Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 27, 2014 | Jun. 30, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'IPHI | ' | ' |
Entity Registrant Name | 'INPHI CORP | ' | ' |
Entity Central Index Key | '0001160958 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 30,812,412 | ' |
Entity Public Float | ' | ' | $307 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $31,667 | $30,161 |
Investments in marketable securities | 90,890 | 91,107 |
Accounts receivable, net | 13,073 | 13,717 |
Inventories | 6,767 | 4,894 |
Deferred tax assets | 1,099 | ' |
Income tax receivable | 240 | 2,412 |
Prepaid expenses and other current assets | 2,361 | 2,106 |
Total current assets | 146,097 | 144,397 |
Property and equipment, net | 22,460 | 13,893 |
Goodwill | 5,875 | 5,875 |
Deferred tax charge | 4,200 | 5,138 |
Other assets, net | 3,710 | 771 |
Total assets | 182,342 | 170,074 |
Current liabilities: | ' | ' |
Accounts payable | 7,280 | 6,888 |
Deferred revenue | 1,686 | 1,083 |
Accrued employee expenses | 4,626 | 3,331 |
Other accrued expenses | 1,611 | 1,261 |
Other current liabilities | 1,881 | 524 |
Total current liabilities | 17,084 | 13,087 |
Other long-term liabilities | 5,865 | 4,022 |
Total liabilities | 22,949 | 17,109 |
Commitments and contingencies (Note 14) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued | ' | ' |
Common stock, $0.001 par value; 500,000,000 shares authorized; 30,244,439 and 28,730,046 issued and outstanding at December 31, 2013 and 2012, respectively | 30 | 29 |
Additional paid-in capital | 225,007 | 205,269 |
Accumulated deficit | -66,582 | -53,404 |
Accumulated other comprehensive income | 938 | 1,071 |
Total stockholders' equity | 159,393 | 152,965 |
Total liabilities and stockholders' equity | $182,342 | $170,074 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, no shares issued | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 30,244,439 | 28,730,046 |
Common stock, shares outstanding | 30,244,439 | 28,730,046 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue | $102,664 | $91,206 | $79,297 |
Cost of revenue | 37,095 | 32,684 | 28,687 |
Gross profit | 65,569 | 58,522 | 50,610 |
Operating expenses: | ' | ' | ' |
Research and development | 50,516 | 40,102 | 28,565 |
Sales and marketing | 15,741 | 14,052 | 12,700 |
General and administrative | 11,614 | 12,300 | 9,141 |
Total operating expenses | 77,871 | 66,454 | 50,406 |
Income (loss) from operations | -12,302 | -7,932 | 204 |
Interest and other income (expense) | 876 | 914 | 509 |
Income (loss) before income taxes | -11,426 | -7,018 | 713 |
Provision (benefit) for income taxes | 1,752 | 13,673 | -1,218 |
Net income (loss) | ($13,178) | ($20,691) | $1,931 |
Earnings per share: | ' | ' | ' |
Basic | ($0.45) | ($0.73) | $0.07 |
Diluted | ($0.45) | ($0.73) | $0.07 |
Weighted-average shares used in computing earnings per share: | ' | ' | ' |
Basic | 29,493,005 | 28,378,680 | 26,799,237 |
Diluted | 29,493,005 | 28,378,680 | 29,367,423 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) | ($13,178) | ($20,691) | $1,931 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustment | ' | ' | 30 |
Change in unrealized gain, net of $(80), $176 and $(38) tax expense (benefit) in 2013, 2012 and 2011, respectively | -88 | 364 | -27 |
Realized loss (gain) reclassified into earning, net of tax | -45 | -68 | -28 |
Comprehensive income (loss) | ($13,311) | ($20,395) | $1,906 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in unrealized gain, tax | ($80) | $176 | ($38) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Secondary Public Offering | Common Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
In Thousands, except Share data | Secondary Public Offering | Secondary Public Offering | ||||||
Beginning Balance at Dec. 31, 2010 | $142,686 | ' | $25 | ' | $176,505 | ' | ($34,644) | $800 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | ' | 25,088,122 | ' | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and restricted stock unit grant, shares | ' | ' | 2,694,101 | ' | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and restricted stock unit grant | 4,534 | ' | 2 | ' | 4,532 | ' | ' | ' |
Income tax benefit from stock option exercises | 1,171 | ' | ' | ' | 1,171 | ' | ' | ' |
Stock-based compensation expense | 7,192 | ' | ' | ' | 7,192 | ' | ' | ' |
Issuance of common stock in connection with secondary public offering, net (in shares) | ' | ' | ' | 100,000 | ' | ' | ' | ' |
Issuance of common stock in connection with secondary public offering, net | ' | 915 | ' | 1 | ' | 914 | ' | ' |
Net income (loss) | 1,931 | ' | ' | ' | ' | ' | 1,931 | ' |
Other comprehensive income (loss), net | -25 | ' | ' | ' | ' | ' | ' | -25 |
Ending Balance at Dec. 31, 2011 | 158,404 | ' | 28 | ' | 190,314 | ' | -32,713 | 775 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | ' | 27,882,223 | ' | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and restricted stock unit grant, shares | ' | ' | 746,735 | ' | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and restricted stock unit grant | 1,503 | ' | 1 | ' | 1,502 | ' | ' | ' |
Issuance of common stock from employee stock purchase plan (in shares) | 101,088 | ' | 101,088 | ' | ' | ' | ' | ' |
Issuance of common stock from employee stock purchase plan | 943 | ' | ' | ' | 943 | ' | ' | ' |
Income tax benefit from stock option exercises | 51 | ' | ' | ' | 51 | ' | ' | ' |
Stock-based compensation expense | 12,459 | ' | ' | ' | 12,459 | ' | ' | ' |
Net income (loss) | -20,691 | ' | ' | ' | ' | ' | -20,691 | ' |
Other comprehensive income (loss), net | 296 | ' | ' | ' | ' | ' | ' | 296 |
Ending Balance at Dec. 31, 2012 | 152,965 | ' | 29 | ' | 205,269 | ' | -53,404 | 1,071 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | ' | 28,730,046 | ' | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and restricted stock unit grant, shares | ' | ' | 1,235,319 | ' | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and restricted stock unit grant | 725 | ' | 1 | ' | 724 | ' | ' | ' |
Issuance of common stock from employee stock purchase plan (in shares) | 279,074 | ' | 279,074 | ' | ' | ' | ' | ' |
Issuance of common stock from employee stock purchase plan | 2,221 | ' | ' | ' | 2,221 | ' | ' | ' |
Income tax benefit adjustment from stock option exercises | -185 | ' | ' | ' | -185 | ' | ' | ' |
Stock-based compensation expense | 16,978 | ' | ' | ' | 16,978 | ' | ' | ' |
Net income (loss) | -13,178 | ' | ' | ' | ' | ' | -13,178 | ' |
Other comprehensive income (loss), net | -133 | ' | ' | ' | ' | ' | ' | -133 |
Ending Balance at Dec. 31, 2013 | $159,393 | ' | $30 | ' | $225,007 | ' | ($66,582) | $938 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | ' | 30,244,439 | ' | ' | ' | ' | ' |
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 (loss) | ($13,178) | ($20,691) | $1,931 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 7,508 | 4,908 | 3,185 |
Stock-based compensation | 16,978 | 12,459 | 7,192 |
Impairment charges | 516 | ' | 1,612 |
Deferred income taxes | -163 | 9,954 | -5,192 |
Amortization and adjustment of deferred tax charge | 938 | 963 | 1,192 |
Excess tax benefit related to stock-based compensation | ' | -2,060 | -1,171 |
Amortization of premiums on marketable securities | 983 | 1,161 | 920 |
Other noncash items | -46 | 112 | -20 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 644 | -4,442 | 696 |
Inventories | -1,873 | 822 | -621 |
Prepaid expenses and other assets | -578 | -164 | -1,027 |
Income tax payable/receivable | 3,045 | 2,657 | 2,745 |
Accounts payable | 379 | 682 | -1,005 |
Accrued expenses | 1,645 | 847 | 148 |
Deferred revenue | 603 | -846 | -718 |
Other liabilities | 1,257 | 106 | -264 |
Net cash provided by operating activities | 18,658 | 6,468 | 9,603 |
Cash flows from investing activities | ' | ' | ' |
Purchases of property and equipment | -16,578 | -8,383 | -5,197 |
Proceeds from sale of property and equipment | ' | 237 | 9 |
Purchases of marketable securities | -43,125 | -47,030 | -124,986 |
Sales and maturities of marketable securities | 42,226 | 44,667 | 34,500 |
Purchase of cost-method investment in private company | -2,621 | ' | ' |
Net cash used in investing activities | -20,098 | -10,509 | -95,674 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from exercise of stock options and warrants | 2,905 | 1,828 | 4,525 |
Excess tax benefit related to stock-based compensation | ' | 2,060 | 1,171 |
Proceeds from employee stock purchase plan | 2,221 | 943 | ' |
Minimum tax withholding paid on behalf of employees for restricted stock units | -2,180 | -325 | -51 |
Proceeds from the secondary public offerings, net of issuance costs | ' | ' | 1,050 |
Proceeds from initial public offering, net of costs paid | ' | ' | -1,099 |
Net cash provided by financing activities | 2,946 | 4,506 | 5,596 |
Effect of currency exchange rates on cash and cash equivalents | ' | ' | -1 |
Net increase (decrease) in cash and cash equivalents | 1,506 | 465 | -80,476 |
Cash and cash equivalents at beginning of year | 30,161 | 29,696 | 110,172 |
Cash and cash equivalents at end of year | 31,667 | 30,161 | 29,696 |
Supplemental Cash Flow Information | ' | ' | ' |
Income taxes paid | $59 | $99 | ' |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization and Summary of Significant Accounting Policies | ' | ||||||||
1. Organization and Summary of Significant Accounting Policies | |||||||||
Inphi Corporation (the “Company”), a Delaware corporation, was incorporated in November 2000. The Company is a fabless provider of high-speed analog semiconductor solutions for the communications and computing markets. The Company’s semiconductor solutions are designed to address bandwidth bottlenecks in networks, maximize throughput and minimize latency in computing environments and enable the rollout of next generation communications and computing infrastructures. In addition, the semiconductor solutions provide a vital high-speed interface between analog signals and digital information in high-performance systems such as telecommunications transport systems, enterprise networking equipment, datacenter and enterprise servers, storage platforms, test and measurement equipment and military systems. | |||||||||
The Company is subject to certain risks and uncertainties and believes changes in any of the following areas could have a material adverse effect on the Company’s future financial position or results of operations or cash flows: ability to sustain profitable operations due to history of losses and accumulated deficit, dependence on limited number of customers for a substantial portion of revenue, product defects, risks related to intellectual property matters, lengthy sales cycle and competitive selection process, lengthy and expensive qualification process, ability to develop new or enhance products in a timely manner, market development of and demand for the Company’s products, reliance on third parties to manufacture, assemble and test products and ability to compete. | |||||||||
Basis of Presentation | |||||||||
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the accounts of Inphi and subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||
In the third quarter of 2011, the Company decided to discontinue the sale of legacy products supported by its Taiwan subsidiary and transitioned the subsidiary to be a design and sales support center. The associated restructuring expense was $1,813, of which $1,408 relates to write off of certain intangibles (see note 6), $204 relates to write off of other assets and $198 relates to severance costs. The severance costs were paid in 2011 except for $95, which was paid in 2012. | |||||||||
Use of Estimates | |||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
On an ongoing basis, management evaluates its estimates, including those related to (i) the collectibility of accounts receivable; (ii) write down for excess and obsolete inventories; (iii) warranty obligations; (iv) the value assigned to and estimated useful lives of long-lived assets; (v) the realization of tax assets and estimates of tax liabilities and tax reserves; (vi) the valuation of equity securities; (vii) amounts recorded in connection with acquisitions; (viii) recoverability of intangible assets and goodwill and (ix) the recognition and disclosure of contingent liabilities. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company engages third party valuation specialists to assist with estimates related to the valuation of financial instruments and assets associated with various contractual arrangements, and valuation of assets acquired in connection with acquisitions. Such estimates often require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ from those estimates under different assumptions or circumstances. | |||||||||
Foreign Currency Translation | |||||||||
The Company and its subsidiaries use the U.S. dollar as its functional currency. Foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at the exchange rate in effect during the period the transaction occurred, except for those expenses related to balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency transactions are included in the Consolidated Statements of Operations as part of “Other income (expense)”. Foreign currency gain or loss in 2013, 2012 and 2011 were not material. | |||||||||
The functional currency of the Company’s Taiwan subsidiary was the New Taiwan Dollar through the first two quarters of 2011, which required that assets and liabilities be translated into US dollars at period-end exchange rates and income, expense, and cash flow items be translated at average exchange rates prevailing during the period. The resulting currency translation adjustment was recorded as a component of accumulated other comprehensive income within stockholders’ equity. As discussed above, in 2011, the Company transitioned its Taiwan subsidiary to be a design and sales support center. The restructuring brought about a change in the subsidiary’s functional currency designation from Taiwan dollars to United States dollars. | |||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash and cash equivalents with major financial institutions and, at times, such balances with any one financial institution may exceed Federal Deposit Insurance Corporation insurance limits. Cash equivalents primarily consist of money market funds. | |||||||||
Fair Market Value of Financial Instruments | |||||||||
The carrying amount reflected in the balance sheet for cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable, accrued expenses and other current liabilities, approximate fair value due to the short-term nature of these financial instruments. | |||||||||
Investments in Marketable Securities | |||||||||
Investments in marketable securities consist of available-for-sale securities. These investments are recorded at fair value with changes in fair value, net of applicable taxes, recorded as unrealized gains (losses) as a component of accumulated other comprehensive income in stockholders’ equity. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in Other (expense) income, net. The cost basis for realized gains and losses on available-for-sale securities is determined on a specific identification basis. Investments are made based on our investment policy which restricts the types of investments that can be made. The Company classified available-for-sale securities as short-term as the investments are available to be used in current operations. | |||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventories are reduced for write downs based on periodic reviews for evidence of slow-moving or obsolete parts. The write-down is based on comparison between inventory on hand and estimated future sales for each specific product. Once written down, inventory write downs are not reversed until the inventory is sold or scrapped. Inventory write downs are also established when conditions indicate that the net realizable value is less than cost due to physical deterioration, obsolescence, changes in price level or other causes. Inventory valuation reserves were $1,479 and $1,720, as of December 31, 2013 and 2012, respectively. | |||||||||
Property and Equipment | |||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is provided on property and equipment over the estimated useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Repairs and maintenance are charged to expense as incurred. Useful lives by asset category are as follows: | |||||||||
Asset Category | Years | ||||||||
Office equipment | 3 years | ||||||||
Software | 3 years | ||||||||
Leasehold improvements | Shorter of lease | ||||||||
term or estimated | |||||||||
useful life | |||||||||
Production equipment | 2 years | ||||||||
Computer equipment | 5 years | ||||||||
Lab equipment | 5 years | ||||||||
Furniture and fixtures | 7 years | ||||||||
Impairment of Long-lived Assets and Goodwill | |||||||||
Long-lived Assets | |||||||||
The Company assesses the impairment of long-lived assets, which consist primarily of property and equipment and intangible assets, whenever events or changes in circumstances indicate that such assets might be impaired and the carrying value may not be recoverable. Events or changes in circumstances that may indicate that an asset is impaired include significant decreases in the market value of an asset, significant underperformance relative to expected historical or projected future results of operations, a change in the extent or manner in which an asset is utilized, significant declines in the estimated fair value of the overall Company for a sustained period, shifts in technology, loss of key management or personnel, changes in the Company’s operating model or strategy and competitive forces. | |||||||||
If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the expected undiscounted future cash flows attributable to the asset are less than the carrying amount of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. Fair value is determined based on the present value of estimated expected future cash flows using a discount rate commensurate with the risk involved, quoted market prices or appraised values, depending on the nature of the assets. | |||||||||
Goodwill | |||||||||
Goodwill is recorded when the consideration paid for a business acquisition exceeds the fair value of net tangible and intangible assets acquired. Goodwill is measured and tested for impairment on an annual basis during the fourth fiscal quarter or more frequently if the Company believes indicators of impairment exist. | |||||||||
The performance of the test involves a two-step process. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. As the Company has only one reporting unit, the fair value of the reporting unit is determined by taking the market capitalization of the Company as determined through quoted market prices and adjusted for control premiums and other relevant factors. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process is only performed if a potential impairment exists, and it involves determining the difference between the fair value of the reporting unit’s net assets other than goodwill and the fair value of the reporting unit. If the difference is less than the net book value of goodwill, impairment exists and is recorded. In the event that the Company determines that the value of goodwill has become impaired, the Company will record an accounting charge for the amount of impairment during the fiscal quarter in which the determination is made. The Company has not been required to perform this second step of the process because the fair value of the reporting unit has significantly exceeded its book value at every measurement date. The guidance also provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. There was no impairment of goodwill in 2013, 2012 and 2011. | |||||||||
Internal Use Software Costs | |||||||||
Certain external computer software costs acquired for internal use are capitalized. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized costs are included within property and equipment. | |||||||||
Revenue Recognition | |||||||||
The Company’s products are fully functional at the time of shipment and do not require additional production, modification, or customization. The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. The Company’s sales arrangements do not include multiple elements. | |||||||||
Product revenue is recognized upon shipment of product to customers, net of accruals for estimated sales returns and allowances, which to date, have not been significant. However, some of the Company’s sales are made through distributors under arrangements that allow for price protection or rights of return on product unsold by the distributors. Product revenue on sales made through distributors with rights of return or price protection is deferred until the distributors sell the product to end customers. Sales to distributors are included in deferred revenue and the Company includes the related costs in inventory until sale to the end customers occurs. Price protection rights allow distributors the right to a credit in the event of declines in the price of the Company’s product that they hold prior to the sale to an end customer. In the event that the Company reduces the selling price of products held by distributors, deferred revenue related to distributors with price protection rights is reduced upon notification to the customer of the price change. The Company’s sales to direct customers are made primarily pursuant to standard purchase orders for delivery of products. The Company generally allows customers to cancel or change purchase orders within limited notice periods prior to the scheduled shipment. | |||||||||
Cost of Revenue | |||||||||
Cost of revenue includes cost of materials, such as wafers processed by third-party foundries, cost associated with packaging and assembly, test and shipping, cost of personnel, including stock-based compensation, and equipment associated with manufacturing support, logistics and quality assurance, warranty cost, write down of inventories, amortization of production mask costs, overhead and an allocated portion of occupancy costs. | |||||||||
Warranty | |||||||||
The Company’s products are under warranty against defects in material and workmanship generally for a period of one or two years. The Company accrues for estimated warranty cost at the time of sale based on anticipated warranty claims and actual historical warranty claims experience including knowledge of specific product failures that are outside of the Company’s typical experience. The warranty obligation is determined based on product failure rates, cost of replacement and failure analysis cost. If actual warranty costs differ significantly from these estimates, adjustments may be required in the future. As of both December 31, 2013 and 2012, the warranty liability was $40. | |||||||||
The following table sets forth changes in warranty accrual included in other accrued expenses in the Company’s consolidated balance sheets: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 40 | $ | 1,000 | |||||
Accruals for warranties | — | 790 | |||||||
Settlements | — | (1,750 | ) | ||||||
$ | 40 | $ | 40 | ||||||
In 2010, the Company was informed of a claim related to repair and replacement costs in connection with shipments of over 4,000 integrated circuits made by the Company during the summer and fall of 2009. The Company assessed, provided and accumulated additional warranty reserves based on estimated, probable costs to replace units. In 2012, based on additional investigation and discussions with the customer, the Company booked an additional warranty cost of $750. This amount was recorded as a reduction to revenue. In June 2012, the Company entered into a settlement agreement with the customer in which the Company paid $1,750 in July 2012. | |||||||||
Research and Development Expense | |||||||||
Research and development expense consists of costs incurred in performing research and development activities including salaries, stock-based compensation, employee benefits, occupancy costs, pre-production engineering mask costs, overhead costs and prototype wafer, packaging and test costs. Research and development costs are expensed as incurred. Reimbursements from customers related to research and development contracts are offset against research and development costs. | |||||||||
Sales and Marketing Expense | |||||||||
Sales and marketing expense consists of salaries, stock-based compensation, employee benefits, travel and trade show costs. The Company expenses sales and marketing costs as incurred. Advertising expenses for the years ended December 31, 2013, 2012 and 2011 were not material. | |||||||||
General and Administrative Expense | |||||||||
General and administrative expense consists of salaries, stock-based compensation, employee benefits and expenses for executive management, legal, finance and human resources personnel. In addition, general and administrative expense includes fees for professional services and occupancy costs. These costs are expensed as incurred. | |||||||||
Income Taxes | |||||||||
Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must also make judgments in evaluating whether deferred tax assets will be recovered from future taxable income. To the extent that it believes that recovery is not likely, the Company must establish a valuation allowance. The carrying value of the Company’s net deferred tax asset is based on whether it is more likely than not that the Company will generate sufficient future taxable income to realize these deferred tax assets. A valuation allowance is established for deferred tax assets which the Company does not believe meet the “more likely than not” criteria. The Company’s judgments regarding future taxable income may change over time due to changes in market conditions, changes in tax laws, tax planning strategies or other factors. If the Company’s assumptions and consequently its estimates change in the future, the valuation allowance the Company has established may be increased or decreased, resulting in a material respective increase or decrease in income tax expense (benefit) and related impact on the Company’s reported net income (loss). | |||||||||
In accordance with FASBs guidance on Accounting for Uncertainty in Income Taxes, the Company performs a comprehensive review of uncertain tax positions regularly. In this regard, an uncertain tax position represents an expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return or claim, which has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, the Company does not recognize the tax benefits resulting from such positions and reports the tax effects as a liability for uncertain tax positions in our consolidated financial statements. The Company recognizes potential interest and penalties on uncertain tax positions within provision (benefit) for income taxes on the consolidated statement of operations. | |||||||||
Stock-Based Compensation | |||||||||
Stock-based compensation for stock option and restricted stock units issued to the Company’s employees is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period, on a straight-line basis. The fair value of restricted stock units is based on the fair market value of the Company’s common stock on the date of grant. The Company uses the Black-Scholes option-pricing model for valuing stock option awards granted to employees and directors at the grant date. Determining the fair value of stock option awards at the grant date requires the input of various assumptions, including fair value of the underlying common stock, expected future share price volatility, expected term, risk-free interest rate and dividend rate. Changes in these assumptions can materially affect the fair value of the options. The Company based its estimate of expected volatility on the estimated volatility of similar entities whose share prices are publicly available. The risk-free interest rate is based on the U.S. Treasury yields in effect at the time of grant for periods corresponding to the expected life of the options. The weighted average expected life of options was calculated using the simplified method. This decision was based on the lack of relevant historical data due to the Company’s limited experience. The expected dividend yield is zero because the Company has not historically paid dividends and has no present intention to pay dividends. The Company establishes the estimated forfeiture rates based on historical experience. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period which is equal to the vesting period. | |||||||||
The Company has elected to treat share-based payment awards with graded vesting schedules and time-based service conditions as single awards and recognizes stock-based compensation expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. | |||||||||
The Company recognizes non-employee stock-based compensation expenses based on the estimated fair value of the equity instrument determined using the Black-Scholes option-pricing model. Management believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee variable stock award is re-measured each period until a commitment date is reached, which is generally the vesting date. | |||||||||
Earnings per Share | |||||||||
The Company applies the two-class method for calculating earnings per share. Under the two–class method, net income is allocated between common stock and other participating securities based on their participation rights. Basic earnings per share is calculated by dividing income allocable to common stockholders (after the reduction for any preferred stock dividends assuming current income for the period had been distributed) by the weighted average number of shares of common stock outstanding, net of shares subject to repurchase by the Company, during the period. Diluted earnings per share is calculated by dividing the net income allocable to common stockholders by the weighted average number of common shares outstanding, adjusted for the effects of potentially dilutive common stock, which are comprised of stock options, warrants to purchase common stock and convertible preferred stock. | |||||||||
Segment Information | |||||||||
The Company operates in one segment related to the design, development and sale of high speed analog connectivity components that operate to maintain, amplify and improve signal integrity at high speeds in a wide variety of applications. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews operating results on an aggregate basis and manages the Company’s operations as a single operating segment. | |||||||||
Recent Accounting Pronouncements | |||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued a guidance to improve the reporting reclassifications out of accumulated other comprehensive income of various components. The guidance requires presentation of significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification either parenthetically on the face of the financial statements or in the notes. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this guidance during the year ended December 31, 2013. | |||||||||
In July 2013, the FASB issued a guidance on the“Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The update provides that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update do not require new recurring disclosures. The amendments are effective prospectively for reporting periods beginning after December 15, 2013. The Company is currently assessing the potential impact of the adoption of this update on the consolidated financial statements. |
Investments
Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments | ' | ||||||||||||||||
2. Investments | |||||||||||||||||
The following table summarizes the investments by investment category: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Cost | Gross | Gross | Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gain | Loss | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
US treasury securities | $ | 25,061 | $ | 11 | $ | — | $ | 25,072 | |||||||||
Municipal bonds | 34,912 | 105 | (34 | ) | 34,983 | ||||||||||||
Corporate notes/bonds | 28,565 | 105 | (22 | ) | 28,648 | ||||||||||||
Certificate of deposit | 1,500 | 1 | — | 1,501 | |||||||||||||
Asset backed securities | 685 | 1 | — | 686 | |||||||||||||
Total investments | $ | 90,723 | $ | 223 | $ | (56 | ) | $ | 90,890 | ||||||||
December 31, 2012 | |||||||||||||||||
Cost | Gross | Gross | Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gain | Loss | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
US treasury securities | $ | 24,696 | $ | 13 | $ | — | $ | 24,709 | |||||||||
Municipal bonds | 38,378 | 223 | (6 | ) | 38,595 | ||||||||||||
Corporate notes/bonds | 22,154 | 139 | — | 22,293 | |||||||||||||
Certificate of deposit | 2,500 | 5 | (1 | ) | 2,504 | ||||||||||||
Asset backed securities | 3,000 | 6 | — | 3,006 | |||||||||||||
Total investments | $ | 90,728 | $ | 386 | $ | (7 | ) | $ | 91,107 | ||||||||
As of December 31, 2013, we had 18 investments that were in an unrealized loss position. The gross unrealized losses on these investments at December 31, 2013 were primarily due to changes in interest rates and determined to be temporary in nature. The Company reviews the investments to identify and evaluate investments that have an indication of possible other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. | |||||||||||||||||
The realized gain related to the Company’s available-for-sale investment, which was reclassified from other comprehensive income, was included in other income in the consolidated statements of income. | |||||||||||||||||
The contractual maturities of available-for-sale securities at December 31, 2013 are presented in the following table: | |||||||||||||||||
Cost | Fair Value | ||||||||||||||||
Due in one year or less | $ | 42,056 | $ | 42,112 | |||||||||||||
Due between one and five years | 48,667 | 48,778 | |||||||||||||||
$ | 90,723 | $ | 90,890 | ||||||||||||||
In August 2013, the Company used cash to purchase a minority interest in an early stage private company for $2,621. The Company’s ownership in the entity is less than 10% and the Company has no significant influence, therefore, the investment is accounted for under the cost method and included in other assets in the Company’s consolidated balance sheets. |
Concentrations
Concentrations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Concentrations | ' | ||||||||||||
3. Concentrations | |||||||||||||
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and trade accounts receivable. The Company extends differing levels of credit to customers and does not require collateral deposits. As of December 31, 2013 and 2012, the Company maintained an allowance for doubtful accounts of $152. | |||||||||||||
The following table summarizes the significant customers’ and distributors’ accounts receivable and revenue as a percentage of total accounts receivable and total revenue, respectively: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Accounts Receivable | |||||||||||||
Customer A | 11 | % | 12 | % | |||||||||
Customer B | * | 11 | |||||||||||
* | Less than 10% of total accounts receivable | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | |||||||||||||
Customer A | 12 | % | 19 | % | 27 | % | |||||||
Customer B | 15 | 15 | 14 | ||||||||||
Certain other customers are distributors that sell the Company’s products exclusively to what would be a “Customer C†above if we were able to include the sales made to those distributors. In the aggregate, revenue to such end customer, including revenue made through distributors as a percentage of total revenue was 11%, 14% and 11% for the years ended December 31, 2013, 2012 and 2011, respectively. In addition, certain other customers are subcontractors of customers A and B above. In the aggregate, revenue to Customer A, including its subcontractors as a percentage of total revenue was 20%, 23% and 27% for the years ended December 31, 2013, 2012 and 2011, respectively. In the aggregate, revenue to Customer B, including its subcontractor as a percentage of total revenue was 16%, 15% and 14% for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories | ' | ||||||||
4. Inventories | |||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 670 | $ | 545 | |||||
Work in process | 2,001 | 1,592 | |||||||
Finished goods | 4,096 | 2,757 | |||||||
$ | 6,767 | $ | 4,894 | ||||||
Finished goods include amounts held by distributors of $543 and $341 as of December 31, 2013 and 2012, respectively. |
Property_and_Equipment_net
Property and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment, net | ' | ||||||||
5. Property and Equipment, net | |||||||||
Property and equipment consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Laboratory and production equipment | $ | 34,443 | $ | 22,692 | |||||
Office, software and computer equipment | 8,649 | 6,206 | |||||||
Furniture and fixtures | 834 | 634 | |||||||
Leasehold improvements | 3,952 | 3,226 | |||||||
47,878 | 32,758 | ||||||||
Less accumulated depreciation | (25,418 | ) | (18,865 | ) | |||||
$ | 22,460 | $ | 13,893 | ||||||
Depreciation and amortization expense for the years ended December 31, 2013, 2012 and 2011 was $7,508, $4,908 and $2,962, respectively. | |||||||||
As of December 31, 2013 and 2012, computer software costs included in property and equipment were $2,815 and $2,180, respectively. Amortization expense of capitalized computer software costs was $283, $280 and $235 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Identifiable_Intangible_Assets
Identifiable Intangible Assets | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Identifiable Intangible Assets | ' | ||||
6. Identifiable Intangible Assets | |||||
During the third quarter of 2011, the Company decided to discontinue the sale of acquired legacy products in Taiwan and as a result, evaluated the carrying value of long-lived assets of the related asset group, which resulted in impairment of all identifiable intangible assets. The impairment losses were presented in the statements of operations for the year ended December 31, 2011 as follows: | |||||
Cost of revenue | $ | 654 | |||
Research and development | 122 | ||||
Sales and marketing | 632 | ||||
$ | 1,408 | ||||
Other_Longterm_Liabilities
Other Long-term Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Long-term Liabilities | ' | ||||||||
7. Other Long-term Liabilities | |||||||||
Other long-term liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred rent | $ | 1,471 | $ | 1,570 | |||||
Income tax payable | 3,295 | 2,452 | |||||||
Deferred tax liabilities | 1,099 | — | |||||||
$ | 5,865 | $ | 4,022 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
8. Income Taxes | |||||||||||||
Income (loss) before income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | (2,507 | ) | $ | (2,852 | ) | $ | 2,395 | |||||
Foreign | (8,919 | ) | (4,166 | ) | (1,682 | ) | |||||||
Total | $ | (11,426 | ) | $ | (7,018 | ) | $ | 713 | |||||
Income tax provision (benefit) consisted of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
U.S. Federal | $ | 1,816 | $ | 3,760 | $ | 2,811 | |||||||
U.S. State | 1 | (132 | ) | 1,180 | |||||||||
Foreign | 98 | 91 | (17 | ) | |||||||||
1,915 | 3,719 | 3,974 | |||||||||||
Deferred: | |||||||||||||
U.S. Federal | (135 | ) | 4,842 | (2,396 | ) | ||||||||
U.S. State | — | 5,088 | (2,742 | ) | |||||||||
Foreign | (28 | ) | 24 | (54 | ) | ||||||||
(163 | ) | 9,954 | (5,192 | ) | |||||||||
Total | $ | 1,752 | $ | 13,673 | $ | (1,218 | ) | ||||||
Income tax provision (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 34% in 2013 and 35% in both 2012 and 2011 to income (loss) before income taxes as a result of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision (benefit) at statutory rate | $ | (3,886 | ) | $ | (2,456 | ) | $ | 249 | |||||
State income taxes | 303 | 200 | 217 | ||||||||||
Research and development credits | (5,850 | ) | (1,345 | ) | (2,672 | ) | |||||||
Change in valuation allowance | 6,781 | 15,247 | 433 | ||||||||||
Foreign earnings, taxed at different rates | 2,888 | 1,649 | 670 | ||||||||||
Unrecognized tax benefits | 1,708 | 1,487 | 1,153 | ||||||||||
Stock-based compensation | 142 | 336 | 95 | ||||||||||
Tax exempt income | (157 | ) | (197 | ) | (135 | ) | |||||||
Prior year return to provision adjustment | (257 | ) | (1,264 | ) | (1,244 | ) | |||||||
Other | 80 | 16 | 16 | ||||||||||
$ | 1,752 | $ | 13,673 | $ | (1,218 | ) | |||||||
Significant components of the Company’s net deferred taxes consist of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carry forwards | $ | 8,532 | $ | 7,344 | |||||||||
Research and development credits | 15,460 | 10,450 | |||||||||||
Stock-based compensation | 5,192 | 3,560 | |||||||||||
Other temporary differences | 1,703 | 1,317 | |||||||||||
Valuation allowance | (22,448 | ) | (15,680 | ) | |||||||||
Total deferred tax assets | 8,439 | 6,991 | |||||||||||
Deferred tax liabilities | |||||||||||||
Subpart F income on foreign subsidiaries earnings | (5,621 | ) | (5,606 | ) | |||||||||
Amortization and depreciation | (2,790 | ) | (1,385 | ) | |||||||||
Total deferred tax liabilities | (8,411 | ) | (6,991 | ) | |||||||||
Deferred tax assets, net | $ | 28 | $ | — | |||||||||
At December 31, 2013 and 2012, the Company has recorded a deferred tax charge of $4,200 and $5,138, respectively, which represents the tax on the intercompany transfer of intangible assets in connection with the Company’s international reorganization during 2010. The deferred tax charge is being amortized over the estimated useful life of 8 years to income tax expense. | |||||||||||||
Valuation Allowance | |||||||||||||
The Company records a valuation allowance to reduce deferred tax assets to the amount that the Company believes is more likely than not to be realized. The determination of recording or releasing tax valuation allowances is made, in part, pursuant to an assessment performed by management regarding the likelihood that the Company will generate sufficient future taxable income against which benefits of the deferred tax assets may or may not be realized. This assessment requires management to exercise significant judgment and make estimates with respect to the Company’s ability to generate revenue, gross profits, operating income and taxable income in future periods. Amongst other factors, management must make assumptions regarding overall current and projected business and semiconductor industry conditions, operating efficiencies, the Company’s ability to timely develop, introduce and consistently manufacture new products to customers’ specifications, acceptance of new products, customer concentrations, technological change and the competitive environment which may impact the Company’s ability to generate taxable income and, in turn, realize the value of the deferred tax assets. The Company uses the tax law ordering approach of intraperiod allocation to allocate the benefit of windfall tax benefits based on provisions in the tax law that identify the sequence in which those amounts are utilized for tax purposes. Additionally, when determining whether uncertain tax positions are a source of income for valuation allowance purposes, the Company applies the tax law ordering approach to determine how these liabilities will ultimately be satisfied. | |||||||||||||
At December 31, 2012, the Company established full valuation allowances of approximately $14,827 against certain U.S. deferred tax assets, and valuation allowances of approximately $853 against deferred tax assets of the Company’s subsidiaries in Singapore and Taiwan, to reflect the deferred tax asset at the net amount that is more likely than not to be realized. The decision to establish the valuation allowance in 2012 was due to negative evidence which includes the Company’s cumulative losses in U.S., Singapore and Taiwan after considering permanent tax differences, the passage of a California tax law requiring use of single sales factor, which reduces the amount of California taxable income starting 2013. | |||||||||||||
The valuation allowance increased $6,768, $15,247 and $433 in the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
General Income Tax Disclosures | |||||||||||||
The Company has net operating loss (“NOL”) carryforwards for federal and state income tax purposes of approximately $14,370 and $32,638, respectively at December 31, 2013 that will begin to expire in 2022 for federal income tax purposes and in 2014 for state income tax purposes. The Company has additional federal and state NOL carryover as of December 31, 2013 of $22,568 and $12,417, respectively, arising from an excess stock option deduction that were not recognized in the financial statements. These excess stock option compensation benefits will be credited to additional paid-in capital when it reduces current taxable income. At December 31, 2013, the Company has NOL carryforwards of $3,225 for its Taiwan subsidiary which begin to expire in 2019, and $10,101 for the Singapore subsidiary, which do not expire. A full valuation allowance has been provided on NOL carryforwards. | |||||||||||||
At December 31, 2013, the Company also has federal and state research and development (“R&D”) tax credit carryforwards of $10,662 and $12,186, respectively. The federal tax credits will begin to expire in 2024, unless previously utilized. The state tax credits do not expire. A full valuation allowance has been provided on R&D tax credit carryforwards. | |||||||||||||
Pursuant to Internal Revenue Code sections 382 and 383, use of the Company’s NOL and R&D credits generated prior to June 2004 are subject to an annual limitation due to a cumulative ownership percentage change that occurred in that period. The Company has had two changes in ownership, one in December 2000 and the second in June 2004, that resulted in an annual limitation on NOL and R&D credit utilization. The NOL and R&D credit carryforward which will expire unused due to annual limitation is not recognized for financial statement purposes and is not reflected in the above carryover amounts. | |||||||||||||
The Company recorded a benefit of $1,264 to its 2012 income tax provision for a prior year return to provision adjustment, which primarily relates to 2011 R&D tax credits for which a full valuation allowance was provided and therefore, had no impact on the total tax provision. The Company recorded a benefit of $1,244 to its 2011 income tax provision for a prior year return to provision adjustment, which primarily relates to California state income taxes. The Company files an income tax return in California the laws of which generally require the results of all affiliated companies, both domestic and foreign, that are engaged in a unitary business to be included in the California return (i.e., worldwide combined reporting basis). However, California law also provides that a California company may make a so-called “Water’s Edge” election which limits the results included in the combined reporting to only the companies that are subject to tax in the United States. Once a California Water’s Edge election is made with a timely filed California tax return, the filing Company is required to file using the Water’s Edge for seven years. 2010 was the first year the Company was subject to the California worldwide combined reporting method. As of December 31, 2010, the Company intended to make the Water’s Edge election with the 2010 California income tax return and recorded its 2010 state income tax expense based upon this method. However, in October 2011, the Company filed its 2010 California tax return on a worldwide combined reporting basis rather than making the Water’s Edge election. The Company’s decision to file its 2010 California income tax return on a worldwide combined reporting basis was a result of information and circumstances arising in 2011 surrounding expectations of future taxable income under each filing election. | |||||||||||||
The Company operates under tax holiday in Singapore, which is effective through May 2020. The tax holiday is conditional upon meeting certain employment, activities and investment thresholds. The impact of the Singapore tax holiday decreased Singapore taxes by $0 for 2013, $0 for 2012 and $95 for 2011. | |||||||||||||
The following table summarizes the changes in gross unrecognized tax benefits: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance as of January 1 | $ | 6,155 | $ | 4,132 | $ | 2,985 | |||||||
Increases based on tax positions related to the current year | 1, 918 | 1,418 | 1,239 | ||||||||||
Increase (decreases) based on tax positions of prior year | (42 | ) | 605 | (92 | ) | ||||||||
Balance as of December 31 | $ | 8,031 | $ | 6,155 | $ | 4,132 | |||||||
As of December 31, 2013, the Company had approximately $3,295 of unrecognized tax benefits that if recognized would affect the effective income tax rate. The Company believes that before the end of next year, it is reasonably possible that statute of limitation on income tax examination period will expire. Given the uncertainty, the Company can only determine a range of estimated potential decreases in underlying unrecognized tax benefits ranging from $0 to approximately $875. | |||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company recognized no interest or penalties during the years ended December 31, 2013, 2012 and 2011 as the prior year’s unrecognized tax benefits reduce tax attributes that have not yet been utilized on the Company’s tax return. | |||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction, state of California and certain foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for tax years ended on or before December 31, 2009 or to California state income tax examinations for tax years ended on or before December 31, 2008. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or credit carryforward. | |||||||||||||
The Company does not provide for U.S. income taxes on undistributed earnings of its controlled foreign corporations that are intended to be invested indefinitely outside the United States. At December 31, 2013, the Company’s foreign subsidiaries had an accumulated deficit. However, no U.S. deferred tax asset was recorded for the accumulated deficit as it was not apparent as of December 31, 2013, that such deferred tax asset would reverse in the foreseeable future. | |||||||||||||
In October 2012, the Company received notification from the California Franchise Tax Board that the 2009 and 2010 California tax returns will be examined. The Company believes it has adequate reserve for its uncertain tax positions, however, there is no assurance that the taxing authorities will not propose adjustments that are different from the Company’s expected outcome and such adjustments may impact the provision for income taxes. The California Franchise Tax Board examination is on-going as of report date. | |||||||||||||
In June 2013, the Singapore subsidiary received notification from the Inland Revenue Authority of Singapore that the 2010 tax return will be reviewed. The review is on-going as of report date. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
9. Earnings Per Share | |||||||||||||
The following shows the computation of basic and diluted earnings per share: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator | |||||||||||||
Net income (loss) | $ | (13,178 | ) | $ | (20,691 | ) | $ | 1,931 | |||||
Less amount allocable to unvested early exercised options and unvested restricted stock award | — | — | (1 | ) | |||||||||
Net income (loss) allocable to common stockholders—basic and diluted | $ | (13,178 | ) | $ | (20,691 | ) | $ | 1,930 | |||||
Denominator | |||||||||||||
Weighted average common stock | 29,495,856 | 28,391,528 | 26,820,662 | ||||||||||
Less weighted average unvested common stock subject to repurchase and unvested restricted stock award | (2,851 | ) | (12,848 | ) | (21,425 | ) | |||||||
Weighted average common stock—basic | 29,493,005 | 28,378,680 | 26,799,237 | ||||||||||
Effect of potentially dilutive securities: | |||||||||||||
Add options to purchase common stock | — | — | 2,547,945 | ||||||||||
Add unvested restricted stock unit | — | — | 9,442 | ||||||||||
Add warrants to purchase common stock | — | — | 10,799 | ||||||||||
Weighted-average common stock—diluted | 29,493,005 | 28,378,680 | 29,367,423 | ||||||||||
Earnings per share | |||||||||||||
Basic | $ | (0.45 | ) | $ | (0.73 | ) | $ | 0.07 | |||||
Diluted | $ | (0.45 | ) | $ | (0.73 | ) | $ | 0.07 | |||||
The following securities were not included in the computation of diluted earnings per share as inclusion would have been anti-dilutive: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Common stock options | 4,373,642 | 4,797,873 | 965,266 | ||||||||||
Warrant to purchase redeemable convertible preferred stock | 1,696 | 2,142 | — | ||||||||||
Unvested restricted stock award and restricted stock unit | 3,030,202 | 1,608,464 | 410,981 | ||||||||||
7,405,540 | 6,408,479 | 1,376,247 | |||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
10. Stock Based Compensation | |||||||||||||||||
In 2000, the Company adopted the 2000 Stock Option/Stock Issuance Plan (the “2000 Plan”). Under the provisions of the 2000 Plan, employees, outside directors, consultants and other independent advisors who provide services to the Company may be issued incentive and non-qualified stock options to purchase common stock or may be issued shares of common stock directly. The Board of Directors is authorized to administer the 2000 Plan and establish the stock option terms, including the exercise price and vesting period. Options granted under the plan may have varying vesting schedules; however, options generally vest 25% upon completion of one year of service and thereafter in 36 equal monthly installments. Options granted are immediately exercisable and the shares issued upon exercise of the option are subject to a repurchase right held by the Company. The repurchase price under the repurchase right is the original exercise price and the right lapses in accordance with the option-vesting schedule. As of December 31, 2013 and 2012, there were no unvested shares outstanding subject to the Company’s right of repurchase. The proceeds received from the unvested early exercise of options are presented in the balance sheet as liabilities and subsequently classified to equity based on the vesting schedule. The vesting of certain options granted or shares issued under the 2000 Plan is subject to acceleration of vesting upon the occurrence of certain events as defined in the 2000 Plan. | |||||||||||||||||
Under the 2000 Plan, the exercise price, in the case of an incentive stock option, can-not be less than 100%, and in the case of a nonqualified stock option, not less than 85%, of the fair market value of such shares on the date of grant. The term of the option is determined by the Board but in no case can exceed 10 years. | |||||||||||||||||
In June 2010, the Board of Directors approved the Company’s 2010 Stock Incentive Plan (the “2010 Plan”), which became effective in November 2010. The 2010 Plan provides for the grants of restricted stock, stock appreciation rights and stock unit awards to employees, non-employee directors, advisors and consultants. The Board of Directors administers the 2010 Plan, including the determination of the recipient of an award, the number of shares subject to each award, whether an option is to be classified as an incentive stock option or nonstatutory option, and the terms and conditions of each award, including the exercise and purchase prices and the vesting or duration of the award. Options granted under the 2010 Plan are exercisable only upon vesting. At December 31, 2013, 1,699,295 shares of common stock have been reserved for future grants under the 2010 Plan. | |||||||||||||||||
Stock Option Awards | |||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 1.41 | % | 1.32 | % | 2.66 | % | |||||||||||
Expected life (in years) | 6.25 | 6.22 | 6.41 | ||||||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected volatility | 50 | % | 50 | % | 50 | % | |||||||||||
The following table summarizes information regarding options outstanding: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price Per Share | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Outstanding at December 31, 2012 | 4,636,680 | $ | 8.2 | 6.39 | $ | 13,264 | |||||||||||
Granted | 237,400 | 9.79 | |||||||||||||||
Exercised | (852,799 | ) | 3.41 | ||||||||||||||
Canceled | (138,184 | ) | 10.89 | ||||||||||||||
Outstanding at December 31, 2013 | 3,883,097 | $ | 9.26 | 6.33 | $ | 16,229 | |||||||||||
Exercisable at December 31, 2013 | 2,637,533 | $ | 7.99 | 5.51 | $ | 13,993 | |||||||||||
Vested at December 31, 2013 | 2,453,119 | $ | 7.87 | 5.47 | $ | 13,392 | |||||||||||
Vested and expected to vest in the future as of December 31, 2013 | 3,853,025 | $ | 9.24 | 6.31 | $ | 16,171 | |||||||||||
The intrinsic value of options outstanding, exercisable and vested and expected to vest is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of the respective balance sheet dates. | |||||||||||||||||
The weighted average grant date fair value per share of stock options granted to employees during the years ended December 31, 2013, 2012 and 2011 was $4.82, $6.18 and $10.54, respectively. | |||||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $7,313, $6,861 and $45,613, respectively. The intrinsic value of exercised options is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of the exercise date. Cash received from the exercise of stock options was $2,905, $1,828 and $4,505, respectively, for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Stock Option Exchange Offer | |||||||||||||||||
On September 20, 2012, the Company commenced an offering to eligible employees to voluntarily exchange certain vested and unvested stock option grants. Under the program, eligible employees holding options to purchase the Company’s common stock were given the opportunity to exchange certain of their existing options, with exercise prices at or above $16.63 per share for a predetermined smaller number of stock options to be granted following the expiration of the tender offer with exercise prices equal to the fair market value of one share of the Company’s common stock on the day the new awards were issued. Stock options to purchase an aggregate of 508,399 shares with exercise prices ranging from $16.63 to $22.07 were eligible for tender at the commencement of the program. The Company’s directors and executive officers were not eligible to participate in the program. The program is structured as a value-neutral exchange. The replacement awards would be targeted at providing value that is, in the aggregate, not greater than the fair value of the exchanged stock options. This means that the employees who participate in the program are expected to receive a number of replacement awards with an aggregate value that does not exceed the aggregate value of the stock options surrendered in the exchange. The terms and conditions of the new options, including the vesting schedules, will be substantially the same as the terms and conditions of the options cancelled. | |||||||||||||||||
On October 19, 2012, the offer period ended and the Company accepted for exchange and cancellation 464,899 vested and unvested eligible options to purchase common stock, with a weighted average exercise price of $21.06. In exchange, the Company issued 353,779 vested and unvested options to purchase shares of the Company’s common stock with an exercise price of $8.93, the closing price of the Company’s common stock on October 22, 2012. Using the Black-Scholes option pricing model, the Company determined that the fair value of the surrendered stock options on a grant-by-grant basis was approximately equal, as of the date of the exchange, to the fair value of the eligible stock options exchanged, resulting in insignificant incremental share-based compensation. | |||||||||||||||||
Restricted Stock Units and Awards | |||||||||||||||||
The Company granted restricted stock units (RSU) to members of the Board of Directors and employees. Most of the Company’s outstanding restricted stock units vest over four years with vesting contingent upon continuous service. The Company estimates the fair value of restricted stock units using the market price of the common stock on the date of the grant. The fair value of these awards is amortized on a straight-line basis over the vesting period. | |||||||||||||||||
The following table summarizes information regarding outstanding restricted stock units: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Outstanding at December 31, 2012 | 1,791,291 | $ | 14.62 | ||||||||||||||
Granted | 2,231,997 | 9.85 | |||||||||||||||
Vested | (595,296 | ) | 13.85 | ||||||||||||||
Canceled | (218,425 | ) | 11.1 | ||||||||||||||
Outstanding at December 31, 2013 | 3,209,567 | $ | 11.69 | ||||||||||||||
Expected to vest in the future as of December 31, 2013 | 3,111,847 | ||||||||||||||||
The Company granted restricted stock awards (RSAs) to certain members of the Board of Directors. The Company estimates the fair value of the RSAs using the market price of the common stock on the date of the grant. As of December 31, 2010, the Company had 35,355 outstanding unvested RSAs, 13,930 of which vested during the year ended December 31, 2011 resulting to 21,425 unvested RSAs outstanding as of December 31, 2011. During 2012, 8,576 RSAs vested, resulting to 12,849 unvested RSAs outstanding as of December 31, 2012. During 2013, 9,998 RSAs vested, resulting to 2,851 unvested RSAs outstanding as of December 31, 2013. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
In December 2011, the Company adopted the Employee Stock Purchase Plan (“ESPP”). Participants purchase the Company’s stock using payroll deductions, which may not exceed 15% of their total cash compensation. Pursuant to the terms of the ESPP, the “look-back” period for the stock purchase price is six months. Offering and purchase periods will begin on February 10 and August 10 of each year. Participants will be granted the right to purchase common stock at a price per share that is 85% of the lesser of the fair market value of the Company’s common shares at the beginning or the end of each six-month period. | |||||||||||||||||
The ESPP imposes certain limitations upon an employee’s right to acquire common stock, including the following: (i) no employee shall be granted a right to participate if such employee immediately after the election to purchase common stock, would own stock possessing 5% or more to the total combined voting power or value of all classes of stock of the Company, and (ii) no employee may be granted rights to purchase more than $25 fair value of common stock for each calendar year. The maximum aggregate number of shares of common stock available for purchase under the ESPP is one million shares. Total common stock issued under the ESPP during the years ended December 31, 2013 and 2012 was 279,074 and 101,088, respectively. | |||||||||||||||||
The fair value of employee stock purchase plan is estimated at the start of offering period using the Black-Scholes option pricing model with the following average assumptions for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk-free interest rate | 0.1 | % | 0.13 | % | |||||||||||||
Expected life (in years) | 0.49 | 0.5 | |||||||||||||||
Dividend yield | — | — | |||||||||||||||
Expected volatility | 45 | % | 81 | % | |||||||||||||
Estimated fair value | $ | 2.86 | $ | 4.69 | |||||||||||||
Stock-Based Compensation Expense | |||||||||||||||||
Stock-based compensation expense is included in the Company’s results of operations as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenue | $ | 1,086 | $ | 726 | $ | 315 | |||||||||||
Research and development | 8,586 | 5,833 | 3,214 | ||||||||||||||
Sales and marketing | 3,204 | 2,660 | 2,054 | ||||||||||||||
General and administrative | 4,102 | 3,240 | 1,609 | ||||||||||||||
$ | 16,978 | $ | 12,459 | $ | 7,192 | ||||||||||||
As of December 31, 2013, total unrecognized compensation cost related to unvested stock options and awards at December 31, 2013, prior to the consideration of expected forfeitures, was approximately $35,667, which is expected to be recognized over a weighted-average period of 2.56 years. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan | ' |
11. Employee Benefit Plan | |
The Company has established a 401(k) tax-deferred savings plan (the “Plan”) which permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. The Company may, at its discretion, make matching contributions to the Plan. Furthermore, the Company is responsible for administrative costs of the Plan. The Company has not made contributions to the Plan since its inception. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Measurements | ' | ||||||||||||
12. Fair Value Measurements | |||||||||||||
The guidance on fair value measurements requires fair value measurements to be classified and disclosed in one of the following three categories: | |||||||||||||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |||||||||||||
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability, or | |||||||||||||
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). | |||||||||||||
The Company measures its investments in marketable securities at fair value using the market approach which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company has cash equivalents which consist of money market funds valued using the amortized cost method, in accordance with Rule 2a-7 under the 1940 Act which approximates fair value. | |||||||||||||
The following table presents information about assets and liabilities required to be carried at fair value on a recurring basis: | |||||||||||||
31-Dec-13 | Total | Level 1 | Level 2 | ||||||||||
Assets | |||||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 5,119 | $ | — | $ | 5,119 | |||||||
Investment in marketable securities: | |||||||||||||
US treasury securities | 25,072 | 25,072 | — | ||||||||||
Municipal bonds | 34,983 | — | 34,983 | ||||||||||
Corporate notes/bonds | 28,648 | — | 28,648 | ||||||||||
Certificate of deposit | 1,501 | — | 1,501 | ||||||||||
Asset backed securities | 686 | — | 686 | ||||||||||
$ | 96,009 | $ | 25,072 | $ | 70,937 | ||||||||
Total | Level 1 | Level 2 | |||||||||||
December 31, 2012 | |||||||||||||
Assets | |||||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 9,258 | $ | — | $ | 9,258 | |||||||
Investment in marketable securities: | |||||||||||||
US treasury securities | 24,709 | 24,709 | — | ||||||||||
Municipal bonds | 38,595 | — | 38,595 | ||||||||||
Corporate notes/bonds | 22,293 | — | 22,293 | ||||||||||
Certificate of deposit | 2,504 | — | 2,504 | ||||||||||
Asset backed securities | 3,006 | — | 3,006 | ||||||||||
$ | 100,365 | $ | 24,709 | $ | 75,656 | ||||||||
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment and Geographic Information | ' | ||||||||||||
13. Segment and Geographic Information | |||||||||||||
The Company operates in one reportable segment. The Company’s Chief Executive Officer, who is considered to be the chief operating decision maker, manages the Company’s operations as a whole and reviews consolidated financial information for purposes of evaluating financial performance and allocating resources. Revenue by region is classified based on the locations to which the product is transported, which may differ from the customer’s principal offices. | |||||||||||||
The following table sets forth the Company’s revenue by geographic region: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Korea | $ | 21,818 | $ | 17,424 | $ | 14,421 | |||||||
United States | 22,389 | 21,582 | 16,791 | ||||||||||
China | 23,039 | 20,724 | 23,378 | ||||||||||
Other | 35,418 | 31,476 | 24,707 | ||||||||||
$ | 102,664 | $ | 91,206 | $ | 79,297 | ||||||||
As of December 31, 2013, $5,217 of long-lived tangible assets are located outside the United States of which $4,694 are located in Taiwan. As of December 31, 2012, $4,090 of long-lived tangible assets are located outside the United States of which $3,668 are located in Taiwan. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies | ' | ||||
14. Commitments and Contingencies | |||||
Leases | |||||
The Company leases its facility under noncancelable lease agreements expiring in various years through 2018. The Company also licenses certain software used in its research and development activities under a term license subscription and maintenance arrangement. | |||||
Future minimum lease payments under noncancelable operating leases having initial terms in excess of one year are as follows: | |||||
December 31, 2013 | |||||
2014 | $ | 6,893 | |||
2015 | 6,266 | ||||
2016 | 3,096 | ||||
2017 | 1,832 | ||||
2018 | 188 | ||||
$ | 18,275 | ||||
For the years ended December 31, 2013, 2012 and 2011, lease operating expense was $5,990, $3,980 and $3,445, respectively. | |||||
Noncancelable Purchase Obligations | |||||
We depend upon third party subcontractors to manufacture our wafers. Our subcontractor relationships typically allow for the cancellation of outstanding purchase orders, but require payment of all expenses incurred through the date of cancellation. As of December 31, 2013, the total value of open purchase orders for wafers was approximately $3,019. | |||||
Legal Proceedings | |||||
Netlist, Inc. v. Inphi Corporation, Case No. 09-cv-6900 (C.D. Cal.) | |||||
On September 22, 2009, Netlist filed suit in the United States District Court, Central District of California, or the Court, asserting that the Company infringes U.S. Patent No. 7,532,537. Netlist filed an amended complaint on December 22, 2009, further asserting that the Company infringes U.S. Patent Nos. 7,619,912 and 7,636,274, collectively with U.S. Patent No. 7,532,537, the patents-in-suit, and seeking both unspecified monetary damages to be determined and an injunction to prevent further infringement. These infringement claims allege that the Company’s iMB™ and certain other memory module components infringe the patents-in-suit. The Company answered the amended complaint on February 11, 2010 and asserted that the Company does not infringe the patents-in-suit and that the patents-in-suit are invalid. In 2010, Company filed inter partes requests for reexamination with the United States Patent and Trademark Office (the “USPTO”), asserting that the patents-in-suit are invalid. | |||||
On August 27, 2010, the USPTO ordered the request for Inter Partes Reexamination for U.S. Patent No. 7,636,274 and found a substantial new question of patentability based upon each of the different issues that the Company raised as the reexamination requestor. On September 27, 2011, the Patent Office issued a First Office Action based on the Netlist ‘274 Patent Reexamination Request and rejected 91 of its 97 claims. On October 27, 2011, Netlist responded to the USPTO determination by amending some but not all of the claims, adding new claims and making arguments as to the validity of the rejected claims in view of the cited references. The Company provided rebuttable comments to the USPTO on November 28, 2011. On March 12, 2012, the Examiner issued an Action Closing Prosecution, indicating that the claims pending contain allowable subject matter, and Netlist did not respond to the Action Closing Prosecution in the time provided by the USPTO. On June 22, 2012, the USPTO issued a Right of Appeal Notice, and on July 23, 2012, the Company filed a Notice of Appeal. The Company filed its Appeal Brief on September 24, 2012 and Netlist filed its Responsive Brief on October 24, 2012. The parties received an Examiner’s Answer dated April 16, 2013 from the USPTO that maintained the rejections set forth on the Right of Appeal Notice dated June 22, 2012. The Company filed a Rebuttal Brief on May 16, 2013 and a Request for Oral Hearing on June 7, 2013. The appeal hearing took place on November 20, 2013. The Patent Trial and Appeal Board (PTAB) issued its decision on January 16, 2014, finding the Examiner erred in declining to adopt 8 of the 9 different rejections that had been proposed by the Company. The Company requested a rehearing of the decision not to adopt the remaining one rejection that had been proposed by Company and was not adopted by the PTAB and is awaiting a response to that request, while Netlist has requested and been granted a one-month extension of time regarding its response to the PTAB decision. A communication from the USPTO is expected as the next substantive step of the proceeding, as prosecution otherwise remains closed. The proceeding is expected to continue in accordance with established Inter Partes Reexamination procedures. | |||||
On September 8, 2010, the USPTO ordered the request for Inter Partes Reexamination for U.S. Patent No. 7,532,537 and found a substantial new question of patentability based upon different issues that the Company raised as the reexamination requestor. The USPTO accompanied this Reexamination Order of U.S. Patent No. 7,532,537 with its own evaluation of the validity of this patent, and rejected some but not all of claims. In a response dated October 8, 2010, Netlist responded to the USPTO determination by amending some but not all of the claims, adding new claims and making arguments as to why the claims were not invalid in view of the cited references. The Company provided rebuttable comments to the USPTO on November 8, 2010 along with a Petition requesting an increase in the number of allowed pages of the rebuttable comments. On January 20, 2011, the USPTO granted the Petition in part. The Company then filed updated rebuttal comments on January 27, 2011 in compliance with the granted Petition. The USPTO has considered these updated rebuttal comments, and in a communication dated June 15, 2011, continued to reject all the previously rejected claims. The USPTO also rejected all the claims newly added in the October 8, 2010 Netlist response. In a further communication dated June 21, 2011, the USPTO issued an Action Closing Prosecution indicating that it would confirm the patentability of four claims and reject all the other pending claims. On August 22, 2011, Netlist responded to the Action Closing Prosecution by further amending some claims and making arguments as to the validity of the rejected claims in view of the cited references. The Company submitted rebuttal comments on September 21, 2011. In a further communication dated February 7, 2012, the USPTO issued a Right of Appeal Notice, which also indicated that the previous amendments to claim made by Netlist would be entered, and that the current pending claims, as amended, were patentable. The Company filed a Notice of Appeal at the USPTO on March 8, 2012, within the time period provided for filing the Notice of Appeal and Netlist did not file Notice of Cross-Appeal. The Company filed its Appeal Brief on May 8, 2012, and Netlist filed its Responsive Brief on July 2, 2012. The parties received an Examiner’s Answer dated April 16, 2013 from the USPTO that maintained the rejections set forth on the Right of Appeal Notice dated February 7, 2012. The Company filed a Rebuttal Brief on May 16, 2013 and a Request for Oral Hearing on June 7, 2013. The appeal hearing took place in front of the PTAB on November 20, 2013. The PTAB issued its decision on January 16, 2014, affirming the Examiner’s decision as to all of the challenged claims. The Company has since made a request for rehearing of the decision, and is awaiting a response to that request as the next substantive step of the proceeding, as prosecution otherwise remains closed. The proceeding is expected to continue in accordance with established Inter Partes Reexamination procedures. | |||||
On September 8, 2010, the USPTO ordered the request for Inter Partes Reexamination for U.S. Patent No. 7,619,912 and found a substantial new question of patentability based upon different issues that the Company raised as the reexamination requestor. The USPTO accompanied this Reexamination Order of U.S. Patent No. 7,619,912 with its own evaluation of the validity of this patent, and initially determined that all of the claims were patentable based upon the Company’s request for Inter Partes Reexamination. Netlist did not comment upon this Reexamination Order. The USPTO on February 28, 2011 also merged the Proceedings of the Company’s Reexamination of U.S. Patent No. 7,619,912, bearing Control No. 90/001,339 with Inter Partes Reexamination Proceeding 95/000,578 filed October 20, 2010 on behalf of SMART Modular Technologies, Inc. and Inter Partes Reexamination Proceeding 95/000,579 filed October 21, 2010 on behalf of Google, Inc. In each of these other Reexamination Proceedings, the USPTO had indicated that there existed a substantial new question of patentability with respect to certain claims of U.S. Patent No. 7,619,912, but had not accompanied the Reexamination Orders related thereto with its own evaluation of the validity of this patent, indicating that such evaluation would be forthcoming at a later time. This further evaluation was received in an Office Action dated April 4, 2011, in which the Examiner rejected a substantial majority of the claims based upon a number of different rejections, including certain of the rejections originally proposed by the Company in its Request for Reexamination. This Office Action also indicated that one claim was deemed to be patentable over the prior art of record in the merged Reexamination Proceedings. After seeking and obtaining an extension of time to respond to the Office Action dated April 4, 2011, Netlist served its response on July 5, 2011, which added new claims and made arguments as to why the originally filed claims were not invalid in view of the cited references. Each of the merged Reexamination Requestors, including the Company, submitted rebuttal comments by August 29, 2011. The USPTO considered this Netlist response and each of the rebuttal comments, and in an Office Action dated October 14, 2011, continued to reject most, but not all of the previously rejected claims, as well as rejected claims that had been added by Netlist in its July 5, 2011 response. After seeking and obtaining an extension of time to respond to the Office Action dated October 14, 2011, Netlist served its response on January 13, 2012, which response made amendments based upon subject matter that had been indicated as allowable in the Office Action dated October 14, 2011, added other new claims and made arguments as to why all of these claims should be allowed. The three different merged Reexamination Requestors, including the Company, timely submitted rebuttal comments on or about February 13, 2012. The USPTO issued a Non-final Office Action on November 13, 2012, rejecting some claims and indicating that others contained allowable subject matter. On January 14, 2013, Netlist filed a Response to the Non-final Office Action which presented further claim amendments and evidence supporting its positions regarding patentability. Rebuttal comments from the Company and the other Requestors were filed on February 13, 2013. The parties are still awaiting for the PTO’s position as to the patentability of the claims in their current form based on these recently filed communications. The merged proceeding is expected to continue in accordance with established Inter Partes Reexamination procedures. | |||||
The reexamination proceedings could result in a determination that the patents-in-suit, in whole or in part, are valid or invalid, as well as modifications of the scope of the patents-in-suit. | |||||
Based on these papers the Court in January 2014 ordered a continued stay of the proceedings, took the litigation off the active court calendar, and requested that the parties file a joint status report on May 1, 2014 and every 120 days thereafter advising the Court as to status of the reexamination proceedings at which times, the Court could decide to maintain or lift the stay. | |||||
While the Company intends to defend the foregoing lawsuit vigorously, litigation, whether or not determined in the Company’s favor or settled, could be costly and time-consuming and could divert management’s attention and resources, which could adversely affect the Company’s business. | |||||
Based on the nature of the litigation, the Company is currently unable to predict the final outcome of this lawsuit and therefore, cannot determine the likelihood of loss nor estimate a range of possible loss. However, because of the nature and inherent uncertainties of litigation, should the outcome of these actions be unfavorable, the Company’s business, financial condition, results of operations or cash flows could be materially and adversely affected. | |||||
Indemnifications | |||||
In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third-parties. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnifications. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2013 and December 31, 2012. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
15. Related Party Transactions | |
In 2007, the Company entered into a software subscription and maintenance agreement with Cadence Design Systems, Inc. (“Cadence”), a related party company. A former member of the Company’s Board of Directors is also the Chief Executive Officer, President and a director of Cadence. The Company committed to pay $7,000 payable in 16 quarterly payments through May 2011. In December 2010, the software subscription and maintenance agreement was renewed effective June 30, 2011. Under the new agreement, the Company committed to pay $5,250 payable in 10 quarterly payments through November 2013. In June 2012, the software subscription and maintenance agreement was amended to include new licensed materials effective on September 28, 2012 and expired on December 31, 2013. Under this amendment, the Company committed to pay $2,129 payable in 5 quarterly payments through November 2013. The Company paid $2,224 and $2,300 in the years ended December 31, 2012 and 2011, respectively. Operating lease expense related to this agreement included in research and development expense was $2,467 and $2,083 for the years ended December 31, 2012 and 2011, respectively. |
Supplementary_Financial_Inform
Supplementary Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Supplementary Financial Information (Unaudited) | ' | ||||||||||||||||
Supplementary Financial Information (Unaudited) | |||||||||||||||||
Quarterly Results of Operations | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Total revenue | $ | 22,584 | $ | 24,339 | $ | 26,611 | $ | 29,130 | |||||||||
Gross profit | 14,292 | 15,446 | 16,815 | 19,016 | |||||||||||||
Net income (loss) | (7,671 | ) | (1,474 | ) | (2,760 | ) | (1,273 | ) | |||||||||
Basic earnings per share | (0.27 | ) | (0.05 | ) | (0.09 | ) | (0.04 | ) | |||||||||
Diluted earnings per share | (0.27 | ) | (0.05 | ) | (0.09 | ) | (0.04 | ) | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Total revenue | $ | 20,201 | $ | 23,308 | $ | 24,762 | $ | 22,935 | |||||||||
Gross profit | 12,777 | 14,976 | 16,028 | 14,741 | |||||||||||||
Net income | (1,512 | ) | (1,570 | ) | (1,055 | ) | (16,554 | )(1) | |||||||||
Basic earnings per share | (0.05 | ) | (0.06 | ) | (0.04 | ) | (0.58 | ) | |||||||||
Diluted earnings per share | (0.05 | ) | (0.06 | ) | (0.04 | ) | (0.58 | ) | |||||||||
-1 | The provision for income taxes for the year ended December 31, 2012 included the establishment of valuation allowance against deferred tax assets. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Basis of Presentation | ' | ||||||||
Basis of Presentation | |||||||||
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and include the accounts of Inphi and subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||
In the third quarter of 2011, the Company decided to discontinue the sale of legacy products supported by its Taiwan subsidiary and transitioned the subsidiary to be a design and sales support center. The associated restructuring expense was $1,813, of which $1,408 relates to write off of certain intangibles (see note 6), $204 relates to write off of other assets and $198 relates to severance costs. The severance costs were paid in 2011 except for $95, which was paid in 2012. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
On an ongoing basis, management evaluates its estimates, including those related to (i) the collectibility of accounts receivable; (ii) write down for excess and obsolete inventories; (iii) warranty obligations; (iv) the value assigned to and estimated useful lives of long-lived assets; (v) the realization of tax assets and estimates of tax liabilities and tax reserves; (vi) the valuation of equity securities; (vii) amounts recorded in connection with acquisitions; (viii) recoverability of intangible assets and goodwill and (ix) the recognition and disclosure of contingent liabilities. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company engages third party valuation specialists to assist with estimates related to the valuation of financial instruments and assets associated with various contractual arrangements, and valuation of assets acquired in connection with acquisitions. Such estimates often require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ from those estimates under different assumptions or circumstances. | |||||||||
Foreign Currency Translation | ' | ||||||||
Foreign Currency Translation | |||||||||
The Company and its subsidiaries use the U.S. dollar as its functional currency. Foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at the exchange rate in effect during the period the transaction occurred, except for those expenses related to balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency transactions are included in the Consolidated Statements of Operations as part of “Other income (expense)”. Foreign currency gain or loss in 2013, 2012 and 2011 were not material. | |||||||||
The functional currency of the Company’s Taiwan subsidiary was the New Taiwan Dollar through the first two quarters of 2011, which required that assets and liabilities be translated into US dollars at period-end exchange rates and income, expense, and cash flow items be translated at average exchange rates prevailing during the period. The resulting currency translation adjustment was recorded as a component of accumulated other comprehensive income within stockholders’ equity. As discussed above, in 2011, the Company transitioned its Taiwan subsidiary to be a design and sales support center. The restructuring brought about a change in the subsidiary’s functional currency designation from Taiwan dollars to United States dollars. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash and cash equivalents with major financial institutions and, at times, such balances with any one financial institution may exceed Federal Deposit Insurance Corporation insurance limits. Cash equivalents primarily consist of money market funds. | |||||||||
Fair Market Value of Financial Instruments | ' | ||||||||
Fair Market Value of Financial Instruments | |||||||||
The carrying amount reflected in the balance sheet for cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable, accrued expenses and other current liabilities, approximate fair value due to the short-term nature of these financial instruments. | |||||||||
Investments in Marketable Securities | ' | ||||||||
Investments in Marketable Securities | |||||||||
Investments in marketable securities consist of available-for-sale securities. These investments are recorded at fair value with changes in fair value, net of applicable taxes, recorded as unrealized gains (losses) as a component of accumulated other comprehensive income in stockholders’ equity. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in Other (expense) income, net. The cost basis for realized gains and losses on available-for-sale securities is determined on a specific identification basis. Investments are made based on our investment policy which restricts the types of investments that can be made. The Company classified available-for-sale securities as short-term as the investments are available to be used in current operations. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventories are reduced for write downs based on periodic reviews for evidence of slow-moving or obsolete parts. The write-down is based on comparison between inventory on hand and estimated future sales for each specific product. Once written down, inventory write downs are not reversed until the inventory is sold or scrapped. Inventory write downs are also established when conditions indicate that the net realizable value is less than cost due to physical deterioration, obsolescence, changes in price level or other causes. Inventory valuation reserves were $1,479 and $1,720, as of December 31, 2013 and 2012, respectively. | |||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is provided on property and equipment over the estimated useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Repairs and maintenance are charged to expense as incurred. Useful lives by asset category are as follows: | |||||||||
Asset Category | Years | ||||||||
Office equipment | 3 years | ||||||||
Software | 3 years | ||||||||
Leasehold improvements | Shorter of lease | ||||||||
term or estimated | |||||||||
useful life | |||||||||
Production equipment | 2 years | ||||||||
Computer equipment | 5 years | ||||||||
Lab equipment | 5 years | ||||||||
Furniture and fixtures | 7 years | ||||||||
Impairment of Long-lived Assets and Goodwill | ' | ||||||||
Impairment of Long-lived Assets and Goodwill | |||||||||
Long-lived Assets | |||||||||
The Company assesses the impairment of long-lived assets, which consist primarily of property and equipment and intangible assets, whenever events or changes in circumstances indicate that such assets might be impaired and the carrying value may not be recoverable. Events or changes in circumstances that may indicate that an asset is impaired include significant decreases in the market value of an asset, significant underperformance relative to expected historical or projected future results of operations, a change in the extent or manner in which an asset is utilized, significant declines in the estimated fair value of the overall Company for a sustained period, shifts in technology, loss of key management or personnel, changes in the Company’s operating model or strategy and competitive forces. | |||||||||
If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the expected undiscounted future cash flows attributable to the asset are less than the carrying amount of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. Fair value is determined based on the present value of estimated expected future cash flows using a discount rate commensurate with the risk involved, quoted market prices or appraised values, depending on the nature of the assets. | |||||||||
Goodwill | |||||||||
Goodwill is recorded when the consideration paid for a business acquisition exceeds the fair value of net tangible and intangible assets acquired. Goodwill is measured and tested for impairment on an annual basis during the fourth fiscal quarter or more frequently if the Company believes indicators of impairment exist. | |||||||||
The performance of the test involves a two-step process. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. As the Company has only one reporting unit, the fair value of the reporting unit is determined by taking the market capitalization of the Company as determined through quoted market prices and adjusted for control premiums and other relevant factors. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process is only performed if a potential impairment exists, and it involves determining the difference between the fair value of the reporting unit’s net assets other than goodwill and the fair value of the reporting unit. If the difference is less than the net book value of goodwill, impairment exists and is recorded. In the event that the Company determines that the value of goodwill has become impaired, the Company will record an accounting charge for the amount of impairment during the fiscal quarter in which the determination is made. The Company has not been required to perform this second step of the process because the fair value of the reporting unit has significantly exceeded its book value at every measurement date. The guidance also provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. There was no impairment of goodwill in 2013, 2012 and 2011. | |||||||||
Internal Use Software Costs | ' | ||||||||
Internal Use Software Costs | |||||||||
Certain external computer software costs acquired for internal use are capitalized. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized costs are included within property and equipment. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
The Company’s products are fully functional at the time of shipment and do not require additional production, modification, or customization. The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. The Company’s sales arrangements do not include multiple elements. | |||||||||
Product revenue is recognized upon shipment of product to customers, net of accruals for estimated sales returns and allowances, which to date, have not been significant. However, some of the Company’s sales are made through distributors under arrangements that allow for price protection or rights of return on product unsold by the distributors. Product revenue on sales made through distributors with rights of return or price protection is deferred until the distributors sell the product to end customers. Sales to distributors are included in deferred revenue and the Company includes the related costs in inventory until sale to the end customers occurs. Price protection rights allow distributors the right to a credit in the event of declines in the price of the Company’s product that they hold prior to the sale to an end customer. In the event that the Company reduces the selling price of products held by distributors, deferred revenue related to distributors with price protection rights is reduced upon notification to the customer of the price change. The Company’s sales to direct customers are made primarily pursuant to standard purchase orders for delivery of products. The Company generally allows customers to cancel or change purchase orders within limited notice periods prior to the scheduled shipment. | |||||||||
Cost of Revenue | ' | ||||||||
Cost of Revenue | |||||||||
Cost of revenue includes cost of materials, such as wafers processed by third-party foundries, cost associated with packaging and assembly, test and shipping, cost of personnel, including stock-based compensation, and equipment associated with manufacturing support, logistics and quality assurance, warranty cost, write down of inventories, amortization of production mask costs, overhead and an allocated portion of occupancy costs. | |||||||||
Warranty | ' | ||||||||
Warranty | |||||||||
The Company’s products are under warranty against defects in material and workmanship generally for a period of one or two years. The Company accrues for estimated warranty cost at the time of sale based on anticipated warranty claims and actual historical warranty claims experience including knowledge of specific product failures that are outside of the Company’s typical experience. The warranty obligation is determined based on product failure rates, cost of replacement and failure analysis cost. If actual warranty costs differ significantly from these estimates, adjustments may be required in the future. As of both December 31, 2013 and 2012, the warranty liability was $40. | |||||||||
The following table sets forth changes in warranty accrual included in other accrued expenses in the Company’s consolidated balance sheets: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 40 | $ | 1,000 | |||||
Accruals for warranties | — | 790 | |||||||
Settlements | — | (1,750 | ) | ||||||
$ | 40 | $ | 40 | ||||||
In 2010, the Company was informed of a claim related to repair and replacement costs in connection with shipments of over 4,000 integrated circuits made by the Company during the summer and fall of 2009. The Company assessed, provided and accumulated additional warranty reserves based on estimated, probable costs to replace units. In 2012, based on additional investigation and discussions with the customer, the Company booked an additional warranty cost of $750. This amount was recorded as a reduction to revenue. In June 2012, the Company entered into a settlement agreement with the customer in which the Company paid $1,750 in July 2012. | |||||||||
Research and Development Expense | ' | ||||||||
Research and Development Expense | |||||||||
Research and development expense consists of costs incurred in performing research and development activities including salaries, stock-based compensation, employee benefits, occupancy costs, pre-production engineering mask costs, overhead costs and prototype wafer, packaging and test costs. Research and development costs are expensed as incurred. Reimbursements from customers related to research and development contracts are offset against research and development costs. | |||||||||
Sales and Marketing Expense | ' | ||||||||
Sales and Marketing Expense | |||||||||
Sales and marketing expense consists of salaries, stock-based compensation, employee benefits, travel and trade show costs. The Company expenses sales and marketing costs as incurred. Advertising expenses for the years ended December 31, 2013, 2012 and 2011 were not material. | |||||||||
General and Administrative Expense | ' | ||||||||
General and Administrative Expense | |||||||||
General and administrative expense consists of salaries, stock-based compensation, employee benefits and expenses for executive management, legal, finance and human resources personnel. In addition, general and administrative expense includes fees for professional services and occupancy costs. These costs are expensed as incurred. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must also make judgments in evaluating whether deferred tax assets will be recovered from future taxable income. To the extent that it believes that recovery is not likely, the Company must establish a valuation allowance. The carrying value of the Company’s net deferred tax asset is based on whether it is more likely than not that the Company will generate sufficient future taxable income to realize these deferred tax assets. A valuation allowance is established for deferred tax assets which the Company does not believe meet the “more likely than not” criteria. The Company’s judgments regarding future taxable income may change over time due to changes in market conditions, changes in tax laws, tax planning strategies or other factors. If the Company’s assumptions and consequently its estimates change in the future, the valuation allowance the Company has established may be increased or decreased, resulting in a material respective increase or decrease in income tax expense (benefit) and related impact on the Company’s reported net income (loss). | |||||||||
In accordance with FASBs guidance on Accounting for Uncertainty in Income Taxes, the Company performs a comprehensive review of uncertain tax positions regularly. In this regard, an uncertain tax position represents an expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return or claim, which has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, the Company does not recognize the tax benefits resulting from such positions and reports the tax effects as a liability for uncertain tax positions in our consolidated financial statements. The Company recognizes potential interest and penalties on uncertain tax positions within provision (benefit) for income taxes on the consolidated statement of operations. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation | |||||||||
Stock-based compensation for stock option and restricted stock units issued to the Company’s employees is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period, on a straight-line basis. The fair value of restricted stock units is based on the fair market value of the Company’s common stock on the date of grant. The Company uses the Black-Scholes option-pricing model for valuing stock option awards granted to employees and directors at the grant date. Determining the fair value of stock option awards at the grant date requires the input of various assumptions, including fair value of the underlying common stock, expected future share price volatility, expected term, risk-free interest rate and dividend rate. Changes in these assumptions can materially affect the fair value of the options. The Company based its estimate of expected volatility on the estimated volatility of similar entities whose share prices are publicly available. The risk-free interest rate is based on the U.S. Treasury yields in effect at the time of grant for periods corresponding to the expected life of the options. The weighted average expected life of options was calculated using the simplified method. This decision was based on the lack of relevant historical data due to the Company’s limited experience. The expected dividend yield is zero because the Company has not historically paid dividends and has no present intention to pay dividends. The Company establishes the estimated forfeiture rates based on historical experience. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period which is equal to the vesting period. | |||||||||
The Company has elected to treat share-based payment awards with graded vesting schedules and time-based service conditions as single awards and recognizes stock-based compensation expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. | |||||||||
The Company recognizes non-employee stock-based compensation expenses based on the estimated fair value of the equity instrument determined using the Black-Scholes option-pricing model. Management believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee variable stock award is re-measured each period until a commitment date is reached, which is generally the vesting date. | |||||||||
Earnings per Share | ' | ||||||||
Earnings per Share | |||||||||
The Company applies the two-class method for calculating earnings per share. Under the two–class method, net income is allocated between common stock and other participating securities based on their participation rights. Basic earnings per share is calculated by dividing income allocable to common stockholders (after the reduction for any preferred stock dividends assuming current income for the period had been distributed) by the weighted average number of shares of common stock outstanding, net of shares subject to repurchase by the Company, during the period. Diluted earnings per share is calculated by dividing the net income allocable to common stockholders by the weighted average number of common shares outstanding, adjusted for the effects of potentially dilutive common stock, which are comprised of stock options, warrants to purchase common stock and convertible preferred stock. | |||||||||
Segment Information | ' | ||||||||
Segment Information | |||||||||
The Company operates in one segment related to the design, development and sale of high speed analog connectivity components that operate to maintain, amplify and improve signal integrity at high speeds in a wide variety of applications. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews operating results on an aggregate basis and manages the Company’s operations as a single operating segment. | |||||||||
Recent Accounting Pronouncements | ' | ||||||||
Recent Accounting Pronouncements | |||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued a guidance to improve the reporting reclassifications out of accumulated other comprehensive income of various components. The guidance requires presentation of significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification either parenthetically on the face of the financial statements or in the notes. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this guidance during the year ended December 31, 2013. | |||||||||
In July 2013, the FASB issued a guidance on the“Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The update provides that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update do not require new recurring disclosures. The amendments are effective prospectively for reporting periods beginning after December 15, 2013. The Company is currently assessing the potential impact of the adoption of this update on the consolidated financial statements. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Useful Lives By Asset Category | ' | ||||||||
Useful lives by asset category are as follows: | |||||||||
Asset Category | Years | ||||||||
Office equipment | 3 years | ||||||||
Software | 3 years | ||||||||
Leasehold improvements | Shorter of lease | ||||||||
term or estimated | |||||||||
useful life | |||||||||
Production equipment | 2 years | ||||||||
Computer equipment | 5 years | ||||||||
Lab equipment | 5 years | ||||||||
Furniture and fixtures | 7 years | ||||||||
Changes in Warranty Accrual | ' | ||||||||
The following table sets forth changes in warranty accrual included in other accrued expenses in the Company’s consolidated balance sheets: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 40 | $ | 1,000 | |||||
Accruals for warranties | — | 790 | |||||||
Settlements | — | (1,750 | ) | ||||||
$ | 40 | $ | 40 | ||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Investments by Investment Category | ' | ||||||||||||||||
The following table summarizes the investments by investment category: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Cost | Gross | Gross | Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gain | Loss | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
US treasury securities | $ | 25,061 | $ | 11 | $ | — | $ | 25,072 | |||||||||
Municipal bonds | 34,912 | 105 | (34 | ) | 34,983 | ||||||||||||
Corporate notes/bonds | 28,565 | 105 | (22 | ) | 28,648 | ||||||||||||
Certificate of deposit | 1,500 | 1 | — | 1,501 | |||||||||||||
Asset backed securities | 685 | 1 | — | 686 | |||||||||||||
Total investments | $ | 90,723 | $ | 223 | $ | (56 | ) | $ | 90,890 | ||||||||
December 31, 2012 | |||||||||||||||||
Cost | Gross | Gross | Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gain | Loss | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
US treasury securities | $ | 24,696 | $ | 13 | $ | — | $ | 24,709 | |||||||||
Municipal bonds | 38,378 | 223 | (6 | ) | 38,595 | ||||||||||||
Corporate notes/bonds | 22,154 | 139 | — | 22,293 | |||||||||||||
Certificate of deposit | 2,500 | 5 | (1 | ) | 2,504 | ||||||||||||
Asset backed securities | 3,000 | 6 | — | 3,006 | |||||||||||||
Total investments | $ | 90,728 | $ | 386 | $ | (7 | ) | $ | 91,107 | ||||||||
Contractual Maturities of Available-for-Sale Securities | ' | ||||||||||||||||
The contractual maturities of available-for-sale securities at December 31, 2013 are presented in the following table: | |||||||||||||||||
Cost | Fair Value | ||||||||||||||||
Due in one year or less | $ | 42,056 | $ | 42,112 | |||||||||||||
Due between one and five years | 48,667 | 48,778 | |||||||||||||||
$ | 90,723 | $ | 90,890 | ||||||||||||||
Concentrations_Tables
Concentrations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Significant Customers' and Distributors' Accounts Receivable and Revenue as a Percentage of Total Accounts Receivable and Total Revenue | ' | ||||||||||||
The following table summarizes the significant customers’ and distributors’ accounts receivable and revenue as a percentage of total accounts receivable and total revenue, respectively: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Accounts Receivable | |||||||||||||
Customer A | 11 | % | 12 | % | |||||||||
Customer B | * | 11 | |||||||||||
* | Less than 10% of total accounts receivable | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | |||||||||||||
Customer A | 12 | % | 19 | % | 27 | % | |||||||
Customer B | 15 | 15 | 14 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory | ' | ||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 670 | $ | 545 | |||||
Work in process | 2,001 | 1,592 | |||||||
Finished goods | 4,096 | 2,757 | |||||||
$ | 6,767 | $ | 4,894 | ||||||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment, Net | ' | ||||||||
Property and equipment consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Laboratory and production equipment | $ | 34,443 | $ | 22,692 | |||||
Office, software and computer equipment | 8,649 | 6,206 | |||||||
Furniture and fixtures | 834 | 634 | |||||||
Leasehold improvements | 3,952 | 3,226 | |||||||
47,878 | 32,758 | ||||||||
Less accumulated depreciation | (25,418 | ) | (18,865 | ) | |||||
$ | 22,460 | $ | 13,893 | ||||||
Identifiable_Intangible_Assets1
Identifiable Intangible Assets (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Impairment Losses | ' | ||||
all identifiable intangible assets. The impairment losses were presented in the statements of operations for the year ended December 31, 2011 as follows: | |||||
Cost of revenue | $ | 654 | |||
Research and development | 122 | ||||
Sales and marketing | 632 | ||||
$ | 1,408 | ||||
Other_Longterm_Liabilities_Tab
Other Long-term Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Long-Term Liabilities | ' | ||||||||
Other long-term liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred rent | $ | 1,471 | $ | 1,570 | |||||
Income tax payable | 3,295 | 2,452 | |||||||
Deferred tax liabilities | 1,099 | — | |||||||
$ | 5,865 | $ | 4,022 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Before Income Taxes | ' | ||||||||||||
Income (loss) before income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | (2,507 | ) | $ | (2,852 | ) | $ | 2,395 | |||||
Foreign | (8,919 | ) | (4,166 | ) | (1,682 | ) | |||||||
Total | $ | (11,426 | ) | $ | (7,018 | ) | $ | 713 | |||||
Components of Income Tax Expense (Benefit) | ' | ||||||||||||
Income tax provision (benefit) consisted of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
U.S. Federal | $ | 1,816 | $ | 3,760 | $ | 2,811 | |||||||
U.S. State | 1 | (132 | ) | 1,180 | |||||||||
Foreign | 98 | 91 | (17 | ) | |||||||||
1,915 | 3,719 | 3,974 | |||||||||||
Deferred: | |||||||||||||
U.S. Federal | (135 | ) | 4,842 | (2,396 | ) | ||||||||
U.S. State | — | 5,088 | (2,742 | ) | |||||||||
Foreign | (28 | ) | 24 | (54 | ) | ||||||||
(163 | ) | 9,954 | (5,192 | ) | |||||||||
Total | $ | 1,752 | $ | 13,673 | $ | (1,218 | ) | ||||||
Effective Income Tax Rate Reconciliation | ' | ||||||||||||
Income tax provision (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 34% in 2013 and 35% in both 2012 and 2011 to income (loss) before income taxes as a result of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision (benefit) at statutory rate | $ | (3,886 | ) | $ | (2,456 | ) | $ | 249 | |||||
State income taxes | 303 | 200 | 217 | ||||||||||
Research and development credits | (5,850 | ) | (1,345 | ) | (2,672 | ) | |||||||
Change in valuation allowance | 6,781 | 15,247 | 433 | ||||||||||
Foreign earnings, taxed at different rates | 2,888 | 1,649 | 670 | ||||||||||
Unrecognized tax benefits | 1,708 | 1,487 | 1,153 | ||||||||||
Stock-based compensation | 142 | 336 | 95 | ||||||||||
Tax exempt income | (157 | ) | (197 | ) | (135 | ) | |||||||
Prior year return to provision adjustment | (257 | ) | (1,264 | ) | (1,244 | ) | |||||||
Other | 80 | 16 | 16 | ||||||||||
$ | 1,752 | $ | 13,673 | $ | (1,218 | ) | |||||||
Components of Company's Net Deferred Taxes | ' | ||||||||||||
Significant components of the Company’s net deferred taxes consist of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carry forwards | $ | 8,532 | $ | 7,344 | |||||||||
Research and development credits | 15,460 | 10,450 | |||||||||||
Stock-based compensation | 5,192 | 3,560 | |||||||||||
Other temporary differences | 1,703 | 1,317 | |||||||||||
Valuation allowance | (22,448 | ) | (15,680 | ) | |||||||||
Total deferred tax assets | 8,439 | 6,991 | |||||||||||
Deferred tax liabilities | |||||||||||||
Subpart F income on foreign subsidiaries earnings | (5,621 | ) | (5,606 | ) | |||||||||
Amortization and depreciation | (2,790 | ) | (1,385 | ) | |||||||||
Total deferred tax liabilities | (8,411 | ) | (6,991 | ) | |||||||||
Deferred tax assets, net | $ | 28 | $ | — | |||||||||
Summary of Changes in Gross Unrecognized Tax Benefits | ' | ||||||||||||
The following table summarizes the changes in gross unrecognized tax benefits: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance as of January 1 | $ | 6,155 | $ | 4,132 | $ | 2,985 | |||||||
Increases based on tax positions related to the current year | 1, 918 | 1,418 | 1,239 | ||||||||||
Increase (decreases) based on tax positions of prior year | (42 | ) | 605 | (92 | ) | ||||||||
Balance as of December 31 | $ | 8,031 | $ | 6,155 | $ | 4,132 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following shows the computation of basic and diluted earnings per share: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator | |||||||||||||
Net income (loss) | $ | (13,178 | ) | $ | (20,691 | ) | $ | 1,931 | |||||
Less amount allocable to unvested early exercised options and unvested restricted stock award | — | — | (1 | ) | |||||||||
Net income (loss) allocable to common stockholders—basic and diluted | $ | (13,178 | ) | $ | (20,691 | ) | $ | 1,930 | |||||
Denominator | |||||||||||||
Weighted average common stock | 29,495,856 | 28,391,528 | 26,820,662 | ||||||||||
Less weighted average unvested common stock subject to repurchase and unvested restricted stock award | (2,851 | ) | (12,848 | ) | (21,425 | ) | |||||||
Weighted average common stock—basic | 29,493,005 | 28,378,680 | 26,799,237 | ||||||||||
Effect of potentially dilutive securities: | |||||||||||||
Add options to purchase common stock | — | — | 2,547,945 | ||||||||||
Add unvested restricted stock unit | — | — | 9,442 | ||||||||||
Add warrants to purchase common stock | — | — | 10,799 | ||||||||||
Weighted-average common stock—diluted | 29,493,005 | 28,378,680 | 29,367,423 | ||||||||||
Earnings per share | |||||||||||||
Basic | $ | (0.45 | ) | $ | (0.73 | ) | $ | 0.07 | |||||
Diluted | $ | (0.45 | ) | $ | (0.73 | ) | $ | 0.07 | |||||
Securities Not Included In Computation Of Diluted Earnings Per Share | ' | ||||||||||||
The following securities were not included in the computation of diluted earnings per share as inclusion would have been anti-dilutive: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Common stock options | 4,373,642 | 4,797,873 | 965,266 | ||||||||||
Warrant to purchase redeemable convertible preferred stock | 1,696 | 2,142 | — | ||||||||||
Unvested restricted stock award and restricted stock unit | 3,030,202 | 1,608,464 | 410,981 | ||||||||||
7,405,540 | 6,408,479 | 1,376,247 | |||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule of Valuation Assumptions of Stock Options | ' | ||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rate | 1.41 | % | 1.32 | % | 2.66 | % | |||||||||||
Expected life (in years) | 6.25 | 6.22 | 6.41 | ||||||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected volatility | 50 | % | 50 | % | 50 | % | |||||||||||
Schedule of Outstanding Stock Options | ' | ||||||||||||||||
The following table summarizes information regarding options outstanding: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price Per Share | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Outstanding at December 31, 2012 | 4,636,680 | $ | 8.2 | 6.39 | $ | 13,264 | |||||||||||
Granted | 237,400 | 9.79 | |||||||||||||||
Exercised | (852,799 | ) | 3.41 | ||||||||||||||
Canceled | (138,184 | ) | 10.89 | ||||||||||||||
Outstanding at December 31, 2013 | 3,883,097 | $ | 9.26 | 6.33 | $ | 16,229 | |||||||||||
Exercisable at December 31, 2013 | 2,637,533 | $ | 7.99 | 5.51 | $ | 13,993 | |||||||||||
Vested at December 31, 2013 | 2,453,119 | $ | 7.87 | 5.47 | $ | 13,392 | |||||||||||
Vested and expected to vest in the future as of December 31, 2013 | 3,853,025 | $ | 9.24 | 6.31 | $ | 16,171 | |||||||||||
Schedule of Outstanding Restricted Stock Units | ' | ||||||||||||||||
The following table summarizes information regarding outstanding restricted stock units: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Outstanding at December 31, 2012 | 1,791,291 | $ | 14.62 | ||||||||||||||
Granted | 2,231,997 | 9.85 | |||||||||||||||
Vested | (595,296 | ) | 13.85 | ||||||||||||||
Canceled | (218,425 | ) | 11.1 | ||||||||||||||
Outstanding at December 31, 2013 | 3,209,567 | $ | 11.69 | ||||||||||||||
Expected to vest in the future as of December 31, 2013 | 3,111,847 | ||||||||||||||||
Schedule of Valuation Assumptions of Employee Stock Purchase Plan | ' | ||||||||||||||||
The fair value of employee stock purchase plan is estimated at the start of offering period using the Black-Scholes option pricing model with the following average assumptions for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk-free interest rate | 0.1 | % | 0.13 | % | |||||||||||||
Expected life (in years) | 0.49 | 0.5 | |||||||||||||||
Dividend yield | — | — | |||||||||||||||
Expected volatility | 45 | % | 81 | % | |||||||||||||
Estimated fair value | $ | 2.86 | $ | 4.69 | |||||||||||||
Summary of Stock-Based Compensation Expense | ' | ||||||||||||||||
Stock-based compensation expense is included in the Company’s results of operations as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenue | $ | 1,086 | $ | 726 | $ | 315 | |||||||||||
Research and development | 8,586 | 5,833 | 3,214 | ||||||||||||||
Sales and marketing | 3,204 | 2,660 | 2,054 | ||||||||||||||
General and administrative | 4,102 | 3,240 | 1,609 | ||||||||||||||
$ | 16,978 | $ | 12,459 | $ | 7,192 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Fair Value Hierarchy of Financial Assets Measured at Fair Value on a Recurring Basis | ' | ||||||||||||
The following table presents information about assets and liabilities required to be carried at fair value on a recurring basis: | |||||||||||||
31-Dec-13 | Total | Level 1 | Level 2 | ||||||||||
Assets | |||||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 5,119 | $ | — | $ | 5,119 | |||||||
Investment in marketable securities: | |||||||||||||
US treasury securities | 25,072 | 25,072 | — | ||||||||||
Municipal bonds | 34,983 | — | 34,983 | ||||||||||
Corporate notes/bonds | 28,648 | — | 28,648 | ||||||||||
Certificate of deposit | 1,501 | — | 1,501 | ||||||||||
Asset backed securities | 686 | — | 686 | ||||||||||
$ | 96,009 | $ | 25,072 | $ | 70,937 | ||||||||
Total | Level 1 | Level 2 | |||||||||||
December 31, 2012 | |||||||||||||
Assets | |||||||||||||
Cash equivalents: | |||||||||||||
Money market funds | $ | 9,258 | $ | — | $ | 9,258 | |||||||
Investment in marketable securities: | |||||||||||||
US treasury securities | 24,709 | 24,709 | — | ||||||||||
Municipal bonds | 38,595 | — | 38,595 | ||||||||||
Corporate notes/bonds | 22,293 | — | 22,293 | ||||||||||
Certificate of deposit | 2,504 | — | 2,504 | ||||||||||
Asset backed securities | 3,006 | — | 3,006 | ||||||||||
$ | 100,365 | $ | 24,709 | $ | 75,656 | ||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Revenue by Geographic Region | ' | ||||||||||||
The following table sets forth the Company’s revenue by geographic region: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Korea | $ | 21,818 | $ | 17,424 | $ | 14,421 | |||||||
United States | 22,389 | 21,582 | 16,791 | ||||||||||
China | 23,039 | 20,724 | 23,378 | ||||||||||
Other | 35,418 | 31,476 | 24,707 | ||||||||||
$ | 102,664 | $ | 91,206 | $ | 79,297 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Minimum Lease Payments Under Noncancelable Operating Leases | ' | ||||
Future minimum lease payments under noncancelable operating leases having initial terms in excess of one year are as follows: | |||||
December 31, 2013 | |||||
2014 | $ | 6,893 | |||
2015 | 6,266 | ||||
2016 | 3,096 | ||||
2017 | 1,832 | ||||
2018 | 188 | ||||
$ | 18,275 | ||||
Supplementary_Financial_Inform1
Supplementary Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Results of Operations | ' | ||||||||||||||||
Quarterly Results of Operations | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Total revenue | $ | 22,584 | $ | 24,339 | $ | 26,611 | $ | 29,130 | |||||||||
Gross profit | 14,292 | 15,446 | 16,815 | 19,016 | |||||||||||||
Net income (loss) | (7,671 | ) | (1,474 | ) | (2,760 | ) | (1,273 | ) | |||||||||
Basic earnings per share | (0.27 | ) | (0.05 | ) | (0.09 | ) | (0.04 | ) | |||||||||
Diluted earnings per share | (0.27 | ) | (0.05 | ) | (0.09 | ) | (0.04 | ) | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Total revenue | $ | 20,201 | $ | 23,308 | $ | 24,762 | $ | 22,935 | |||||||||
Gross profit | 12,777 | 14,976 | 16,028 | 14,741 | |||||||||||||
Net income | (1,512 | ) | (1,570 | ) | (1,055 | ) | (16,554 | )(1) | |||||||||
Basic earnings per share | (0.05 | ) | (0.06 | ) | (0.04 | ) | (0.58 | ) | |||||||||
Diluted earnings per share | (0.05 | ) | (0.06 | ) | (0.04 | ) | (0.58 | ) | |||||||||
-1 | The provision for income taxes for the year ended December 31, 2012 included the establishment of valuation allowance against deferred tax assets. |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 |
Item | |||||
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' |
Restructuring expenses | ' | ' | ' | $1,813 | ' |
Write off of intangible assets | ' | ' | ' | 1,408 | ' |
Write off of other assets | ' | ' | ' | 204 | ' |
Severance costs incurred | ' | ' | ' | 198 | ' |
Severance costs paid | ' | ' | 95 | ' | ' |
Inventory valuation reserve | ' | 1,479 | 1,720 | ' | ' |
Warranty liability | ' | 40 | 40 | 1,000 | ' |
Number of integrated circuits shipped to customer | ' | ' | ' | ' | 4,000 |
Additional warranty accrual | ' | ' | 750 | ' | ' |
Cash paid in settlements | 1,750 | ' | 1,750 | ' | ' |
Expected dividend yield | ' | $0 | $0 | $0 | ' |
Minimum | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' |
Product warranty term | ' | '1 year | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies Disclosure [Line Items] | ' | ' | ' | ' | ' |
Product warranty term | ' | '2 years | ' | ' | ' |
Useful_Lives_By_Asset_Category
Useful Lives By Asset Category (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Office Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment, useful life | '3 years |
Software | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment, useful life | '3 years |
Leasehold Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment, useful life | 'Shorter of lease term or estimated useful life |
Production Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment, useful life | '2 years |
Computer Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment, useful life | '5 years |
Lab Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment, useful life | '5 years |
Furniture and Fixtures | ' |
Property, Plant and Equipment [Line Items] | ' |
Property plant and equipment, useful life | '7 years |
Changes_in_Warranty_Accrual_De
Changes in Warranty Accrual (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 |
Product Liability Contingency [Line Items] | ' | ' | ' |
Beginning balance | ' | $1,000 | $40 |
Accruals for warranties | ' | 790 | ' |
Settlements | -1,750 | -1,750 | ' |
Ending balance | ' | $40 | $40 |
Summary_of_Investments_by_Inve
Summary of Investments by Investment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, Cost | $90,723 | $90,728 |
Available-for-sale securities, Gross Unrealized Gain | 223 | 386 |
Available-for-sale securities, Gross Unrealized Loss | -56 | -7 |
Available-for-sale securities, Fair Value | 90,890 | 91,107 |
US Treasury Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, Cost | 25,061 | 24,696 |
Available-for-sale securities, Gross Unrealized Gain | 11 | 13 |
Available-for-sale securities, Fair Value | 25,072 | 24,709 |
Municipal Bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, Cost | 34,912 | 38,378 |
Available-for-sale securities, Gross Unrealized Gain | 105 | 223 |
Available-for-sale securities, Gross Unrealized Loss | -34 | -6 |
Available-for-sale securities, Fair Value | 34,983 | 38,595 |
Corporate Notes/Bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, Cost | 28,565 | 22,154 |
Available-for-sale securities, Gross Unrealized Gain | 105 | 139 |
Available-for-sale securities, Gross Unrealized Loss | -22 | ' |
Available-for-sale securities, Fair Value | 28,648 | 22,293 |
Certificates of Deposit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, Cost | 1,500 | 2,500 |
Available-for-sale securities, Gross Unrealized Gain | 1 | 5 |
Available-for-sale securities, Gross Unrealized Loss | ' | -1 |
Available-for-sale securities, Fair Value | 1,501 | 2,504 |
Asset-backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale securities, Cost | 685 | 3,000 |
Available-for-sale securities, Gross Unrealized Gain | 1 | 6 |
Available-for-sale securities, Fair Value | $686 | $3,006 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | Investment | Minority interest in early stage private company | Minority interest in early stage private company |
Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Number of investments in unrealized loss position | 18 | ' | ' |
Investment | ' | $2,621 | ' |
Ownership percentage | ' | ' | 10.00% |
Contractual_Maturities_of_Avai
Contractual Maturities of Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Contractual maturities of available-for-sale securities | ' | ' |
Due in one year or less, cost | $42,056 | ' |
Due between one and five years, cost | 48,667 | ' |
Cost of assets | 90,723 | ' |
Due in one year or less, Fair value | 42,112 | ' |
Due between one and five years, Fair value | 48,778 | ' |
Available-for-sale securities, Fair Value | $90,890 | $91,107 |
Concentrations_Additional_Info
Concentrations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Concentration Risk [Line Items] | ' | ' | ' |
Allowance for doubtful accounts | $152 | $152 | ' |
Percentage of revenue from distributors | 11.00% | 14.00% | 11.00% |
Revenue | Customer A, Including its Subcontractors | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage of Revenue from Customer and its subcontractors | 20.00% | 23.00% | 27.00% |
Revenue | Customer B, Including its Subcontractors | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage of Revenue from Customer and its subcontractors | 16.00% | 15.00% | 14.00% |
Significant_Customers_and_Dist
Significant Customers' and Distributors' Account Receivable and Revenue as Percentage of Total Accounts Receivable and Total Revenue (Detail) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Accounts Receivable | Customer A | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | |
Concentration risk percentage | 11.00% | 12.00% | ' | |
Accounts Receivable | Customer B | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | |
Concentration risk percentage | ' | [1] | 11.00% | ' |
Revenue | Customer A | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | |
Concentration risk percentage | 12.00% | 19.00% | 27.00% | |
Revenue | Customer B | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | |
Concentration risk percentage | 15.00% | 15.00% | 14.00% | |
[1] | Less than 10% of total accounts receivable |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $670 | $545 |
Work in process | 2,001 | 1,592 |
Finished goods | 4,096 | 2,757 |
Inventories | $6,767 | $4,894 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventories held by distributors | $543 | $341 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Laboratory and production equipment | $34,443 | $22,692 |
Office, software and computer equipment | 8,649 | 6,206 |
Furniture and fixtures | 834 | 634 |
Leasehold improvements | 3,952 | 3,226 |
Property, Plant and Equipment, Gross, Total | 47,878 | 32,758 |
Less accumulated depreciation | -25,418 | -18,865 |
Property and equipment, net | $22,460 | $13,893 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (Property And Equipment, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property And Equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization expense property and equipment | $7,508 | $4,908 | $2,962 |
Computer software costs included in property and equipment | 2,815 | 2,180 | ' |
Amortization expense of capitalized computer software costs | $283 | $280 | $235 |
Impairment_Losses_of_Identifia
Impairment Losses of Identifiable Intangible Assets (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Intangible Assets [Line Items] | ' |
Impairment of identifiable intangible assets | $1,408 |
Cost of revenue | ' |
Intangible Assets [Line Items] | ' |
Impairment of identifiable intangible assets | 654 |
Research and development | ' |
Intangible Assets [Line Items] | ' |
Impairment of identifiable intangible assets | 122 |
Sales and marketing | ' |
Intangible Assets [Line Items] | ' |
Impairment of identifiable intangible assets | $632 |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Other Liabilities Noncurrent [Line Items] | ' | ' |
Deferred rent | $1,471 | $1,570 |
Income tax payable | 3,295 | 2,452 |
Deferred tax liabilities | 1,099 | ' |
Other long-term liabilities | $5,865 | $4,022 |
Income_Before_income_Taxes_Det
Income Before income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Income Before Income Tax [Line Items] | ' | ' | ' |
United States | ($2,507) | ($2,852) | $2,395 |
Foreign | -8,919 | -4,166 | -1,682 |
Income (loss) before income taxes | ($11,426) | ($7,018) | $713 |
Income_tax_Expense_Benefit_Det
Income tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
U.S. Federal | $1,816 | $3,760 | $2,811 |
U.S. State | 1 | -132 | 1,180 |
Foreign | 98 | 91 | -17 |
Current income tax expense (benefit) | 1,915 | 3,719 | 3,974 |
Deferred: | ' | ' | ' |
U.S. Federal | -135 | 4,842 | -2,396 |
U.S. State | ' | 5,088 | -2,742 |
Foreign | -28 | 24 | -54 |
Deferred income tax expense (benefit) | -163 | 9,954 | -5,192 |
Income tax expense (benefit) | $1,752 | $13,673 | ($1,218) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax [Line Items] | ' | ' | ' |
U.S. federal income tax rate | 34.00% | 35.00% | 35.00% |
Deferred tax charge | $4,200 | $5,138 | ' |
Deferred tax charge amortization period | '8 years | ' | ' |
Valuation allowances against deferred tax assets | 22,448 | 15,680 | ' |
Change in deferred tax assets valuation allowance | 6,768 | 15,247 | 433 |
Prior year return to provision adjustment | -257 | -1,264 | -1,244 |
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 3,295 | ' | ' |
Reasonably possible range of estimated potential decreases in underlying unrecognized tax benefits, lower limit | 0 | ' | ' |
Reasonably possible range of estimated potential decreases in underlying unrecognized tax benefits, upper limit | 875 | ' | ' |
Unrecognized tax benefits, interest and penalties expense | 0 | 0 | 0 |
U.S. deferred tax assets | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Valuation allowances against deferred tax assets | ' | 14,827 | ' |
Deferred tax assets of subsidiaries in Singapore and Taiwan | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Valuation allowances against deferred tax assets | ' | 853 | ' |
Singapore | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 10,101 | ' | ' |
Income tax reduces due to tax holiday | 0 | 0 | 95 |
Income tax holiday termination date | '2020-05 | ' | ' |
Federal | Research And Development Credit Carryforwards | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Tax credit carryforwards | 10,662 | ' | ' |
Tax credit carryforward expiration year | '2024 | ' | ' |
Federal | Net Operating Loss Carryforwards | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 14,370 | ' | ' |
Operating loss carryforward expiration year | '2022 | ' | ' |
Net operating loss carryforwards related to excess stock option deduction | 22,568 | ' | ' |
State | Research And Development Credit Carryforwards | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Tax credit carryforwards | 12,186 | ' | ' |
State | Net Operating Loss Carryforwards | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 32,638 | ' | ' |
Operating loss carryforward expiration year | '2014 | ' | ' |
Net operating loss carryforwards related to excess stock option deduction | 12,417 | ' | ' |
Taiwan | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating loss carryforwards | $3,225 | ' | ' |
Operating loss carryforward expiration year | '2019 | ' | ' |
Reconciliation_of_Statutory_Fe
Reconciliation of Statutory Federal Income Tax to Effective Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Provision (benefit) at statutory rate | ($3,886) | ($2,456) | $249 |
State income taxes | 303 | 200 | 217 |
Research and development credits | -5,850 | -1,345 | -2,672 |
Change in valuation allowance | 6,781 | 15,247 | 433 |
Foreign earnings, taxed at different rates | 2,888 | 1,649 | 670 |
Unrecognized tax benefits | 1,708 | 1,487 | 1,153 |
Stock-based compensation | 142 | 336 | 95 |
Tax exempt income | -157 | -197 | -135 |
Prior year return to provision adjustment | -257 | -1,264 | -1,244 |
Other | 80 | 16 | 16 |
Income tax expense (benefit) | $1,752 | $13,673 | ($1,218) |
Components_of_Net_Deferred_Tax
Components of Net Deferred Taxes (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ' | ' |
Net operating loss carry forwards | $8,532 | $7,344 |
Research and development credits | 15,460 | 10,450 |
Stock-based compensation | 5,192 | 3,560 |
Other temporary differences | 1,703 | 1,317 |
Valuation allowance | -22,448 | -15,680 |
Total deferred tax assets | 8,439 | 6,991 |
Deferred tax liabilities | ' | ' |
Subpart F income on foreign subsidiaries earnings | -5,621 | -5,606 |
Amortization and depreciation | -2,790 | -1,385 |
Total deferred tax liabilities | -8,411 | -6,991 |
Deferred tax assets, net | $28 | ' |
Summary_of_Changes_in_Gross_Un
Summary of Changes in Gross Unrecognized tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' |
Balance as of January 1 | $6,155 | $4,132 | $2,985 |
Increases based on tax positions related to the current year | 1,918 | 1,418 | 1,239 |
Increase based on tax positions of prior year | ' | 605 | ' |
Decreases based on tax positions of prior year | -42 | ' | -92 |
Balance as of December 31 | $8,031 | $6,155 | $4,132 |
Computation_Of_Basic_and_Dilut
Computation Of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except 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 | |
Numerator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | ($1,273) | ($2,760) | ($1,474) | ($7,671) | ($16,554) | [1] | ($1,055) | ($1,570) | ($1,512) | ($13,178) | ($20,691) | $1,931 |
Less amount allocable to unvested early exercised options and unvested restricted stock award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | |
Net income (loss) allocable to common stockholders-basic and diluted | ' | ' | ' | ' | ' | ' | ' | ' | ($13,178) | ($20,691) | $1,930 | |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Weighted average common stock | ' | ' | ' | ' | ' | ' | ' | ' | 29,495,856 | 28,391,528 | 26,820,662 | |
Less weighted average unvested common stock subject to repurchase and unvested restricted stock award | ' | ' | ' | ' | ' | ' | ' | ' | -2,851 | -12,848 | -21,425 | |
Weighted average common stock-basic | ' | ' | ' | ' | ' | ' | ' | ' | 29,493,005 | 28,378,680 | 26,799,237 | |
Add options to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,547,945 | |
Add unvested restricted stock unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,442 | |
Add warrants to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,799 | |
Weighted-average common stock-diluted | ' | ' | ' | ' | ' | ' | ' | ' | 29,493,005 | 28,378,680 | 29,367,423 | |
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Basic | ($0.04) | ($0.09) | ($0.05) | ($0.27) | ($0.58) | ($0.04) | ($0.06) | ($0.05) | ($0.45) | ($0.73) | $0.07 | |
Diluted | ($0.04) | ($0.09) | ($0.05) | ($0.27) | ($0.58) | ($0.04) | ($0.06) | ($0.05) | ($0.45) | ($0.73) | $0.07 | |
[1] | The provision for income taxes for the year ended December 31, 2012 included the establishment of valuation allowance against deferred tax assets. |
Securities_Not_Included_In_Com
Securities Not Included In Computation Of Diluted Earnings Per Share (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti dilutive securities excluded from computation of earnings per share, amount | 7,405,540 | 6,408,479 | 1,376,247 |
Common Stock Options | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti dilutive securities excluded from computation of earnings per share, amount | 4,373,642 | 4,797,873 | 965,266 |
Warrant | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti dilutive securities excluded from computation of earnings per share, amount | 1,696 | 2,142 | ' |
Unvested Restricted Stock And Restricted Stock Units | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti dilutive securities excluded from computation of earnings per share, amount | 3,030,202 | 1,608,464 | 410,981 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Minimum | Maximum | Restricted Stock Unit and Award | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | 2000 Stock Option/Stock Issuance Plan | Employee Stock Purchase Plan | 2010 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of options to vest in one year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' |
Vesting period of the 25% of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Monthly vesting period of 75% of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '36 months | ' | ' |
Maximum exercise price over market price as percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Minimum exercise price over market price as percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' |
Term of option, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Common stock reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,699,295 |
Weighted average grant date fair value of stock options granted to employees | $4.82 | $6.18 | $10.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | $7,313 | $6,861 | $45,613 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from the exercise of stock options | 2,905 | 1,828 | 4,505 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options eligible for swap | ' | 508,399 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of options available for swap | ' | ' | ' | $16.63 | $22.07 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options accepted for exchange and cancellation | ' | 464,899 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price of options accepted for exchange and cancellation | ' | $21.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options issued as a result of the exchange | ' | 353,779 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of new options | ' | $8.93 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of restricted stock unit granted | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
Unvested RSAs, shares | ' | ' | ' | ' | ' | ' | 2,851 | 12,849 | 21,425 | 35,355 | ' | ' | ' |
Vested restricted stock awards, shares during the period | 9,998 | 8,576 | 13,930 | ' | ' | ' | 595,296 | ' | ' | ' | ' | ' | ' |
Maximum percentage of aggregate cash compensation for purchase of stock using payroll deduction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' |
Purchase price per share as a percentage of market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' |
Look back period of employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' |
Percentage of combined voting power or value of all classes of stock not eligible to participate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' |
Fair Value of common stock in a calendar year per employee not eligible to participate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' |
Maximum aggregate number of shares of common stock available for purchase under the Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Stock issued under employee stock purchase plan | 279,074 | 101,088 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | $35,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost, weighted-average period of recognition, years | '2 years 6 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Option_Grant_Weight
Fair Value Option Grant Weighted Average Assumptions Using Black-Scholes Option Pricing Model (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.41% | 1.32% | 2.66% |
Expected life (in years) | '6 years 3 months | '6 years 2 months 19 days | '6 years 4 months 28 days |
Dividend yield | ' | ' | ' |
Expected volatility | 50.00% | 50.00% | 50.00% |
Information_Regarding_Options_
Information Regarding Options Outstanding (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | ' | ' |
Outstanding at December 31, 2012, Number of Shares | 4,636,680 | ' |
Granted, Number of Shares | 237,400 | ' |
Exercised, Number of Shares | -852,799 | ' |
Canceled, Number of Shares | -138,184 | ' |
Outstanding at December 31, 2013, Number of Shares | 3,883,097 | 4,636,680 |
Exercisable at December 31, 2013, Number of Shares | 2,637,533 | ' |
Vested at December 31, 2013, Number of Shares | 2,453,119 | ' |
Vested and expected to vest at December 31, 2013, Number of Shares | 3,853,025 | ' |
Outstanding at December 31, 2012, Weighted Average Exercise Price | $8.20 | ' |
Granted, Weighted Average Exercise Price | $9.79 | ' |
Exercised, Weighted Average Exercise Price | $3.41 | ' |
Canceled, Weighted Average Exercise Price | $10.89 | ' |
Outstanding at December 31, 2013, Weighted Average Exercise Price | $9.26 | $8.20 |
Exercisable at December 31, 2013, Weighted Average Exercise Price | $7.99 | ' |
Vested at December 31, 2013, Weighted Average Exercise Price | $7.87 | ' |
Vested and expected to vest at December 31, 2013, Weighted Average Exercise Price | $9.24 | ' |
Outstanding, Weighted Average Remaining Contractual Life | '6 years 3 months 29 days | '6 years 4 months 21 days |
Exercisable at December 31, 2013, Weighted Average Remaining Contractual Life | '5 years 6 months 4 days | ' |
Vested at December 31, 2013, Weighted Average Remaining Contractual Life | '5 years 5 months 19 days | ' |
Vested and expected to vest at December 31, 2013, Weighted Average Remaining Contractual Life | '6 years 3 months 22 days | ' |
Outstanding at December 31, 2012, Aggregate Intrinsic Value | $13,264 | ' |
Outstanding at December 31, 2013, Aggregate Intrinsic Value | 16,229 | 13,264 |
Exercisable at December 31, 2013, Aggregate Intrinsic Value | 13,993 | ' |
Vested at December 31, 2013, Aggregate Intrinsic Value | 13,392 | ' |
Vested and expected to vest in the future as of December 31, 2013, Aggregate Intrinsic Value | $16,171 | ' |
Information_Regarding_Outstand
Information Regarding Outstanding Restricted Stock Units (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vested, Number of Shares | -9,998 | -8,576 | -13,930 |
Restricted Stock Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding at December 31, 2012, Number of Shares | 1,791,291 | ' | ' |
Granted, Number of Shares | 2,231,997 | ' | ' |
Vested, Number of Shares | -595,296 | ' | ' |
Canceled, Number of Shares | -218,425 | ' | ' |
Outstanding at December 31, 2013, Number of Shares | 3,209,567 | ' | ' |
Expected to vest in the future as of December 31, 2013, Number of Shares | 3,111,847 | ' | ' |
Outstanding at December 31, 2013, Weighted Average Grant Date Fair Value | 14.62 | ' | ' |
Granted, Weighted Average Grant Date Fair Value | 9.85 | ' | ' |
Vested, Weighted Average Grant Date Fair Value | 13.85 | ' | ' |
Canceled, Weighted Average Grant Date Fair Value | 11.1 | ' | ' |
Outstanding at December 31, 2013, Weighted Average Grant Date Fair Value | 11.69 | ' | ' |
Fair_Value_of_Employee_Stock_P
Fair Value of Employee Stock Purchase Plan (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.41% | 1.32% | 2.66% |
Expected life (in years) | '6 years 3 months | '6 years 2 months 19 days | '6 years 4 months 28 days |
Dividend yield | ' | ' | ' |
Expected volatility | 50.00% | 50.00% | 50.00% |
Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.10% | 0.13% | ' |
Expected life (in years) | '5 months 27 days | '6 months | ' |
Dividend yield | ' | ' | ' |
Expected volatility | 45.00% | 81.00% | ' |
Estimated fair value | 2.86 | 4.69 | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $16,978 | $12,459 | $7,192 |
Cost of revenue | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 1,086 | 726 | 315 |
Research and development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 8,586 | 5,833 | 3,214 |
Sales and marketing | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 3,204 | 2,660 | 2,054 |
General and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $4,102 | $3,240 | $1,609 |
Information_about_Assets_and_L
Information about Assets and Liabilities Required To Be Carried At Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Total fair value of assets | $96,009 | $100,365 |
Money Market Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Cash equivalents at fair value | 5,119 | 9,258 |
US Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 25,072 | 24,709 |
Municipal Bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 34,983 | 38,595 |
Corporate Notes/Bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 28,648 | 22,293 |
Certificates of Deposit | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 1,501 | 2,504 |
Asset-backed Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 686 | 3,006 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Total fair value of assets | 25,072 | 24,709 |
Level 1 | US Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 25,072 | 24,709 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Total fair value of assets | 70,937 | 75,656 |
Level 2 | Money Market Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Cash equivalents at fair value | 5,119 | 9,258 |
Level 2 | Municipal Bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 34,983 | 38,595 |
Level 2 | Corporate Notes/Bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 28,648 | 22,293 |
Level 2 | Certificates of Deposit | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | 1,501 | 2,504 |
Level 2 | Asset-backed Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' |
Investment in marketable securities at fair value | $686 | $3,006 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | Outside the United States | Outside the United States | Taiwan | Taiwan | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Number of reportable segment | 1 | ' | ' | ' | ' |
Long-lived tangible assets located outside the US | ' | $5,217 | $4,090 | $4,694 | $3,668 |
Revenue_by_Geographic_Region_D
Revenue by Geographic Region (Detail) (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 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $29,130 | $26,611 | $24,339 | $22,584 | $22,935 | $24,762 | $23,308 | $20,201 | $102,664 | $91,206 | $79,297 |
Korea | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 21,818 | 17,424 | 14,421 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 22,389 | 21,582 | 16,791 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 23,039 | 20,724 | 23,378 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $35,418 | $31,476 | $24,707 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases Future Minimum Payments [Line Items] | ' |
2014 | $6,893 |
2015 | 6,266 |
2016 | 3,096 |
2017 | 1,832 |
2018 | 188 |
Future minimum lease payments, total | $18,275 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 21, 2011 | Apr. 04, 2011 | Sep. 27, 2011 |
Claim | Claim | U.S. Patent No. 7,636,274 legal matter | ||||
LegalMatter | ||||||
Commitment And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Lease operating expense | $5,990 | $3,980 | $3,445 | ' | ' | ' |
Value of open purchase orders for wafer | $3,019 | ' | ' | ' | ' | ' |
Claims rejected by USPTO | ' | ' | ' | ' | ' | 91 |
Total claims by Netlist | ' | ' | ' | ' | ' | 97 |
Conformation of patentability under number of claim | ' | ' | ' | 4 | ' | ' |
Claim deemed to be patentable | ' | ' | ' | ' | 1 | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2007 | Jun. 30, 2011 | Sep. 30, 2012 |
2007 Original Contract | 2011 New Contract | 2012 Renewed Contract | ||||
Installment | Installment | Installment | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Total payment to related party | ' | ' | ' | $7,000 | $5,250 | $2,129 |
Number of installments committed to pay | ' | ' | ' | 16 | 10 | 5 |
Expiration date of the 2012 contract | 31-Dec-13 | ' | ' | ' | ' | ' |
Amount paid based on the agreements | ' | 2,224 | 2,300 | ' | ' | ' |
Operating lease expense | ' | $2,467 | $2,083 | ' | ' | ' |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Detail) (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 | |
Supplemental Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total revenue | $29,130 | $26,611 | $24,339 | $22,584 | $22,935 | $24,762 | $23,308 | $20,201 | $102,664 | $91,206 | $79,297 | |
Gross profit | 19,016 | 16,815 | 15,446 | 14,292 | 14,741 | 16,028 | 14,976 | 12,777 | 65,569 | 58,522 | 50,610 | |
Net income (loss) | ($1,273) | ($2,760) | ($1,474) | ($7,671) | ($16,554) | [1] | ($1,055) | ($1,570) | ($1,512) | ($13,178) | ($20,691) | $1,931 |
Basic earnings per share | ($0.04) | ($0.09) | ($0.05) | ($0.27) | ($0.58) | ($0.04) | ($0.06) | ($0.05) | ($0.45) | ($0.73) | $0.07 | |
Diluted earnings per share | ($0.04) | ($0.09) | ($0.05) | ($0.27) | ($0.58) | ($0.04) | ($0.06) | ($0.05) | ($0.45) | ($0.73) | $0.07 | |
[1] | The provision for income taxes for the year ended December 31, 2012 included the establishment of valuation allowance against deferred tax assets. |