Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 26, 2014 | Oct. 21, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'SONUS NETWORKS INC | ' |
Entity Central Index Key | '0001105472 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 26-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 247,124,736 |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $50,918 | $72,423 |
Marketable securities | 59,565 | 138,882 |
Accounts receivable, net of allowance for doubtful accounts of $143 at September 26, 2014 and $157 at December 31, 2013 | 58,906 | 64,463 |
Inventory | 22,008 | 21,793 |
Deferred income taxes | 1,131 | 656 |
Other current assets | 16,432 | 15,073 |
Total current assets | 208,960 | 313,290 |
Property and equipment, net | 18,859 | 19,102 |
Intangible assets, net | 23,789 | 10,091 |
Goodwill | 39,207 | 32,379 |
Investments | 43,581 | 34,364 |
Deferred income taxes | 1,178 | 2,121 |
Other assets | 3,605 | 6,137 |
Total assets | 339,179 | 417,484 |
Current liabilities: | ' | ' |
Accounts payable | 6,636 | 11,164 |
Accrued expenses | 32,840 | 34,026 |
Current portion of deferred revenue | 39,928 | 41,169 |
Convertible subordinated note | 2,380 | 2,380 |
Current portion of long-term liabilities | 839 | 672 |
Total current liabilities | 82,623 | 89,411 |
Deferred revenue | 10,214 | 10,528 |
Deferred income taxes | 1,527 | 922 |
Other long-term liabilities | 3,648 | 4,371 |
Total liabilities | 98,012 | 105,232 |
Commitments and contingencies (Note 16) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share; 5,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value per share; 600,000,000 shares authorized; 246,954,783 shares issued and outstanding at September 26, 2014; 266,226,845 shares issued and outstanding at December 31, 2013 | 247 | 266 |
Additional paid-in capital | 1,224,290 | 1,280,442 |
Accumulated deficit | -989,155 | -974,492 |
Accumulated other comprehensive income | 5,785 | 6,036 |
Total stockholders' equity | 241,167 | 312,252 |
Total liabilities and stockholders' equity | $339,179 | $417,484 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $143 | $157 |
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 | 246,954,783 | 266,226,845 |
Common stock, shares outstanding | 246,954,783 | 266,226,845 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Revenue: | ' | ' | ' | ' |
Product | $44,900 | $40,712 | $135,885 | $121,447 |
Service | 28,316 | 27,387 | 83,643 | 79,133 |
Total revenue | 73,216 | 68,099 | 219,528 | 200,580 |
Cost of revenue: | ' | ' | ' | ' |
Product | 15,074 | 15,415 | 45,548 | 42,844 |
Service | 10,240 | 10,420 | 32,367 | 33,662 |
Total cost of revenue | 25,314 | 25,835 | 77,915 | 76,506 |
Gross profit | 47,902 | 42,264 | 141,613 | 124,074 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 20,693 | 16,566 | 60,586 | 52,086 |
Sales and marketing | 20,350 | 18,291 | 58,713 | 58,596 |
General and administrative | 10,901 | 9,178 | 34,082 | 29,621 |
Acquisition-related | 0 | 0 | 1,306 | 0 |
Restructuring | 673 | 1,140 | 2,233 | 4,787 |
Total operating expenses | 52,617 | 45,175 | 156,920 | 145,090 |
Loss from operations | -4,715 | -2,911 | -15,307 | -21,016 |
Interest income (expense), net | -35 | 61 | 50 | 289 |
Other income, net | 5 | -1 | 2,330 | 2 |
Loss before income taxes | -4,745 | -2,851 | -12,927 | -20,725 |
Income tax provision | -468 | -922 | -1,736 | -1,666 |
Net loss | ($5,213) | ($3,773) | ($14,663) | ($22,391) |
Loss per share | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.02) | ($0.01) | ($0.06) | ($0.08) |
Diluted (in dollars per share) | ($0.02) | ($0.01) | ($0.06) | ($0.08) |
Shares used to compute loss per share: | ' | ' | ' | ' |
Basic (in shares) | 246,457 | 279,209 | 252,808 | 281,041 |
Diluted (in shares) | 246,457 | 279,209 | 252,808 | 281,041 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($5,213) | ($3,773) | ($14,663) | ($22,391) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -159 | -77 | -98 | -532 |
Unrealized loss on available-for sale marketable securities, net of tax | -81 | 188 | -153 | -84 |
Other comprehensive income (loss), net of tax | -240 | 111 | -251 | -616 |
Comprehensive loss, net of tax | ($5,453) | ($3,662) | ($14,914) | ($23,007) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($14,663) | ($22,391) |
Adjustments to reconcile net loss to cash flows provided by operating activities: | ' | ' |
Depreciation and amortization of property and equipment | 8,708 | 9,591 |
Amortization of intangible assets | 3,402 | 3,460 |
Amortization of intangible assets | 0 | 600 |
Stock-based compensation | 19,213 | 13,137 |
Loss on disposal of property and equipment | 252 | 23 |
Deferred income taxes | 677 | 541 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 9,225 | 15,744 |
Inventory | 5,865 | 3,294 |
Other operating assets | 2,120 | 5,126 |
Accounts payable | -4,314 | 5,134 |
Accrued expenses and other long-term liabilities | -16 | -2,061 |
Deferred revenue | -2,387 | -1,664 |
Net cash provided by operating activities | 28,082 | 30,534 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -7,886 | -4,498 |
Business acquisition, net of cash acquired | -35,022 | 0 |
Divestiture of business | 2,000 | 0 |
Purchases of marketable securities | -84,226 | -182,534 |
Maturities/sales of marketable securities | 155,036 | 175,887 |
Proceeds from sale of fixed assets | 266 | 0 |
Net cash provided by (used in) investing activities | 30,168 | -11,145 |
Cash flows from financing activities: | ' | ' |
Proceeds from sale of common stock in connection with employee stock purchase plan | 2,882 | 1,888 |
Proceeds from exercise of stock options | 9,314 | 2,393 |
Payment of tax withholding obligations related to net share settlements of restricted stock awards | -1,711 | -1,240 |
Repurchase of common stock | -89,919 | -37,340 |
Principal payments of capital lease obligations | -64 | -91 |
Net cash used in financing activities | -79,498 | -34,390 |
Effect of exchange rate changes on cash and cash equivalents | -257 | -618 |
Net decrease in cash and cash equivalents | -21,505 | -15,619 |
Cash and cash equivalents, beginning of year | 72,423 | 88,004 |
Cash and cash equivalents, end of period | 50,918 | 72,385 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | 45 | 49 |
Income taxes paid | 1,738 | 1,391 |
Income tax refunds received | 37 | 117 |
Supplemental disclosure of non-cash investing activities: | ' | ' |
Capital expenditures incurred, but not yet paid | 90 | 467 |
Business acquisition purchase consideration - assumed equity awards | $1,671 | $0 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 26, 2014 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Business | |
Sonus Networks, Inc. (“Sonus” or the “Company”) was incorporated in 1997 and is a leading provider of networked solutions for communications service providers (e.g., telecommunications, wireless and cable service providers) and enterprises to help them advance, protect and unify their voice and data communication networks, reduce expenses and position themselves to provide new services to their customers. Sonus helps many of the world's leading communications service providers and enterprises implement the next generation of Session Initiation Protocol ("SIP")-based solutions, including Voice over IP ("VoIP") and Unified Communications ("UC") through secure, reliable and scalable Internet Protocol ("IP") networks. Sonus also provides tightly integrated signaling and advanced routing capabilities and applications that span the mission-critical demands of both existing and next-generation 4G/LTE and IP Multimedia Subsystems ("IMS") telecommunications networks. Sonus products include session border controllers ("SBCs"), diameter signaling controllers ("DSCs"), 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 a single network infrastructure. Previously, companies were required to implement separate networks for their voice and data applications. In a rapidly changing ecosystem of IP-enabled devices such as smartphones and tablets, companies want an infrastructure that enables the integration of voice and data capability into a single application on one integrated network. Sonus solutions help the Company's customers realize the intended value and benefits of UC both in public and private clouds by enabling disparate vendor 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 service providers, including long distance carriers, local exchange carriers, Internet service providers, wireless operators, cable operators, international telephone companies and carriers that provide services to other carriers. Enterprise customers and target enterprise customers include financial institutions, retailers, state and local governments, and other multinational corporations. The Company collaborates with its customers to identify and develop new, advanced services and applications that can help to reduce costs, improve productivity and generate new revenue. | |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). | |
Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2013 ("Annual Report") filed with the SEC effective February 28, 2014. | |
On February 19, 2014 (the "PT Acquisition Date"), the Company completed the acquisition of Performance Technologies, Incorporated ("PT"). The financial results of PT are included in the Company's condensed consolidated financial statements for the period subsequent to the PT Acquisition Date. | |
Significant Accounting Policies | |
The Company's significant accounting policies are disclosed in Note 2 to the Consolidated Financial Statements included in the Annual Report. There were no material changes to the significant accounting policies during the three or nine months ended September 26, 2014. | |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates and Judgments | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these consolidated financial statements include accounting for business combinations, revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation, intangible assets and goodwill valuations, including impairments, legal contingencies and recoverability of Sonus' net deferred tax assets and the related valuation allowances. Sonus regularly assesses these estimates and records changes in estimates in the period in which they become known. Sonus bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | |
The carrying amounts of the Company's financial instruments, which include cash equivalents, marketable securities, investments, accounts receivable, accounts payable, convertible subordinated debt and other long-term liabilities, approximate their fair values. | |
Operating Segments | |
The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, the chief operating decision maker has made such decisions and assessed performance at the company level, as one segment. The Company's chief operating decision maker is its President and Chief Executive Officer. | |
Recent Accounting Pronouncements | |
On June 19, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) (“ASU 2014-12”). ASU 2014-12 clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent upon the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. ASU 2014-12 does not contain any new disclosure requirements. ASU 2014-12 is effective for the Company on January 1, 2015. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its condensed consolidated financial statements. | |
On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) its final standard on revenue from contracts with customers. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue model to contracts within its scope, an entity identifies the contract(s) with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to the performance obligations in the contract and recognizes revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers that are within the scope of other topics in the FASB Accounting Standards Codification ("ASC"). Certain of ASU 2014-09’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (i.e., property plant and equipment; real estate; or intangible assets). Existing accounting guidance applicable to these transfers has been amended or superseded. ASU 2014-09 also requires significantly expanded disclosures about revenue recognition. ASU 2014-09 is effective for the Company on January 1, 2017. The Company is currently assessing the potential impact of the adoption of ASU 2014-09 on its condensed consolidated financial statements. | |
On April 10, 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the definition of discontinued operations in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The new guidance eliminates the previous criteria that the operations and cash flows of the component that have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction. The new guidance also eliminates the previous criteria that the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. Instead, ASU 2014-08 requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. ASU 2014-08 requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods presented in the statement of financial position. In addition, ASU 2014-08 requires that an entity disclose in its statement of cash flows, for all periods presented, either: (1) operating and investing cash flows or (2) depreciation and amortization, capital expenditures and significant operating and investing non-cash items related to the discontinued operation. ASU 2014-08 is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its condensed consolidated financial statements. | |
On July 18, 2013, the FASB issued 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 was 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 was effective for the Company beginning January 1, 2014. The adoption of ASU 2013-11 did not have an impact on the Company's condensed consolidated financial statements, as the Company already applied 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 was effective for the Company beginning January 1, 2014. The adoption of ASU 2013-05 did not have a material impact on the Company's condensed consolidated financial statements. |
ACQUISITION_OF_PT
ACQUISITION OF PT | 9 Months Ended | ||||
Sep. 26, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
ACQUISITION OF PT | ' | ||||
ACQUISITION OF PT | |||||
On February 19, 2014 (the "PT Acquisition Date"), the Company acquired all of the outstanding common stock of PT for cash consideration of $34.0 million, or $3.75 per share of PT common stock. This acquisition has enabled Sonus to expand its solutions portfolio with signaling technology and acquire expertise to enable mobile service providers to offer new real-time multimedia services through their mobile infrastructure. Delivering these services across the LTE next-generation mobile networks will require adoption of the next-generation signaling technology known in the industry as Diameter Signal. The acquisition of PT has allowed Sonus to diversify its product 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. | |||||
The transaction has been accounted for as a business combination and the financial results of PT have been included in the Company's condensed consolidated financial statements for the period subsequent to its acquisition. | |||||
As of September 26, 2014, the valuation of acquired assets, identifiable intangible assets, uncertain tax liabilities and certain accrued liabilities remains preliminary. The Company is in the process of finalizing its valuation, which it plans to complete in the fourth quarter of fiscal 2014. Based on new information gathered about facts and circumstances that existed as of the PT Acquisition Date related to the valuation of certain acquired assets and assumed liabilities, the Company recorded adjustments which resulted in an increase to goodwill of $0.5 million, a decrease to other current assets of $0.3 million and an increase to other long-term liabilities of $0.2 million in the three months ended June 27, 2014. Based on the preliminary purchase price allocation, the Company recorded $8.7 million of goodwill, primarily due to expected synergies between the combined companies and expanded market opportunities. The goodwill is not deductible for tax purposes. | |||||
A summary of the allocation of the purchase consideration for PT is as follows (in thousands): | |||||
Fair value of consideration transferred: | |||||
Cash, net of cash acquired | $ | 35,022 | |||
Fair value of equity awards assumed | 1,671 | ||||
Fair value of total consideration | $ | 36,693 | |||
Fair value of assets acquired and liabilities assumed: | |||||
Marketable securities | $ | 2,315 | |||
Other current assets | 9,393 | ||||
Property and equipment | 2,251 | ||||
Intangible assets | 17,100 | ||||
Goodwill | 8,725 | ||||
Current liabilities | (2,762 | ) | |||
Other long-term liabilities | (329 | ) | |||
$ | 36,693 | ||||
The valuation of the acquired intangible assets is inherently subjective and relies on significant unobservable inputs. The Company used an income approach to preliminarily value the acquired customer relationships and developed technology intangible assets. The valuation for each of these intangible assets was based on estimated projections of expected cash flows to be generated by the assets, discounted to the present value at discount rates commensurate with perceived risk. The valuation assumptions take into consideration the Company's estimates of contract renewal, technology attrition and revenue growth projections. The Company is amortizing the identifiable intangible assets in relation to the expected cash flows from the individual intangible assets over their respective useful lives (see Note 6). | |||||
The Company has not provided pro forma information as the results of PT are not material to the Company's financial results. | |||||
Acquisition-Related Expenses | |||||
Acquisition-related expenses include those expenses related to the acquisition that would otherwise not have been incurred by the Company. These expenses include professional and services fees, such as legal, audit, consulting, paying agent and other fees, and expenses related to cash payments to certain former PT executives under their respective PT change of control agreements. | |||||
The components of acquisition-related costs included in the Company's results of operations for the nine months ended September 26, 2014 are as follows (in thousands): | |||||
Nine months ended | |||||
September 26, 2014 | |||||
Professional and services fees | $ | 1,057 | |||
Change of control agreements | 249 | ||||
$ | 1,306 | ||||
The Company did not record any acquisition-related expenses in the three months ended September 26, 2014, as all of the acquisition-related expenses recorded in fiscal 2014 were recorded in the first quarter. The Company did not record any acquisition-related expenses in either the three or nine months ended September 27, 2013. | |||||
Sale of Multi-Protocol Server Business | |||||
On June 20, 2014 (the "MPS Sale Date"), the Company sold its PT Multi-Protocol Server ("MPS") business for $2.0 million to an affiliate of Sunhillo Corporation, comprised of $0.2 million of inventory, $0.1 million of fixed assets, $0.2 million of deferred revenue and $1.9 million of PT goodwill allocable to the MPS business. The Company had acquired the MPS business in connection with the acquisition of PT. The Company incurred $0.4 million of transaction costs, which are included as a component of General and administrative expenses. The results of operations of the MPS business are excluded from the Company's consolidated results for the period subsequent to the MPS Sale Date. |
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
EARNINGS (LOSS) PER SHARE | ' | |||||||||||
EARNINGS (LOSS) PER SHARE | ||||||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by using the weighted average number of common and dilutive common equivalent shares outstanding during the period unless the effect is antidilutive. | ||||||||||||
The calculations of shares used to compute basic and diluted loss per share are as follows (in thousands): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Weighted average shares outstanding—basic | 246,457 | 279,209 | 252,808 | 281,041 | ||||||||
Potential dilutive common shares | — | — | — | — | ||||||||
Weighted average shares outstanding—diluted | 246,457 | 279,209 | 252,808 | 281,041 | ||||||||
Options to purchase the Company's common stock, unvested shares of restricted stock, unvested performance-based stock awards for which the performance conditions have been satisfied and shares in connection with future purchases under the Company's Amended and Restated 2000 Employee Stock Purchase Plan, as amended (the "ESPP"), aggregating 42.0 million shares for the three and nine months ended September 26, 2014 have not been included in the computation of diluted loss per share because their effect would have been antidilutive. Options to purchase the Company's common stock and unvested shares of restricted stock aggregating 35.9 million shares for the three and nine months ended September 27, 2013 have not been included in the computation of diluted loss per share because their effect would have been antidilutive. |
CASH_EQUIVALENTS_MARKETABLE_SE
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | ' | |||||||||||||||
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | ||||||||||||||||
The Company invests in debt instruments, primarily U.S. government-backed, municipal and corporate obligations, which management believes to be high quality (investment grade) credit instruments. | ||||||||||||||||
During the nine months ended September 26, 2014, the Company sold $45.9 million of its available-for-sale securities and realized gross gains aggregating $46,000, which are included as a component of Other income (expense), net, in the Company's condensed consolidated statement of operations for that period. The Company did not realize any gross losses on these sales. In addition, $41.7 million of the Company's available-for-sale securities matured during the three months ended March 28, 2014 and were redeemed upon maturity. The Company did not sell any of its available-for-sale securities during the three months ended September 26, 2014 or during the three or nine months ended September 27, 2013, and accordingly, no such gains or losses were realized during such period. | ||||||||||||||||
Marketable securities and investments with continuous unrealized losses for one year or greater at September 26, 2014 were nominal. Since the Company currently does not intend to sell these securities and does not believe it will be required to sell any securities before they recover in value, it does not believe these declines are other-than-temporary. | ||||||||||||||||
On a quarterly basis, the Company reviews its marketable securities and investments to determine if there have been any events that could create a credit impairment. The increase in unrealized losses in the current year period primarily relates to the recent increase in interest rates. However, since the Company's entire investment portfolio has investment grade ratings with no indication of credit loss, the Company believes it will recover the entire amortized cost basis of these securities and does not believe these unrealized losses are other-than-temporary. Accordingly, the Company does not believe that any impairment existed with its current holdings at September 26, 2014. | ||||||||||||||||
The amortized cost, gross unrealized gains and losses and fair value of the Company's marketable debt securities and investments at September 26, 2014 and December 31, 2013 were comprised of the following (in thousands): | ||||||||||||||||
26-Sep-14 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 9,046 | $ | — | $ | — | $ | 9,046 | ||||||||
Marketable securities | ||||||||||||||||
Municipal obligations | $ | 502 | $ | — | $ | (1 | ) | $ | 501 | |||||||
U.S. government agency notes | 5,031 | 1 | — | 5,032 | ||||||||||||
Corporate debt securities | 38,861 | 5 | (26 | ) | 38,840 | |||||||||||
Commercial paper | 7,192 | — | — | 7,192 | ||||||||||||
Certificates of deposit | 8,000 | — | — | 8,000 | ||||||||||||
$ | 59,586 | $ | 6 | $ | (27 | ) | $ | 59,565 | ||||||||
Investments | ||||||||||||||||
Municipal obligations | $ | 1,807 | $ | — | $ | (4 | ) | $ | 1,803 | |||||||
U.S. government agency notes | 2,500 | 1 | — | 2,501 | ||||||||||||
Corporate debt securities | 38,347 | 5 | (75 | ) | 38,277 | |||||||||||
Certificates of deposit | 1,000 | — | — | 1,000 | ||||||||||||
$ | 43,654 | $ | 6 | $ | (79 | ) | $ | 43,581 | ||||||||
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 | ||||||||
The Company's available-for-sale debt securities classified as Investments in the condensed consolidated balance sheets at September 26, 2014 and December 31, 2013 had maturity dates after one year but within two years or less from the balance sheet date. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tier fair value hierarchy is based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: | ||||||||||||||||
Level 1. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2. Level 2 applies to assets or liabilities for which there are inputs that are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). | ||||||||||||||||
Level 3. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||||||||||||
The following table shows the fair value of the Company's financial assets at September 26, 2014 and December 31, 2013. These financial assets are comprised of the Company's available-for-sale debt securities and reported under the captions Cash and cash equivalents, Marketable securities and Investments in the consolidated balance sheets (in thousands): | ||||||||||||||||
Fair value measurements at | ||||||||||||||||
September 26, 2014 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
September 26, | markets | inputs | inputs | |||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 9,046 | $ | 9,046 | $ | — | $ | — | ||||||||
Marketable securities | ||||||||||||||||
Municipal obligations | $ | 501 | $ | — | $ | 501 | $ | — | ||||||||
U.S. government agency notes | 5,032 | — | 5,032 | — | ||||||||||||
Corporate debt securities | 38,840 | — | 38,840 | — | ||||||||||||
Commercial paper | 7,192 | — | 7,192 | — | ||||||||||||
Certificates of deposit | 8,000 | — | 8,000 | — | ||||||||||||
$ | 59,565 | $ | — | $ | 59,565 | $ | — | |||||||||
Investments | ||||||||||||||||
Municipal obligations | $ | 1,803 | $ | — | $ | 1,803 | $ | — | ||||||||
U.S. government agency notes | 2,501 | — | 2,501 | — | ||||||||||||
Corporate debt securities | 38,277 | — | 38,277 | — | ||||||||||||
Certificates of deposit | 1,000 | — | 1,000 | — | ||||||||||||
$ | 43,581 | $ | — | $ | 43,581 | $ | — | |||||||||
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 | $ | — | |||||||||
The Company's marketable securities and investments have been valued on the basis of valuations provided by third-party pricing services, as derived from such services' pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. The Company is ultimately responsible for the condensed consolidated financial statements and underlying estimates. Accordingly, the Company assesses the reasonableness of the valuations provided by the third-party pricing services by reviewing actual trade data, broker/dealer quotes and other similar data, which are obtained from quoted market prices or other sources. |
INVENTORY
INVENTORY | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
INVENTORY | ||||||||
Inventory consists of the following (in thousands): | ||||||||
September 26, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 985 | $ | — | ||||
On-hand final assemblies and finished goods inventories | 16,976 | 19,070 | ||||||
Deferred cost of goods sold | 4,047 | 4,387 | ||||||
22,008 | 23,457 | |||||||
Less current portion | (22,008 | ) | (21,793 | ) | ||||
Noncurrent portion (included in Other assets) | $ | — | $ | 1,664 | ||||
INTANGIBLE_ASSETS_AND_GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 9 Months Ended | |||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | ' | |||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | ||||||||||||||||||
The Company's intangible assets at September 26, 2014 and December 31, 2013 consist of the following (dollars in thousands): | ||||||||||||||||||
September 26, 2014 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||||||
(years) | amortization | carrying value | ||||||||||||||||
Intellectual property | 5 | $ | 999 | $ | 999 | $ | — | |||||||||||
Developed technology | 6.18 | 22,280 | 4,551 | 17,729 | ||||||||||||||
Customer relationships | 5.57 | 10,040 | 4,203 | 5,837 | ||||||||||||||
Internal use software | 3 | 730 | 507 | 223 | ||||||||||||||
5.75 | $ | 34,049 | $ | 10,260 | $ | 23,789 | ||||||||||||
December 31, 2013 | 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 | ||||||||||||
Amortization expense for intangible assets for the three and nine months ended September 26, 2014 and September 27, 2013 was as follows (in thousands): | ||||||||||||||||||
Three months ended | Nine months ended | Statement of operations classification | ||||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Intellectual property | $ | — | $ | — | $ | — | $ | 200 | Research and development | |||||||||
Developed technology | 639 | 500 | 1,822 | 1,499 | Cost of revenue - product | |||||||||||||
Customer relationships | 494 | 526 | 1,397 | 1,578 | Sales and marketing | |||||||||||||
Internal use software | 62 | 61 | 183 | 183 | Cost of revenue - product | |||||||||||||
$ | 1,195 | $ | 1,087 | $ | 3,402 | $ | 3,460 | |||||||||||
Estimated future amortization expense for the Company's intangible assets at September 26, 2014 is as follows (in thousands): | ||||||||||||||||||
Years ending December 31, | ||||||||||||||||||
Remainder of 2014 | $ | 1,195 | ||||||||||||||||
2015 | 5,646 | |||||||||||||||||
2016 | 5,290 | |||||||||||||||||
2017 | 5,260 | |||||||||||||||||
2018 | 2,953 | |||||||||||||||||
Thereafter | 3,445 | |||||||||||||||||
$ | 23,789 | |||||||||||||||||
The changes in the carrying value of the Company's goodwill in the nine months ended September 26, 2014 were as follows (in thousands): | ||||||||||||||||||
Balance at January 1, 2014: | ||||||||||||||||||
Goodwill | $ | 35,485 | ||||||||||||||||
Accumulated impairment losses | (3,106 | ) | ||||||||||||||||
32,379 | ||||||||||||||||||
Acquisition of PT | 8,725 | |||||||||||||||||
Sale of MPS business | (1,897 | ) | ||||||||||||||||
Balance at September 26, 2014 | $ | 39,207 | ||||||||||||||||
There were no changes to the carrying value of the Company's goodwill in the nine months ended September 27, 2013. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
ACCRUED EXPENSES | ' | |||||||
ACCRUED EXPENSES | ||||||||
Accrued expenses consist of the following (in thousands): | ||||||||
September 26, | December 31, | |||||||
2014 | 2013 | |||||||
Employee compensation and related costs | $ | 21,417 | $ | 20,683 | ||||
Other | 11,423 | 13,343 | ||||||
$ | 32,840 | $ | 34,026 | |||||
RESTRUCTURING_ACCRUAL
RESTRUCTURING ACCRUAL | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
RESTRUCTURING ACCRUAL | ' | |||||||||||||||
RESTRUCTURING ACCRUAL | ||||||||||||||||
The Company recorded restructuring expense of $0.7 million in the three months ended September 26, 2014 and $2.2 million in the nine months ended September 26, 2014 for severance and related costs in connection with reducing its workforce. The Company recorded restructuring expense of $1.2 million in the three months ended September 27, 2013 for severance and related costs. The Company recorded restructuring expense of $4.8 million in the nine months ended September 27, 2013, comprised of $4.5 million for severance and related costs and $0.3 million for facility costs. | ||||||||||||||||
The table below summarizes the restructuring accrual activity for the nine months ended September 26, 2014 (in thousands): | ||||||||||||||||
Balance at | Initiatives | Cash | Balance at | |||||||||||||
January 1, | charged to | payments | September 26, | |||||||||||||
2014 | expense | 2014 | ||||||||||||||
Severance | $ | 1,333 | $ | 2,233 | $ | (2,494 | ) | $ | 1,072 | |||||||
Facilities | 3,012 | — | (885 | ) | 2,127 | |||||||||||
$ | 4,345 | $ | 2,233 | $ | (3,379 | ) | $ | 3,199 | ||||||||
The Company expects to complete the restructuring payments related to severance in the fourth quarter of fiscal 2015 and the payments related to facilities in fiscal 2016. The portion of restructuring payments due more than one year from the balance sheet date is included in Other long-term liabilities in the Company's condensed consolidated balance sheets. The long-term portions of accrued restructuring were $1.1 million at September 26, 2014 and $1.8 million at December 31, 2013. |
DEBT
DEBT | 9 Months Ended |
Sep. 26, 2014 | |
Debt Disclosure [Abstract] | ' |
DEBT | ' |
DEBT | |
Credit Agreement | |
On June 27, 2014, the Company entered into a credit agreement (the "Credit Agreement") by and among the Company, as Borrower, Bank of America, N.A. ("Bank of America"), as Administrative Agent, Swing Line Lender and L/C Issuer, and the other lenders from time to time party thereto. The Credit Agreement provides for a revolving credit facility of up to $40 million and provides that the Company may select the interest rates under the credit facility equal to (1) the Eurodollar Rate (which is defined as the rate per annum equal to the London Interbank Offered Rate plus 1.5% per annum) for a Eurodollar Rate Loan; and (2) the highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect on the borrowing date as publicly announced from time to time by Bank of America as its prime rate, and (c) the monthly Eurodollar Rate plus 1%. The Company will pay a 0.15% commitment fee on the unused commitments available for borrowing. | |
Borrowings under the Credit Agreement may be used for the general corporate purposes of the Company and its subsidiaries, including, without limitation, working capital, acquisitions, dividends and stock repurchases, to the extent permitted under the Credit Agreement. | |
The obligations of the Company under the Credit Agreement are guaranteed by Sonus International, Inc., Sonus Federal, Inc., Network Equipment Technologies, Inc. ("NET") and PT (collectively, together with the Company, the "Loan Parties") pursuant to a Master Continuing Guaranty and are secured by the assets of the Loan Parties pursuant to a Security and Pledge Agreement. | |
The Credit Agreement contains affirmative, negative and financial covenants customary for financings of this type. The negative covenants include limitations on liens, indebtedness, fundamental changes, dispositions, restricted payments, investments, transactions with affiliates, certain restrictive agreements and compliance with sanctions laws and regulations. The amount of cash and cash equivalents of the Loan Parties, subject to certain exclusions, cannot be less than an aggregate amount of $100 million at any time. The credit facility will become due on June 27, 2015, subject to acceleration upon certain specified events of default, including, without limitation, payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency-related defaults, defaults relating to judgments, an ERISA Event (as defined in the Credit Agreement), the failure to pay specified indebtedness and a change of control default. | |
The Company did not have any amounts outstanding under the Credit Agreement at September 26, 2014. | |
Assumed Debt - Acquisition | |
The Company has determined that the estimated fair value of its $2.4 million of aggregate principal amount of outstanding debt due in December 2014 equaled its carrying value at both September 26, 2014 and December 31, 2013. Although the debt can be publicly traded, there have been no trading transactions since 2010 and accordingly, the Company has categorized it in Level 2 within the fair value hierarchy. |
STOCKHOLDER_RIGHTS_PLAN
STOCKHOLDER RIGHTS PLAN | 9 Months Ended |
Sep. 26, 2014 | |
Equity [Abstract] | ' |
STOCKHOLDER RIGHTS PLAN | ' |
STOCKHOLDER RIGHTS PLAN | |
On September 17, 2014, the Company entered into an amendment to its stockholder rights agreement, as amended (the "Rights Plan"), to advance the final expiration date from June 26, 2015 to September 17, 2014. As a result of this amendment, effective as of the close of business on September 17, 2014, the Rights (as defined in the Rights Plan) expired and are no longer outstanding and the Rights Plan has terminated by its terms. |
COMMON_STOCK_REPURCHASES_AND_U
COMMON STOCK REPURCHASES AND UNDERWRITTEN OFFERING (Notes) | 9 Months Ended |
Sep. 26, 2014 | |
Equity [Abstract] | ' |
COMMON STOCK REPURCHASES AND UNDERWRITTEN OFFERING | ' |
COMMON STOCK REPURCHASES AND UNDERWRITTEN OFFERING | |
Stock Buyback Program | |
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 Company has not implemented such a 10b5-1 repurchase program to date. The stock buyback program may be suspended or discontinued at any time. The stock buyback program is being funded using the Company's working capital. During the nine months ended September 26, 2014, the Company spent $14.7 million, including transaction fees, to repurchase and retire 4.0 million shares of its common stock under the stock buyback program. At September 26, 2014, the Company had $26.1 million remaining under the stock buyback program for future repurchases. | |
Underwritten Offering | |
On March 20, 2014, the Company announced the commencement of an underwritten public offering of 37.5 million shares of its common stock on behalf of Galahad Securities Limited and its affiliated entities (collectively, the "Legatum Group"). The underwriter of the offering was granted a 30-day option to purchase up to 5.625 million additional shares from the Legatum Group. The Legatum Group received all the proceeds from the underwritten offering; no shares in the underwritten offering were sold by Sonus or any of its officers or directors. Sonus purchased 21.5 million shares of its common stock from the underwriter for $3.4882 per share, the price equal to the price paid by the underwriter to the Legatum Group in the underwritten offering, for a total of $75.3 million, including transaction fees of $0.3 million. This repurchase was not completed under the Company's stock buyback program. Sonus funded the share repurchase with cash on hand. The repurchased shares were retired upon completion of the transaction. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | |||||||||||||||
STOCK-BASED COMPENSATION PLANS | ||||||||||||||||
Stock Incentive Plans | ||||||||||||||||
The Company's 2007 Stock Incentive Plan, as amended (the "2007 Plan"), provides for the award of options to purchase the Company's common stock ("stock options"), stock appreciation rights ("SARs"), restricted common stock ("restricted stock"), performance-based awards, restricted stock units ("RSUs") and other stock-based awards to employees, officers, directors (including those directors who are not employees or officers of the Company), consultants and advisors of the Company and its subsidiaries. | ||||||||||||||||
The Company's 2008 Stock Incentive Plan provides for the award of stock options, SARs, restricted stock, performance-based awards and RSUs to former employees of NET who subsequently became employees of Sonus and Sonus employees hired subsequent to August 24, 2012, the date the Company acquired NET. | ||||||||||||||||
In connection with the acquisition of PT, the Company assumed PT's 2012 Amended Performance Technologies, Incorporated Omnibus Incentive Plan (the "PT 2012 Plan"), which provides for the award of stock options, SARs, restricted stock, performance-based awards and RSUs to former employees of PT who subsequently became employees of Sonus and Sonus employees hired subsequent to February 19, 2014, the date the Company acquired PT. The Company also assumed all of the outstanding options to purchase common stock under the Performance Technologies, Incorporated 2003 Omnibus Incentive Plan (the "PT 2003 Plan") and the Performance Technologies, Incorporated 2001 Stock Option Plan (the "PT 2001 Plan"); however, no future equity awards may be granted under either the PT 2003 Plan or the PT 2001 Plan. | ||||||||||||||||
The options to purchase PT common stock under the PT 2012 Plan, the PT 2003 Plan and the PT 2001 Plan were converted into options to purchase Sonus common stock (the "converted awards"), and the shares of PT common stock available for future grant under the PT 2012 Plan were converted into shares of Sonus common stock available for future grant, using a conversion factor of 1.23, which was calculated based on the acquisition consideration of $3.75 per share of PT's 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 PT stock options to Sonus stock option exercise prices. The converted awards will vest under the same schedules as the respective PT stock options. | ||||||||||||||||
The fair values of the PT stock options assumed were estimated using a Black-Scholes option pricing model. The Company recorded $1.7 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 $0.9 million, which is being recorded over a weighted average period of approximately one year. | ||||||||||||||||
Executive and Board of Directors Equity Arrangements | ||||||||||||||||
On June 11, 2014, the Company modified the options outstanding as of that date that had been granted to the Company's non-employee members of the Board of Directors (the "Board Members") to extend the exercise period to the lesser of three years from the date that a Board Member stepped down from his or her position on the Board of Directors or the remaining contractual life of the respective stock options. In connection with this modification, the Company recorded $0.7 million of incremental stock-based compensation expense in the nine months ended September 26, 2014. The Company did not record any expense related to this modification in the three months ended September 26, 2014. This expense is included as a component of General and administrative expense in the Company's condensed consolidated statements of operations for the nine months ended September 26, 2014. | ||||||||||||||||
On January 2, 2014, Raymond P. Dolan, the Company's President and Chief Executive Officer ("Mr. Dolan"), elected to accept shares of restricted stock in lieu of base salary for the period from January 1, 2014 through December 31, 2014. Accordingly, the Company granted Mr. Dolan 243,507 shares of restricted stock (the "2014 Dolan Salary Shares") on January 2, 2014. The number of shares granted was calculated by dividing an amount equal to 1.5 times Mr. Dolan's base salary for the period from January 1, 2014 through December 31, 2014 by $3.08, the closing price of the Company's common stock on the date of grant. The 2014 Dolan Salary Shares will vest on December 31, 2014. If Mr. Dolan's employment is terminated by Mr. Dolan with Good Reason (as defined in his employment agreement, as amended) or his employment is terminated by the Company without Cause (as defined in his employment agreement, as amended) before December 31, 2014, a pro rata portion of the 2014 Dolan Salary Shares will vest on the date of such termination. If Mr. Dolan terminates his employment without Good Reason or his employment is terminated by the Company for Cause before December 31, 2014, he will forfeit the 2014 Dolan Salary Shares. Effective September 16, 2014, Mr. Dolan's annual base salary was increased from $500,000 to $600,000. For the remainder of 2014, such increase will be prorated and paid in cash and will not be subject to any stock-for-cash election. The Company is recording stock-based compensation expense related to the 2014 Dolan Salary Shares ratably for the period of January 1, 2014 through December 31, 2014. The 2014 Dolan Salary Shares are included in the amount reported as "Granted" in the restricted stock grant table below. | ||||||||||||||||
On January 22, 2014, 21 executives of the Company, including Mr. Dolan, were given the choice to receive all or half of their fiscal year 2014 bonuses (the "2014 Bonus"), if any are earned, in the form of shares of the Company's common stock (the "2014 Bonus Shares"). Each executive could also elect not to participate in this program and to earn his or her 2014 Bonus, if any, in the form of cash. The amount of the 2014 Bonus, if any, for each executive shall be determined by the Compensation Committee of the Board of Directors of the Company (the "Compensation Committee"). The number of shares of the Company's common stock that will be granted to those executives who elected to receive their 2014 Bonus entirely in the form of shares of common stock will be calculated by dividing an amount equal to 1.5 times each executive's 2014 Bonus earned by $3.08, the closing price of the Company's common stock on January 2, 2014. The number of shares of the Company's common stock that will be granted to those executives who elected to receive one-half of their 2014 Bonus in the form of shares of common stock will be calculated by dividing an amount equal to 1.5 times one-half of each executive's 2014 Bonus earned by $3.08, with the cash portion equal 50% of their respective 2014 Bonus earned. The 2014 Bonus, if any, will be granted and/or paid on a date concurrent with the timing of the payout of bonuses under the Company-wide incentive bonus program and will be fully vested on the date of grant. Of the eligible executives, 17 elected to receive their entire 2014 Bonus in shares of common stock and 4 elected to receive 50% of their 2014 Bonus in shares of common stock and 50% in cash. The Company determined that the grant date criteria for accounting purposes for the 2014 Bonus Shares was met on July 9, 2014, and accordingly, the Company has determined that the grant date fair value of the 2014 Bonus Shares is $3.85 per share, the closing price of the Company's common stock on that date. The Company is recording expense for the 2014 Bonus Shares expected to be earned at a rate commensurate with the expected achievement level represented by the Company's accrual for its company-wide incentive bonus program, as the performance metrics for each are consistent. Since the 2014 Bonus Shares will not be granted until the date of the 2014 Bonus payment, there are no shares related to the 2014 Bonus reported in the restricted stock grant table below. | ||||||||||||||||
In March 2013, 21 executives of the Company, including Mr. Dolan, elected to receive their fiscal year 2013 bonuses (the "2013 Bonus"), if any were earned, in the form of shares of the Company's common stock (the "2013 Bonus Shares"). The 2013 Bonus Shares were granted on February 18, 2014 and vested immediately. The Company granted approximately one million 2013 Bonus Shares, with the number of shares granted calculated by dividing amounts equal to 1.5 times the respective 2013 Bonus amounts earned, as determined by the Compensation Committee, by $3.30, the closing price of the Company's common stock on the date of grant. The Company recorded stock-based compensation expense for the 2013 Bonus Shares from January 1, 2013 through the grant date. These shares are reported as both "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 fiscal 2012 in the form of restricted shares of the Company's common stock equal to 100% of their respective target bonus amounts for fiscal 2012 (the "Executive Bonus Shares"). 50% of the Executive Bonus Shares vested on August 15, 2013 and the remaining 50% vested on February 15, 2014. The Company recorded the unamortized expense related to the Executive Bonus Shares as stock-based compensation expense through February 15, 2014. These shares are reported as "Vested" in the restricted stock grant table below. | ||||||||||||||||
On August 7, 2012, Mr. Dolan elected to receive his fiscal year 2012 bonus, if earned, in the form of restricted shares of the Company's common stock (the “Dolan Bonus Shares”). 50% of the Dolan Bonus Shares vested on August 15, 2013 and the remaining 50% vested on February 15, 2014. The Company recorded the unamortized stock-based compensation expense related to the Dolan Bonus Shares through February 15, 2014. | ||||||||||||||||
On February 11, 2014, the Board of Directors increased its number of members from nine to eleven. In connection with their appointments, on February 18, 2014, each new director received a grant of shares of restricted stock with a grant date fair value of $100,000, with the number of shares granted calculated by dividing $100,000 by $3.30, the closing price of the Company's stock on the date of grant, and $100,000 of options to purchase the Company's common stock, with the number of shares calculated by dividing $100,000 by the grant date fair value of an option to purchase one share of common stock as determined by using the Black-Scholes valuation model. These awards vested on June 11, 2014, the date of the Company's 2014 Annual Meeting of Stockholders. Each of the new directors also elected to receive their 2014 annual retainers in shares of common stock in lieu of cash. Additionally, an incumbent member of the Board was appointed Chairman of a new committee and elected to receive his incremental retainer for this chairmanship in shares of the Company's common stock. These retainer shares were granted on February 18, 2014, of which 50% vested immediately and the remaining 50% vested on July 1, 2014. The Company granted options to purchase approximately 135,000 shares of common stock and 88,000 shares of restricted common stock in the three months ended March 28, 2014 in connection with these actions. These stock options and restricted stock awards are reported as "Granted" and "Vested" in the respective tables below. | ||||||||||||||||
Stock Options | ||||||||||||||||
The activity related to the Company's outstanding stock options during the nine months ended September 26, 2014 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, 2014 | 33,136,112 | $ | 3.22 | |||||||||||||
Granted | 11,297,916 | $ | 3.6 | |||||||||||||
PT outstanding options converted to Sonus options | 1,283,058 | $ | 1.73 | |||||||||||||
Exercised | (3,666,251 | ) | $ | 2.54 | ||||||||||||
Forfeited | (1,555,109 | ) | $ | 2.83 | ||||||||||||
Expired | (1,631,479 | ) | $ | 5.18 | ||||||||||||
Outstanding at September 26, 2014 | 38,864,247 | $ | 3.28 | 7.27 | $ | 20,401 | ||||||||||
Vested or expected to vest at September 26, 2014 | 35,403,067 | $ | 3.28 | 7.11 | $ | 19,183 | ||||||||||
Exercisable at September 26, 2014 | 16,862,066 | $ | 3.41 | 5.3 | $ | 10,836 | ||||||||||
The grant date fair values of options to purchase common stock granted in the three and nine months ended September 26, 2014 were estimated using the Black-Scholes valuation model with the following assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 26, | |||||||||||||||
2014 | 2014 | |||||||||||||||
Risk-free interest rate | 1.70% | 1.53% - 2.70% | ||||||||||||||
Expected dividends | — | — | ||||||||||||||
Weighted average volatility | 52.30% | 61.00% | ||||||||||||||
Expected life (years) | 4.5 | 4.5 - 6.0 | ||||||||||||||
Additional information regarding the Company's stock options for the three and nine months ended September 26, 2014 is as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 26, | |||||||||||||||
2014 | 2014 | |||||||||||||||
Weighted average grant date fair value of stock options granted | $ | 2.39 | $ | 1.68 | ||||||||||||
Total intrinsic value of stock options exercised (in thousands) | $ | 2,214 | $ | 4,623 | ||||||||||||
Cash received from the exercise of stock options (in thousands) | $ | 4,736 | $ | 9,314 | ||||||||||||
Restricted Stock Awards | ||||||||||||||||
The activity related to the Company's unvested restricted stock awards for the nine months ended September 26, 2014 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2014 | 1,238,765 | $ | 2.82 | |||||||||||||
Granted | 2,649,157 | $ | 3.41 | |||||||||||||
Vested | (1,762,465 | ) | $ | 3.16 | ||||||||||||
Forfeited | — | $ | — | |||||||||||||
Unvested balance at September 26, 2014 | 2,125,457 | $ | 3.27 | |||||||||||||
The total fair value of shares of restricted stock that vested during the nine months ended September 26, 2014 was $5.6 million. | ||||||||||||||||
Performance-Based Stock Awards | ||||||||||||||||
The activity related to the Company's performance-based stock awards for the nine months ended September 26, 2014 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2014 | 1,059,541 | $ | 2.6 | |||||||||||||
Granted | — | $ | — | |||||||||||||
Vested | (450,687 | ) | $ | 2.43 | ||||||||||||
Forfeited | (205,729 | ) | $ | 2.43 | ||||||||||||
Unvested balance at September 26, 2014 | 403,125 | $ | 2.72 | |||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
At the February 2014 meeting of the Board of Directors, the ESPP was amended, effective March 1, 2014, to provide for six-month 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. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The condensed consolidated statements of operations include stock-based compensation for the three and nine months ended September 26, 2014 and September 27, 2013 as follows (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Product cost of revenue | $ | 104 | $ | 46 | $ | 287 | $ | 128 | ||||||||
Service cost of revenue | 381 | 299 | 1,072 | 761 | ||||||||||||
Research and development | 1,521 | 903 | 4,583 | 2,402 | ||||||||||||
Sales and marketing | 1,747 | 1,313 | 4,299 | 3,631 | ||||||||||||
General and administrative | 2,748 | 1,812 | 8,972 | 6,215 | ||||||||||||
$ | 6,501 | $ | 4,373 | $ | 19,213 | $ | 13,137 | |||||||||
There is no income tax benefit for employee stock-based compensation expense for the three and nine months ended September 26, 2014 or September 27, 2013 due to the valuation allowance recorded. | ||||||||||||||||
At September 26, 2014, there was $33.7 million, net of expected forfeitures, of unrecognized stock-based compensation expense related to unvested stock options and restricted stock awards. This expense is expected to be recognized over a weighted average period of approximately three years. |
MAJOR_CUSTOMERS
MAJOR CUSTOMERS | 9 Months Ended | ||||||||
Sep. 26, 2014 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
MAJOR CUSTOMERS | ' | ||||||||
MAJOR CUSTOMERS | |||||||||
The following customers each contributed 10% or more of the Company's revenue in at least one of the three or nine month periods ended September 26, 2014 and September 27, 2013: | |||||||||
Three months ended | Nine months ended | ||||||||
September 26, | September 27, | September 26, | September 27, | ||||||
2014 | 2013 | 2014 | 2013 | ||||||
CenturyLink | 17% | * | * | * | |||||
AT&T Inc. | 17% | 18% | 22% | 17% | |||||
__________________________________ | |||||||||
* Represents less than 10% of revenue | |||||||||
At September 26, 2014, two customers each accounted for 10% or more of the Company's accounts receivable balance, representing approximately 37% in the aggregate of the Company's accounts receivable balance. 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. The Company performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts and such losses have been within management's expectations. |
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 9 Months Ended | ||||||||||||
Sep. 26, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
GEOGRAPHIC INFORMATION | ' | ||||||||||||
GEOGRAPHIC INFORMATION | |||||||||||||
The Company's classification of revenue by geographic area is determined by the location to which the product is shipped or where the services are performed. The following table summarizes revenue by geographic area as a percentage of total revenue: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 26, | September 27, | September 26, | September 27, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
United States | 70 | % | 66 | % | 71 | % | 70 | % | |||||
Europe, Middle East and Africa | 10 | 15 | 12 | 12 | |||||||||
Japan | 11 | 8 | 9 | 11 | |||||||||
Other Asia Pacific | 8 | 7 | 6 | 5 | |||||||||
Other | 1 | 4 | 2 | 2 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||
International revenue, both as a percentage of total revenue and absolute dollars, may vary from one period to the next, and accordingly, historical data may not be indicative of future periods. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 26, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The Company's income tax provisions for the nine months ended September 26, 2014 and September 27, 2013 reflect the Company's estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company's estimated tax expense for the full year. The estimated effective rates for the nine months ended September 26, 2014 and September 27, 2013 do not include any benefit for the Company's domestic losses, as the Company has concluded that a valuation allowance on any domestic benefit is required. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 26, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
The Company is often a party to disputes and legal proceedings that it considers routine and incidental to its business. In the normal course of business, the Company enters into contractual commitments to purchase services, materials, components, and finished goods from suppliers. Under agreements with certain contract manufacturers, the Company may be liable for purchased raw materials procured for the Company by the applicable contract manufacturer. Management does not expect the results of any of these actions to have a material effect on the Company's business or consolidated financial statements. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 26, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring items, necessary for their fair presentation with accounting principles generally accepted in the United States of America ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). | |
Interim results are not necessarily indicative of results for a full year or any future interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2013 ("Annual Report") filed with the SEC effective February 28, 2014. | |
On February 19, 2014 (the "PT Acquisition Date"), the Company completed the acquisition of Performance Technologies, Incorporated ("PT"). The financial results of PT are included in the Company's condensed consolidated financial statements for the period subsequent to the PT Acquisition Date. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Sonus and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates and Judgments | ' |
Use of Estimates and Judgments | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and judgments relied upon in preparing these consolidated financial statements include accounting for business combinations, revenue recognition for multiple element arrangements, inventory valuations, assumptions used to determine the fair value of stock-based compensation, intangible assets and goodwill valuations, including impairments, legal contingencies and recoverability of Sonus' net deferred tax assets and the related valuation allowances. Sonus regularly assesses these estimates and records changes in estimates in the period in which they become known. Sonus bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying amounts of the Company's financial instruments, which include cash equivalents, marketable securities, investments, accounts receivable, accounts payable, convertible subordinated debt and other long-term liabilities, approximate their fair values. | |
Operating Segments | ' |
Operating Segments | |
The Company operates in a single segment. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, the chief operating decision maker has made such decisions and assessed performance at the company level, as one segment. The Company's chief operating decision maker is its President and Chief Executive Officer. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
On June 19, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) (“ASU 2014-12”). ASU 2014-12 clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent upon the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. ASU 2014-12 does not contain any new disclosure requirements. ASU 2014-12 is effective for the Company on January 1, 2015. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its condensed consolidated financial statements. | |
On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) its final standard on revenue from contracts with customers. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue model to contracts within its scope, an entity identifies the contract(s) with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to the performance obligations in the contract and recognizes revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers that are within the scope of other topics in the FASB Accounting Standards Codification ("ASC"). Certain of ASU 2014-09’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (i.e., property plant and equipment; real estate; or intangible assets). Existing accounting guidance applicable to these transfers has been amended or superseded. ASU 2014-09 also requires significantly expanded disclosures about revenue recognition. ASU 2014-09 is effective for the Company on January 1, 2017. The Company is currently assessing the potential impact of the adoption of ASU 2014-09 on its condensed consolidated financial statements. | |
On April 10, 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the definition of discontinued operations in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The new guidance eliminates the previous criteria that the operations and cash flows of the component that have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction. The new guidance also eliminates the previous criteria that the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. Instead, ASU 2014-08 requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. ASU 2014-08 requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods presented in the statement of financial position. In addition, ASU 2014-08 requires that an entity disclose in its statement of cash flows, for all periods presented, either: (1) operating and investing cash flows or (2) depreciation and amortization, capital expenditures and significant operating and investing non-cash items related to the discontinued operation. ASU 2014-08 is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its condensed consolidated financial statements. | |
On July 18, 2013, the FASB issued 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 was 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 was effective for the Company beginning January 1, 2014. The adoption of ASU 2013-11 did not have an impact on the Company's condensed consolidated financial statements, as the Company already applied 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 was effective for the Company beginning January 1, 2014. The adoption of ASU 2013-05 did not have a material impact on the Company's condensed consolidated financial statements. |
ACQUISITION_OF_PT_Tables
ACQUISITION OF PT (Tables) | 9 Months Ended | ||||
Sep. 26, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Summary of preliminary allocation of the purchase consideration | ' | ||||
A summary of the allocation of the purchase consideration for PT is as follows (in thousands): | |||||
Fair value of consideration transferred: | |||||
Cash, net of cash acquired | $ | 35,022 | |||
Fair value of equity awards assumed | 1,671 | ||||
Fair value of total consideration | $ | 36,693 | |||
Fair value of assets acquired and liabilities assumed: | |||||
Marketable securities | $ | 2,315 | |||
Other current assets | 9,393 | ||||
Property and equipment | 2,251 | ||||
Intangible assets | 17,100 | ||||
Goodwill | 8,725 | ||||
Current liabilities | (2,762 | ) | |||
Other long-term liabilities | (329 | ) | |||
$ | 36,693 | ||||
Schedule of Components of Acquisition Related Costs | ' | ||||
The components of acquisition-related costs included in the Company's results of operations for the nine months ended September 26, 2014 are as follows (in thousands): | |||||
Nine months ended | |||||
September 26, 2014 | |||||
Professional and services fees | $ | 1,057 | |||
Change of control agreements | 249 | ||||
$ | 1,306 | ||||
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of calculations of shares used to compute basic and diluted earnings (loss) per share | ' | |||||||||||
The calculations of shares used to compute basic and diluted loss per share are as follows (in thousands): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Weighted average shares outstanding—basic | 246,457 | 279,209 | 252,808 | 281,041 | ||||||||
Potential dilutive common shares | — | — | — | — | ||||||||
Weighted average shares outstanding—diluted | 246,457 | 279,209 | 252,808 | 281,041 | ||||||||
CASH_EQUIVALENTS_MARKETABLE_SE1
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
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 securities and investments at September 26, 2014 and December 31, 2013 were comprised of the following (in thousands): | ||||||||||||||||
26-Sep-14 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
cost | gains | losses | value | |||||||||||||
Cash equivalents | $ | 9,046 | $ | — | $ | — | $ | 9,046 | ||||||||
Marketable securities | ||||||||||||||||
Municipal obligations | $ | 502 | $ | — | $ | (1 | ) | $ | 501 | |||||||
U.S. government agency notes | 5,031 | 1 | — | 5,032 | ||||||||||||
Corporate debt securities | 38,861 | 5 | (26 | ) | 38,840 | |||||||||||
Commercial paper | 7,192 | — | — | 7,192 | ||||||||||||
Certificates of deposit | 8,000 | — | — | 8,000 | ||||||||||||
$ | 59,586 | $ | 6 | $ | (27 | ) | $ | 59,565 | ||||||||
Investments | ||||||||||||||||
Municipal obligations | $ | 1,807 | $ | — | $ | (4 | ) | $ | 1,803 | |||||||
U.S. government agency notes | 2,500 | 1 | — | 2,501 | ||||||||||||
Corporate debt securities | 38,347 | 5 | (75 | ) | 38,277 | |||||||||||
Certificates of deposit | 1,000 | — | — | 1,000 | ||||||||||||
$ | 43,654 | $ | 6 | $ | (79 | ) | $ | 43,581 | ||||||||
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 | ||||||||
Schedule of fair value of financial assets | ' | |||||||||||||||
The following table shows the fair value of the Company's financial assets at September 26, 2014 and December 31, 2013. These financial assets are comprised of the Company's available-for-sale debt securities and reported under the captions Cash and cash equivalents, Marketable securities and Investments in the consolidated balance sheets (in thousands): | ||||||||||||||||
Fair value measurements at | ||||||||||||||||
September 26, 2014 using: | ||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | |||||||||||||
value at | in active | observable | unobservable | |||||||||||||
September 26, | markets | inputs | inputs | |||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents | $ | 9,046 | $ | 9,046 | $ | — | $ | — | ||||||||
Marketable securities | ||||||||||||||||
Municipal obligations | $ | 501 | $ | — | $ | 501 | $ | — | ||||||||
U.S. government agency notes | 5,032 | — | 5,032 | — | ||||||||||||
Corporate debt securities | 38,840 | — | 38,840 | — | ||||||||||||
Commercial paper | 7,192 | — | 7,192 | — | ||||||||||||
Certificates of deposit | 8,000 | — | 8,000 | — | ||||||||||||
$ | 59,565 | $ | — | $ | 59,565 | $ | — | |||||||||
Investments | ||||||||||||||||
Municipal obligations | $ | 1,803 | $ | — | $ | 1,803 | $ | — | ||||||||
U.S. government agency notes | 2,501 | — | 2,501 | — | ||||||||||||
Corporate debt securities | 38,277 | — | 38,277 | — | ||||||||||||
Certificates of deposit | 1,000 | — | 1,000 | — | ||||||||||||
$ | 43,581 | $ | — | $ | 43,581 | $ | — | |||||||||
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 | $ | — | |||||||||
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of inventory | ' | |||||||
Inventory consists of the following (in thousands): | ||||||||
September 26, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 985 | $ | — | ||||
On-hand final assemblies and finished goods inventories | 16,976 | 19,070 | ||||||
Deferred cost of goods sold | 4,047 | 4,387 | ||||||
22,008 | 23,457 | |||||||
Less current portion | (22,008 | ) | (21,793 | ) | ||||
Noncurrent portion (included in Other assets) | $ | — | $ | 1,664 | ||||
INTANGIBLE_ASSETS_AND_GOODWILL1
INTANGIBLE ASSETS AND GOODWILL (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||
The Company's intangible assets at September 26, 2014 and December 31, 2013 consist of the following (dollars in thousands): | ||||||||||||||||||
September 26, 2014 | Weighted average amortization period | Cost | Accumulated | Net | ||||||||||||||
(years) | amortization | carrying value | ||||||||||||||||
Intellectual property | 5 | $ | 999 | $ | 999 | $ | — | |||||||||||
Developed technology | 6.18 | 22,280 | 4,551 | 17,729 | ||||||||||||||
Customer relationships | 5.57 | 10,040 | 4,203 | 5,837 | ||||||||||||||
Internal use software | 3 | 730 | 507 | 223 | ||||||||||||||
5.75 | $ | 34,049 | $ | 10,260 | $ | 23,789 | ||||||||||||
December 31, 2013 | 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 | ||||||||||||
Schedule of amortization expense related to intangible assets | ' | |||||||||||||||||
Amortization expense for intangible assets for the three and nine months ended September 26, 2014 and September 27, 2013 was as follows (in thousands): | ||||||||||||||||||
Three months ended | Nine months ended | Statement of operations classification | ||||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Intellectual property | $ | — | $ | — | $ | — | $ | 200 | Research and development | |||||||||
Developed technology | 639 | 500 | 1,822 | 1,499 | Cost of revenue - product | |||||||||||||
Customer relationships | 494 | 526 | 1,397 | 1,578 | Sales and marketing | |||||||||||||
Internal use software | 62 | 61 | 183 | 183 | Cost of revenue - product | |||||||||||||
$ | 1,195 | $ | 1,087 | $ | 3,402 | $ | 3,460 | |||||||||||
Schedule of estimated future amortization expense for intangible assets | ' | |||||||||||||||||
Estimated future amortization expense for the Company's intangible assets at September 26, 2014 is as follows (in thousands): | ||||||||||||||||||
Years ending December 31, | ||||||||||||||||||
Remainder of 2014 | $ | 1,195 | ||||||||||||||||
2015 | 5,646 | |||||||||||||||||
2016 | 5,290 | |||||||||||||||||
2017 | 5,260 | |||||||||||||||||
2018 | 2,953 | |||||||||||||||||
Thereafter | 3,445 | |||||||||||||||||
$ | 23,789 | |||||||||||||||||
Schedule of goodwill | ' | |||||||||||||||||
The changes in the carrying value of the Company's goodwill in the nine months ended September 26, 2014 were as follows (in thousands): | ||||||||||||||||||
Balance at January 1, 2014: | ||||||||||||||||||
Goodwill | $ | 35,485 | ||||||||||||||||
Accumulated impairment losses | (3,106 | ) | ||||||||||||||||
32,379 | ||||||||||||||||||
Acquisition of PT | 8,725 | |||||||||||||||||
Sale of MPS business | (1,897 | ) | ||||||||||||||||
Balance at September 26, 2014 | $ | 39,207 | ||||||||||||||||
There were no changes to the carrying value of the Company's goodwill in the nine months ended September 27, 2013. |
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of accrued expenses | ' | |||||||
Accrued expenses consist of the following (in thousands): | ||||||||
September 26, | December 31, | |||||||
2014 | 2013 | |||||||
Employee compensation and related costs | $ | 21,417 | $ | 20,683 | ||||
Other | 11,423 | 13,343 | ||||||
$ | 32,840 | $ | 34,026 | |||||
RESTRUCTURING_ACCRUAL_Tables
RESTRUCTURING ACCRUAL (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Summary of restructuring accrual activity | ' | |||||||||||||||
The table below summarizes the restructuring accrual activity for the nine months ended September 26, 2014 (in thousands): | ||||||||||||||||
Balance at | Initiatives | Cash | Balance at | |||||||||||||
January 1, | charged to | payments | September 26, | |||||||||||||
2014 | expense | 2014 | ||||||||||||||
Severance | $ | 1,333 | $ | 2,233 | $ | (2,494 | ) | $ | 1,072 | |||||||
Facilities | 3,012 | — | (885 | ) | 2,127 | |||||||||||
$ | 4,345 | $ | 2,233 | $ | (3,379 | ) | $ | 3,199 | ||||||||
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of activity related to outstanding stock options | ' | |||||||||||||||
The activity related to the Company's outstanding stock options during the nine months ended September 26, 2014 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, 2014 | 33,136,112 | $ | 3.22 | |||||||||||||
Granted | 11,297,916 | $ | 3.6 | |||||||||||||
PT outstanding options converted to Sonus options | 1,283,058 | $ | 1.73 | |||||||||||||
Exercised | (3,666,251 | ) | $ | 2.54 | ||||||||||||
Forfeited | (1,555,109 | ) | $ | 2.83 | ||||||||||||
Expired | (1,631,479 | ) | $ | 5.18 | ||||||||||||
Outstanding at September 26, 2014 | 38,864,247 | $ | 3.28 | 7.27 | $ | 20,401 | ||||||||||
Vested or expected to vest at September 26, 2014 | 35,403,067 | $ | 3.28 | 7.11 | $ | 19,183 | ||||||||||
Exercisable at September 26, 2014 | 16,862,066 | $ | 3.41 | 5.3 | $ | 10,836 | ||||||||||
Schedule of assumptions used to estimate the fair value of options at the date of grant using the Black-Scholes option pricing model | ' | |||||||||||||||
The grant date fair values of options to purchase common stock granted in the three and nine months ended September 26, 2014 were estimated using the Black-Scholes valuation model with the following assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 26, | |||||||||||||||
2014 | 2014 | |||||||||||||||
Risk-free interest rate | 1.70% | 1.53% - 2.70% | ||||||||||||||
Expected dividends | — | — | ||||||||||||||
Weighted average volatility | 52.30% | 61.00% | ||||||||||||||
Expected life (years) | 4.5 | 4.5 - 6.0 | ||||||||||||||
Schedule of stock options, additional information | ' | |||||||||||||||
Additional information regarding the Company's stock options for the three and nine months ended September 26, 2014 is as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 26, | |||||||||||||||
2014 | 2014 | |||||||||||||||
Weighted average grant date fair value of stock options granted | $ | 2.39 | $ | 1.68 | ||||||||||||
Total intrinsic value of stock options exercised (in thousands) | $ | 2,214 | $ | 4,623 | ||||||||||||
Cash received from the exercise of stock options (in thousands) | $ | 4,736 | $ | 9,314 | ||||||||||||
Schedule of activity related to unvested restricted stock grants | ' | |||||||||||||||
The activity related to the Company's unvested restricted stock awards for the nine months ended September 26, 2014 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2014 | 1,238,765 | $ | 2.82 | |||||||||||||
Granted | 2,649,157 | $ | 3.41 | |||||||||||||
Vested | (1,762,465 | ) | $ | 3.16 | ||||||||||||
Forfeited | — | $ | — | |||||||||||||
Unvested balance at September 26, 2014 | 2,125,457 | $ | 3.27 | |||||||||||||
Schedule of activity related to performance stock awards | ' | |||||||||||||||
The activity related to the Company's performance-based stock awards for the nine months ended September 26, 2014 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Unvested balance at January 1, 2014 | 1,059,541 | $ | 2.6 | |||||||||||||
Granted | — | $ | — | |||||||||||||
Vested | (450,687 | ) | $ | 2.43 | ||||||||||||
Forfeited | (205,729 | ) | $ | 2.43 | ||||||||||||
Unvested balance at September 26, 2014 | 403,125 | $ | 2.72 | |||||||||||||
Schedule of stock-based compensation expenses which are included in condensed consolidated statement of operations | ' | |||||||||||||||
The condensed consolidated statements of operations include stock-based compensation for the three and nine months ended September 26, 2014 and September 27, 2013 as follows (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Product cost of revenue | $ | 104 | $ | 46 | $ | 287 | $ | 128 | ||||||||
Service cost of revenue | 381 | 299 | 1,072 | 761 | ||||||||||||
Research and development | 1,521 | 903 | 4,583 | 2,402 | ||||||||||||
Sales and marketing | 1,747 | 1,313 | 4,299 | 3,631 | ||||||||||||
General and administrative | 2,748 | 1,812 | 8,972 | 6,215 | ||||||||||||
$ | 6,501 | $ | 4,373 | $ | 19,213 | $ | 13,137 | |||||||||
MAJOR_CUSTOMERS_Tables
MAJOR CUSTOMERS (Tables) | 9 Months Ended | ||||||||
Sep. 26, 2014 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Schedule of customers contributing 10% or more of the revenue | ' | ||||||||
The following customers each contributed 10% or more of the Company's revenue in at least one of the three or nine month periods ended September 26, 2014 and September 27, 2013: | |||||||||
Three months ended | Nine months ended | ||||||||
September 26, | September 27, | September 26, | September 27, | ||||||
2014 | 2013 | 2014 | 2013 | ||||||
CenturyLink | 17% | * | * | * | |||||
AT&T Inc. | 17% | 18% | 22% | 17% | |||||
__________________________________ | |||||||||
* Represents less than 10% of revenue |
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended | ||||||||||||
Sep. 26, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Summary of revenue by geographic area as a percentage of total revenue | ' | ||||||||||||
The Company's classification of revenue by geographic area is determined by the location to which the product is shipped or where the services are performed. The following table summarizes revenue by geographic area as a percentage of total revenue: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 26, | September 27, | September 26, | September 27, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
United States | 70 | % | 66 | % | 71 | % | 70 | % | |||||
Europe, Middle East and Africa | 10 | 15 | 12 | 12 | |||||||||
Japan | 11 | 8 | 9 | 11 | |||||||||
Other Asia Pacific | 8 | 7 | 6 | 5 | |||||||||
Other | 1 | 4 | 2 | 2 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % |
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION - Narrative (Details) | 9 Months Ended |
Sep. 26, 2014 | |
segment | |
Accounting Policies [Abstract] | ' |
Number of reportable operating segments | 1 |
ACQUISITION_OF_PT_Details
ACQUISITION OF PT - (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 7 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 | Feb. 19, 2014 | Sep. 26, 2014 | Sep. 26, 2014 |
PT [Member] | PT [Member] | PT [Member] | ||||||
Acquisition Of Net | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | ' | $34,000 | ' | ' |
Cash consideration per share of the acquired entity (in dollars per share) | ' | ' | ' | ' | ' | $3.75 | ' | ' |
Goodwill adjustment | ' | ' | ' | ' | ' | ' | 532 | ' |
Other current assets adjustment | ' | ' | ' | ' | ' | ' | -303 | ' |
Other long-term liabilities adjustment | ' | ' | ' | ' | ' | ' | -229 | ' |
Fair value of consideration transferred: | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, net of cash acquired | ' | ' | 35,022 | 0 | ' | 35,022 | ' | ' |
Assumption of equity awards in connection with acquisition of Network Technologies, Inc. | ' | ' | ' | ' | ' | 1,671 | ' | ' |
Fair value of total consideration | ' | ' | ' | ' | ' | 36,693 | ' | ' |
Allocation of the purchase consideration: | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | ' | ' | ' | ' | ' | 2,315 | ' | ' |
Other current assets | ' | ' | ' | ' | ' | 9,393 | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | 2,251 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | ' | ' | ' | 17,100 | ' | ' |
Goodwill | 39,207 | ' | 39,207 | ' | 32,379 | 8,725 | ' | ' |
Current liabilities | ' | ' | ' | ' | ' | -2,762 | ' | ' |
Other long-term liabilities | ' | ' | ' | ' | ' | -329 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | ' | ' | ' | ' | ' | 36,693 | ' | ' |
Professional Fees | ' | ' | ' | ' | ' | ' | ' | 1,057 |
Change of Control Agreements | ' | ' | ' | ' | ' | ' | ' | 249 |
Acquisition-related | $0 | $0 | $1,306 | $0 | ' | ' | ' | $1,306 |
ACQUISITION_OF_PT_Sale_of_MPS_
ACQUISITION OF PT - Sale of MPS (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Jun. 20, 2014 | Sep. 26, 2014 | Jun. 20, 2014 |
Multi Protocol Server [Member] | Multi Protocol Server [Member] | Multi Protocol Server [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Divestiture of business | $2,000 | $0 | ' | $2,000 | ' |
Inventory | ' | ' | ' | ' | -200 |
Fixed assets | ' | ' | ' | ' | -100 |
Deferred revenue | ' | ' | 200 | ' | ' |
Goodwill | ' | ' | ' | ' | -1,900 |
Transaction costs | ' | ' | $400 | ' | ' |
EARNINGS_LOSS_PER_SHARE_Detail
EARNINGS (LOSS) PER SHARE - (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Reconciliation of weighted average shares outstanding from basic to diluted | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 246,457 | 279,209 | 252,808 | 281,041 |
Potential dilutive common shares | 0 | 0 | 0 | 0 |
Weighted average shares outstanding - diluted | 246,457 | 279,209 | 252,808 | 281,041 |
Common stock and unvested shares of restricted stock not included because their effect would have been antidilutive (in shares) | ' | ' | 42,000 | 35,900 |
CASH_EQUIVALENTS_MARKETABLE_SE2
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 |
Minimum [Member] | Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Available-for-sale securities sold | $45,900 | ' | ' |
Available-for-sale securities, gross realized gains | 46 | ' | ' |
Proceeds from maturities of available-for-sale securities | $41,700 | ' | ' |
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 Activity for Short-Term Investments (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' |
Cash equivalents, amortized cost | $9,046 | $50,404 |
Cash equivalents, fair value | 9,046 | 50,404 |
Marketable securities, amortized cost | 59,586 | 138,835 |
Marketable securities, unrealized gains | 6 | 55 |
Marketable securities, unrealized losses | -27 | -8 |
Marketable securities, fair value | 59,565 | 138,882 |
Investments, amortized cost | 43,654 | 34,352 |
Investments, unrealized gains | 6 | 20 |
Investments, unrealized losses | -79 | -8 |
Investments, fair value | 43,581 | 34,364 |
Municipal obligations [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' |
Marketable securities, amortized cost | 502 | ' |
Marketable securities, unrealized gains | 0 | ' |
Marketable securities, unrealized losses | -1 | ' |
Marketable securities, fair value | 501 | ' |
Investments, amortized cost | 1,807 | ' |
Investments, unrealized gains | 0 | ' |
Investments, unrealized losses | -4 | ' |
Investments, fair value | 1,803 | ' |
U.S. government agency notes [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' |
Marketable securities, amortized cost | 5,031 | 47,895 |
Marketable securities, unrealized gains | 1 | 15 |
Marketable securities, unrealized losses | 0 | 0 |
Marketable securities, fair value | 5,032 | 47,910 |
Investments, amortized cost | 2,500 | 9,254 |
Investments, unrealized gains | 1 | 3 |
Investments, unrealized losses | 0 | 0 |
Investments, fair value | 2,501 | 9,257 |
Foreign government notes [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' |
Investments, amortized cost | ' | 1,250 |
Investments, unrealized gains | ' | 0 |
Investments, unrealized losses | ' | 0 |
Investments, fair value | ' | 1,250 |
Corporate debt securities [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' |
Marketable securities, amortized cost | 38,861 | 81,993 |
Marketable securities, unrealized gains | 5 | 35 |
Marketable securities, unrealized losses | -26 | -8 |
Marketable securities, fair value | 38,840 | 82,020 |
Investments, amortized cost | 38,347 | 23,848 |
Investments, unrealized gains | 5 | 17 |
Investments, unrealized losses | -75 | -8 |
Investments, fair value | 38,277 | 23,857 |
Commercial paper [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' |
Marketable securities, amortized cost | 7,192 | 5,647 |
Marketable securities, unrealized gains | 0 | 2 |
Marketable securities, unrealized losses | 0 | 0 |
Marketable securities, fair value | 7,192 | 5,649 |
Certificates of deposit [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses and fair value of marketable debt and equity securities and investments | ' | ' |
Marketable securities, amortized cost | 8,000 | 3,300 |
Marketable securities, unrealized gains | 0 | 3 |
Marketable securities, unrealized losses | 0 | 0 |
Marketable securities, fair value | 8,000 | 3,303 |
Investments, amortized cost | 1,000 | ' |
Investments, unrealized gains | 0 | ' |
Investments, unrealized losses | 0 | ' |
Investments, fair value | $1,000 | ' |
CASH_EQUIVALENTS_MARKETABLE_SE4
CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Schedule of Short-Term Investments by Measurement (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | $9,046 | $50,404 |
Marketable securities, fair value | 59,565 | 138,882 |
Investments, fair value | 43,581 | 34,364 |
Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 9,046 | 50,404 |
Marketable securities, fair value | 59,565 | 138,882 |
Investments, fair value | 43,581 | 34,364 |
Quoted prices in active markets (Level 1) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Cash equivalents, fair value | 9,046 | 50,404 |
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 | 0 |
Marketable securities, fair value | 59,565 | 138,882 |
Investments, fair value | 43,581 | 34,364 |
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 |
Municipal obligations [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 501 | ' |
Investments, fair value | 1,803 | ' |
Municipal obligations [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 | ' |
Municipal obligations [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 501 | ' |
Investments, fair value | 1,803 | ' |
Municipal obligations [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 0 | ' |
Investments, fair value | 0 | ' |
U.S. government agency notes [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 5,032 | 47,910 |
Investments, fair value | 2,501 | 9,257 |
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 | 5,032 | 47,910 |
Investments, fair value | 2,501 | 9,257 |
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 | ' | ' |
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 | ' | ' |
Investments, fair value | ' | 0 |
Foreign government notes [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Investments, fair value | ' | 1,250 |
Foreign government notes [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Investments, fair value | ' | 0 |
Corporate debt securities [Member] | Total carrying value [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 38,840 | 82,020 |
Investments, fair value | 38,277 | 23,857 |
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 | 38,840 | 82,020 |
Investments, fair value | 38,277 | 23,857 |
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 | 7,192 | 5,649 |
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 | 7,192 | 5,649 |
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 | 8,000 | 3,303 |
Investments, fair value | 1,000 | ' |
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 |
Investments, fair value | 0 | ' |
Certificates of deposit [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents, Marketable securities and Investments | ' | ' |
Marketable securities, fair value | 8,000 | 3,303 |
Investments, fair value | 1,000 | ' |
Certificates of deposit [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 | ' |
INVENTORY_Details
INVENTORY - (Details) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $985 | $0 |
On-hand final assemblies and finished goods inventories | 16,976 | 19,070 |
Deferred cost of goods sold | 4,047 | 4,387 |
Gross inventory | 22,008 | 23,457 |
Less current portion | -22,008 | -21,793 |
Noncurrent portion (included in other assets) | $0 | $1,664 |
INTANGIBLE_ASSETS_AND_GOODWILL2
INTANGIBLE ASSETS AND GOODWILL - (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' |
Goodwill, Gross | ' | ' | ' | ' | $35,485 |
Goodwill, Impaired, Accumulated Impairment Loss | ' | ' | ' | ' | 3,106 |
Weighted average amortization period (years) | ' | ' | '5 years 9 months | ' | '4 years 4 months 6 days |
Cost | 34,049 | ' | 34,049 | ' | 16,949 |
Accumulated amortization | 10,260 | ' | 10,260 | ' | 6,858 |
Net carrying value | 23,789 | ' | 23,789 | ' | 10,091 |
Amortization expense | 1,195 | 1,087 | 3,402 | 3,460 | ' |
Estimated future amortization expense for intangible assets | ' | ' | ' | ' | ' |
Remainder of 2014 | 1,195 | ' | 1,195 | ' | ' |
2015 | 5,646 | ' | 5,646 | ' | ' |
2016 | 5,290 | ' | 5,290 | ' | ' |
2017 | 5,260 | ' | 5,260 | ' | ' |
2018 | 2,953 | ' | 2,953 | ' | ' |
Thereafter | 3,445 | ' | 3,445 | ' | ' |
Total | 23,789 | ' | 23,789 | ' | ' |
Intellectual Property [Member] | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '5 years | ' | '5 years |
Cost | 999 | ' | 999 | ' | 999 |
Accumulated amortization | 999 | ' | 999 | ' | 999 |
Net carrying value | 0 | ' | 0 | ' | 0 |
Amortization expense | 0 | 0 | 0 | 200 | ' |
Developed technology [Member] | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '6 years 2 months 5 days | ' | '5 years 0 months 11 days |
Cost | 22,280 | ' | 22,280 | ' | 9,080 |
Accumulated amortization | 4,551 | ' | 4,551 | ' | 2,729 |
Net carrying value | 17,729 | ' | 17,729 | ' | 6,351 |
Amortization expense | 639 | 500 | 1,822 | 1,499 | ' |
Customer relationships [Member] | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '5 years 6 months 26 days | ' | '5 years 3 months 18 days |
Cost | 10,040 | ' | 10,040 | ' | 6,140 |
Accumulated amortization | 4,203 | ' | 4,203 | ' | 2,806 |
Net carrying value | 5,837 | ' | 5,837 | ' | 3,334 |
Amortization expense | 494 | 526 | 1,397 | 1,578 | ' |
Internal use software [Member] | ' | ' | ' | ' | ' |
Intangible Assets And Goodwill | ' | ' | ' | ' | ' |
Weighted average amortization period (years) | ' | ' | '3 years | ' | '3 years |
Cost | 730 | ' | 730 | ' | 730 |
Accumulated amortization | 507 | ' | 507 | ' | 324 |
Net carrying value | 223 | ' | 223 | ' | 406 |
Amortization expense | $62 | $61 | $183 | $183 | ' |
INTANGIBLE_ASSETS_AND_GOODWILL3
INTANGIBLE ASSETS AND GOODWILL - (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 26, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ' | ' |
Goodwill | ' | $35,485 |
Accumulated impairment losses | ' | -3,106 |
Goodwill, beginning of period | 39,207 | 32,379 |
Acquisition of PT | 8,725 | ' |
Sale of MPS business | -1,897 | ' |
Goodwill, end of period | $39,207 | $32,379 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES - (Details) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Employee compensation and related costs | $21,417 | $20,683 |
Other | 11,423 | 13,343 |
Total | $32,840 | $34,026 |
RESTRUCTURING_ACCRUAL_Details
RESTRUCTURING ACCRUAL - (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 |
RESTRUCTURING ACCRUAL | ' | ' | ' | ' | ' |
Accrued restructuring | $1,145 | ' | $1,145 | ' | $1,832 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' |
Restructuring | 673 | 1,140 | 2,233 | 4,787 | ' |
Employee Severance [Member] | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 1,333 | ' | ' |
Restructuring | ' | ' | 2,233 | 4,500 | ' |
Cash payments | ' | ' | -2,494 | ' | ' |
Balance at the end of the period | 1,072 | ' | 1,072 | ' | ' |
Facilities [Member] | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 3,012 | ' | ' |
Restructuring | ' | ' | 0 | 300 | ' |
Cash payments | ' | ' | -885 | ' | ' |
Balance at the end of the period | 2,127 | ' | 2,127 | ' | ' |
Employee Severance and Facilities [Member] | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 4,345 | ' | ' |
Restructuring | ' | ' | 2,233 | ' | ' |
Cash payments | ' | ' | -3,379 | ' | ' |
Balance at the end of the period | $3,199 | ' | $3,199 | ' | ' |
DEBT_Details
DEBT - (Details) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 |
In Thousands, unless otherwise specified | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||
London Interbank Offered Rate (LIBOR) [Member] | Federal Funds Purchased [Member] | Eurodollar [Member] | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | $40,000 | ' | ' | ' |
Interest rate | ' | ' | ' | 1.50% | 0.50% | 1.00% |
Unused commitment fee percentage | ' | ' | 0.15% | ' | ' | ' |
Covenant, minimum amount of cash and cash equivalent | ' | ' | 100,000 | ' | ' | ' |
Aggregate principal amounts remaining outstanding | $2,380 | $2,380 | ' | ' | ' | ' |
COMMON_STOCK_REPURCHASES_AND_U1
COMMON STOCK REPURCHASES AND UNDERWRITTEN OFFERING (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 20, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Jul. 29, 2013 | Sep. 26, 2014 |
Common Stock [Member] | Stock Buyback Program [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Stock buyback program authorized amount | ' | ' | ' | ' | $100,000 | ' |
Payments for repurchase of common stock | 75,256 | ' | 89,919 | 37,340 | ' | 14,662 |
Stock Repurchased and Retired During Period, Shares | ' | ' | 4,041 | ' | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | 26,125 | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 37,500 | ' | ' | ' | ' | ' |
Over-allotment Option Period | '30 days | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues, Over-Allotment Option | 5,625 | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | 21,500 | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Price Per Share | $3.49 | ' | ' | ' | ' | ' |
Transaction Fees | $300 | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS - (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 18, 2014 | Jan. 22, 2014 | Feb. 15, 2013 | Feb. 10, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Feb. 19, 2014 | Jan. 02, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Mar. 29, 2013 | Feb. 18, 2014 | Sep. 26, 2014 | Feb. 19, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Feb. 19, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Jan. 02, 2014 | Feb. 15, 2013 | Sep. 26, 2014 | Mar. 28, 2014 |
executives | executives | executives | executives | executives | Product cost of revenue [Member] | Product cost of revenue [Member] | Product cost of revenue [Member] | Product cost of revenue [Member] | Service cost of revenue [Member] | Service cost of revenue [Member] | Service cost of revenue [Member] | Service cost of revenue [Member] | Research and development [Member] | Research and development [Member] | Research and development [Member] | Research and development [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Raymond P. Dolan, President and Chief Executive Officer [Member] | Matthew W. Bross and Richard J. Lynch [Member] | Matthew W. Bross and Richard J. Lynch [Member] | Matthew W. Bross and Richard J. Lynch [Member] | Immediately Vest [Member] | Vest July 1, 2014 [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | PT [Member] | PT [Member] | Stock options [Member] | Stock options [Member] | Restricted stock awards [Member] | Restricted stock awards [Member] | Performance share awards [Member] | Performance share awards [Member] | Employee Stock [Member] | ||||||||
Matthew W. Bross and Richard J. Lynch [Member] | Matthew W. Bross and Richard J. Lynch [Member] | Raymond P. Dolan, President and Chief Executive Officer [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion factor used to convert a number of shares available for grant into the entity's equity awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.23 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation by Share-based Payment Award, Offering Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,671 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of executives | ' | 21 | 8 | 9 | 21 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Executives Electing to Receive Cash Bonus | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation by Share-based Payment Award, Stock Percentage of Award | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Salary Base to Calculate Shares Granted | ' | 150.00% | ' | ' | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of bonus received as common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Award vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.30 | $3.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation by Share-based Payment Award, Cash Percentage of Award | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Executives Electing to Receive Stock Bonus | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.75 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Base to Calculate Shares Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,569 | ' | ' | ' | ' |
Stock-based compensation (in dollars) | ' | ' | ' | ' | ' | ' | 6,501 | 4,373 | 19,213 | 13,137 | ' | ' | 104 | 46 | 287 | 128 | 381 | 299 | 1,072 | 761 | 1,521 | 903 | 4,583 | 2,402 | 1,747 | 1,313 | 4,299 | 3,631 | 2,748 | 1,812 | 8,972 | 6,215 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the assumed awards attributable to future stock-based compensation expense | ' | ' | ' | ' | ' | ' | 33,684 | ' | 33,684 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 883 | ' | ' | ' | ' | ' | ' | ' | ' |
Expected period for unrecognized expense | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 19,213 | 13,137 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 703 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,136,112 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,297,916 | ' | ' | ' | ' | ' |
PT outstanding options converted to Sonus options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,283,058 | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,666,251 | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,555,109 | ' | ' | ' | ' | ' |
Expired (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,631,479 | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,864,247 | 38,864,247 | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,403,067 | 35,403,067 | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,862,066 | 16,862,066 | ' | ' | ' | ' | ' |
Weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.22 | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.60 | ' | ' | ' | ' | ' |
PT outstanding options converted to Sonus options (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.73 | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.54 | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.83 | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.18 | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.28 | $3.28 | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.28 | $3.28 | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.41 | $3.41 | ' | ' | ' | ' | ' |
Weighted average remaining contractual life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 3 months 7 days | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 1 month 10 days | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 3 months 18 days | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,401 | 20,401 | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,183 | 19,183 | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,836 | 10,836 | ' | ' | ' | ' | ' |
Range of assumptions used in estimating fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rates, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.66% | 1.53% | ' | ' | ' | ' | ' |
Risk-free interest rates, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 2.70% | ' | ' | ' | ' | ' |
Expected dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' |
Weighted average volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52.30% | 61.00% | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 6 months | '4 years 6 months | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of stock options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.39 | $1.68 | ' | ' | ' | ' | ' |
Total intrinsic values of stock options exercised (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,214 | 4,623 | ' | ' | ' | ' | ' |
Cash received from the exercise of stock options (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | $9,314 | $2,393 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,736 | $9,314 | ' | ' | ' | ' | ' |
Change in unvested restricted stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,238,765 | ' | ' | 1,059,541 | ' |
Granted (in shares) | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,649,157 | 243,507 | ' | 0 | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,762,465 | ' | ' | -450,687 | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | -205,729 | ' |
Unvested balance at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,125,457 | ' | ' | 403,125 | ' |
Weighted average grant-date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.82 | ' | ' | $2.60 | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.41 | ' | ' | $0 | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.16 | ' | ' | $2.43 | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | $2.43 | ' |
Unvested balance at end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.27 | ' | ' | $2.72 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 |
MAJOR_CUSTOMERS_Details
MAJOR CUSTOMERS - (Details) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | |
Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Accounts receivable balance [Member] | Accounts receivable balance [Member] | Accounts receivable balance [Member] | |
Less than [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | Customer [Member] | ||
CenturyLink [Member] | AT&T [Member] | AT&T [Member] | AT&T [Member] | AT&T [Member] | customer | customer | |||
MAJOR CUSTOMERS | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | 17.00% | 17.00% | 18.00% | 22.00% | 17.00% | ' | 37.00% | 13.00% |
Number of major customers | ' | ' | ' | ' | ' | ' | ' | 2 | 1 |
Threshold percentage | 10.00% | ' | ' | ' | ' | ' | 10.00% | ' | ' |
GEOGRAPHIC_INFORMATION_Summary
GEOGRAPHIC INFORMATION - Summary of Revenue by Geographic Area as a Percentage of Total Revenue (Details) (Revenue [Member], Geographical area [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 70.00% | 66.00% | 71.00% | 70.00% |
Europe, Middle East and Africa [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 10.00% | 15.00% | 12.00% | 12.00% |
Japan [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 11.00% | 8.00% | 9.00% | 11.00% |
Other Asia Pacific [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 8.00% | 7.00% | 6.00% | 5.00% |
Other [Member] | ' | ' | ' | ' |
Revenue by geographic area and by customer | ' | ' | ' | ' |
Percentage of total revenue | 1.00% | 4.00% | 2.00% | 2.00% |