Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INPHI CORP | |
Trading Symbol | IPHI | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 38,753,272 | |
Amendment Flag | false | |
Entity Central Index Key | 1,160,958 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 49,641 | $ 30,366 |
Investments in marketable securities | 37,727 | 38,908 |
Accounts receivable, net | 35,491 | 36,914 |
Inventories | 24,384 | 26,650 |
Deferred tax assets | 609 | 678 |
Income tax receivable | 595 | 204 |
Prepaid expenses and other current assets | 4,470 | 6,779 |
Total current assets | 152,917 | 140,499 |
Property and equipment, net | 36,222 | 35,498 |
Goodwill | 9,405 | 9,405 |
Identifiable intangible assets, net | 72,652 | 80,773 |
Deferred tax charge | 2,847 | 3,261 |
Other assets, net | 9,954 | 9,274 |
Total assets | 283,997 | 278,710 |
Current liabilities: | ||
Accounts payable | 10,071 | 7,884 |
Deferred revenue | 7,039 | 7,110 |
Accrued employee expenses | 10,457 | 9,492 |
Other accrued expenses | 4,231 | 4,952 |
Other current liabilities | 1,740 | 2,689 |
Total current liabilities | 33,538 | 32,127 |
Other long-term liabilities | 8,165 | 7,409 |
Total liabilities | $ 41,703 | $ 39,536 |
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; 38,735,006 and 37,310,963 issued and outstanding at June 30, 2015 and December 31, 2014, respectively | $ 39 | $ 37 |
Additional paid-in capital | 340,337 | 327,475 |
Accumulated deficit | (98,898) | (89,190) |
Accumulated other comprehensive income | 816 | 852 |
Total stockholders’ equity | 242,294 | 239,174 |
Total liabilities and stockholders’ equity | $ 283,997 | $ 278,710 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 38,735,006 | 37,310,963 |
Common stock, outstanding | 38,735,006 | 37,310,963 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue | $ 60,672 | $ 33,922 | $ 119,832 | $ 65,111 |
Cost of revenue | 23,276 | 12,296 | 52,514 | 23,359 |
Gross profit | 37,396 | 21,626 | 67,318 | 41,752 |
Operating expenses: | ||||
Research and development | 27,270 | 15,729 | 49,993 | 29,468 |
Sales and marketing | 6,618 | 4,362 | 13,487 | 8,312 |
General and administrative | 5,433 | 3,234 | 11,245 | 6,299 |
Total operating expenses | 39,321 | 23,325 | 74,725 | 44,079 |
Loss from operations | (1,925) | (1,699) | (7,407) | (2,327) |
Other income (expense) | (95) | 172 | 73 | 332 |
Loss before income taxes | (2,020) | (1,527) | (7,334) | (1,995) |
Provision (benefit) for income taxes | $ (2,020) | (4,161) | 2,374 | (3,634) |
Net income (loss) | $ 2,634 | $ (9,708) | $ 1,639 | |
Earnings per share: | ||||
Basic (in Dollars per share) | $ 0.08 | $ (0.26) | $ 0.05 | |
Diluted (in Dollars per share) | $ 0.08 | $ (0.26) | $ 0.05 | |
Weighted-average shares used in computing earnings per share: | ||||
Basic (in Shares) | 38,431,307 | 31,378,909 | 38,065,942 | 31,040,240 |
Diluted (in Shares) | 38,431,307 | 33,013,652 | 38,065,942 | 32,905,244 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income (loss) | $ 2,634 | $ (9,708) | $ 1,639 | |
Available for sale investments: | ||||
Change in unrealized gain, net of tax | $ (74) | 31 | (27) | 81 |
Realized gain reclassified into earnings, net of tax | (9) | |||
Comprehensive income (loss) | $ (74) | $ 2,665 | $ (9,744) | $ 1,720 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income (loss) | $ (9,708) | $ 1,639 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 12,919 | 4,929 |
Stock-based compensation | 13,622 | 9,906 |
Impairment of in-process research and development | 1,750 | |
Deferred income taxes and deferred tax charge | 352 | (901) |
Excess tax benefit related to stock-based compensation | (829) | |
Amortization of premium on marketable securities | 277 | 451 |
Loss on disposal of property and equipment | 438 | |
Other noncash items | (7) | |
Changes in assets and liabilities: | ||
Accounts receivable | 1,423 | (1,345) |
Inventories | 2,266 | (661) |
Prepaid expenses and other assets | 1,657 | (2,441) |
Income tax payable/receivable | 1,280 | (2,717) |
Accounts payable | 952 | 893 |
Accrued expenses | 331 | (345) |
Deferred revenue | (71) | (158) |
Other liabilities | (913) | (987) |
Net cash provided by operating activities | 25,739 | 8,263 |
Cash flows from investing activities | ||
Purchases of property and equipment | (6,638) | (8,431) |
Proceeds from sale of property and equipment | 75 | |
Purchases of marketable securities | (7,947) | (26,251) |
Sales and maturities of marketable securities | 8,806 | 27,804 |
Net cash used in investing activities | (5,704) | (6,878) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 4,469 | 2,758 |
Excess tax benefit related to stock-based compensation | 829 | |
Minimum tax withholding paid on behalf of employees for restricted stock units | (8,035) | (3,788) |
Proceeds from employee stock purchase plan | 1,977 | 1,303 |
Net cash provided by (used in) financing activities | (760) | 273 |
Net increase in cash and cash equivalents | 19,275 | 1,658 |
Cash and cash equivalents at beginning of period | 30,366 | 31,667 |
Cash and cash equivalents at end of period | 49,641 | $ 33,325 |
Supplemental Cash Flow Information | ||
Income taxes paid | $ 631,082 |
Note 1 - Organization and Basis
Note 1 - Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and Basis of Presentation Inphi Corporation (the “Company”), a Delaware corporation, was incorporated in November 2000. The Company is a fabless provider of high-speed analog and mixed signal semiconductor solutions for the communications, data center 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, data center 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, data center and enterprise servers, storage platforms, test and measurement equipment and military systems. On October 3, 2014, the Company completed the acquisition of Cortina Systems, Inc. including its high-speed interconnect and optical transport product lines (“Cortina”) for approximately $52,509 in cash and approximately 5.3 million shares of the Company’s common stock in accordance with the Agreement and Plan of Merger dated July 30, 2014 as amended by Amendment No. 1 to the Agreement and Plan of Merger dated September 25, 2014. The revenue and expenses of Cortina are included in the consolidated statement of income for the three and six months ended June 30, 2015. The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”), Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2014, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 10, 2015. The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s consolidated financial position at June 30, 2015, and its consolidated results of operations for the three and six months ended June 30, 2015 and 2014 and cash flows for the six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for future quarters or the full year. |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued guidance applying to inventory measured using any other method other than last-in, last-out method. Under this guidance inventory is measured at the lower of cost and net realizable value. The net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is applied prospectively and is effective for the Company beginning January 1, 2017. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2014, the FASB issued authoritative guidance that provides guidance on whether and at what threshold an acquired business or not-for-profit organization can apply pushdown accounting. This guidance provides an option to apply pushdown accounting in the separate financial statements of an acquired entity upon the occurrence of an event in which an acquirer obtains control of the acquired entity. The guidance became effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. The adoption of this guidance did not impact the consolidated financial statements. In May 2014, the FASB issued guidance on “Revenue from Contracts with Customers.” The new revenue recognition guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance is effective for the Company on January 1, 2017. The new guidance permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that the new revenue recognition guidance will have on the consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor determined the effect of the standard on the ongoing financial reporting. In July 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. The guidance may be adopted as early as January 1, 2017, the effective date of the original guidance. |
Note 3 - Investments
Note 3 - Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | 3. Investments The following table summarizes the investments by investment category: June 30, 2015 December 31, 2014 Cost Fair Value Cost Fair Value Available-for-sale securities: U.S. treasury securities $ — $ — $ 2,056 $ 2,057 Municipal bonds 21,023 21,003 19,686 19,712 Corporate notes/bonds 14,706 14,721 16,381 16,392 Asset backed securities 2,000 2,003 750 747 Total investments $ 37,729 $ 37,727 $ 38,873 $ 38,908 As of June 30, 2015, the Company had 22 investments that were in an unrealized loss position. The gross unrealized losses on these investments at June 30, 2015 of $52 were 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 condensed consolidated statements of income. The contractual maturities of available-for-sale securities at June 30, 2015 are presented in the following table: Cost Fair Value Due in one year or less $ 12,930 $ 12,943 Due between one and five years 24,799 24,784 $ 37,729 $ 37,727 |
Note 4 - Inventories
Note 4 - Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 4. Inventories Inventories consist of the following: June 30, 2015 December 31, 2014 Raw materials $ 4,624 $ 5,803 Work in process 4,881 2,409 Finished goods 14,879 18,438 $ 24,384 $ 26,650 Finished goods held by distributors were $2,504 and $2,798 as of June 30, 2015 and December 31, 2014, respectively. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and Equipment, net Property and equipment consist of the following: June 30, 2015 December 31, 2014 Laboratory and production equipment $ 54,117 $ 48,522 Office, software and computer equipment 17,463 15,855 Furniture and fixtures 1,230 1,762 Leasehold improvements 5,614 5,212 78,424 71,351 Less accumulated depreciation (42,202 ) (35,853 ) $ 36,222 $ 35,498 Depreciation and amortization expense of property and equipment for the three and six months ended June 30, 2015 was $3,311 and $6,549, respectively. Depreciation and amortization expense of property and equipment for the three and six months ended June 30, 2014 was $2,572 and $4,929, respectively. As of June 30, 2015 and December 31, 2014, computer software costs included in property and equipment were $5,514 and $4,582, respectively. Amortization expense of capitalized computer software costs was $249 and $482 for the three and six months ended June 30, 2015, respectively. Amortization expense of capitalized computer software costs was $134 and $236 for the three and six months ended June 30, 2014, respectively. Property and equipment not paid as of June 30, 2015 and 2014 were $2,687 and $1,690, respectively. |
Note 6 - Identifiable Intangibl
Note 6 - Identifiable Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Identifiable Intangible Assets The following table presents details of identifiable intangible assets: June 30, 2015 December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Developed technology $ 71,570 $ 8,606 $ 62,964 $ 71,570 $ 2,857 $ 68,713 Customer relationships 8,170 610 7,560 8,170 201 7,969 Trade name 920 138 782 920 46 874 Patents 1,579 233 1,346 1,579 112 1,467 In-process research and development — — — 1,750 — 1,750 $ 82,239 $ 9,587 $ 72,652 $ 83,989 $ 3,216 $ 80,773 The following table presents amortization of intangible assets for the three and six months ended June 30, 2015: Three months ended June 30, 2015 Six months ended June 30, 2015 Cost of goods sold $ 2,875 $ 5,750 Sales and marketing 204 408 General and administrative 106 213 $ 3,185 $ 6,371 In the three months ended June 30, 2015, the Company abandoned the project related to in-process research and development and recorded an impairment charge of $1,750 included in the research and development expenses in the condensed consolidated statements of income. Based on the amount of intangible assets subject to amortization at June 30, 2015, the expected amortization expense for each of the next five fiscal years and thereafter is as follows: 2015 (remainder) $ 6,363 2016 12,707 2017 12,682 2018 12,648 2019 11,078 Thereafter 17,174 $ 72,652 The weighted-average amortization periods remaining by intangible asset category are as follows (in years): Developed technology 5.80 Customer relationship 9.25 Others 10.16 |
Note 7 - Product Warranty Oblig
Note 7 - Product Warranty Obligation | 6 Months Ended |
Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure [Text Block] | 7. Product Warranty Obligation As of June 30, 2015 and December 31, 2014, the Company’s product warranty liability was $110. There was no movement in product warranty liability during the three and six months ended June 30, 2015 and 2014. On November 3, 2014, the Company received a claim notification from an insurance company asserting a claim of approximately $4,000 for field installation repair and replacement costs incurred by a customer in 2011. The Company believes that it had fulfilled its contractual obligation to provide warranty repair and replacement, but has referred the matter to its insurance carrier at the request of the insurance company. As of June 30, 2015, the Company believes that the liability under this claim is not probable. Nevertheless, resolutions of third-party claims are inherently uncertain and as such, an unfavorable outcome could ultimately impact the Company’s business, cash flow and results of operations. |
Note 8 - Other Long-term Liabil
Note 8 - Other Long-term Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | 8. Other long-term liabilities Other long-term liabilities consist of the following: June 30, 2015 December 31, 2014 Deferred rent $ 2,011 $ 1,930 Income tax payable 5,484 4,687 Deferred tax liabilities 670 792 $ 8,165 $ 7,409 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 9. Income Taxes The Company normally determines its interim provision using an estimated single annual effective tax rate for all tax jurisdictions. ASC 740 provides that when an entity operates in a jurisdiction that has generated ordinary losses on a year-to-date basis or on the basis of the results anticipated for the full fiscal year and no benefit can be recognized on those losses, a separate effective tax rate should be computed and applied to ordinary income (or loss) in that jurisdiction. The Company incurred pretax loss during the three and six months ended June 30, 2015 from the Singapore operation and will not recognize tax benefit of the losses due to full valuation allowance established against deferred tax assets. Thus, a separate effective tax rate was applied to the Singapore jurisdiction to compute the Company’s interim tax expense. The Company recorded an income tax provision (benefit) of ($2,020) and $2,374 in the three and six months ended June 30, 2015, respectively. The effective tax rate for the three and six months ended June 30, 2015 was 100% and 32%, respectively. The difference between the effective tax rates and the 34% federal statutory rate resulted primarily due to the change in valuation allowance, foreign income taxes provided at lower rates, geographic mix in operating results, unrecognized tax benefits, stock-based compensation adjustments and recognition of state research and development credits. The Company recorded an income tax benefit of ($4,161) and ($3,634) in the three and six months ended June 30, 2014, respectively. The effective tax rate for the three and six months ended June 30, 2014 was 272% and 182%, respectively. The difference between the effective tax rates and the 34% federal statutory rate resulted primarily due to the change in valuation allowance, foreign income taxes provided at lower rates, geographic mix in operating results, unrecognized tax benefits, stock-based compensation adjustments and recognition of state research and development credits. During the three and six months ended June 30, 2015, the gross amount of the Company’s unrecognized tax benefits increased (decreased) by approximately ($410) and $1,601, respectively as a result of tax positions taken during the current year. Substantially all of the unrecognized tax benefits as of June 30, 2015, if recognized, would affect the Company’s effective tax rate. The Company believes that in the next twelve months, it is reasonably possible that that the gross unrecognized tax benefit may decrease by approximately $1,750 due to resolution of the state audit. 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. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 10. Earnings Per Share The following shows the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator Net income (loss) $ — $ 2,634 $ (9,708 ) $ 1,639 Denominator Weighted average common stock 38,431,307 31,379,622 38,065,942 31,040,953 Less weighted average unvested restricted stock award — (713 ) — (713 ) Weighted-average common stock—basic 38,431,307 31,378,909 38,065,942 31,040,240 Effect of potentially dilutive securities: Add options to purchase common stock — 827,507 — 869,044 Add unvested restricted stock unit — 800,141 — 976,222 Add employee stock purchase plan — 7,095 — 19,738 Weighted-average common stock—diluted 38,431,307 33,013,652 38,065,942 32,905,244 Earnings per share Basic $ — $ 0.08 $ (0.26 ) $ 0.05 Diluted $ — $ 0.08 $ (0.26 ) $ 0.05 The following securities were not included in the computation of diluted earnings per share as inclusion would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Common stock options 2,615,744 766,939 2,774,985 1,103,878 Restricted stock unit 4,856,581 10,000 4,652,690 7,339 Restricted stock award — 713 — 713 7,472,325 777,652 7,427,675 1,111,930 |
Note 11 - Stock-based Compensat
Note 11 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. Stock–Based Compensation In June 2010, the Board of Directors (the “Board”) 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 Compensation Committee 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 June 30, 2015, 2,247,579 shares of common stock have been reserved for future grants under the 2010 Plan. Stock Option Awards The Company did not grant any stock options during the three and six months ended June 30, 2015 and 2014. The following table summarizes information regarding options outstanding: Number of Weighted Weighted Aggregate Outstanding at December 31, 2014 3,005,594 $ 10.16 6.12 $ 25,302 Granted — — Exercised (571,819 ) 7.82 Canceled (22,451 ) 18.64 Outstanding at June 30, 2015 2,411,324 $ 10.64 5.78 $ 29,478 Exercisable at June 30, 2015 2,075,091 $ 10.44 5.58 $ 25,778 Vested and expected to vest at June 30, 2015 2,409,602 $ 10.63 5.78 $ 29,458 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 total intrinsic value of options exercised during the six months ended June 30, 2015 and 2014 was $7,971 and $6,333, 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 $4,469 and $2,758, respectively, for the six months ended June 30, 2015 and 2014. Restricted Stock Units and Awards The Company granted restricted stock units (“RSUs”) to members of the Board and employees. Most of the Company’s outstanding RSUs vest over four years with vesting contingent upon continuous service. The Company estimates the fair value of RSUs 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 Value Per Share Outstanding at December 31, 2014 4,789,622 $ 12.85 Granted 1,347,187 19.27 Vested (1,109,520 ) 13.54 Canceled (136,448 ) 14.07 Outstanding at June 30, 2015 4,890,841 $ 14.43 Expected to vest at June 30, 2015 4,805,524 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 of 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 1,750,000 shares. The total common stock issued under the ESPP during the six months ended June 30, 2015 and 2014 was 160,776 and 131,007, respectively. The fair value of the ESPP is estimated at the start of offering period using the Black-Scholes option pricing model with the following assumptions: Six Months Ended June 30, 2015 2014 Risk-free interest rate 0.07 % 0.08 % Expected life (in years) 0.50 0.49 Dividend yield — — Expected volatility 41 % 34 % Estimated fair value $ 5.34 $ 3.00 Stock-Based Compensation Expense Stock-based compensation expense is included in the Company’s results of operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Operating expenses Cost of goods sold $ 381 $ 298 $ 744 $ 549 Research and development 4,252 2,992 8,038 5,381 Sales and marketing 1,194 940 2,219 1,798 General and administrative 1,375 1,170 2,621 2,178 $ 7,202 $ 5,400 $ 13,622 $ 9,906 Total unrecognized compensation cost related to unvested stock options, restricted stock units and awards at June 30, 2015, prior to the consideration of expected forfeitures, is approximately $63,051 and is expected to be recognized over a weighted-average period of 2.83 years. |
Note 12 - Fair Value Measuremen
Note 12 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 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 Level 2 Level 3 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 Company determines the amount of transfers between Levels 1 and 2 or transfers into or out of Level 3 by using the end-of-period fair value. The Company had no transfers among the fair value hierarchy during the three and six months ended June 30, 2015. The following table presents information about assets required to be carried at fair value on a recurring basis: June 30, 2015 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 2,786 $ — $ 2,786 Investment in marketable securities: Municipal bonds 21,003 — 21,003 Corporate notes/bonds 14,721 — 14,721 Asset backed securities 2,003 — 2,003 $ 40,513 $ — $ 40,513 December 31, 2014 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 1,457 $ — $ 1,457 Investment in marketable securities: US treasury securities 2,057 2,057 — Municipal bonds 19,712 — 19,712 Corporate notes/bonds 16,392 — 16,392 Asset backed securities 747 — 747 $ 40,365 $ 2,057 $ 38,308 |
Note 13 - Segment and Geographi
Note 13 - Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 China $ 19,043 $ 11,899 $ 38,098 $ 24,413 United States 10,261 6,388 19,717 11,848 Thailand 9,462 935 14,925 1,462 Japan 5,523 3,485 10,736 6,392 Italy 2,939 3,457 5,669 4,871 Other 13,444 7,758 30,687 16,125 $ 60,672 $ 33,922 $ 119,832 $ 65,111 As of June 30, 2015, $6,298 of long-lived tangible assets are located outside the United States, of which $5,002 are located in Taiwan. As of December 31, 2014, $6,153 of long-lived tangible assets are located outside the United States, of which $3,463 are located in Taiwan. |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 14. Commitments and Contingencies Leases The Company leases its facility under noncancelable lease agreements expiring in various years through 2020. The Company also licenses certain software used in its research and development activities under a term license subscription and maintenance arrangement. As of June 30, 2015, future minimum lease payments under noncancelable operating leases having initial terms in excess of one year are as follows: 2015 (remaining) $ 6,655 2016 9,808 2017 4,389 2018 2,055 2019 and thereafter 1,801 $ 24,708 For the three and six months ended June 30, 2015, lease operating expense was $2,974 and $6,017, respectively. For the three and six months ended June 30, 2014, lease operating expense was $1,776 and $3,199, respectively. Noncancelable Purchase Obligations The Company depends upon third party subcontractors to manufacture its wafers. These 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 June 30, 2015, the total value of open purchase orders for wafers was approximately $4,759. 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 On August 27, 2010, the USPTO ordered the request for Inter Partes Inter Partes On September 8, 2010, the USPTO ordered the request for Inter Partes Inter Partes On September 8, 2010, the USPTO ordered the request for Inter Partes Inter Partes the next substantive step of the proceeding, as currently prosecution otherwise will remain closed. The merged proceeding is expected to continue in accordance with established Inter Partes 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. In March 2015, the Company settled a patent dispute involving Cortina and Vitesse Semiconductor Corporation (Vitesse). The patent dispute involved a certain patent family owned by Vitesse associated with error correction. The Company paid Vitesse $750 to resolve the dispute. Based on the Agreement and Plan of Merger dated July 30, 2014, as amended by Amendment No. 1 to the Agreement and Plan of Merger dated September 25, 2014, the Company was indemnified for this settlement arising from this claim, up to an amount of $750. 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 June 30, 2015 and December 31, 2014. |
Note 3 - Investments (Tables)
Note 3 - Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments Schedule [Abstract] | |
Available-for-sale Securities [Table Text Block] | June 30, 2015 December 31, 2014 Cost Fair Value Cost Fair Value Available-for-sale securities: U.S. treasury securities $ — $ — $ 2,056 $ 2,057 Municipal bonds 21,023 21,003 19,686 19,712 Corporate notes/bonds 14,706 14,721 16,381 16,392 Asset backed securities 2,000 2,003 750 747 Total investments $ 37,729 $ 37,727 $ 38,873 $ 38,908 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Cost Fair Value Due in one year or less $ 12,930 $ 12,943 Due between one and five years 24,799 24,784 $ 37,729 $ 37,727 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2015 December 31, 2014 Raw materials $ 4,624 $ 5,803 Work in process 4,881 2,409 Finished goods 14,879 18,438 $ 24,384 $ 26,650 |
Note 5 - Property and Equipme23
Note 5 - Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | June 30, 2015 December 31, 2014 Laboratory and production equipment $ 54,117 $ 48,522 Office, software and computer equipment 17,463 15,855 Furniture and fixtures 1,230 1,762 Leasehold improvements 5,614 5,212 78,424 71,351 Less accumulated depreciation (42,202 ) (35,853 ) $ 36,222 $ 35,498 |
Note 6 - Identifiable Intangi24
Note 6 - Identifiable Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2015 December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Developed technology $ 71,570 $ 8,606 $ 62,964 $ 71,570 $ 2,857 $ 68,713 Customer relationships 8,170 610 7,560 8,170 201 7,969 Trade name 920 138 782 920 46 874 Patents 1,579 233 1,346 1,579 112 1,467 In-process research and development — — — 1,750 — 1,750 $ 82,239 $ 9,587 $ 72,652 $ 83,989 $ 3,216 $ 80,773 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three months ended June 30, 2015 Six months ended June 30, 2015 Cost of goods sold $ 2,875 $ 5,750 Sales and marketing 204 408 General and administrative 106 213 $ 3,185 $ 6,371 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2015 (remainder) $ 6,363 2016 12,707 2017 12,682 2018 12,648 2019 11,078 Thereafter 17,174 $ 72,652 |
Finite-Lived Intangible Assets, Remaining Amortization Period [Table Text Block] | Developed technology 5.80 Customer relationship 9.25 Others 10.16 |
Note 8 - Other Long-term Liab25
Note 8 - Other Long-term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Noncurrent Liabilities [Table Text Block] | June 30, 2015 December 31, 2014 Deferred rent $ 2,011 $ 1,930 Income tax payable 5,484 4,687 Deferred tax liabilities 670 792 $ 8,165 $ 7,409 |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator Net income (loss) $ — $ 2,634 $ (9,708 ) $ 1,639 Denominator Weighted average common stock 38,431,307 31,379,622 38,065,942 31,040,953 Less weighted average unvested restricted stock award — (713 ) — (713 ) Weighted-average common stock—basic 38,431,307 31,378,909 38,065,942 31,040,240 Effect of potentially dilutive securities: Add options to purchase common stock — 827,507 — 869,044 Add unvested restricted stock unit — 800,141 — 976,222 Add employee stock purchase plan — 7,095 — 19,738 Weighted-average common stock—diluted 38,431,307 33,013,652 38,065,942 32,905,244 Earnings per share Basic $ — $ 0.08 $ (0.26 ) $ 0.05 Diluted $ — $ 0.08 $ (0.26 ) $ 0.05 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Common stock options 2,615,744 766,939 2,774,985 1,103,878 Restricted stock unit 4,856,581 10,000 4,652,690 7,339 Restricted stock award — 713 — 713 7,472,325 777,652 7,427,675 1,111,930 |
Note 11 - Stock-based Compens27
Note 11 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Activity [Table Text Block] | Number of Weighted Weighted Aggregate Outstanding at December 31, 2014 3,005,594 $ 10.16 6.12 $ 25,302 Granted — — Exercised (571,819 ) 7.82 Canceled (22,451 ) 18.64 Outstanding at June 30, 2015 2,411,324 $ 10.64 5.78 $ 29,478 Exercisable at June 30, 2015 2,075,091 $ 10.44 5.58 $ 25,778 Vested and expected to vest at June 30, 2015 2,409,602 $ 10.63 5.78 $ 29,458 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Number of Weighted Value Per Share Outstanding at December 31, 2014 4,789,622 $ 12.85 Granted 1,347,187 19.27 Vested (1,109,520 ) 13.54 Canceled (136,448 ) 14.07 Outstanding at June 30, 2015 4,890,841 $ 14.43 Expected to vest at June 30, 2015 4,805,524 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Six Months Ended June 30, 2015 2014 Risk-free interest rate 0.07 % 0.08 % Expected life (in years) 0.50 0.49 Dividend yield — — Expected volatility 41 % 34 % Estimated fair value $ 5.34 $ 3.00 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Operating expenses Cost of goods sold $ 381 $ 298 $ 744 $ 549 Research and development 4,252 2,992 8,038 5,381 Sales and marketing 1,194 940 2,219 1,798 General and administrative 1,375 1,170 2,621 2,178 $ 7,202 $ 5,400 $ 13,622 $ 9,906 |
Note 12 - Fair Value Measurem28
Note 12 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | June 30, 2015 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 2,786 $ — $ 2,786 Investment in marketable securities: Municipal bonds 21,003 — 21,003 Corporate notes/bonds 14,721 — 14,721 Asset backed securities 2,003 — 2,003 $ 40,513 $ — $ 40,513 December 31, 2014 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 1,457 $ — $ 1,457 Investment in marketable securities: US treasury securities 2,057 2,057 — Municipal bonds 19,712 — 19,712 Corporate notes/bonds 16,392 — 16,392 Asset backed securities 747 — 747 $ 40,365 $ 2,057 $ 38,308 |
Note 13 - Segment and Geograp29
Note 13 - Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 China $ 19,043 $ 11,899 $ 38,098 $ 24,413 United States 10,261 6,388 19,717 11,848 Thailand 9,462 935 14,925 1,462 Japan 5,523 3,485 10,736 6,392 Italy 2,939 3,457 5,669 4,871 Other 13,444 7,758 30,687 16,125 $ 60,672 $ 33,922 $ 119,832 $ 65,111 |
Note 14 - Commitments and Con30
Note 14 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2015 (remaining) $ 6,655 2016 9,808 2017 4,389 2018 2,055 2019 and thereafter 1,801 $ 24,708 |
Note 1 - Organization and Bas31
Note 1 - Organization and Basis of Presentation (Details) - Oct. 03, 2014 - Cortina Systems, Inc. [Member] - USD ($) $ in Thousands, shares in Millions | Total |
Note 1 - Organization and Basis of Presentation (Details) [Line Items] | |
Payments to Acquire Businesses, Gross | $ 52,509 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 5.3 |
Note 3 - Investments (Details)
Note 3 - Investments (Details) - Jun. 30, 2015 $ in Thousands | USD ($) |
Investments Schedule [Abstract] | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 22 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | $ 52 |
Note 3 - Investments (Details)
Note 3 - Investments (Details) - Summary of Investments by Investment - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale securities: | ||
Available-for-sale securities, cost | $ 37,729 | $ 38,873 |
Available-for-sale securities, fair value | 37,727 | 38,908 |
US Treasury Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, cost | 2,056 | |
Available-for-sale securities, fair value | 2,057 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, cost | 21,023 | 19,686 |
Available-for-sale securities, fair value | 21,003 | 19,712 |
Corporate Debt Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, cost | 14,706 | 16,381 |
Available-for-sale securities, fair value | 14,721 | 16,392 |
Asset-backed Securities [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, cost | 2,000 | 750 |
Available-for-sale securities, fair value | $ 2,003 | $ 747 |
Note 3 - Investments (Details34
Note 3 - Investments (Details) - Contractual Maturities of Available-for-Sale Securities - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Contractual Maturities of Available-for-Sale Securities [Abstract] | ||
Due in one year or less | $ 12,930 | |
Due in one year or less | 12,943 | |
Due between one and five years | 24,799 | |
Due between one and five years | 24,784 | |
37,729 | ||
$ 37,727 | $ 38,908 |
Note 4 - Inventories (Details)
Note 4 - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 2,504 | $ 2,798 |
Note 4 - Inventories (Details)
Note 4 - Inventories (Details) - Inventory - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory [Abstract] | ||
Raw materials | $ 4,624 | $ 5,803 |
Work in process | 4,881 | 2,409 |
Finished goods | 14,879 | 18,438 |
$ 24,384 | $ 26,650 |
Note 5 - Property and Equipme37
Note 5 - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Note 5 - Property and Equipment, Net (Details) [Line Items] | |||||
Property, Plant, and Equipment, Not Yet Paid | $ 2,687 | $ 1,690 | $ 2,687 | $ 1,690 | |
Property and Equipment [Member] | |||||
Note 5 - Property and Equipment, Net (Details) [Line Items] | |||||
Depreciation | 3,311 | 2,572 | 6,549 | 4,929 | |
Capitalized Computer Software, Gross | 5,514 | 5,514 | $ 4,582 | ||
Capitalized Computer Software, Amortization | $ 249 | $ 134 | $ 482 | $ 236 |
Note 5 - Property and Equipme38
Note 5 - Property and Equipment, Net (Details) - Property and Equipment - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 78,424 | $ 71,351 |
Less accumulated depreciation | (42,202) | (35,853) |
36,222 | 35,498 | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 54,117 | 48,522 |
Other Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17,463 | 15,855 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,230 | 1,762 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,614 | $ 5,212 |
Note 6 - Identifiable Intangi39
Note 6 - Identifiable Intangible Assets (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Note 6 - Identifiable Intangible Assets (Details) [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 1,750 | |
In Process Research and Development [Member] | Research and Development Expense [Member] | ||
Note 6 - Identifiable Intangible Assets (Details) [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 1,750 |
Note 6 - Identifiable Intangi40
Note 6 - Identifiable Intangible Assets (Details) - Identifiable Intangible Assets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | $ 82,239 | $ 83,989 |
Finite lived intangible assets, accumulated amortization | 9,587 | 3,216 |
Finite lived intangible assets, net | 72,652 | 80,773 |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 71,570 | 71,570 |
Finite lived intangible assets, accumulated amortization | 8,606 | 2,857 |
Finite lived intangible assets, net | 62,964 | 68,713 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 8,170 | 8,170 |
Finite lived intangible assets, accumulated amortization | 610 | 201 |
Finite lived intangible assets, net | 7,560 | 7,969 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 920 | 920 |
Finite lived intangible assets, accumulated amortization | 138 | 46 |
Finite lived intangible assets, net | 782 | 874 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 1,579 | 1,579 |
Finite lived intangible assets, accumulated amortization | 233 | 112 |
Finite lived intangible assets, net | $ 1,346 | 1,467 |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, gross | 1,750 | |
Finite lived intangible assets, net | $ 1,750 |
Note 6 - Identifiable Intangi41
Note 6 - Identifiable Intangible Assets (Details) - Finite-lived Intangible Assets, Accumulated Amortization - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Note 6 - Identifiable Intangible Assets (Details) - Finite-lived Intangible Assets, Accumulated Amortization [Line Items] | ||
Amortization | $ 3,185 | $ 6,371 |
Cost of Sales [Member] | ||
Note 6 - Identifiable Intangible Assets (Details) - Finite-lived Intangible Assets, Accumulated Amortization [Line Items] | ||
Cost of goods sold | 2,875 | 5,750 |
Selling and Marketing Expense [Member] | ||
Note 6 - Identifiable Intangible Assets (Details) - Finite-lived Intangible Assets, Accumulated Amortization [Line Items] | ||
Amortization | 204 | 408 |
General and Administrative Expense [Member] | ||
Note 6 - Identifiable Intangible Assets (Details) - Finite-lived Intangible Assets, Accumulated Amortization [Line Items] | ||
Amortization | $ 106 | $ 213 |
Note 6 - Identifiable Intangi42
Note 6 - Identifiable Intangible Assets (Details) - Amortization of Intangible Assets, Future Amortization Expense $ in Thousands | Jun. 30, 2015USD ($) |
Amortization of Intangible Assets, Future Amortization Expense [Abstract] | |
2015 (remainder) | $ 6,363 |
2,016 | 12,707 |
2,017 | 12,682 |
2,018 | 12,648 |
2,019 | 11,078 |
Thereafter | 17,174 |
$ 72,652 |
Note 6 - Identifiable Intangi43
Note 6 - Identifiable Intangible Assets (Details) - Intangible Assets Weighted-average Amortization Periods | 6 Months Ended |
Jun. 30, 2015 | |
Developed Technology Rights [Member] | |
Note 6 - Identifiable Intangible Assets (Details) - Intangible Assets Weighted-average Amortization Periods [Line Items] | |
Finite-lived intangible assets | 5 years 292 days |
Customer Relationships [Member] | |
Note 6 - Identifiable Intangible Assets (Details) - Intangible Assets Weighted-average Amortization Periods [Line Items] | |
Finite-lived intangible assets | 9 years 3 months |
Other Intangible Assets [Member] | |
Note 6 - Identifiable Intangible Assets (Details) - Intangible Assets Weighted-average Amortization Periods [Line Items] | |
Finite-lived intangible assets | 10 years 58 days |
Note 7 - Product Warranty Obl44
Note 7 - Product Warranty Obligation (Details) - USD ($) | Nov. 03, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Note 7 - Product Warranty Obligation (Details) [Line Items] | ||||||
Product Warranty Accrual | $ 110,000 | $ 110,000 | $ 110,000 | |||
Product Warranty Accrual, Period Increase (Decrease) | $ 0 | $ 0 | $ 0 | $ 0 | ||
Field Installation Repair and Replacement [Member] | ||||||
Note 7 - Product Warranty Obligation (Details) [Line Items] | ||||||
Loss Contingency, Damages Sought, Value | $ 4,000,000 |
Note 8 - Other Long-term Liab45
Note 8 - Other Long-term Liabilities (Details) - Other Long-term Liabilities - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Long-term Liabilities [Abstract] | ||
Deferred rent | $ 2,011 | $ 1,930 |
Income tax payable | 5,484 | 4,687 |
Deferred tax liabilities | 670 | 792 |
$ 8,165 | $ 7,409 |
Note 9 - Income Taxes (Details)
Note 9 - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) (in Dollars) | $ (2,020) | $ (4,161) | $ 2,374 | $ (3,634) |
Effective Income Tax Rate Reconciliation, Percent | 100.00% | 272.00% | 32.00% | 182.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | 34.00% | 34.00% |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions (in Dollars) | $ 410 | |||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions (in Dollars) | $ 1,601 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible (in Dollars) | $ 1,750 | $ 1,750 |
Note 10 - Earnings Per Share (D
Note 10 - Earnings Per Share (Details) - Computation of Basic and Diluted Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator | ||||
Net income (loss) (in Dollars) | $ 2,634 | $ (9,708) | $ 1,639 | |
Denominator | ||||
Weighted average common stock | 38,431,307 | 31,379,622 | 38,065,942 | 31,040,953 |
Less weighted average unvested restricted stock award | (713) | (713) | ||
Weighted-average common stock—basic | 38,431,307 | 31,378,909 | 38,065,942 | 31,040,240 |
Effect of potentially dilutive securities: | ||||
Weighted-average common stock—diluted | 38,431,307 | 33,013,652 | 38,065,942 | 32,905,244 |
Earnings per share | ||||
Basic (in Dollars per share) | $ 0.08 | $ (0.26) | $ 0.05 | |
Diluted (in Dollars per share) | $ 0.08 | $ (0.26) | $ 0.05 | |
Employee Stock Purchase Plan [Member] | ||||
Effect of potentially dilutive securities: | ||||
Effect of potentially dilutive securities | 7,095 | 19,738 | ||
Employee Stock Option [Member] | ||||
Effect of potentially dilutive securities: | ||||
Effect of potentially dilutive securities | 827,507 | 869,044 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Effect of potentially dilutive securities: | ||||
Effect of potentially dilutive securities | 800,141 | 976,222 |
Note 10 - Earnings Per Share 48
Note 10 - Earnings Per Share (Details) - Securities Not Included in Computation of Earnings Per Share - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 7,472,325 | 777,652 | 7,427,675 | 1,111,930 |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 2,615,744 | 766,939 | 2,774,985 | 1,103,878 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 4,856,581 | 10,000 | 4,652,690 | 7,339 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 713 | 713 |
Note 11 - Stock-based Compens49
Note 11 - Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Note 11 - Stock-based Compensation (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | $ 7,971 | $ 6,333 | ||
Proceeds from Stock Options Exercised (in Dollars) | $ 4,469 | $ 2,758 | ||
Look-Back Period of Employee Stock Purchase Plan | 6 months | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 160,776 | 131,007 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 63,051 | $ 63,051 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 302 days | |||
Two Thousand and Ten Stock Incentive Plan [Member] | ||||
Note 11 - Stock-based Compensation (Details) [Line Items] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 2,247,579 | 2,247,579 | ||
Employee Stock Option Plan [Member] | ||||
Note 11 - Stock-based Compensation (Details) [Line Items] | ||||
Maximum Percentage of Aggregate Cash Compensation for Purchase of Stock Using Payroll Deduction | 15.00% | |||
Purchase Price Per Share as Percentage of Market Value | 85.00% | |||
Percentage of Combined Voting Power or Value of All Classes of Stock Not Eligible to Participate | 5.00% | |||
Fair Value of Common Stock in Calendar Year Per Employee Not Eligible to Participate (in Dollars) | $ 25 | |||
Maximum Aggregate Number of Shares of Common Stock Available for Purchase Under the Employee Stock Purchase Plan | 1,750,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Note 11 - Stock-based Compensation (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Note 11 - Stock-based Compens50
Note 11 - Stock-based Compensation (Details) - Information Regarding Options Outstanding - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2014 | Jun. 30, 2015 |
Information Regarding Options Outstanding [Abstract] | ||
Outstanding, Number of Shares | 3,005,594 | 2,411,324 |
Outstanding, Exercise Price | $ 10.16 | $ 10.64 |
Outstanding, Contractual Life | 6 years 43 days | 5 years 284 days |
Outstanding, Intrinsic Value | $ 25,302 | $ 29,478 |
Exercised | (571,819) | |
Exercised | $ 7.82 | |
Canceled | (22,451) | |
Canceled | $ 18.64 | |
Exercisable at June 30, 2015 | 2,075,091 | |
Exercisable at June 30, 2015 | $ 10.44 | |
Exercisable at June 30, 2015 | 5 years 211 days | |
Exercisable at June 30, 2015 | $ 25,778 | |
Vested and expected to vest at June 30, 2015 | 2,409,602 | |
Vested and expected to vest at June 30, 2015 | $ 10.63 | |
Vested and expected to vest at June 30, 2015 | 5 years 284 days | |
Vested and expected to vest at June 30, 2015 | $ 29,458 |
Note 11 - Stock-based Compens51
Note 11 - Stock-based Compensation (Details) - Information Regarding Outstanding Restricted Stock Units - Jun. 30, 2015 - Restricted Stock Units (RSUs) [Member] - $ / shares | Total |
Note 11 - Stock-based Compensation (Details) - Information Regarding Outstanding Restricted Stock Units [Line Items] | |
Outstanding at December 31, 2014 | 4,789,622 |
Outstanding at December 31, 2014 (in Dollars per share) | $ 12.85 |
Granted | 1,347,187 |
Granted (in Dollars per share) | $ 19.27 |
Vested | (1,109,520) |
Vested (in Dollars per share) | $ 13.54 |
Canceled | (136,448) |
Canceled (in Dollars per share) | $ 14.07 |
Outstanding at June 30, 2015 | 4,890,841 |
Outstanding at June 30, 2015 (in Dollars per share) | $ 14.43 |
Expected to vest at June 30, 2015 | 4,805,524 |
Note 11 - Stock-based Compens52
Note 11 - Stock-based Compensation (Details) - Fair Value of Employee Stock Purchase Plan - Employee Stock Purchase Plan [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Note 11 - Stock-based Compensation (Details) - Fair Value of Employee Stock Purchase Plan [Line Items] | ||
Risk-free interest rate | 0.07% | 0.08% |
Expected life (in years) | 6 months | 178 days |
Expected volatility | 41.00% | 34.00% |
Estimated fair value (in Dollars per share) | $ 5.34 | $ 3 |
Note 11 - Stock-based Compens53
Note 11 - Stock-based Compensation (Details) - Stock-Based Compensation Expense - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating expenses | ||||
Stock-based compensation expense | $ 7,202 | $ 5,400 | $ 13,622 | $ 9,906 |
Cost of Sales [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | 381 | 298 | 744 | 549 |
Research and Development Expense [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | 4,252 | 2,992 | 8,038 | 5,381 |
Selling and Marketing Expense [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | 1,194 | 940 | 2,219 | 1,798 |
General and Administrative Expense [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | $ 1,375 | $ 1,170 | $ 2,621 | $ 2,178 |
Note 12 - Fair Value Measurem54
Note 12 - Fair Value Measurements (Details) - Information about Assets and Liabilities Required to be Carried at Fair Value on Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investment in marketable securities: | ||
Total fair value of assets | $ 40,513 | $ 40,365 |
Money Market Funds [Member] | ||
Cash equivalents: | ||
Cash equivalents | 2,786 | 1,457 |
Municipal Bonds [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | 21,003 | 19,712 |
Corporate Debt Securities [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | 14,721 | 16,392 |
Asset-backed Securities [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | 2,003 | 747 |
US Treasury Securities [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | 2,057 | |
Fair Value, Inputs, Level 1 [Member] | ||
Investment in marketable securities: | ||
Total fair value of assets | 2,057 | |
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | 2,057 | |
Fair Value, Inputs, Level 2 [Member] | ||
Investment in marketable securities: | ||
Total fair value of assets | 40,513 | 38,308 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Cash equivalents | 2,786 | 1,457 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | 21,003 | 19,712 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | 14,721 | 16,392 |
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||
Investment in marketable securities: | ||
Investment in marketable securities | $ 2,003 | $ 747 |
Note 13 - Segment and Geograp55
Note 13 - Segment and Geographic Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 13 - Segment and Geographic Information (Details) [Line Items] | ||
Number of Reportable Segments | 1 | |
Outside the United States [Member] | ||
Note 13 - Segment and Geographic Information (Details) [Line Items] | ||
Long-Lived Tangible Assets Located Outside Country | $ 6,298 | $ 6,153 |
TAIWAN, PROVINCE OF CHINA | ||
Note 13 - Segment and Geographic Information (Details) [Line Items] | ||
Long-Lived Tangible Assets Located Outside Country | $ 5,002 | $ 3,463 |
Note 13 - Segment and Geograp56
Note 13 - Segment and Geographic Information (Details) - Revenue by Geographic Region - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue by Geographic Region | $ 60,672 | $ 33,922 | $ 119,832 | $ 65,111 |
CHINA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue by Geographic Region | 19,043 | 11,899 | 38,098 | 24,413 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue by Geographic Region | 10,261 | 6,388 | 19,717 | 11,848 |
THAILAND | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue by Geographic Region | 9,462 | 935 | 14,925 | 1,462 |
JAPAN | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue by Geographic Region | 5,523 | 3,485 | 10,736 | 6,392 |
ITALY | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue by Geographic Region | 2,939 | 3,457 | 5,669 | 4,871 |
Other Country [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue by Geographic Region | $ 13,444 | $ 7,758 | $ 30,687 | $ 16,125 |
Note 14 - Commitments and Con57
Note 14 - Commitments and Contingencies (Details) | Sep. 27, 2011 | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jul. 30, 2014USD ($) | Jun. 21, 2011 | Apr. 01, 2011 |
Note 14 - Commitments and Contingencies (Details) [Line Items] | ||||||||||
Operating Leases, Rent Expense, Net | $ 2,974,000 | $ 1,776,000 | $ 6,017,000 | $ 3,199,000 | ||||||
Value of Open Purchase Orders | 4,759,000 | 4,759,000 | ||||||||
Number of Claims Confirming Patentability Related to Action Closing Prosecution | 4 | |||||||||
Number of Claims Deemed Patentable | 1 | |||||||||
Estimated Litigation Liability | $ 0 | $ 0 | $ 0 | |||||||
Cortina Systems, Inc. [Member] | ||||||||||
Note 14 - Commitments and Contingencies (Details) [Line Items] | ||||||||||
Amount to be Refunded from Escrow | $ 750,000 | |||||||||
Netlist Inc [Member] | ||||||||||
Note 14 - Commitments and Contingencies (Details) [Line Items] | ||||||||||
Loss Contingency, Claims Dismissed, Number | 91 | |||||||||
Loss Contingency, Pending Claims, Number | 97 | |||||||||
Cortina vs. Vitesse Semiconductor Corporation [Member] | ||||||||||
Note 14 - Commitments and Contingencies (Details) [Line Items] | ||||||||||
Payments for Legal Settlements | $ 750,000 |
Note 14 - Commitments and Con58
Note 14 - Commitments and Contingencies (Details) - Future Minimum Lease Payments Under Noncancelable Operating Leases $ in Thousands | Jun. 30, 2015USD ($) |
Future Minimum Lease Payments Under Noncancelable Operating Leases [Abstract] | |
2015 (remaining) | $ 6,655 |
2,016 | 9,808 |
2,017 | 4,389 |
2,018 | 2,055 |
2019 and thereafter | 1,801 |
$ 24,708 |