Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | GSI TECHNOLOGY INC | |
Entity Central Index Key | 0001126741 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Trading Symbol | GSIT | |
Amendment Flag | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,157,748 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 47,971 | $ 42,495 |
Short-term investments | 20,343 | 19,346 |
Accounts receivable, net | 5,398 | 7,339 |
Inventories | 4,521 | 5,685 |
Prepaid expenses and other current assets | 2,548 | 2,500 |
Total current assets | 80,781 | 77,365 |
Property and equipment, net | 8,355 | 9,001 |
Operating lease right-of-use assets | 766 | |
Long-term investments | 5,322 | 8,997 |
Goodwill | 7,978 | 7,978 |
Intangible assets, net | 2,547 | 2,722 |
Other assets | 162 | 160 |
Total assets | 105,911 | 106,223 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 1,138 | 1,864 |
Lease liabilities, current | 575 | |
Accrued expenses and other liabilities | 7,301 | 6,869 |
Total current liabilities | 9,014 | 8,733 |
Income taxes payable | 627 | 622 |
Lease liabilities, non-current | 230 | |
Contingent consideration, non-current | 3,793 | 3,713 |
Total liabilities | 13,664 | 13,068 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock: $0.001 par value authorized: 5,000,000 shares; issued and outstanding: none | ||
Common Stock: $0.001 par value authorized: 150,000,000 shares; issued and outstanding: 23,132,998 and 22,320,156 shares, respectively | 23 | 22 |
Additional paid-in capital | 39,012 | 33,462 |
Accumulated other comprehensive income (loss) | 17 | (37) |
Retained earnings | 53,195 | 59,708 |
Total stockholders' equity | 92,247 | 93,155 |
Total liabilities and stockholders' equity | $ 105,911 | $ 106,223 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Mar. 31, 2019 |
Stockholders' Equity | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 23,132,998 | 22,320,156 |
Common stock, shares outstanding | 23,132,998 | 22,320,156 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement | ||||
Net revenues | $ 10,049 | $ 14,702 | $ 34,808 | $ 38,800 |
Cost of revenues | 4,000 | 4,663 | 13,948 | 14,942 |
Gross profit | 6,049 | 10,039 | 20,860 | 23,858 |
Operating expenses: | ||||
Research and development | 8,208 | 5,171 | 19,636 | 15,773 |
Selling, general and administrative | 2,584 | 2,632 | 8,119 | 7,902 |
Total operating expenses | 10,792 | 7,803 | 27,755 | 23,675 |
Income (loss) from operations | (4,743) | 2,236 | (6,895) | 183 |
Interest income, net | 190 | 195 | 610 | 488 |
Other income (expense), net | 17 | (99) | (46) | (224) |
Income (loss) before income taxes | (4,536) | 2,332 | (6,331) | 447 |
Provision for income taxes | 84 | 70 | 182 | 182 |
Net income (loss) | $ (4,620) | $ 2,262 | $ (6,513) | $ 265 |
Net income (loss) per share: | ||||
Basic | $ (0.20) | $ 0.10 | $ (0.28) | $ 0.01 |
Diluted | $ (0.20) | $ 0.10 | $ (0.28) | $ 0.01 |
Weighted average shares used in per share calculations: | ||||
Basic | 23,096 | 21,979 | 22,894 | 21,798 |
Diluted | 23,096 | 22,769 | 22,894 | 23,139 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements Of Comprehensive Income (Loss) | ||||
Net income (loss) | $ (4,620) | $ 2,262 | $ (6,513) | $ 265 |
Net unrealized gain (loss) on available-for-sale investments | (11) | 18 | 54 | 34 |
Total comprehensive income (loss) | $ (4,631) | $ 2,280 | $ (6,459) | $ 299 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total |
Beginning Balance - Shares at Mar. 31, 2018 | 21,407,247 | ||||
Beginning Balance - Amount at Mar. 31, 2018 | $ 21 | $ 27,391 | $ (142) | $ 59,545 | $ 86,815 |
Issuance of common stock under employee stock option plans, shares | 605,473 | ||||
Issuance of common stock under employee stock option plans, amount | $ 1 | 2,508 | 2,509 | ||
Repurchase of common stock, shares | (20,636) | ||||
Repurchase of common stock, amount | (102) | (102) | |||
Stock-based compensation expense | 1,686 | 1,686 | |||
Comprehensive loss: | |||||
Net income (loss) | 265 | 265 | |||
Net unrealized gain on available-for-sale investments | 34 | 34 | |||
Ending Balance, Shares at Dec. 31, 2018 | 21,992,084 | ||||
Ending Balance, Amount at Dec. 31, 2018 | $ 22 | 31,483 | (108) | 59,810 | 91,207 |
Beginning Balance - Shares at Sep. 30, 2018 | 21,947,624 | ||||
Beginning Balance - Amount at Sep. 30, 2018 | $ 22 | 30,677 | (126) | 57,548 | 88,121 |
Issuance of common stock under employee stock option plans, shares | 65,096 | ||||
Issuance of common stock under employee stock option plans, amount | 317 | 317 | |||
Repurchase of common stock, shares | (20,636) | ||||
Repurchase of common stock, amount | (102) | (102) | |||
Stock-based compensation expense | 591 | 591 | |||
Comprehensive loss: | |||||
Net income (loss) | 2,262 | 2,262 | |||
Net unrealized gain on available-for-sale investments | 18 | 18 | |||
Ending Balance, Shares at Dec. 31, 2018 | 21,992,084 | ||||
Ending Balance, Amount at Dec. 31, 2018 | $ 22 | 31,483 | (108) | 59,810 | 91,207 |
Beginning Balance - Shares at Mar. 31, 2019 | 22,320,156 | ||||
Beginning Balance - Amount at Mar. 31, 2019 | $ 22 | 33,462 | (37) | 59,708 | 93,155 |
Issuance of common stock under employee stock option plans, shares | 812,842 | ||||
Issuance of common stock under employee stock option plans, amount | $ 1 | 3,628 | 3,629 | ||
Stock-based compensation expense | 1,922 | 1,922 | |||
Comprehensive loss: | |||||
Net income (loss) | (6,513) | (6,513) | |||
Net unrealized gain on available-for-sale investments | 54 | 54 | |||
Ending Balance, Shares at Dec. 31, 2019 | 23,132,998 | ||||
Ending Balance, Amount at Dec. 31, 2019 | $ 23 | 39,012 | 17 | 53,195 | 92,247 |
Beginning Balance - Shares at Sep. 30, 2019 | 23,052,473 | ||||
Beginning Balance - Amount at Sep. 30, 2019 | $ 23 | 37,903 | 28 | 57,815 | 95,769 |
Issuance of common stock under employee stock option plans, shares | 80,525 | ||||
Issuance of common stock under employee stock option plans, amount | 480 | 480 | |||
Stock-based compensation expense | 629 | 629 | |||
Comprehensive loss: | |||||
Net income (loss) | (4,620) | (4,620) | |||
Net unrealized gain on available-for-sale investments | (11) | (11) | |||
Ending Balance, Shares at Dec. 31, 2019 | 23,132,998 | ||||
Ending Balance, Amount at Dec. 31, 2019 | $ 23 | $ 39,012 | $ 17 | $ 53,195 | $ 92,247 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (6,513) | $ 265 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Allowance for doubtful accounts and other | (32) | 40 |
Provision for excess and obsolete inventories | 260 | 874 |
Non-cash lease expense | 462 | |
Depreciation and amortization | 1,079 | 1,073 |
Stock-based compensation | 1,922 | 1,686 |
Amortization of premium on investments | (14) | (25) |
Changes in assets and liabilities: | ||
Accounts receivable | 1,973 | (2,921) |
Inventory | 904 | (1,276) |
Prepaid expenses and other assets | (1,064) | (219) |
Accounts payable | (728) | 532 |
Accrued expenses and other liabilities | 531 | 768 |
Net cash provided by (used in) operating activities | (1,220) | 797 |
Cash flows from investing activities: | ||
Purchase of investments | (15,866) | (16,057) |
Maturities of short-term investments | 18,626 | 15,423 |
Decrease in MikaMonu escrow deposit | 1,000 | 750 |
Purchases of property and equipment | (265) | (1,948) |
Net cash provided by (used in) investing activities | 3,495 | (1,832) |
Cash flows from financing activities: | ||
Payment of contingent consideration | (720) | |
Payment of MikaMonu escrow deposit | (428) | (364) |
Repurchase of common stock | (102) | |
Proceeds from issuance of common stock under employee stock plans | 3,629 | 2,509 |
Net cash provided by financing activities | 3,201 | 1,323 |
Net increase in cash and cash equivalents | 5,476 | 288 |
Cash and cash equivalents at beginning of the period | 42,495 | 40,241 |
Cash and cash equivalents at end of the period | 47,971 | 40,529 |
Non-cash financing activities: | ||
Purchases of property and equipment through accounts payable and accruals | 24 | 34 |
Supplemental cash flow information: | ||
Net cash paid for income taxes | $ 310 | $ 11 |
1. THE COMPANY AND SUMMARY OF S
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2019 | |
The Company And Summary Of Significant Accounting Policies | |
NOTE 1 - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019. The consolidated results of operations for the nine months ended December 31, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year. Significant accounting policies Except for the accounting policy for leases, which was updated as a result of adopting a new accounting standard related to leases, there have been no material changes to our significant accounting policies that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019. See “Recent accounting pronouncements” below for additional information on the impact of the adoption of the new accounting standard for leases on the Company’s consolidated financial statements. Recent accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” as part of its initiative to reduce complexity in the accounting standards. The standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have upon its financial position and results of operations, if any . In August 2018, FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The standard amends the disclosure requirements for recurring and nonrecurring fair value measurements by removing, modifying, and adding certain disclosures. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Company’s first presentation of changes in stockholders' equity was included in the Form 10-Q for the quarter ended June 30, 2019. In January 2017, the FASB issued ASU No. 2017-04, " Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The standard eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not anticipate the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13 , “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted beginning April 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842) .” The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, “ Elements of Financial Statements ,” and, therefore, recognition of those lease assets and lease liabilities represents a change of previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements," which provides clarifications and improvements to ASU 2016-02 including allowing entities to elect an additional transition method, a modified retrospective approach, that permits changes to be applied by means of a cumulative-effect adjustment recorded in retained earnings as of the beginning of the fiscal year of adoption. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with Leases (Topic 840) ("ASC 840"), including the disclosure requirements of ASC 840. The Company adopted Topic 842 as of April 1, 2019 and applied the modified retrospective approach to all leases existing at, or entered into on or after, the date of adoption of April 1, 2019. The Company did not restate comparative periods, as permitted by ASU 2018-11, and elected the package of practical expedients permitted under the transition guidance within the new standard and did not reassess whether any contracts that existed prior to adoption have or contain leases or the classification of existing leases. Further, the Company made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. The Company will recognize those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. As a result of adoption of this standard and election of the transition practical expedients, the Company recognized right-of-use (“ROU”) assets and lease liabilities for those leases classified as operating leases under ASC Topic 840 that continued to be classified as operating leases under ASC Topic 842 at the date of initial application. The Company does not have any leases classified as a capital lease under ASC 840 and therefore has no leases classified as a “finance lease” under the new standard. In applying the alternative modified retrospective transition method, the Company measured lease liabilities at the present value of the sum of remaining minimum rental payments (as defined under ASC Topic 840). The present value of lease liabilities has been measured using the Company’s incremental borrowing rates as of April 1, 2019 (the date of initial application). Additionally, ROU assets for these operating leases have been measured as the initial measurement of applicable lease liabilities adjusted for any prepaid or accrued rent. Upon adoption of Topic 842, the Company recognized ROU assets of approximately $1.1 million and lease liabilities of approximately $1.1 million on the Company’s Condensed Consolidated Balance Sheets as of April 1, 2019, with no material impact to its Condensed Consolidated Statements of Operations. |
2. REVENUE RECOGNITION
2. REVENUE RECOGNITION | 9 Months Ended |
Dec. 31, 2019 | |
REVENUE RECOGNITION. | |
Note 2 - REVENUE RECOGNITION | NOTE 2—REVENUE RECOGNITION The Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. The majority of the Company’s customer contracts, which may be in the form of purchase orders, contracts or purchase agreements, contain performance obligations for delivery of agreed upon products. Delivery of all performance obligations contained within a contract with a customer typically occurs at the same time (or within the same accounting period). Transfer of control typically occurs at the time of shipment or at the time the product is pulled from consignment as that is the point at which delivery has occurred, title and the risks and rewards of ownership have passed to the customer, and the Company has a right to payment. Thus, the Company will generally recognize revenue upon shipment of the product. Because all of the Company’s performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption practical expedient provided in ASC 606 and, therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The Company adjusts the transaction price for variable consideration. Variable consideration is not typically significant and primarily results from stock rotation rights and quick pay discounts provided to certain distributors. As a practical expedient, the Company is recognizing the incremental costs of obtaining a contract, specifically commission expenses that have a period of benefit of less than twelve months, as an expense when incurred. Additionally, the Company has adopted an accounting policy to recognize shipping costs that occur after control transfers to the customer as a fulfillment activity. The Company’s contracts with customers do not typically include extended payment terms. Payment terms vary by contract type and type of customer and generally range from 30 to 60 days from shipment. Additionally, the Company has right to payment upon shipment. The Company records revenue net of sales tax, value added tax, excise tax and other taxes collected concurrent with product sales. The impact of such taxes on products sales is immaterial. The Company has also elected to recognize the cost for freight and shipping when control over the products sold passes to customers and revenue is recognized. The Company warrants its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs and the accrued warranty liability were not material as of December 31, 2019. The majority of the Company’s revenue is derived from sales of SRAM products which represent approximately 99% of total revenues in the nine months ended December 31, 2019. Nokia, the Company’s largest customer, purchases products directly from the Company and through contract manufacturers and distributors. Based on information provided to the Company by its contract manufacturers and distributors, purchases by Nokia represented approximately 40% of the Company’s net revenues in the nine months ended December 31, 2019. See “Note 12 — Segment and Geographic Information” for revenue by shipment destination. The following table presents the Company’s revenue disaggregated by customer type. Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands) Contract manufacturers $ 3,022 $ 6,699 $ 11,745 $ 16,122 Distribution 6,603 7,764 21,346 21,982 OEMs 424 239 1,717 696 $ 10,049 $ 14,702 $ 34,808 $ 38,800 |
3. NET INCOME (LOSS) PER COMMON
3. NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended |
Dec. 31, 2019 | |
NET INCOME (LOSS) PER COMMON SHARE | |
NOTE 3 - NET INCOME (LOSS) PER COMMON SHARE | NOTE 3—NET INCOME (LOSS) PER COMMON SHARE The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net income (loss) per share. The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands, except per share amounts) Net income (loss) $ (4,620) $ 2,262 $ (6,513) $ 265 Denominators: Weighted average shares—Basic 23,096 21,979 22,894 21,798 Dilutive effect of employee stock options — 784 — 1,335 Dilutive effect of employee stock purchase plan options — 6 — 6 Weighted average shares—Dilutive 23,096 22,769 22,894 23,139 Net income (loss) per common share—Basic $ (0.20) $ 0.10 $ (0.28) $ 0.01 Net income (loss) per common share—Diluted $ (0.20) $ 0.10 $ (0.28) $ 0.01 The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net income (loss) per share as they had an anti-dilutive effect: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands) Shares underlying options and ESPP shares 4,048 3,961 3,762 2,470 |
4. BALANCE SHEET DETAIL
4. BALANCE SHEET DETAIL | 9 Months Ended |
Dec. 31, 2019 | |
BALANCE SHEET DETAIL | |
NOTE 4 - BALANCE SHEET DETAIL | NOTE 4—BALANCE SHEET DETAIL December 31, 2019 March 31, 2019 (In thousands) Inventories: Work-in-progress $ 1,791 $ 1,983 Finished goods 2,727 3,690 Inventory at distributors 3 12 $ 4,521 $ 5,685 December 31, 2019 March 31, 2019 (In thousands) Accounts receivable, net: Accounts receivable $ 5,468 $ 7,441 Less: Allowances for doubtful accounts and other (70) (102) $ 5,398 $ 7,339 December 31, 2019 March 31, 2019 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ 988 $ 535 Prepaid income taxes 24 39 Escrow deposit — 1,000 Other receivables 273 321 Other prepaid expenses and other current assets 1,263 605 $ 2,548 $ 2,500 December 31, 2019 March 31, 2019 (In thousands) Property and equipment, net: Computer and other equipment $ 18,156 $ 19,086 Software 4,066 4,058 Land 3,900 3,900 Building and building improvements 3,726 3,718 Furniture and fixtures 102 102 Leasehold improvements 872 848 30,822 31,712 Less: Accumulated depreciation (22,467) (22,711) $ 8,355 $ 9,001 Depreciation expense was $293,000 and $317,000 for the three months ended December 31, 2019 and 2018, respectively, and $904,000 and $865,000 for the nine months ended December 31, 2019 and 2018, respectively. December 31, 2019 March 31, 2019 (In thousands) Other assets: Non-current deferred income taxes 34 35 Deposits 128 125 $ 162 $ 160 The following tables summarize the components of intangible assets and related accumulated amortization balances at December 31, 2019 and March 31, 2019 (in thousands): As of December 31, 2019 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (1,673) 2,547 Software 80 (80) — Total $ 4,890 $ (2,343) $ 2,547 As of March 31, 2019 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (1,498) 2,722 Software 80 (80) — Total $ 4,890 $ (2,168) $ 2,722 Amortization of intangible assets included in cost of revenues was $58,000 and $58,000 for the three months ended December 31, 2019 and 2018, respectively, and $175,000 and $208,000 for the nine months ended December 31, 2019 and 2018, respectively. As of December 31, 2019, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Fiscal year ending March 31, 2020 (3 months remaining) $ 58 2021 233 2022 233 2023 233 2024 233 Thereafter 1,557 Total $ 2,547 December 31, 2019 March 31, 2019 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ 3,674 $ 4,659 Purchased intellectual property 2,432 — Accrued professional fees 7 60 Accrued commissions 355 304 Contingent consideration — 492 Accrued retention payment — 415 Miscellaneous accrued expenses 833 939 $ 7,301 $ 6,869 |
5. GOODWILL
5. GOODWILL | 9 Months Ended |
Dec. 31, 2019 | |
GOODWILL | |
NOTE 5 - GOODWILL | NOTE 5—GOODWILL Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed in a business combination. The Company tests for goodwill impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has one reporting unit. The Company assesses goodwill for impairment on an annual basis on the last day of February in the fourth quarter of its fiscal year. The Company had a goodwill balance of $8.0 million as of both March 31, 2019 and December 31, 2019. The goodwill resulted from the acquisition of MikaMonu Group Ltd. in fiscal 2016. The Company utilized a two-step quantitative analysis to complete its annual impairment test during the fourth quarter of fiscal 2019 and concluded that there was no impairment, as the fair value of its sole reporting unit exceeded its carrying value. The Company determined that the second step of the impairment test was not necessary. No triggering event took place subsequent to the fiscal 2019 annual assessment that necessitated a quantitative impairment analysis for the Company’s one reporting unit. |
6. INCOME TAXES
6. INCOME TAXES | 9 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
NOTE 6 - INCOME TAXES | NOTE 6—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both December 31, 2019 and March 31, 2019. The long-term portion at December 31, 2019 and March 31, 2019 was $627,000 and $622,000, respectively, of which the timing of the resolution is uncertain. As of December 31, 2019, $2.5 million of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of December 31, 2019, the Company’s net deferred tax assets of $8.3 million were subject to a valuation allowance of $8.2 million. As of March 31, 2019, the Company’s net deferred tax assets of $6.7 million were subject to a valuation allowance of $6.7 million. Management believes that within the next twelve months the Company will not have a significant reduction in uncertain tax benefits, including interest and penalties, related to positions taken with respect to credits and loss carryforwards on previously filed tax returns. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations. The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2013 through 2019 remain open to examination by federal tax authorities, and fiscal years 2012 through 2019 remain open to examination by California tax authorities. The Company’s estimated annual effective income tax rate, excluding discrete items, was approximately (2.2%) and (22.6%) as of December 31, 2019 and 2018, respectively. The annual effective tax rates as of December 31, 2019 and 2018 vary from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses and the foreign tax differential. |
7. FINANCIAL INSTRUMENTS
7. FINANCIAL INSTRUMENTS | 9 Months Ended |
Dec. 31, 2019 | |
FINANCIAL INSTRUMENTS | |
NOTE 7 - FINANCIAL INSTRUMENTS | NOTE 7—FINANCIAL INSTRUMENTS Fair value measurements Authoritative accounting guidance for fair value measurements provides a framework for measuring fair value and related disclosures. The guidance applies to all financial assets and financial liabilities that are measured on a recurring basis. The guidance requires fair value measurement to be classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. As of December 31, 2019, the Level 1 category included money market funds of $7.4 million, which were included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers. As of December 31, 2019, the Level 2 category included short-term investments $20.3 million and long-term investments of $5.3 million, which were comprised of certificates of deposit, government and agency securities. Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. As of December 31, 2019, the Company’s Level 3 financial instruments measured at fair value on the Condensed Consolidated Balance Sheets consisted of the contingent consideration liability related to the acquisition of MikaMonu. The fair value of the contingent consideration liability was initially determined as of the acquisition date using unobservable inputs. These inputs included the estimated amount and timing of future cash flows, the probability of success (achievement of the various contingent events) and a risk-adjusted discount rate of approximately 14.8% used to adjust the probability-weighted cash flows to their present value. Subsequent to the acquisition date, at each reporting period, the contingent consideration liability is re-measured to fair value with changes recorded in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The contingent consideration liability is included in contingent consideration, non-current on the Consolidated Balance Sheet at December 31, 2019 and March 31, 2019 in the amount of $3.8 million and $3.7 million, respectively, and is included in accrued expenses and other liabilities at March 31, 2019 in the amount of $492,000. The fair value of financial assets measured on a recurring basis is as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 7,358 $ 7,358 $ — $ — Marketable securities 25,665 — 25,665 — Total $ 33,023 $ 7,358 $ 25,665 $ — Liabilities: Contingent consideration $ 3,793 $ — $ — $ 3,793 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs March 31, 2019 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 4,090 $ 4,090 $ — $ — Marketable securities 28,343 — 28,343 — Total $ 32,433 $ 4,090 $ 28,343 $ — Liabilities: Contingent consideration $ 4,206 $ — $ — $ 4,206 The following table sets forth the changes in fair value of contingent consideration for the nine months ended December 31, 2019 or December 31, 2018: Nine Months Ended December 31, 2019 2018 (In thousands) Contingent consideration, beginning of period $ 4,206 $ 5,514 Change due to accretion 87 111 Payment of contingent consideration (500) (1,129) Contingent consideration, end of period $ 3,793 $ 4,496 Short-term and long-term investments All of the Company’s short-term and long-term investments are classified as available-for-sale. Available-for-sale debt securities with maturities greater than twelve months are classified as long-term investments when they are not intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrecognized gains (losses), net of tax, as a component of accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets. The Company had money market funds of $7.4 million and $4.1 million at December 31, 2019 and March 31, 2019, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when declines are determined to be other-than-temporary. The following table summarizes the Company’s available-for-sale investments: December 31, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Certificates of deposit $ 13,500 $ 32 — $ 13,532 Agency bonds 6,793 18 6,811 Total short-term investments $ 20,293 $ 50 $ — $ 20,343 Long-term investments: Certificates of deposit $ 1,990 $ 29 $ — $ 2,019 Agency bonds 2,033 — (2) 2,031 Supranational obligations 1,273 — (1) 1,272 Total long-term investments $ 5,296 $ 29 $ (3) $ 5,322 March 31, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Certificates of deposit $ 16,500 $ 4 $ (24) $ 16,480 Supranational obligations 2,867 — (1) 2,866 Total short-term investments $ 19,367 $ 4 $ (25) $ 19,346 Long-term investments: Certificates of deposit $ 6,000 $ 23 $ (4) $ 6,019 Agency bonds 2,968 11 (1) 2,978 Total long-term investments $ 8,968 $ 34 $ (5) $ 8,997 The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position as of December 31, 2019 and March 31, 2019, respectively. December 31, 2019 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) Certificates of deposit $ 2,250 $ (1) $ $ — $ 2,250 $ (1) Supranational obligations 1,272 — — — 1,272 — Agency bonds 2,031 (2) — — 2,031 (2) $ 5,553 $ (3) $ — $ — $ 5,553 $ (3) March 31, 2019 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) Certificates of deposit $ 2,998 $ (2) $ 7,974 $ (26) $ 10,972 $ (28) Supranational obligations 2,866 (1) — — 2,866 (1) Agency bonds 1,501 (1) — — 1,501 (1) $ 7,365 $ (4) $ 7,974 $ (26) $ 15,339 $ (30) The Company’s investment portfolio consists of both corporate and governmental securities that have a maximum maturity of three years. All unrealized gains and losses are due to changes in interest rates and bond yields. Subject to normal credit risks, the Company has the ability to realize the full value of all these investments upon maturity. The deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $(17,000) and $(2,000) at December 31, 2019 and March 31, 2019, respectively. As of December 31, 2019, contractual maturities of the Company’s available-for-sale investments were as follows: Fair Cost Value (In thousands) Maturing within one year $ 20,293 $ 20,343 Maturing in one to three years 5,296 5,322 $ 25,589 $ 25,665 The Company classifies its short-term investments as “available-for-sale” as they are intended to be available for use in current operations. |
8. LEASES
8. LEASES | 9 Months Ended |
Dec. 31, 2019 | |
LEASES | |
NOTE 8 - LEASES | NOTE 8—LEASES The Company has operating leases for corporate offices, research and development facilities, certain equipment and software. The Company’s leases have remaining lease terms of 8 months to 28 months, some of which include options to extend for up to 5 years. Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 (In thousands) Operating Leases Operating lease right-of-use assets $ Lease liabilities-current $ Lease liabilities-non-current Total operating lease liabilities $ The following table provides the details of lease costs: Three months ended Nine months ended December 31, 2019 December 31, 2019 (In thousands) (In thousands) Operating lease cost $ $ Short-term lease cost $ $ The following table provides other information related to leases: Nine months ended December 31, 2019 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ Right-of-use assets obtained in exchange for lease obligations Operating leases $ Weighted-average remaining lease term (years): Operating leases Weighted-average discount rate: Operating leases The following table provides the maturities of the Company’s operating lease liabilities as of December 31, 2019: Operating Lease Liabilities Fiscal Year (In thousands) 2020 (Remaining three months) $ 2021 2022 2023 Total undiscounted future cash flows Less: Imputed interest Present value of undiscounted future cash flows $ Presentation on statement of financial position Current $ Non-current $ The following table provides the future minimum lease payments under noncancelable operating leases with lease terms in excess of one year at March 31, 2019 in accordance with ASC 840: Operating Fiscal Year Ending March 31, Leases (In thousands) 2020 $ 477 2021 338 2022 83 2023 7 Total $ 905 Rent expense for the three months and nine months ended December 31, 2018 was $154,000 and $415,000, respectively. The terms of the facility leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period. |
9. COMMITMENTS AND CONTINGENCIE
9. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 9 - COMMITMENTS AND CONTINGENCIES | NOTE 9—COMMITMENTS AND CONTINGENCIES Indemnification obligations The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold and certain intellectual property rights. In each of these circumstances, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. It is not possible to predict the maximum potential amount of future payments that may be required under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on its business, financial condition, cash flows or results of operations. Product warranties The Company warrants its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs and the accrued warranty liability were not material as of December 31, 2019 and March 31, 2019 and for the three and nine months ended December 31, 2019 or 2018. |
10. STOCK-BASED COMPENSATION
10. STOCK-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION | |
NOTE 10 - STOCK-BASED COMPENSATION | NOTE 10—STOCK-BASED COMPENSATION As of December 31, 2019, 2,647,724 shares of common stock were available for grant under the Company’s 2016 Equity Incentive Plan. The following table summarizes the Company’s stock option activities for the nine months ended December 31, 2019: Weighted Number of Shares Average Weighted Shares Underlying Remaining Average Available for Options Contractual Exercise Intrinsic Grant Outstanding Life (Years) Price Value Balance at March 31, 2019 3,426,548 8,017,029 $ 5.77 Granted (850,798) 850,798 $ 8.12 Exercised — (676,379) $ 4.25 $ 2,377,744 Forfeited 71,974 (80,779) $ 7.30 Balance at December 31, 2019 2,647,724 8,110,669 5.61 $ 6.13 Options vested and exercisable 5,166,480 4.08 $ 5.66 $ 7,711,084 Options vested and expected to vest 8,033,620 5.58 $ 6.12 $ 9,230,693 The weighted average fair value per underlying share of options granted during the three months ended December 31, 2019 and 2018 was $2.66 and $2.16, respectively, and $2.84 and $2.39 for the nine months ended December 31, 2019 and 2018, respectively. Options outstanding by exercise price at December 31, 2019 were as follows: Number of Options Outstanding Options Exercisable Shares Weighted Weighted Average Weighted Underlying Average Remaining Number Average Options Exercise Contractual Vested and Exercise Exercise Price Outstanding Price Life (Years) Exercisable Price $ 3.40 - 4.81 944,806 $ 4.07 4.22 927,602 $ 4.08 $ 4.90 - 4.99 1,339,096 $ 4.97 5.39 897,247 $ 4.96 $ 5.13 - 5.59 959,726 $ 5.31 4.71 917,001 $ 5.32 $ 5.69 - 6.16 853,297 $ 5.93 4.71 662,608 $ 5.91 $ 6.24 - 6.70 1,403,175 $ 6.58 5.35 788,255 $ 6.49 $ 6.82 - 7.26 1,314,685 $ 7.05 5.50 737,638 $ 6.93 $ 7.40 - 7.88 482,551 $ 7.67 8.90 84,245 $ 7.63 $ 8.09 86,860 $ 8.09 8.08 43,304 $ 8.09 $ 8.30 617,893 $ 8.30 9.58 - $ - $ 9.20 108,580 $ 9.20 1.08 108,580 $ 9.20 8,110,669 $ 5,166,480 $ The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In Thousands) Cost of revenues $ 77 $ 71 $ $ 185 Research and development 347 330 974 Selling, general and administrative 205 191 Total $ 629 $ 592 $ 1,922 $ 1,686 As stock-based compensation expense recognized in the Condensed Consolidated Statement of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures in accordance with authoritative guidance. The Company estimates forfeitures at the time of grant and revises the original estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. No tax benefit related to stock-based compensation was recognized in the nine months ended December 31, 2019 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in either of these periods. Compensation cost capitalized within inventory at December 31, 2019 was immaterial. As of December 31, 2019, the Company’s total unrecognized compensation cost was $5.1 million, which will be recognized over a weighted average period of 2.03 years. The Company calculated the fair value of stock-based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Stock Option Plans: Risk-free interest rate % % - % - % Expected life (in years) Volatility % % - % - % Dividend yield — % — % — % — % Employee Stock Purchase Plan: Risk-free interest rate % % - % - % Expected life (in years) Volatility % % - % - % Dividend yield — % — % — % — % |
11. RELATED PARTY TRANSACTION
11. RELATED PARTY TRANSACTION | 9 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTION | |
NOTE 11 - RELATED PARTY TRANSACTION | NOTE 11—RELATED PARTY TRANSACTION The Company incurred non-recurring engineering service expense of approximately $16,000 and $243,000, respectively, during the three months and nine months ended December 31, 2019 from Wistron Neweb Corp (“WNC”) in connection with the design and development and delivery of prototypes of a 167mm single-APU PCIe board, Gemini I™, to be used in the Company’s in-place associative computing product, Haydn Hsieh, a member of the Company’s board of directors, is the Chairman and Chief Strategy Officer of WNC. |
12. SEGMENT AND GEOGRAPHIC INFO
12. SEGMENT AND GEOGRAPHIC INFORMATION | 9 Months Ended |
Dec. 31, 2019 | |
SEGMENT AND GEOGRAPHIC INFORMATION | |
NOTE 12 - SEGMENT AND GEOGRAPHIC INFORMATION | NOTE 12—SEGMENT AND GEOGRAPHIC INFORMATION Based on its operating management and financial reporting structure, the Company has determined that it has one reportable business segment: the design, development and sale of integrated circuits. The following is a summary of net revenues by geographic area based on the location to which product is shipped: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands) United States $ 4,408 $ 4,442 $ 12,794 $ 13,261 China 1,221 1,374 4,590 3,391 Singapore 766 1,186 5,538 6,207 Netherlands 417 4,214 5,169 8,756 Germany 2,958 3,126 5,870 6,070 Rest of the world 279 360 847 1,115 $ 10,049 $ 14,702 $ 34,808 $ 38,800 All sales are denominated in United States dollars. |
1. THE COMPANY AND SUMMARY OF_2
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
The Company And Summary Of Significant Accounting Policies | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019. The consolidated results of operations for the nine months ended December 31, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year. |
Significant accounting policies | Significant accounting policies Except for the accounting policy for leases, which was updated as a result of adopting a new accounting standard related to leases, there have been no material changes to our significant accounting policies that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019. See “Recent accounting pronouncements” below for additional information on the impact of the adoption of the new accounting standard for leases on the Company’s consolidated financial statements. |
Recent accounting pronouncements | Recent accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” as part of its initiative to reduce complexity in the accounting standards. The standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have upon its financial position and results of operations, if any . In August 2018, FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The standard amends the disclosure requirements for recurring and nonrecurring fair value measurements by removing, modifying, and adding certain disclosures. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Company’s first presentation of changes in stockholders' equity was included in the Form 10-Q for the quarter ended June 30, 2019. In January 2017, the FASB issued ASU No. 2017-04, " Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The standard eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not anticipate the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13 , “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted beginning April 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842) .” The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, “ Elements of Financial Statements ,” and, therefore, recognition of those lease assets and lease liabilities represents a change of previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements," which provides clarifications and improvements to ASU 2016-02 including allowing entities to elect an additional transition method, a modified retrospective approach, that permits changes to be applied by means of a cumulative-effect adjustment recorded in retained earnings as of the beginning of the fiscal year of adoption. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with Leases (Topic 840) ("ASC 840"), including the disclosure requirements of ASC 840. The Company adopted Topic 842 as of April 1, 2019 and applied the modified retrospective approach to all leases existing at, or entered into on or after, the date of adoption of April 1, 2019. The Company did not restate comparative periods, as permitted by ASU 2018-11, and elected the package of practical expedients permitted under the transition guidance within the new standard and did not reassess whether any contracts that existed prior to adoption have or contain leases or the classification of existing leases. Further, the Company made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. The Company will recognize those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. As a result of adoption of this standard and election of the transition practical expedients, the Company recognized right-of-use (“ROU”) assets and lease liabilities for those leases classified as operating leases under ASC Topic 840 that continued to be classified as operating leases under ASC Topic 842 at the date of initial application. The Company does not have any leases classified as a capital lease under ASC 840 and therefore has no leases classified as a “finance lease” under the new standard. In applying the alternative modified retrospective transition method, the Company measured lease liabilities at the present value of the sum of remaining minimum rental payments (as defined under ASC Topic 840). The present value of lease liabilities has been measured using the Company’s incremental borrowing rates as of April 1, 2019 (the date of initial application). Additionally, ROU assets for these operating leases have been measured as the initial measurement of applicable lease liabilities adjusted for any prepaid or accrued rent. Upon adoption of Topic 842, the Company recognized ROU assets of approximately $1.1 million and lease liabilities of approximately $1.1 million on the Company’s Condensed Consolidated Balance Sheets as of April 1, 2019, with no material impact to its Condensed Consolidated Statements of Operations. |
2. REVENUE RECOGNITION (Tables)
2. REVENUE RECOGNITION (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
REVENUE RECOGNITION. | |
Summary of revenue disaggregated by customer type | Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands) Contract manufacturers $ 3,022 $ 6,699 $ 11,745 $ 16,122 Distribution 6,603 7,764 21,346 21,982 OEMs 424 239 1,717 696 $ 10,049 $ 14,702 $ 34,808 $ 38,800 |
3. NET INCOME (LOSS) PER COMM_2
3. NET INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
NET INCOME (LOSS) PER COMMON SHARE | |
Basic and diluted net income (loss) per share | Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands, except per share amounts) Net income (loss) $ (4,620) $ 2,262 $ (6,513) $ 265 Denominators: Weighted average shares—Basic 23,096 21,979 22,894 21,798 Dilutive effect of employee stock options — 784 — 1,335 Dilutive effect of employee stock purchase plan options — 6 — 6 Weighted average shares—Dilutive 23,096 22,769 22,894 23,139 Net income (loss) per common share—Basic $ (0.20) $ 0.10 $ (0.28) $ 0.01 Net income (loss) per common share—Diluted $ (0.20) $ 0.10 $ (0.28) $ 0.01 |
Anti-dilutive shares | Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands) Shares underlying options and ESPP shares 4,048 3,961 3,762 2,470 |
4. BALANCE SHEET DETAIL (Tables
4. BALANCE SHEET DETAIL (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
BALANCE SHEET DETAIL | |
Schedule of inventories | December 31, 2019 March 31, 2019 (In thousands) Inventories: Work-in-progress $ 1,791 $ 1,983 Finished goods 2,727 3,690 Inventory at distributors 3 12 $ 4,521 $ 5,685 |
Schedule of accounts receivable, net | December 31, 2019 March 31, 2019 (In thousands) Accounts receivable, net: Accounts receivable $ 5,468 $ 7,441 Less: Allowances for doubtful accounts and other (70) (102) $ 5,398 $ 7,339 |
Schedule of prepaid expenses and other current assets | December 31, 2019 March 31, 2019 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ 988 $ 535 Prepaid income taxes 24 39 Escrow deposit — 1,000 Other receivables 273 321 Other prepaid expenses and other current assets 1,263 605 $ 2,548 $ 2,500 |
Schedule of property and equipment, net | December 31, 2019 March 31, 2019 (In thousands) Property and equipment, net: Computer and other equipment $ 18,156 $ 19,086 Software 4,066 4,058 Land 3,900 3,900 Building and building improvements 3,726 3,718 Furniture and fixtures 102 102 Leasehold improvements 872 848 30,822 31,712 Less: Accumulated depreciation (22,467) (22,711) $ 8,355 $ 9,001 |
Schedule of other assets | December 31, 2019 March 31, 2019 (In thousands) Other assets: Non-current deferred income taxes 34 35 Deposits 128 125 $ 162 $ 160 |
Schedule of intangible assets | The following tables summarize the components of intangible assets and related accumulated amortization balances at December 31, 2019 and March 31, 2019 (in thousands): As of December 31, 2019 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (1,673) 2,547 Software 80 (80) — Total $ 4,890 $ (2,343) $ 2,547 As of March 31, 2019 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (1,498) 2,722 Software 80 (80) — Total $ 4,890 $ (2,168) $ 2,722 |
Estimated future amortization expense of intangible assets | As of December 31, 2019, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Fiscal year ending March 31, 2020 (3 months remaining) $ 58 2021 233 2022 233 2023 233 2024 233 Thereafter 1,557 Total $ 2,547 |
Schedule of accrued expenses and other liabilities | December 31, 2019 March 31, 2019 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ 3,674 $ 4,659 Purchased intellectual property 2,432 — Accrued professional fees 7 60 Accrued commissions 355 304 Contingent consideration — 492 Accrued retention payment — 415 Miscellaneous accrued expenses 833 939 $ 7,301 $ 6,869 |
7. FINANCIAL INSTRUMENTS (Table
7. FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
FINANCIAL INSTRUMENTS | |
Schedule of fair value of financial assets measured on a recurring basis | The fair value of financial assets measured on a recurring basis is as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 7,358 $ 7,358 $ — $ — Marketable securities 25,665 — 25,665 — Total $ 33,023 $ 7,358 $ 25,665 $ — Liabilities: Contingent consideration $ 3,793 $ — $ — $ 3,793 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs March 31, 2019 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 4,090 $ 4,090 $ — $ — Marketable securities 28,343 — 28,343 — Total $ 32,433 $ 4,090 $ 28,343 $ — Liabilities: Contingent consideration $ 4,206 $ — $ — $ 4,206 |
Schedule of changes in fair value of contingent consideration | Nine Months Ended December 31, 2019 2018 (In thousands) Contingent consideration, beginning of period $ 4,206 $ 5,514 Change due to accretion 87 111 Payment of contingent consideration (500) (1,129) Contingent consideration, end of period $ 3,793 $ 4,496 |
Schedule of available-for-sale investments | December 31, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Certificates of deposit $ 13,500 $ 32 — $ 13,532 Agency bonds 6,793 18 6,811 Total short-term investments $ 20,293 $ 50 $ — $ 20,343 Long-term investments: Certificates of deposit $ 1,990 $ 29 $ — $ 2,019 Agency bonds 2,033 — (2) 2,031 Supranational obligations 1,273 — (1) 1,272 Total long-term investments $ 5,296 $ 29 $ (3) $ 5,322 March 31, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Certificates of deposit $ 16,500 $ 4 $ (24) $ 16,480 Supranational obligations 2,867 — (1) 2,866 Total short-term investments $ 19,367 $ 4 $ (25) $ 19,346 Long-term investments: Certificates of deposit $ 6,000 $ 23 $ (4) $ 6,019 Agency bonds 2,968 11 (1) 2,978 Total long-term investments $ 8,968 $ 34 $ (5) $ 8,997 |
Schedule of unrealized losses and fair value of investments | December 31, 2019 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) Certificates of deposit $ 2,250 $ (1) $ $ — $ 2,250 $ (1) Supranational obligations 1,272 — — — 1,272 — Agency bonds 2,031 (2) — — 2,031 (2) $ 5,553 $ (3) $ — $ — $ 5,553 $ (3) March 31, 2019 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) Certificates of deposit $ 2,998 $ (2) $ 7,974 $ (26) $ 10,972 $ (28) Supranational obligations 2,866 (1) — — 2,866 (1) Agency bonds 1,501 (1) — — 1,501 (1) $ 7,365 $ (4) $ 7,974 $ (26) $ 15,339 $ (30) |
Schedule of contractual maturities of the available-for-sale investments | Fair Cost Value (In thousands) Maturing within one year $ 20,293 $ 20,343 Maturing in one to three years 5,296 5,322 $ 25,589 $ 25,665 |
8. LEASES (Tables)
8. LEASES (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Summary of balance sheet information related to leases | As of December 31, 2019 (In thousands) Operating Leases Operating lease right-of-use assets $ Lease liabilities-current $ Lease liabilities-non-current Total operating lease liabilities $ |
Summary of components of lease costs | Three months ended Nine months ended December 31, 2019 December 31, 2019 (In thousands) (In thousands) Operating lease cost $ $ Short-term lease cost $ $ |
Summary of other information related to leases | Nine months ended December 31, 2019 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ Right-of-use assets obtained in exchange for lease obligations Operating leases $ Weighted-average remaining lease term (years): Operating leases Weighted-average discount rate: Operating leases |
Summary of maturities of the lease liabilities | Operating Lease Liabilities Fiscal Year (In thousands) 2020 (Remaining three months) $ 2021 2022 2023 Total undiscounted future cash flows Less: Imputed interest Present value of undiscounted future cash flows $ Presentation on statement of financial position Current $ Non-current $ |
Future minimum lease payments under noncancelable operating leases | Operating Fiscal Year Ending March 31, Leases (In thousands) 2020 $ 477 2021 338 2022 83 2023 7 Total $ 905 |
10. STOCK-BASED COMPENSATION (T
10. STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION | |
Summary of stock option activities | Weighted Number of Shares Average Weighted Shares Underlying Remaining Average Available for Options Contractual Exercise Intrinsic Grant Outstanding Life (Years) Price Value Balance at March 31, 2019 3,426,548 8,017,029 $ 5.77 Granted (850,798) 850,798 $ 8.12 Exercised — (676,379) $ 4.25 $ 2,377,744 Forfeited 71,974 (80,779) $ 7.30 Balance at December 31, 2019 2,647,724 8,110,669 5.61 $ 6.13 Options vested and exercisable 5,166,480 4.08 $ 5.66 $ 7,711,084 Options vested and expected to vest 8,033,620 5.58 $ 6.12 $ 9,230,693 |
Schedule of options outstanding by exercise price | Number of Options Outstanding Options Exercisable Shares Weighted Weighted Average Weighted Underlying Average Remaining Number Average Options Exercise Contractual Vested and Exercise Exercise Price Outstanding Price Life (Years) Exercisable Price $ 3.40 - 4.81 944,806 $ 4.07 4.22 927,602 $ 4.08 $ 4.90 - 4.99 1,339,096 $ 4.97 5.39 897,247 $ 4.96 $ 5.13 - 5.59 959,726 $ 5.31 4.71 917,001 $ 5.32 $ 5.69 - 6.16 853,297 $ 5.93 4.71 662,608 $ 5.91 $ 6.24 - 6.70 1,403,175 $ 6.58 5.35 788,255 $ 6.49 $ 6.82 - 7.26 1,314,685 $ 7.05 5.50 737,638 $ 6.93 $ 7.40 - 7.88 482,551 $ 7.67 8.90 84,245 $ 7.63 $ 8.09 86,860 $ 8.09 8.08 43,304 $ 8.09 $ 8.30 617,893 $ 8.30 9.58 - $ - $ 9.20 108,580 $ 9.20 1.08 108,580 $ 9.20 8,110,669 $ 5,166,480 $ |
Summary of stock-based compensation expense by line item | Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In Thousands) Cost of revenues $ 77 $ 71 $ $ 185 Research and development 347 330 974 Selling, general and administrative 205 191 Total $ 629 $ 592 $ 1,922 $ 1,686 |
Schedule of weighted average assumptions | Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Stock Option Plans: Risk-free interest rate % % - % - % Expected life (in years) Volatility % % - % - % Dividend yield — % — % — % — % Employee Stock Purchase Plan: Risk-free interest rate % % - % - % Expected life (in years) Volatility % % - % - % Dividend yield — % — % — % — % |
12. SEGMENT AND GEOGRAPHIC IN_2
12. SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
SEGMENT AND GEOGRAPHIC INFORMATION | |
Net revenues by geographic area | Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (In thousands) United States $ 4,408 $ 4,442 $ 12,794 $ 13,261 China 1,221 1,374 4,590 3,391 Singapore 766 1,186 5,538 6,207 Netherlands 417 4,214 5,169 8,756 Germany 2,958 3,126 5,870 6,070 Rest of the world 279 360 847 1,115 $ 10,049 $ 14,702 $ 34,808 $ 38,800 |
1. THE COMPANY AND SUMMARY OF_3
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 01, 2019 |
The Company And Summary Of Significant Accounting Policies | ||
Operating lease right-of-use assets | $ 766 | $ 1,100 |
Lease liabilities, operating lease | $ 805 | $ 1,100 |
2. REVENUE RECOGNITION (Details
2. REVENUE RECOGNITION (Details) | 9 Months Ended |
Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true/false] | true |
Warranty period | 3 years |
SRAM products | Customer Concentration Risk | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Concentration risk percentage | 99.00% |
Sales revenue goods | Customer Concentration Risk | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Concentration risk percentage | 40.00% |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 30 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 60 days |
2. REVENUE RECOGNITION - Revenu
2. REVENUE RECOGNITION - Revenue disaggregated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 10,049 | $ 14,702 | $ 34,808 | $ 38,800 |
Contract Manufacturers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 3,022 | 6,699 | 11,745 | 16,122 |
Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 6,603 | 7,764 | 21,346 | 21,982 |
OEMs | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 424 | $ 239 | $ 1,717 | $ 696 |
3. NET INCOME (LOSS) PER COMM_3
3. NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income (loss) | $ (4,620) | $ 2,262 | $ (6,513) | $ 265 |
Weighted average shares - Basic | 23,096 | 21,979 | 22,894 | 21,798 |
Weighted average shares - Dilutive | 23,096 | 22,769 | 22,894 | 23,139 |
Net income (loss) per common share - Basic | $ (0.20) | $ 0.10 | $ (0.28) | $ 0.01 |
Net income (loss) per common share - Diluted | $ (0.20) | $ 0.10 | $ (0.28) | $ 0.01 |
Employee stock options | ||||
Dilutive effect of options | 784 | 1,335 | ||
Employee stock purchase plan options | ||||
Dilutive effect of options | 6 | 6 |
3. NET INCOME (LOSS) PER COMM_4
3. NET INCOME (LOSS) PER COMMON SHARE - Shares underlying options (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
NET INCOME (LOSS) PER COMMON SHARE | ||||
Shares underlying options and ESPP shares | 4,048 | 3,961 | 3,762 | 2,470 |
4. BALANCE SHEET DETAIL - Inven
4. BALANCE SHEET DETAIL - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Inventories: | ||
Work-in-progress | $ 1,791 | $ 1,983 |
Finished goods | 2,727 | 3,690 |
Inventory at distributors | 3 | 12 |
Total inventory | $ 4,521 | $ 5,685 |
4. BALANCE SHEET DETAIL - Accou
4. BALANCE SHEET DETAIL - Accounts receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Accounts receivable, net: | ||
Accounts receivable | $ 5,468 | $ 7,441 |
Less: Allowances for doubtful accounts and other | (70) | (102) |
Total accounts receivable, net | $ 5,398 | $ 7,339 |
4. BALANCE SHEET DETAIL - Prepa
4. BALANCE SHEET DETAIL - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Prepaid expenses and other current assets: | ||
Prepaid tooling and masks | $ 988 | $ 535 |
Prepaid income taxes | 24 | 39 |
Escrow deposit | 1,000 | |
Other receivables | 273 | 321 |
Other prepaid expenses and other current assets | 1,263 | 605 |
Total prepaid expenses and other current assets | $ 2,548 | $ 2,500 |
4. BALANCE SHEET DETAIL - Prope
4. BALANCE SHEET DETAIL - Property and equipment, net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Property and equipment, net: | |||||
Property and equipment, gross | $ 30,822,000 | $ 30,822,000 | $ 31,712,000 | ||
Less: Accumulated depreciation | (22,467,000) | (22,467,000) | (22,711,000) | ||
Total property and equipment, net | 8,355,000 | 8,355,000 | 9,001,000 | ||
Depreciation | 293,000 | $ 317,000 | 904,000 | $ 865,000 | |
Computer and other equipment | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 18,156,000 | 18,156,000 | 19,086,000 | ||
Software | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 4,066,000 | 4,066,000 | 4,058,000 | ||
Land | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 3,900,000 | 3,900,000 | 3,900,000 | ||
Building and building improvements | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 3,726,000 | 3,726,000 | 3,718,000 | ||
Furniture and fixtures | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 102,000 | 102,000 | 102,000 | ||
Leasehold improvements | |||||
Property and equipment, net: | |||||
Property and equipment, gross | $ 872,000 | $ 872,000 | $ 848,000 |
4. BALANCE SHEET DETAIL - Other
4. BALANCE SHEET DETAIL - Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Other assets: | ||
Non-current deferred income taxes | $ 34 | $ 35 |
Deposits | 128 | 125 |
Total other assets | $ 162 | $ 160 |
4. BALANCE SHEET DETAIL - Intan
4. BALANCE SHEET DETAIL - Intangible assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Gross Carrying Amount | $ 4,890,000 | $ 4,890,000 | $ 4,890,000 | ||
Accumulated Amortization | (2,343,000) | (2,343,000) | (2,168,000) | ||
Total | 2,547,000 | 2,547,000 | 2,722,000 | ||
Amortization of intangible assets | 58,000 | $ 58,000 | 175,000 | $ 208,000 | |
Product designs | |||||
Gross Carrying Amount | 590,000 | 590,000 | 590,000 | ||
Accumulated Amortization | (590,000) | (590,000) | (590,000) | ||
Patents | |||||
Gross Carrying Amount | 4,220,000 | 4,220,000 | 4,220,000 | ||
Accumulated Amortization | (1,673,000) | (1,673,000) | (1,498,000) | ||
Total | 2,547,000 | 2,547,000 | 2,722,000 | ||
Software. | |||||
Gross Carrying Amount | 80,000 | 80,000 | 80,000 | ||
Accumulated Amortization | $ (80,000) | $ (80,000) | $ (80,000) |
4. BALANCE SHEET DETAIL - Futur
4. BALANCE SHEET DETAIL - Future amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Fiscal year ending March 31, | ||
2020 (3 months remaining) | $ 58 | |
2021 | 233 | |
2022 | 233 | |
2023 | 233 | |
2024 | 233 | |
Thereafter | 1,557 | |
Total | $ 2,547 | $ 2,722 |
4. BALANCE SHEET DETAIL - Accru
4. BALANCE SHEET DETAIL - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Accrued expenses and other liabilities: | ||
Accrued compensation | $ 3,674 | $ 4,659 |
Purchased intellectual property | 2,432 | |
Accrued professional fees | 7 | 60 |
Accrued commissions | 355 | 304 |
Contingent consideration | 492 | |
Accrued retention payment | 415 | |
Miscellaneous accrued expenses | 833 | 939 |
Total accrued expenses and other liabilities | $ 7,301 | $ 6,869 |
5. GOODWILL (Details)
5. GOODWILL (Details) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)segment | |
GOODWILL | ||
Number of reporting units | segment | 1 | |
Goodwill | $ 7,978,000 | $ 7,978,000 |
Goodwill impairment | $ 0 |
6. INCOME TAXES - Unrecognized
6. INCOME TAXES - Unrecognized tax benefits (Details) - USD ($) | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
INCOME TAXES | |||
Unrecognized tax benefits, current | $ 0 | $ 0 | |
Unrecognized tax benefits, noncurrent | 627,000 | 622,000 | |
Deferred tax assets unrecognized tax benefit | 2,500,000 | ||
Net deferred tax assets | 8,300,000 | 6,700,000 | |
Valuation allowance | $ (8,200,000) | $ (6,700,000) | |
Effective annual income tax rate (as a percentage) | (2.20%) | (22.60%) |
7. FINANCIAL INSTRUMENTS (Detai
7. FINANCIAL INSTRUMENTS (Details) | Dec. 31, 2019USD ($)item | Mar. 31, 2019USD ($) |
Fair value measurements | ||
Short-term investments | $ 20,343,000 | $ 19,346,000 |
Long-term investments | $ 5,322,000 | 8,997,000 |
Measurement input | ||
Fair value measurements | ||
Discount rate (as a percent) | item | 0.148 | |
Level 2 | Marketable securities | ||
Fair value measurements | ||
Short-term investments | $ 20,300,000 | |
Long-term investments | 5,300,000 | |
Other accrued expenses | ||
Fair value measurements | ||
Contingent consideration liability | 3,800,000 | 3,700,000 |
Accrued expenses and other liabilities | ||
Fair value measurements | ||
Contingent consideration liability | 492,000 | |
Recurring | ||
Fair value measurements | ||
Assets | 33,023,000 | 32,433,000 |
Liabilities | 3,793,000 | 4,206,000 |
Recurring | Money market funds | ||
Fair value measurements | ||
Money market funds | 7,358,000 | 4,090,000 |
Recurring | Marketable securities | ||
Fair value measurements | ||
Marketable securities | 25,665,000 | 28,343,000 |
Recurring | Level 1 | ||
Fair value measurements | ||
Assets | 7,358,000 | 4,090,000 |
Recurring | Level 1 | Money market funds | ||
Fair value measurements | ||
Money market funds | 7,358,000 | 4,090,000 |
Recurring | Level 2 | ||
Fair value measurements | ||
Assets | 25,665,000 | 28,343,000 |
Recurring | Level 2 | Marketable securities | ||
Fair value measurements | ||
Marketable securities | 25,665,000 | 28,343,000 |
Recurring | Level 3 | ||
Fair value measurements | ||
Liabilities | $ 3,793,000 | $ 4,206,000 |
7. FINANCIAL INSTRUMENTS - Chan
7. FINANCIAL INSTRUMENTS - Change in contingent consideration (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in fair value of contingent consideration | ||
Contingent consideration, beginning of period | $ 4,206 | $ 5,514 |
Change due to accretion | 87 | 111 |
Payment of contingent consideration | (500) | (1,129) |
Contingent consideration, end of period | $ 3,793 | $ 4,496 |
7. FINANCIAL INSTRUMENTS - Avai
7. FINANCIAL INSTRUMENTS - Available-for-sale investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Available-for-sale investments | ||
Cost | $ 25,589 | |
Total | 25,665 | |
Short-term investments | ||
Available-for-sale investments | ||
Cost | 20,293 | $ 19,367 |
Gross Unrealized Gains | 50 | 4 |
Gross Unrealized Losses | (25) | |
Total | 20,343 | 19,346 |
Short-term investments | Agency bonds | ||
Available-for-sale investments | ||
Cost | 6,793 | |
Gross Unrealized Gains | 18 | |
Total | 6,811 | |
Short-term investments | Supranational obligations | ||
Available-for-sale investments | ||
Cost | 2,867 | |
Gross Unrealized Losses | (1) | |
Total | 2,866 | |
Short-term investments | Certificates of deposit | ||
Available-for-sale investments | ||
Cost | 13,500 | 16,500 |
Gross Unrealized Gains | 32 | 4 |
Gross Unrealized Losses | (24) | |
Total | 13,532 | 16,480 |
Long-term investment | ||
Available-for-sale investments | ||
Cost | 5,296 | 8,968 |
Gross Unrealized Gains | 29 | 34 |
Gross Unrealized Losses | (3) | (5) |
Total | 5,322 | 8,997 |
Long-term investment | Agency bonds | ||
Available-for-sale investments | ||
Cost | 2,033 | 2,968 |
Gross Unrealized Gains | 11 | |
Gross Unrealized Losses | (2) | (1) |
Total | 2,031 | 2,978 |
Long-term investment | Supranational obligations | ||
Available-for-sale investments | ||
Cost | 1,273 | |
Gross Unrealized Losses | (1) | |
Total | 1,272 | |
Long-term investment | Certificates of deposit | ||
Available-for-sale investments | ||
Cost | 1,990 | 6,000 |
Gross Unrealized Gains | 29 | 23 |
Gross Unrealized Losses | (4) | |
Total | $ 2,019 | $ 6,019 |
7. FINANCIAL INSTRUMENTS - Unre
7. FINANCIAL INSTRUMENTS - Unrealized losses and fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value | ||
Less Than 12 Months, Fair Value | $ 5,553 | $ 7,365 |
12 Months or Greater, Fair Value | 7,974 | |
Total, Fair Value | 5,553 | 15,339 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 3 | 4 |
12 Months or Greater, Unrealized Loss | 26 | |
Total, Unrealized Loss | 3 | 30 |
Certificates of deposit | ||
Fair Value | ||
Less Than 12 Months, Fair Value | 2,250 | 2,998 |
12 Months or Greater, Fair Value | 7,974 | |
Total, Fair Value | 2,250 | 10,972 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 1 | 2 |
12 Months or Greater, Unrealized Loss | 26 | |
Total, Unrealized Loss | 1 | 28 |
Supranational obligations | ||
Fair Value | ||
Less Than 12 Months, Fair Value | 1,272 | 2,866 |
Total, Fair Value | 1,272 | 2,866 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 1 | |
Total, Unrealized Loss | 1 | |
Agency bonds | ||
Fair Value | ||
Less Than 12 Months, Fair Value | 2,031 | 1,501 |
Total, Fair Value | 2,031 | 1,501 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 2 | 1 |
Total, Unrealized Loss | $ 2 | $ 1 |
7. FINANCIAL INSTRUMENTS - Othe
7. FINANCIAL INSTRUMENTS - Other information (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | |
Other information | ||
Maximum maturity period of investment portfolio | 3 years | |
Deferred tax liability related to unrecognized gains and losses on short-term and long-term investments | $ 17,000 | $ 2,000 |
7. FINANCIAL INSTRUMENTS - Cont
7. FINANCIAL INSTRUMENTS - Contractual maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
FINANCIAL INSTRUMENTS | |
Maturing within one year, Cost | $ 20,293 |
Maturing in one to three years, Cost | 5,296 |
Total | 25,589 |
Maturing within one year, Fair Value | 20,343 |
Maturing in one to three years, Fair Value | 5,322 |
Total | $ 25,665 |
8. LEASES - Operating leases (D
8. LEASES - Operating leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Apr. 01, 2019 | |
Leases | ||
Operating lease, option to extend | true | |
Operating lease, renewal term | 5 years | |
Operating lease right-of-use assets | $ 766 | $ 1,100 |
Lease liabilities, current | 575 | |
Lease liabilities, non-current | 230 | |
Total operating lease liabilities | $ 805 | $ 1,100 |
Minimum | ||
Leases | ||
Operating lease, term of lease | 8 months | |
Maximum | ||
Leases | ||
Operating lease, term of lease | 28 months |
8. LEASES - Lease costs (Detail
8. LEASES - Lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Components of lease costs | ||
Operating lease cost | $ 164 | $ 483 |
Short-term lease cost | 7 | 21 |
Lease costs | $ 171 | $ 504 |
8. LEASES - Other information (
8. LEASES - Other information (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 488 |
Right-of-use assets obtained in exchange for lease obligations - Operating leases | $ 1,228 |
Weighted-average remaining lease term (years) - Operating leases | 1 year 6 months |
Weighted-average discount rate - Operating leases | 6.46% |
8. LEASES - Maturity of lease l
8. LEASES - Maturity of lease liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
Maturity of Lease Liabilities | |||||
2020 (Remaining three months) | $ 162,000 | ||||
2021 | 526,000 | ||||
2022 | 149,000 | ||||
2023 | 7,000 | ||||
Total | 844,000 | ||||
Less: Imputed interest | (39,000) | ||||
Total operating lease liabilities | 805,000 | $ 1,100,000 | |||
Current | 575,000 | ||||
Non-current | $ 230,000 | ||||
Future minimum lease payments | |||||
2020 | $ 477,000 | ||||
2021 | 338,000 | ||||
2022 | 83,000 | ||||
2023 | 7,000 | ||||
Total | $ 905,000 | ||||
Rent expense | $ 154,000 | $ 415,000 |
9. COMMITMENTS AND CONTINGENC_2
9. COMMITMENTS AND CONTINGENCIES - Product warranties (Details) | 9 Months Ended |
Dec. 31, 2019 | |
Product warranties | |
Warranty period | 3 years |
10. STOCK-BASED COMPENSATION -
10. STOCK-BASED COMPENSATION - Stock option activities (Details) | 9 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
STOCK-BASED COMPENSATION | |
Shares available for grant, Beginning | 3,426,548 |
Granted (in shares) | (850,798) |
Forfeited (in shares) | 71,974 |
Shares available for grant, Ending | 2,647,724 |
Number of Shares Underlying Options Outstanding | |
Balance at the beginning of the period (in shares) | 8,017,029 |
Granted (in shares) | 850,798 |
Exercised (in shares) | (676,379) |
Forfeited (in shares) | (80,779) |
Balance at the end of the period (in shares) | 8,110,669 |
Options vested and exercisable (in shares) | 5,166,480 |
Options vested and expected to vest (in shares) | 8,033,620 |
Weighted Average Remaining Contractual Life | |
Options weighted average remaining contractual life | 5 years 7 months 10 days |
Options vested and exercisable | 4 years 29 days |
Options vested and expected to vest | 5 years 6 months 29 days |
Weighted Average Exercise Price | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 5.77 |
Granted (in dollars per share) | $ / shares | 8.12 |
Exercised (in dollars per share) | $ / shares | 4.25 |
Forfeited (in dollars per share) | $ / shares | 7.30 |
Balance at the end of the period (in dollars per share) | $ / shares | 6.13 |
Options vested and exercisable (in dollars per share) | $ / shares | 5.66 |
Options vested and expected to vest (in dollars per share) | $ / shares | $ 6.12 |
Intrinsic Value | |
Exercised (in dollars) | $ | $ 2,377,744 |
Options vested and exercisable (in dollars) | $ | 7,711,084 |
Options vested and expected to vest (in dollars) | $ | $ 9,230,693 |
10. STOCK-BASED COMPENSATION _2
10. STOCK-BASED COMPENSATION - Options outstanding by exercise price (Details) - $ / shares | 9 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | |
Options outstanding by exercise price | ||
Exercise Price (in dollars per share) | $ 6.13 | $ 5.77 |
Number of Shares Underlying Options Outstanding (in shares) | 8,110,669 | |
Options Exercisable, Number Vested and Exercisable (in shares) | 5,166,480 | |
$3.40 - $4.81 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | $ 3.40 | |
Exercise Price, high end of range (in dollars per share) | $ 4.81 | |
Number of Shares Underlying Options Outstanding (in shares) | 944,806 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 4.07 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 2 months 19 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 927,602 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 4.08 | |
$4.90 - $4.99 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | 4.90 | |
Exercise Price, high end of range (in dollars per share) | $ 4.99 | |
Number of Shares Underlying Options Outstanding (in shares) | 1,339,096 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 4.97 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 4 months 21 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 897,247 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 4.96 | |
$5.13 - $5.59 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | 5.13 | |
Exercise Price, high end of range (in dollars per share) | $ 5.59 | |
Number of Shares Underlying Options Outstanding (in shares) | 959,726 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.31 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 8 months 16 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 917,001 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 5.32 | |
$5.69 - $6.16 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | 5.69 | |
Exercise Price, high end of range (in dollars per share) | $ 6.16 | |
Number of Shares Underlying Options Outstanding (in shares) | 853,297 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.93 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 8 months 16 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 662,608 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 5.91 | |
$6.24 - $6.70 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | 6.24 | |
Exercise Price, high end of range (in dollars per share) | $ 6.70 | |
Number of Shares Underlying Options Outstanding (in shares) | 1,403,175 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 6.58 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 4 months 6 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 788,255 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.49 | |
$6.82 - $7.26 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | 6.82 | |
Exercise Price, high end of range (in dollars per share) | $ 7.26 | |
Number of Shares Underlying Options Outstanding (in shares) | 1,314,685 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 7.05 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 6 months | |
Options Exercisable, Number Vested and Exercisable (in shares) | 737,638 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.93 | |
$7.40 - $7.88 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | 7.40 | |
Exercise Price, high end of range (in dollars per share) | $ 7.88 | |
Number of Shares Underlying Options Outstanding (in shares) | 482,551 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 7.67 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 10 months 24 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 84,245 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 7.63 | |
$8.09 | ||
Options outstanding by exercise price | ||
Exercise Price (in dollars per share) | $ 8.09 | |
Number of Shares Underlying Options Outstanding (in shares) | 86,860 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.09 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 29 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 43,304 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.09 | |
$8.30 | ||
Options outstanding by exercise price | ||
Exercise Price (in dollars per share) | $ 8.30 | |
Number of Shares Underlying Options Outstanding (in shares) | 617,893 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.30 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 6 months 29 days | |
$9.20 | ||
Options outstanding by exercise price | ||
Exercise Price (in dollars per share) | $ 9.20 | |
Number of Shares Underlying Options Outstanding (in shares) | 108,580 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.20 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 29 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 108,580 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.20 |
10. STOCK-BASED COMPENSATION _3
10. STOCK-BASED COMPENSATION - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | $ 629 | $ 592 | $ 1,922 | $ 1,686 |
Cost of revenues | ||||
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | 77 | 71 | 184 | 185 |
Research and development | ||||
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | 347 | 330 | 1,143 | 974 |
Selling, general and administrative | ||||
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | $ 205 | $ 191 | $ 595 | $ 527 |
10. STOCK-BASED COMPENSATION _4
10. STOCK-BASED COMPENSATION - Weighted average assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other information | ||||
Income tax benefit recognized from allocation of share-based compensation expense | $ 0 | |||
Windfall tax benefits realized | 0 | |||
Unrecognized compensation costs | $ 5,100 | $ 5,100 | ||
Weighted average period of recognition of unrecognized compensation costs | 2 years 11 days | |||
Weighted average fair value per underlying share of options granted (in dollars per share) | $ 2.66 | $ 2.16 | $ 2.84 | $ 2.39 |
Employee stock options | ||||
Stock-based compensation | ||||
Risk-free interest rate (as a percent) | 1.66% | 2.91% | ||
Risk-free interest rate, low end of range (as a percent) | 1.66% | 2.78% | ||
Risk-free interest rate, high end of range (as a percent) | 2.30% | 2.91% | ||
Expected life | 5 years | 5 years | 5 years | 5 years |
Volatility (as a percent) | 36.50% | 36.40% | ||
Volatility, low end of range (as a percent) | 36.50% | 35.60% | ||
Volatility, high end of range (as a percent) | 37.30% | 36.40% | ||
Employee stock purchase plan options | ||||
Stock-based compensation | ||||
Risk-free interest rate (as a percent) | 1.58% | 2.50% | ||
Risk-free interest rate, low end of range (as a percent) | 1.58% | 2.09% | ||
Risk-free interest rate, high end of range (as a percent) | 2.43% | 2.50% | ||
Expected life | 6 months | 6 months | 6 months | 6 months |
Volatility (as a percent) | 33.50% | 32.60% | ||
Volatility, low end of range (as a percent) | 33.50% | 32.60% | ||
Volatility, high end of range (as a percent) | 43.10% | 37.70% |
11. RELATED PARTY TRANSACTION (
11. RELATED PARTY TRANSACTION (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Non-Recurring Engineering Services | Wistron Neweb Corp | ||
Related Party Transaction [Line Items] | ||
Non-recurring engineering service expense | $ 16,000 | $ 243,000 |
12. SEGMENT AND GEOGRAPHIC IN_3
12. SEGMENT AND GEOGRAPHIC INFORMATION - Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Net revenues by geographic area | ||||
Net revenues | $ 10,049 | $ 14,702 | $ 34,808 | $ 38,800 |
Number of reporting units | segment | 1 | |||
United States | ||||
Net revenues by geographic area | ||||
Net revenues | 4,408 | 4,442 | $ 12,794 | 13,261 |
China | ||||
Net revenues by geographic area | ||||
Net revenues | 1,221 | 1,374 | 4,590 | 3,391 |
Singapore | ||||
Net revenues by geographic area | ||||
Net revenues | 766 | 1,186 | 5,538 | 6,207 |
Netherlands | ||||
Net revenues by geographic area | ||||
Net revenues | 417 | 4,214 | 5,169 | 8,756 |
Germany | ||||
Net revenues by geographic area | ||||
Net revenues | 2,958 | 3,126 | 5,870 | 6,070 |
Rest of the world | ||||
Net revenues by geographic area | ||||
Net revenues | $ 279 | $ 360 | $ 847 | $ 1,115 |