Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Entity Registrant Name | PDF SOLUTIONS INC | |
Entity Central Index Key | 1,120,914 | |
Trading Symbol | pdfs | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 31,431,012 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 126,259,000 | $ 115,464,000 |
Accounts receivable, net of allowance of $299 and $381, respectively | 31,550,000 | 37,725,000 |
Deferred tax assets - current portion | 2,805,000 | 3,343,000 |
Prepaid expenses and other current assets | 4,727,000 | 2,888,000 |
Total current assets | 165,341,000 | 159,420,000 |
Property and equipment, net | 11,362,000 | 8,832,000 |
Deferred tax assets - non-current portion | 7,174,000 | 8,025,000 |
Goodwill | 470,000 | 0 |
Intangible assets, net | 4,831,000 | 0 |
Other non-current assets | 2,882,000 | 1,161,000 |
Total assets | 192,060,000 | 177,438,000 |
Current liabilities: | ||
Accounts payable | 1,453,000 | 803,000 |
Accrued compensation and related benefits | 4,257,000 | 6,112,000 |
Accrued and other current liabilities | 2,928,000 | 1,733,000 |
Deferred revenues – current portion | 5,024,000 | $ 3,740,000 |
Billings in excess of recognized revenue | 149,000 | |
Total current liabilities | 13,811,000 | $ 12,388,000 |
Non-current liabilities | 2,971,000 | 3,227,000 |
Total liabilities | $ 16,782,000 | $ 15,615,000 |
Commitments and contingencies (Note 9) | ||
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 37,230 and 36,258, respectively; shares outstanding 31,387 and 31,116, respectively | 5,000 | 5,000 |
Additional paid-in-capital | 263,905,000 | 248,734,000 |
Treasury stock at cost, 5,843 and 5,142 shares, respectively | (44,718,000) | (34,048,000) |
Accumulated deficit | (42,577,000) | (52,187,000) |
Accumulated other comprehensive loss | (1,337,000) | (681,000) |
Total stockholders’ equity | 175,278,000 | 161,823,000 |
Total liabilities and stockholders’ equity | $ 192,060,000 | $ 177,438,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance | $ 299 | $ 381 |
Preferred stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 37,230,000 | 36,258,000 |
Common stock, shares outstanding (in shares) | 31,387,000 | 31,116,000 |
Treasury stock shares (in shares) | 5,843,000 | 5,142,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Design-to-silicon-yield solutions | $ 17,246 | $ 10,860 | $ 49,557 | $ 38,871 |
Gainshare performance incentives | 6,632 | 11,546 | 24,348 | 35,231 |
Total revenues | 23,878 | 22,406 | 73,905 | 74,102 |
Costs of Design-to-silicon-yield solutions: | ||||
Direct costs of Design-to-silicon-yield solutions | $ 10,172 | 9,722 | $ 28,863 | 28,273 |
Impairment of deferred costs | $ 1,892 | $ 1,892 | ||
Amortization of acquired technology | $ 80 | $ 80 | ||
Total costs of Design-to-silicon-yield solutions | 10,252 | $ 11,614 | 28,943 | $ 30,165 |
Gross profit | 13,626 | 10,792 | 44,962 | 43,937 |
Operating expenses: | ||||
Research and development | 5,173 | 3,349 | 13,698 | 10,282 |
Selling, general and administrative | 5,665 | $ 4,498 | 15,336 | 13,487 |
Amortization of other acquired intangible assets | $ 89 | $ 89 | 31 | |
Restructuring charges | 57 | |||
Total operating expenses | $ 10,927 | $ 7,847 | $ 29,123 | 23,857 |
Income from operations | 2,699 | 2,945 | 15,839 | 20,080 |
Interest and other income (expense), net | 64 | 33 | 166 | (82) |
Income before income taxes | 2,763 | 2,978 | 16,005 | 19,998 |
Income tax provision | 1,269 | 1,217 | 6,395 | 7,287 |
Net income | $ 1,494 | $ 1,761 | $ 9,610 | $ 12,711 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.05 | $ 0.06 | $ 0.31 | $ 0.41 |
Diluted (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.30 | $ 0.40 |
Weighted average common shares: | ||||
Basic (in shares) | 31,516 | 30,876 | 31,458 | 30,648 |
Diluted (in shares) | 32,106 | 32,079 | 32,266 | 31,975 |
Net income | $ 1,494 | $ 1,761 | $ 9,610 | $ 12,711 |
Other comprehensive income: | ||||
Foreign currency translation adjustments, net of tax | (54) | (542) | (656) | (683) |
Comprehensive income | $ 1,440 | $ 1,219 | $ 8,954 | $ 12,028 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net income | $ 9,610,000 | $ 12,711,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,919,000 | 1,459,000 |
Stock-based compensation expense | 7,118,000 | $ 6,259,000 |
Accrued contingent earn-out payments | $ 475,000 | |
Impairment of deferred costs | $ 1,892,000 | |
Amortization of acquired intangible assets | $ 169,000 | 31,000 |
Deferred taxes | 1,623,000 | 2,985,000 |
Loss (gain) on disposal of property and equipment | 3,000 | (93,000) |
Tax withholdings related to net share settlements of restricted stock awards and units | (1,057,000) | (855,000) |
Reversal of allowance for doubtful accounts | (82,000) | (81,000) |
Unrealized loss (gain) on foreign currency forward contract | (4,000) | 41,000 |
Tax benefit related to stock-based compensation expense | 1,756,000 | 1,235,000 |
Excess tax benefit from stock-based compensation | (1,661,000) | (1,154,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,261,000 | 7,877,000 |
Prepaid expenses and other assets | (3,378,000) | (1,132,000) |
Accounts payable | (287,000) | (768,000) |
Accrued compensation and related benefits | (1,946,000) | (2,413,000) |
Accrued and other liabilities | 609,000 | (334,000) |
Deferred revenues | 796,000 | 501,000 |
Billings in excess of recognized revenues | 149,000 | (343,000) |
Net cash provided by operating activities | 22,073,000 | 27,818,000 |
Investing activities: | ||
Purchases of property and equipment | $ (4,032,000) | (3,274,000) |
Proceeds from the sales of property and equipment | $ 135,000 | |
Payments for business acquisitions, net of cash acquired | $ (5,152,000) | |
Net cash used in investing activities | (9,184,000) | $ (3,139,000) |
Financing activities: | ||
Payments on long-term obligations assumed in business acquisition | (347,000) | |
Proceeds from exercise of stock options | 4,899,000 | $ 3,062,000 |
Proceeds from employee stock purchase plan | 1,379,000 | 1,437,000 |
Excess tax benefit from stock-based compensation | 1,661,000 | 1,154,000 |
Purchases of treasury stock | (9,613,000) | (3,566,000) |
Net cash provided (used) by financing activities | (2,021,000) | 2,087,000 |
Effect of exchange rate changes on cash and cash equivalents | (73,000) | (16,000) |
Net change in cash and cash equivalents | 10,795,000 | 26,750,000 |
Cash and cash equivalents, beginning of period | 115,464,000 | 89,371,000 |
Cash and cash equivalents, end of period | 126,259,000 | 116,121,000 |
Supplemental disclosure of cash flow information: | ||
Taxes | 4,347,000 | $ 3,322,000 |
Interest | 16,000 | |
Property and equipment received and accrued in accounts payable and accrued and other liabilities | $ 268,000 | $ 170,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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, 2014. 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, 2014, 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 Revenue Recognition 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 defers certain pre-contract costs incurred for specific anticipated contracts. Deferred costs consist primarily of direct costs to provide solution implementation services in relation to the specific anticipated contracts. The Company recognizes such costs as a component of cost of revenues, the timing of which is dependent upon persuasive evidence of contract arrangement assuming all other revenue recognition criteria are met. At the end of reporting period, the Company evaluates its deferred costs for their probable recoverability. The Company recognizes impairment of deferred costs when it is determined that the costs no longer have future benefits and are no longer recoverable. 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 Pron
Note 2 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2 . RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new standard is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), deferring the effective date of ASU 2014-09 by one year. The provision of ASU 2014-09 are effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. We are currently assessing the adoption date and potential impact of adopting ASU 2014-09 on our financial statements and related disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other Internal-Use Software”. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license, and if so, how the software license element of the arrangement should be accounted for by the customer. The new standard is effective for annual period ending after December 15, 2015, and all reporting periods thereafter. The adoption of this standard is not expected to have a material impact on our financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments”. The new standard simplifies how adjustments are made to provisional amounts recognized in a business combination during the measurement period. We are required to adopt ASU 2015-16 on January 1, 2016. We early adopted ASU 2015-16 in September 2015. The effect of early adoption of ASU 2015-16 on our financial position, results of operations, and disclosures is immaterial. |
Note 3 - Business Combinations
Note 3 - Business Combinations | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3 . BUSINESS COMBINATIONS On July 17, 2015, the Company completed its acquisition of Syntricity, Inc. (“Syntricity”), a provider of a hosted solution for characterization and yield management by acquiring all issued and outstanding common shares of Syntricity, pursuant to an Agreement and Plan of Merger dated July 9, 2015 between the Company and Syntricity. The Company believes that the acquisition will expand the overall capabilities of its manufacturing software solutions offerings. The aggregate consideration paid for the acquisition consisted of approximately $5.2 million in cash, net of cash acquired of $112,000. Of the cash consideration paid, $750,000 is being held in escrow to secure indemnification obligations. The Company also agreed to pay earn-out consideration of up to $2.5 million in cash through July 17, 2017, contingent upon the achievement of certain financial and non-financial targets. Out of a total of $2.5 million, $812,000 will be paid to the former shareholders of Syntricity if and when the targets are met. The Company has determined that such contingent consideration requires Level 3 classification, because the liabilities have no public active market or observable inputs. As of the acquisition date and September 30, 2015, the Company has not accrued any additional consideration payable to the former shareholders of Syntricity based on the probability of achievement of the earn-out targets. Additionally, the remaining $1.7 million will be paid to employees and considered as a post combination expense if and when the financial and non- financial targets and service conditions are met. As of September 30, 2015, the Company has recognized $475,000 as a post combination expense in its condensed consolidated statement of operations. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of acquisition. As additional information becomes available, such as finalization of tax related matters, the Company may revise its preliminary purchase price allocation. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill recorded from this acquisition represents business benefits the Company anticipates realizing from optimizing resources and new and expanded opportunities. The goodwill balance is not deductible for U.S. income tax purposes. The Company incurred $588,000 in acquisition-related costs which were recorded in general and administrative expenses for the nine months ended September 30, 2015. The results of operations and the provisional fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the Syntricity acquisition date. Revenues and expenses from Syntricity were not material for the three and nine months ended September 30, 2015. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our financial results. The following table summarizes the preliminary allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: At September 30, 2015: (in thousands) Consideration Cash $ 5,264 Contingent consideration arrangement - Fair value of total consideration transferred $ 5,264 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents 112 Accounts receivable and other assets 208 Deferred tax assets, net 261 Identifiable intangible assets 5,000 Property and equipment 378 Accounts payable and other liabilities (1,165 ) Total identifiable net assets 4,794 Goodwill 470 $ 5,264 Goodwill is not amortized, but the Company will perform an annual impairment assessment of its goodwill during the fourth quarter of each calendar year or more frequently if required to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in the overall industry demand, that would indicate that it would more likely than not reduce the fair value of a reporting unit below its carrying amount, including goodwill. If events or circumstances do not indicate that the fair value of a reporting unit is below its carrying amount, then goodwill is not considered to be impaired and no further testing is required. If further testing is required, the Company performs a two-step process. The first step involves comparing the fair value of its reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step of the test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. For the purpose of impairment testing, the Company has determined that it has one reporting unit. There has been no impairment of goodwill for any periods presented. Intangible assets consist of developed technology, customer relationships, trademarks and order backlog. The values assigned to intangibles are based on estimates and judgments regarding expectations for success and life cycle of intangibles acquired. Acquired intangible assets with definite lives are amortized on a straight-line basis over the remaining estimated economic life of the underlying intangibles. The Company reviews its definite lived long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Recoverability of an asset group is measured by comparing its carrying amount to the expected future undiscounted cash flows that the asset group is expected to generate. If it is determined that an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset group exceeds its fair value. There has been no impairment of long-lived assets for any periods presented. |
Note 4 - Balance Sheet Componen
Note 4 - Balance Sheet Components | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8 4. 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 $11.7 million and $9.7 million as of September 30, 2015, and December 31, 2014, respectively. Property and equipment consists of (in thousands): September 30, 2015 December 31, 2014 Property and equipment, net: Computer equipment $ 8,952 $ 9,817 Software 1,603 3,369 Furniture, fixtures and equipment 827 756 Leasehold improvements 1,131 1,127 Test equipment 7,123 6,401 Construction-in-progress 4,702 2,405 24,338 23,875 Less: accumulated depreciation (12,976 ) (15,043 ) Total $ 11,362 $ 8,832 Depreciation and amortization expense was $0.7 million and $0.5 million for the three months ended September 30, 2015 and 2014, respectively. Depreciation and amortization expense was $1.9 million and $1.5 million for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 and December 31, 2014, the carrying amount of goodwill was $470,000 and zero, respectively. The goodwill balance as of September 30, 2015 was the result of the acquisition of Syntricity. The following is a rollforward of the Company's goodwill balance (in thousands): September 30, 2015 Balance as of December 31, 2014 - Add: Goodwill from acquisition 470 Balance as of September 30, 2015 470 Intangible assets balance was $4.8 million and zero as of September 30, 2015 and December 31, 2014, respectively. The balance as of September 30, 2015 consisted of $5.0 million of intangible assets acquired as a result of the acquisition of Syntricity. Refer to Note 3 “Business Combinations” for additional information. The following tables provide information relating to the intangible assets acquired from the Syntricity acquisition within the Company’s consolidated balance sheet as of September 30, 2015 (in thousands): September 30, 2015 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 9 $ 2,500 $ (58 ) $ 2,442 Developed Technology 6 2,300 (80 ) 2,220 Tradename 2 100 (10 ) 90 Backlog 1 100 (21 ) 79 Total $ 5,000 $ (169 ) $ 4,831 The weighted average amortization period for acquired identifiable intangible assets was 7.16 years as of September 30, 2015. For the three months ended September 30, 2015 and 2014, intangible asset amortization expense was $169,000 and zero, respectively. For the nine months ended September 30, 2015 and 2014, intangible asset amortization expense was $169,000 and $31,000, respectively. The Company expects annual amortization of acquired identifiable intangible assets to be as follows (in thousands): Year Ending December 31, 2015 (remaining 3 months) $ 203 2016 765 2017 688 2018 661 2019 661 Thereafter 1,853 Total future amortization expense $ 4,831 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, 2015, there were no indicators of impairment related to the Company’s intangible assets. Deferred costs balance was zero and $0.1 million as of September 30, 2015 and December 31, 2014, respectively. During the three months ended September 30, 2014, the Company recorded an impairment loss of $1.9 million of deferred pre-contract costs for two contracts with a customer as it was determined that the costs were no longer recoverable. The impairment charges were recorded in the impairment of deferred costs in the accompanying condensed consolidated statements of operations and comprehensive income. |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 5. 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 . Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Cost of Design-to-silicon yield-solutions $ 1,039 $ 947 $ 2,840 $ 2,467 Research and development 617 426 1,618 1,230 Selling, general and administrative 908 853 2,660 2,562 Stock-based compensation expenses $ 2,564 $ 2,226 $ 7,118 $ 6,259 On September 30, 2015, the Company had the following stock-based compensation plans: Stock Plans — 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 the 2001Plan and the IDS Plan 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 plan, as applicable. The Company estimated the fair value of share-based awards granted under the Stock Plan 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: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected life (in years) 4.51 4.58 4.51 4.58 Volatility 45.56 % 44.88 % 45.96 % 43.45 % Risk-free interest rate 1.38 % 1.63 % 1.36 % 1.55 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.48 $ 7.54 $ 5.85 $ 7.44 As of September 30, 2015, 7.0 million shares of common stock were reserved to cover stock-based awards under the 2011 Plan, of which 3.1 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, 2015. As of September 30, 2015, there were no outstanding awards that had been granted outside of the 2011, 2001 or the IDS Plans (collectively, the "Stock Plans"). 10 Stock option activity under the Company’s Stock Plans during the nine months ended September 30, 2015, was as follows: Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2015 2,352 $ 7.65 Granted (weighted average fair value of $5.85 per share) 72 $ 14.84 Exercised (634 ) $ 7.73 Canceled (17 ) $ 12.58 Expired (3 ) $ 12.21 Outstanding, September 30, 2015 1,770 $ 7.86 5.36 $ 5,045 Vested and expected to vest, September 30, 2015 1,756 $ 7.81 5.33 $ 5,042 Exercisable, September 30, 2015 1,514 $ 7.20 4.96 $ 4,856 The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company’s closing stock price of $10 per share as of September 30, 2015. The total intrinsic value of options exercised during the nine months ended September 30, 2015, was $6.1 million. As of September 30, 2015, there was $1.2 million of total unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized over a weighted average period of 1.7 years. The total fair value of shares vested during the nine months ended September 30, 2015, was $1.2 million. Nonvested restricted stock units activity during the nine months ended September 30, 2015, was as follows: Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2015 941 $ 17.38 Granted 699 $ 16.08 Vested (228 ) $ 15.60 Forfeited (32 ) $ 17.46 Nonvested, September 30, 2015 1,380 $ 17.01 As of September 30, 2015, there was $18.6 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 2.8 years. Employee Stock Purchase Plan 11 The Company estimated the fair value of purchase rights granted under the Purchase Plan 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: Nine Months Ended September 30, 2015 2014 Expected life (in years) 1.25 1.25 Volatility 50.12 % 33.46 % Risk-free interest rate 0.34 % 0.21 % Expected dividend — — Weighted average fair value of purchase rights granted under the Purchase Plan $ 5.51 $ 6.44 During the three months ended September 30, 2015 and 2014, a total of 59,000 and 62,000 shares, respectively, were issued at a weighted-average purchase price of $11.91 and $13.06 per share. During the nine months ended September 30, 2015 and 2014, a total of 110,000 and 114,000 shares, respectively, were issued at a weighted-average purchase price of $12.57 and $12.62 per share, respectively, under the Purchase Plan. For the three-month periods ended September 30, 2015 and 2014, the Purchase Plan compensation expense was $0.2 million and $0.1 million, respectively. For the nine-month periods ended September 30, 2015 and 2014, the Purchase Plan compensation expense was both $0.5 million. As of September 30, 2015, there was $1.3 million of unrecognized compensation cost related to the Purchase Plan. That cost is expected to be recognized over a weighted average period of 1.83 years. As of September 30, 2015, 2.8 million shares were available for future issuance under the Purchase Plan. Stock Repurchase Program |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. INCOME TAXES Income tax provision decreased $0.9 million for the nine months ended September 30, 2015, to $6.4 million as compared to an income tax provision of $7.3 million for the nine months ended September 30, 2014. The Company’s effective tax rate was 39.96% and 36.44% for the nine months ended September 30, 2015, and September 30, 2014, respectively. The Company’s effective tax rate increased in the nine months ended September 30, 2015, as compared to the same period in 2014, primarily due to the lower reversals of certain unrecognized tax benefits upon statute of limitation lapses, estimated nondeductible acquisition expenses, and unfavorable changes to New York State Tax apportionment rules. The income tax provision for the nine months ended September 30, 2015 was higher than the provision at the statutory rate primarily due to foreign and state taxes and changes in unrecognized tax benefits. The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of September 30, 2015, was $10.5 million, of which $6.1 million, if recognized, would decrease the Company’s effective tax rate. The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of December 31, 2014, was $10.4 million, of which $6.3 million, if recognized, would affect the Company's effective tax rate. As of September 30, 2015, the Company has recorded unrecognized tax benefits of $2.4 million, including interest and penalties, as long-term taxes payable in its condensed consolidated balance sheet. The remaining $8.5 million has been recorded net of our deferred tax assets, of which $4.4 million is subject to a full valuation allowance. As of September 30, 2015, the Company believes that 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, 2015, 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 State of New York is currently conducting an audit of the Company’s prior income tax returns. 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, 2015 | |
Notes to Financial Statements | |
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 Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 1,494 $ 1,761 $ 9,610 $ 12,711 Denominator: Basic weighted average common shares outstanding 31,516 30,876 31,458 30,648 Dilutive effect of equity incentive plans 590 1,203 808 1,327 Diluted weighted average common shares outstanding 32,106 32,079 32,266 31,975 Net income per share: Basic $ 0.05 $ 0.06 $ 0.31 $ 0.41 Diluted $ 0.05 $ 0.05 $ 0.30 $ 0.40 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 Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Outstanding options 228 34 116 25 Nonvested restricted stock units 1,231 — 660 — Employee Stock Purchase Plan 276 30 252 40 Total 1,735 64 1,028 65 |
Note 8 - Customer and Geographi
Note 8 - Customer and Geographic Information | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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 Ended September 30, Nine Months Ended September 30, Customer 2015 2014 2015 2014 A 60 % 56 % 52 % 50 % B * 13 % * 16 % C * 11 % 12 % 12 % * represents less than 10% The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: Customer September 30, 2015 December 31, 2014 A 70 % 51 % B 0 21 % * represents less than 10% Revenues from customers by geographic area based on the location of the customers’ work sites are as follows (in thousands): Three Months Ended September 30, 2015 2014 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 12,795 54 % $ 10,528 47 % Germany 5,017 21 7,913 35 South Korea 764 3 1,304 6 Taiwan 2,469 10 626 3 Rest of the world 2,833 12 2,035 9 Total revenue $ 23,878 100 % $ 22,406 100 % Nine Months Ended September 30, 2015 2014 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 34,545 47 % $ 32,079 43 % Germany 17,626 24 26,046 35 South Korea 8,309 11 4,806 6 Taiwan 5,747 8 2,954 4 Rest of the world 7,678 10 8,217 12 Total revenue $ 73,905 100 % $ 74,102 100 % Long-lived assets, net by geographic area are as follows (in thousands): September 30, 2015 December 31, 2014 United States $ 10,779 $ 8,240 Rest of the world 583 592 Total long-lived assets, net $ 11,362 $ 8,832 |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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, 2015, and the basis for that measurement (in thousands): Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,365 $ 26,365 $ — $ — The following table represents the Company’s assets measured at fair value on a recurring basis as of December 31, 2014, and the basis for that measurement (in thousands): Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,356 $ 26,356 $ — $ — The Company enters into foreign currency forward contracts to reduce the exposure to foreign currency exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities, primarily on third-party accounts payables and intercompany balances. The primary objective of the Company’s hedging program is to reduce volatility of earnings related to foreign currency exchange rate fluctuations. The counterparty to these foreign currency forward contracts is a large global financial institution that the Company believes is creditworthy, and therefore, the Company believes the credit risk of counterparty nonperformance is not significant. These foreign currency forward contracts are not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded into earnings as a component of other income (expense), net, and offsets the change in fair value of the foreign currency denominated assets and liabilities, which is also recorded in other income (expense), net. For the three months ended September 30, 2015 and 2014, the Company recognized a realized loss of $15,000 and $0.5 million on the contracts, respectively, which was recorded in other income (expense), net in the Company’s Statement of Operations and Comprehensive Income. For the nine months ended September 30, 2015 and 2014, the Company recognized a realized loss of $0.6 million and $0.6 million on the contracts, respectively, which was recorded in other income (expense), net in the Company’s Statement of Operations and Comprehensive Income. The Company carries these derivatives financial instruments on its Consolidated Balance Sheets at their fair values. The Company’s foreign currency forward contracts are classified as Level 2 because it is not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. As of September 30, 2015, the Company had one outstanding forward contract with a notional amount of $6.8 million and recorded $46,000 other current liabilities and an unrealized loss of $46,000 associated with this outstanding forward contract. As of December 31, 2014, the Company had one outstanding forward contract with a notional amount of $6.7 million and had recorded $50,000 other current liabilities and an unrealized loss of $50,000 associated with the outstanding forward contract. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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 2019. Rent expense was $0.5 million for both the three months ended September 30, 2015 and 2014. Rent expense was $1.6 million and $1.5 million for the nine months ended September 30, 2015 and 2014, respectively. Future minimum lease payments under noncancelable operating leases at September 30, 2015, are as follows (in thousands): Year Ending December 31, Amount 2015 (remaining three months) $ 504 2016 1,856 2017 1,418 2018 808 2019 73 Thereafter 80 Total future minimum lease payments $ 4,739 Litigation |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014. 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, 2014, 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 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition 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 defers certain pre-contract costs incurred for specific anticipated contracts. Deferred costs consist primarily of direct costs to provide solution implementation services in relation to the specific anticipated contracts. The Company recognizes such costs as a component of cost of revenues, the timing of which is dependent upon persuasive evidence of contract arrangement assuming all other revenue recognition criteria are met. At the end of reporting period, the Company evaluates its deferred costs for their probable recoverability. The Company recognizes impairment of deferred costs when it is determined that the costs no longer have future benefits and are no longer recoverable. 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 3 - Business Combinations
Note 3 - Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Consideration Cash $ 5,264 Contingent consideration arrangement - Fair value of total consideration transferred $ 5,264 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents 112 Accounts receivable and other assets 208 Deferred tax assets, net 261 Identifiable intangible assets 5,000 Property and equipment 378 Accounts payable and other liabilities (1,165 ) Total identifiable net assets 4,794 Goodwill 470 $ 5,264 |
Note 4 - Balance Sheet Compon18
Note 4 - Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, 2015 December 31, 2014 Property and equipment, net: Computer equipment $ 8,952 $ 9,817 Software 1,603 3,369 Furniture, fixtures and equipment 827 756 Leasehold improvements 1,131 1,127 Test equipment 7,123 6,401 Construction-in-progress 4,702 2,405 24,338 23,875 Less: accumulated depreciation (12,976 ) (15,043 ) Total $ 11,362 $ 8,832 |
Schedule of Goodwill [Table Text Block] | September 30, 2015 Balance as of December 31, 2014 - Add: Goodwill from acquisition 470 Balance as of September 30, 2015 470 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2015 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 9 $ 2,500 $ (58 ) $ 2,442 Developed Technology 6 2,300 (80 ) 2,220 Tradename 2 100 (10 ) 90 Backlog 1 100 (21 ) 79 Total $ 5,000 $ (169 ) $ 4,831 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Ending December 31, 2015 (remaining 3 months) $ 203 2016 765 2017 688 2018 661 2019 661 Thereafter 1,853 Total future amortization expense $ 4,831 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Cost of Design-to-silicon yield-solutions $ 1,039 $ 947 $ 2,840 $ 2,467 Research and development 617 426 1,618 1,230 Selling, general and administrative 908 853 2,660 2,562 Stock-based compensation expenses $ 2,564 $ 2,226 $ 7,118 $ 6,259 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected life (in years) 4.51 4.58 4.51 4.58 Volatility 45.56 % 44.88 % 45.96 % 43.45 % Risk-free interest rate 1.38 % 1.63 % 1.36 % 1.55 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.48 $ 7.54 $ 5.85 $ 7.44 Nine Months Ended September 30, 2015 2014 Expected life (in years) 1.25 1.25 Volatility 50.12 % 33.46 % Risk-free interest rate 0.34 % 0.21 % Expected dividend — — Weighted average fair value of purchase rights granted under the Purchase Plan $ 5.51 $ 6.44 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2015 2,352 $ 7.65 Granted (weighted average fair value of $5.85 per share) 72 $ 14.84 Exercised (634 ) $ 7.73 Canceled (17 ) $ 12.58 Expired (3 ) $ 12.21 Outstanding, September 30, 2015 1,770 $ 7.86 5.36 $ 5,045 Vested and expected to vest, September 30, 2015 1,756 $ 7.81 5.33 $ 5,042 Exercisable, September 30, 2015 1,514 $ 7.20 4.96 $ 4,856 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2015 941 $ 17.38 Granted 699 $ 16.08 Vested (228 ) $ 15.60 Forfeited (32 ) $ 17.46 Nonvested, September 30, 2015 1,380 $ 17.01 |
Note 7 - Net Income Per Share (
Note 7 - Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 1,494 $ 1,761 $ 9,610 $ 12,711 Denominator: Basic weighted average common shares outstanding 31,516 30,876 31,458 30,648 Dilutive effect of equity incentive plans 590 1,203 808 1,327 Diluted weighted average common shares outstanding 32,106 32,079 32,266 31,975 Net income per share: Basic $ 0.05 $ 0.06 $ 0.31 $ 0.41 Diluted $ 0.05 $ 0.05 $ 0.30 $ 0.40 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Outstanding options 228 34 116 25 Nonvested restricted stock units 1,231 — 660 — Employee Stock Purchase Plan 276 30 252 40 Total 1,735 64 1,028 65 |
Note 8 - Customer and Geograp21
Note 8 - Customer and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, Customer 2015 2014 2015 2014 A 60 % 56 % 52 % 50 % B * 13 % * 16 % C * 11 % 12 % 12 % |
Receivables by Major Customers [Table Text Block] | Customer September 30, 2015 December 31, 2014 A 70 % 51 % B 0 21 % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended September 30, 2015 2014 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 12,795 54 % $ 10,528 47 % Germany 5,017 21 7,913 35 South Korea 764 3 1,304 6 Taiwan 2,469 10 626 3 Rest of the world 2,833 12 2,035 9 Total revenue $ 23,878 100 % $ 22,406 100 % Nine Months Ended September 30, 2015 2014 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 34,545 47 % $ 32,079 43 % Germany 17,626 24 26,046 35 South Korea 8,309 11 4,806 6 Taiwan 5,747 8 2,954 4 Rest of the world 7,678 10 8,217 12 Total revenue $ 73,905 100 % $ 74,102 100 % |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | September 30, 2015 December 31, 2014 United States $ 10,779 $ 8,240 Rest of the world 583 592 Total long-lived assets, net $ 11,362 $ 8,832 |
Note 9 - Fair Value Measureme22
Note 9 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,365 $ 26,365 $ — $ — Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,356 $ 26,356 $ — $ — |
Note 10 - Commitments and Con23
Note 10 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Ending December 31, Amount 2015 (remaining three months) $ 504 2016 1,856 2017 1,418 2018 808 2019 73 Thereafter 80 Total future minimum lease payments $ 4,739 |
Note 3 - Business Combination24
Note 3 - Business Combinations (Details Textual) - Syntricity [Member] - USD ($) | Jul. 17, 2015 | Sep. 30, 2015 |
Former Shareholder of Syntricity [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 812,000 | |
Employee [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,700,000 | |
General and Administrative Expense [Member] | ||
Business Combination, Acquisition Related Costs | $ 588,000 | |
Payments to Acquire Businesses, Gross | 5,200,000 | 5,264,000 |
Cash Acquired from Acquisition | 112,000 | |
Business Combination, Amount to be Held in Escrow and Subject to Indemnity Adjustments | 750,000 | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,500,000 | |
Business Combination, Contingent Consideration, Liability | $ 475,000 |
Note 3 - Business Combination25
Note 3 - Business Combinations - Allocation of the Purchase Price (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Syntricity [Member] | |
Payments to Acquire Businesses, Gross | $ 5,264,000 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |
Cash and cash equivalents | 112,000 |
Accounts receivable and other assets | 208,000 |
Deferred tax assets, net | 261,000 |
Identifiable intangible assets | 5,000,000 |
Property and equipment | 378,000 |
Accounts payable and other liabilities | (1,165,000) |
Total identifiable net assets | 4,794,000 |
Goodwill | 470,000 |
5,264,000 | |
Goodwill | $ 470,000 |
Note 4 - Balance Sheet Compon26
Note 4 - Balance Sheet Components (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Syntricity [Member] | |||||
Goodwill | $ 470,000 | $ 470,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 5,000,000 | 5,000,000 | |||
Unbilled Receivables, Current | 11,700,000 | 11,700,000 | $ 9,700,000 | ||
Depreciation, Depletion and Amortization, Nonproduction | 700,000 | $ 500,000 | 1,900,000 | $ 1,500,000 | |
Goodwill | 470,000 | 470,000 | 0 | ||
Finite-Lived Intangible Assets, Net | 4,831,000 | $ 4,831,000 | 0 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 58 days | ||||
Amortization of Intangible Assets | 169,000 | 0 | $ 169,000 | 31,000 | |
Deferred Costs | $ 0 | $ 0 | $ 100,000 | ||
Impairment of Deferred Costs | $ 1,892,000 | $ 1,892,000 |
Note 4 - Balance Sheet Compon27
Note 4 - Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Computer Equipment [Member] | ||
Property and equipment, net: | ||
Property and equipment | $ 8,952 | $ 9,817 |
Software and Software Development Costs [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,603 | 3,369 |
Furniture and Fixtures [Member] | ||
Property and equipment, net: | ||
Property and equipment | 827 | 756 |
Leasehold Improvements [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,131 | 1,127 |
Test Equipment [Member] | ||
Property and equipment, net: | ||
Property and equipment | 7,123 | 6,401 |
Construction in Progress [Member] | ||
Property and equipment, net: | ||
Property and equipment | 4,702 | 2,405 |
Property and equipment | 24,338 | 23,875 |
Less: accumulated depreciation | (12,976) | (15,043) |
Total | $ 11,362 | $ 8,832 |
Note 4 - Business Combinations
Note 4 - Business Combinations - Goodwill Activity (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Syntricity [Member] | |
Balance as of December 31, 2014 | |
Add: Goodwill from acquisition | $ 470,000 |
Balance as of September 30, 2015 | 470,000 |
Balance as of December 31, 2014 | 0 |
Balance as of September 30, 2015 | $ 470,000 |
Note 4 - Balance Sheet Compon29
Note 4 - Balance Sheet Components - Intangible Assets (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Customer Relationships [Member] | |
Amortization Period | |
Customer relationships | 9 years |
Customer relationships | $ 2,500,000 |
Customer relationships | (58,000) |
Finite-Lived Intangible Assets, Net | 2,442,000 |
Net Carrying Amount | $ 2,442,000 |
Developed Technology Rights [Member] | |
Amortization Period | |
Customer relationships | 6 years |
Customer relationships | $ 2,300,000 |
Customer relationships | (80,000) |
Finite-Lived Intangible Assets, Net | 2,220,000 |
Net Carrying Amount | $ 2,220,000 |
Technology-Based Intangible Assets [Member] | |
Amortization Period | |
Customer relationships | 2 years |
Customer relationships | $ 100,000 |
Customer relationships | (10,000) |
Finite-Lived Intangible Assets, Net | 90,000 |
Net Carrying Amount | $ 90,000 |
Order or Production Backlog [Member] | |
Amortization Period | |
Customer relationships | 1 year |
Customer relationships | $ 100,000 |
Customer relationships | (21,000) |
Finite-Lived Intangible Assets, Net | 79,000 |
Net Carrying Amount | 79,000 |
Customer relationships | 5,000,000 |
Customer relationships | (169,000) |
Finite-Lived Intangible Assets, Net | 4,831,000 |
Net Carrying Amount | $ 4,831,000 |
Note 4 - Balance Sheet Compon30
Note 4 - Balance Sheet Components - Annual Amortization of Identifiable Intangible Assets (Details) | Sep. 30, 2015USD ($) |
Year Ending December 31, | |
2015 (remaining 3 months) | $ 203,000 |
2,016 | 765,000 |
2,017 | 688,000 |
2,018 | 661,000 |
2,019 | 661,000 |
Thereafter | 1,853,000 |
Total future amortization expense | $ 4,831,000 |
Note 5 - Stockholders' Equity31
Note 5 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Outside of the 2011, 2001 or IDS Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | |||
Shares Previously Issued Under the 2001 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,500,000 | 3,500,000 | |||
Twenty Eleven Stock Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Expiration Term | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 7,000,000 | 7,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,100,000 | 3,100,000 | |||
IDS Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Expiration Term | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Two Thousand One Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 400,000 | ||||
Employee Stock Purchase Plan [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 302 days | ||||
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% | ||||
Allocated Share-based Compensation Expense | $ 200 | $ 100 | $ 500 | $ 1,300 | |
Number Of ESPP Shares Available For Future Issuance | 2,800,000 | 2,800,000 | |||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 6,100 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 1,200 | $ 1,200 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 292 days | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 18,600 | $ 18,600 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,770,000 | 1,770,000 | 2,352,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,550,000 | 6,550,000 | |||
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate | 1.33 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 17,000 | ||||
Share Price | $ 10 | $ 10 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 1,200 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 59,000 | 62,000 | 110,000 | 114,000 | |
Employee Stock Purchase Plan Weighted Average Purchase Price of Shares Purchased | $ 11.91 | $ 13.06 | $ 12.57 | $ 12.62 | |
Allocated Share-based Compensation Expense | $ 2,564 | $ 2,226 | $ 7,118 | $ 6,259 | |
Stock Repurchase Program, Authorized Amount | 25,000 | $ 25,000 | |||
Stock Repurchased During Period, Shares | 636,996 | ||||
Stock Repurchsed During Period Average Per Share Price | $ 15.09 | ||||
Stock Repurchased During Period, Value | $ 9,600 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 15,400 | $ 15,400 |
Note 5 - Stockholders' Equity -
Note 5 - Stockholders' Equity - Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cost of Sales [Member] | ||||
Allocation of recognized period costs | $ 1,039 | $ 947 | $ 2,840 | $ 2,467 |
Research and Development Expense [Member] | ||||
Allocation of recognized period costs | 617 | 426 | 1,618 | 1,230 |
Selling, General and Administrative Expenses [Member] | ||||
Allocation of recognized period costs | 908 | 853 | 2,660 | 2,562 |
Allocation of recognized period costs | $ 2,564 | $ 2,226 | $ 7,118 | $ 6,259 |
Note 5 - Stockholders' Equity33
Note 5 - Stockholders' Equity - Stock Options, Valuation Assumptions (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Stock Option [Member] | ||||
Expected life (in years) | 4 years 186 days | 4 years 211 days | 4 years 186 days | 4 years 211 days |
Volatility | 45.56% | 44.88% | 45.96% | 43.45% |
Risk-free interest rate | 1.38% | 1.63% | 1.36% | 1.55% |
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) | $ 5.48 | $ 7.54 | $ 5.85 | $ 7.44 |
Weighted average fair value of purchase rights granted under the Purchase Plan (in dollars per share) | $ 5.48 | $ 7.54 | $ 5.85 | $ 7.44 |
Employee Stock Purchase Plan [Member] | ||||
Expected life (in years) | 1 year 91 days | 1 year 91 days | ||
Volatility | 50.12% | 33.46% | ||
Risk-free interest rate | 0.34% | 0.21% | ||
Expected dividend | 0.00% | 0.00% | ||
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 5.51 | $ 6.44 | ||
Weighted average fair value of purchase rights granted under the Purchase Plan (in dollars per share) | $ 5.51 | $ 6.44 |
Note 5 - Stockholders' Equity34
Note 5 - Stockholders' Equity - Stock Options Activity (Details) shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Outstanding, January 1, 2015 (in shares) | 2,352 |
Outstanding, January 1, 2015 (in dollars per share) | $ / shares | $ 7.65 |
Granted (weighted average fair value of $5.85 per share) (in shares) | 72 |
Exercised (in shares) | (634) |
Exercised (in dollars per share) | $ / shares | $ 7.73 |
Canceled (in shares) | (17) |
Canceled (in dollars per share) | $ / shares | $ 12.58 |
Expired (in shares) | (3) |
Expired (in dollars per share) | $ / shares | $ 12.21 |
Outstanding, September 30, 2015 (in shares) | 1,770 |
Outstanding, September 30, 2015 (in dollars per share) | $ / shares | $ 7.86 |
Outstanding, September 30, 2015 | 5 years 131 days |
Outstanding, September 30, 2015 | $ | $ 5,045 |
Vested and expected to vest, September 30, 2015 (in shares) | 1,756 |
Vested and expected to vest, September 30, 2015 (in dollars per share) | $ / shares | $ 7.81 |
Vested and expected to vest, September 30, 2015 | 5 years 120 days |
Vested and expected to vest, September 30, 2015 | $ | $ 5,042 |
Exercisable, September 30, 2015 (in shares) | 1,514 |
Exercisable, September 30, 2015 (in dollars per share) | $ / shares | $ 7.20 |
Exercisable, September 30, 2015 | 4 years 350 days |
Exercisable, September 30, 2015 | $ | $ 4,856 |
Note 5 - Stockholders' Equity35
Note 5 - Stockholders' Equity - Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Nonvested, January 1, 2015 (in shares) | shares | 941 |
Nonvested, January 1, 2015 (in dollars per share) | $ 17.38 |
Granted (in shares) | shares | 699 |
Granted (in dollars per share) | $ 16.08 |
Vested (in shares) | shares | (228) |
Vested (in dollars per share) | $ 15.60 |
Forfeited (in shares) | shares | (32) |
Forfeited (in dollars per share) | $ 17.46 |
Nonvested, September 30, 2015 (in shares) | shares | 1,380 |
Nonvested, September 30, 2015 (in dollars per share) | $ 17.01 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Increase (Decrease) in Income Taxes | $ (900) | ||||
Income Tax Expense (Benefit) | $ 1,269 | $ 1,217 | $ 6,395 | $ 7,287 | |
Effective Income Tax Rate Reconciliation, Percent | 39.96% | 36.44% | |||
Unrecognized Tax Benefits | 10,500 | $ 10,500 | $ 10,400 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6,100 | 6,100 | $ 6,300 | ||
Unrecognized Tax Benefits In Long Term Liabilities | 2,400 | 2,400 | |||
Unrecognized Tax Benefits In Deferred Tax Assets | 8,500 | 8,500 | |||
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance | $ 4,400 | $ 4,400 |
Note 7 - Net Income Per Share -
Note 7 - Net Income Per Share - Calculation of Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 1,494 | $ 1,761 | $ 9,610 | $ 12,711 |
Basic (in shares) | 31,516 | 30,876 | 31,458 | 30,648 |
Dilutive effect of equity incentive plans (in shares) | 590 | 1,203 | 808 | 1,327 |
Diluted weighted average common shares outstanding (in shares) | 32,106 | 32,079 | 32,266 | 31,975 |
Basic (in dollars per share) | $ 0.05 | $ 0.06 | $ 0.31 | $ 0.41 |
Diluted (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.30 | $ 0.40 |
Note 7 - Net Income Per Share38
Note 7 - Net Income Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Stock Option [Member] | ||||
Antidilutive securities (in shares) | 228 | 34 | 116 | 25 |
Restricted Stock Units RSU Nonvested [Member] | ||||
Antidilutive securities (in shares) | 1,231 | 660 | ||
Employee Stock Purchase Plan [Member] | ||||
Antidilutive securities (in shares) | 276 | 30 | 252 | 40 |
Antidilutive securities (in shares) | 1,735 | 64 | 1,028 | 65 |
Note 8 - Customer and Geograp39
Note 8 - Customer and Geographic Information (Details Textual) | 9 Months Ended |
Sep. 30, 2015 | |
Number of Operating Segments | 1 |
Note 8 - Customer and Geograp40
Note 8 - Customer and Geographic Information - Revenue Percentage by Major Customers (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Customer A [Member] | ||||||
Receivables Percentage by Major Customer | 60.00% | 56.00% | 52.00% | 50.00% | ||
Customer B [Member] | ||||||
Receivables Percentage by Major Customer | [1] | 13.00% | [1] | 16.00% | ||
Customer C [Member] | ||||||
Receivables Percentage by Major Customer | [1] | 11.00% | 12.00% | 12.00% | ||
[1] | represents less than 10% |
Note 8 - Customer and Geograp41
Note 8 - Customer and Geographic Information - Receivables Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Customer A [Member] | ||
Receivables Percentage by Major Customer | 70.00% | 51.00% |
Customer B [Member] | ||
Receivables Percentage by Major Customer | 0.00% | 21.00% |
Note 8 - Customer and Geograp42
Note 8 - Customer and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | UNITED STATES | ||||
Revenues | $ 12,795 | $ 10,528 | $ 34,545 | $ 32,079 |
Receivables Percentage by Major Customer | 54.00% | 47.00% | 47.00% | 43.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | GERMANY | ||||
Revenues | $ 5,017 | $ 7,913 | $ 17,626 | $ 26,046 |
Receivables Percentage by Major Customer | 21.00% | 35.00% | 24.00% | 35.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | KOREA, REPUBLIC OF | ||||
Revenues | $ 764 | $ 1,304 | $ 8,309 | $ 4,806 |
Receivables Percentage by Major Customer | 3.00% | 6.00% | 11.00% | 6.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | TAIWAN, PROVINCE OF CHINA | ||||
Revenues | $ 2,469 | $ 626 | $ 5,747 | $ 2,954 |
Receivables Percentage by Major Customer | 10.00% | 3.00% | 8.00% | 4.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Rest of the World [Member] | ||||
Revenues | $ 2,833 | $ 2,035 | $ 7,678 | $ 8,217 |
Receivables Percentage by Major Customer | 12.00% | 9.00% | 10.00% | 12.00% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | ||||
Revenues | $ 23,878 | $ 22,406 | $ 73,905 | $ 74,102 |
Receivables Percentage by Major Customer | 100.00% | 100.00% | 100.00% | 100.00% |
Revenues | $ 23,878 | $ 22,406 | $ 73,905 | $ 74,102 |
Note 8 - Customer and Geograp43
Note 8 - Customer and Geographic Information - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
North America [Member] | ||
Long-lived assets | $ 10,779 | $ 8,240 |
Rest of the World [Member] | ||
Long-lived assets | 583 | 592 |
Long-lived assets | $ 11,362 | $ 8,832 |
Note 9 - Fair Value Measureme44
Note 9 - Fair Value Measurements (Details Textual) - Foreign Exchange Contract [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Other Nonoperating Income (Expense) [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (15,000) | $ (500,000) | $ (600,000) | $ (600,000) | |
Other Current Liabilities [Member] | |||||
Derivative Liability, Current | $ 46,000 | 46,000 | $ 50,000 | ||
Derivative, Gain (Loss) on Derivative, Net | $ (46,000) | $ (50,000) | |||
Derivative, Number of Instruments Held | 1 | 1 | 1 | ||
Derivative Asset, Notional Amount | $ 6,800,000 | $ 6,800,000 | $ 6,700,000 |
Note 9 - Fair Value, Assets Mea
Note 9 - Fair Value, Assets Measured on Recurring Basis (Details) - Money Market Mutual Funds [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | $ 26,365 | $ 26,356 |
Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Fair Value, Inputs, Level 3 [Member] | ||
Money market mutual funds | ||
Money market mutual funds | $ 26,365 | $ 26,356 |
Note 10 - Commitments and Con46
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Loss Contingency, Loss in Period | $ 0 | |||
Operating Leases, Rent Expense, Net | $ 500,000 | $ 500,000 | 1,600,000 | $ 1,500,000 |
Loss Contingency Accrual | $ 0 | $ 0 |
Note 10 - Commitments and Con47
Note 10 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2015USD ($) |
2015 (remaining three months) | $ 504 |
2,016 | 1,856 |
2,017 | 1,418 |
2,018 | 808 |
2,019 | 73 |
Thereafter | 80 |
Total future minimum lease payments | $ 4,739 |