Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 13, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'HITTITE MICROWAVE CORP | ' | ' |
Entity Central Index Key | '0001130866 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1,808,190,310 |
Entity Common Stock, Shares Outstanding | ' | 31,376,729 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $118,600 | $269,157 |
Marketable securities | 353,947 | 140,069 |
Accounts receivable, net of allowance for doubtful accounts of $334 | 36,186 | 30,921 |
Inventories | 76,020 | 65,926 |
Income taxes receivable | 5,991 | 1,566 |
Prepaid expenses and other current assets | 2,997 | 2,761 |
Deferred tax assets | 13,399 | 14,988 |
Total current assets | 607,140 | 525,388 |
Property and equipment, net | 39,433 | 36,294 |
Deferred taxes | 1,725 | 709 |
Other assets | 8,190 | 11,172 |
Total assets | 656,488 | 573,563 |
Current liabilities: | ' | ' |
Accounts payable | 4,971 | 3,205 |
Accrued commissions | 1,567 | 1,645 |
Accrued payroll and benefits | 4,059 | 3,726 |
Accrued other expenses | 4,760 | 7,518 |
Income taxes payable | 193 | 584 |
Customer advances | 3,919 | 1,909 |
Deferred revenue | 2,816 | 2,790 |
Total current liabilities | 22,285 | 21,377 |
Long-term income taxes payable | 5,839 | 412 |
Deferred tax liabilities | 232 | 446 |
Other liabilities | 103 | 124 |
Total liabilities | 28,459 | 22,359 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value: 5,000 shares authorized; no shares issued or outstanding at December 31, 2013 and 2012 | ' | ' |
Common stock, $.01 par value: 200,000 shares authorized; 31,390 and 31,563 shares issued and outstanding at December 31, 2013 and 2012, respectively | 314 | 316 |
Additional paid-in capital | 204,803 | 189,273 |
Accumulated other comprehensive loss | -823 | -464 |
Retained earnings | 423,735 | 362,079 |
Total stockholders' equity | 628,029 | 551,204 |
Total liabilities and stockholders' equity | $656,488 | $573,563 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $334 | $334 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 31,390 | 31,563 |
Common stock, shares outstanding | 31,390 | 31,563 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Revenue | $273,815 | $264,395 | $264,108 |
Cost of revenue | 79,040 | 69,415 | 69,935 |
Gross profit | 194,775 | 194,980 | 194,173 |
Operating expenses: | ' | ' | ' |
Research and development | 49,764 | 49,202 | 38,899 |
Sales and marketing | 23,516 | 23,966 | 22,047 |
General and administrative | 13,855 | 14,598 | 12,078 |
Total operating expenses | 87,135 | 87,766 | 73,024 |
Income from operations | 107,640 | 107,214 | 121,149 |
Interest income | 253 | 182 | 172 |
Other (expense) income, net | -935 | -125 | 430 |
Income before income taxes | 106,958 | 107,271 | 121,751 |
Provision for income taxes | 36,965 | 38,702 | 37,063 |
Net income | $69,993 | $68,569 | $84,688 |
Earnings per share: | ' | ' | ' |
Basic (in dollars per share) | $2.29 | $2.26 | $2.81 |
Diluted (in dollars per share) | $2.25 | $2.22 | $2.77 |
Weighted average shares outstanding: | ' | ' | ' |
Basic (in shares) | 30,609 | 30,359 | 30,178 |
Diluted (in shares) | 31,093 | 30,895 | 30,586 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $69,993 | $68,569 | $84,688 |
Foreign currency translation adjustments | -360 | 570 | -884 |
Unrealized gain on marketable securities, net of tax | 1 | 12 | ' |
Comprehensive income | $69,634 | $69,151 | $83,804 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2010 | $375,752 | $312 | $161,407 | ($162) | $214,195 |
Balance (in shares) at Dec. 31, 2010 | ' | 31,253,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Exercise of stock options | 774 | 1 | 773 | ' | ' |
Exercise of stock options (in shares) | ' | 52,000 | ' | ' | ' |
Foreign currency translation | -884 | ' | ' | -884 | ' |
Stock-based compensation expense | 10,502 | ' | 10,502 | ' | ' |
Net income | 84,688 | ' | ' | ' | 84,688 |
Excess income tax benefit related to stock-based compensation plans | 1,413 | ' | 1,413 | ' | ' |
Issuance of restricted common stock under stock plan, net of forfeitures | ' | 2 | -2 | ' | ' |
Issuance of restricted common stock under stock plan, net of forfeitures (in shares) | ' | 195,000 | ' | ' | ' |
Payment of withholding taxes in connection with vesting of restricted stock | -2,813 | -1 | ' | ' | -2,812 |
Payment of withholding taxes in connection with vesting of restricted stock (in shares) | -52,175 | -52,000 | ' | ' | ' |
Balance at Dec. 31, 2011 | 469,432 | 314 | 174,093 | -1,046 | 296,071 |
Balance (in shares) at Dec. 31, 2011 | ' | 31,448,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Exercise of stock options | 425 | 1 | 424 | ' | ' |
Exercise of stock options (in shares) | ' | 27,000 | ' | ' | ' |
Foreign currency translation | 570 | ' | ' | 570 | ' |
Stock-based compensation expense | 13,525 | ' | 13,525 | ' | ' |
Net income | 68,569 | ' | ' | ' | 68,569 |
Excess income tax benefit related to stock-based compensation plans | 1,232 | ' | 1,232 | ' | ' |
Issuance of restricted common stock under stock plan, net of forfeitures | ' | 1 | -1 | ' | ' |
Issuance of restricted common stock under stock plan, net of forfeitures (in shares) | ' | 128,000 | ' | ' | ' |
Payment of withholding taxes in connection with vesting of restricted stock | -2,561 | ' | ' | ' | -2,561 |
Payment of withholding taxes in connection with vesting of restricted stock (in shares) | -42,970 | -43,000 | ' | ' | ' |
Unrealized gains on available-for-sale investments, net of tax | 12 | ' | ' | 12 | ' |
Restricted stock unit vesting (in shares) | ' | 3,000 | ' | ' | ' |
Balance at Dec. 31, 2012 | 551,204 | 316 | 189,273 | -464 | 362,079 |
Balance (in shares) at Dec. 31, 2012 | ' | 31,563,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Exercise of stock options | 313 | ' | 313 | ' | ' |
Exercise of stock options (in shares) | ' | 17,000 | ' | ' | ' |
Foreign currency translation | -360 | ' | ' | -360 | ' |
Stock-based compensation expense | 12,366 | ' | 12,366 | ' | ' |
Net income | 69,993 | ' | ' | ' | 69,993 |
Excess income tax benefit related to stock-based compensation plans | 2,850 | ' | 2,850 | ' | ' |
Issuance of restricted common stock under stock plan, net of forfeitures | ' | -1 | 1 | ' | ' |
Issuance of restricted common stock under stock plan, net of forfeitures (in shares) | ' | -70,000 | ' | ' | ' |
Payment of withholding taxes in connection with vesting of restricted stock | -8,338 | -1 | ' | ' | -8,337 |
Payment of withholding taxes in connection with vesting of restricted stock (in shares) | -132,745 | -133,000 | ' | ' | ' |
Unrealized gains on available-for-sale investments, net of tax | 1 | ' | ' | 1 | ' |
Restricted stock unit vesting (in shares) | ' | 13,000 | ' | ' | ' |
Balance at Dec. 31, 2013 | $628,029 | $314 | $204,803 | ($823) | $423,735 |
Balance (in shares) at Dec. 31, 2013 | ' | 31,390,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $69,993 | $68,569 | $84,688 |
Adjustments to reconcile net income to net cash provided by operating activities, net of the effects from the acquisition in 2011: | ' | ' | ' |
Depreciation | 8,421 | 8,138 | 7,413 |
Amortization | 2,456 | 3,987 | 4,293 |
Provision for doubtful accounts | -3 | 53 | 35 |
Provision for excess or obsolete inventory | 3,101 | 2,340 | 2,070 |
Deferred taxes | 330 | -4,450 | -2,558 |
Stock-based compensation | 12,366 | 13,525 | 10,502 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -5,341 | 4,678 | -1,527 |
Inventories | -13,198 | -29,806 | -17,271 |
Prepaid expenses and other assets | -328 | -521 | -95 |
Deferred revenue and customer advances | 2,036 | 2,203 | -7,725 |
Accounts payable | 1,795 | 47 | -94 |
Accrued expenses | -2,346 | 2,053 | 2,092 |
Income taxes receivable/payable | 616 | -2,728 | -784 |
Net cash provided by operating activities | 79,898 | 68,088 | 81,039 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -12,049 | -11,859 | -11,317 |
Purchases of marketable securities | -573,660 | -170,109 | ' |
Proceeds from Sales and maturities of marketable securities | 360,000 | 30,000 | ' |
Acquisition, net of cash acquired | ' | ' | -10,421 |
Net cash used in investing activities | -225,709 | -151,968 | -21,738 |
Cash flows from financing activities: | ' | ' | ' |
Repayment of note payable assumed in acquisition | ' | ' | -232 |
Proceeds from exercise of stock options | 313 | 425 | 774 |
Payment of withholding taxes in connection with vesting of restricted stock | -8,339 | -2,561 | -2,813 |
Excess income tax benefit related to stock-based compensation plans | 2,850 | 1,232 | 1,413 |
Net cash used in financing activities | -5,176 | -904 | -858 |
Effect of exchange rate changes on cash and cash equivalents | 430 | 274 | -266 |
Net (decrease) increase in cash and cash equivalents | -150,557 | -84,510 | 58,177 |
Cash and cash equivalents, beginning of year | 269,157 | 353,667 | 295,490 |
Cash and cash equivalents, end of year | 118,600 | 269,157 | 353,667 |
Supplemental cash flow information: | ' | ' | ' |
Cash paid for taxes | $33,169 | $44,570 | $38,461 |
Nature_of_the_Business
Nature of the Business | 12 Months Ended |
Dec. 31, 2013 | |
Nature of the Business | ' |
Nature of the Business | ' |
1. Nature of the Business | |
Hittite Microwave Corporation (the "Company") designs and develops high performance integrated circuits, modules, subsystems and instrumentation for technically demanding radio frequency, microwave and millimeterwave applications. The Company's products are used in a variety of applications and markets, including automotive, broadband, cellular infrastructure, fiber optic, microwave and millimeterwave communications, military, space and test and measurement. The Company was organized as a Massachusetts corporation in 1985 and reincorporated under the laws of Delaware in 1988. The Company owns two buildings in Chelmsford, Massachusetts, which house its corporate headquarters, manufacturing facility and four design centers. In addition, the Company operates design centers and has sales and technical support staff in Canada, Colorado, Egypt, France, Norway, Turkey and Virginia, and has sales offices in China, Finland, France, Germany, India, Japan, Korea, Sweden and the United Kingdom. | |
In 2012, the Company established a new office in Ireland which serves as the Company's international headquarters, as well as a new warehouse facility in Malaysia. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of Significant Accounting Policies | ' | ||||
Summary of Significant Accounting Policies | ' | ||||
2. Summary of Significant Accounting Policies | |||||
Basis of Presentation | |||||
The consolidated financial statements include the accounts of Hittite Microwave Corporation and its wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States of America. Intercompany accounts and transactions have been eliminated in consolidation. | |||||
Use of Accounting Estimates | |||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||
Revenue Recognition | |||||
The Company recognizes revenue for the majority of its business when the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectibility is reasonably assured. For multiple element arrangements, the Company allocates arrangement consideration among the elements based on the relative fair values of those elements as determined using vendor-specific objective evidence or third-party evidence. The Company uses its best estimate of selling price to allocate arrangement consideration between the deliverables in cases where neither vendor-specific objective evidence nor third-party evidence is available. The Company maintains a reserve for potential sales return and allowances. Returns and customer credits, which have historically been immaterial, are recorded as a reduction to revenue. Rights of return are generally not included in sales arrangements. A portion of the Company's sales are made to two distributors under agreements that provide for product return privileges. As a result, the Company defers recognition of revenue from sales to such distributors until the product is resold by the distributors. | |||||
Revenue from contracts with the United States Government, government prime contractors and some commercial customers is generally recorded on a percentage of completion basis using either units delivered or costs incurred as the measurement basis for progress toward completion. The output measure is preferable and used when a reliable measure of output can be established. Estimated revenue in excess of amounts billed is reported as unbilled receivables. Contract accounting requires judgment in estimating costs and assumptions related to technical issues and delivery schedule. Contract costs include material, subcontract costs, labor and an allocation of indirect costs. The estimation of costs at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Changes in contract performance and estimated gross margin, including the impact of final contract settlements, are recognized in the period in which the changes are determined. Estimated losses on a contract are recognized in full in the period when they become known. | |||||
Cash and Cash Equivalents | |||||
Cash equivalents may include money market funds, as well as highly rated government and commercial securities with maturities of three months or less at the time of acquisition. Cash equivalents are carried at cost plus accrued interest, which approximates fair market value. | |||||
Marketable Securities | |||||
Investments with maturities over three months at the time of purchase are classified as marketable securities. Marketable securities may consist of treasury bills and treasury notes, which are classified as available-for-sale. Investments in available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, as a component of "Accumulated other comprehensive income (loss)" in the accompanying consolidated balance sheets and a component of comprehensive income in the accompanying consolidated statements of comprehensive income. Realized gains and losses are reported in other (expense) income, net, on a specific identification basis. Treasury bills and treasury notes consist of debt securities issued by the U.S. Government. The effective maturity dates of these investments are less than one year. | |||||
Allowance for Doubtful Accounts | |||||
The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. | |||||
Activity related to the allowance for doubtful accounts was as follows (in thousands): | |||||
Balance at December 31, 2010 | $ | 334 | |||
Provision | 35 | ||||
Utilization | (35 | ) | |||
Balance at December 31, 2011 | 334 | ||||
Provision | 53 | ||||
Utilization | (53 | ) | |||
Balance at December 31, 2012 | 334 | ||||
Provision | (3 | ) | |||
Utilization | 3 | ||||
Balance at December 31, 2013 | $ | 334 | |||
Inventories | |||||
Inventory is stated at the lower of cost (first-in, first-out method) or market value and includes materials, labor, subcontractor costs and manufacturing overhead. The Company reviews the inventory and compares product costs with current market value and writes down any costs in excess of current market value to its net realizable value. Once the Company has written down inventory to its estimated net realizable value, the carrying value is not increased due to subsequent changes in demand forecasts. | |||||
Activity related to the inventory reserve was as follows (in thousands): | |||||
Balance at December 31, 2010 | $ | 5,792 | |||
Provision | 2,070 | ||||
Utilization | (563 | ) | |||
Balance at December 31, 2011 | 7,299 | ||||
Provision | 2,340 | ||||
Utilization and other | 171 | ||||
Balance at December 31, 2012 | 9,810 | ||||
Provision | 3,101 | ||||
Utilization and other | (577 | ) | |||
Balance at December 31, 2013 | $ | 12,334 | |||
Property and Equipment | |||||
Property and equipment are recorded at cost. Depreciation is computed using the straight-line method applied over the estimated useful lives of the assets, which are generally as follows: machinery and equipment, three to five years; furniture and fixtures, five years; and building, building improvements and related specialty assets, seven to thirty years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related assets. | |||||
Cost of additions and improvements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. When assets are retired, the related cost and accumulated depreciation and amortization are removed from the accounts, and any gain or loss is reflected in income. | |||||
Goodwill and Long-Lived Assets | |||||
Goodwill is carried at cost and totaled $4,346,000 at December 31, 2013 and $4,735,000 at December 31, 2012. The change in the goodwill balance is attributable to foreign currency translation adjustments. The Company operates in a single reporting unit. In September 2011, the FASB issued new guidance which provides an entity with the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If an entity determines this is the case, it is required to perform the two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If an entity determines that it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. This new guidance is effective for fiscal years beginning after December 15, 2011 with early adoption permitted. The Company adopted this guidance as of the fourth quarter of 2011. | |||||
Applying this new accounting guidance, the Company performed a qualitative assessment of its reporting unit as of December 31 and determined that is was not more-likely-than-not that the fair value of its reporting unit was less than its carrying amount. As a result, the two-step goodwill impairment test was not required in 2013, 2012 or 2011. | |||||
Intangible assets other than goodwill are carried at cost less accumulated amortization. The Company's intangible assets are being amortized over their respective useful lives, principally 3-5 years. The Company evaluates the recoverability of these assets whenever there is an indication of possible impairment by measuring the carrying amount of the assets against the related estimated undiscounted future cash flows. When an evaluation indicates that the future undiscounted cash flows are not sufficient to recover the carrying value of the asset, the asset is adjusted to its estimated fair value. | |||||
An impairment review of goodwill or other long-lived assets could be prompted by significant changes in the manner in which the Company uses the asset, negative industry or economic trends or underperformance relative to projected operating results. | |||||
Accounting for Stock-Based Compensation | |||||
The Company measures compensation cost related to stock-based awards at fair value on the date of grant, and recognizes this cost as expense over the service period the awards are expected to vest, net of estimated forfeitures. The Company considers many factors when estimating expected forfeitures, including the type of the award, employee group, and historical experience. The fair value of restricted stock and restricted stock units that is contingent on employment is determined based on the price of the Company's common stock on the date of grant. The fair value of restricted stock unit awards with market-based vesting criteria is determined using a lattice model. The fair value of stock options is determined using the Black-Scholes valuation model. | |||||
Foreign Currency Translation | |||||
The Company has determined that the functional currency of each foreign operation is the respective local currency, except for subsidiaries located in Ireland for which the functional currency is the United States dollar. Transactions in a foreign currency are recorded at the rate of exchange on the date of the transaction. Assets and liabilities at year-end are translated at the rate of exchange in effect at the period-end. Revenue and expenses are translated at average rates of exchange in effect during the period. Translation gains or losses are included as a component of accumulated other comprehensive income (loss) in stockholders' equity. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency in other than the functional currency are included in the results of operations as incurred. Such transaction gains and losses were not material for the periods presented. | |||||
Fair Value of Financial Instruments | |||||
The carrying amounts in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. | |||||
Earnings Per Share | |||||
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, excluding the dilutive effect of common stock equivalents. Diluted net income per share reflects the dilutive effect of common stock equivalents, such as stock options and restricted stock, under the treasury stock method. | |||||
Risks and Uncertainties | |||||
Financial instruments which potentially subject the Company to credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company maintains its cash and cash equivalents with high credit quality financial institutions, and monitors credit risk with individual financial institutions and issuers. Marketable securities consist of treasury notes and bills. At December 31, 2013 and 2012, the Company had cash balances at certain financial institutions in excess of federally insured limits. However, the Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. | |||||
The Company sells its products worldwide through multiple channels, including its direct sales force and applications engineering staff, its network of domestic and international independent sales representatives, its website and through two distributors. The Company has historically depended on a small number of customers for a large percentage of its annual revenue. Revenue derived from the Company's 10 largest customers as a percentage of annual revenue was 35.4% in 2013, 40.2% in 2012 and 43.2% in 2011. One customer accounted for 14% of the Company's revenue in 2013, 16% in 2012 and 16% in 2011. | |||||
The Company performs credit checks and maintains an allowance for doubtful accounts. The Company generally does not require collateral, although letters of credit are required in certain circumstances. Receivables from one customer accounted for 18% and 12% of the Company's outstanding accounts receivable balance at December 31, 2013 and 2012, respectively. | |||||
The Company typically relies on a single foundry for the production of the semiconductor wafers used in a particular product. The Company also relies on a small number of subcontractors, primarily in Asia and the United States, to package some of its products, particularly those that utilize standard plastic packages. Reliance on these vendors involves several risks, including reduced control over the Company's manufacturing costs, delivery times, reliability and process quality, which can adversely affect product quality, and the possible misappropriation of the Company's technology. Any of these factors could adversely effect the Company's results of operations or financial condition. | |||||
The Company is transitioning away from one of its foundries from which it historically sourced a substantial portion of GaAs (gallium arsenide) wafers. The Company has been working with the foundry to manage this transition with the goal of maintaining adequate supplies of the affected products over their natural life cycles, which are typically five to ten years. The impact of this transition on our business is uncertain. The Company has made larger than normal purchases of raw materials inventory from this foundry, which are referred to as advance purchases, in order to support the products which have the longest life cycles. This consumes cash and could expose the Company to increased risk of inventory write-offs. At December 31, 2013, raw material inventory includes $38,000,000 of advance purchases of wafers from this foundry. During this transition, the Company could also experience adverse reactions from customers, which could affect revenues, and the productivity of new product development efforts has been, and may continue to be, adversely affected as the Company diverts engineering resources in order to translate certain existing products to other foundries, which could affect profitability. Further, products translated to other foundries could have inferior performance, production yields or costs. If any of these events were to occur to a more significant degree than they have to date, business, revenues, profitability and financial condition could be adversely affected. | |||||
Income Taxes | |||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statements and tax basis of assets and liabilities. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred assets will not be realized. | |||||
The Company recognizes in its financial statements the tax benefit from an uncertain tax position taken or expected to be taken in an income tax return only if it is more likely than not that such benefit would be sustained on its technical merits in the event of a tax audit. | |||||
Research and Development | |||||
Internal research and development expenditures are expensed as incurred, and consist of personnel costs, development materials, license fees and other related costs. During 2013, 2012 and 2011, the Company incurred $4,158,000, $2,886,000 and $935,000, respectively, of costs for research and development contracts on behalf of customers. These amounts, funded by customers, are included as cost of revenue in the period the associated revenue is recognized. The Company retains the right to all intellectual property associated with these efforts, including drawings, processes and know-how. | |||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
3. Fair Value of Financial Instruments | ||||||||||||||||||||||||||
The Company measures at fair value certain financial assets and financial liabilities. Fair value is the price that would be received for an asset, or the exit price that would be paid to transfer a liability, in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. There are three levels of inputs used to measure fair value, arranged in a hierarchy that maximizes the use of observable inputs: | ||||||||||||||||||||||||||
Level 1: | Quoted prices (unadjusted) in active markets for identical assets or liabilities. | |||||||||||||||||||||||||
Level 2: | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. | |||||||||||||||||||||||||
Level 3: | Unobservable inputs that are supported by little or no market activity. | |||||||||||||||||||||||||
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and considers factors specific to the asset or liability. The following table sets forth the Company's financial assets that were measured at fair value within the fair value hierarchy: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Cash equivalents | $ | 87,694 | $ | — | $ | — | $ | 87,694 | $ | 233,402 | $ | — | $ | — | $ | 233,402 | ||||||||||
Marketable securities | 350,952 | 2,995 | — | 353,947 | 140,069 | — | — | 140,069 | ||||||||||||||||||
Total | $ | 438,646 | $ | 2,995 | $ | — | $ | 441,641 | $ | 373,471 | $ | — | $ | — | $ | 373,471 | ||||||||||
Cash equivalents include money market funds as well as highly rated government securities with maturities of three months or less at the time of acquisition. The Company's portfolio of marketable securities consists of treasury bills, treasury notes and certificates of deposit, which are classified as available-for-sale. Treasury bills and treasury notes consist of debt securities issued by the U.S. Government. Gross unrealized gains and losses are immaterial for the periods presented. The effective maturity dates of these investments are less than one year. | ||||||||||||||||||||||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ' | |||||||
4. Accounts Receivable | ||||||||
Accounts receivable consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Commercial: | ||||||||
Billed | $ | 28,443 | $ | 26,738 | ||||
U.S. Government and government prime contractors: | ||||||||
Billed | 6,611 | 3,712 | ||||||
Unbilled | 1,413 | 708 | ||||||
Retainage | 53 | 97 | ||||||
36,520 | 31,255 | |||||||
Less: Allowance for doubtful accounts | 334 | 334 | ||||||
Net accounts receivable | $ | 36,186 | $ | 30,921 | ||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
5. Inventories | ||||||||
Net inventories consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 50,593 | $ | 44,128 | ||||
Work in process | 12,139 | 8,289 | ||||||
Finished goods | 13,288 | 13,509 | ||||||
$ | 76,020 | $ | 65,926 | |||||
The Company is transitioning away from one of its foundries from which it sources a substantial portion of its GaAs wafers. The Company is working with the foundry to manage this transition with the goal of maintaining adequate supplies of the affected products over their natural life cycles, which are typically five to ten years. The Company has continued to make purchases of raw materials inventory from this foundry in order to support the products which have the longest life cycles. At December 31, 2013 and 2012, raw material inventory includes approximately $38,000,000 and $33,100,000, respectively, of advance purchases of wafers from this foundry. | ||||||||
Acquisition
Acquisition | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisition | ' | ||||
Acquisition | ' | ||||
6. Acquisition | |||||
On January 14, 2011, the Company acquired all of the outstanding stock of Arctic Silicon Devices (ASD), a privately held company, for $10,421,000 in cash and the assumption of a $232,000 note payable that was repaid during 2011. ASD was a developer of advanced mixed-signal, integrated circuit technology, located in Trondheim, Norway. The acquisition provided the Company with new IC design and integration capability and a new product line of analog-to-digital converters. | |||||
The assets and liabilities of ASD were recorded at their fair values as of the acquisition date, as follows (in thousands): | |||||
Current assets | $ | 174 | |||
Other assets | 369 | ||||
Software | 900 | ||||
Completed technology | 5,300 | ||||
Goodwill | 4,236 | ||||
Current liabilities | (326 | ) | |||
Note payable | (232 | ) | |||
Total purchase price, net of cash and cash equivalents acquired | $ | 10,421 | |||
The completed technology is amortized to cost of revenue over its estimated useful life of 5 years. The software is amortized to research and development expense over its estimated useful life of 3 years. Goodwill arising from the acquisition is not deductible for tax purposes. | |||||
ASD's operating results have been included in the Company's results of operations from the acquisition date, and were not material. Pro forma results are not provided as ASD's results of operations were not material. Acquisition costs were not material. | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ' | |||||||
7. Property and Equipment | ||||||||
Property and equipment consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land and building | $ | 18,590 | $ | 18,519 | ||||
Machinery and equipment | 73,499 | 62,929 | ||||||
Furniture and fixtures | 1,293 | 1,281 | ||||||
Leasehold improvements | 838 | 874 | ||||||
94,220 | 83,603 | |||||||
Less: Accumulated depreciation and amortization | 54,787 | 47,309 | ||||||
Net property and equipment | $ | 39,433 | $ | 36,294 | ||||
Depreciation expense related to the Company's property and equipment was $8,420,000, $8,129,000 and $7,413,000 in 2013, 2012 and 2011, respectively. | ||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||
8. Intangible Assets | ||||||||||||||||||||
On October 17, 2007, the Company entered into a strategic agreement with Northrop Grumman Space Technology sector to market a specified list of existing Velocium products worldwide, to license related technology and to assume the associated customer relationships, at a cost of $7,080,000. | ||||||||||||||||||||
On June 30, 2010, the Company entered into an agreement to license from IBM certain millimeterwave technology, at a cost of $6,580,000. | ||||||||||||||||||||
The Company's intangible assets, all of which related to these two agreements and the acquisition of ASD, are included in other assets in the accompanying consolidated balance sheets, and consist of the following: | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||
Amount | Amount | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Licensed technology | $ | 15,092 | $ | 11,362 | $ | 3,730 | $ | 15,092 | $ | 8,799 | $ | 6,293 | ||||||||
Non-compete agreement | 2,800 | 2,800 | — | 2,800 | 2,800 | — | ||||||||||||||
Customer relationships | 1,969 | 1,969 | — | 1,969 | 1,969 | — | ||||||||||||||
Total intangible assets | $ | 19,861 | $ | 16,131 | $ | 3,730 | $ | 19,861 | $ | 13,568 | $ | 6,293 | ||||||||
The Company's intangible assets are being amortized over their original estimated useful lives, principally 3-5 years. Amortization expense associated with these assets was: | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost of revenue | $ | 1,060 | $ | 1,522 | $ | 1,556 | ||||||||||||||
Sales and marketing | — | 719 | 1,076 | |||||||||||||||||
Research and development | 1,503 | 1,670 | 1,657 | |||||||||||||||||
Total intangible asset amortization | $ | 2,563 | $ | 3,911 | $ | 4,289 | ||||||||||||||
Based on the current amount of intangible assets subject to amortization, amortization expense is estimated to be $2,108,000, $1,578,000 and $44,000 for 2014, 2015 and 2016 respectively. | ||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | ' | ||||
9. Commitments and Contingencies | |||||
Lease Arrangements | |||||
The Company leases office space and equipment under operating leases. The following table summarizes future minimum rental payments under these leases as of December 31, 2013 (in thousands): | |||||
2014 | $ | 948 | |||
2015 | 516 | ||||
2016 | 416 | ||||
2017 | 64 | ||||
2018 | 10 | ||||
Later years | — | ||||
$ | 1,954 | ||||
Rental expense during 2013, 2012 and 2011 was $1,619,000, $1,696,000 and $1,288,000, respectively. | |||||
Indemnification | |||||
In connection with the sale of products in the ordinary course of business, the Company often makes representations affirming, among other things, that its products do not infringe on the intellectual property rights of others, and agrees to indemnify customers against third-party claims for such infringement. Further, the Company's by-laws require it to indemnify its officers and directors against any action that may arise out of their services in that capacity, and the Company has also entered into indemnification agreements with respect to all of its directors. The Company has not been subject to any material liabilities under such provisions and therefore believes that its exposure for these indemnification obligations is minimal. Accordingly, the Company has no liabilities recorded for these indemnity agreements as of December 31, 2013 and 2012. | |||||
Product Warranties | |||||
The Company provides product warranties in conjunction with certain product sales. Generally, product sales are accompanied by a one-year warranty period. These warranties cover factors such as nonconformance to specifications and defects in material and workmanship. Estimated standard warranty costs are recorded in the period in which the related product sales occur. The Company's warranty accrual and related expense were immaterial to the Company's financial position and results of operations for the periods presented herein. | |||||
Intellectual Property Claims | |||||
In recent years there has been significant litigation involving intellectual property rights in many technology-based industries, including the Company's. Because patent applications often are not disclosed until a patent is issued, it is not always possible for the Company to know whether patent applications are pending that might be infringed by its products, and there could be issued patents that are pertinent to the Company's business of which it is not aware. The Company's products may also be claimed to infringe intellectual property rights of others as a result of activities by its foundries or other suppliers with respect to which it has no control or knowledge. | |||||
The Company has from time to time been the subject of litigation alleging that sales by the Company of its products infringe patents held by such third parties. In addition, the Company has from time to time received letters asserting that it infringes patents held by third parties that have not resulted in litigation. The Company has incurred significant costs in investigating and defending intellectual property claims, and there can be no assurance that pending or future litigation or claims relating to infringement of third-party intellectual property rights can be resolved in a manner favorable to the Company. Claims relating to the alleged infringement by the Company of third-party proprietary rights, whether meritorious or not, could be time-consuming to defend and could harm the Company's working relationships with its foundries and customers, damage its reputation, result in substantial and unanticipated costs associated with litigation, require the Company to enter into royalty or licensing agreements, which may not be available on acceptable terms or at all, or result in the payment by the Company of substantial damages. If any of the Company's products were found to infringe the intellectual property rights of any third party and if a license were not available on reasonable terms, the Company could be required to redesign the infringing product so as not to infringe, which could be time consuming and costly, or if this is not feasible, could be required to withdraw the infringing product from the market. | |||||
Defined_Contribution_Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2013 | |
Defined Contribution Plan | ' |
Defined Contribution Plan | ' |
10. Defined Contribution Plan | |
The Company has established a defined contribution plan under the provisions of Section 401(k) of the Internal Revenue Code for its U.S. employees. The Company may make matching contributions, and may also provide discretionary contributions. The Company matched 50% of participants' contributions up to 10% of compensation in 2013, 2012 and 2011. In 2013, 2012 and 2011, employer contributions were $1,220,000, $1,111,000 and $994,000, respectively. The Company also has retirement plans at non-U.S. locations under similar terms. Employer contributions to those non-U.S. plans were immaterial to the periods presented herein. | |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
11. Stockholders' Equity | |
Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company's stockholders. Common stockholders are entitled to receive dividends, if any, as may be declared by the Company's Board of Directors. | |
The Company has 5,000,000 shares of authorized but unissued $.01 par value preferred stock. These shares may be issued upon approval of the Board of Directors, without stockholder approval, in one or more series, each of the series to have whatever rights and preferences, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, that the Board of Directors may determine. The rights of the holders of common stock may be adversely affected by the rights of holders of any such preferred stock that may be issued in the future. The issuance of preferred stock, while providing desirable flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making it more difficult for others to acquire, or of discouraging others from attempting to acquire, a majority of the outstanding voting stock of the Company. The Company has not issued, and has no current plans to issue, any shares of this preferred stock. | |
In April 2008, the Company's Board of Directors authorized a stock repurchase program to offset the dilutive impact of equity-based compensation granted to the Company's employees. The shares may be repurchased from time to time in the open market or in privately negotiated transactions. During 2013, 2012 and 2011, the Company did not repurchase any shares of common stock. The timing, price and volume of additional repurchases will be based on market conditions, relevant securities laws and other factors, as appropriate, and repurchases may be suspended or discontinued at any time. | |
In addition, the agreements governing restricted stock awards issued to our employees generally provide that upon vesting of such awards the recipients must pay any Federal, state, local and/or payroll taxes required by law to be withheld with respect to such income. Alternatively, recipients may elect to have the minimum tax withholding obligation satisfied by delivering to us for cancellation shares subject to such award that have a fair market value (as of the date the withholding is effected) sufficient to satisfy the withholding amount due, in which case we will pay the required amounts to the appropriate taxing authorities on the recipient's behalf. During 2013, 2012 and 2011, shares issued upon vesting of restricted stock were net of 132,745, 42,970 and 52,175 shares, respectively, retained by the Company to cover employee tax withholdings. | |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Earnings Per Share | ' | ||||||||||
12. Earnings Per Share | |||||||||||
The following table sets forth the computation of basic and diluted net income per share: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, | |||||||||||
except per share data) | |||||||||||
Basic earnings per share | |||||||||||
Net income | $ | 69,993 | $ | 68,569 | $ | 84,688 | |||||
Weighted average common shares outstanding | 30,609 | 30,359 | 30,178 | ||||||||
Basic earnings per share | $ | 2.29 | $ | 2.26 | $ | 2.81 | |||||
Diluted earnings per share | |||||||||||
Net income | $ | 69,993 | $ | 68,569 | $ | 84,688 | |||||
Weighted average common shares outstanding | 30,609 | 30,359 | 30,178 | ||||||||
Dilutive effect of stock options and restricted stock | 484 | 536 | 408 | ||||||||
Adjusted weighted average shares—diluted | 31,093 | 30,895 | 30,586 | ||||||||
Diluted earnings per share | $ | 2.25 | $ | 2.22 | $ | 2.77 | |||||
The dilutive effect of outstanding equity awards in the form of stock options, restricted stock awards and restricted stock units, is reflected in diluted earnings per share by application of the treasury stock method, which includes consideration of unamortized compensation cost and excess tax benefits on stock-based compensation. For all periods presented, an immaterial number of such securities were excluded from the calculation of diluted earnings per share, as their impact would have been anti-dilutive. | |||||||||||
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock-Based Compensation Plans | ' | |||||||||||||
Stock-Based Compensation Plans | ' | |||||||||||||
13. Stock-Based Compensation Plans | ||||||||||||||
The Company had a 1996 Stock Plan (the "1996 Plan"), pursuant to which the Company was authorized to grant to employees, directors and consultants of the Company stock options to purchase up to 3,748,000 shares of common stock. The maximum allowable term of options granted under the 1996 Plan was ten years from the date of grant. On January 2, 2006, the 1996 Plan expired by its terms, and no further awards may be granted under the 1996 Plan. | ||||||||||||||
The Company has a 2005 Stock Incentive Plan (the "2005 Plan") for its officers, directors and employees. Under the 2005 Plan, the Board of Directors may grant stock options, restricted stock awards, restricted stock units, unrestricted stock awards, performance share awards and stock appreciation rights. Each restricted stock unit represents the contingent right to receive one share of the Company's common stock. No maximum contractual term is set for awards under the 2005 Plan, except with respect to incentive stock options, for which a ten-year maximum is prescribed. The 2005 Plan initially authorized the issuance of awards for up to 4,216,500 shares of common stock. The 2005 Plan also authorized, on each of the first five anniversaries of the effective date of the 2005 Plan, the issuance of an additional 468,500 shares of common stock or such lesser number of shares, including zero, as may be determined by the Board of Directors. Giving effect to these annual increases, the aggregate number of shares authorized for issuance as of December 31, 2013 is 6,559,000, representing the maximum number of shares of common stock that may be issued under the 2005 Plan. | ||||||||||||||
Under the 2005 Plan, incentive stock options and nonqualified stock options may be granted at an exercise price not less than the fair market value of the Company's common stock on the date of grant. Substantially all options, restricted stock and restricted stock units currently outstanding under both plans vest over a period of four or five years. No stock options were granted in 2013, 2012 or 2011. | ||||||||||||||
The following table summarizes stock-based compensation included in the Company's consolidated statements of operations: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Cost of revenue | $ | 3,400 | $ | 2,982 | $ | 2,246 | ||||||||
Research and development | 3,104 | 4,949 | 4,309 | |||||||||||
Sales and marketing | 2,672 | 2,604 | 1,330 | |||||||||||
General and administrative | 3,190 | 2,990 | 2,617 | |||||||||||
Stock-based compensation expense | $ | 12,366 | $ | 13,525 | $ | 10,502 | ||||||||
All stock-based compensation cost for 2013, 2012 and 2011 related to restricted stock and restricted stock units. | ||||||||||||||
The Company recognizes any excess income tax benefits from stock-based awards in additional paid-in capital only if an incremental income tax benefit would be realized after considering all other tax attributes presently available to the Company. The Company measures the tax benefit associated with excess tax deductions related to stock-based compensation expense by multiplying the excess tax deductions by the statutory tax rates. | ||||||||||||||
Information related to all stock options granted by the Company is as follows: | ||||||||||||||
Shares | Weighted Average | Weighted Average | Aggregate | |||||||||||
Exercise Price per | Remaining | Intrinsic Value | ||||||||||||
Share | Contractual Life | |||||||||||||
(in years) | ||||||||||||||
Outstanding at December 31, 2012 | 39,684 | $ | 17.98 | |||||||||||
Options granted | — | — | ||||||||||||
Options exercised | 17,033 | $ | 18.38 | |||||||||||
Options forfeited / cancelled | — | — | ||||||||||||
Outstanding at December 31, 2013 | 22,651 | $ | 17.68 | 1.6 | $ | 998,000 | ||||||||
Exercisable at December 31, 2013 | 22,651 | $ | 17.68 | 1.6 | $ | 998,000 | ||||||||
The intrinsic value of stock options exercised, calculated as the difference between the market value of the shares on the exercise date and the exercise price of the option, was $764,000, $1,098,000 and $2,176,000 during 2013, 2012 and 2011, respectively. As of December 31, 2013, all compensation cost related to outstanding stock options has been recognized. | ||||||||||||||
Information related to restricted stock granted by the Company is as follows: | ||||||||||||||
Number | Weighted | |||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at December 31, 2012 | 1,057,927 | 46.52 | ||||||||||||
Granted | 76,756 | 62.54 | ||||||||||||
Vested | (409,223 | ) | 40.8 | |||||||||||
Forfeited | (146,492 | ) | 50.41 | |||||||||||
Nonvested at December 31, 2013 | 578,968 | 51.73 | ||||||||||||
The weighted average grant date fair value of restricted stock granted during the year was $62.54, $57.99 and $54.13 for 2013, 2012 and 2011, respectively. The fair value of restricted stock vested during the year was $25,634,000, $11,566,000 and $12,140,000 for 2013, 2012 and 2011, respectively. As of December 31, 2013, total compensation cost not yet recognized related to restricted stock awards was $17,933,000, which is expected to be recognized over a weighted-average period of 2.3 years. | ||||||||||||||
Information related to restricted stock units granted by the Company is as follows: | ||||||||||||||
Number | Weighted | |||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at December 31, 2012 | 66,596 | $ | 60.73 | |||||||||||
Granted | 160,506 | 61.81 | ||||||||||||
Vested | (13,101 | ) | 60.26 | |||||||||||
Forfeited | (3,187 | ) | 60.28 | |||||||||||
Nonvested at December 31, 2013 | 210,814 | 61.59 | ||||||||||||
The weighted average grant date fair value of restricted stock units granted during the year was $61.81, $59.57 and $62.86 for 2013, 2012 and 2011, respectively. The fair value of restricted stock units vested during the year was $826,000 and $159,000 for 2013 and 2012, respectively. As of December 31, 2013, total compensation cost not yet recognized related to restricted stock units was $11,038,000, which is expected to be recognized over a weighted-average period of 3.4 years. | ||||||||||||||
On March 13, 2013, the Company announced that Stephen G. Daly would step down from the offices of chairman of the board, president and chief executive officer and that Rick D. Hess would be appointed as its new president and chief executive officer, each effective April 1, 2013. On April 1, 2013, the Company granted to Mr. Hess two restricted stock unit awards: (a) a time-vested restricted stock unit award, vesting in four equal annual installments, providing for the issuance to him, upon vesting in full, of 25,193 shares of the Company's common stock, having a value on the date of grant equal to $1,500,000; and (b) a market-based restricted stock unit award providing for the issuance to him, provided that he remains employed by the Company on the fourth anniversary of the date of grant, of 25,193 shares of the Company's common stock, having a value on the date of grant equal to $1,500,000 (the "target award"). The market conditions to which the target award is subject relate to the relative total shareholder return, or TSR, of the Company's common stock over the four-year vesting period, in comparison to the TSRs of a group of comparable companies. The number of shares constituting the target award may be increased by up to 100% in the event that the Company's TSR is positive and exceeds the 50th percentile in the comparison group. The number of shares to be issued upon vesting is capped such that the aggregate market value of the shares delivered will not exceed $4,500,000 as of the vesting date. The comparison group consists of the companies included in the Philadelphia Stock Exchange Semiconductor Sector (SOX) index, a capitalization-weighted index composed of companies primarily involved in the design, distribution, manufacture and sale of semiconductors. | ||||||||||||||
The market-based restricted stock unit award has been classified as equity by the Company. The equity classification reflects the Company's determination that it is not probable that the aggregate market value of the shares to be delivered upon vesting will be limited by the cap. The grant date fair market value of the market-based restricted stock unit award will be recognized as stock-based compensation over the four-year service term whether or not the market condition is ultimately satisfied. | ||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
14. Income Taxes | |||||||||||
Deferred income taxes reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. Deferred tax assets and liabilities consist of the following; | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Accounts receivable | $ | 50 | $ | 75 | |||||||
Inventory | 2,272 | 3,445 | |||||||||
Accrued expenses | 1,315 | 1,159 | |||||||||
Deferred revenue | 1,176 | 515 | |||||||||
Stock-based compensation | 5,189 | 7,145 | |||||||||
Net operating loss carryforwards | 5,441 | 4,070 | |||||||||
Tax credits | 55 | — | |||||||||
Other | 468 | 264 | |||||||||
Total deferred tax assets | 15,966 | 16,673 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation and amortization | (764 | ) | (1,240 | ) | |||||||
Other | (310 | ) | (182 | ) | |||||||
Total deferred tax liabilities | (1,074 | ) | (1,422 | ) | |||||||
Net deferred tax asset | $ | 14,892 | $ | 15,251 | |||||||
At December 31, 2013, the Company has aggregate net operating loss carryforwards in Norway of approximately $19,423,000 which can be carried forward indefinitely. | |||||||||||
The components of the provision for income taxes are as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | 32,998 | $ | 38,228 | $ | 34,971 | |||||
State | 2,560 | 3,467 | 3,990 | ||||||||
Foreign | 1,468 | 1,388 | 349 | ||||||||
Deferred: | |||||||||||
Federal | 1,888 | (1,591 | ) | (752 | ) | ||||||
State | (33 | ) | (75 | ) | (237 | ) | |||||
Foreign | (1,916 | ) | (2,715 | ) | (1,258 | ) | |||||
$ | 36,965 | $ | 38,702 | $ | 37,063 | ||||||
In 2013, 2012 and 2011, domestic income before taxes was $82,870,000, $105,309,000 and $122,812,000, respectively, and foreign income (loss) before taxes was $24,088,000, $1,962,000 and $(1,061,000), respectively. | |||||||||||
The Company's effective tax rates differ from the federal statutory tax rate as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||
State taxes | 2.7 | 2.6 | 2.7 | ||||||||
Domestic production activities deduction | (0.2 | ) | (1.4 | ) | (2.6 | ) | |||||
Research and development credits | (1.4 | ) | (0.5 | ) | (0.3 | ) | |||||
Foreign tax rate differential | (8.3 | ) | (1.9 | ) | (0.3 | ) | |||||
Resolution of prior period tax matters | 0.1 | (0.7 | ) | (3.2 | ) | ||||||
Deemed dividend from foreign subsidiary | 7.2 | 3.5 | — | ||||||||
Foreign tax credits | (0.1 | ) | (0.8 | ) | — | ||||||
Other | (0.4 | ) | 0.3 | (0.9 | ) | ||||||
34.6 | % | 36.1 | % | 30.4 | % | ||||||
The American Taxpayer Relief Act of 2012 ("Act") was enacted on January 2, 2013. Under the Act, the federal research and development credit was retroactively extended for amounts paid or incurred after December 31, 2011 through December 31, 2013. The retroactive effects of the change in the tax law were recognized in the first quarter of 2013, which is the quarter in which the law was enacted. | |||||||||||
The Company receives a tax deduction related to the exercise of nonqualified stock options and the vesting of stock awards granted under its stock plans. To the extent this deduction is greater than the grant date fair value of the award, the tax effect of such difference is recorded as an increase in additional paid-in capital, rather than as a reduction to the provision for income taxes. This tax benefit totaled $2,850,000, $1,232,000 and $1,413,000 in 2013, 2012 and 2011, respectively. | |||||||||||
The Company provides United States income taxes on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered permanently reinvested outside the United States. As of December 31, 2013, U.S. income taxes were not provided on a cumulative total of $24,086,000 of undistributed earnings for certain foreign subsidiaries, as these earnings are considered permanently reinvested in operations outside the United States. If these earnings were to be repatriated, the Company would be subject to additional United States income taxes, net of foreign tax credits, of approximately $7,500,000. | |||||||||||
Activity related to unrecognized tax benefits was as follows (in thousands): | |||||||||||
Balance at December 31, 2010 | $ | 5,856 | |||||||||
Additions based on tax positions related to the current year | 357 | ||||||||||
Reductions for tax positions of prior years | (3,717 | ) | |||||||||
Settlements | (159 | ) | |||||||||
Balance at December 31, 2011 | 2,337 | ||||||||||
Additions based on tax positions related to the current year | 125 | ||||||||||
Reductions for tax positions of prior years | (925 | ) | |||||||||
Settlements | (625 | ) | |||||||||
Balance at December 31, 2012 | 912 | ||||||||||
Additions based on tax positions related to the current year | 5,233 | ||||||||||
Additions for tax positions of prior years | 91 | ||||||||||
Settlements | (447 | ) | |||||||||
Balance at December 31, 2013 | $ | 5,789 | |||||||||
Substantially all of the Company's unrecognized tax benefits, if recognized, would be recorded as a decrease to the provision for income taxes. | |||||||||||
The Company includes any interest and penalties related to uncertain tax positions as a component of the provision for income taxes. No material amount of such expense was recognized during 2013, 2012 and 2011, and there was no material accrual for interest or penalties as of December 31, 2013 or December 31, 2012. | |||||||||||
The major tax jurisdictions that remain subject to examination are: U.S. Federal 2011 and 2012; U.S. states 2005-2012; Ireland 2012; and Germany 2009-2012. The Company is currently under examination by the U.S. Internal Revenue Service for 2011. In the second quarter of 2012, the U.S. Internal Revenue Service completed an audit of the Company's consolidated federal income tax return for the tax years 2008-2010. As a result, the Company recognized a favorable tax benefit of $0.7 million. Based on such factors as the outcome of tax examinations and the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change in the next 12 months, although it is not possible to estimate the impact of any such potential change. | |||||||||||
Segment_Major_Customers_and_Ge
Segment, Major Customers and Geographic Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment, Major Customers and Geographic Information | ' | ||||||||||
Segment, Major Customers and Geographic Information | ' | ||||||||||
15. Segment, Major Customers and Geographic Information | |||||||||||
The Company operates in one reportable segment: the design and development of integrated circuits, modules, subsystems and instrumentation. | |||||||||||
Revenue from one customer, Boeing, accounted for 14%, 16% and 16% of total revenue in 2013, 2012 and 2011, respectively. | |||||||||||
The following table summarizes the Company's revenue by geographic region, based on the location to which the product was shipped: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
United States | $ | 118,624 | $ | 124,524 | $ | 119,314 | |||||
International | 155,191 | 139,871 | 144,794 | ||||||||
Total revenue | $ | 273,815 | $ | 264,395 | $ | 264,108 | |||||
Revenue from China represented 23%, 19% and 19% of total revenue in 2013, 2012 and 2011, respectively. | |||||||||||
Long-lived assets consist primarily of property and equipment and are principally located in the United States for all periods presented. | |||||||||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||
16. Selected Quarterly Financial Data (Unaudited) | ||||||||||||||
2013:00:00 | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter(1) | |||||||||||
Revenue | $ | 67,696 | $ | 68,607 | $ | 68,737 | $ | 68,775 | ||||||
Gross profit | 49,899 | 49,674 | 48,929 | 46,273 | ||||||||||
Net income | 17,598 | 18,050 | 18,739 | 15,606 | ||||||||||
Basic earnings per share | 0.58 | 0.59 | 0.61 | 0.51 | ||||||||||
Diluted earnings per share | 0.57 | 0.58 | 0.6 | 0.5 | ||||||||||
2012:00:00 | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in thousands, except per share data) | ||||||||||||||
Revenue | $ | 63,323 | $ | 65,387 | $ | 67,170 | $ | 68,515 | ||||||
Gross profit | 46,641 | 48,712 | 49,408 | 50,219 | ||||||||||
Net income | 15,992 | 17,174 | 17,689 | 17,714 | ||||||||||
Basic earnings per share | 0.53 | 0.57 | 0.58 | 0.58 | ||||||||||
Diluted earnings per share | 0.52 | 0.56 | 0.57 | 0.57 | ||||||||||
-1 | ||||||||||||||
Other expense for the fourth quarter of 2013 includes an adjustment for net foreign exchange losses of $0.6 million which originated in prior periods and related to a short-term intercompany loan denominated in Norwegian kroner. The error correction reclassifies net foreign exchange losses from accumulated other comprehensive loss within stockholders' equity to other expense. The Company believes that the errors in the prior periods and the correction of these errors in the fourth quarter of 2013 are not material. | ||||||||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Event | ' |
Subsequent Event | ' |
17. Subsequent Event | |
On February 6, 2014 the Company announced a dividend of $0.15 per common share to be paid in cash on March 27, 2014 to shareholders of record as of March 4, 2014. The Company estimates the dividend will result in a cash payment of approximately $5.0 million in the first quarter of 2014. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of Significant Accounting Policies | ' | ||||
Basis of Presentation | ' | ||||
Basis of Presentation | |||||
The consolidated financial statements include the accounts of Hittite Microwave Corporation and its wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States of America. Intercompany accounts and transactions have been eliminated in consolidation. | |||||
Use of Accounting Estimates | ' | ||||
Use of Accounting Estimates | |||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||
Revenue Recognition | ' | ||||
Revenue Recognition | |||||
The Company recognizes revenue for the majority of its business when the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectibility is reasonably assured. For multiple element arrangements, the Company allocates arrangement consideration among the elements based on the relative fair values of those elements as determined using vendor-specific objective evidence or third-party evidence. The Company uses its best estimate of selling price to allocate arrangement consideration between the deliverables in cases where neither vendor-specific objective evidence nor third-party evidence is available. The Company maintains a reserve for potential sales return and allowances. Returns and customer credits, which have historically been immaterial, are recorded as a reduction to revenue. Rights of return are generally not included in sales arrangements. A portion of the Company's sales are made to two distributors under agreements that provide for product return privileges. As a result, the Company defers recognition of revenue from sales to such distributors until the product is resold by the distributors. | |||||
Revenue from contracts with the United States Government, government prime contractors and some commercial customers is generally recorded on a percentage of completion basis using either units delivered or costs incurred as the measurement basis for progress toward completion. The output measure is preferable and used when a reliable measure of output can be established. Estimated revenue in excess of amounts billed is reported as unbilled receivables. Contract accounting requires judgment in estimating costs and assumptions related to technical issues and delivery schedule. Contract costs include material, subcontract costs, labor and an allocation of indirect costs. The estimation of costs at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Changes in contract performance and estimated gross margin, including the impact of final contract settlements, are recognized in the period in which the changes are determined. Estimated losses on a contract are recognized in full in the period when they become known. | |||||
Cash and Cash Equivalents | ' | ||||
Cash and Cash Equivalents | |||||
Cash equivalents may include money market funds, as well as highly rated government and commercial securities with maturities of three months or less at the time of acquisition. Cash equivalents are carried at cost plus accrued interest, which approximates fair market value. | |||||
Marketable Securities | ' | ||||
Marketable Securities | |||||
Investments with maturities over three months at the time of purchase are classified as marketable securities. Marketable securities may consist of treasury bills and treasury notes, which are classified as available-for-sale. Investments in available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, as a component of "Accumulated other comprehensive income (loss)" in the accompanying consolidated balance sheets and a component of comprehensive income in the accompanying consolidated statements of comprehensive income. Realized gains and losses are reported in other (expense) income, net, on a specific identification basis. Treasury bills and treasury notes consist of debt securities issued by the U.S. Government. The effective maturity dates of these investments are less than one year. | |||||
Allowance For Doubtful Accounts | ' | ||||
Allowance for Doubtful Accounts | |||||
The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. | |||||
Activity related to the allowance for doubtful accounts was as follows (in thousands): | |||||
Balance at December 31, 2010 | $ | 334 | |||
Provision | 35 | ||||
Utilization | (35 | ) | |||
Balance at December 31, 2011 | 334 | ||||
Provision | 53 | ||||
Utilization | (53 | ) | |||
Balance at December 31, 2012 | 334 | ||||
Provision | (3 | ) | |||
Utilization | 3 | ||||
Balance at December 31, 2013 | $ | 334 | |||
Inventories | ' | ||||
Inventories | |||||
Inventory is stated at the lower of cost (first-in, first-out method) or market value and includes materials, labor, subcontractor costs and manufacturing overhead. The Company reviews the inventory and compares product costs with current market value and writes down any costs in excess of current market value to its net realizable value. Once the Company has written down inventory to its estimated net realizable value, the carrying value is not increased due to subsequent changes in demand forecasts. | |||||
Activity related to the inventory reserve was as follows (in thousands): | |||||
Balance at December 31, 2010 | $ | 5,792 | |||
Provision | 2,070 | ||||
Utilization | (563 | ) | |||
Balance at December 31, 2011 | 7,299 | ||||
Provision | 2,340 | ||||
Utilization and other | 171 | ||||
Balance at December 31, 2012 | 9,810 | ||||
Provision | 3,101 | ||||
Utilization and other | (577 | ) | |||
Balance at December 31, 2013 | $ | 12,334 | |||
Property and Equipment | ' | ||||
Property and Equipment | |||||
Property and equipment are recorded at cost. Depreciation is computed using the straight-line method applied over the estimated useful lives of the assets, which are generally as follows: machinery and equipment, three to five years; furniture and fixtures, five years; and building, building improvements and related specialty assets, seven to thirty years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related assets. | |||||
Cost of additions and improvements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. When assets are retired, the related cost and accumulated depreciation and amortization are removed from the accounts, and any gain or loss is reflected in income. | |||||
Goodwill and Long-Lived Assets | ' | ||||
Goodwill and Long-Lived Assets | |||||
Goodwill is carried at cost and totaled $4,346,000 at December 31, 2013 and $4,735,000 at December 31, 2012. The change in the goodwill balance is attributable to foreign currency translation adjustments. The Company operates in a single reporting unit. In September 2011, the FASB issued new guidance which provides an entity with the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If an entity determines this is the case, it is required to perform the two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If an entity determines that it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. This new guidance is effective for fiscal years beginning after December 15, 2011 with early adoption permitted. The Company adopted this guidance as of the fourth quarter of 2011. | |||||
Applying this new accounting guidance, the Company performed a qualitative assessment of its reporting unit as of December 31 and determined that is was not more-likely-than-not that the fair value of its reporting unit was less than its carrying amount. As a result, the two-step goodwill impairment test was not required in 2013, 2012 or 2011. | |||||
Intangible assets other than goodwill are carried at cost less accumulated amortization. The Company's intangible assets are being amortized over their respective useful lives, principally 3-5 years. The Company evaluates the recoverability of these assets whenever there is an indication of possible impairment by measuring the carrying amount of the assets against the related estimated undiscounted future cash flows. When an evaluation indicates that the future undiscounted cash flows are not sufficient to recover the carrying value of the asset, the asset is adjusted to its estimated fair value. | |||||
An impairment review of goodwill or other long-lived assets could be prompted by significant changes in the manner in which the Company uses the asset, negative industry or economic trends or underperformance relative to projected operating results. | |||||
Accounting for Stock-Based Compensation | ' | ||||
Accounting for Stock-Based Compensation | |||||
The Company measures compensation cost related to stock-based awards at fair value on the date of grant, and recognizes this cost as expense over the service period the awards are expected to vest, net of estimated forfeitures. The Company considers many factors when estimating expected forfeitures, including the type of the award, employee group, and historical experience. The fair value of restricted stock and restricted stock units that is contingent on employment is determined based on the price of the Company's common stock on the date of grant. The fair value of restricted stock unit awards with market-based vesting criteria is determined using a lattice model. The fair value of stock options is determined using the Black-Scholes valuation model. | |||||
Foreign Currency Translation | ' | ||||
Foreign Currency Translation | |||||
The Company has determined that the functional currency of each foreign operation is the respective local currency, except for subsidiaries located in Ireland for which the functional currency is the United States dollar. Transactions in a foreign currency are recorded at the rate of exchange on the date of the transaction. Assets and liabilities at year-end are translated at the rate of exchange in effect at the period-end. Revenue and expenses are translated at average rates of exchange in effect during the period. Translation gains or losses are included as a component of accumulated other comprehensive income (loss) in stockholders' equity. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency in other than the functional currency are included in the results of operations as incurred. Such transaction gains and losses were not material for the periods presented. | |||||
Fair Value of Financial Instruments | ' | ||||
Fair Value of Financial Instruments | |||||
The carrying amounts in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. | |||||
Earnings Per Share | ' | ||||
Earnings Per Share | |||||
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, excluding the dilutive effect of common stock equivalents. Diluted net income per share reflects the dilutive effect of common stock equivalents, such as stock options and restricted stock, under the treasury stock method. | |||||
Risks and Uncertainties | ' | ||||
Risks and Uncertainties | |||||
Financial instruments which potentially subject the Company to credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company maintains its cash and cash equivalents with high credit quality financial institutions, and monitors credit risk with individual financial institutions and issuers. Marketable securities consist of treasury notes and bills. At December 31, 2013 and 2012, the Company had cash balances at certain financial institutions in excess of federally insured limits. However, the Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. | |||||
The Company sells its products worldwide through multiple channels, including its direct sales force and applications engineering staff, its network of domestic and international independent sales representatives, its website and through two distributors. The Company has historically depended on a small number of customers for a large percentage of its annual revenue. Revenue derived from the Company's 10 largest customers as a percentage of annual revenue was 35.4% in 2013, 40.2% in 2012 and 43.2% in 2011. One customer accounted for 14% of the Company's revenue in 2013, 16% in 2012 and 16% in 2011. | |||||
The Company performs credit checks and maintains an allowance for doubtful accounts. The Company generally does not require collateral, although letters of credit are required in certain circumstances. Receivables from one customer accounted for 18% and 12% of the Company's outstanding accounts receivable balance at December 31, 2013 and 2012, respectively. | |||||
The Company typically relies on a single foundry for the production of the semiconductor wafers used in a particular product. The Company also relies on a small number of subcontractors, primarily in Asia and the United States, to package some of its products, particularly those that utilize standard plastic packages. Reliance on these vendors involves several risks, including reduced control over the Company's manufacturing costs, delivery times, reliability and process quality, which can adversely affect product quality, and the possible misappropriation of the Company's technology. Any of these factors could adversely effect the Company's results of operations or financial condition. | |||||
The Company is transitioning away from one of its foundries from which it historically sourced a substantial portion of GaAs (gallium arsenide) wafers. The Company has been working with the foundry to manage this transition with the goal of maintaining adequate supplies of the affected products over their natural life cycles, which are typically five to ten years. The impact of this transition on our business is uncertain. The Company has made larger than normal purchases of raw materials inventory from this foundry, which are referred to as advance purchases, in order to support the products which have the longest life cycles. This consumes cash and could expose the Company to increased risk of inventory write-offs. At December 31, 2013, raw material inventory includes $38,000,000 of advance purchases of wafers from this foundry. During this transition, the Company could also experience adverse reactions from customers, which could affect revenues, and the productivity of new product development efforts has been, and may continue to be, adversely affected as the Company diverts engineering resources in order to translate certain existing products to other foundries, which could affect profitability. Further, products translated to other foundries could have inferior performance, production yields or costs. If any of these events were to occur to a more significant degree than they have to date, business, revenues, profitability and financial condition could be adversely affected. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statements and tax basis of assets and liabilities. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred assets will not be realized. | |||||
The Company recognizes in its financial statements the tax benefit from an uncertain tax position taken or expected to be taken in an income tax return only if it is more likely than not that such benefit would be sustained on its technical merits in the event of a tax audit. | |||||
Research and Development | ' | ||||
Research and Development | |||||
Internal research and development expenditures are expensed as incurred, and consist of personnel costs, development materials, license fees and other related costs. During 2013, 2012 and 2011, the Company incurred $4,158,000, $2,886,000 and $935,000, respectively, of costs for research and development contracts on behalf of customers. These amounts, funded by customers, are included as cost of revenue in the period the associated revenue is recognized. The Company retains the right to all intellectual property associated with these efforts, including drawings, processes and know-how. | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of Significant Accounting Policies | ' | ||||
Schedule of allowance for doubtful accounts | ' | ||||
Activity related to the allowance for doubtful accounts was as follows (in thousands): | |||||
Balance at December 31, 2010 | $ | 334 | |||
Provision | 35 | ||||
Utilization | (35 | ) | |||
Balance at December 31, 2011 | 334 | ||||
Provision | 53 | ||||
Utilization | (53 | ) | |||
Balance at December 31, 2012 | 334 | ||||
Provision | (3 | ) | |||
Utilization | 3 | ||||
Balance at December 31, 2013 | $ | 334 | |||
Schedule of inventory reserve | ' | ||||
Activity related to the inventory reserve was as follows (in thousands): | |||||
Balance at December 31, 2010 | $ | 5,792 | |||
Provision | 2,070 | ||||
Utilization | (563 | ) | |||
Balance at December 31, 2011 | 7,299 | ||||
Provision | 2,340 | ||||
Utilization and other | 171 | ||||
Balance at December 31, 2012 | 9,810 | ||||
Provision | 3,101 | ||||
Utilization and other | (577 | ) | |||
Balance at December 31, 2013 | $ | 12,334 | |||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Cash equivalents | $ | 87,694 | $ | — | $ | — | $ | 87,694 | $ | 233,402 | $ | — | $ | — | $ | 233,402 | ||||||||||
Marketable securities | 350,952 | 2,995 | — | 353,947 | 140,069 | — | — | 140,069 | ||||||||||||||||||
Total | $ | 438,646 | $ | 2,995 | $ | — | $ | 441,641 | $ | 373,471 | $ | — | $ | — | $ | 373,471 | ||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Receivable | ' | |||||||
Schedule of account receivables | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Commercial: | ||||||||
Billed | $ | 28,443 | $ | 26,738 | ||||
U.S. Government and government prime contractors: | ||||||||
Billed | 6,611 | 3,712 | ||||||
Unbilled | 1,413 | 708 | ||||||
Retainage | 53 | 97 | ||||||
36,520 | 31,255 | |||||||
Less: Allowance for doubtful accounts | 334 | 334 | ||||||
Net accounts receivable | $ | 36,186 | $ | 30,921 | ||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 50,593 | $ | 44,128 | ||||
Work in process | 12,139 | 8,289 | ||||||
Finished goods | 13,288 | 13,509 | ||||||
$ | 76,020 | $ | 65,926 | |||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisition | ' | ||||
Schedule of Acquisition | ' | ||||
The assets and liabilities of ASD were recorded at their fair values as of the acquisition date, as follows (in thousands): | |||||
Current assets | $ | 174 | |||
Other assets | 369 | ||||
Software | 900 | ||||
Completed technology | 5,300 | ||||
Goodwill | 4,236 | ||||
Current liabilities | (326 | ) | |||
Note payable | (232 | ) | |||
Total purchase price, net of cash and cash equivalents acquired | $ | 10,421 | |||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property and Equipment | ' | |||||||
Schedule of property and equipment | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land and building | $ | 18,590 | $ | 18,519 | ||||
Machinery and equipment | 73,499 | 62,929 | ||||||
Furniture and fixtures | 1,293 | 1,281 | ||||||
Leasehold improvements | 838 | 874 | ||||||
94,220 | 83,603 | |||||||
Less: Accumulated depreciation and amortization | 54,787 | 47,309 | ||||||
Net property and equipment | $ | 39,433 | $ | 36,294 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||
Amount | Amount | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Licensed technology | $ | 15,092 | $ | 11,362 | $ | 3,730 | $ | 15,092 | $ | 8,799 | $ | 6,293 | ||||||||
Non-compete agreement | 2,800 | 2,800 | — | 2,800 | 2,800 | — | ||||||||||||||
Customer relationships | 1,969 | 1,969 | — | 1,969 | 1,969 | — | ||||||||||||||
Total intangible assets | $ | 19,861 | $ | 16,131 | $ | 3,730 | $ | 19,861 | $ | 13,568 | $ | 6,293 | ||||||||
Schedule of amortization expense associated with assets | ' | |||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost of revenue | $ | 1,060 | $ | 1,522 | $ | 1,556 | ||||||||||||||
Sales and marketing | — | 719 | 1,076 | |||||||||||||||||
Research and development | 1,503 | 1,670 | 1,657 | |||||||||||||||||
Total intangible asset amortization | $ | 2,563 | $ | 3,911 | $ | 4,289 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies | ' | ||||
Schedule of future minimum rental payments for operating leases | ' | ||||
The Company leases office space and equipment under operating leases. The following table summarizes future minimum rental payments under these leases as of December 31, 2013 (in thousands): | |||||
2014 | $ | 948 | |||
2015 | 516 | ||||
2016 | 416 | ||||
2017 | 64 | ||||
2018 | 10 | ||||
Later years | — | ||||
$ | 1,954 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Earnings per Share | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, | |||||||||||
except per share data) | |||||||||||
Basic earnings per share | |||||||||||
Net income | $ | 69,993 | $ | 68,569 | $ | 84,688 | |||||
Weighted average common shares outstanding | 30,609 | 30,359 | 30,178 | ||||||||
Basic earnings per share | $ | 2.29 | $ | 2.26 | $ | 2.81 | |||||
Diluted earnings per share | |||||||||||
Net income | $ | 69,993 | $ | 68,569 | $ | 84,688 | |||||
Weighted average common shares outstanding | 30,609 | 30,359 | 30,178 | ||||||||
Dilutive effect of stock options and restricted stock | 484 | 536 | 408 | ||||||||
Adjusted weighted average shares—diluted | 31,093 | 30,895 | 30,586 | ||||||||
Diluted earnings per share | $ | 2.25 | $ | 2.22 | $ | 2.77 | |||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock-Based Compensation Plans | ' | |||||||||||||
Summary of stock-based compensation | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Cost of revenue | $ | 3,400 | $ | 2,982 | $ | 2,246 | ||||||||
Research and development | 3,104 | 4,949 | 4,309 | |||||||||||
Sales and marketing | 2,672 | 2,604 | 1,330 | |||||||||||
General and administrative | 3,190 | 2,990 | 2,617 | |||||||||||
Stock-based compensation expense | $ | 12,366 | $ | 13,525 | $ | 10,502 | ||||||||
Schedule of stock option activity | ' | |||||||||||||
Shares | Weighted Average | Weighted Average | Aggregate | |||||||||||
Exercise Price per | Remaining | Intrinsic Value | ||||||||||||
Share | Contractual Life | |||||||||||||
(in years) | ||||||||||||||
Outstanding at December 31, 2012 | 39,684 | $ | 17.98 | |||||||||||
Options granted | — | — | ||||||||||||
Options exercised | 17,033 | $ | 18.38 | |||||||||||
Options forfeited / cancelled | — | — | ||||||||||||
Outstanding at December 31, 2013 | 22,651 | $ | 17.68 | 1.6 | $ | 998,000 | ||||||||
Exercisable at December 31, 2013 | 22,651 | $ | 17.68 | 1.6 | $ | 998,000 | ||||||||
Schedule of nonvested restricted stock activity | ' | |||||||||||||
Number | Weighted | |||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at December 31, 2012 | 1,057,927 | 46.52 | ||||||||||||
Granted | 76,756 | 62.54 | ||||||||||||
Vested | (409,223 | ) | 40.8 | |||||||||||
Forfeited | (146,492 | ) | 50.41 | |||||||||||
Nonvested at December 31, 2013 | 578,968 | 51.73 | ||||||||||||
Schedule of nonvested restricted stock units activity | ' | |||||||||||||
Number | Weighted | |||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at December 31, 2012 | 66,596 | $ | 60.73 | |||||||||||
Granted | 160,506 | 61.81 | ||||||||||||
Vested | (13,101 | ) | 60.26 | |||||||||||
Forfeited | (3,187 | ) | 60.28 | |||||||||||
Nonvested at December 31, 2013 | 210,814 | 61.59 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of components of deferred tax assets and liabilities | ' | ||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Accounts receivable | $ | 50 | $ | 75 | |||||||
Inventory | 2,272 | 3,445 | |||||||||
Accrued expenses | 1,315 | 1,159 | |||||||||
Deferred revenue | 1,176 | 515 | |||||||||
Stock-based compensation | 5,189 | 7,145 | |||||||||
Net operating loss carryforwards | 5,441 | 4,070 | |||||||||
Tax credits | 55 | — | |||||||||
Other | 468 | 264 | |||||||||
Total deferred tax assets | 15,966 | 16,673 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation and amortization | (764 | ) | (1,240 | ) | |||||||
Other | (310 | ) | (182 | ) | |||||||
Total deferred tax liabilities | (1,074 | ) | (1,422 | ) | |||||||
Net deferred tax asset | $ | 14,892 | $ | 15,251 | |||||||
Schedule of components of provision for income taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | 32,998 | $ | 38,228 | $ | 34,971 | |||||
State | 2,560 | 3,467 | 3,990 | ||||||||
Foreign | 1,468 | 1,388 | 349 | ||||||||
Deferred: | |||||||||||
Federal | 1,888 | (1,591 | ) | (752 | ) | ||||||
State | (33 | ) | (75 | ) | (237 | ) | |||||
Foreign | (1,916 | ) | (2,715 | ) | (1,258 | ) | |||||
$ | 36,965 | $ | 38,702 | $ | 37,063 | ||||||
Schedule of effective tax rate differences from the federal statutory tax rate | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||
State taxes | 2.7 | 2.6 | 2.7 | ||||||||
Domestic production activities deduction | (0.2 | ) | (1.4 | ) | (2.6 | ) | |||||
Research and development credits | (1.4 | ) | (0.5 | ) | (0.3 | ) | |||||
Foreign tax rate differential | (8.3 | ) | (1.9 | ) | (0.3 | ) | |||||
Resolution of prior period tax matters | 0.1 | (0.7 | ) | (3.2 | ) | ||||||
Deemed dividend from foreign subsidiary | 7.2 | 3.5 | — | ||||||||
Foreign tax credits | (0.1 | ) | (0.8 | ) | — | ||||||
Other | (0.4 | ) | 0.3 | (0.9 | ) | ||||||
34.6 | % | 36.1 | % | 30.4 | % | ||||||
Schedule of unrecognized tax benefits | ' | ||||||||||
Activity related to unrecognized tax benefits was as follows (in thousands): | |||||||||||
Balance at December 31, 2010 | $ | 5,856 | |||||||||
Additions based on tax positions related to the current year | 357 | ||||||||||
Reductions for tax positions of prior years | (3,717 | ) | |||||||||
Settlements | (159 | ) | |||||||||
Balance at December 31, 2011 | 2,337 | ||||||||||
Additions based on tax positions related to the current year | 125 | ||||||||||
Reductions for tax positions of prior years | (925 | ) | |||||||||
Settlements | (625 | ) | |||||||||
Balance at December 31, 2012 | 912 | ||||||||||
Additions based on tax positions related to the current year | 5,233 | ||||||||||
Additions for tax positions of prior years | 91 | ||||||||||
Settlements | (447 | ) | |||||||||
Balance at December 31, 2013 | $ | 5,789 | |||||||||
Segment_Major_Customers_and_Ge1
Segment, Major Customers and Geographic Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment, Major Customers and Geographic Information | ' | ||||||||||
Schedule of entity's revenue by geographic region | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
United States | $ | 118,624 | $ | 124,524 | $ | 119,314 | |||||
International | 155,191 | 139,871 | 144,794 | ||||||||
Total revenue | $ | 273,815 | $ | 264,395 | $ | 264,108 | |||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Schedule of selected quarterly financial information | ' | |||||||||||||
2013:00:00 | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter(1) | |||||||||||
Revenue | $ | 67,696 | $ | 68,607 | $ | 68,737 | $ | 68,775 | ||||||
Gross profit | 49,899 | 49,674 | 48,929 | 46,273 | ||||||||||
Net income | 17,598 | 18,050 | 18,739 | 15,606 | ||||||||||
Basic earnings per share | 0.58 | 0.59 | 0.61 | 0.51 | ||||||||||
Diluted earnings per share | 0.57 | 0.58 | 0.6 | 0.5 | ||||||||||
2012:00:00 | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in thousands, except per share data) | ||||||||||||||
Revenue | $ | 63,323 | $ | 65,387 | $ | 67,170 | $ | 68,515 | ||||||
Gross profit | 46,641 | 48,712 | 49,408 | 50,219 | ||||||||||
Net income | 15,992 | 17,174 | 17,689 | 17,714 | ||||||||||
Basic earnings per share | 0.53 | 0.57 | 0.58 | 0.58 | ||||||||||
Diluted earnings per share | 0.52 | 0.56 | 0.57 | 0.57 | ||||||||||
-1 | ||||||||||||||
Other expense for the fourth quarter of 2013 includes an adjustment for net foreign exchange losses of $0.6 million which originated in prior periods and related to a short-term intercompany loan denominated in Norwegian kroner. The error correction reclassifies net foreign exchange losses from accumulated other comprehensive loss within stockholders' equity to other expense. The Company believes that the errors in the prior periods and the correction of these errors in the fourth quarter of 2013 are not material. | ||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of Significant Accounting Policies | ' | ' | ' |
Maximum term of original maturity to classify instruments as cash and cash equivalents | '3 months | ' | ' |
Minimum | ' | ' | ' |
Marketable securities disclosure | ' | ' | ' |
Term to maturity to be classified as a marketable security | '3 months | ' | ' |
Maximum | ' | ' | ' |
Marketable securities disclosure | ' | ' | ' |
Term to maturity of marketable securities held | '1 year | ' | ' |
Allowance for Doubtful Accounts | ' | ' | ' |
Movement in allowance and reserve | ' | ' | ' |
Balance at the beginning of the period | $334 | $334 | $334 |
Provision | -3 | 53 | 35 |
Utilization and other | 3 | -53 | -35 |
Balance at the end of the period | 334 | 334 | 334 |
Inventories | ' | ' | ' |
Movement in allowance and reserve | ' | ' | ' |
Balance at the beginning of the period | 9,810 | 7,299 | 5,792 |
Provision | 3,101 | 2,340 | 2,070 |
Utilization and other | -577 | 171 | -563 |
Balance at the end of the period | $12,334 | $9,810 | $7,299 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Machinery and equipment | Maximum | ' |
Property and Equipment | ' |
Estimated useful life | '5 years |
Machinery and equipment | Minimum | ' |
Property and Equipment | ' |
Estimated useful life | '3 years |
Furniture and fixtures | ' |
Property and Equipment | ' |
Estimated useful life | '5 years |
Building, building improvements and related specialty assets | Maximum | ' |
Property and Equipment | ' |
Estimated useful life | '30 years |
Building, building improvements and related specialty assets | Minimum | ' |
Property and Equipment | ' |
Estimated useful life | '7 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill and Long-Lived Assets | ' | ' | ' |
Goodwill | $4,346,000 | $4,735,000 | ' |
Risks and uncertainties | ' | ' | ' |
Advance wafer purchases | 38,000,000 | 33,100,000 | ' |
Research and Development | ' | ' | ' |
Costs incurred for research and development contracts on behalf of customers | $4,158,000 | $2,886,000 | $935,000 |
Minimum | ' | ' | ' |
Goodwill and Long-Lived Assets | ' | ' | ' |
Intangible assets estimated useful life | '3 years | ' | ' |
Maximum | ' | ' | ' |
Goodwill and Long-Lived Assets | ' | ' | ' |
Intangible assets estimated useful life | '5 years | ' | ' |
Revenues | Customer concentration | ' | ' | ' |
Risks and uncertainties | ' | ' | ' |
Number of customers concentration risk | 10 | 10 | 10 |
Major customer percentage | 35.40% | 40.20% | 43.20% |
Revenues | Customer concentration | Major customer 1 | ' | ' | ' |
Risks and uncertainties | ' | ' | ' |
Major customer percentage | 14.00% | 16.00% | 16.00% |
Accounts Receivables | Customer concentration | Major customer 1 | ' | ' | ' |
Risks and uncertainties | ' | ' | ' |
Major customer percentage | 18.00% | 12.00% | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value of financial instruments | ' | ' |
Marketable securities | $353,947 | $140,069 |
Level 1 | ' | ' |
Fair value of financial instruments | ' | ' |
Cash equivalents | 87,694 | 233,402 |
Marketable securities | 350,952 | 140,069 |
Total | 438,646 | 373,471 |
Level 2 | ' | ' |
Fair value of financial instruments | ' | ' |
Marketable securities | 2,995 | ' |
Total | 2,995 | ' |
Total | ' | ' |
Fair value of financial instruments | ' | ' |
Cash equivalents | 87,694 | 233,402 |
Marketable securities | 353,947 | 140,069 |
Total | $441,641 | $373,471 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts receivable | ' | ' |
Gross accounts receivable | $36,520 | $31,255 |
Less: Allowance for doubtful accounts | 334 | 334 |
Net accounts receivable | 36,186 | 30,921 |
Commercial | ' | ' |
Accounts receivable | ' | ' |
Billed | 28,443 | 26,738 |
U.S. Government and government prime contractors | ' | ' |
Accounts receivable | ' | ' |
Billed | 6,611 | 3,712 |
Unbilled | 1,413 | 708 |
Retainage | $53 | $97 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventories | ' | ' |
Raw materials | $50,593,000 | $44,128,000 |
Work in process | 12,139,000 | 8,289,000 |
Finished goods | 13,288,000 | 13,509,000 |
Total | 76,020,000 | 65,926,000 |
Advance wafer purchases | $38,000,000 | $33,100,000 |
Acquisition_Details
Acquisition (Details) (Arctic Silicon Devices (ASD), USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 14, 2011 |
Schedule of Purchase Price Allocation | ' | ' |
Current assets | ' | $174 |
Other assets | ' | 369 |
Goodwill | ' | 4,236 |
Current liabilities | ' | -326 |
Note payable | ' | -232 |
Total purchase price, net of cash and cash equivalents acquired | ' | 10,421 |
Software | ' | ' |
Schedule of Purchase Price Allocation | ' | ' |
Intangible assets | ' | 900 |
Intangible assets estimated useful life | '3 years | ' |
Completed Technology | ' | ' |
Schedule of Purchase Price Allocation | ' | ' |
Intangible assets | ' | $5,300 |
Intangible assets estimated useful life | '5 years | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property and Equipment | ' | ' | ' |
Gross property and equipment | $94,220,000 | $83,603,000 | ' |
Less: Accumulated depreciation and amortization | 54,787,000 | 47,309,000 | ' |
Net property and equipment | 39,433,000 | 36,294,000 | ' |
Depreciation | 8,420,000 | 8,129,000 | 7,413,000 |
Land and building | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Gross property and equipment | 18,590,000 | 18,519,000 | ' |
Machinery and equipment | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Gross property and equipment | 73,499,000 | 62,929,000 | ' |
Furniture and fixtures | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Gross property and equipment | 1,293,000 | 1,281,000 | ' |
Leasehold improvements | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Gross property and equipment | $838,000 | $874,000 | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 17, 2007 | Jun. 30, 2010 | |
item | Minimum | Maximum | Cost of revenue | Cost of revenue | Cost of revenue | Sales and marketing expense | Sales and marketing expense | Research and development | Research and development | Research and development | Licensed technology | Licensed technology | Non-compete agreement | Non-compete agreement | Customer relationships | Customer relationships | Northrop Grumman Space Technology | IBM | |||
Licensed technology | |||||||||||||||||||||
Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of agreements entered in relation to intangible assets | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,080,000 | $6,580,000 |
Gross Carrying Amount | 19,861,000 | 19,861,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,092,000 | 15,092,000 | 2,800,000 | 2,800,000 | 1,969,000 | 1,969,000 | ' | ' |
Accumulated Amortization | 16,131,000 | 13,568,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,362,000 | 8,799,000 | 2,800,000 | 2,800,000 | 1,969,000 | 1,969,000 | ' | ' |
Net | 3,730,000 | 6,293,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,730,000 | 6,293,000 | ' | ' | ' | ' | ' | ' |
Intangible assets estimated useful life | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intangible asset amortization | 2,563,000 | 3,911,000 | 4,289,000 | ' | ' | 1,060,000 | 1,522,000 | 1,556,000 | 719,000 | 1,076,000 | 1,503,000 | 1,670,000 | 1,657,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 2,108,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 1,578,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | $44,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Lease Arrangements | ' | ' | ' |
2014 | $948,000 | ' | ' |
2015 | 516,000 | ' | ' |
2016 | 416,000 | ' | ' |
2017 | 64,000 | ' | ' |
2018 | 10,000 | ' | ' |
Total | 1,954,000 | ' | ' |
Rental expense | $1,619,000 | $1,696,000 | $1,288,000 |
Defined_Contribution_Plan_Deta
Defined Contribution Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Contribution Plan | ' | ' | ' |
Employer's matching contribution up to 10 percent of participant contributions (as a percent) | 50.00% | 50.00% | 50.00% |
Maximum percentage of participant contributions eligible for employer contribution match | 10.00% | 10.00% | 10.00% |
Employer contributions | $1,220,000 | $1,111,000 | $994,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stockholders' Equity | ' | ' | ' |
Voting rights of each common stockholder | 'one | ' | ' |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 | ' |
Net shares retained to cover employee tax withholdings | 132,745 | 42,970 | 52,175 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $15,606 | $18,739 | $18,050 | $17,598 | $17,714 | $17,689 | $17,174 | $15,992 | $69,993 | $68,569 | $84,688 |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 30,609 | 30,359 | 30,178 |
Basic earnings per share (in dollars per share) | $0.51 | $0.61 | $0.59 | $0.58 | $0.58 | $0.58 | $0.57 | $0.53 | $2.29 | $2.26 | $2.81 |
Diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $15,606 | $18,739 | $18,050 | $17,598 | $17,714 | $17,689 | $17,174 | $15,992 | $69,993 | $68,569 | $84,688 |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 30,609 | 30,359 | 30,178 |
Dilutive effect of stock options and restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 484 | 536 | 408 |
Adjusted weighted average shares-diluted | ' | ' | ' | ' | ' | ' | ' | ' | 31,093 | 30,895 | 30,586 |
Diluted earnings per share (in dollars per share) | $0.50 | $0.60 | $0.58 | $0.57 | $0.57 | $0.57 | $0.56 | $0.52 | $2.25 | $2.22 | $2.77 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Details) | 12 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Restricted stock units | 1996 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan - Stock Options | ||||
Minimum | Maximum | ||||||||||||||
Stock-Based Compensation Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | 3,748,000 | ' | ' | ' | ' | ' | 6,559,000 | 4,216,500 | ' | ' | ' |
Number of additional shares authorized annually | ' | ' | ' | ' | ' | 468,500 | 468,500 | 468,500 | 468,500 | 468,500 | ' | ' | ' | ' | ' |
Number of shares of common stock to be received as contingent right | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum term of options | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '5 years | ' |
Number of stock options granted | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock-based compensation | ' | ' | ' |
Stock-based compensation expense | $12,366 | $13,525 | $10,502 |
Restricted stock and restricted stock units | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Stock-based compensation expense | 12,366 | 13,525 | 10,502 |
Cost of revenue | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Stock-based compensation expense | 3,400 | 2,982 | 2,246 |
Research and development | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Stock-based compensation expense | 3,104 | 4,949 | 4,309 |
Sales and marketing expense | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Stock-based compensation expense | 2,672 | 2,604 | 1,330 |
General and administrative | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Stock-based compensation expense | $3,190 | $2,990 | $2,617 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Details 3) (Stock options, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock options | ' | ' | ' |
Stock options, Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 39,684 | ' | ' |
Options exercised (in shares) | -17,033 | ' | ' |
Outstanding at the end of the period (in shares) | 22,651 | 39,684 | ' |
Exercisable at the end of the period (in shares) | 22,651 | ' | ' |
Stock options, Weighted-Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $17.98 | ' | ' |
Options exercised (in dollars per share) | $18.38 | ' | ' |
Outstanding at the end of the year (in dollars per share) | $17.68 | $17.98 | ' |
Exercisable at the end of the period (in dollars per share) | $17.68 | ' | ' |
Stock options, Weighted Average Remaining Contractual Life | ' | ' | ' |
Outstanding at the end of the period | '1 year 7 months 6 days | ' | ' |
Exercisable at the end of the period | '1 year 7 months 6 days | ' | ' |
Stock options, Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period (in dollars) | $998,000 | ' | ' |
Exercisable at the end of the period (in dollars) | 998,000 | ' | ' |
Intrinsic value of stock options exercised | $764,000 | $1,098,000 | $2,176,000 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted stock | ' | ' | ' |
Number of Shares | ' | ' | ' |
Nonvested at the beginning of the year (in shares) | 1,057,927 | ' | ' |
Granted (in shares) | 76,756 | ' | ' |
Vested (in shares) | -409,223 | ' | ' |
Forfeited (in shares) | -146,492 | ' | ' |
Nonvested at the end of the year (in shares) | 578,968 | 1,057,927 | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Nonvested at the beginning of the year (in dollars per share) | $46.52 | ' | ' |
Granted (in dollars per share) | $62.54 | $57.99 | $54.13 |
Vested (in dollars per share) | $40.80 | ' | ' |
Forfeited (in dollars per share) | $50.41 | ' | ' |
Nonvested at the end of the year (in dollars per share) | $51.73 | $46.52 | ' |
Compensation cost not yet recognized | $17,933,000 | ' | ' |
Fair value of instruments other than options | 25,634,000 | 11,566,000 | 12,140,000 |
Compensation cost to be recognized, weighted-average period | '2 years 3 months 18 days | ' | ' |
Restricted stock units | ' | ' | ' |
Number of Shares | ' | ' | ' |
Nonvested at the beginning of the year (in shares) | 66,596 | ' | ' |
Granted (in shares) | 160,506 | ' | ' |
Vested (in shares) | -13,101 | ' | ' |
Forfeited (in shares) | -3,187 | ' | ' |
Nonvested at the end of the year (in shares) | 210,814 | 66,596 | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Nonvested at the beginning of the year (in dollars per share) | $60.73 | ' | ' |
Granted (in dollars per share) | $61.81 | $59.57 | $62.86 |
Vested (in dollars per share) | $60.26 | ' | ' |
Forfeited (in dollars per share) | $60.28 | ' | ' |
Nonvested at the end of the year (in dollars per share) | $61.59 | $60.73 | ' |
Compensation cost not yet recognized | 11,038,000 | ' | ' |
Fair value of instruments other than options | $826,000 | $159,000 | ' |
Compensation cost to be recognized, weighted-average period | '3 years 4 months 24 days | ' | ' |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans (Details 5) (Mr. Hess, USD $) | 0 Months Ended |
Apr. 02, 2013 | |
item | |
Restricted stock units | ' |
Stock-Based Compensation Plans | ' |
Number of awards issuable | 2 |
Time-vested restricted stock units | ' |
Stock-Based Compensation Plans | ' |
Number of installments in which awards will vest | 4 |
Number of shares authorized | 25,193 |
Grant date value of the shares authorized | $1,500,000 |
Vesting period | '4 years |
Market-based restricted stock units | ' |
Stock-Based Compensation Plans | ' |
Number of shares authorized | 25,193 |
Grant date value of the shares authorized | 1,500,000 |
Vesting period | '4 years |
Maximum percentage increase in number of shares to be issued in the event where Company's TSR is positive and exceeds the 50th percentile in the comparison group | 100.00% |
Capped market value of the shares to be issued | $4,500,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Accounts receivable | $50,000 | $75,000 |
Inventory | 2,272,000 | 3,445,000 |
Accrued expenses | 1,315,000 | 1,159,000 |
Deferred revenue | 1,176,000 | 515,000 |
Stock-based compensation | 5,189,000 | 7,145,000 |
Net operating loss carryforwards | 5,441,000 | 4,070,000 |
Tax credits | 55,000 | ' |
Other | 468,000 | 264,000 |
Total deferred tax assets | 15,966,000 | 16,673,000 |
Deferred tax liabilities: | ' | ' |
Depreciation and amortization | -764,000 | -1,240,000 |
Other | -310,000 | -182,000 |
Total deferred tax liabilities | -1,074,000 | -1,422,000 |
Net deferred tax asset | 14,892,000 | 15,251,000 |
Net operating loss carryforwards in Norway | $19,423,000 | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current: | ' | ' | ' |
Federal | $32,998,000 | $38,228,000 | $34,971,000 |
State | 2,560,000 | 3,467,000 | 3,990,000 |
Foreign | 1,468,000 | 1,388,000 | 349,000 |
Deferred: | ' | ' | ' |
Federal | 1,888,000 | -1,591,000 | -752,000 |
State | -33,000 | -75,000 | -237,000 |
Foreign | -1,916,000 | -2,715,000 | -1,258,000 |
Total provision for income taxes | 36,965,000 | 38,702,000 | 37,063,000 |
Domestic income before taxes | 82,870,000 | 105,309,000 | 122,812,000 |
Foreign income (loss) before taxes | $24,088,000 | $1,962,000 | ($1,061,000) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of effective income tax rate | ' | ' | ' |
Statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State taxes (as a percent) | 2.70% | 2.60% | 2.70% |
Domestic production activities deduction (as a percent) | -0.20% | -1.40% | -2.60% |
Research and development credits (as a percent) | -1.40% | -0.50% | -0.30% |
Foreign tax rate differential (as a percent) | -8.30% | -1.90% | -0.30% |
Resolution of prior period tax matters (as a percent) | 0.10% | -0.70% | -3.20% |
Deemed dividend from foreign subsidiary (as a percent) | 7.20% | 3.50% | ' |
Foreign tax credits (as a percent) | -0.10% | -0.80% | ' |
Other (as a percent) | -0.40% | 0.30% | -0.90% |
Effective tax rate (as a percent) | 34.60% | 36.10% | 30.40% |
Income tax benefit related to stock-based compensation plans | $2,850,000 | $1,232,000 | $1,413,000 |
Undistributed earnings of foreign subsidiaries | 24,086,000 | ' | ' |
Foreign tax credit | $7,500,000 | ' | ' |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of unrecognized tax benefits | ' | ' | ' |
Beginning balance | $912,000 | $2,337,000 | $5,856,000 |
Additions based on tax positions related to the current year | 5,233,000 | 125,000 | 357,000 |
(Reductions) additions for tax positions of prior years | 91,000 | -925,000 | -3,717,000 |
Settlements | -447,000 | -625,000 | -159,000 |
Ending balance | 5,789,000 | 912,000 | 2,337,000 |
Favorable tax benefit recognized | $700,000 | ' | ' |
Segment_Major_Customers_and_Ge2
Segment, Major Customers and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
Segment, Major Customers and Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Major Customer and Geographic Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | $68,775 | $68,737 | $68,607 | $67,696 | $68,515 | $67,170 | $65,387 | $63,323 | $273,815 | $264,395 | $264,108 |
Revenues | Customer concentration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Major Customer and Geographic Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration percentage | ' | ' | ' | ' | ' | ' | ' | ' | 35.40% | 40.20% | 43.20% |
Revenues | Customer concentration | Major Customer 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Major Customer and Geographic Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration percentage | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 16.00% | 16.00% |
Number of Major Customers for which Revenue Percentage Disclosed | 1 | ' | ' | ' | 1 | ' | ' | ' | 1 | 1 | 1 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Major Customer and Geographic Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 118,624 | 124,524 | 119,314 |
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Major Customer and Geographic Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | $155,191 | $139,871 | $144,794 |
China | Revenues | Geographic concentration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Major Customer and Geographic Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration percentage | ' | ' | ' | ' | ' | ' | ' | ' | 23.00% | 19.00% | 19.00% |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Selected Quarterly Financial Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $68,775,000 | $68,737,000 | $68,607,000 | $67,696,000 | $68,515,000 | $67,170,000 | $65,387,000 | $63,323,000 | $273,815,000 | $264,395,000 | $264,108,000 |
Gross profit | 46,273,000 | 48,929,000 | 49,674,000 | 49,899,000 | 50,219,000 | 49,408,000 | 48,712,000 | 46,641,000 | 194,775,000 | 194,980,000 | 194,173,000 |
Net income | 15,606,000 | 18,739,000 | 18,050,000 | 17,598,000 | 17,714,000 | 17,689,000 | 17,174,000 | 15,992,000 | 69,993,000 | 68,569,000 | 84,688,000 |
Basic earnings per share (in dollars per share) | $0.51 | $0.61 | $0.59 | $0.58 | $0.58 | $0.58 | $0.57 | $0.53 | $2.29 | $2.26 | $2.81 |
Diluted earnings per share (in dollars per share) | $0.50 | $0.60 | $0.58 | $0.57 | $0.57 | $0.57 | $0.56 | $0.52 | $2.25 | $2.22 | $2.77 |
Net foreign exchange losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Error corrections and prior period adjustments restatement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification of net foreign exchange losses to other expense | $600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent event, USD $) | 0 Months Ended | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Feb. 06, 2014 | Mar. 31, 2014 |
Estimated amount | ||
Subsequent event | ' | ' |
Dividend declared | $0.15 | ' |
Cash payment of dividend | ' | $5 |