assumed nor guaranteed NET's obligations under the 2007 Notes. The 2007 Notes are not redeemable by NET prior to the stated maturity date. | |
Prior to the acquisition, a 2007 Note could be converted by a holder, at its option, into shares of NET common stock at a conversion rate of 73.3689 shares of NET common stock per $1,000 principal amount, subject to adjustment in certain events. On August 24, 2012, in connection with the consummation of the acquisition and as provided in the merger agreement, NET entered into a supplemental indenture for the 2007 Notes, which provided, among other things, that, in lieu of being convertible into shares of NET common stock, the 2007 Notes will be convertible into the kind and amount of merger consideration that would have been receivable upon the consummation of the acquisition by a holder of the number of shares of NET common stock issuable upon conversion of such 2007 Notes immediately preceding the effective time of the acquisition. The merger consideration was $1.35 in cash per share of NET common stock. | |
Upon the occurrence of certain fundamental changes including, without limitation, an acquisition of voting control of NET, the liquidation of NET, or NET's common stock ceasing to be traded on a U.S. national securities exchange, a holder of 2007 Notes obtained the right to require NET to purchase for cash all or any part of its 2007 Notes at a purchase price equal to 100% of the principal amount plus any accrued and unpaid interest (including additional interest, if any) up until, but not including, the fundamental change purchase date. The acquisition of NET by the Company constituted a "fundamental change" under the indenture governing the 2007 Notes. Accordingly, as required by the indenture governing the 2007 Notes and as provided in the merger agreement, on August 27, 2012, a fundamental change notice was sent to each holder of 2007 Notes, indicating that each such holder had the right to have all or a portion of its 2007 Notes purchased at a price in cash equal to 100% of the principal amount of the 2007 Notes (or portion thereof), plus any accrued and unpaid interest to, but excluding the fundamental change purchase date of October 12, 2012. In response to the fundamental change notice, $8.1 million in aggregate principal amount of 2007 Notes were tendered for purchase. The remaining $2.4 million in aggregate principal amount is due on December 15, 2014. | |
7¼% Redeemable Convertible Subordinated Debentures | |
In May 1989, NET issued $75.0 million of 1989 Debentures, of which $23.7 million in aggregate principal amount remained outstanding as of the NET Acquisition Date, and under which NET remained obligated after the acquisition. The 1989 Debentures bore interest at a rate of 7 1/4 % per annum and matured according to their terms on May 15, 2014. In connection with the acquisition, the Company neither assumed nor guaranteed NET's obligations under the 1989 Debentures. | |
Prior to the acquisition, each 1989 Debenture was convertible at the option of the holder into NET common stock at a conversion price of $31.50 per share and was redeemable at the option of NET. The 1989 Debenture holders were entitled to a sinking fund which began May 15, 2000, of 14 annual payments of 5% of the aggregate principal amount of the 1989 Debentures issued ($3.8 million annually), reduced by any redemption or conversion of the 1989 Debentures. As a result of previous redemptions, the total remaining sinking fund requirement was $1.2 million at the NET Acquisition Date, which, assuming no further redemptions would be due as a final sinking fund payment on May 15, 2014. | |
On August 24, 2012, in connection with the consummation of the acquisition and as provided in the merger agreement, NET entered into a supplemental indenture for the 1989 Debentures, which provided, among other things, that, in lieu of being convertible into shares of NET common stock, the 1989 Debentures would be convertible into the kind and amount of merger consideration that would have been received upon the consummation of the acquisition by a holder of the number of shares of NET common stock issuable upon conversion of such 1989 Debenture immediately preceding the effective time of the acquisition. The merger consideration was $1.35 per share. | |
On August 24, 2012, NET sent a notice to the holders of the 1989 Debentures, notifying them that NET had elected to redeem the entire outstanding aggregate principal amount of the 1989 Debentures. The date for the redemption was September 26, 2012. On the redemption date, the entire outstanding principal amount of the 1989 Debentures became due and payable at a redemption price equal to 100% of the principal amount of the 1989 Debentures plus accrued and unpaid interest to the redemption date. NET paid the aggregate principal amount of $23.7 million plus $0.6 million in accrued interest to the holders of the 1989 Debentures on September 26, 2012 and accordingly, at December 31, 2012, no obligation remained in connection with the Debentures. |
LONGTERM_LIABILITIES
LONG-TERM LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities [Abstract] | ' | |||||||
LONG-TERM LIABILITIES | ' | |||||||
LONG-TERM LIABILITIES | ||||||||
Long-term liabilities consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Capital lease obligations | $ | 154 | $ | 170 | ||||
Deferred rent | 3,057 | 3,551 | ||||||
Restructuring | 4,345 | 5,235 | ||||||
7,556 | 8,956 | |||||||
Current portion * | (3,185 | ) | (3,250 | ) | ||||
Long-term liabilities, net of current portion | $ | 4,371 | $ | 5,706 | ||||
* Includes $2.5 million at December 31, 2013 and $2.5 million at December 31, 2012 of current accrued restructuring reported as a component of Accrued expenses in the consolidated balance sheets. | ||||||||
The future minimum annual payments under capital leases at December 31, 2013 are as follows (in thousands): | ||||||||
Years ending December 31, | ||||||||
2014 | $ | 89 | ||||||
2015 | 70 | |||||||
2016 | 2 | |||||||
Total minimum lease payments | 161 | |||||||
Less amount representing interest | (7 | ) | ||||||
Present value of minimum lease payments | 154 | |||||||
Less current portion | (84 | ) | ||||||
Long-term liabilities portion | $ | 70 | ||||||
STOCKHOLDER_RIGHTS_PLAN
STOCKHOLDER RIGHTS PLAN | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
STOCKHOLDER RIGHTS PLAN | ' |
STOCKHOLDER RIGHTS PLAN | |
On June 21, 2013, the Company entered into an amendment to its stockholder rights agreement (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 was subsequently initially extended on June 10, 2011 to June 26, 2013. | |
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 of the Company 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 per Unit, 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) | 12 Months Ended |
Dec. 31, 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 does not have a fixed expiration date but may be suspended or discontinued at any time. The buyback program is being funded using the Company's working capital. | |
During the year ended December 31, 2013, the Company spent $59.7 million, including transaction fees, to repurchase and retire 18.5 million shares of its common stock under the buyback program. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | ||||||||||||
STOCK-BASED COMPENSATION PLANS | |||||||||||||
2007 Stock Incentive Plan | |||||||||||||
The Company's 2007 Stock Incentive Plan (the "2007 Plan") was approved at the Company's Annual Meeting of Stockholders held on November 12, 2007, and became effective on that date. 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 (the "Amended 2007 Plan"), which increased the number of shares available for future grant by 21 million shares. | |||||||||||||
At December 31, 2013, there were 16.4 million shares available for future issuance under the Amended 2007 Plan. Under the fungible share pool formula, the number of total shares available for future awards under the Amended 2007 Plan would be reduced by the fungible share pool multiple of 1.5 for each share of common stock included in an award other than a stock option or SAR award. Accordingly, the total number of shares awarded in the future under the Amended 2007 Plan could be less than the number of shares currently available for issuance. | |||||||||||||
2008 Stock Incentive Plan | |||||||||||||
In connection with the acquisition of NET, the Company assumed NET's 2008 Equity Incentive Plan (the "NET 2008 Plan"), which provides for the award of stock options, SARs, restricted stock, performance-based awards and RSUs), and the number of shares available for grant under the 2008 Plan were converted to like Sonus equity awards (the "converted awards") using a conversion factor of 0.75, which was calculated based on the acquisition consideration of $1.35 per share of NET common stock divided by the average of the closing price of Sonus common stock for the ten consecutive days ending with the third trading day that preceded the closing date. This conversion factor was also used to convert the exercise prices of NET stock options to Sonus stock option exercise prices. The converted awards will vest under the same schedules as the respective NET stock options and NET RSUs. | |||||||||||||
The fair values of the NET stock options assumed were estimated using a Black-Scholes option pricing model. The Company recorded $0.9 million as additional purchase consideration for the fair value of the assumed equity awards. The fair value of the assumed awards attributable to future stock-based compensation expense totaled $0.4 million, which was recorded over a weighted average period of approximately eight months. | |||||||||||||
In December 2012, the Company's Board of Directors approved the re-naming of the NET 2008 Plan to the 2008 Stock Incentive Plan (the "2008 Plan"). At December 31, 2013, there were 2.1 million shares available for future issuance under the 2008 Plan. Under the fungible pool formula, the number of total shares available for future awards under the 2008 Plan would be reduced by the fungible share pool multiple of 1.25 for each share of common stock included in an award other than a stock option or SAR award. Accordingly, the total number of shares awarded in the future under the 2008 Plan could be less than the number of shares currently available for issuance. | |||||||||||||
Executive and Board of Directors Equity Arrangements | |||||||||||||
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 2013 (collectively, the "2013 Bonus"), if any were earned, in the form of shares of the Company's common stock (collectively, the "2013 Bonus Shares"). The 2013 Bonus Shares, if any were granted, would be granted on a date concurrent with the timing of normal 2013 bonus payouts and would 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. On February 11, 2014, the Compensation Committee determined the achievement level for the 2013 Bonus Shares and also that such shares would be granted and vest on effective February 18, 2014. Accordingly, the Company granted approximately 1 million 2013 Bonus Shares on February 18, 2014, based on $3.30 per share, the closing price of the Company's common stock on the date of grant. Because no shares were granted in connection with the 2013 Bonus in the year ended December 31, 2013, 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 "2013 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 2013 Salary Shares were fully vested on December 31, 2013. The Company recorded stock-based compensation expense related to the 2013 Salary Shares ratably for the period of January 1, 2013 through December 31, 2013. The 2013 Salary Shares are included in the amounts reported both as "Granted" and Vested" 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 2012 in the form of restricted shares of the Company's common stock equal to 100% of their respective target bonus amounts for 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% vested on February 15, 2014. The Company 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 accept shares of restricted stock (the “2012 Salary Shares”) in lieu of base salary for the period from August 10, 2012 through December 31, 2012 and to receive his year 2012 target bonus, if earned, in the form of restricted shares (the “Dolan 2012 Bonus Shares”). The Company granted Mr. Dolan 108,398 2012 Salary Shares, which have a total grant date fair value equal to the balance of Mr. Dolan's base salary for the year ending December 31, 2012, calculated by dividing Mr. Dolan's remaining base salary for the year by $1.78, the closing price of the Company's common stock on the date of grant. The 2012 Salary Shares vested in full on December 31, 2012. The Company recorded compensation expense related to these awards ratably over the remaining vesting period through December 31, 2012. The 2012 Salary Shares are included in the amount reported both as “Granted” and "Vested" in the Restricted Stock Awards table below. On August 10, 2012, the Company granted Mr. Dolan 421,348 Dolan 2012 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 2012, the Company recorded stock-based compensation expense for the Dolan 2012 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 2012 Bonus Shares, of which 50% vested on August 15, 2013 and the remaining 50% vested on February 15, 2014. The Company is recording the unamortized expense related to the Dolan 2012 Bonus Shares, including incremental expense arising from the modification of this award, through February 15, 2014. Mr. Dolan forfeited the remaining 140,449 Dolan 2012 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 Amended 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 on the applicable grant date. The shares are reported as both "Granted" and "Vested" in the restricted stock grants table below. | |||||||||||||
Stock Options | |||||||||||||
Options are issued to purchase shares of common stock of the Company at prices that are equal to the fair market value of the shares on the date the option is granted. Options generally vest over a period of four years, with 25% of the shares subject to the option vesting on the first anniversary of the grant date and the remaining 75% vesting in equal monthly increments thereafter through the fourth anniversary of the grant date. Options granted under the Amended 2007 Plan generally expire ten years from the date of grant. Options granted under the 2008 Plan generally expire seven years from the date of grant. The grant date fair value of options, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are estimated based on historical experience. | |||||||||||||
The activity related to the Company's outstanding stock options during the year ended December 31, 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 | 13,957,856 | $ | 2.92 | ||||||||||
Exercised | (1,304,918 | ) | $ | 2.04 | |||||||||
Forfeited | (2,018,807 | ) | $ | 2.67 | |||||||||
Expired | (2,614,417 | ) | $ | 4.92 | |||||||||
Outstanding at December 31, 2013 | 33,136,112 | $ | 3.22 | 6.81 | $ | 12,157 | |||||||
Vested or expected to vest at December 31, 2013 | 30,348,416 | $ | 3.26 | 6.62 | $ | 11,082 | |||||||
Exercisable at December 31, 2013 | 14,914,561 | $ | 3.73 | 4.47 | $ | 4,853 | |||||||
The grant date fair values of options to purchase common stock granted in the years ended December 31, 2013, 2012 and 2011 were estimated using the Black-Scholes valuation model with the following assumptions: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Risk-free interest rate | 0.82%-1.71% | 0.67%-0.89% | 0.95%-2.12% | ||||||||||
Expected dividends | — | — | — | ||||||||||
Weighted average volatility | 63.20% | 67.40% | 67.60% | ||||||||||
Expected life (years) | 4.5-6.0 | 4.5 | 4.5 | ||||||||||
The risk-free interest rate used is the average U.S. Treasury Constant Maturities Rate for the expected life of the award. The expected dividend yield of zero is based on the fact that the Company has never paid dividends and has no present intention to pay cash dividends. The expected life for stock options is based on a combination of the Company's historical option patterns and expectations of future employee actions. | |||||||||||||
The weighted average grant-date fair values of options granted during the year were $1.48 for the year ended December 31, 2013, $1.39 for the year ended December 31, 2012 and $1.37 for the year ended December 31, 2011. | |||||||||||||
The total intrinsic values of options exercised during the year were $1.3 million for the year ended December 31, 2013, $0.2 million for the year ended December 31, 2012 and $0.9 million for the year ended December 31, 2011. | |||||||||||||
The Company received cash from option exercises of $2.7 million in the year ended December 31, 2013, $0.3 million in the year ended December 31, 2012 and $0.8 million in the year ended December 31, 2011. | |||||||||||||
Restricted Stock Grants - Restricted Stock Awards and Restricted Stock Units | |||||||||||||
The Company's outstanding restricted stock grants consist of both restricted stock awards ("RSAs") and RSUs. During the years ended December 31, 2013, 2012 and 2011, the Company had no unvested RSUs other than those converted in connection with the NET acquisition; all of which were fully vested by December 31, 2013. Recipients of RSAs have voting rights and rights to receive dividends, if declared. RSAs generally vest 25% on the first anniversary of the grant date, with the remaining 75% vesting in equal increments semi-annually thereafter. The grant date fair value of restricted stock grants, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the requisite service period. The fair value of restricted stock grants is determined based on the market value of the Company's shares on the date of grant. | |||||||||||||
The activity related to the Company's unvested restricted stock grants for the year ended December 31, 2013 is as follows: | |||||||||||||
Shares | Weighted | ||||||||||||
Average | |||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Unvested balance at January 1, 2013 | 617,203 | $ | 2.45 | ||||||||||
Granted | 1,584,086 | $ | 2.83 | ||||||||||
Vested | (908,485 | ) | $ | 2.6 | |||||||||
Forfeited | (54,039 | ) | $ | 2.66 | |||||||||
Unvested balance at December 31, 2013 | 1,238,765 | $ | 2.82 | ||||||||||
The total fair value of restricted stock grant shares vested was $2.4 million in the year ended December 31, 2013, $1.8 million in the year ended December 31, 2012 and $3.2 million in the year ended December 31, 2011. | |||||||||||||
Performance-Based Stock Awards | |||||||||||||
Similar to recipients of RSAs, recipients of performance-based stock awards have voting rights and rights to dividends, if declared. The Company begins to record stock-based compensation expense for performance-based stock awards at the time that it becomes probable that the respective performance conditions will be achieved. The Company continues to recognize the grant date fair value of performance-based stock awards through the vest date of the respective awards so long as it remains probable that the related performance conditions will be satisfied. | |||||||||||||
The activity related to the Company's performance-based stock awards for the year ended December 31, 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 | (1,205,858 | ) | $ | 2.61 | |||||||||
Forfeited | (140,449 | ) | $ | 1.78 | |||||||||
Unvested balance at December 31, 2013 | 1,059,541 | $ | 2.6 | ||||||||||
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 for the Future Performance Shares related to either a portion of or the full 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 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. | |||||||||||||
ESPP | |||||||||||||
The Amended and Restated 2000 Employee Stock Purchase Plan (the "ESPP") is designed to provide eligible employees of the Company and its participating subsidiaries an opportunity to purchase common stock of the Company through accumulated payroll deductions. | |||||||||||||
At December 31, 2013, the ESPP provides for six-month consecutive offering periods, with the purchase price of the stock equal to 85% of the market price on the last day of the offering period. Under the ESPP, because employees are entitled to purchase a variable number of shares for a fixed monetary amount, future awards are classified as share-based liabilities and recorded at fair value. The Company reclassifies these liabilities to Additional paid-in capital at the time of the share purchase, which is the date of the award. At the February 2014 meeting of the Board of Directors, the ESPP was amended, effective March 1, 2014, to provide for six-month consecutive offering periods with the purchase price of the stock equal to 85% of the lesser of the market price on the first or last day of the offering period. The maximum number of shares of common stock an employee may purchase during each offering period is 2,500, subject to certain adjustments pursuant to the ESPP. | |||||||||||||
On January 1 of each year, the aggregate number of shares of common stock available for purchase under the ESPP increases by the lesser of (i) 2% of the outstanding shares on December 31 of the preceding year or (ii) an amount determined by the Board of Directors of the Company. At December 31, 2013, 25.0 million shares were authorized and 11.6 million shares were available under the ESPP for future issuance. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The consolidated statements of operations include stock-based compensation for the years ended December 31, 2013, 2012 and 2011 as follows (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Product cost of revenue | $ | 181 | $ | 162 | $ | 398 | |||||||
Service cost of revenue | 1,050 | 813 | 1,203 | ||||||||||
Research and development | 3,616 | 2,297 | 2,045 | ||||||||||
Sales and marketing | 4,780 | 2,006 | 1,817 | ||||||||||
General and administrative | 8,246 | 3,725 | 2,402 | ||||||||||
$ | 17,873 | $ | 9,003 | $ | 7,865 | ||||||||
There is no income tax benefit for employee stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011 due to the valuation allowance recorded. | |||||||||||||
At December 31, 2013, there was $22.6 million, net of expected forfeitures, of unrecognized stock-based compensation expense related to unvested stock options, RSAs and performance-based stock awards. This expense is expected to be recognized over a weighted average period of approximately three years. | |||||||||||||
Common Stock Reserved | |||||||||||||
Common stock reserved for future issuance at December 31, 2013 consists of the following: | |||||||||||||
Amended 2007 Plan | 16,437,253 | ||||||||||||
2008 Plan | 2,066,069 | ||||||||||||
ESPP | 11,598,424 | ||||||||||||
30,101,746 | |||||||||||||
The Company's policy is to issue authorized but unissued shares upon the exercise of stock options, grant restricted common stock and performance-based stock awards, and authorize the purchase of shares of the Company's common stock under the ESPP. |
EMPLOYEE_DEFINED_CONTRIBUTION_
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
EMPLOYEE DEFINED CONTRIBUTION PLAN | ' |
EMPLOYEE DEFINED CONTRIBUTION PLAN | |
Through December 31, 2012, the Company provided a matching contribution of 50% of employee contributions to its 401(k) savings plan, up to a maximum match of $3,500 per employee per year. The Company elected not to make a matching contribution in 2013 and, accordingly, the Company did not record expense related to its 401(k) savings plan in the year ended December 31, 2013. The Company recorded expense related to its 401(k) savings plan of $1.7 million in the year ended December 31, 2012 and $1.4 million in the year ended December 31, 2011. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
The components of income (loss) from continuing operations before income taxes consist of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Loss before income taxes: | ||||||||||||
United States | $ | (21,076 | ) | $ | (49,337 | ) | $ | (13,144 | ) | |||
Foreign | 409 | 1,609 | 1,906 | |||||||||
$ | (20,667 | ) | $ | (47,728 | ) | $ | (11,238 | ) | ||||
The provision (benefit) for income taxes from continuing operations consists of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Provision (benefit) for income taxes: | ||||||||||||
Current: | ||||||||||||
Federal | $ | 14 | $ | 14 | $ | 14 | ||||||
State | 150 | 105 | 183 | |||||||||
Foreign | 1,696 | 1,465 | 1,212 | |||||||||
Total current | 1,860 | 1,584 | 1,409 | |||||||||
Deferred: | ||||||||||||
Federal | (1,911 | ) | (12,441 | ) | (140 | ) | ||||||
State | (103 | ) | (1,680 | ) | 696 | |||||||
Foreign | (1,081 | ) | 607 | 56 | ||||||||
Change in valuation allowance | 2,687 | 14,371 | (556 | ) | ||||||||
Total deferred | (408 | ) | 857 | 56 | ||||||||
Total | $ | 1,452 | $ | 2,441 | $ | 1,465 | ||||||
A reconciliation of the Company's effective tax rate for continuing operations to the statutory federal rate is as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. statutory income tax rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | ||||||
State income taxes, net of federal benefit | 0.4 | (3.6 | ) | 6 | ||||||||
Foreign income taxes | 1.3 | 3.2 | 5.3 | |||||||||
Capital loss expiration | 24 | — | — | |||||||||
Foreign deemed dividends | 1.8 | 2.1 | 9.3 | |||||||||
Stock-based compensation | 7.6 | 3.4 | 14.9 | |||||||||
Tax credits | (6.1 | ) | (0.7 | ) | 3.2 | |||||||
Uncertain tax positions | — | — | 0.1 | |||||||||
Deferred cost of goods sold elimination | — | (1.2 | ) | 5 | ||||||||
Valuation allowance | 9.9 | 35.5 | 2 | |||||||||
Goodwill amortization | 3.3 | 0.5 | — | |||||||||
Other, net | (0.2 | ) | 0.9 | 2.2 | ||||||||
Effective income tax rate | 7 | % | 5.1 | % | 13 | % | ||||||
The following is a summary of the significant components of deferred income tax assets and liabilities (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Net operating loss carryforwards | $ | 64,811 | $ | 62,257 | ||||||||
Capital loss carryforwards | — | 5,455 | ||||||||||
Research and development tax credits | 21,401 | 19,627 | ||||||||||
Other tax credits | 160 | 249 | ||||||||||
Intangible assets | 2,530 | 1,332 | ||||||||||
Deferred revenue | 4,143 | 3,915 | ||||||||||
Accrued expenses | 10,519 | 7,871 | ||||||||||
Inventory | 6,498 | 5,750 | ||||||||||
Stock-based compensation | 9,263 | 7,881 | ||||||||||
Other temporary differences | 3,642 | 4,863 | ||||||||||
122,967 | 119,200 | |||||||||||
Valuation allowance | (119,616 | ) | (116,929 | ) | ||||||||
Total deferred tax assets | 3,351 | 2,271 | ||||||||||
Liabilities: | ||||||||||||
Purchased intangible assets | (922 | ) | (249 | ) | ||||||||
Unrealized gain on available-for-sale securities | (574 | ) | (574 | ) | ||||||||
Total deferred tax liabilities | (1,496 | ) | (823 | ) | ||||||||
Total net deferred tax assets | $ | 1,855 | $ | 1,448 | ||||||||
Reported as: | ||||||||||||
Deferred income taxes - current | $ | 656 | $ | 686 | ||||||||
Deferred income taxes - noncurrent | 1,199 | 762 | ||||||||||
$ | 1,855 | $ | 1,448 | |||||||||
At December 31, 2013, the Company had cumulative net operating losses ("NOL") of $200.6 million for federal income tax purposes and $88.7 million for state income tax purposes. The federal NOL carryforwards expire at various dates from 2020 through 2033. The state NOL expires at various dates from 2014 through 2033. Of the federal NOL, $127.0 million is attributable to stock option deductions. The Company's federal NOL carryforwards for tax return purposes are $25.0 million greater than its recognized federal NOL for financial reporting purposes, primarily due to excess tax benefits (stock compensation deductions in excess of book compensation costs) not recognized for financial statement purposes until realized. The tax benefit of this loss would be recognized for financial statement purposes in the period in which the tax benefit reduces income taxes payable, which will not be recognized until the Company recognizes a reduction in taxes payable from all other NOL carryforwards. In addition, the Company has $9.3 million of deferred tax assets as of December 31, 2013 related to compensation expenses recognized for financial reporting purposes that are not deductible for tax purposes until options are exercised or shares vest. As employees will not exercise the underlying options unless the current market price exceeds the option exercise price and the Company's tax deduction for restricted shares is determined as the shares vest, the ultimate realization of the benefit related to stock options is directly associated with the price of the Company's common stock. At December 31, 2013, the Company's stock price of $3.15 was below the weighted average exercise price of the Company's stock options of $3.22. | ||||||||||||
With respect to non-U.S. NOL carryovers, the Company's United Kingdom subsidiary has a current year estimated NOL of approximately $0.8 million and a carryover of approximately $3.0 million from its acquisition of NET. | ||||||||||||
The Company also has available federal and state research and development credit carryforwards of approximately $27 million that expire at various dates from 2015 through 2033. | ||||||||||||
During 2013, $14.1 million of capital loss carryover resulting from the Company's sale of its Zynetix subsidiary on November 26, 2008 expired. The capital loss was only available to offset capital gains. Because it was not more likely than not that the Company would realize a benefit prior to the expiration of the capital loss carryforward, a full valuation allowance had been established against the $5.5 million tax benefit associated with this capital loss. | ||||||||||||
During 2013 and 2012, the Company performed an analysis to determine if, based on all available evidence, it considered it more likely than not that some portion or all of the recorded deferred tax assets will not be realized in a future period. As a result of the Company's evaluation, the Company concluded that there was insufficient positive evidence to overcome the more objective negative evidence related to its cumulative losses and other factors. Accordingly, the Company has maintained a valuation allowance against its domestic deferred tax asset amounting to $119.6 million at December 31, 2013 and $116.9 million at December 31, 2012. | ||||||||||||
A reconciliation of the Company's unrecognized tax benefits is as follows (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits at January 1 | $ | 8,847 | $ | 10,004 | $ | 9,990 | ||||||
Increases related to current year tax positions | 14 | 14 | 14 | |||||||||
Decreases related to prior period tax positions | — | (1,171 | ) | — | ||||||||
Settlements | — | — | — | |||||||||
Unrecognized tax benefits at December 31 | $ | 8,861 | $ | 8,847 | $ | 10,004 | ||||||
The Company recorded liabilities for potential penalties and interest of $14,000 for the year ended December 31, 2013, $14,000 for the year ended December 31, 2012 and $14,000 for the year ended December 31, 2011. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months. Due to the Company's valuation allowance at December 31, 2013, none of the Company's unrecognized tax benefits, if recognized, would affect the effective tax rate. | ||||||||||||
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, as well as various state and foreign jurisdictions. Generally, the tax years 2008 through 2013 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company's federal NOLs generated prior to 2003 could be adjusted on examination even though the year in which the loss was generated is otherwise closed by the statute of limitations. The Company's primary state jurisdiction, Massachusetts, has open periods from 2009 through 2013. | ||||||||||||
The acquisition of NET was accounted for as a nontaxable business combination and the Company carried over the existing tax basis of the acquired assets and liabilities. Deferred taxes were recorded as part of the business combination based on the differences between the tax basis of the acquired assets or liabilities and their reported amounts for financial reporting purposes. The Company concluded that there was insufficient positive evidence to overcome the more objective negative evidence related to cumulative losses and other factors. Accordingly, the Company recorded a valuation allowance against the majority of the acquired deferred tax assets. | ||||||||||||
With respect to the acquisition of NET, during the second quarter of 2013, the Company made an election under Section 338(g) of the Internal Revenue Code to have the acquisition transaction treated as an asset acquisition (i.e., a taxable transaction). The election is not considered part of the business combination and resulted in a step-up in the acquired assets and liabilities to fair market value for tax purposes. During the third quarter of 2013, as a result of the election, the Company reversed all of the deferred taxes related to NET's assets, liabilities and net operating loss carryovers and the related valuation allowance that were recorded in the business combination. The resulting taxable gain from the election was fully offset by NET's operating loss carryovers and no taxes were paid by the Company as a result of the election. |
MAJOR_CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended | |||||
Dec. 31, 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 years ended December 31, 2013, 2012 and 2011: | ||||||
Year ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Bahamas Telecommunications Company Ltd. | * | * | 14% | |||
AT&T | 15% | 20% | 12% | |||
__________________________________ | ||||||
* | Represents less than 10% of revenue | |||||
At December 31, 2013, one customer accounted for 10% or more of the Company's accounts receivable balance, representing approximately 13% 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_AND_OPERATING_SEGME
GEOGRAPHIC AND OPERATING SEGMENT INFORMATION GEOGRAPHIC AND OPERATING SEGMENT INFORMATION | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
GEOGRAPHIC INFORMATION | ' | |||||||||||
GEOGRAPHIC AND OPERATING SEGMENT INFORMATION | ||||||||||||
The Company's classification of revenue by geographic area is determined by the location of the Company's customers. The following table summarizes revenue by geographic area as a percentage of total revenue: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | 69 | % | 68 | % | 60 | % | ||||||
Europe, Middle East and Africa | 12 | 13 | 12 | |||||||||
Japan | 12 | 14 | 11 | |||||||||
Other Asia Pacific | 5 | 4 | 2 | |||||||||
Other | 2 | 1 | 15 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
Bahamas Telecommunications Company Ltd. ("Bahamas Telecom") accounted for approximately 14% of the Company's revenue in the year ended December 31, 2011. Bahamas Telecom is located in the Caribbean and is included as a component of "Other" in the table above. | ||||||||||||
The Company's product revenue is comprised of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Trunking and communication applications | $ | 69,841 | $ | 85,694 | $ | 116,506 | ||||||
SBC | 97,431 | 67,632 | 37,867 | |||||||||
$ | 167,272 | $ | 153,326 | $ | 154,373 | |||||||
The Company's service revenue is comprised of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Maintenance | $ | 84,698 | $ | 76,423 | $ | 76,418 | ||||||
Professional services | 24,763 | 24,385 | 28,905 | |||||||||
$ | 109,461 | $ | 100,808 | $ | 105,323 | |||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ||||
Leases | ||||
The Company leases its facilities under operating leases, which expire at various times through 2018. The Company is responsible for certain real estate taxes, utilities and maintenance costs under these leases. The Company's corporate headquarters is located in a leased facility in Westford, Massachusetts, consisting of 97,500 square feet under a lease that expires in August 2018. | ||||
Escalation clauses, free rent and other lease concessions are recognized on a straight-line basis over the minimum lease term. Rent expense was $5.5 million for the year ended December 31, 2013, $5.0 million for the year ended December 31, 2012 and $5.3 million for the year ended December 31, 2011. | ||||
Future minimum payments under operating lease arrangements as of December 31, 2013 are as follows (in thousands): | ||||
Years ending December 31, | ||||
2014 | $ | 5,824 | ||
2015 | 4,721 | |||
2016 | 3,316 | |||
2017 | 1,951 | |||
2018 | 1,135 | |||
Thereafter | 226 | |||
$ | 17,173 | |||
Litigation 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 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_EVENT_Notes
SUBSEQUENT EVENT (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENT | ' |
SUBSEQUENT EVENT | |
On December 13, 2013, the Company announced that it had entered into a definitive merger agreement to acquire Performance Technologies, Incorporated ("PT") for $3.75 per share, or approximately $34 million in cash, net of PT's cash and excluding acquisition-related costs. The Company believes that this acquisition will enable Sonus to expand and diversify its portfolio with an integrated, virtualized Diameter and SIP-based solution and deliver strategic value to service providers seeking to offer new multimedia services through mobile, cloud-based, real-time communications. On February 19, 2014, the Company completed the acquisition of PT. |
QUARTERLY_RESULTS_UNAUDITED
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
QUARTERLY RESULTS (UNAUDITED) | ' | |||||||||||||||
QUARTERLY RESULTS (UNAUDITED) | ||||||||||||||||
The following tables present the Company's quarterly operating results for the years ended December 31, 2013 and 2012. The information for each of these quarters is unaudited and has been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, all necessary adjustments, consisting only of normal recurring adjustments, have been included to present fairly the unaudited consolidated quarterly results when read in conjunction with the Company's audited consolidated financial statements and related notes. | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Fiscal 2013 | ||||||||||||||||
Revenue | $ | 63,288 | $ | 69,193 | $ | 68,099 | $ | 76,153 | ||||||||
Cost of revenue | 25,486 | 25,185 | 25,835 | 27,767 | ||||||||||||
Gross profit | $ | 37,802 | $ | 44,008 | $ | 42,264 | $ | 48,386 | ||||||||
Loss from operations | $ | (13,472 | ) | $ | (4,633 | ) | $ | (2,911 | ) | $ | (59 | ) | ||||
Net income (loss) | $ | (13,748 | ) | $ | (4,870 | ) | $ | (3,773 | ) | $ | 272 | |||||
Earnings (loss) per share (1): | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | — | |||||
Diluted | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | — | |||||
Shares used in computing earnings (loss) per share: | ||||||||||||||||
Basic | 281,542 | 282,389 | 279,209 | 270,936 | ||||||||||||
Diluted | 281,542 | 282,389 | 279,209 | 273,490 | ||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter (2) | Quarter (2) | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Fiscal 2012 | ||||||||||||||||
Revenue | $ | 64,339 | $ | 57,610 | $ | 57,049 | $ | 75,136 | ||||||||
Cost of revenue | 22,585 | 24,815 | 24,607 | 39,533 | ||||||||||||
Gross profit | $ | 41,754 | $ | 32,795 | $ | 32,442 | $ | 35,603 | ||||||||
Loss from operations | $ | (6,197 | ) | $ | (11,792 | ) | $ | (14,804 | ) | $ | (15,749 | ) | ||||
Net loss | $ | (6,438 | ) | $ | (11,725 | ) | $ | (15,619 | ) | $ | (16,387 | ) | ||||
Loss per share (1): | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.06 | ) | ||||
Diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.06 | ) | ||||
Shares used in computing loss per share: | ||||||||||||||||
Basic | 279,487 | 279,926 | 280,145 | 280,773 | ||||||||||||
Diluted | 279,487 | 279,926 | 280,145 | 280,773 | ||||||||||||
__________________________________ | ||||||||||||||||
-1 | Earnings (loss) per share is calculated independently for each of the quarters presented; accordingly, the sum of the quarterly earnings (loss) per share amounts may not equal the total calculated for the year. | |||||||||||||||
-2 | Includes the results of NET for the period subsequent to August 24, 2012. |
BASIS_OF_PRESENTATION_AND_SUMM1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | |
The consolidated financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States ("GAAP"). | |
Effective in 2012, the Company began to report its first, second and third quarters on a 4-4-5 basis, with the quarter ending on the Friday closest to the last day of each third month. In 2013, the Company's first quarter ended on March 29, 2013, the second quarter ended on June 28, 2013 and the third quarter ended on September 27, 2013. In 2012, the Company's first quarter ended on March 30, 2012, the second quarter ended on June 29, 2012 and the third quarter ended on September 28, 2012. The Company's fiscal year ends on December 31. | |
On August 24, 2012, the Company completed the acquisition of Network Equipment Technologies, Inc. (“NET”). The financial results of NET have been included in the Company's consolidated financial statements for the year ended December 31, 2013 and in the year ended December 31, 2012 for the period subsequent to its acquisition. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. All 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, 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. | |
Business Combinations | ' |
Business Combinations | |
The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired in the business combination that are not individually identified and separately recognized. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue from sales when persuasive evidence of an arrangement exists, delivery has occurred, the sale price is fixed or determinable, and collectability of the related receivable is probable. In instances where customer acceptance is required, revenue is deferred until the acceptance has been achieved. When fees for products or services are not fixed and determinable, the Company defers the recording of receivables, deferred revenue and revenue until such time as the fees become due or are collected. | |
Revenue from maintenance and support services is recognized ratably over the service period. Maintenance revenue is deferred until the associated product is accepted by the customer and all other revenue recognition criteria have been met. Maintenance and support services include telephone support, return and repair support and unspecified rights to product upgrades and enhancements. Revenue from other professional services is typically recognized as the services are delivered if all other revenue recognition criteria have been met. | |
The Company's products typically have both software and non-software components that function together to deliver the products' essential functionality. In addition, hardware sold generally cannot be used apart from the software. Therefore, the Company considers its principal products to be both software and hardware-related. Many of the Company's sales involve multiple element arrangements that include product, maintenance and various professional services. | |
Beginning January 1, 2011, the Company adopted the provisions of ASU No. 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”) and ASU No. 2009-14, Software (Topic 985): Certain Revenue Arrangements That Include Software Elements (“ASU 2009-14”) for new and materially modified arrangements that contain tangible products (hardware) with software elements, which comprise the majority of the Company's revenue transactions. For multiple element arrangements entered into subject to the guidance set forth in ASU 2009-13, arrangement consideration is allocated to each element based on the relative selling prices of all of the elements in the arrangement using the fair value hierarchy as required by ASU 2009-13. The Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations, or subject to customer-specific return or refund privileges. | |
For multiple-element arrangements that include both software-only products and non-software products, the Company allocates the total arrangement consideration to the software-only deliverables as a group and to the individual non-software deliverables based on their relative selling prices. If an undelivered element (such as maintenance and support services) relates to both the software-only and non-software deliverables, the Company bifurcates the consideration allocated to the undelivered element (such as maintenance and support services) into a non-software component and the software-only component using the relative selling price method. The consideration allocated to the non-software and software-only deliverables is recognized in accordance with the guidance as discussed in this note. | |
For transactions entered into prior to January 1, 2011 and prospectively for software-only sales, the Company recognizes revenue in accordance with ASC No. 985-605, Software - Revenue Recognition (“ASC 985-605”). Under this guidance, revenue for any undelivered elements that are considered not essential to the functionality of the product and for which vendor-specific objective evidence of selling price (“VSOE”) has been established is deferred and recognized upon delivery utilizing the residual method. If the Company has undelivered product for which VSOE has not been established, it defers all revenue on the entire arrangement until VSOE is established or until such elements are delivered, provided that all other revenue recognition criteria are met. If the Company has undelivered services for which VSOE has not been established, the entire arrangement is recognized as revenue over the longest remaining service period from the point in time that all services have commenced and all products have been delivered, provided that all other revenue recognition criteria are met. | |
The Company establishes VSOE based upon the price charged when the same element is sold separately or established by management having the relevant pricing authority. The Company has VSOE for its maintenance and support services and certain professional services. When VSOE exists it is used to determine the selling price of a deliverable. The Company has not been able to establish VSOE of any of its products and for certain of its services because the Company has not sold such products or services on a stand-alone basis, has not priced its products or services within a narrow range, or has limited sales history. | |
When VSOE is not established, the Company attempts to establish the selling price of each element based on third-party evidence of selling price (“TPE”). The Company's solution typically differs from that of its peers as there are no similar or interchangeable competitor products or services. The Company's various product, service and maintenance offerings contain a significant level of unique features and functionality and therefore, comparable pricing of competitors' products and services with similar functionality cannot be obtained. Accordingly, the Company is not able to determine TPE for its products or services. | |
When the Company is unable to establish selling price using VSOE or TPE, the Company uses estimated selling price (“ESP”) in its allocation of arrangement consideration for the relevant deliverables. The objective of ESP is to determine the price at which the Company would transact a sale if a product or service was sold on a stand-alone basis. The Company determines ESP for its products and certain services by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional-specific market factors, profit objectives and historical pricing practices for such deliverables. The determination of ESP is a formal process within the Company that includes review and approval by the Company's management. | |
Deferred revenue typically includes customer deposits and amounts associated with partial product shipments and maintenance or service contracts. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is reported with long-term liabilities in the condensed consolidated balance sheets. The Company defers recognition of incremental direct costs, such as cost of goods, third-party installations and commissions, until recognition of the related revenue. Such costs are classified as current assets if the deferred revenue is initially classified as current and noncurrent assets if the related deferred revenue is initially classified as long-term. | |
The Company excludes any taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (i.e., sales, use, value added) from its revenue and costs. Reimbursement received for out-of-pocket expenses and shipping costs is recorded as revenue. | |
The Company sells the majority of its products directly to its end customers. For products sold to resellers and distributors, the Company recognizes revenue on a sell-through basis. | |
Financial Instruments | ' |
Financial Instruments | |
The carrying amounts of Sonus' financial instruments, which include cash equivalents, marketable securities, investments, accounts receivable, accounts payable and convertible subordinated debt approximate their fair values. | |
All investments in marketable securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in Accumulated other comprehensive income (loss), which is a component of stockholders' equity. Unrealized losses that are determined to be other-than-temporary, based on current and expected market conditions, are recognized in earnings. Declines in fair value determined to be credit-related are charged to earnings. The cost of marketable securities sold is determined by the specific identification method. | |
Financial instruments with remaining maturities or that are due within one year from the balance sheet date are classified as current. Financial instruments with remaining maturities or that are payable more than one year from the balance sheet date are classified as noncurrent. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash equivalents are stated at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in Accumulated other comprehensive income (loss). Cash equivalents are liquid securities that have remaining maturities of three months or less at the date of purchase. | |
Restricted Cash | ' |
Restricted Cash | |
The Company classifies as restricted cash all cash pledged as collateral to secure long-term obligations and all cash whose use is otherwise limited by contractual provisions. Restricted cash is recorded within other assets on the consolidated balance sheet. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
For foreign subsidiaries where the functional currency is the local currency, assets and liabilities are translated into U.S. dollars at the current exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during each period. Translation adjustments for these subsidiaries are included in Accumulated other comprehensive income (loss). | |
For foreign subsidiaries where the functional currency is the U.S. dollar, monetary assets and liabilities are translated into U.S. dollars at the current exchange rate on the balance sheet date. Nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Revenue and expense items are translated at average rates of exchange prevailing during each period. | |
Realized and unrealized foreign currency gains and losses arising from transactions denominated in currencies other than the subsidiary's functional currency are reflected in earnings with the exception of intercompany transactions considered to be of a long-term investment nature. | |
Inventory | ' |
Inventory | |
Inventory is recorded at the lower of cost or market value using the first-in, first-out convention. The Company reduces the carrying value of inventory for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. | |
Sonus writes down evaluation equipment at the time of shipment to its customers, as it is probable that the inventory value will not be realized. | |
Deferred product costs represent deferred cost of revenue for product shipments to customers prior to satisfaction of Sonus' revenue recognition criteria. Such costs are classified as inventory if the related deferred revenue is initially classified as current. Deferred product costs are recorded in Other assets if the related deferred revenue is initially classified as long-term, and remain a component of noncurrent assets until such costs are recognized in the consolidated statement of operations. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from two to five years. Leasehold improvements are amortized over the lesser of the lease term or five years. When an asset is sold or retired, the cost and related accumulated depreciation or amortization are eliminated, and the resulting gain or loss, if any, is recognized in income (loss) from operations in the consolidated statement of operations. The Company reviews property and equipment for impairment in the same manner as intangible assets discussed below. | |
Software development costs associated with internal use software are incurred in three stages of development: the preliminary project stage, the application development stage and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Certain internal and external qualifying costs incurred during the application development stage are capitalized as property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life of three years, beginning when the software is ready for its intended use. | |
Intangible Assets and Goodwill | ' |
Intangible Assets and Goodwill | |
Intangible assets are comprised of intellectual property purchased in 2010 which is amortized over its estimated useful life of five years, and intangible assets arising from the August 24, 2012 acquisition of NET, comprised of developed technology, customer relationships, order backlog and internal use software, which are amortized over their estimated useful lives of four months to approximately six years. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable based upon the estimated undiscounted cash flows. Recoverability of intangible assets with estimated lives and other long-lived assets is measured by a comparison of the carrying amount of an asset or asset group to future net undiscounted cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the Company will recognize an impairment loss for the amount by which the carrying value of the asset or asset group exceeds the related estimated fair value. Estimated fair value is based on either discounted future operating cash flows or appraised values, depending on the nature of the asset. In the second quarter of 2013, the Company recorded an impairment charge of $0.6 million to write down the carrying value of one of its intellectual property intangible assets to zero. See Note 9 for additional information regarding this expense. | |
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested for impairment at least annually or if indicators of potential impairment exist by comparing the fair value of the Company's reporting unit to its carrying value. | |
The Company adopted ASU 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment ("ASU 2011-08") for its 2013 annual impairment test. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. This qualitative assessment included the review of macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance and other related facts and circumstances that could indicate that a more detailed assessment would be required. If it is concluded that it is more likely than not that the fair value is less than the carrying value, then it is necessary to perform the currently prescribed two-step goodwill impairment test. Alternatively, if it is concluded that it is not more likely than not that the fair value exceeds carrying value, the currently prescribed two-step goodwill impairment test is not required. | |
The Company's annual testing for impairment of goodwill is completed as of November 30 of each year. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. The Company performed its qualitative assessment for 2013 and concluded that it was not more likely than not that the fair value of our reporting unit was less than its carrying value. The Company's testing for 2012 and 2011 also indicated that no impairment of goodwill existed. | |
Share-Based Compensation | ' |
Stock-Based Compensation | |
The Company's stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited. The Company uses the Black-Scholes valuation model for estimating the fair value on the date of grant of stock options. The fair value of stock option awards is affected by the Company's stock price as well as valuation assumptions, including the volatility of Sonus' stock price, expected term of the option, risk-free interest rate and expected dividends. | |
Research and Development Costs | ' |
Research and Development Costs | |
Research and development costs are expensed as incurred. | |
Software Development Costs | ' |
Software Development Costs | |
The costs for the development of new software and substantial enhancements to existing software are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized until the product is available for general release. The Company has determined that technological feasibility is established at the time a working model of the software is completed. The Company's process for developing software is essentially completed concurrently with the establishment of technological feasibility. Accordingly, no costs have been capitalized to date. | |
Advertising Costs | ' |
Advertising Costs | |
Advertising costs are expensed as incurred. | |
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. | |
Loss Contingencies and Reserves | ' |
Loss Contingencies and Reserves | |
Loss Contingencies. Sonus is subject to ongoing business risks arising in the ordinary course of business that affect the estimation process of the carrying value of assets, the recording of liabilities and the possibility of various loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred or an asset has been impaired and the amount of loss can be reasonably estimated. Sonus regularly evaluates current information available to determine whether such amounts should be adjusted and records changes in estimates in the period they become known. | |
Allowance for Doubtful Accounts. Sonus establishes billing terms at the time it negotiates purchase agreements with its customers. Sonus monitors its outstanding receivables for timely payments and potential collection issues. An allowance for doubtful accounts is estimated based on Sonus' assessment of the collectability of specific customer accounts. | |
Accrual for Royalties. Sonus accrues for royalties for technology that it licenses from vendors based on established royalty rates and usage. In certain cases, Sonus has been contacted by third parties who claim that Sonus' products infringe on certain intellectual property of the third party. Sonus evaluates these claims and accrues amounts only when it is probable that the obligation has been incurred and the amounts are reasonably estimable. | |
Reserve for Litigation and Legal Fees. Sonus is subject to various legal claims. Sonus reserves for legal contingencies and legal fees when it is probable that a loss has been incurred and the amounts are reasonably estimable. | |
Accounting for Income Taxes | ' |
Accounting for Income Taxes | |
Deferred tax assets and liabilities are recognized for the expected future consequences of events that have been reflected in the consolidated financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. Such differences arise primarily from stock-based compensation, depreciation, accruals and reserves, acquired intangible assets, deferred revenue, tax credits, net operating loss carryforwards and allowances for accounts receivable. Sonus records valuation allowances to reduce deferred income tax assets to the amount that is more likely than not to be realized. | |
Sonus has not provided for U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries, as the Company plans to permanently reinvest these amounts. Cumulative undistributed foreign earnings were approximately $17 million at December 31, 2013 and approximately $19 million at December 31, 2012. Generally, the undistributed foreign earnings become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. The Company does not believe it is practicable to estimate with reasonable accuracy the hypothetical amount of the unrecognized deferred tax liability on its undistributed foreign earnings given the large number of tax jurisdictions involved and the many factors and assumptions required to estimate the amount of the U.S. federal income tax on the undistributed earnings after reduction for the available foreign tax credits. | |
The Company determines whether it is more likely than not that a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, no amount of the benefit attributable to the position is recognized. The tax benefit to be recognized of any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the contingency. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. | |
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. 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 consolidated financial statements. |
BASIS_OF_PRESENTATION_AND_SUMM2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Foreign currency translation | ' | |||||||||||
The components of foreign currency translation gains (losses), which are reported as a component of General and administrative expenses in the consolidated statements of operations, for the years ended December 31, 2013, 2012 and 2011 are as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Transaction losses | $ | (746 | ) | $ | (1,365 | ) | $ | (1,293 | ) | |||
Remeasurement gains (losses) | (164 | ) | 767 | 9 | ||||||||
$ | (910 | ) | $ | (598 | ) | $ | (1,284 | ) |
ACQUISITION_OF_NET_Tables
ACQUISITION OF NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 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 (see Note 16) | 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 identifiable intangible assets as of the NET Acquisition Date | ' | |||||||
The identifiable intangible assets as of the NET Acquisition Date are as follows (in thousands): | ||||||||
Developed technology | $ | 9,080 | ||||||
Customer relationships | 6,140 | |||||||
Order backlog | 860 | |||||||
Internal use software | 730 | |||||||
$ | 16,810 | |||||||
Schedule of unaudited pro forma results of operations | ' | |||||||
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 company that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amounts): | ||||||||
Year ended | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Revenue | $ | 284,970 | $ | 308,660 | ||||
Net loss | $ | (62,148 | ) | $ | (60,984 | ) | ||
Loss per share | $ | (0.22 | ) | $ | (0.22 | ) | ||
Schedule of components of acquisition-related costs included in results of operations | ' | |||||||
The components of acquisition-related costs included in the Company's results of operations for the year ended December 31, 2012 are as follows (in thousands): | ||||||||
Professional and services fees | $ | 3,571 | ||||||
Change of control agreements | 1,925 | |||||||
$ | 5,496 | |||||||
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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): | |||||||||
Year ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Weighted average shares outstanding—basic | 278,428 | 280,090 | 278,540 | ||||||
Potential dilutive common shares | — | — | — | ||||||
Weighted average shares outstanding—diluted | 278,428 | 280,090 | 278,540 | ||||||
CASH_EQUIVALENTS_MARKETABLE_SE1
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 2013 and 2012 were comprised of the following (in thousands): | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 50,404 | $ | — | $ | — | $ | 50,404 | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,895 | $ | 15 | $ | — | $ | 47,910 | ||||||||
Corporate debt securities | 81,993 | 35 | (8 | ) | 82,020 | |||||||||||
Commercial paper | 5,647 | 2 | — | 5,649 | ||||||||||||
Certificates of deposit | 3,300 | 3 | — | 3,303 | ||||||||||||
$ | 138,835 | $ | 55 | $ | (8 | ) | $ | 138,882 | ||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 9,254 | $ | 3 | $ | — | $ | 9,257 | ||||||||
Foreign government notes | 1,250 | — | — | 1,250 | ||||||||||||
Corporate debt securities | 23,848 | 17 | (8 | ) | 23,857 | |||||||||||
$ | 34,352 | $ | 20 | $ | (8 | ) | $ | 34,364 | ||||||||
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 December 31, 2013 and 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 | ||||||||||||||||
December 31, 2013 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
December 31, | markets | inputs | inputs | |||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 50,404 | $ | 50,404 | $ | — | $ | — | ||||||||
Marketable securities | ||||||||||||||||
U.S. government agency notes | $ | 47,910 | $ | — | $ | 47,910 | $ | — | ||||||||
Corporate debt securities | 82,020 | — | 82,020 | — | ||||||||||||
Commercial paper | 5,649 | — | 5,649 | — | ||||||||||||
Certificates of deposit | 3,303 | — | 3,303 | — | ||||||||||||
$ | 138,882 | $ | — | $ | 138,882 | $ | — | |||||||||
Investments | ||||||||||||||||
U.S. government agency notes | $ | 9,257 | $ | — | $ | 9,257 | $ | — | ||||||||
Foreign government notes | 1,250 | — | 1,250 | — | ||||||||||||
Corporate debt securities | 23,857 | — | 23,857 | — | ||||||||||||
$ | 34,364 | $ | — | $ | 34,364 | $ | — | |||||||||
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 | $ | — | |||||||||
ACCOUNTS_RECEIVABLE_NET_Tables
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Schedule of accounts receivable, net | ' | |||||||||||||||
Accounts receivable, net, consist of the following (in thousands): | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Accounts receivable, gross | $ | 64,620 | $ | 68,728 | ||||||||||||
Allowance for doubtful accounts | (157 | ) | — | |||||||||||||
Accounts receivable, net | $ | 64,463 | $ | 68,728 | ||||||||||||
Schedule of allowance for doubtful accounts | ' | |||||||||||||||
The activity in the Company's allowance for doubtful accounts is as follows (in thousands): | ||||||||||||||||
Year ended December 31, | Balance at | Charges | Write-offs | Balance at | ||||||||||||
beginning | to expense | end of | ||||||||||||||
of year | year | |||||||||||||||
2013 | $ | — | $ | 415 | $ | (258 | ) | $ | 157 | |||||||
2012 | $ | — | $ | — | $ | — | $ | — | ||||||||
2011 | $ | 313 | $ | — | $ | (313 | ) | $ | — | |||||||
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of inventory | ' | |||||||
Inventory consists of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
On-hand final assemblies and finished goods inventories | $ | 19,070 | $ | 22,009 | ||||
Deferred cost of goods sold | 4,387 | 5,704 | ||||||
23,457 | 27,713 | |||||||
Less current portion | (21,793 | ) | (25,614 | ) | ||||
Noncurrent portion (included in Other assets) | $ | 1,664 | $ | 2,099 | ||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Schedule of property and equipment | ' | |||||||||
Property and equipment consists of the following (in thousands): | ||||||||||
December 31, | ||||||||||
Useful Life | 2013 | 2012 | ||||||||
Equipment | 3 years | $ | 80,710 | $ | 78,517 | |||||
Software | 2-3 years | 15,410 | 14,852 | |||||||
Furniture and fixtures | 3-5 years | 855 | 983 | |||||||
Leasehold improvements | Shorter of the life of the lease or estimated useful life (1-5 years) | 10,659 | 11,747 | |||||||
107,634 | 106,099 | |||||||||
Less accumulated depreciation and amortization | (88,532 | ) | (82,332 | ) | ||||||
Property and equipment, net | $ | 19,102 | $ | 23,767 | ||||||
The Company recorded depreciation and amortization expense related to property and equipment of $12.3 million for the year ended December 31, 2013, $12.9 million for the year ended December 31, 2012 and $11.6 million for the year ended December 31, 2011. | ||||||||||
Property and equipment under capital leases included in the amounts above are as follows (in thousands): | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Cost | $ | 326 | $ | 326 | ||||||
Less accumulated depreciation | (220 | ) | (194 | ) | ||||||
Property and equipment under capital leases, net | $ | 106 | $ | 132 | ||||||
The net book values of the Company's property and equipment by geographic area are as follows (in thousands): | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
United States | $ | 13,960 | $ | 16,110 | ||||||
Asia/Pacific | 4,665 | 6,811 | ||||||||
Europe | 453 | 792 | ||||||||
Other | 24 | 54 | ||||||||
$ | 19,102 | $ | 23,767 | |||||||
INTANGIBLE_ASSETS_AND_GOODWILL1
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of intangible assets | ' | |||||||||||||
The Company's intangible assets at December 31, 2013 and 2012 consist of the following (in thousands): | ||||||||||||||
31-Dec-13 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||
(years) | amortization | carrying value | ||||||||||||
Intellectual property | 5 | $ | 999 | $ | 999 | $ | — | |||||||
Developed technology | 5.03 | 9,080 | 2,729 | 6,351 | ||||||||||
Customer relationships | 5.3 | 6,140 | 2,806 | 3,334 | ||||||||||
Internal use software | 3 | 730 | 324 | 406 | ||||||||||
4.35 | $ | 16,949 | $ | 6,858 | $ | 10,091 | ||||||||
31-Dec-12 | 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 years ended December 31, 2013, 2012 and 2011 was as follows (in thousands): | ||||||||||||||
Year ended December 31, | Statement of operations classification | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Intellectual property | $ | 200 | $ | 400 | $ | 400 | Research and development | |||||||
Developed technology | 1,999 | 730 | — | Cost of revenue - product | ||||||||||
Customer relationships | 2,104 | 702 | — | Sales and marketing | ||||||||||
Order backlog | — | 860 | — | Cost of revenue - product | ||||||||||
Internal use software | 243 | 81 | — | Cost of revenue - product | ||||||||||
$ | 4,546 | $ | 2,773 | $ | 400 | |||||||||
Schedule of estimated future amortization expense for intangible assets | ' | |||||||||||||
Estimated future amortization expense for the Company's intangible assets at December 31, 2013 is as follows (in thousands): | ||||||||||||||
Years ending December 31, | ||||||||||||||
2014 | $ | 3,234 | ||||||||||||
2015 | 2,368 | |||||||||||||
2016 | 1,934 | |||||||||||||
2017 | 1,901 | |||||||||||||
2018 | 393 | |||||||||||||
Thereafter | 261 | |||||||||||||
$ | 10,091 | |||||||||||||
Schedule of goodwill | ' | |||||||||||||
The changes in the carrying value of the Company's goodwill in the years ended December 31, 2013 and 2012 are as follows (in thousands): | ||||||||||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Balance at January 1: | ||||||||||||||
Goodwill | $ | 35,485 | $ | 8,168 | ||||||||||
Accumulated impairment losses | (3,106 | ) | (3,106 | ) | ||||||||||
32,379 | 5,062 | |||||||||||||
Acquisition of NET | — | 27,317 | ||||||||||||
Balance at December 31 | $ | 32,379 | $ | 32,379 | ||||||||||
The components of the Company's goodwill balances at December 31, 2013 and 2012 are as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Balance: | ||||||||||||||
Goodwill | $ | 35,485 | $ | 35,485 | ||||||||||
Accumulated impairment losses | (3,106 | ) | (3,106 | ) | ||||||||||
$ | 32,379 | $ | 32,379 | |||||||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of accrued expenses | ' | |||||||
Accrued expenses consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Employee compensation and related costs | $ | 20,683 | $ | 15,799 | ||||
Other | 13,343 | 10,413 | ||||||
$ | 34,026 | $ | 26,212 | |||||
RESTRUCTURING_ACCRUAL_Tables
RESTRUCTURING ACCRUAL (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Summary of restructuring accrual activity | ' | |||||||||||||||||||
The tables below summarize the restructuring accrual activity for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||||||||||||
Balance at | Initiatives | Cash | Foreign | Balance at December 31, 2013 | ||||||||||||||||
January 1, | charged to | payments | exchange | |||||||||||||||||
2013 | expense | |||||||||||||||||||
Severance | $ | 1,135 | $ | 5,102 | $ | (4,904 | ) | $ | — | $ | 1,333 | |||||||||
Facilities | 4,100 | 309 | (1,397 | ) | — | 3,012 | ||||||||||||||
$ | 5,235 | $ | 5,411 | $ | (6,301 | ) | $ | — | $ | 4,345 | ||||||||||
Initiatives | Cash | Foreign | Balance at | |||||||||||||||||
charged to | payments | exchange | December 31, | |||||||||||||||||
expense | 2012 | |||||||||||||||||||
Severance | $ | 3,237 | $ | (2,097 | ) | $ | (5 | ) | $ | 1,135 | ||||||||||
Facilities | 4,133 | (35 | ) | 2 | 4,100 | |||||||||||||||
Restructuring accrual activity | 7,370 | $ | (2,132 | ) | $ | (3 | ) | $ | 5,235 | |||||||||||
Asset write-offs | 305 | |||||||||||||||||||
Total restructuring expense | $ | 7,675 | ||||||||||||||||||
LONGTERM_LIABILITIES_Tables
LONG-TERM LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities [Abstract] | ' | |||||||
Schedule of long-term liabilities | ' | |||||||
Long-term liabilities consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Capital lease obligations | $ | 154 | $ | 170 | ||||
Deferred rent | 3,057 | 3,551 | ||||||
Restructuring | 4,345 | 5,235 | ||||||
7,556 | 8,956 | |||||||
Current portion * | (3,185 | ) | (3,250 | ) | ||||
Long-term liabilities, net of current portion | $ | 4,371 | $ | 5,706 | ||||
* Includes $2.5 million at December 31, 2013 and $2.5 million at December 31, 2012 of current accrued restructuring reported as a component of Accrued expenses in the consolidated balance sheets. | ||||||||
Schedule of future minimum annual payments under capital leases | ' | |||||||
The future minimum annual payments under capital leases at December 31, 2013 are as follows (in thousands): | ||||||||
Years ending December 31, | ||||||||
2014 | $ | 89 | ||||||
2015 | 70 | |||||||
2016 | 2 | |||||||
Total minimum lease payments | 161 | |||||||
Less amount representing interest | (7 | ) | ||||||
Present value of minimum lease payments | 154 | |||||||
Less current portion | (84 | ) | ||||||
Long-term liabilities portion | $ | 70 | ||||||
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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 year ended December 31, 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 | 13,957,856 | $ | 2.92 | ||||||||||
Exercised | (1,304,918 | ) | $ | 2.04 | |||||||||
Forfeited | (2,018,807 | ) | $ | 2.67 | |||||||||
Expired | (2,614,417 | ) | $ | 4.92 | |||||||||
Outstanding at December 31, 2013 | 33,136,112 | $ | 3.22 | 6.81 | $ | 12,157 | |||||||
Vested or expected to vest at December 31, 2013 | 30,348,416 | $ | 3.26 | 6.62 | $ | 11,082 | |||||||
Exercisable at December 31, 2013 | 14,914,561 | $ | 3.73 | 4.47 | $ | 4,853 | |||||||
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 years ended December 31, 2013, 2012 and 2011 were estimated using the Black-Scholes valuation model with the following assumptions: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Risk-free interest rate | 0.82%-1.71% | 0.67%-0.89% | 0.95%-2.12% | ||||||||||
Expected dividends | — | — | — | ||||||||||
Weighted average volatility | 63.20% | 67.40% | 67.60% | ||||||||||
Expected life (years) | 4.5-6.0 | 4.5 | 4.5 | ||||||||||
Schedule of activity related to unvested restricted stock grants | ' | ||||||||||||
The activity related to the Company's unvested restricted stock grants for the year ended December 31, 2013 is as follows: | |||||||||||||
Shares | Weighted | ||||||||||||
Average | |||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Unvested balance at January 1, 2013 | 617,203 | $ | 2.45 | ||||||||||
Granted | 1,584,086 | $ | 2.83 | ||||||||||
Vested | (908,485 | ) | $ | 2.6 | |||||||||
Forfeited | (54,039 | ) | $ | 2.66 | |||||||||
Unvested balance at December 31, 2013 | 1,238,765 | $ | 2.82 | ||||||||||
Schedule of activity related to performance stock awards | ' | ||||||||||||
The activity related to the Company's performance-based stock awards for the year ended December 31, 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 | (1,205,858 | ) | $ | 2.61 | |||||||||
Forfeited | (140,449 | ) | $ | 1.78 | |||||||||
Unvested balance at December 31, 2013 | 1,059,541 | $ | 2.6 | ||||||||||
Schedule of stock-based compensation expenses which are included in condensed consolidated statement of operations | ' | ||||||||||||
The consolidated statements of operations include stock-based compensation for the years ended December 31, 2013, 2012 and 2011 as follows (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Product cost of revenue | $ | 181 | $ | 162 | $ | 398 | |||||||
Service cost of revenue | 1,050 | 813 | 1,203 | ||||||||||
Research and development | 3,616 | 2,297 | 2,045 | ||||||||||
Sales and marketing | 4,780 | 2,006 | 1,817 | ||||||||||
General and administrative | 8,246 | 3,725 | 2,402 | ||||||||||
$ | 17,873 | $ | 9,003 | $ | 7,865 | ||||||||
Schedule of common stock reserved for future issuance | ' | ||||||||||||
Common stock reserved for future issuance at December 31, 2013 consists of the following: | |||||||||||||
Amended 2007 Plan | 16,437,253 | ||||||||||||
2008 Plan | 2,066,069 | ||||||||||||
ESPP | 11,598,424 | ||||||||||||
30,101,746 | |||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Income (Loss) Before Taxes | ' | |||||||||||
The components of income (loss) from continuing operations before income taxes consist of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Loss before income taxes: | ||||||||||||
United States | $ | (21,076 | ) | $ | (49,337 | ) | $ | (13,144 | ) | |||
Foreign | 409 | 1,609 | 1,906 | |||||||||
$ | (20,667 | ) | $ | (47,728 | ) | $ | (11,238 | ) | ||||
Schedule of Income Tax Expense (Benefit) | ' | |||||||||||
The provision (benefit) for income taxes from continuing operations consists of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Provision (benefit) for income taxes: | ||||||||||||
Current: | ||||||||||||
Federal | $ | 14 | $ | 14 | $ | 14 | ||||||
State | 150 | 105 | 183 | |||||||||
Foreign | 1,696 | 1,465 | 1,212 | |||||||||
Total current | 1,860 | 1,584 | 1,409 | |||||||||
Deferred: | ||||||||||||
Federal | (1,911 | ) | (12,441 | ) | (140 | ) | ||||||
State | (103 | ) | (1,680 | ) | 696 | |||||||
Foreign | (1,081 | ) | 607 | 56 | ||||||||
Change in valuation allowance | 2,687 | 14,371 | (556 | ) | ||||||||
Total deferred | (408 | ) | 857 | 56 | ||||||||
Total | $ | 1,452 | $ | 2,441 | $ | 1,465 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
A reconciliation of the Company's effective tax rate for continuing operations to the statutory federal rate is as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. statutory income tax rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | ||||||
State income taxes, net of federal benefit | 0.4 | (3.6 | ) | 6 | ||||||||
Foreign income taxes | 1.3 | 3.2 | 5.3 | |||||||||
Capital loss expiration | 24 | — | — | |||||||||
Foreign deemed dividends | 1.8 | 2.1 | 9.3 | |||||||||
Stock-based compensation | 7.6 | 3.4 | 14.9 | |||||||||
Tax credits | (6.1 | ) | (0.7 | ) | 3.2 | |||||||
Uncertain tax positions | — | — | 0.1 | |||||||||
Deferred cost of goods sold elimination | — | (1.2 | ) | 5 | ||||||||
Valuation allowance | 9.9 | 35.5 | 2 | |||||||||
Goodwill amortization | 3.3 | 0.5 | — | |||||||||
Other, net | (0.2 | ) | 0.9 | 2.2 | ||||||||
Effective income tax rate | 7 | % | 5.1 | % | 13 | % | ||||||
Summary of Deferred Tax Assets and Liabilities | ' | |||||||||||
The following is a summary of the significant components of deferred income tax assets and liabilities (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Net operating loss carryforwards | $ | 64,811 | $ | 62,257 | ||||||||
Capital loss carryforwards | — | 5,455 | ||||||||||
Research and development tax credits | 21,401 | 19,627 | ||||||||||
Other tax credits | 160 | 249 | ||||||||||
Intangible assets | 2,530 | 1,332 | ||||||||||
Deferred revenue | 4,143 | 3,915 | ||||||||||
Accrued expenses | 10,519 | 7,871 | ||||||||||
Inventory | 6,498 | 5,750 | ||||||||||
Stock-based compensation | 9,263 | 7,881 | ||||||||||
Other temporary differences | 3,642 | 4,863 | ||||||||||
122,967 | 119,200 | |||||||||||
Valuation allowance | (119,616 | ) | (116,929 | ) | ||||||||
Total deferred tax assets | 3,351 | 2,271 | ||||||||||
Liabilities: | ||||||||||||
Purchased intangible assets | (922 | ) | (249 | ) | ||||||||
Unrealized gain on available-for-sale securities | (574 | ) | (574 | ) | ||||||||
Total deferred tax liabilities | (1,496 | ) | (823 | ) | ||||||||
Total net deferred tax assets | $ | 1,855 | $ | 1,448 | ||||||||
Reported as: | ||||||||||||
Deferred income taxes - current | $ | 656 | $ | 686 | ||||||||
Deferred income taxes - noncurrent | 1,199 | 762 | ||||||||||
$ | 1,855 | $ | 1,448 | |||||||||
Schedule of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the Company's unrecognized tax benefits is as follows (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits at January 1 | $ | 8,847 | $ | 10,004 | $ | 9,990 | ||||||
Increases related to current year tax positions | 14 | 14 | 14 | |||||||||
Decreases related to prior period tax positions | — | (1,171 | ) | — | ||||||||
Settlements | — | — | — | |||||||||
Unrecognized tax benefits at December 31 | $ | 8,861 | $ | 8,847 | $ | 10,004 | ||||||
MAJOR_CUSTOMERS_Tables
MAJOR CUSTOMERS (Tables) | 12 Months Ended | |||||
Dec. 31, 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 years ended December 31, 2013, 2012 and 2011: | ||||||
Year ended December 31, | ||||||
2013 | 2012 | 2011 | ||||
Bahamas Telecommunications Company Ltd. | * | * | 14% | |||
AT&T | 15% | 20% | 12% | |||
__________________________________ | ||||||
* | Represents less than 10% of revenue |
GEOGRAPHIC_AND_OPERATING_SEGME1
GEOGRAPHIC AND OPERATING SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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 of the Company's customers. The following table summarizes revenue by geographic area as a percentage of total revenue: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | 69 | % | 68 | % | 60 | % | ||||||
Europe, Middle East and Africa | 12 | 13 | 12 | |||||||||
Japan | 12 | 14 | 11 | |||||||||
Other Asia Pacific | 5 | 4 | 2 | |||||||||
Other | 2 | 1 | 15 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
Schedule of revenue by type | ' | |||||||||||
The Company's product revenue is comprised of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Trunking and communication applications | $ | 69,841 | $ | 85,694 | $ | 116,506 | ||||||
SBC | 97,431 | 67,632 | 37,867 | |||||||||
$ | 167,272 | $ | 153,326 | $ | 154,373 | |||||||
The Company's service revenue is comprised of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Maintenance | $ | 84,698 | $ | 76,423 | $ | 76,418 | ||||||
Professional services | 24,763 | 24,385 | 28,905 | |||||||||
$ | 109,461 | $ | 100,808 | $ | 105,323 | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Future minimum payments under operating lease arrangements as of December 31, 2013 are as follows (in thousands): | ||||
Years ending December 31, | ||||
2014 | $ | 5,824 | ||
2015 | 4,721 | |||
2016 | 3,316 | |||
2017 | 1,951 | |||
2018 | 1,135 | |||
Thereafter | 226 | |||
$ | 17,173 | |||
QUARTERLY_RESULTS_UNAUDITED_Ta
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of quarterly financial information | ' | |||||||||||||||
The following tables present the Company's quarterly operating results for the years ended December 31, 2013 and 2012. The information for each of these quarters is unaudited and has been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, all necessary adjustments, consisting only of normal recurring adjustments, have been included to present fairly the unaudited consolidated quarterly results when read in conjunction with the Company's audited consolidated financial statements and related notes. | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Fiscal 2013 | ||||||||||||||||
Revenue | $ | 63,288 | $ | 69,193 | $ | 68,099 | $ | 76,153 | ||||||||
Cost of revenue | 25,486 | 25,185 | 25,835 | 27,767 | ||||||||||||
Gross profit | $ | 37,802 | $ | 44,008 | $ | 42,264 | $ | 48,386 | ||||||||
Loss from operations | $ | (13,472 | ) | $ | (4,633 | ) | $ | (2,911 | ) | $ | (59 | ) | ||||
Net income (loss) | $ | (13,748 | ) | $ | (4,870 | ) | $ | (3,773 | ) | $ | 272 | |||||
Earnings (loss) per share (1): | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | — | |||||
Diluted | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | — | |||||
Shares used in computing earnings (loss) per share: | ||||||||||||||||
Basic | 281,542 | 282,389 | 279,209 | 270,936 | ||||||||||||
Diluted | 281,542 | 282,389 | 279,209 | 273,490 | ||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter (2) | Quarter (2) | Quarter | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Fiscal 2012 | ||||||||||||||||
Revenue | $ | 64,339 | $ | 57,610 | $ | 57,049 | $ | 75,136 | ||||||||
Cost of revenue | 22,585 | 24,815 | 24,607 | 39,533 | ||||||||||||
Gross profit | $ | 41,754 | $ | 32,795 | $ | 32,442 | $ | 35,603 | ||||||||
Loss from operations | $ | (6,197 | ) | $ | (11,792 | ) | $ | (14,804 | ) | $ | (15,749 | ) | ||||
Net loss | $ | (6,438 | ) | $ | (11,725 | ) | $ | (15,619 | ) | $ | (16,387 | ) | ||||
Loss per share (1): | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.06 | ) | ||||
Diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.06 | ) | ||||
Shares used in computing loss per share: | ||||||||||||||||
Basic | 279,487 | 279,926 | 280,145 | 280,773 | ||||||||||||
Diluted | 279,487 | 279,926 | 280,145 | 280,773 | ||||||||||||
__________________________________ | ||||||||||||||||
-1 | Earnings (loss) per share is calculated independently for each of the quarters presented; accordingly, the sum of the quarterly earnings (loss) per share amounts may not equal the total calculated for the year. | |||||||||||||||
-2 | Includes the results of NET for the period subsequent to August 24, 2012. |
BASIS_OF_PRESENTATION_AND_SUMM3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
financial_institution | financial_institution | |||
segment | ||||
Accounting Policies [Abstract] | ' | ' | ' | ' |
Maximum measurement period from the acquisition date within which company records adjustments to the assets acquired and liabilities assumed | ' | '1 year | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Write-off of prepaid royalties for software licenses | $7,100,000 | $0 | $7,083,000 | $0 |
Number of financial institutions | ' | 2 | 2 | ' |
Advertising expense | ' | 2,700,000 | 1,100,000 | 200,000 |
Number of reportable operating segments | ' | 1 | ' | ' |
Undistributed earnings of foreign subsidiaries | $19,000,000 | $17,000,000 | $19,000,000 | ' |
Leasehold Improvements [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '5 years | ' | ' |
Software [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '3 years | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '2 years | ' | ' |
Minimum [Member] | Leasehold Improvements [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '1 year | ' | ' |
Minimum [Member] | Software [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '2 years | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '5 years | ' | ' |
Maximum [Member] | Leasehold Improvements [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '5 years | ' | ' |
Maximum [Member] | Software [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, useful life | ' | '3 years | ' | ' |
BASIS_OF_PRESENTATION_AND_SUMM4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets and Goodwill (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible asset, useful life | '4 years 4 months 6 days | '4 years 4 months 6 days | ' |
Impairment of intangible assets | $600 | $0 | $0 |
Intellectual Property [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible asset, useful life | '5 years | '5 years | ' |
Minimum [Member] | Technology, Customers, Orders and Internal Software [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible asset, useful life | '4 months | ' | ' |
Maximum [Member] | Technology, Customers, Orders and Internal Software [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible asset, useful life | '6 years | ' | ' |
BASIS_OF_PRESENTATION_AND_SUMM5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Translation (Details) (General and Administrative Expense [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
General and Administrative Expense [Member] | ' | ' | ' |
Schedule of Foreign Currency Balance [Line Items] | ' | ' | ' |
Transaction losses | ($746) | ($1,365) | ($1,293) |
Remeasurement gains (losses) | -164 | 767 | 9 |
Transaction gains (losses) | ($910) | ($598) | ($1,284) |
ACQUISITION_OF_NET_Details
ACQUISITION OF NET - (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 24, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 24, 2012 | Aug. 24, 2012 | Aug. 24, 2012 | Aug. 24, 2012 | |
NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | ||||
Professional and services fees [Member] | Change of control agreements [Member] | Developed technology [Member] | Customer relationships [Member] | Order backlog [Member] | Internal use software [Member] | |||||||
Acquisition Of Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | $41,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration per share of the acquired entity (in dollars per share) | ' | ' | ' | $1.35 | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | 17,300,000 | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | 9,500,000 | ' | ' | ' | ' | ' | ' | ' |
Reduction to goodwill | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' |
Increase to other current assets | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' |
Decrease 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 | 0 | 35,508,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Assumption of equity awards in connection with acquisition of Network Technologies, Inc. | 0 | 892,000 | 0 | 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 | ' | ' | ' | ' | 9,080,000 | 6,140,000 | 860,000 | 730,000 |
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 | ' | ' | ' | ' | ' | ' | ' | ' |
Unaudited pro forma results of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | 284,970,000 | 308,660,000 | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | -62,148,000 | -60,984,000 | ' | ' | ' | ' | ' | ' |
Loss per share (in dollars per share) | ' | ' | ' | ' | ($0.22) | ($0.22) | ' | ' | ' | ' | ' | ' |
Acquisition-Related Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related costs | $93,000 | $5,496,000 | $0 | ' | $5,496,000 | ' | $3,571,000 | $1,925,000 | ' | ' | ' | ' |
EARNINGS_LOSS_PER_SHARE_Detail
EARNINGS (LOSS) PER SHARE - (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reconciliation of weighted average shares outstanding from basic to diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Weighted average shares outstanding - basic | 270,936,000 | 279,209,000 | [1] | 282,389,000 | 281,542,000 | 280,773,000 | 280,145,000 | 279,926,000 | [2] | 279,487,000 | 278,428,000 | 280,090,000 | 278,540,000 |
Potential dilutive common shares | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||
Weighted average shares outstanding - diluted | 273,490,000 | 279,209,000 | [1] | 282,389,000 | 281,542,000 | 280,773,000 | 280,145,000 | 279,926,000 | [2] | 279,487,000 | 278,428,000 | 280,090,000 | 278,540,000 |
Common stock and unvested shares of restricted stock not included because their effect would have been antidilutive (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 35,400,000 | 25,700,000 | 24,900,000 | ||
[1] | Earnings (loss) per share is calculated independently for each of the quarters presented; accordingly, the sum of the quarterly earnings (loss) per share amounts may not equal the total calculated for the year. | ||||||||||||
[2] | Includes the results of NET for the period subsequent to August 24, 2012. |
CASH_EQUIVALENTS_MARKETABLE_SE2
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Schedule of Activity for Short-Term Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 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 | $50,404 | $69,389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents, fair value | 50,404 | 69,389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities, amortized cost | 138,835 | 161,835 | ' | ' | 47,895 | 53,646 | ' | 2,000 | 81,993 | 84,047 | 5,647 | 7,492 | 3,300 | 14,650 |
Marketable securities, unrealized gains | 55 | 75 | ' | ' | 15 | 22 | ' | 1 | 35 | 34 | 2 | 5 | 3 | 13 |
Marketable securities, unrealized losses | -8 | -5 | ' | ' | 0 | 0 | ' | 0 | -8 | -5 | 0 | 0 | 0 | 0 |
Marketable securities, fair value | 138,882 | 161,905 | ' | ' | 47,910 | 53,668 | ' | 2,001 | 82,020 | 84,076 | 5,649 | 7,497 | 3,303 | 14,663 |
Investments, amortized cost | 34,352 | 29,664 | ' | ' | 9,254 | 19,358 | 1,250 | ' | 23,848 | 10,306 | ' | ' | ' | ' |
Investments, unrealized gains | 20 | 40 | ' | ' | 3 | 20 | 0 | ' | 17 | 20 | ' | ' | ' | ' |
Investments, unrealized losses | -8 | -6 | ' | ' | 0 | 0 | 0 | ' | -8 | -6 | ' | ' | ' | ' |
Investments, fair value | $34,364 | $29,698 | ' | ' | $9,257 | $19,378 | $1,250 | ' | $23,857 | $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 $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | $50,404 | $69,389 |
Marketable securities, fair value | 138,882 | 161,905 |
Investments, fair value | 34,364 | 29,698 |
Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 50,404 | 69,389 |
Marketable securities, fair value | 138,882 | 161,905 |
Investments, fair value | 34,364 | 29,698 |
Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 50,404 | 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 | 138,882 | 161,905 |
Investments, fair value | 34,364 | 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 | 47,910 | 53,668 |
Investments, fair value | 9,257 | 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 | 47,910 | 53,668 |
Investments, fair value | 9,257 | 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 | 1,250 | ' |
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 | 1,250 | ' |
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 | 82,020 | 84,076 |
Investments, fair value | 23,857 | 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 | 82,020 | 84,076 |
Investments, fair value | 23,857 | 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 | 5,649 | 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 | 5,649 | 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 | 3,303 | 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 | 3,303 | 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 |
ACCOUNTS_RECEIVABLE_NET_Schedu
ACCOUNTS RECEIVABLE, NET - Schedule of Accounts Receivabale, Net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Receivables [Abstract] | ' | ' | ' | ' |
Accounts receivable, gross | $64,620 | $68,728 | ' | ' |
Allowance for doubtful accounts | -157 | 0 | 0 | -313 |
Accounts receivable, net | $64,463 | $68,728 | ' | ' |
ACCOUNTS_RECEIVABLE_NET_Schedu1
ACCOUNTS RECEIVABLE, NET - Schedule of Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Balance at beginning of year | $0 | $0 | $313 |
Charges to expense | 415 | 0 | 0 |
Write-offs | -258 | 0 | -313 |
Balance at end of year | $157 | $0 | $0 |
INVENTORY_Details
INVENTORY - (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
On-hand final assemblies and finished goods inventories | $19,070 | $22,009 |
Deferred cost of goods sold | 4,387 | 5,704 |
Gross inventory | 23,457 | 27,713 |
Less current portion | -21,793 | -25,614 |
Noncurrent portion (included in other assets) | $1,664 | $2,099 |
PROPERTY_AND_EQUIPMENT_Schedul
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $107,634 | $106,099 |
Less accumulated depreciation and amortization | -88,532 | -82,332 |
Property and equipment, net | 19,102 | 23,767 |
Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '2 years | ' |
Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '5 years | ' |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '3 years | ' |
Property and equipment, gross | 80,710 | 78,517 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '3 years | ' |
Property and equipment, gross | 15,410 | 14,852 |
Software [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '2 years | ' |
Software [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '3 years | ' |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 855 | 983 |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '3 years | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '5 years | ' |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '5 years | ' |
Property and equipment, gross | $10,659 | $11,747 |
Leasehold Improvements [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '1 year | ' |
Leasehold Improvements [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, useful life | '5 years | ' |
PROPERTY_AND_EQUIPMENT_Narrati
PROPERTY AND EQUIPMENT - Narrative (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation and amortization of property and equipment | $12,329 | $12,891 | $11,629 |
PROPERTY_AND_EQUIPMENT_Propert
PROPERTY AND EQUIPMENT - Property and Equipment Under Capital Leases (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Cost | $326 | $326 |
Less accumulated depreciation | -220 | -194 |
Property and equipment under capital leases, net | $106 | $132 |
PROPERTY_AND_EQUIPMENT_Propert1
PROPERTY AND EQUIPMENT - Property and Equipment by Geographic Area (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $19,102 | $23,767 |
United States [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | 13,960 | 16,110 |
Asia/Pacific [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | 4,665 | 6,811 |
Europe [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | 453 | 792 |
Other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $24 | $54 |
INTANGIBLE_ASSETS_AND_GOODWILL2
INTANGIBLE ASSETS AND GOODWILL - (Details) (USD $) | 12 Months Ended | ||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 24, 2012 | Aug. 24, 2012 | Aug. 24, 2012 | Aug. 24, 2012 | Aug. 24, 2012 |
Intellectual Property [Member] | Intellectual Property [Member] | Intellectual Property [Member] | Developed technology [Member] | Developed technology [Member] | Developed technology [Member] | Customer relationships [Member] | Customer relationships [Member] | Customer relationships [Member] | Order backlog [Member] | Order backlog [Member] | Order backlog [Member] | Internal use software [Member] | Internal use software [Member] | Internal use software [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | ||||
Developed technology [Member] | Customer relationships [Member] | Order backlog [Member] | Internal use software [Member] | ||||||||||||||||||||
Intangible Assets And Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,810 | $9,080 | $6,140 | $860 | $730 |
Weighted average amortization period (years) | '4 years 4 months 6 days | '4 years 4 months 6 days | ' | '5 years | '5 years | ' | '5 years 0 months 11 days | '5 years 0 months 11 days | ' | '5 years 3 months 18 days | '5 years 3 months 18 days | ' | ' | '3 months 29 days | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' |
Cost | 16,949 | 19,809 | ' | 999 | 2,999 | ' | 9,080 | 9,080 | ' | 6,140 | 6,140 | ' | ' | 860 | ' | 730 | 730 | ' | ' | ' | ' | ' | ' |
Accumulated amortization | 6,858 | 4,572 | ' | 999 | 2,199 | ' | 2,729 | 730 | ' | 2,806 | 702 | ' | ' | 860 | ' | 324 | 81 | ' | ' | ' | ' | ' | ' |
Net carrying value | 10,091 | 15,237 | ' | 0 | 800 | ' | 6,351 | 8,350 | ' | 3,334 | 5,438 | ' | ' | 0 | ' | 406 | 649 | ' | ' | ' | ' | ' | ' |
Amortization expense | 4,546 | 2,773 | 400 | 200 | 400 | 400 | 1,999 | 730 | 0 | 2,104 | 702 | 0 | 0 | 860 | 0 | 243 | 81 | 0 | ' | ' | ' | ' | ' |
Impairment of intangible assets | 600 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated future amortization expense for intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 3,234 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 2,368 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 1,934 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 1,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 393 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 261 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 10,091 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 35,485 | 35,485 | 8,168 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated impairment losses | -3,106 | -3,106 | -3,106 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill at the beginning of the period | 32,379 | 5,062 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of NET | 0 | 27,317 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill at the end of the period | $32,379 | $32,379 | $5,062 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES - (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Employee compensation and related costs | $20,683 | $15,799 |
Other | 13,343 | 10,413 |
Total | $34,026 | $26,212 |
RESTRUCTURING_ACCRUAL_Details
RESTRUCTURING ACCRUAL - (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
facilities | |||
RESTRUCTURING ACCRUAL | ' | ' | ' |
Number of locations | ' | 3 | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at the beginning of the period | $5,235,000 | ' | ' |
Restructuring | 5,411,000 | 7,675,000 | 0 |
Cash payments | 6,301,000 | ' | ' |
Foreign exchange | 0 | ' | ' |
Balance at the end of the period | 4,345,000 | 5,235,000 | ' |
Other Long Term Liabilities [Member] | ' | ' | ' |
RESTRUCTURING ACCRUAL | ' | ' | ' |
Accrued restructuring | 1,800,000 | ' | ' |
Employee severance [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at the beginning of the period | 1,135,000 | ' | ' |
Restructuring | 5,102,000 | 3,237,000 | ' |
Cash payments | 4,904,000 | 2,097,000 | ' |
Foreign exchange | 0 | -5,000 | ' |
Balance at the end of the period | 1,333,000 | 1,135,000 | ' |
Facilities [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at the beginning of the period | 4,100,000 | ' | ' |
Restructuring | 309,000 | 4,133,000 | ' |
Cash payments | 1,397,000 | 35,000 | ' |
Foreign exchange | 0 | 2,000 | ' |
Balance at the end of the period | 3,012,000 | 4,100,000 | ' |
Facilities [Member] | CALIFORNIA [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring | 4,000,000 | ' | ' |
Facilities [Member] | NEW JERSEY [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring | 100,000 | ' | ' |
Facilities [Member] | FRANCE [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring | 100,000 | ' | ' |
Unrealized Gain (Loss or Write-down) [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring | ' | 305,000 | ' |
Employee Severance and Facilities [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring | ' | 7,370,000 | ' |
Cash payments | ' | 2,132,000 | ' |
Foreign exchange | ' | -3,000 | ' |
Balance at the end of the period | ' | $5,235,000 | ' |
DEBT_Details
DEBT - (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 24, 2012 | Dec. 31, 2007 | Dec. 31, 2013 | Aug. 27, 2012 | Aug. 24, 2012 | Sep. 26, 2012 | 15-May-00 | 31-May-89 | Dec. 31, 2013 | Aug. 24, 2012 | |
NET [Member] | 2007 Notes [Member] | 2007 Notes [Member] | 2007 Notes [Member] | 2007 Notes [Member] | 1989 Debentures [Member] | 1989 Debentures [Member] | 1989 Debentures [Member] | 1989 Debentures [Member] | 1989 Debentures [Member] | ||||
NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | NET [Member] | |||||
annual_payments | |||||||||||||
DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | ' | 7.25% | ' |
Amount of debt issued | ' | ' | ' | ' | $85,000,000 | ' | ' | ' | ' | ' | $75,000,000 | ' | ' |
Amount of debt assumed and outstanding at the acquisition date | ' | ' | ' | ' | ' | ' | ' | 10,500,000 | ' | ' | ' | ' | 23,700,000 |
Conversion rate of shares per principal | ' | ' | ' | ' | 73.3689 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of principal per debt conversion | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount at which notes may be required to be repurchased in event of fundamental change | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | 100.00% | ' |
Repurchase of aggregate principal amounts | ' | ' | ' | ' | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' |
Aggregate principal amounts remaining outstanding | 0 | 2,380,000 | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' |
Debt conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31.50 |
Number of annual payments under sinking fund | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' |
Annual payment to sinking fund as a percentage of aggregate principal amount of debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' |
Annual payment to sinking fund | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | ' | ' | ' |
Total remaining sinking fund requirement at the acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 |
Cash consideration per share of the acquired entity (in dollars per share) | ' | ' | ' | $1.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of aggregate principal amount of debentures | 0 | 31,824,000 | 0 | ' | ' | ' | ' | ' | 23,700,000 | ' | ' | ' | ' |
Payment of accrued interest on debentures | ' | ' | ' | ' | ' | ' | ' | ' | ($600,000) | ' | ' | ' | ' |
LONGTERM_LIABILITIES_Schedule_
LONG-TERM LIABILITIES - Schedule of Long-Term Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Liabilities [Abstract] | ' | ' |
Capital lease obligations | $154,000 | $170,000 |
Deferred rent | 3,057,000 | 3,551,000 |
Restructuring | 4,345,000 | 5,235,000 |
Long-term liabilities | 7,556,000 | 8,956,000 |
Current portion | -3,185,000 | -3,250,000 |
Other long-term liabilities | 4,371,000 | 5,706,000 |
Current portion of accrued restructuring | $2,500,000 | $2,500,000 |
LONGTERM_LIABILITIES_Schedule_1
LONG-TERM LIABILITIES - Schedule of Future Minimum Lease Payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Other Liabilities [Abstract] | ' |
2014 | $89 |
2015 | 70 |
2016 | 2 |
Total minimum lease payments | 161 |
Less amount representing interest | -7 |
Present value of minimum lease payments | 154 |
Less current portion | -84 |
Long-term liabilities portion | $70 |
STOCKHOLDER_RIGHTS_PLAN_Detail
STOCKHOLDER RIGHTS PLAN - (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jul. 08, 2008 | |
Stockholders' Equity Note [Abstract] | ' | ' |
Preferred Stock Purchase Rights, Dividend Distributed, Basis | 1 | ' |
Preferred stock per right | ' | 1 |
Preferred stock purchase price | ' | $25 |
Preferred stock, minimum percentage of ownership, exercise rights | ' | 15.00% |
COMMON_STOCK_REPURCHASES_Detai
COMMON STOCK REPURCHASES (Details) (Common Stock [Member], USD $) | 0 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jul. 29, 2013 | Dec. 31, 2013 |
Common Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Stock Repurchase Program, Authorized Amount | $100 | ' |
Treasury Stock, Value, Acquired, Cost Method | ' | $59.70 |
Treasury Stock, Shares, Retired | ' | 18.5 |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS - (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 11 Months Ended | 12 Months Ended | 12 Months Ended | 37 Months Ended | 12 Months Ended | 37 Months Ended | |||||||||||||||||||||||||||||||||||
Feb. 15, 2013 | Mar. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 24, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 15, 2013 | Dec. 31, 2013 | Feb. 15, 2013 | Aug. 07, 2012 | Feb. 15, 2013 | Aug. 10, 2012 | Dec. 31, 2012 | Feb. 18, 2014 | Jun. 17, 2013 | Feb. 15, 2013 | Jun. 16, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Aug. 24, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2012 | |
executives | executives | NET [Member] | Minimum [Member] | Maximum [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] | Research and development [Member] | Research and development [Member] | Research and development [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Restricted stock awards [Member] | Restricted stock awards [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] | Raymond P. Dolan, President and Chief Executive Officer [Member] | Amended 2007 plan [Member] | Amended 2007 plan [Member] | Amended 2007 plan [Member] | Amended 2007 plan [Member] | 2008 plan [Member] | 2008 plan [Member] | 2008 plan [Member] | 2008 plan [Member] | 2008 plan [Member] | ESPP [Member] | Annual Vesting Period [Member] | Annual Vesting Period [Member] | Annual Vesting Period [Member] | Monthly Vesting Period [Member] | Semi Annual Vesting Period [Member] | ||||
Restricted stock awards [Member] | Restricted stock awards [Member] | Performance share awards [Member] | Performance share awards [Member] | Performance share awards [Member] | Subsequent Event [Member] | NET [Member] | Converted awards [Member] | Converted awards [Member] | Converted awards [Member] | Stock options [Member] | Restricted stock awards [Member] | Exchange Offer [Member] | Stock options [Member] | Restricted stock awards [Member] | ||||||||||||||||||||||||||||||||||||||
NET [Member] | NET [Member] | NET [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future issuance (in shares) | ' | ' | 30,101,746 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,437,253 | 2,066,069 | ' | ' | ' | ' | 11,598,424 | ' | ' | ' | ' | ' |
Conversion factor used to convert a number of shares available for grant into the entity's equity awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | 1.25 | ' | 0.75 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Executives | 8 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award, Percentage of Bonus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition consideration per share (in dollars per share) | ' | ' | ' | ' | ' | $1.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.35 | ' | ' | ' | ' | ' | ' |
Number of consecutive trading days used to calculate conversion price of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 days | ' | ' | ' | ' | ' | ' | ' |
Business acquisition purchase consideration - assumed equity awards | ' | ' | $0 | $892,000 | $0 | $892,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the assumed awards attributable to future stock-based compensation expense | ' | ' | 22,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period to record stock-based compensation expenses | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | 33.33% | 75.00% | 75.00% |
Award expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,116,398 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,957,856 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,304,918 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,018,807 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,614,417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,136,112 | 25,116,398 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,348,416 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,914,561 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.92 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.22 | $3.46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 9 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 7 months 13 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 5 months 19 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,157,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,082,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,853,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of assumptions used in estimating fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rates, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.82% | 0.67% | 0.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rates, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.71% | 0.89% | 2.12% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividends | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63.20% | 67.40% | 67.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | '4 years 6 months | '4 years 6 months | ' | '4 years 6 months | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of stock options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.48 | $1.39 | $1.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic values of stock options exercised (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | 200,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from the exercise of stock options (in dollars) | ' | ' | 2,669,000 | 254,000 | 818,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | 300,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in unvested restricted stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 617,203 | ' | ' | ' | 421,348 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,584,086 | ' | ' | ' | 1,984,500 | 183,824 | 108,398 | 280,899 | 421,348 | ' | 1,000,000 | 33,000 | 40,000 | ' | 73,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -908,485 | ' | ' | ' | -1,205,858 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -54,039 | ' | ' | ' | -140,449 | ' | ' | -140,449 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,238,765 | 617,203 | ' | ' | 1,059,541 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value of Base Salary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.83 | ' | ' | ' | $2.72 | $2.72 | ' | ' | ' | $1.78 | $3.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.60 | ' | ' | ' | $2.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.66 | ' | ' | ' | $1.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.82 | $2.45 | ' | ' | $2.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of restricted stock awards, restricted stock units and performance-based stock awards on date vested | ' | ' | 6,816,000 | 1,640,000 | 4,331,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 1,800,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' |
Maximum shares per employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' | ' | ' |
Percent of additional shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' |
Stock-based compensation (in dollars) | ' | ' | $17,873,000 | $9,003,000 | $7,865,000 | ' | ' | ' | $181,000 | $162,000 | $398,000 | $1,050,000 | $813,000 | $1,203,000 | $3,616,000 | $2,297,000 | $2,045,000 | $4,780,000 | $2,006,000 | $1,817,000 | $8,246,000 | $3,725,000 | $2,402,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EMPLOYEE_DEFINED_CONTRIBUTION_1
EMPLOYEE DEFINED CONTRIBUTION PLAN - (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Percentage of matching contribution | 50.00% | ' |
Maximum amount of company match | $3,500 | ' |
401(k) expense | $1,700,000 | $1,400,000 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES - Schedule of Income (Loss) Before Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loss before income taxes: | ' | ' | ' |
United States | ($21,076) | ($49,337) | ($13,144) |
Foreign | 409 | 1,609 | 1,906 |
Loss before income taxes | ($20,667) | ($47,728) | ($11,238) |
INCOME_TAXES_Schedule_of_Incom1
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $14 | $14 | $14 |
State | 150 | 105 | 183 |
Foreign | 1,696 | 1,465 | 1,212 |
Total current | 1,860 | 1,584 | 1,409 |
Deferred: | ' | ' | ' |
Federal | -1,911 | -12,441 | -140 |
State | -103 | -1,680 | 696 |
Foreign | -1,081 | 607 | 56 |
Change in valuation allowance | 2,687 | 14,371 | -556 |
Total deferred | -408 | 857 | 56 |
Total | $1,452 | $2,441 | $1,465 |
INCOME_TAXES_Schedule_of_Effec
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S Statutory income tax rate | -35.00% | -35.00% | -35.00% |
State income taxes, net of federal benefit | 0.40% | -3.60% | 6.00% |
Foreign income taxes | 1.30% | 3.20% | 5.30% |
Capital loss expiration | 24.00% | 0.00% | 0.00% |
Foreign dividends | 1.80% | 2.10% | 9.30% |
Stock-based compensation | 7.60% | 3.40% | 14.90% |
Tax credits | -6.10% | -0.70% | 3.20% |
Uncertain tax positions | 0.00% | 0.00% | 0.10% |
Deferred cost of goods sold elimination | 0.00% | -1.20% | 5.00% |
Valuation allowance | 9.90% | 35.50% | 2.00% |
Goodwill amortization | 3.30% | 0.50% | 0.00% |
Other, net | -0.20% | 0.90% | 2.20% |
Effective income tax rate | 7.00% | 5.10% | 13.00% |
INCOME_TAXES_Summary_of_Deferr
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Net operating loss carryforwards | $64,811 | $62,257 |
Capital loss carryforwards | 0 | 5,455 |
Research and development tax credits | 21,401 | 19,627 |
Other tax credits | 160 | 249 |
Intangible assets | 2,530 | 1,332 |
Deferred revenue | 4,143 | 3,915 |
Accrued expenses | 10,519 | 7,871 |
Inventory | 6,498 | 5,750 |
Stock-based compensation | 9,263 | 7,881 |
Other temporary differences | 3,642 | 4,863 |
Deferred tax assets, gross | 122,967 | 119,200 |
Valuation allowance | -119,616 | -116,929 |
Total deferred tax assets | 3,351 | 2,271 |
Liabilities: | ' | ' |
Purchased intangible assets | -922 | -249 |
Unrealized gain on available-for-sale securities | -574 | -574 |
Total deferred tax liabilities | -1,496 | -823 |
Total net deferred tax assets | 1,855 | 1,448 |
Deferred income taxes - current | 656 | 686 |
Deferred income taxes - noncurrent | $1,199 | $762 |
INCOME_TAXES_Operating_Loss_Na
INCOME TAXES - Operating Loss Narrative (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Operating Loss Carryforwards [Line Items] | ' | ' |
Share price (in usd per share) | $3.15 | ' |
Internal Revenue Service (IRS) [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | $200.60 | ' |
Portion of operating loss carryforwards for stock option deductions | 127 | ' |
Operating carryforward not recognized | 25 | ' |
State and Local Jurisdiction [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | 88.7 | ' |
Foreign Tax Authority [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | 0.8 | ' |
Foreign Tax Authority [Member] | NET [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | $3 | ' |
Stock options [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Weighted average exercise price (in usd per share) | $3.22 | $3.46 |
INCOME_TAXES_Tax_Carryforward_
INCOME TAXES - Tax Carryforward Narrative (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Nov. 26, 2008 |
Zynetix [Member] | Zynetix [Member] | ||||
Capital Loss Carryforward [Member] | Capital Loss Carryforward [Member] | ||||
Other Tax Carryforward [Line Items] | ' | ' | ' | ' | ' |
Deferred tax assets, stock-based compensation | $9,263,000 | $7,881,000 | ' | ' | ' |
Tax credit carryforward | 27,000,000 | ' | ' | ' | ' |
Capital loss carryforward | ' | ' | ' | ' | 14,100,000 |
Deferred tax asset, capital loss carryforwards | 0 | 5,455,000 | ' | 5,500,000 | ' |
Deferred tax assets, valuation allowance | 119,616,000 | 116,929,000 | ' | ' | ' |
Unrecognized tax penalties and interest | $14,000 | $14,000 | $14,000 | ' | ' |
INCOME_TAXES_Schedule_of_Unrec
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits at the beginning of the period | $8,847 | $10,004 | $9,990 |
Increases related to current year tax positions | 14 | 14 | 14 |
Decreases related to prior period tax positions | 0 | -1,171 | 0 |
Settlements | 0 | 0 | 0 |
Unrecognized tax benefits at the end of the period | $8,861 | $8,847 | $10,004 |
MAJOR_CUSTOMERS_Details
MAJOR CUSTOMERS - (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenue [Member] | Less than [Member] | ' | ' | ' |
MAJOR CUSTOMERS | ' | ' | ' |
Threshold percentage | 10.00% | ' | ' |
Revenue [Member] | Customer [Member] | Bahamas Telecom [Member] | ' | ' | ' |
MAJOR CUSTOMERS | ' | ' | ' |
Concentration risk, percentage | ' | ' | 14.00% |
Revenue [Member] | Customer [Member] | AT&T [Member] | ' | ' | ' |
MAJOR CUSTOMERS | ' | ' | ' |
Concentration risk, percentage | 15.00% | 20.00% | 12.00% |
Accounts receivable balance [Member] | ' | ' | ' |
MAJOR CUSTOMERS | ' | ' | ' |
Threshold percentage | 10.00% | ' | ' |
Accounts receivable balance [Member] | Customer [Member] | ' | ' | ' |
MAJOR CUSTOMERS | ' | ' | ' |
Concentration risk, percentage | 13.00% | 25.00% | ' |
Number of major customers | 1 | 1 | ' |
GEOGRAPHIC_AND_OPERATING_SEGME2
GEOGRAPHIC AND OPERATING SEGMENT INFORMATION - Summary of Revenue by Geographic Area as a Percentage of Total Revenue (Details) (Revenue [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Geographical area [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | 100.00% | 100.00% | 100.00% |
Geographical area [Member] | United States [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | 69.00% | 68.00% | 60.00% |
Geographical area [Member] | Europe, Middle East and Africa [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | 12.00% | 13.00% | 12.00% |
Geographical area [Member] | Japan [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | 12.00% | 14.00% | 11.00% |
Geographical area [Member] | Other Asia Pacific [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | 5.00% | 4.00% | 2.00% |
Geographical area [Member] | Other [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | 2.00% | 1.00% | 15.00% |
Customer [Member] | Bahamas Telecom [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | ' | ' | 14.00% |
Customer [Member] | Other [Member] | Bahamas Telecom [Member] | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' |
Percentage of total revenue | 14.00% | ' | ' |
GEOGRAPHIC_AND_OPERATING_SEGME3
GEOGRAPHIC AND OPERATING SEGMENT INFORMATION - Summary by Product and Type of Service (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' |
Product | $167,272 | $153,326 | $154,373 |
Service | 109,461 | 100,808 | 105,323 |
Products, trunking and communications applications [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Product | 69,841 | 85,694 | 116,506 |
Products, SBC [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Product | 97,431 | 67,632 | 37,867 |
Services, Maintenance [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Service | 84,698 | 76,423 | 76,418 |
Services, Professional services [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Service | $24,763 | $24,385 | $28,905 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Leases Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
sqft | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Area of leased facility (in sqft) | 97,500 | ' | ' |
Rent expense | $5,500,000 | $5,000,000 | $5,300,000 |
Years ending December 31, | ' | ' | ' |
2014 | 5,824,000 | ' | ' |
2015 | 4,721,000 | ' | ' |
2016 | 3,316,000 | ' | ' |
2017 | 1,951,000 | ' | ' |
2018 | 1,135,000 | ' | ' |
Thereafter | 226,000 | ' | ' |
Operating lease, future minimum payments | $17,173,000 | ' | ' |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT - (Details) (Subsequent Event [Member], Performance Technologies Incorporated [Member], USD $) | Feb. 19, 2014 |
In Millions, except Per Share data, unless otherwise specified | |
Subsequent Event [Member] | Performance Technologies Incorporated [Member] | ' |
Subsequent Event [Line Items] | ' |
Acquisition consideration per share (in dollars per share) | $3.75 |
Business Combination, Consideration Transferred | $34 |
QUARTERLY_RESULTS_UNAUDITED_De
QUARTERLY RESULTS (UNAUDITED) - (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenue | $76,153 | $68,099 | [1] | $69,193 | $63,288 | $75,136 | $57,049 | $57,610 | [2] | $64,339 | $276,733 | $254,134 | $259,696 | ||||||
Cost of revenue | 27,767 | 25,835 | [1] | 25,185 | 25,486 | 39,533 | 24,607 | 24,815 | [2] | 22,585 | 104,273 | 111,540 | 113,575 | ||||||
Gross profit | 48,386 | 42,264 | [1] | 44,008 | 37,802 | 35,603 | 32,442 | 32,795 | [2] | 41,754 | 172,460 | 142,594 | 146,121 | ||||||
Income (loss) from operations | -59 | -2,911 | [1] | -4,633 | -13,472 | -15,749 | -14,804 | -11,792 | [2] | -6,197 | -21,075 | -48,542 | -12,525 | ||||||
Net loss | $272 | ($3,773) | [1] | ($4,870) | ($13,748) | ($16,387) | ($15,619) | ($11,725) | [2] | ($6,438) | ($22,119) | ($50,169) | ($12,703) | ||||||
Loss per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in dollars per share) | $0 | [2] | ($0.01) | [1],[2] | ($0.02) | [2] | ($0.05) | [2] | ($0.06) | [1] | ($0.06) | [1] | ($0.04) | [1],[2] | ($0.02) | [1] | ($0.08) | ($0.18) | ($0.05) |
Diluted (in dollars per share) | $0 | [2] | ($0.01) | [1],[2] | ($0.02) | [2] | ($0.05) | [2] | ($0.06) | [1] | ($0.06) | [1] | ($0.04) | [1],[2] | ($0.02) | [1] | ($0.08) | ($0.18) | ($0.05) |
Shares used in computing loss per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in shares) | 270,936 | 279,209 | [1] | 282,389 | 281,542 | 280,773 | 280,145 | 279,926 | [2] | 279,487 | 278,428 | 280,090 | 278,540 | ||||||
Diluted (in shares) | 273,490 | 279,209 | [1] | 282,389 | 281,542 | 280,773 | 280,145 | 279,926 | [2] | 279,487 | 278,428 | 280,090 | 278,540 | ||||||
[1] | Earnings (loss) per share is calculated independently for each of the quarters presented; accordingly, the sum of the quarterly earnings (loss) per share amounts may not equal the total calculated for the year. | ||||||||||||||||||
[2] | Includes the results of NET for the period subsequent to August 24, 2012. |