Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Entity Registrant Name | INPHI CORP | |
Entity Central Index Key | 1,160,958 | |
Trading Symbol | iphi | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 40,381,432 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 138,939,000 | $ 283,044,000 |
Investments in marketable securities | 189,234,000 | 43,616,000 |
Accounts receivable, net | 33,003,000 | 30,418,000 |
Inventories | 17,323,000 | 17,828,000 |
Income tax receivable | 232,000 | 327,000 |
Prepaid expenses and other current assets | 5,865,000 | 3,642,000 |
Total current assets | 384,596,000 | 378,875,000 |
Property and equipment, net | 39,133,000 | 36,280,000 |
Goodwill | 9,154,000 | 9,154,000 |
Identifiable intangible assets, net | 63,111,000 | 66,289,000 |
Deferred tax charge | 2,317,000 | 2,322,000 |
Other assets, net | 14,058,000 | 12,126,000 |
Total assets | 512,369,000 | 505,046,000 |
Current liabilities: | ||
Accounts payable | 11,384,000 | 8,389,000 |
Deferred revenue | 6,120,000 | 6,667,000 |
Accrued employee expenses | 8,952,000 | 13,719,000 |
Other accrued expenses | 5,487,000 | 4,185,000 |
Other current liabilities | 1,255,000 | 1,018,000 |
Total current liabilities | 33,198,000 | 33,978,000 |
Convertible debt | 174,078,000 | 171,701,000 |
Other long-term liabilities | 3,078,000 | 8,697,000 |
Total liabilities | $ 210,354,000 | $ 214,376,000 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued | $ 0 | $ 0 |
Common stock, $0.001 par value; 500,000,000 shares authorized; 40,009,851 and 39,389,280 issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 40,000 | 39,000 |
Additional paid-in capital | 398,254,000 | 392,616,000 |
Accumulated deficit | (97,260,000) | (102,741,000) |
Accumulated other comprehensive income | 981,000 | 756,000 |
Total stockholders’ equity | 302,015,000 | 290,670,000 |
Total liabilities and stockholders’ equity | $ 512,369,000 | $ 505,046,000 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 40,009,851 | 39,389,280 |
Common stock, shares outstanding (in shares) | 40,009,851 | 39,389,280 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue | $ 66,531 | $ 59,160 |
Cost of revenue | 24,272 | 29,238 |
Gross profit | 42,259 | 29,922 |
Operating expenses: | ||
Research and development | 27,663 | 22,722 |
Sales and marketing | 7,093 | 6,869 |
General and administrative | 4,957 | 5,812 |
Total operating expenses | 39,713 | 35,403 |
Income (loss) from operations | 2,546 | $ (5,481) |
Interest expense | (3,132) | |
Other income | 645 | $ 167 |
Income (loss) before income taxes | 59 | (5,314) |
Provision (benefit) for income taxes | (161) | 4,394 |
Net income (loss) | $ 220 | $ (9,708) |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.01 | $ (0.26) |
Diluted (in dollars per share) | $ 0.01 | $ (0.26) |
Weighted-average shares used in computing earnings per share: | ||
Basic (in shares) | 39,758,201 | 37,696,518 |
Diluted (in shares) | 43,421,314 | 37,696,518 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income (loss) | $ 220 | $ (9,708) |
Other comprehensive income (loss): | ||
Change in unrealized gain, net of $0 tax | $ 225 | 47 |
Realized gain reclassified into earnings, net of $0 tax | (9) | |
Comprehensive income (loss) | $ 445 | $ (9,670) |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Change in unrealized gain, tax | $ 0 | $ 0 |
Realized gain reclassified into earnings, tax | $ 0 |
Unaduited Condensed Consolidate
Unaduited Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ 220,000 | $ (9,708,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 7,228,000 | 6,423,000 |
Stock-based compensation | 6,952,000 | 6,420,000 |
Deferred income taxes and deferred tax charge | 5,000 | $ 2,590,000 |
Accretion of convertible debt and amortization of debt issuance costs | 2,378,000 | |
Amortization of premiums on marketable securities | 301,000 | $ 135,000 |
Other noncash items | 5,000 | (63,000) |
Changes in assets and liabilities: | ||
Accounts receivable | (2,585,000) | 174,000 |
Inventories | 505,000 | 3,309,000 |
Prepaid expenses and other assets | (1,371,000) | 1,597,000 |
Income tax payable/receivable | (65,000) | 2,330,000 |
Accounts payable | 3,407,000 | 1,392,000 |
Accrued expenses | (3,394,000) | (932,000) |
Deferred revenue | (547,000) | 620,000 |
Other liabilities | 39,000 | (782,000) |
Net cash provided by operating activities | 13,078,000 | 13,505,000 |
Cash flows from investing activities | ||
Purchases of property and equipment | $ (7,033,000) | (3,438,000) |
Proceeds from sale of property and equipment | 75,000 | |
Purchases of marketable securities | $ (148,936,000) | (4,562,000) |
Sales and maturities of marketable securities | 2,739,000 | $ 4,714,000 |
Purchase of cost-method investment in private company | (2,000,000) | |
Net cash used in investing activities | (155,230,000) | $ (3,211,000) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 812,000 | 1,052,000 |
Proceeds from employee stock purchase plan | 3,150,000 | $ 1,977,000 |
Convertible bonds issuance costs paid | (353,000) | |
Minimum tax withholding paid on behalf of employees for restricted stock units | (5,562,000) | $ (4,147,000) |
Net cash used in financing activities | (1,953,000) | (1,118,000) |
Net increase (decrease) in cash and cash equivalents | (144,105,000) | 9,176,000 |
Cash and cash equivalents at beginning of period | 283,044,000 | 30,366,000 |
Cash and cash equivalents at end of period | 138,939,000 | 39,542,000 |
Supplemental cash flow information | ||
Income taxes paid | $ 133,000 | $ 580,000 |
Note 1 - Organization and Basis
Note 1 - Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
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. 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, 2015, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 29, 2016. 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 March 31, 2016, and its consolidated results of operations and cash flows for the three months ended March 31, 2016 and 2015. The results of operations for the three months ended March 31, 2016 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 | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued 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 was initially 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. In July 2015, the 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 September 2015, the FASB issued guidance that requires an acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance also requires disclosure of the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the adjustment to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance is effective for the Company beginning January 1, 2016. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2016, the FASB issued guidance that requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The guidance simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. The guidance eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, and requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The guidance also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements is required under this guidance. The guidance further clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance is applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and is effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted only if certain criteria is met. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures. In February 2016, the FASB issued guidance that requires companies that lease assets (lessees) to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the leases with lease terms of more than 12 months. This guidance is effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures. In March 2016, the FASB issued a guidance that eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The guidance require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The guidance also requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The guidance is effective for the Company beginning after January 1, 2017. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures. In March 2016, the FASB issued a guidance in the assessment whether an entity is a principal or an agent in the new revenue standard (gross versus net revenue presentation). The guidance has the same effective date and transition requirements as the new revenue standard, which is effective for calendar year end public companies in 2018 with early adoption permitted in 2017. In March 2016, the FASB issued a guidance that will change certain aspects of accounting for share-based payments to employees. The new guidance will require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also will allow an employer to repurchase more of an employee’s shares than the minimum for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The new guidance allows entities to estimate forfeiture or recognize forfeitures when they occur. It also requires presentation of excess tax benefits as an operating activity and cash paid by employer to taxing authorities on the employees’ behalf for withheld shares as financing activity on the statement of cash flows. The Company early adopted this standard and the effect of adoption is discussed in Note 12 of the condensed consolidated financial statements. In April 2016, the FASB issued a guidance which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. The guidance changed the previous proposals on renewals of right-of-use licenses and contractual restrictions. The guidance has the same effective date and transition requirements as the new revenue standard, which is effective for calendar year end public companies in 2018 with early adoption permitted in 2017. |
Note 3 - Investments
Note 3 - Investments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Investment [Text Block] | 3. Investments The following table summarizes the investments by investment category: March 31, 201 6 December 31, 201 5 Cost Fair Value Cost Fair Value Available-for-sale securities: U.S. treasury securities $ 6,000 $ 6,008 $ 2,998 $ 2,993 Municipal bonds 27,258 27,285 20,042 20,036 Corporate notes/bonds 110,452 110,559 14,700 14,657 Government agency bonds 7,468 7,476 4,011 4,007 Commercial paper 30,389 30,397 — — Asset backed securities 7,506 7,509 1,926 1,923 Total investments $ 189,073 $ 189,234 $ 43,677 $ 43,616 As of March 31, 2016, the Company had 34 investments that were in an unrealized loss position. The gross unrealized losses on these investments at March 31, 2016 of $28 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 were 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 March 31, 2016 are presented in the following table: Cost Fair Value Due in one year or less $ 146,107 $ 146,184 Due between one and five years 42,966 43,050 $ 189,073 $ 189,234 |
Note 4 - Inventories
Note 4 - Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. Inventories Inventories consist of the following: March 31, 201 6 December 31, 201 5 Raw materials $ 3,530 $ 4,291 Work in process 4,083 2,620 Finished goods 9,710 10,917 $ 17,323 $ 17,828 Finished goods held by distributors were $1,642 and $2,153 as of March 31, 2016 and December 31, 2015, respectively. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and Equipment, net Property and equipment consist of the following: March 31, 2016 December 31, 2015 Laboratory and production equipment $ 65,008 $ 59,220 Office, software and computer equipment 19,600 18,562 Furniture and fixtures 1,299 1,264 Leasehold improvements 5,918 5,866 91,825 84,912 Less accumulated depreciation (52,692 ) (48,632 ) $ 39,133 $ 36,280 Depreciation and amortization expense of property and equipment for the three months ended March 31, 2016 and 2015 was $4,050 and $3,237, respectively. As of March 31, 2016 and December 31, 2015, computer software costs included in property and equipment were $6,248 and $5,929, respectively. Amortization expense of capitalized computer software costs was $287 and $232 for the three months ended March 31, 2016 and 2015, respectively. Property and equipment not paid as of March 31, 2016 and December 31, 2015 was $1,818 and $1,949, respectively. |
Note 6 - Identifiable Intangibl
Note 6 - Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 6. Identifiable Intangible Assets The following table presents details of identifiable intangible assets: March 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Developed technology $ 71,570 $ 17,231 $ 54,339 $ 71,570 $ 14,356 $ 57,214 Customer relationships 8,170 1,223 6,947 8,170 1,018 7,152 Trade name 920 276 644 920 230 690 Patents 1,579 398 1,181 1,579 346 1,233 $ 82,239 $ 19,128 $ 63,111 $ 82,239 $ 15,950 $ 66,289 The following table presents amortization of intangible assets for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 201 6 201 5 Cost of goods sold $ 2,875 $ 2,875 Sales and marketing 205 204 General and administrative 98 107 $ 3,178 $ 3,186 Based on the amount of intangible assets subject to amortization at March 31, 2016, the expected amortization expense for each of the next five fiscal years and thereafter is as follows: 2016 (remaining) $ 9,529 2017 12,682 2018 12,648 2019 11,078 2020 6,394 Thereafter 10,780 $ 63,111 The weighted-average amortization periods remaining by intangible asset category were as follows (in years): Developed technology 5.10 Customer relationship 8.50 Others 9.48 |
Note 7 - Product Warranty Oblig
Note 7 - Product Warranty Obligation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 7. Product Warranty Obligation As of March 31, 2016 and December 31, 2015, the product warranty liability was $110. There was no movement in product warranty liability during the three months ended March 31, 2016 and 2015. |
Note 8 - Convertible Debt
Note 8 - Convertible Debt | 3 Months Ended |
Mar. 31, 2016 | |
Convertible Debt [Member] | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Convertible debt In December 2015, the Company issued $230,000 of 1.125% convertible senior notes due 2020 (Convertible Notes). The Convertible Notes will mature December 1, 2020, unless earlier converted or repurchased. Interest on the Convertible Notes is payable on June 1 and December 1 of each year, beginning on June 1, 2016. The initial conversion rate is 24.8988 shares of common stock per $1 principal amount of Convertible Notes, which represents an initial conversion price of approximately $40.16 per share. The total interest expense recognized for the three months ended March 31, 2016 was $3,132, which consists of $754 of contractual interest expense, $2,182 of amortization of debt discount and $196 of amortization of debt issuance costs. In connection with the issuance of the Convertible Notes, the Company entered into capped call transactions (Capped Call) in private transactions. Under the Capped Call, the Company purchased capped call options that in aggregate relate to 100% of the total number of shares of the Company's common stock underlying the Convertible Notes, with a strike price equal to the conversion price of the Convertible Notes and with a cap price equal to $52.06 per share. |
Note 9 - Other Long-term Liabil
Note 9 - Other Long-term Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | 9 . Other long-term liabilities Other long-term liabilities consist of the following: March 31, 201 6 December 31, 201 5 Deferred rent $ 1,542 $ 1,728 Income tax payable 1,536 6,969 $ 3,078 $ 8,697 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10 . Income Taxes The Company determined its interim provision using an estimated single annual effective tax rate for all tax jurisdictions for the three months ended March 31, 2016. For the three months ended March 31, 2015, the Company determined its interim tax provision applying a separate estimated annual effective tax rate to its loss 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 months ended March 31, 2015 from the Singapore operation and did 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 March 31, 2015 interim tax provision. The Company recorded an income tax provision/(benefit) of $(161) and $4,394 in the three months ended March 31, 2016 and 2015, respectively. The effective tax rates were (273%) and (83%) in the three months ended March 31, 2016 and 2015, respectively. The difference between the effective tax rates and the 34% federal statutory rate in the three months ended March 31, 2016 and 2015, respectively, resulted primarily due to change in valuation allowance, foreign income taxes provided at lower rates, geographic mix in expected operating results, unrecognized tax benefits, and recognition of federal and state research and development credits. In addition, for the three months ended March 31, 2016, the difference between the effective tax rate and the 34% federal statutory rate included windfall tax benefits from stock-based compensation. As discussed in Note 2, the Company early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. As a result of adoption, the Company recorded windfall tax benefits from stock-based compensation which was offset by valuation allowance in the three months ended March 31, 2016. During the three months ended March 31, 2016, the gross amount of the Company’s unrecognized tax benefits decreased approximately $1,885 primarily due to a state tax audit settlement and expiration of statute of limitation on certain foreign income taxes, partially offset by the results of tax positions taken during the current year. Substantially all of the unrecognized tax benefits as of March 31, 2016, if recognized, would affect the Company’s effective tax rate. The Company believes that in the next twelve months, it is reasonably possible that the gross unrecognized tax benefit may decrease by approximately $100 due to expiration of statute of limitations on certain foreign income taxes. 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 11 - Earnings Per Share
Note 11 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 11 . Earnings Per Share The following shows the computation of basic and diluted earnings per share: Three Months Ended March 31, 201 6 201 5 Numerator Net income (loss) $ 220 $ (9,708 ) Denominator Weighted average common stock - basic 39,758,201 37,696,518 Effect of potentially dilutive securities: Add options to purchase common stock 1,312,807 — Add unvested restricted stock units 2,317,352 — Add employee stock purchase plan 32,954 — Weighted average common stock—diluted 43,421,314 37,696,518 Earnings per share Basic $ 0.01 $ (0.26 ) Diluted $ 0.01 $ (0.26 ) The following securities were not included in the computation of diluted earnings per share as inclusion would have been anti-dilutive: Three Months Ended March 31, 201 6 201 5 Common stock options — 2,935,994 Restricted stock unit — 4,446,535 Convertible debt 5,727,092 — 5,727,092 7,382,529 As discussed in Note 2, the Company early adopted ASU 2016-09. Based on the new guidance, the excess tax benefit is no longer included in the weighted diluted common stock calculation under the treasury stock method and therefore, increased the total weighted diluted common stock by 939,192 in the three months ended March 31, 2016. This change was applied prospectively. |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. 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 March 31, 2016, 4,019,851 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 months ended March 31, 2016 and 2015. The following table summarizes information regarding options outstanding: Number of Weighted Weighted Aggregate Outstanding at December 31, 201 5 2,256,396 $ 10.61 5.29 $ 37,036 Granted — — Exercised (134,335 ) 8.18 Canceled — — Outstanding at March 31, 201 6 2,122,061 $ 10.76 5.08 $ 47,916 Exercisable at March 31, 201 6 2,048,724 $ 10.79 5.02 $ 46,203 Vested and expected to vest at March 31, 201 6 2,121,603 $ 10.76 5.08 $ 47,905 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 three months ended March 31, 2016 and 2015 was $3,077 and $1,858, 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 $812 and $1,052 for the three months ended March 31, 2016 and 2015, respectively. Restricted Stock Units 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 RSUs : Number of Weighted Outstanding at December 31, 201 5 4,600,869 $ 15.37 Granted 27,700 26.08 Vested (537,514 ) 11.80 Canceled (63,376 ) 14.10 Outstanding at March 31, 201 6 4,027,679 $ 15.93 Expected to vest at March 31, 201 6 3,940,850 The RSUs includes performance-based stock units subject to achievement of pre-established revenue goal and earnings per share on non-GAAP basis. Once the goals are met, the performance-based stock units are subject to four years of vesting from the original grant date, contingent upon continuous service. As of March 31, 2016, the total performance-based units outstanding was 216,642. 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 stock 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 1,750,000 shares. Total common stock issued under the ESPP during the three months ended March 31, 2016 and 2015 was 164,696 and 160,776, 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 assumptions: Three Months Ended March 31, 201 6 201 5 Risk-free interest rate 0.45 % 0.07 % Expected life (in years) 0.50 0.50 Dividend yield — — Expected volatility 55 % 41 % Estimated fair value $ 7.26 $ 5.34 Stock-Based Compensation Expense Stock-based compensation expense is included in the Company’s results of operations as follows: Three Months Ended March 31, 201 6 201 5 Operating expenses Cost of goods sold $ 355 $ 363 Research and development 4,358 3,786 Sales and marketing 1,066 1,025 General and administrative 1,173 1,246 $ 6,952 $ 6,420 Total unrecognized compensation cost related to unvested stock options at March 31, 2016, prior to the consideration of expected forfeitures, is approximately $49,975 and is expected to be recognized over a weighted-average period of 2.36 years. The Company early adopted Accounting Standards Update 2016-09. The effect of adoption resulted to a net credit of $5,261 on the beginning balance of accumulated deficit from previously unrecorded deferred tax assets for net operating loss carryover generated by windfall tax benefit. The adoption increased weighted average diluted common stock by 939,192 shares. In addition, the current period’s excess tax benefit related to stock-based compensation is presented as operating activity in the statement of cash flows. The change in the cash flow was adopted retroactively and the Company reclassified $1,251 of excess tax benefit for the three months ended March 31, 2015 from financing activity to operating activity. |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 1 3 . 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 some 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 months ended March 31, 2016. The following table presents information about assets required to be carried at fair value on a recurring basis: March 31, 201 6 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 76,424 $ 32,958 $ 43,466 Investment in marketable securities: US treasury securities 6,008 6,008 — Municipal bonds 27,285 — 27,285 Corporate notes/bonds 110,559 — 110,559 Government agency bonds 7,476 — 7,476 Commercial papers 30,397 — 30,397 Asset backed securities 7,509 — 7,509 $ 265,658 $ 38,966 $ 226,692 Liabilities Convertible Notes $ 252,018 $ — $ 252,018 December 31, 2015 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 102,008 $ — $ 102,008 Investment in marketable securities: US treasury securities 2,993 2,993 — Municipal bonds 20,036 — 20,036 Corporate notes/bonds 14,657 — 14,657 Government agency bonds 4,007 — 4,007 Asset backed securities 1,923 — 1,923 $ 145,624 $ 2,993 $ 142,631 Liabilities Convertible Notes $ 221,950 $ — $ 221,950 The Convertible Notes are carried on the Consolidated Balance Sheets at their original issuance value including accreted interest, net of unamortized debt discount and issuance cost. The Convertible Notes are not marked to fair value at the end of each reporting period. As of March 31, 2016 and December 31, 2015, the fair value of Convertible Notes was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. |
Note 14 - Segment and Geographi
Note 14 - Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 4 . 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 March 31, 201 6 201 5 China $ 25,738 $ 19,055 United States 9,713 9,456 Japan 7,125 5,213 Other 23,955 25,436 $ 66,531 $ 59,160 As of March 31, 2016, $9,416 of long-lived tangible assets are located outside the United States, of which $7,744 are located in Taiwan. As of December 31, 2015, $7,271 of long-lived tangible assets are located outside the United States of which $5,756 are located in Taiwan. |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 1 5 . Commitments and Contingencies Leases The Company leases its facility and certain equipment under noncancelable lease agreements expiring in various years through 2026. The Company also licenses certain software used in its research and development activities under a term license subscription and maintenance arrangement. As of March 31, 2016, future minimum lease payments under noncancelable operating leases having initial terms in excess of one year are as follows: 2016 (remaining) $ 11,056 2017 4,534 2018 2,193 2019 1,703 2020 and thereafter 576 $ 20,062 For the three months ended March 31, 2016 and 2015, operating lease expense was $3,093 and $3,043, respectively. Noncancelable Purchase Obligations The Company depends upon third-party subcontractors to manufacture its wafers. The Company’s 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 March 31, 2016, the total value of open purchase orders for wafers was approximately $8,248. 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 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, the Company filed inter partes As to the proceeding at the USPTO, reexamination has been ordered for all of the patents that were alleged to infringe, and at present, the USPTO has determined that none of the originally filed claims are valid, with certain amended claims being determined patentable. It is expected that a Reexamination Certificate will issue for U.S. Patent No. 7,532,537 based upon amended claims, and the parties continue to assert their respective positions with respect to the reexamination proceedings for U.S. Patent Nos. 7,619,912 and 7,636,274. While the Company intends to defend the foregoing USPTO proceedings and lawsuit vigorously, the USPTO proceedings and 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 USPTO proceedings and 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 March 31, 2016 and December 31, 2015. |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 6 . Subsequent Events In April 2016, the Compensation Committee granted 1,280,930 RSUs, including performance-based stock units to employees and consultants. |
Note 3 - Investments (Tables)
Note 3 - Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | March 31, 201 6 December 31, 201 5 Cost Fair Value Cost Fair Value Available-for-sale securities: U.S. treasury securities $ 6,000 $ 6,008 $ 2,998 $ 2,993 Municipal bonds 27,258 27,285 20,042 20,036 Corporate notes/bonds 110,452 110,559 14,700 14,657 Government agency bonds 7,468 7,476 4,011 4,007 Commercial paper 30,389 30,397 — — Asset backed securities 7,506 7,509 1,926 1,923 Total investments $ 189,073 $ 189,234 $ 43,677 $ 43,616 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Cost Fair Value Due in one year or less $ 146,107 $ 146,184 Due between one and five years 42,966 43,050 $ 189,073 $ 189,234 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, 201 6 December 31, 201 5 Raw materials $ 3,530 $ 4,291 Work in process 4,083 2,620 Finished goods 9,710 10,917 $ 17,323 $ 17,828 |
Note 5 - Property and Equipme26
Note 5 - Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | March 31, 2016 December 31, 2015 Laboratory and production equipment $ 65,008 $ 59,220 Office, software and computer equipment 19,600 18,562 Furniture and fixtures 1,299 1,264 Leasehold improvements 5,918 5,866 91,825 84,912 Less accumulated depreciation (52,692 ) (48,632 ) $ 39,133 $ 36,280 |
Note 6 - Identifiable Intangi27
Note 6 - Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Developed technology $ 71,570 $ 17,231 $ 54,339 $ 71,570 $ 14,356 $ 57,214 Customer relationships 8,170 1,223 6,947 8,170 1,018 7,152 Trade name 920 276 644 920 230 690 Patents 1,579 398 1,181 1,579 346 1,233 $ 82,239 $ 19,128 $ 63,111 $ 82,239 $ 15,950 $ 66,289 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Cost of goods sold $ 2,875 $ 2,875 Sales and marketing 205 204 General and administrative 98 107 $ 3,178 $ 3,186 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2016 (remaining) $ 9,529 2017 12,682 2018 12,648 2019 11,078 2020 6,394 Thereafter 10,780 $ 63,111 |
Finite Lived Intangible Assets Remaining Amortization Period [Table Text Block] | Developed technology 5.10 Customer relationship 8.50 Others 9.48 |
Note 9 - Other Long-term Liab28
Note 9 - Other Long-term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Other Noncurrent Liabilities [Table Text Block] | March 31, 201 6 December 31, 201 5 Deferred rent $ 1,542 $ 1,728 Income tax payable 1,536 6,969 $ 3,078 $ 8,697 |
Note 11 - Earnings Per Share (T
Note 11 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Numerator Net income (loss) $ 220 $ (9,708 ) Denominator Weighted average common stock - basic 39,758,201 37,696,518 Effect of potentially dilutive securities: Add options to purchase common stock 1,312,807 — Add unvested restricted stock units 2,317,352 — Add employee stock purchase plan 32,954 — Weighted average common stock—diluted 43,421,314 37,696,518 Earnings per share Basic $ 0.01 $ (0.26 ) Diluted $ 0.01 $ (0.26 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Common stock options — 2,935,994 Restricted stock unit — 4,446,535 Convertible debt 5,727,092 — 5,727,092 7,382,529 |
Note 12 - Stock-based Compens30
Note 12 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Activity [Table Text Block] | Number of Weighted Weighted Aggregate Outstanding at December 31, 201 5 2,256,396 $ 10.61 5.29 $ 37,036 Granted — — Exercised (134,335 ) 8.18 Canceled — — Outstanding at March 31, 201 6 2,122,061 $ 10.76 5.08 $ 47,916 Exercisable at March 31, 201 6 2,048,724 $ 10.79 5.02 $ 46,203 Vested and expected to vest at March 31, 201 6 2,121,603 $ 10.76 5.08 $ 47,905 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Number of Weighted Outstanding at December 31, 201 5 4,600,869 $ 15.37 Granted 27,700 26.08 Vested (537,514 ) 11.80 Canceled (63,376 ) 14.10 Outstanding at March 31, 201 6 4,027,679 $ 15.93 Expected to vest at March 31, 201 6 3,940,850 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Risk-free interest rate 0.45 % 0.07 % Expected life (in years) 0.50 0.50 Dividend yield — — Expected volatility 55 % 41 % Estimated fair value $ 7.26 $ 5.34 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Operating expenses Cost of goods sold $ 355 $ 363 Research and development 4,358 3,786 Sales and marketing 1,066 1,025 General and administrative 1,173 1,246 $ 6,952 $ 6,420 |
Note 13 - Fair Value Measurem31
Note 13 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | March 31, 201 6 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 76,424 $ 32,958 $ 43,466 Investment in marketable securities: US treasury securities 6,008 6,008 — Municipal bonds 27,285 — 27,285 Corporate notes/bonds 110,559 — 110,559 Government agency bonds 7,476 — 7,476 Commercial papers 30,397 — 30,397 Asset backed securities 7,509 — 7,509 $ 265,658 $ 38,966 $ 226,692 Liabilities Convertible Notes $ 252,018 $ — $ 252,018 December 31, 2015 Total Level 1 Level 2 Assets Cash equivalents: Money market funds $ 102,008 $ — $ 102,008 Investment in marketable securities: US treasury securities 2,993 2,993 — Municipal bonds 20,036 — 20,036 Corporate notes/bonds 14,657 — 14,657 Government agency bonds 4,007 — 4,007 Asset backed securities 1,923 — 1,923 $ 145,624 $ 2,993 $ 142,631 Liabilities Convertible Notes $ 221,950 $ — $ 221,950 |
Note 14 - Segment and Geograp32
Note 14 - Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended March 31, 201 6 201 5 China $ 25,738 $ 19,055 United States 9,713 9,456 Japan 7,125 5,213 Other 23,955 25,436 $ 66,531 $ 59,160 |
Note 15 - Commitments and Con33
Note 15 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2016 (remaining) $ 11,056 2017 4,534 2018 2,193 2019 1,703 2020 and thereafter 576 $ 20,062 |
Note 3 - Investments (Details T
Note 3 - Investments (Details Textual) $ in Thousands | Mar. 31, 2016USD ($) |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 34 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | $ 28 |
Note 3 - Summary of Investments
Note 3 - Summary of Investments by Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
US Treasury Securities [Member] | ||
Available-for-sale securities, amortized cost | $ 6,000 | $ 2,998 |
Available-for-sale securities, fair value | 6,008 | 2,993 |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities, amortized cost | 27,258 | 20,042 |
Available-for-sale securities, fair value | 27,285 | 20,036 |
Corporate Debt Securities [Member] | ||
Available-for-sale securities, amortized cost | 110,452 | 14,700 |
Available-for-sale securities, fair value | 110,559 | 14,657 |
US Government Agencies Debt Securities [Member] | ||
Available-for-sale securities, amortized cost | 7,468 | 4,011 |
Available-for-sale securities, fair value | 7,476 | $ 4,007 |
Commercial Paper [Member] | ||
Available-for-sale securities, amortized cost | 30,389 | |
Available-for-sale securities, fair value | 30,397 | |
Asset-backed Securities [Member] | ||
Available-for-sale securities, amortized cost | 7,506 | $ 1,926 |
Available-for-sale securities, fair value | 7,509 | 1,923 |
Available-for-sale securities, amortized cost | 189,073 | 43,677 |
Available-for-sale securities, fair value | $ 189,234 | $ 43,616 |
Note 3 - Contractual Maturities
Note 3 - Contractual Maturities of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Due in one year or less | $ 146,107 | |
Due in one year or less | 146,184 | |
Due between one and five years | 42,966 | |
Due between one and five years | 43,050 | |
Available-for-sale securities, cost | 189,073 | |
Available-for-sale securities, fair value | $ 189,234 | $ 43,616 |
Note 4 - Inventories (Details T
Note 4 - Inventories (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 1,642 | $ 2,153 |
Note 4 - Inventory (Details)
Note 4 - Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Raw materials | $ 3,530 | $ 4,291 |
Work in process | 4,083 | 2,620 |
Finished goods | 9,710 | 10,917 |
Total inventories | $ 17,323 | $ 17,828 |
Note 5 - Property and Equipme39
Note 5 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Depreciation | $ 4,050 | $ 3,237 | |
Capitalized Computer Software, Gross | 6,248 | $ 5,929 | |
Capitalized Computer Software, Amortization | 287 | $ 232 | |
Property Plant and Equipment Not Yet Paid | $ 1,818 | $ 1,949 |
Note 5 - Property and Equipme40
Note 5 - Property and Equipment Components (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Equipment [Member] | ||
Property, plant and equipment, gross | $ 65,008 | $ 59,220 |
Office, Software, and Computer Equipment [Member] | ||
Property, plant and equipment, gross | 19,600 | 18,562 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 1,299 | 1,264 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 5,918 | 5,866 |
Property, plant and equipment, gross | 91,825 | 84,912 |
Less accumulated depreciation | (52,692) | (48,632) |
Total property and equipment | $ 39,133 | $ 36,280 |
Note 6 - Identifiable Intangi41
Note 6 - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Developed Technology Rights [Member] | ||
Intangible assets, gross | $ 71,570 | $ 71,570 |
Intangible assets, accumulated amortization | 17,231 | 14,356 |
Intangible assets, net | 54,339 | 57,214 |
Customer Relationships [Member] | ||
Intangible assets, gross | 8,170 | 8,170 |
Intangible assets, accumulated amortization | 1,223 | 1,018 |
Intangible assets, net | 6,947 | 7,152 |
Trade Names [Member] | ||
Intangible assets, gross | 920 | 920 |
Intangible assets, accumulated amortization | 276 | 230 |
Intangible assets, net | 644 | 690 |
Patents [Member] | ||
Intangible assets, gross | 1,579 | 1,579 |
Intangible assets, accumulated amortization | 398 | 346 |
Intangible assets, net | 1,181 | 1,233 |
Intangible assets, gross | 82,239 | 82,239 |
Intangible assets, accumulated amortization | 19,128 | 15,950 |
Intangible assets, net | $ 63,111 | $ 66,289 |
Note 6 - Finite-lived Intangibl
Note 6 - Finite-lived Intangible Assets, Accumulated Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cost of Sales [Member] | ||
Cost of goods sold | $ 2,875 | $ 2,875 |
Selling and Marketing Expense [Member] | ||
Amortization of intangible assets | 205 | 204 |
General and Administrative Expense [Member] | ||
Amortization of intangible assets | 98 | 107 |
Amortization of intangible assets | $ 3,178 | $ 3,186 |
Note 6 - Amortization of Intang
Note 6 - Amortization of Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
2016 (remaining) | $ 9,529 | |
2,017 | 12,682 | |
2,018 | 12,648 | |
2,019 | 11,078 | |
2,020 | 6,394 | |
Thereafter | 10,780 | |
Total amortization expense | $ 63,111 | $ 66,289 |
Note 6 - Intangible Assets Weig
Note 6 - Intangible Assets Weighted-average Amortization Periods (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Developed Technology Rights [Member] | |
Finite-lived intangible assets, remaining amortization period | 5 years 36 days |
Customer Relationships [Member] | |
Finite-lived intangible assets, remaining amortization period | 8 years 182 days |
Other Intangible Assets [Member] | |
Finite-lived intangible assets, remaining amortization period | 9 years 175 days |
Note 7 - Product Warranty Obl45
Note 7 - Product Warranty Obligation (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Standard and Extended Product Warranty Accrual | $ 110,000 | $ 110,000 | |
Standard and Extended Product Warranty Accrual, Period Increase (Decrease) | $ 0 | $ 0 |
Note 8 - Convertible Debt (Deta
Note 8 - Convertible Debt (Details Textual) - Convertible Debt [Member] $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended |
Dec. 31, 2015USD ($)$ / shares$ / item | Mar. 31, 2016USD ($) | |
Debt Instrument, Face Amount | $ 230,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | |
Debt Instrument, Convertible, Conversion Ratio | 24.8988 | |
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 40.16 | |
Interest Expense, Debt | $ 3,132 | |
Interest Expense, Debt, Excluding Amortization | 754 | |
Amortization of Debt Discount (Premium) | 2,182 | |
Amortization of Debt Issuance Costs | $ 196 | |
Capped Call, Aggregate Call Options Purchased, Percentage Related to Shares Underlying the Convertible Note | 100.00% | |
Derivative, Cap Price | $ / item | 52.06 |
Note 9 - Other Long-term Liab47
Note 9 - Other Long-term Liabilities (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred rent | $ 1,542,000 | $ 1,728,000 |
Income tax payable | 1,536,000 | 6,969,000 |
Total other long-term liabilities | $ 3,078,000 | $ 8,697,000 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Expense (Benefit) | $ (161) | $ 4,394 |
Effective Income Tax Rate Reconciliation, Percent | (273.00%) | (83.00%) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | $ 1,885 | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 100 |
Note 11 - Earnings Per Share (D
Note 11 - Earnings Per Share (Details Textual) | 3 Months Ended |
Mar. 31, 2016shares | |
Adoption of ASU 2016-09 [Member] | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 939,192 |
Note 11 - Computation of Basic
Note 11 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income (loss) | $ 220 | $ (9,708) |
Weighted average common stock - basic (in shares) | 39,758,201 | 37,696,518 |
Effect of potentially dilutive securities: | ||
Add options to purchase common stock (in shares) | 1,312,807 | |
Add unvested restricted stock units (in shares) | 2,317,352 | |
Add employee stock purchase plan (in shares) | 32,954 | |
Weighted average common stock—diluted (in shares) | 43,421,314 | 37,696,518 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.01 | $ (0.26) |
Diluted (in dollars per share) | $ 0.01 | $ (0.26) |
Note 11 - Securities Not Includ
Note 11 - Securities Not Included in Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Anti-dilutive securities (in shares) | 2,935,994 | |
Restricted Stock Units (RSUs) [Member] | ||
Anti-dilutive securities (in shares) | 4,446,535 | |
Convertible Debt Securities [Member] | ||
Anti-dilutive securities (in shares) | 5,727,092 | |
Anti-dilutive securities (in shares) | 5,727,092 | 7,382,529 |
Note 12 - Stock-based Compens52
Note 12 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2011 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 4,027,679 | 4,600,869 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 216,642 | |||
Employee Stock Purchase Plan [Member] | ||||
Maximum Percentage of Aggregate Cash Compensation for Purchase of Stock Using Payroll Deduction | 15.00% | |||
Look Back Period of Employee Stock Purchase Plan | 180 days | |||
Purchase Price PerShare 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 | $ 25 | |||
Maximum Aggregate Number of Shares of Common Stock Available for Purchase under Employee Stock Purchase Plan | 1,750,000 | |||
Adoption of ASU 2016-09 [Member] | Adjustments to Beginning Retained Earnings Balance [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 5,261 | |||
Adoption of ASU 2016-09 [Member] | Adjustments of Excess Tax Benefit Related to Share-based Compensation from Operating to Financing Activities [Member] | Three Months Ended March 31, 2015 [Member] | ||||
Prior Period Reclassification Adjustment | $ 1,251 | |||
Adoption of ASU 2016-09 [Member] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 939,192 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 4,019,851 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 3,077 | $ 1,858 | ||
Proceeds from Stock Options Exercised | $ 812 | $ 1,052 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 164,696 | 160,776 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 49,975 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 131 days |
Note 12 - Information Regarding
Note 12 - Information Regarding Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Number of shares outstanding (in shares) | 2,256,396 | ||
Number of shares outstanding, weighted-average exercise price (in dollars per share) | $ 10.61 | ||
Number of shares outstanding, weighted-average remaining contractual life | 5 years 29 days | 5 years 105 days | |
Number of shares outstanding, aggregate intrinsic value | $ 47,916 | $ 37,036 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |
Number of shares exercised (in shares) | (134,335) | ||
Number of shares exercised, weighted-average exercise price (in dollars per share) | $ 8.18 | ||
Number of shares cancelled (in shares) | |||
Number of shares outstanding (in shares) | 2,122,061 | 2,256,396 | |
Number of shares outstanding, weighted-average exercise price (in dollars per share) | $ 10.76 | $ 10.61 | |
Number of shares exercisble (in shares) | 2,048,724 | ||
Number of shares exercisble, weighted-average exercise price (in dollars per share) | $ 10.79 | ||
Number of shares exercisble, weighted-average remaining contractual life | 5 years 7 days | ||
Number of shares exercisable, aggregate intrinsic value | $ 46,203 | ||
Number of shares vested and expected to vest in the future (in shares) | 2,121,603 | ||
Number of shares vested and expected to vest in the future, weighted-average exercise price (in dollars per share) | $ 10.76 | ||
Number of shares vested and expected to vest in the future, weighted-average remaining contractual life | 5 years 29 days | ||
Number of shares vested and expected to vest in the future, aggregate intrinsic value | $ 47,905 |
Note 12 - Information Regardi54
Note 12 - Information Regarding Outstanding Restricted Stock Units (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | |
Number of restricted stock units outstanding (in shares) | 4,600,869 |
Number of restricted stock units outstanding, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 15.37 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 27,700 |
Number of restricted stock units granted, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 26.08 |
Number of restricted stock units vested (in shares) | (537,514) |
Number of restricted stock units vested, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 11.80 |
Number of restricted stock units cancelled (in shares) | (63,376) |
Number of restricted stock units cancelled, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 14.10 |
Number of restricted stock units outstanding (in shares) | 4,027,679 |
Number of restricted stock units outstanding, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 15.93 |
Number of restricted stock units expected to vest in the future (in shares) | 3,940,850 |
Note 12 - Fair Value of Employe
Note 12 - Fair Value of Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Risk-free interest rate | 0.45% | 0.07% |
Expected life (in years) | 182 days | 182 days |
Expected volatility | 55.00% | 41.00% |
Estimated fair value (in dollars per share) | $ 7.26 | $ 5.34 |
Note 12 - Stock-based Compens56
Note 12 - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cost of Sales [Member] | ||
Stock-based compensation | $ 355 | $ 363 |
Research and Development Expense [Member] | ||
Stock-based compensation | 4,358 | 3,786 |
Selling and Marketing Expense [Member] | ||
Stock-based compensation | 1,066 | 1,025 |
General and Administrative Expense [Member] | ||
Stock-based compensation | 1,173 | 1,246 |
Stock-based compensation | $ 6,952 | $ 6,420 |
Note 13 - Information about Ass
Note 13 - Information about Assets and Liabilities Required to be Carried at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | $ 32,958 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | 43,466 | $ 102,008 |
Money Market Funds [Member] | ||
Cash equivalents | 76,424 | 102,008 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investment in marketable securities | 6,008 | 2,993 |
US Treasury Securities [Member] | ||
Investment in marketable securities | 6,008 | 2,993 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment in marketable securities | 27,285 | 20,036 |
Municipal Bonds [Member] | ||
Investment in marketable securities | 27,285 | 20,036 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment in marketable securities | 110,559 | 14,657 |
Corporate Debt Securities [Member] | ||
Investment in marketable securities | 110,559 | 14,657 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment in marketable securities | 7,476 | 4,007 |
US Government Agencies Debt Securities [Member] | ||
Investment in marketable securities | 7,476 | 4,007 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment in marketable securities | 30,397 | |
Commercial Paper [Member] | ||
Investment in marketable securities | 30,397 | |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment in marketable securities | 7,509 | 1,923 |
Asset-backed Securities [Member] | ||
Investment in marketable securities | 7,509 | 1,923 |
Fair Value, Inputs, Level 1 [Member] | ||
Total fair value of assets | 38,966 | 2,993 |
Fair Value, Inputs, Level 2 [Member] | ||
Total fair value of assets | 226,692 | 142,631 |
Convertible Notes | 252,018 | 221,950 |
Total fair value of assets | 265,658 | 145,624 |
Convertible Notes | $ 252,018 | $ 221,950 |
Note 14 - Segment and Geograp58
Note 14 - Segment and Geographic Information (Details Textual) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Outside the United States [Member] | ||
Long Lived Tangible Assets Located Outside Country | $ 9,416 | $ 7,271 |
TAIWAN, PROVINCE OF CHINA | ||
Long Lived Tangible Assets Located Outside Country | $ 7,744 | $ 5,756 |
Number of Reportable Segments | 1 |
Note 14 - Revenue by Geographic
Note 14 - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CHINA | ||
Revenue by geographic region | $ 25,738 | $ 19,055 |
UNITED STATES | ||
Revenue by geographic region | 9,713 | 9,456 |
JAPAN | ||
Revenue by geographic region | 7,125 | 5,213 |
Other Country [Member] | ||
Revenue by geographic region | 23,955 | 25,436 |
Revenue by geographic region | $ 66,531 | $ 59,160 |
Note 15 - Commitments and Con60
Note 15 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Operating Leases, Rent Expense, Net | $ 3,093,000 | $ 3,043,000 | |
Value of Open Purchase Orders | 8,248,000 | ||
Estimated Litigation Liability | $ 0 | $ 0 |
Note 15 - Future Minimum Lease
Note 15 - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2016USD ($) |
2016 (remaining) | $ 11,056 |
2,017 | 4,534 |
2,018 | 2,193 |
2,019 | 1,703 |
2020 and thereafter | 576 |
Total future minimum lease payments | $ 20,062 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) - Restricted Stock Units (RSUs) [Member] - shares | 1 Months Ended | 3 Months Ended |
Apr. 30, 2016 | Mar. 31, 2016 | |
Subsequent Event [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,280,930 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 27,700 |