Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'PDF SOLUTIONS INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 30,185,802 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001120914 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $85,233 | $61,637 |
Accounts receivable, net of allowance of $269 and $351, respectively | 28,288 | 33,959 |
Deferred tax assets - current portion | 4,868 | 3,589 |
Prepaid expenses and other current assets | 3,524 | 3,413 |
Total current assets | 121,913 | 102,598 |
Property and equipment, net | 6,265 | 3,898 |
Deferred tax assets - non-current portion | 10,971 | 16,471 |
Other non-current assets | 1,893 | 1,293 |
Total assets | 141,042 | 124,260 |
Current liabilities: | ' | ' |
Accounts payable | 659 | 2,054 |
Accrued compensation and related benefits | 6,871 | 10,723 |
Accrued and other current liabilities | 1,352 | 2,882 |
Deferred revenues | 2,375 | 3,232 |
Billings in excess of recognized revenues | 286 | 807 |
Total current liabilities | 11,543 | 19,698 |
Non-current liabilities | 3,557 | 3,502 |
Total liabilities | 15,100 | 23,200 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.00015 par value, 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.00015 par value, 70,000 shares authorized: shares issued 34,968 and 34,027, respectively; shares outstanding 30,159 and 29,226, respectively | 5 | 4 |
Additional paid-in-capital | 231,125 | 220,361 |
Treasury stock at cost, 4,809 and 4,801 shares, respectively | -28,017 | -27,778 |
Accumulated deficit | -77,471 | -91,578 |
Accumulated other comprehensive income | 300 | 51 |
Total stockholders’ equity | 125,942 | 101,060 |
Total liabilities and stockholders’ equity | $141,042 | $124,260 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance (in Dollars) | $269 | $351 |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
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 | 70,000 | 70,000 |
Common stock, shares issued | 34,968 | 34,027 |
Common stock, shares outstanding | 30,159 | 29,226 |
Treasury stock shares | 4,809 | 4,801 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Design-to-silicon-yield solutions | $17,015,000 | $15,305,000 | $46,813,000 | $42,484,000 |
Gainshare performance incentives | 8,474,000 | 7,246,000 | 27,562,000 | 23,241,000 |
Total revenues | 25,489,000 | 22,551,000 | 74,375,000 | 65,725,000 |
Costs of design-to-silicon-yield solutions: | ' | ' | ' | ' |
Direct costs of design-to-silicon-yield solutions | 10,507,000 | 9,457,000 | 29,905,000 | 26,830,000 |
Amortization of acquired technology | ' | ' | ' | 261,000 |
Total costs of design-to-silicon-yield solutions | 10,507,000 | 9,457,000 | 29,905,000 | 27,091,000 |
Gross profit | 14,982,000 | 13,094,000 | 44,470,000 | 38,634,000 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 3,396,000 | 3,203,000 | 9,944,000 | 9,651,000 |
Selling, general and administrative | 3,812,000 | 4,498,000 | 13,010,000 | 14,122,000 |
Amortization of other acquired intangible assets | 19,000 | 51,000 | 56,000 | 153,000 |
Restructuring charges (credits) | 8,000 | 0 | -35,000 | 83,000 |
Total operating expenses | 7,235,000 | 7,752,000 | 22,975,000 | 24,009,000 |
Income from operations | 7,747,000 | 5,342,000 | 21,495,000 | 14,625,000 |
Interest and other income (expense), net | -283,000 | -179,000 | -109,000 | -166,000 |
Income before income taxes | 7,464,000 | 5,163,000 | 21,386,000 | 14,459,000 |
Income tax provision | 2,640,000 | 170,000 | 7,279,000 | 1,147,000 |
Net income | 4,824,000 | 4,993,000 | 14,107,000 | 13,312,000 |
Net income per share: | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.16 | $0.17 | $0.48 | $0.47 |
Diluted (in Dollars per share) | $0.15 | $0.17 | $0.45 | $0.45 |
Weighted average common shares: | ' | ' | ' | ' |
Basic (in Shares) | 30,000 | 28,720 | 29,668 | 28,555 |
Diluted (in Shares) | 31,623 | 30,180 | 31,198 | 29,596 |
Net income | 4,824,000 | 4,993,000 | 14,107,000 | 13,312,000 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustments, net of tax | 236,000 | 257,000 | 249,000 | -10,000 |
Reclassification adjustment for other-than-temporary impairment on auction-rate-securities recognized in earnings | ' | ' | ' | 216,000 |
Comprehensive income | $5,060,000 | $5,250,000 | $14,356,000 | $13,518,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Operating activities: | ' | ' |
Net income | $14,107,000 | $13,312,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 961,000 | 316,000 |
Stock-based compensation expense | 4,942,000 | 3,476,000 |
Amortization of acquired intangible assets | 56,000 | 413,000 |
Deferred taxes | 4,220,000 | -32,000 |
Losses (gains) on disposal of property and equipment | -9,000 | 8,000 |
Purchases of treasury stock in connection with tax withholdings on restricted stock grants | -395,000 | -187,000 |
Provisions for (reversal of) doubtful accounts | -82,000 | 97,000 |
Gains on sale of investments | ' | -50,000 |
Net impairment of investments | ' | 75,000 |
Tax benefit related to stock-based compensation expense | 454,000 | ' |
Excess tax benefit from stock-based compensation | -439,000 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 6,021,000 | -12,692,000 |
Prepaid expenses and other assets | -1,106,000 | -811,000 |
Accounts payable | -1,261,000 | -281,000 |
Accrued compensation and related benefits | -3,972,000 | 3,393,000 |
Accrued and other liabilities | -1,293,000 | -532,000 |
Deferred revenues | -796,000 | -555,000 |
Billings in excess of recognized revenues | -521,000 | -1,306,000 |
Net cash provided by operating activities | 20,887,000 | 4,644,000 |
Investing activities: | ' | ' |
Proceeds from the sale of short-term investments | ' | 475,000 |
Purchases of property and equipment | -3,372,000 | -2,066,000 |
Net cash used in investing activities | -3,372,000 | -1,591,000 |
Financing activities: | ' | ' |
Proceeds from exercise of stock options | 4,270,000 | 4,753,000 |
Proceeds from employee stock purchase plan | 1,317,000 | 977,000 |
Excess tax benefit from stock-based compensation | 439,000 | ' |
Purchases of treasury stock | ' | -3,891,000 |
Net cash provided by financing activities | 6,026,000 | 1,839,000 |
Effect of exchange rate changes on cash and cash equivalents | 55,000 | -1,000 |
Net change in cash and cash equivalents | 23,596,000 | 4,891,000 |
Cash and cash equivalents, beginning of period | 61,637,000 | 46,041,000 |
Cash and cash equivalents, end of period | 85,233,000 | 50,932,000 |
Cash paid during the period for: | ' | ' |
Income Taxes | $3,252,000 | $1,807,000 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
1. BASIS OF PRESENTATION | |
Basis of Presentation | |
The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (“the Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The interim unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary (consisting only of normal recurring adjustments), to present a fair statement of results for the interim periods presented. The operating results for any interim period are not necessarily indicative of the results that may be expected for other interim periods or the full fiscal year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all significant intercompany balances and transactions. | |
The condensed consolidated balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. | |
Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include stock-based compensation expense, allowances for doubtful accounts receivable, estimates for useful lives associated with long-lived assets, restructuring charges, fair value of financial instruments and income taxes and tax valuation allowances. Actual results could differ from those estimates. | |
Revenue Recognition — The Company derives revenue from two sources: Design-to-silicon-yield solutions and Gainshare performance incentives. | |
Design-to-Silicon-Yield Solutions — Revenue that is derived from Design-to-silicon-yield solutions comes from services and software licenses. The Company recognizes revenue of Design-to-silicon-yield solutions as follows: | |
The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. These contracts require reliable estimation of costs to perform obligations and the overall scope of each engagement. Revenue under project–based contracts for solution implementation services is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting. Losses on fixed-price solution implementation contracts are recognized in the period when they become probable. Revisions in profit estimates are reflected in the period in which the conditions that require the revisions become known and can be estimated. Revenue under time and materials contracts for solution implementation services are recognized as the services are performed. On occasion, the Company licenses its software products as a component of its fixed-price service contracts. In such instances, the software products are licensed to customers over a specified term of the agreement with support and maintenance to be provided at each customer's option over the license term. The amount of product and service revenue recognized in a given period is affected by the Company’s judgment as to whether an arrangement includes multiple deliverables and, if so, the Company’s determination of the fair value of each deliverable. In general, vendor-specific objective evidence of selling price (“VSOE”) does not exist for the Company’s solution implementation services and software products and because the Company’s services and products include our unique technology, the Company is not able to determine third-party evidence of selling price (“TPE”). Therefore, in such circumstances the Company uses best estimated selling prices (“BESP”) in the allocation of arrangement consideration. In determining BESP, the Company applies significant judgment as the Company’s weighs a variety of factors, based on the facts and circumstances of the arrangement. The Company typically arrives at BESP for a product or service that is not sold separately by considering company-specific factors such as geographies, internal costs, gross margin objectives, pricing practices used to establish bundled pricing, and existing portfolio pricing and discounting. After fair value is established for each deliverable, the total transaction amount is allocated to each deliverable based upon its relative fair value. Fees allocated to solution implementation services are recognized using the cost-to-cost percentage of completion method of contract accounting. Fees allocated to software and related support and maintenance are recognized under software revenue recognition guidance. | |
The Company also licenses its software products separately from its solution implementations. For software license arrangements that do not require significant modification or customization of the underlying software, software license revenue is recognized under the residual method when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable, (4) collectability is probable, and (5) the arrangement does not require services that are essential to the functionality of the software. When arrangements include multiple elements such as support and maintenance, consulting (other than for its fixed price solution implementations), installation, and training, revenue is allocated to each element of a transaction based upon its fair value as determined by the Company’s VSOE and such services are recorded as services revenue. VSOE for maintenance is generally established based upon negotiated renewal rates while VSOE for consulting, installation, and training services is established based upon the Company’s customary pricing for such services when sold separately. Revenue for software licenses with extended payment terms is not recognized in excess of amounts due. For software license arrangements that require significant modification or customization of the underlying software, the software license revenue is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting, and such revenue is recorded as services revenue. | |
Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two components: (1) a fixed fee for performance by the Company of services delivered over a specific period of time; and (2) a Gainshare performance incentive component where the customer may pay a contingent variable fee, usually after the fixed fee period has ended. Revenue derived from Gainshare performance incentives represents profit sharing and performance incentives earned contingent upon the Company’s customers reaching certain defined operational levels established in related solution implementation service contracts. Gainshare performance incentives periods are usually subsequent to the delivery of all contractual services and therefore have no cost to the Company. Due to the uncertainties surrounding attainment of such operational levels, the Company recognizes Gainshare performance incentives revenue (to the extent of completion of the related solution implementation contract) upon receipt of performance reports or other related information from the customer supporting the determination of amounts and probability of collection. |
Note_2_Recent_Accounting_Prono
Note 2 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Table Text Block [Abstract] | ' |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | ' |
2. RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board ("FASB") amended its guidance related to the presentation of unrecognized tax benefits. The standard provides that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for annual reporting periods beginning on or after December 15, 2013, and interim periods within those annual periods. The guidance is to be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company is currently assessing the impacts of this guidance. | |
In December 2011, the Financial Accounting Standards Board (“FASB”) amended its guidance related to the disclosures about offsetting assets and liabilities. The standard requires the Company to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The disclosures are applied retrospectively for all comparative periods presented. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements as it is disclosure-only in nature. | |
In June 2011, the FASB amended its guidance related to the presentation of comprehensive income to increase comparability between U.S. GAAP and International Financial Reporting Standards (“IFRS”). This amended guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity and instead requires presenting in one continuous statement or two separate but consecutive statements. Additionally, the amendment requires entities to present reclassification adjustments to show the effect of reclassifications on both the components of other comprehensive income and the components of net income in interim and annual financial statements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with early adoption permitted. The guidance is effective for the Company’s fiscal year beginning January 1, 2012. In December 2011, the FASB issued an amendment to defer the presentation on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for annual and interim financial statements. In February 2013, the FASB issued amendments to disclosure requirements for presentation of comprehensive income. The standard requires presentation (either in a single note or parenthetically on the face of the financial statements) of the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, a cross reference to the related footnote for additional information is required. The amendments are effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Note_3_Balance_Sheet_Component
Note 3 - Balance Sheet Components | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Supplemental Balance Sheet Disclosures [Text Block] | ' | ||||||||
3. BALANCE SHEET COMPONENTS | |||||||||
Accounts receivable include amounts that are unbilled at the end of the period. Unbilled accounts receivable are determined on an individual contract basis and were $7.5 million and $7.7 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||
Property and equipment consists of (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and equipment, net: | |||||||||
Computer equipment | $ | 10,964 | $ | 10,319 | |||||
Software | 3,633 | 3,552 | |||||||
Furniture, fixtures and equipment | 935 | 971 | |||||||
Leasehold improvements | 1,045 | 1,021 | |||||||
Test equipment | 4,555 | 2,005 | |||||||
Construction-in-progress | 821 | 864 | |||||||
21,953 | 18,732 | ||||||||
Less: accumulated depreciation | (15,688 | ) | (14,834 | ) | |||||
Total | $ | 6,265 | $ | 3,898 | |||||
Depreciation and amortization expense was $0.4 million and $0.1 million for the three months ended September 30, 2013 and 2012, respectively. Depreciation and amortization expense was $1.0 million and $0.3 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||
Intangible assets balance was $49,000 and $104,000 as of September 30, 2013 and December 31, 2012, respectively. The balance was included in other non-current assets in the accompanying condensed consolidated balance sheets. For the three months ended September 30, 2013 and 2012, intangible asset amortization expense was $19,000 and $51,000, respectively. For the nine months ended September 30, 2013 and 2012, intangible asset amortization expense was $56,000 and $414,000, respectively. The Company expects the amortization of its existing intangible assets to be $18,000 for the remaining three months in 2013 and $31,000 in 2014. | |||||||||
Intangible assets are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. During the nine months ended September 30, 2013, there were no indicators of impairment related to the Company’s intangible assets. |
Note_4_Stockholders_Equity
Note 4 - Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | ' | ||||||||||||||||
4. STOCKHOLDERS’ EQUITY | |||||||||||||||||
Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized on a straight-line basis over the vesting periods, generally four years. Stock-based compensation expenses before taxes related to the Company’s stock plans and employee stock purchase plan were allocated as follows (in thousands): | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of design-to-silicon yield-solutions | $ | 812 | $ | 513 | $ | 1,995 | $ | 1,264 | |||||||||
Research and development | 484 | 288 | 1,143 | 726 | |||||||||||||
Selling, general and administrative | 628 | 452 | 1,804 | 1,486 | |||||||||||||
Stock-based compensation expenses | $ | 1,924 | $ | 1,253 | $ | 4,942 | $ | 3,476 | |||||||||
The Company estimated the fair value of share-based awards granted during the period using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions, resulting in the following weighted average fair values: | |||||||||||||||||
Stock Plans: | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expected life (in years) | 4.78 | 4.58 | 4.78 | 4.82 | |||||||||||||
Volatility | 50.3 | % | 57.42 | % | 55.83 | % | 59.41 | % | |||||||||
Risk-free interest rate | 1.31 | % | 0.66 | % | 0.94 | % | 0.77 | % | |||||||||
Expected dividend | — | — | — | — | |||||||||||||
Weighted average fair value per share of options granted during the period | $ | 9.13 | $ | 4.77 | $ | 7.55 | $ | 4.26 | |||||||||
Employee Stock Purchase Plan: | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expected life (in years) | 1.25 | 1.25 | 1.25 | 1.25 | |||||||||||||
Volatility | 41.21 | % | 51.92 | % | 45.29 | % | 51.59 | % | |||||||||
Risk-free interest rate | 0.2 | % | 0.19 | % | 0.19 | % | 0.18 | % | |||||||||
Expected dividend | — | — | — | — | |||||||||||||
Weighted average fair of purchase rights granted during the period | $ | 6.95 | $ | 3.46 | $ | 5.56 | $ | 2.99 | |||||||||
On September 30, 2013, the Company has in effect the following stock-based compensation plans: | |||||||||||||||||
Stock Plans — At the annual meeting of stockholders on November 16, 2011, the Company’s stockholders approved the 2011 Stock Incentive Plan (the “2011 Plan”). Under the 2011 Plan, the Company may award stock options, stock appreciation rights, stock grants or stock units covering shares of the Company's common stock to employees, directors, non-employee directors and contractors. The aggregate number of shares reserved for awards under this plan is 3,200,000 shares, plus up to 3,500,000 shares previously issued under the 2001 Plan that are forfeited or repurchased by the Company or shares subject to awards previously issued under the 2001 Plan that expire or that terminate without having been exercised or settled in full on or after November 16, 2011. In case of awards other than options or stock appreciation rights, the aggregate number of shares reserved under the plan will be decreased at a rate of 1.33 shares issued pursuant to such awards. The exercise price for stock options must generally be at prices no less than the fair market value at the date of grant. Stock options generally expire ten years from the date of grant and become vested and exercisable over a four-year period. | |||||||||||||||||
On May 28, 2013, the Company’s stockholders approved the Company’s First Amended and Restated 2011 Stock Incentive Plan to increase the number of authorized shares under such plan by 1,600,000 shares for a total of 4,800,000 shares. | |||||||||||||||||
In 2001, the Company adopted a 2001 Stock Plan (the “2001 Plan”). In 2003, in connection with its acquisition of IDS Systems Inc., the Company assumed IDS’ 2001 Stock Option / Stock Issuance Plan (the “IDS Plan”). Both of the 2001 and the IDS Plans expired in 2011. Stock options granted under the 2001 and IDS Plans generally expire ten years from the date of grant and become vested and exercisable over a four-year period. Although no new awards may be granted under the 2001 or IDS Plans, awards made under the 2001 and IDS Plans that are currently outstanding remain subject to the terms of each such plan. | |||||||||||||||||
As of September 30, 2013, 5.2 million shares of common stock were reserved to cover stock-based awards under the 2011 Plan, of which 2.7 million shares were available for future grant. The number of shares reserved and available under the 2011 Plan includes 0.4 million shares that were subject to awards previously made under the 2001 Plan and were forfeited, expired or repurchased by the Company after adoption of the 2011 Plan through September 30, 2013. As of September 30, 2013, there were no outstanding awards that had been granted outside of the 2011, 2001 or the IDS Plans (collectively, the "Stock Plans"). | |||||||||||||||||
Stock option activity under the Company’s Stock Plans during the nine months ended September 30, 2013 was as follows: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
(in | Exercise | Remaining | Value | ||||||||||||||
thousands) | Price | Contractual | (in | ||||||||||||||
per Share | Term | thousands) | |||||||||||||||
(years) | |||||||||||||||||
Outstanding, January 1, 2013 | 3,810 | $ | 6.91 | ||||||||||||||
Granted | 65 | $ | 16.07 | ||||||||||||||
Exercised | (682 | ) | $ | 6.22 | |||||||||||||
Canceled | (92 | ) | $ | 8.51 | |||||||||||||
Expired | (18 | ) | $ | 5.97 | |||||||||||||
Outstanding, September 30, 2013 | 3,083 | $ | 7.21 | 6.81 | $ | 43,248 | |||||||||||
Vested and expected to vest, September 30, 2013 | 2,942 | $ | 7.14 | 6.73 | $ | 41,451 | |||||||||||
Exercisable, September 30, 2013 | 1,859 | $ | 6.65 | 5.85 | $ | 27,108 | |||||||||||
The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company’s closing stock price of $21.23 per share as of September 30, 2013, which would have been received by the option holders had all “in-the-money” option holders exercised their options as of that date. The total intrinsic value of options exercised during the nine months ended September 30, 2013 was $8.6 million. | |||||||||||||||||
As of September 30, 2013, there was $4.4 million of total unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized over a weighted average period of 2.22 years. The total fair value of shares vested during the nine months ended September 30, 2013 was $2.3 million. | |||||||||||||||||
Nonvested restricted stock units activity during the nine months ended September 30, 2013 was as follows: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
(in thousands) | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value Per | |||||||||||||||||
Share | |||||||||||||||||
Nonvested, January 1, 2013 | 450 | $ | 7.97 | ||||||||||||||
Granted | 550 | $ | 18.15 | ||||||||||||||
Vested | (90 | ) | $ | 8.87 | |||||||||||||
Forfeited | (22 | ) | $ | 8.72 | |||||||||||||
Nonvested, September 30, 2013 | 888 | $ | 14.06 | ||||||||||||||
As of September 30, 2013, there was $9.4 million of total unrecognized compensation cost related to nonvested restricted stock units. That cost is expected to be recognized over a weighted average period of 3.0 years. | |||||||||||||||||
Employee Stock Purchase Plan — In July 2001, the Company adopted a ten-year Employee Stock Purchase Plan (“Purchase Plan”) under which eligible employees can contribute up to 10% of their compensation, as defined in the Purchase Plan, towards the purchase of shares of PDF common stock at a price of 85% of the lower of the fair market value at the beginning of the offering period or the end of the purchase period. The Purchase Plan consists of twenty-four-month offering periods with four six-month purchase periods in each offering period. Under the Purchase Plan, on January 1 of each year, starting with 2002, the number of shares reserved for issuance will automatically increase by the lesser of (1) 675,000 shares, (2) 2% of the Company’s outstanding common stock on the last day of the immediately preceding year, or (3) the number of shares determined by the board of directors. At the annual meeting of stockholders on May 18, 2010, the Company’s stockholders approved an amendment to the Purchase Plan to extend it through May 17, 2020. During the three months and nine months ended September 30, 2013, a total of 80,000 and 184,000 shares, respectively, were issued at a weighted-average purchase price of $9.66 and $7.16 per share, respectively, under the Purchase Plan. During the three months and nine months ended September 30, 2012, a total of 104,000 and 202,000 shares, respectively, were issued at a weighted-average purchase price of $4.89 and $4.85 per share, respectively, under the Purchase Plan. For the three months and nine months ended September 30, 2013, the Purchase Plan compensation expense was $0.1 million and $0.5 million, respectively. For the three months and nine months ended September 30, 2012, the Purchase Plan compensation expense was $0.1 million and $0.3 million, respectively. As of September 30, 2013, there was $0.7 million of unrecognized compensation cost related to the Purchase Plan. That cost is expected to be recognized over a weighted average period of 1.4 years. As of September 30, 2013, 1.3 million shares were available for future issuance under the Purchase Plan. | |||||||||||||||||
Stock Repurchase Program — On October 29, 2007, the Board of Directors adopted a program to repurchase up to $10.0 million of the Company’s common stock on the open market. The initial program was for three years, but on October 19, 2010, the Board of Directors authorized an extension of, and an increase in, the program and the aggregate amount available to repurchase between October 19, 2010 and October 29, 2012 was reset to $10.0 million of the Company’s common stock, meaning a total of $19.3 million was available. The program expired on October 29, 2012, as of which date, 3.8 million shares had been repurchased at the average price of $4.53 per share and a total purchase price of $17.0 million. On November 8, 2012, the Board of Directors adopted a new program to repurchase up to $20.0 million of the Company’s common stock on the open market over the next two years. As of September 30, 2013, 36,100 shares had been repurchased at the average price of $13.23 per share under this new program, at a total purchase of $0.5 million, and $19.5 million remained available for future repurchases. |
Note_5_Restructuring
Note 5 - Restructuring | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||||||||||
5. RESTRUCTURING | |||||||||||||||||
The Company implemented restructuring plans during fiscal years 2012 and 2008, and recorded total restructuring expense of $8,000 and zero for the three months ended on September 30, 2013 and 2012. The Company recorded total restructuring credits of $35,000 for the nine months ended September 30, 2013 and restructuring expense of $83,000 for the nine months ended September 30, 2012. As of September 30, 2013, the remaining restructuring accrual was $49,000, which represents employee severance charges, which the Company expects to pay out by the end of 2013. This remaining accrual balance was included in accrued and other current liabilities in the accompanying consolidated balance sheets. | |||||||||||||||||
October 2012 Plan | |||||||||||||||||
On October 24, 2012, the Company announced a restructuring plan as part of the Company’s continuing efforts to simplify the organization, leverage cross-training and learning, and reduce annual operations expenses. Under this plan, the Company has recorded restructuring charges of $1.8 million, which primarily consisted of employee severance costs of $1.7 million. The following table summarizes the activities of these restructuring liabilities (in thousands) for the periods covered below: | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||
Beginning balance | $ | 66 | $ | 896 | |||||||||||||
Restructuring charges (credits) | 8 | 67 | |||||||||||||||
Cash payments | (25 | ) | (914 | ) | |||||||||||||
Ending balance | $ | 49 | $ | 49 | |||||||||||||
October 2008 Plan | |||||||||||||||||
On October 28, 2008, the Company announced a restructuring plan to better allocate its resources to improve its operational results in light of the market conditions. Under this plan, the Company has recorded restructuring charges of $7.4 million, primarily consisting of employee severance costs of $4.7 million and facility exit costs of $2.7 million. The following table summarizes the activities of these restructuring liabilities (in thousands) for the periods covered below: | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 105 | $ | 697 | $ | 448 | $ | 728 | |||||||||
Restructuring charges (credits) | — | — | (102 | ) | 83 | ||||||||||||
Adjustments | — | 4 | 3 | 170 | |||||||||||||
Cash payments | (105 | ) | (134 | ) | (349 | ) | (414 | ) | |||||||||
Ending balance | $ | — | $ | 567 | $ | — | $ | 567 | |||||||||
Note_6_Income_Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
6. INCOME TAXES | |
Income tax provision increased $6.1 million for the nine months ended September 30, 2013 to $7.3 million as compared to an income tax provision of $1.1 million for the nine months ended September 30, 2012. The Company’s effective tax rate was 34.04% and 7.93% for the nine months ended September 30, 2013 and September 30, 2012, respectively. The income tax provision for the nine months ended September 30, 2013 was less than the provision at the statutory rate primarily due to changes in unrecognized tax benefits and the benefit of the research and development tax credit. The income tax provision for the nine months ended September 30, 2012 was significantly less than the provision at the statutory rate primarily due to the utilization of U.S. tax credits, offset by foreign withholding taxes, statutory taxes, and changes in unrecognized tax benefits. | |
On January 2, 2013, the President signed into law the American Taxpayer Relief Act which reinstated the U.S. Federal Research and Development tax credit retroactive to January 1, 2012 and extended the tax credit through December 31, 2013. As a result of the new legislation, the Company recognized a benefit in the three months ended March 31, 2013 related to 12 months of fiscal 2012 as well as a benefit to the annual effective tax rate for the full year research tax credit for fiscal 2013. | |
The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of September 30, 2013 was $9.6 million, of which $5.9 million, if recognized, would affect the Company’s effective tax rate. The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of December 31, 2012 was $9.6 million, of which $6.0 million, if recognized, would affect the Company's effective tax rate. As of September 30, 2013, the Company has recorded unrecognized tax benefits of $2.9 million, including interest and penalties, as long-term taxes payable in its condensed consolidated balance sheet. The remaining $7.2 million has been recorded net of our deferred tax assets, of which $3.7 million is subject to a full valuation allowance. | |
As of September 30, 2013, the Company believes that most of its deferred tax assets are “more likely than not” to be realized with the exception of California R&D tax credits that have not met the “more likely than not” realization threshold criteria because on an annual basis and pursuant to current law, the Company generates more California credits than California tax. As a result, at September 30, 2013, the excess California R&D tax credits continue to be subject to a full valuation allowance. In the event the Company concludes at a future financial reporting period that there has been a change in its ability to realize the California R&D credit deferred tax assets, and it is at such time no longer “more likely than not” that the Company will realize the tax credits before applicable expiration dates, the Company’s tax provision will increase in the period in which the Company makes such determination. | |
The Company conducts business globally and, as a result, files numerous consolidated and separate income tax returns in the U.S. federal, various state and foreign jurisdictions. Because the Company used some of the tax attributes carried forward from previous years to tax years that are still open, statutes of limitation remain open for all tax years to the extent of the attributes carried forward into tax year 2002 for federal and California tax purposes. The Company is not subject to income tax examinations in any other of its major foreign subsidiaries’ jurisdictions. |
Note_7_Net_Income_Per_Share
Note 7 - Net Income Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
7. NET INCOME PER SHARE | |||||||||||||||||
Basic net income per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of the tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income per share (in thousands except per share amount): | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 4,824 | $ | 4,993 | $ | 14,107 | $ | 13,312 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average common shares outstanding | 30,000 | 28,720 | 29,668 | 28,555 | |||||||||||||
Dilutive effect of equity incentive plans | 1,623 | 1,460 | 1,530 | 1,041 | |||||||||||||
Diluted weighted average common shares outstanding | 31,623 | 30,180 | 31,198 | 29,596 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.16 | $ | 0.17 | $ | 0.48 | $ | 0.47 | |||||||||
Diluted | $ | 0.15 | $ | 0.17 | $ | 0.45 | $ | 0.45 | |||||||||
The following table sets forth potential shares of common stock that are not included in the diluted net income per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands): | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Outstanding options | 60 | 1,229 | 48 | 1,633 | |||||||||||||
Nonvested restricted stock units | — | 9 | 1 | 24 | |||||||||||||
Total | 60 | 1,238 | 49 | 1,657 | |||||||||||||
Note_8_Customer_and_Geographic
Note 8 - Customer and Geographic Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
8. CUSTOMER AND GEOGRAPHIC INFORMATION | |||||||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance. | |||||||||||||||||
The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in one operating segment, specifically the licensing and implementation of yield improvement solutions for companies designing and/or manufacturing integrated circuits. | |||||||||||||||||
The Company had revenues from individual customers in excess of 10% of total revenues as follows: | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
Customer | 2013 | 2012 | 2013 | 2012 | |||||||||||||
A | 35 | % | 11 | % | 26 | % | 12 | % | |||||||||
B | 28 | % | 35 | % | 31 | % | 39 | % | |||||||||
C | 13 | % | 25 | % | 17 | % | 21 | % | |||||||||
The Company had gross accounts receivable from the following individual customers in excess of 10% of gross accounts receivable as follows: | |||||||||||||||||
Customer | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
A | 34 | % | 11 | % | |||||||||||||
B | 30 | % | 42 | % | |||||||||||||
C | 8 | % | 18 | % | |||||||||||||
Revenues from customers by geographic area based on the location of the customers’ work sites are as follows (in thousands): | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Asia | 11,752 | 5,309 | 28,159 | 16,642 | |||||||||||||
United States | 7,685 | 10,877 | 28,367 | 26,437 | |||||||||||||
Europe | 6,052 | 6,365 | 17,849 | 22,646 | |||||||||||||
Total | $ | 25,489 | $ | 22,551 | $ | 74,375 | $ | 65,725 | |||||||||
Long-lived assets, net by geographic area are as follows (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
United States | $ | 5,773 | $ | 3,527 | |||||||||||||
Asia | 367 | 295 | |||||||||||||||
Europe | 125 | 76 | |||||||||||||||
Total long-lived assets, net | $ | 6, 265 | $ | 3,898 | |||||||||||||
Note_9_Fair_Value_Measurements
Note 9 - Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
9. FAIR VALUE MEASUREMENTS | |||||||||||||||||
Fair value is the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The multiple assumptions used to value financial instruments are referred to as inputs, and a hierarchy for inputs used in measuring fair value is established, that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. These inputs are ranked according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. | |||||||||||||||||
Level 1 - | Inputs are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 - | Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. | ||||||||||||||||
Level 3 - | Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. | ||||||||||||||||
The following table represents the Company’s assets measured at fair value on a recurring basis as of September 30, 2013 and the basis for that measurement (in thousands): | |||||||||||||||||
Assets | Total | Quoted Prices | Significant | Significant | |||||||||||||
in | Other | Unobservable | |||||||||||||||
Active Markets | Observable | Inputs | |||||||||||||||
for | Inputs | (Level 3) | |||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market mutual funds | $ | 26,352 | $ | 26,352 | $ | — | $ | — | |||||||||
The following table represents the Company’s assets measured at fair value on a recurring basis as of December 31, 2012 and the basis for that measurement (in thousands): | |||||||||||||||||
Assets | Total | Quoted Prices | Significant | Significant | |||||||||||||
in | Other | Unobservable | |||||||||||||||
Active Markets | Observable | Inputs | |||||||||||||||
for | Inputs | (Level 3) | |||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market mutual funds | $ | 26,341 | $ | 26,341 | $ | — | $ | — | |||||||||
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
10. COMMITMENTS AND CONTINGENCIES | |||||
Leases | |||||
The Company leases administrative and sales offices and certain equipment under noncancelable operating leases, which contain various renewal options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various times through 2018. Rent expense was $0.5 million for both the three months ended September 30, 2013 and 2012, respectively. Rent expense was $1.5 million and $1.7 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||
Future minimum lease payments under noncancelable operating leases at September 30, 2013 are as follows (in thousands): | |||||
Year Ending December 31, | Amount | ||||
2013 (remaining three months) | $ | 446 | |||
2014 | 1,655 | ||||
2015 | 1,571 | ||||
2016 | 1,574 | ||||
2017 | 1,294 | ||||
Thereafter | 695 | ||||
Total future minimum lease payments | $ | 7,235 | |||
Litigation — From time to time, the Company is subject to various claims and legal proceedings that arise in the ordinary course of business. The Company accrues for losses related to litigation when a potential loss is probable and the loss can be reasonably estimated in accordance with FASB requirements. During the reported period, the Company was not party to any material legal proceedings, thus no loss was probable and no amount was accrued at September 30, 2013. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (“the Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The interim unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary (consisting only of normal recurring adjustments), to present a fair statement of results for the interim periods presented. The operating results for any interim period are not necessarily indicative of the results that may be expected for other interim periods or the full fiscal year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all significant intercompany balances and transactions. | |
The condensed consolidated balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include stock-based compensation expense, allowances for doubtful accounts receivable, estimates for useful lives associated with long-lived assets, restructuring charges, fair value of financial instruments and income taxes and tax valuation allowances. Actual results could differ from those estimates. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition — The Company derives revenue from two sources: Design-to-silicon-yield solutions and Gainshare performance incentives. | |
Design-to-Silicon-Yield Solutions — Revenue that is derived from Design-to-silicon-yield solutions comes from services and software licenses. The Company recognizes revenue of Design-to-silicon-yield solutions as follows: | |
The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. These contracts require reliable estimation of costs to perform obligations and the overall scope of each engagement. Revenue under project–based contracts for solution implementation services is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting. Losses on fixed-price solution implementation contracts are recognized in the period when they become probable. Revisions in profit estimates are reflected in the period in which the conditions that require the revisions become known and can be estimated. Revenue under time and materials contracts for solution implementation services are recognized as the services are performed. On occasion, the Company licenses its software products as a component of its fixed-price service contracts. In such instances, the software products are licensed to customers over a specified term of the agreement with support and maintenance to be provided at each customer's option over the license term. The amount of product and service revenue recognized in a given period is affected by the Company’s judgment as to whether an arrangement includes multiple deliverables and, if so, the Company’s determination of the fair value of each deliverable. In general, vendor-specific objective evidence of selling price (“VSOE”) does not exist for the Company’s solution implementation services and software products and because the Company’s services and products include our unique technology, the Company is not able to determine third-party evidence of selling price (“TPE”). Therefore, in such circumstances the Company uses best estimated selling prices (“BESP”) in the allocation of arrangement consideration. In determining BESP, the Company applies significant judgment as the Company’s weighs a variety of factors, based on the facts and circumstances of the arrangement. The Company typically arrives at BESP for a product or service that is not sold separately by considering company-specific factors such as geographies, internal costs, gross margin objectives, pricing practices used to establish bundled pricing, and existing portfolio pricing and discounting. After fair value is established for each deliverable, the total transaction amount is allocated to each deliverable based upon its relative fair value. Fees allocated to solution implementation services are recognized using the cost-to-cost percentage of completion method of contract accounting. Fees allocated to software and related support and maintenance are recognized under software revenue recognition guidance. | |
The Company also licenses its software products separately from its solution implementations. For software license arrangements that do not require significant modification or customization of the underlying software, software license revenue is recognized under the residual method when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable, (4) collectability is probable, and (5) the arrangement does not require services that are essential to the functionality of the software. When arrangements include multiple elements such as support and maintenance, consulting (other than for its fixed price solution implementations), installation, and training, revenue is allocated to each element of a transaction based upon its fair value as determined by the Company’s VSOE and such services are recorded as services revenue. VSOE for maintenance is generally established based upon negotiated renewal rates while VSOE for consulting, installation, and training services is established based upon the Company’s customary pricing for such services when sold separately. Revenue for software licenses with extended payment terms is not recognized in excess of amounts due. For software license arrangements that require significant modification or customization of the underlying software, the software license revenue is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting, and such revenue is recorded as services revenue. |
Note_3_Balance_Sheet_Component1
Note 3 - Balance Sheet Components (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property and equipment, net: | |||||||||
Computer equipment | $ | 10,964 | $ | 10,319 | |||||
Software | 3,633 | 3,552 | |||||||
Furniture, fixtures and equipment | 935 | 971 | |||||||
Leasehold improvements | 1,045 | 1,021 | |||||||
Test equipment | 4,555 | 2,005 | |||||||
Construction-in-progress | 821 | 864 | |||||||
21,953 | 18,732 | ||||||||
Less: accumulated depreciation | (15,688 | ) | (14,834 | ) | |||||
Total | $ | 6,265 | $ | 3,898 |
Note_4_Stockholders_Equity_Tab
Note 4 - Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of design-to-silicon yield-solutions | $ | 812 | $ | 513 | $ | 1,995 | $ | 1,264 | |||||||||
Research and development | 484 | 288 | 1,143 | 726 | |||||||||||||
Selling, general and administrative | 628 | 452 | 1,804 | 1,486 | |||||||||||||
Stock-based compensation expenses | $ | 1,924 | $ | 1,253 | $ | 4,942 | $ | 3,476 | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expected life (in years) | 4.78 | 4.58 | 4.78 | 4.82 | |||||||||||||
Volatility | 50.3 | % | 57.42 | % | 55.83 | % | 59.41 | % | |||||||||
Risk-free interest rate | 1.31 | % | 0.66 | % | 0.94 | % | 0.77 | % | |||||||||
Expected dividend | — | — | — | — | |||||||||||||
Weighted average fair value per share of options granted during the period | $ | 9.13 | $ | 4.77 | $ | 7.55 | $ | 4.26 | |||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expected life (in years) | 1.25 | 1.25 | 1.25 | 1.25 | |||||||||||||
Volatility | 41.21 | % | 51.92 | % | 45.29 | % | 51.59 | % | |||||||||
Risk-free interest rate | 0.2 | % | 0.19 | % | 0.19 | % | 0.18 | % | |||||||||
Expected dividend | — | — | — | — | |||||||||||||
Weighted average fair of purchase rights granted during the period | $ | 6.95 | $ | 3.46 | $ | 5.56 | $ | 2.99 | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
(in | Exercise | Remaining | Value | ||||||||||||||
thousands) | Price | Contractual | (in | ||||||||||||||
per Share | Term | thousands) | |||||||||||||||
(years) | |||||||||||||||||
Outstanding, January 1, 2013 | 3,810 | $ | 6.91 | ||||||||||||||
Granted | 65 | $ | 16.07 | ||||||||||||||
Exercised | (682 | ) | $ | 6.22 | |||||||||||||
Canceled | (92 | ) | $ | 8.51 | |||||||||||||
Expired | (18 | ) | $ | 5.97 | |||||||||||||
Outstanding, September 30, 2013 | 3,083 | $ | 7.21 | 6.81 | $ | 43,248 | |||||||||||
Vested and expected to vest, September 30, 2013 | 2,942 | $ | 7.14 | 6.73 | $ | 41,451 | |||||||||||
Exercisable, September 30, 2013 | 1,859 | $ | 6.65 | 5.85 | $ | 27,108 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
Shares | Weighted | ||||||||||||||||
(in thousands) | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value Per | |||||||||||||||||
Share | |||||||||||||||||
Nonvested, January 1, 2013 | 450 | $ | 7.97 | ||||||||||||||
Granted | 550 | $ | 18.15 | ||||||||||||||
Vested | (90 | ) | $ | 8.87 | |||||||||||||
Forfeited | (22 | ) | $ | 8.72 | |||||||||||||
Nonvested, September 30, 2013 | 888 | $ | 14.06 |
Note_5_Restructuring_Tables
Note 5 - Restructuring (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
October 2012 Plan [Member] | ' | ||||||||||||||||
Note 5 - Restructuring (Tables) [Line Items] | ' | ||||||||||||||||
Restructuring and Related Costs [Table Text Block] | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||
Beginning balance | $ | 66 | $ | 896 | |||||||||||||
Restructuring charges (credits) | 8 | 67 | |||||||||||||||
Cash payments | (25 | ) | (914 | ) | |||||||||||||
Ending balance | $ | 49 | $ | 49 | |||||||||||||
October 2008 Plan [Member] | ' | ||||||||||||||||
Note 5 - Restructuring (Tables) [Line Items] | ' | ||||||||||||||||
Restructuring and Related Costs [Table Text Block] | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 105 | $ | 697 | $ | 448 | $ | 728 | |||||||||
Restructuring charges (credits) | — | — | (102 | ) | 83 | ||||||||||||
Adjustments | — | 4 | 3 | 170 | |||||||||||||
Cash payments | (105 | ) | (134 | ) | (349 | ) | (414 | ) | |||||||||
Ending balance | $ | — | $ | 567 | $ | — | $ | 567 |
Note_7_Net_Income_Per_Share_Ta
Note 7 - Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 4,824 | $ | 4,993 | $ | 14,107 | $ | 13,312 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average common shares outstanding | 30,000 | 28,720 | 29,668 | 28,555 | |||||||||||||
Dilutive effect of equity incentive plans | 1,623 | 1,460 | 1,530 | 1,041 | |||||||||||||
Diluted weighted average common shares outstanding | 31,623 | 30,180 | 31,198 | 29,596 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.16 | $ | 0.17 | $ | 0.48 | $ | 0.47 | |||||||||
Diluted | $ | 0.15 | $ | 0.17 | $ | 0.45 | $ | 0.45 | |||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Outstanding options | 60 | 1,229 | 48 | 1,633 | |||||||||||||
Nonvested restricted stock units | — | 9 | 1 | 24 | |||||||||||||
Total | 60 | 1,238 | 49 | 1,657 |
Note_8_Customer_and_Geographic1
Note 8 - Customer and Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
Customer | 2013 | 2012 | 2013 | 2012 | |||||||||||||
A | 35 | % | 11 | % | 26 | % | 12 | % | |||||||||
B | 28 | % | 35 | % | 31 | % | 39 | % | |||||||||
C | 13 | % | 25 | % | 17 | % | 21 | % | |||||||||
Disclosure on Geographic Areas, Long-Lived Assets | ' | ||||||||||||||||
Customer | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
A | 34 | % | 11 | % | |||||||||||||
B | 30 | % | 42 | % | |||||||||||||
C | 8 | % | 18 | % | |||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Asia | 11,752 | 5,309 | 28,159 | 16,642 | |||||||||||||
United States | 7,685 | 10,877 | 28,367 | 26,437 | |||||||||||||
Europe | 6,052 | 6,365 | 17,849 | 22,646 | |||||||||||||
Total | $ | 25,489 | $ | 22,551 | $ | 74,375 | $ | 65,725 | |||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
United States | $ | 5,773 | $ | 3,527 | |||||||||||||
Asia | 367 | 295 | |||||||||||||||
Europe | 125 | 76 | |||||||||||||||
Total long-lived assets, net | $ | 6, 265 | $ | 3,898 |
Note_9_Fair_Value_Measurements1
Note 9 - Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
Assets | Total | Quoted Prices | Significant | Significant | |||||||||||||
in | Other | Unobservable | |||||||||||||||
Active Markets | Observable | Inputs | |||||||||||||||
for | Inputs | (Level 3) | |||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market mutual funds | $ | 26,352 | $ | 26,352 | $ | — | $ | — | |||||||||
Assets | Total | Quoted Prices | Significant | Significant | |||||||||||||
in | Other | Unobservable | |||||||||||||||
Active Markets | Observable | Inputs | |||||||||||||||
for | Inputs | (Level 3) | |||||||||||||||
Identical Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market mutual funds | $ | 26,341 | $ | 26,341 | $ | — | $ | — |
Note_10_Commitments_and_Contin1
Note 10 - Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Year Ending December 31, | Amount | ||||
2013 (remaining three months) | $ | 446 | |||
2014 | 1,655 | ||||
2015 | 1,571 | ||||
2016 | 1,574 | ||||
2017 | 1,294 | ||||
Thereafter | 695 | ||||
Total future minimum lease payments | $ | 7,235 |
Note_3_Balance_Sheet_Component2
Note 3 - Balance Sheet Components (Details) (USD $) | 3 Months Ended | 9 Months Ended | 21 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' | ' | ' | ' |
Unbilled Receivables, Current | $7,500,000 | ' | $7,500,000 | ' | $7,500,000 | $7,700,000 |
Depreciation, Depletion and Amortization, Nonproduction | 400,000 | 100,000 | 1,000,000 | 300,000 | ' | ' |
Intangible Assets, Net (Excluding Goodwill) | 49,000 | ' | 49,000 | ' | 49,000 | 104,000 |
Amortization of Intangible Assets | 19,000 | 51,000 | 56,000 | 413,000 | 414,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 18,000 | ' | 18,000 | ' | 18,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $31,000 | ' | $31,000 | ' | $31,000 | ' |
Note_3_Balance_Sheet_Component3
Note 3 - Balance Sheet Components (Details) - Property and Equipment (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property and Equipment [Abstract] | ' | ' |
Computer equipment | $10,964 | $10,319 |
Software | 3,633 | 3,552 |
Furniture, fixtures and equipment | 935 | 971 |
Leasehold improvements | 1,045 | 1,021 |
Test equipment | 4,555 | 2,005 |
Construction-in-progress | 821 | 864 |
21,953 | 18,732 | |
Less: accumulated depreciation | -15,688 | -14,834 |
Total | $6,265 | $3,898 |
Note_4_Stockholders_Equity_Det
Note 4 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 25 Months Ended | 22 Months Ended | ||||||||||||
Nov. 08, 2012 | 28-May-13 | Oct. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Nov. 16, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 29, 2007 | Oct. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | 2011 Stock Incentive Plan [Member] | IDS Plan [Member] | Employee Stock Option [Member] | Restricted Stock [Member] | Employee Stock Purchase Plan [Member] | Stock Repurchase Program [Member] | Stock Repurchase Program [Member] | 2001 Stock Incentive Plan [Member] | Shares Previously Issued Under the 2001 Plan [Member] | ||||||||||
Note 4 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | 4,800,000 | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 |
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate | ' | ' | ' | ' | ' | 1.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Expiration Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | ' | ' | 5,200,000 | ' | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | 2,700,000 | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | ' | ' | ' | ' | ' | 92,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' |
Share Price (in Dollars per share) | ' | ' | ' | $21.23 | ' | $21.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,600,000 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 80 days | '3 years | '1 year 146 days | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (in Dollars) | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,400,000 | 700,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ESPP Maximum Annual Share Replenishment | ' | ' | ' | ' | ' | 675,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ESPP Maximum Annual Share Replenishment Percentage Of Prior Year Outstanding Company Common Stock | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | ' | ' | ' | 80,000 | 104,000 | 184,000 | 202,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Stock Purchase Plan Weighted Average Purchase Price Of Shares Purchased (in Dollars per share) | ' | ' | ' | $9.66 | $4.89 | $7.16 | $4.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | ' | ' | ' | ' | ' | 4,942,000 | 3,476,000 | ' | ' | 100,000 | 100,000 | 500,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of ESPP Shares Available For Future Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount (in Dollars) | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount (in Dollars) | ' | ' | ' | ' | ' | 19,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,300,000 | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | 3,800,000 | ' | ' | 36,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | ' | ' | $4.53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, Value, Acquired, Cost Method (in Dollars) | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchsed During Period Average Per Share Price (in Dollars per share) | ' | ' | ' | ' | ' | $13.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Value (in Dollars) | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_4_Stockholders_Equity_Det1
Note 4 - Stockholders' Equity (Details) - Allocation of Recognized Period Costs (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocation of Recognized Period Costs | $1,924 | $1,253 | $4,942 | $3,476 |
Cost of Sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocation of Recognized Period Costs | 812 | 513 | 1,995 | 1,264 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocation of Recognized Period Costs | 484 | 288 | 1,143 | 726 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocation of Recognized Period Costs | $628 | $452 | $1,804 | $1,486 |
Note_4_Stockholders_Equity_Det2
Note 4 - Stockholders' Equity (Details) - Stock Options, Valuation Assumptions (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 4 - Stockholders' Equity (Details) - Stock Options, Valuation Assumptions [Line Items] | ' | ' | ' | ' |
Expected life (in years) | ' | ' | '1 year 3 months | '1 year 3 months |
Volatility | ' | ' | 45.29% | 51.59% |
Risk-free interest rate | ' | ' | 0.19% | 0.18% |
Weighted average fair value per share of options granted during the period (in Dollars per share) | ' | ' | $5.56 | $2.99 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Note 4 - Stockholders' Equity (Details) - Stock Options, Valuation Assumptions [Line Items] | ' | ' | ' | ' |
Expected life (in years) | '4 years 284 days | '4 years 211 days | '4 years 284 days | '4 years 299 days |
Volatility | 50.30% | 57.42% | 55.83% | 59.41% |
Risk-free interest rate | 1.31% | 0.66% | 0.94% | 0.77% |
Expected dividend | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted average fair value per share of options granted during the period (in Dollars per share) | $9.13 | $4.77 | $7.55 | $4.26 |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Note 4 - Stockholders' Equity (Details) - Stock Options, Valuation Assumptions [Line Items] | ' | ' | ' | ' |
Expected life (in years) | '1 year 3 months | '1 year 3 months | ' | ' |
Volatility | 41.21% | 51.92% | ' | ' |
Risk-free interest rate | 0.20% | 0.19% | ' | ' |
Expected dividend | 0.00% | 0.00% | ' | ' |
Weighted average fair value per share of options granted during the period (in Dollars per share) | $6.95 | $3.46 | ' | ' |
Note_4_Stockholders_Equity_Det3
Note 4 - Stockholders' Equity (Details) - Stock Options Activity (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Stock Options Activity [Abstract] | ' |
Outstanding - Number of Options | 3,810 |
Outstanding - Weighted Average Exercise Price per Share (in Dollars per share) | $6.91 |
Outstanding - Weighted Average Remaining Contractual Term | '6 years 295 days |
Vested and expected to vest, September 30, 2013 | 2,942 |
Vested and expected to vest, September 30, 2013 (in Dollars per share) | $7.14 |
Vested and expected to vest, September 30, 2013 | '6 years 266 days |
Vested and expected to vest, September 30, 2013 (in Dollars) | $41,451 |
Exercisable, September 30, 2013 | 1,859 |
Exercisable, September 30, 2013 (in Dollars per share) | $6.65 |
Exercisable, September 30, 2013 | '5 years 310 days |
Exercisable, September 30, 2013 (in Dollars) | 27,108 |
Expired | -18 |
Expired (in Dollars per share) | $5.97 |
Granted | 65 |
Granted (in Dollars per share) | $16.07 |
Exercised | -682 |
Exercised (in Dollars per share) | $6.22 |
Canceled | -92 |
Canceled (in Dollars per share) | $8.51 |
Outstanding - Number of Options | 3,083 |
Outstanding - Weighted Average Exercise Price per Share (in Dollars per share) | $7.21 |
Outstanding - Aggregate Intrinsic Value (in Dollars) | $43,248 |
Note_4_Stockholders_Equity_Det4
Note 4 - Stockholders' Equity (Details) - Nonvested Restricted Stock Units Activity (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Nonvested Restricted Stock Units Activity [Abstract] | ' |
Nonvested Balance, Shares | 450 |
Nonvested Balance, Weighted-Average Grant-Date Fair Value (in Dollars per share) | $7.97 |
Granted | 550 |
Granted (in Dollars per share) | $18.15 |
Vested | -90 |
Vested (in Dollars per share) | $8.87 |
Forfeited | -22 |
Forfeited (in Dollars per share) | $8.72 |
Nonvested Balance, Shares | 888 |
Nonvested Balance, Weighted-Average Grant-Date Fair Value (in Dollars per share) | $14.06 |
Note_5_Restructuring_Details
Note 5 - Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 60 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
Employee Severance [Member] | Employee Severance [Member] | Facility Closing [Member] | October 2012 Plan [Member] | October 2012 Plan [Member] | October 2012 Plan [Member] | October 2012 Plan [Member] | October 2012 Plan [Member] | October 2008 Plan [Member] | October 2008 Plan [Member] | October 2008 Plan [Member] | October 2008 Plan [Member] | October 2008 Plan [Member] | October 2008 Plan [Member] | October 2008 Plan [Member] | |||||
October 2012 Plan [Member] | October 2008 Plan [Member] | October 2008 Plan [Member] | |||||||||||||||||
Note 5 - Restructuring (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges | $8,000 | $0 | ($35,000) | $83,000 | ' | ' | ' | $8,000 | $67,000 | ' | ' | ' | $102,000 | ($83,000) | ' | ' | ' | ' | ' |
Restructuring Reserve | 49,000 | ' | 49,000 | ' | ' | ' | ' | 49,000 | 49,000 | 49,000 | 66,000 | 896,000 | ' | 567,000 | ' | 105,000 | 448,000 | 697,000 | 728,000 |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | ' | ' | $1,700,000 | $4,700,000 | $2,700,000 | ' | ' | $1,800,000 | ' | ' | ' | ' | $7,400,000 | ' | ' | ' | ' |
Note_5_Restructuring_Details_S
Note 5 - Restructuring (Details) - Summary of Restructuring Liabilities (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Ending balance | $49,000 | ' | $49,000 | ' |
Restructuring charges (credits) | 8,000 | 0 | -35,000 | 83,000 |
October 2012 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Beginning balance | 66,000 | ' | 896,000 | ' |
Ending balance | 49,000 | ' | 49,000 | ' |
Restructuring charges (credits) | 8,000 | ' | 67,000 | ' |
Cash payments | ($25,000) | ' | ($914,000) | ' |
Note_5_Restructuring_Details_S1
Note 5 - Restructuring (Details) - Summary of Restructuring Liabilities (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges (credits) | ($8,000) | $0 | $35,000 | ($83,000) |
Ending balance | 49,000 | ' | 49,000 | ' |
October 2008 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Beginning balance | 105,000 | 697,000 | 448,000 | 728,000 |
Restructuring charges (credits) | ' | ' | -102,000 | 83,000 |
Adjustments | ' | 4,000 | 3,000 | 170,000 |
Cash payments | -105,000 | -134,000 | -349,000 | -414,000 |
Ending balance | ' | $567,000 | ' | $567,000 |
Note_6_Income_Taxes_Details
Note 6 - Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income Tax Expense Benefit Period Increase Decrease | ' | ' | $6,100,000 | ' | ' |
Income Tax Expense (Benefit) | 2,640,000 | 170,000 | 7,279,000 | 1,147,000 | ' |
Effective Income Tax Rate Reconciliation, Percent | ' | ' | ' | 7.93% | ' |
Unrecognized Tax Benefits | 9,600,000 | ' | 9,600,000 | ' | 9,600,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 5,900,000 | ' | 5,900,000 | ' | 6,000,000 |
Unrecognized Tax Benefits In Long Term Liabilities | 2,900,000 | ' | 2,900,000 | ' | ' |
Unrecognized Tax Benefits In Deferred Tax Assets | 7,200,000 | ' | 7,200,000 | ' | ' |
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance | $3,700,000 | ' | $3,700,000 | ' | ' |
Note_7_Net_Income_Per_Share_De
Note 7 - Net Income Per Share (Details) - Calculation of Earnings Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Calculation of Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (in Dollars) | $4,824 | $4,993 | $14,107 | $13,312 |
Basic weighted average common shares outstanding | 30,000 | 28,720 | 29,668 | 28,555 |
Dilutive effect of equity incentive plans | 1,623 | 1,460 | 1,530 | 1,041 |
Diluted weighted average common shares outstanding | 31,623 | 30,180 | 31,198 | 29,596 |
Net income per share: | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.16 | $0.17 | $0.48 | $0.47 |
Diluted (in Dollars per share) | $0.15 | $0.17 | $0.45 | $0.45 |
Note_7_Net_Income_Per_Share_De1
Note 7 - Net Income Per Share (Details) - Antidilutive Securities | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities | 60 | 1,238 | 49 | 1,657 |
Equity Option [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities | 60 | 1,229 | 48 | 1,633 |
Restricted Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities | ' | 9 | 1 | 24 |
Note_8_Customer_and_Geographic2
Note 8 - Customer and Geographic Information (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Note 8 - Customer and Geographic Information (Details) [Line Items] | ' |
Number of Operating Segments | 1 |
Customer Concentration Risk [Member] | ' |
Note 8 - Customer and Geographic Information (Details) [Line Items] | ' |
Concentration Risk, Percentage | 10.00% |
Accounts Receivable [Member] | ' |
Note 8 - Customer and Geographic Information (Details) [Line Items] | ' |
Concentration Risk, Percentage | 10.00% |
Note_8_Customer_and_Geographic3
Note 8 - Customer and Geographic Information (Details) - Revenue Percentage by Major Customers | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Customer A [Member] | ' | ' | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Revenue Percentage by Major Customers [Line Items] | ' | ' | ' | ' |
Revenue Percentage by Major Customers | 35.00% | 11.00% | 26.00% | 12.00% |
Customer B [Member] | ' | ' | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Revenue Percentage by Major Customers [Line Items] | ' | ' | ' | ' |
Revenue Percentage by Major Customers | 28.00% | 35.00% | 31.00% | 39.00% |
Customer C [Member] | ' | ' | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Revenue Percentage by Major Customers [Line Items] | ' | ' | ' | ' |
Revenue Percentage by Major Customers | 13.00% | 25.00% | 17.00% | 21.00% |
Note_8_Customer_and_Geographic4
Note 8 - Customer and Geographic Information (Details) - Receivables Percentage by Major Customers | Sep. 30, 2013 | Dec. 31, 2012 |
Customer A [Member] | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Receivables Percentage by Major Customers [Line Items] | ' | ' |
Accounts Receivable Percentage by Major Customers | 34.00% | 11.00% |
Customer B [Member] | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Receivables Percentage by Major Customers [Line Items] | ' | ' |
Accounts Receivable Percentage by Major Customers | 30.00% | 42.00% |
Customer C [Member] | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Receivables Percentage by Major Customers [Line Items] | ' | ' |
Accounts Receivable Percentage by Major Customers | 8.00% | 18.00% |
Note_8_Customer_and_Geographic5
Note 8 - Customer and Geographic Information (Details) - Revenue by Geographical Areas (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 8 - Customer and Geographic Information (Details) - Revenue by Geographical Areas [Line Items] | ' | ' | ' | ' |
$25,489 | $22,551 | $74,375 | $65,725 | |
Asia [Member] | ' | ' | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Revenue by Geographical Areas [Line Items] | ' | ' | ' | ' |
11,752 | 5,309 | 28,159 | 16,642 | |
United States [Member] | ' | ' | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Revenue by Geographical Areas [Line Items] | ' | ' | ' | ' |
7,685 | 10,877 | 28,367 | 26,437 | |
Europe [Member] | ' | ' | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Revenue by Geographical Areas [Line Items] | ' | ' | ' | ' |
$6,052 | $6,365 | $17,849 | $22,646 |
Note_8_Customer_and_Geographic6
Note 8 - Customer and Geographic Information (Details) - Long-lived Assets, by Geographical Areas (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 8 - Customer and Geographic Information (Details) - Long-lived Assets, by Geographical Areas [Line Items] | ' | ' |
Long-lived assets net, by geographical areas | $6,265 | $3,898 |
United States [Member] | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Long-lived Assets, by Geographical Areas [Line Items] | ' | ' |
Long-lived assets net, by geographical areas | 5,773 | 3,527 |
Asia [Member] | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Long-lived Assets, by Geographical Areas [Line Items] | ' | ' |
Long-lived assets net, by geographical areas | 367 | 295 |
Europe [Member] | ' | ' |
Note 8 - Customer and Geographic Information (Details) - Long-lived Assets, by Geographical Areas [Line Items] | ' | ' |
Long-lived assets net, by geographical areas | $125 | $76 |
Note_9_Fair_Value_Measurements2
Note 9 - Fair Value Measurements (Details) - Fair Value, Assets Measured on Recurring Basis (Money Market Mutual Funds [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 9 - Fair Value Measurements (Details) - Fair Value, Assets Measured on Recurring Basis [Line Items] | ' | ' |
Assets at fair value | $26,352 | $26,341 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Note 9 - Fair Value Measurements (Details) - Fair Value, Assets Measured on Recurring Basis [Line Items] | ' | ' |
Assets at fair value | $26,352 | $26,341 |
Note_10_Commitments_and_Contin2
Note 10 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | $0.50 | $0.50 | $1.50 | $1.70 |
Note_10_Commitments_and_Contin3
Note 10 - Commitments and Contingencies (Details) - Future Minimum Lease Payments Under Noncancelable Operating Leases (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Future Minimum Lease Payments Under Noncancelable Operating Leases [Abstract] | ' |
2013 (remaining three months) | $446 |
2014 | 1,655 |
2015 | 1,571 |
2016 | 1,574 |
2017 | 1,294 |
Thereafter | 695 |
Total future minimum lease payments | $7,235 |