Procera Networks (PKT) Inactive 10-Q10 Nov 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Nov. 06, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'PROCERA NETWORKS, INC.	'
Entity Central Index Key	'0001165231	'
Current Fiscal Year End Date	'--12-31	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	20,739,641
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$14,248	$90,774	[1]
Short-term investments	87,921	15,789	[1]
Accounts receivable, net of allowance of $122 and $129 at September 30, 2014 and December 31, 2013, respectively	19,941	25,008	[1]
Inventories, net	15,917	18,836	[1]
Prepaid expenses and other	3,351	2,128	[1]
Total current assets	141,378	152,535	[1]
Property and equipment, net	7,603	7,121	[1]
Intangible assets, net	3,320	6,270	[1]
Goodwill	960	12,326	[1]
Deferred tax assets	866	1,101	[1]
Other non-current assets	120	83	[1]
Total assets	154,247	179,436	[1]
Current liabilities:	'	'
Accounts payable	3,811	7,305	[1]
Deferred revenue	11,944	11,633	[1]
Accrued liabilities	5,691	6,721	[1]
Total current liabilities	21,446	25,659	[1]
Non-current liabilities:	'	'
Deferred revenue	3,116	3,273	[1]
Deferred tax liability	866	1,690	[1]
Deferred rent	122	143	[1]
Total liabilities	25,550	30,765	[1]
Commitments and contingencies	'	'	[1]
Stockholders' equity:	'	'
Preferred stock, $0.001 par value; 15,000 shares authorized: none issued and outstanding	0	0	[1]
Common stock, $0.001 par value; 32,500 shares authorized; 20,730 and 20,652 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	21	21	[1]
Additional paid-in capital	223,844	219,763	[1]
Accumulated other comprehensive loss	-2,856	-1,897	[1]
Accumulated deficit	-92,312	-69,216	[1]
Total stockholders' equity	128,697	148,671	[1]
Total liabilities and stockholders' equity	$154,247	$179,436	[1]

[1]	Amounts have been derived from the December 31, 2013 audited consolidated financial statements.

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Accounts receivable, allowance	$122	$129
Stockholders' equity:	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized (in shares)	15,000	15,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized (in shares)	32,500	32,500
Common stock, shares issued (in shares)	20,730	20,652
Common stock, shares outstanding (in shares)	20,730	20,652

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Sales:	'	'	'	'
Product sales	$11,164	$16,301	$35,792	$40,328
Support sales	4,945	5,032	15,466	13,015
Total net sales	16,109	21,333	51,258	53,343
Cost of sales:	'	'	'	'
Product cost of sales	4,774	10,080	17,645	22,451
Support cost of sales	1,118	896	3,269	2,442
Total cost of sales	5,892	10,976	20,914	24,893
Gross profit	10,217	10,357	30,344	28,450
Operating expenses:	'	'	'	'
Research and development	4,096	3,945	12,360	12,532
Sales and marketing	6,497	7,322	20,425	21,293
General and administrative	2,760	2,510	8,311	9,498
Impairment of goodwill and purchased intangible assets	12,380	0	12,380	0
Total operating expenses	25,733	13,777	53,476	43,323
Loss from operations	-15,516	-3,420	-23,132	-14,873
Interest and other income (expense), net	-356	232	-245	203
Loss before income taxes	-15,872	-3,188	-23,377	-14,670
Income tax benefit	-160	-205	-281	-1,688
Net loss	($15,712)	($2,983)	($23,096)	($12,982)
Net loss per share - basic (in dollars per share)	($0.77)	($0.15)	($1.13)	($0.65)
Net loss per share - diluted (in dollars per share)	($0.77)	($0.15)	($1.13)	($0.65)
Shares used in computing net loss per share:	'	'	'	'
Basic (in shares)	20,500	20,031	20,395	20,007
Diluted (in shares)	20,500	20,031	20,395	20,007

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) [Abstract]	'	'	'	'
Net loss	($15,712)	($2,983)	($23,096)	($12,982)
Unrealized gain (loss) on short-term investments	12	29	10	-21
Foreign currency translation adjustments	-829	566	-969	-987
Other comprehensive income (loss)	-817	595	-959	-1,008
Comprehensive loss	($16,529)	($2,388)	($24,055)	($13,990)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014		Sep. 30, 2013
Cash flows from operating activities:	'		'
Net loss	($23,096)		($12,982)
Adjustments to reconcile net loss to net cash used in operating activities:	'		'
Depreciation	1,744		1,342
Amortization of intangible assets	1,135		1,179
Stock-based compensation expense:	'		'
Stock options	2,396		2,852
Restricted stock and restricted stock unit awards	1,333		962
Impairment of goodwill and purchased intangible assets	12,380		0
Amortization of premium on investments	547		773
Amortization of deferred compensation	64		4,301
Provision for bad debts	33		49
Provision for excess and obsolete inventory	408		588
Loss on asset disposals	14		0
Changes in deferred taxes	-514		-1,550
Changes in assets and liabilities:	'		'
Accounts receivable	4,492		-3,171
Inventories	1,801		-6,393
Prepaid expenses and other current assets	-1,694		2,205
Deferred compensation advanced to escrow	0		-2,701
Accounts payable	-3,397		-1,220
Accrued liabilities	-763		458
Deferred revenue	622		2,557
Net cash used in operating activities	-2,495		-10,751
Cash flows from investing activities:	'		'
Purchase of Vineyard Networks Inc., net of cash received	0		-8,962
Purchase of property and equipment	-2,267		-2,209
Purchase of short-term investments	-111,443		-36,019
Sale of short-term investments	24,164		11,212
Maturities of short-term investments	14,835		93,120
Net cash provided by (used in) investing activities	-74,711		57,142
Cash flows from financing activities:	'		'
Proceeds from issuance of common stock - exercise of options	352		428
Payments on notes payable	0		-497
Net cash provided by (used in) financing activities	352		-69
Effect of exchange rates on cash and cash equivalents	328		-117
Net increase (decrease) in cash and cash equivalents	-76,526		46,205
Cash and cash equivalents, beginning of period	90,774	[1]	30,933
Cash and cash equivalents, end of period	14,248		77,138
Non-cash investing and financing activities:	'		'
Issuance of common stock in connection with Vineyard Networks Inc. acquisition	$0		$11,140

[1]	Amounts have been derived from the December 31, 2013 audited consolidated financial statements.

DESCRIPTION_OF_BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2014
DESCRIPTION OF BUSINESS [Abstract]	'
DESCRIPTION OF BUSINESS	'
	1	DESCRIPTION OF BUSINESS

	Procera Networks, Inc., a Delaware corporation (“Procera” or the “Company”), is a leading provider of Intelligent Policy Enforcement (“IPE”) solutions, based on Deep Packet Inspection technology, that enable mobile and broadband network operators and enterprises managing private networks, including higher education institutions, businesses and government entities (collectively referred to as network operators), to gain enhanced visibility into, and control of, their networks and to create and deploy new services for their end user subscribers. The Company sells its products through its direct sales force, resellers, distributors, systems integrators and other equipment manufacturers in the Americas, Asia Pacific, Europe, Canada, Africa and the Middle East.

	Procera was incorporated in 2002 and its common stock currently trades on the NASDAQ Global Select Market under the trading symbol “PKT”. The Company reincorporated from the state of Nevada to the state of Delaware in June 2013.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	Basis of Presentation

	Procera has prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the financial statements include all the normal and recurring adjustments that are necessary to fairly present the results of the interim periods presented. The interim results presented are not necessarily indicative of results for any subsequent interim period, the year ending December 31, 2014 or any other future period. The consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Procera’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 11, 2014.

	The condensed consolidated financial statements present the accounts of Procera and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated.

	During the quarter ended March 31, 2013, the Company identified immaterial errors in the consolidated financial statements for the year ended December 31, 2012, related to the recognition of revenue from a sale to a value added reseller, the accounting for inventory and general and administrative fee accruals. Based on a quantitative and qualitative analysis of the errors as required by authoritative guidance, management concluded that the errors had no material impact on any of the Company’s previously issued financial statements, are immaterial to the Company’s results for the first quarter of 2013 and full year 2013 results, and had no material effect on the trend of the Company’s financial results. As a result of the immaterial errors discussed above, the unaudited condensed consolidated financial statements for the nine months ended September 30, 2013 reflect the following immaterial adjustments: the reversal of a revenue deal resulting in a reduction of $0.6 million of revenue and a reduction of $0.2 million of cost of sales, inventory charges resulting in an increase of $0.4 million in cost of sales and additional general and administrative costs of $43,000.

	Significant Accounting Policies

	The accounting and reporting policies of the Company conform to GAAP. There have been no significant changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2014 compared to what was previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 11, 2014.

	Recent Accounting Pronouncements

	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, issued as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective beginning in fiscal year 2017 and can be adopted by the Company either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations, cash flows and financial position.

	In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply the existing guidance in ASC Topic No. 718, “Compensation – Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material effect on the Company’s consolidated financial statements or disclosures.

	In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements”, which provides new guidance related to the disclosures around going concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

CASH_EQUIVALENTS_AND_SHORTTERM

CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	9 Months Ended
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	Sep. 30, 2014
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS [Abstract]	'
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	'
	3	CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

	The following is a summary of cash equivalents and short-term investments by type of instrument at September 30, 2014 and December 31, 2013 (in thousands):

			30-Sep-14
			Amortized		Gross Unrealized					Fair
			Cost		Gains		Losses			Value
	Treasury and agency notes and bills		$	54,567	$	26	$	(4	)	$	54,589
	Corporate bonds			26,210		7		(8	)		26,209
	Commercial paper			9,120		3		—			9,123
	Money market funds			737		—		—			737
	Total investments		$	90,634	$	36	$	(12	)	$	90,658

	Reported as:
	Cash equivalents		$	2,737	$	—	$	—		$	2,737
	Short-term investments			87,897		36		(12	)		87,921
	Total		$	90,634	$	36	$	(12	)	$	90,658

			31-Dec-13
			Amortized		Gross Unrealized					Fair
			Cost		Gains		Losses			Value
	Money market funds		$	79,869	$	—	$	—		$	79,869
	Commercial paper			15,776		13		—			15,789
	Total investments		$	95,645	$	13	$	—		$	95,658

	Reported as:
	Cash equivalents		$	79,869	$	—	$	—		$	79,869
	Short-term investments			15,776		13		—			15,789
	Total		$	95,645	$	13	$	—		$	95,658

	As of September 30, 2014, all investments were classified as available-for-sale with unrealized gains and losses recorded as a separate component of accumulated other comprehensive loss. Cash equivalents consist of highly liquid investments with remaining maturities of three months or less at the date of purchase. Short-term investments have a remaining maturity of greater than three months at the date of purchase. The weighted average maturity of the portfolio does not exceed 12 months. As of September 30, 2014, the Company had $22.0 million in investments with a maturity of greater than one year. However, management has the ability, if necessary, to liquidate any of its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, investments with contractual maturities greater than one year from the date of purchase are classified as short-term on the accompanying condensed consolidated balance sheets. None of the Company’s short-term investments have been at a continuous unrealized loss position for greater than 12 months.

	The Company reviews its investments for impairment quarterly. For investments with an unrealized loss, the factors considered in the review include the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, severity of impairment, reason for the decline in value and potential recovery period, the financial condition and near-term prospects of the investees, and whether the Company would be required to sell an investment due to liquidity or contractual reasons before its anticipated recovery. Based on its review, the Company did not identify any investments that were other-than-temporarily impaired during the three and nine months ended September 30, 2014.

	The Company did not incur any material realized gains or losses in any of the three and nine months ended September 30, 2014 or 2013. The cost of securities sold was determined based on the specific identification method.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
FAIR VALUE MEASUREMENTS	Sep. 30, 2014
FAIR VALUE MEASUREMENTS [Abstract]	'
FAIR VALUE MEASUREMENTS	'
	4	FAIR VALUE MEASUREMENTS

	Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability.

	The three levels of inputs that may be used to measure fair value are as follows:

		Level 1-	Quoted prices in active markets for identical assets or liabilities.

		Level 2-	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities.

		Level 3-	Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities.

	The following is a summary of cash equivalents and short-term investments by type of instrument as of September 30, 2014 and December 31, 2013, measured at fair value on a recurring basis (in thousands):

			30-Sep-14
			Level 1		Level 2		Level 3		Total
	Money market funds		$	737	$	—	$	—	$	737
	Treasury and agency notes and bills			—		54,589		—		54,589
	Corporate bonds			—		26,209		—		26,209
	Commercial paper			—		9,123		—		9,123
	Total assets measured at fair value		$	737	$	89,921	$	—	$	90,658

			31-Dec-13
			Level 1		Level 2		Level 3		Total
	Money market funds		$	79,869	$	—	$	—	$	79,869
	Commercial paper			—		15,789		—		15,789
	Total assets measured at fair value		$	79,869	$	15,789	$	—	$	95,658

	In general, and where applicable, the Company uses quoted market prices in active markets for identical assets to determine fair value. This pricing methodology applies to Level 1 investments which are comprised of money market funds. If quoted prices in active markets for identical assets are not available, then the Company uses quoted prices for similar assets or inputs other than quoted prices that are observable, either directly or indirectly. These investments are included in Level 2 and consist of commercial paper, U.S. agency securities and U.S. Government and corporate bonds. U.S. agency securities and U.S. Government and corporate bonds are valued at a consensus price, which is a weighted average price based on market prices from a variety of industry standard data providers used as inputs to a distribution-curve based algorithm. Commercial paper is valued using market prices where available, adjusting for accretion of the purchase price to face value at maturity.

	The Company did not have any transfers between Level 1 and Level 2 fair value instruments during any of the three or nine months ended September 30, 2014 or 2013.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
ACQUISITIONS	Sep. 30, 2014
ACQUISITIONS [Abstract]	'
ACQUISITIONS	'
	5	ACQUISITIONS

	On January 9, 2013, the Company completed its acquisition of Vineyard Networks Inc. (“Vineyard”), a privately held developer of Layer 7 Deep Packet Inspection (“DPI”) and application classification technology located in Kelowna, Canada. Vineyard’s integrated DPI and application classification technology provides enterprise and service provider networking infrastructure vendors with these capabilities through its integrated software suite, primarily through a variety of subscription based original equipment manufacturer and partner agreements. This acquisition complements the Company’s hardware and application software-based IPE and DPI solutions.

	The total purchase price was $20.9 million, consisting of $9.8 million cash consideration and $11.1 million in the Company’s common stock in exchange for 100% of the outstanding securities of Vineyard. Of the consideration paid, $2.0 million and $1.9 million in cash and stock, respectively, was placed into escrow for a period of 18 or 36 months from the closing of the acquisition and to be released subject to resolution of certain contingencies. In July 2014, $1.9 million and $1.8 million in cash and stock, respectively, was released from escrow. In addition to the purchase consideration, the Company recorded deferred compensation of $5.9 million, consisting of $2.7 million in cash consideration and $3.2 million in the Company’s common stock, related to retention agreements with Vineyard’s three founders, which was disbursed from the escrow account in January 2014 after one year of continuous employment with the Company. The Company recognized no compensation costs and $0.1 million in compensation costs related to these retention agreements for the three and nine months ended September 30, 2014, respectively. The Company recognized $1.5 million and $4.3 million in compensation costs related to these retention agreements for the three and nine months ended September 30, 2013, respectively.

	For the three and nine months ended September 30, 2014, Vineyard contributed $1.2 million and $3.3 million in revenue, respectively, and $12.9 million and $13.6 million in net loss, respectively, of which $12.4 million relates to the Company’s impairment charge recorded in the three months ended September 2014. See Note 6 – “Goodwill and Intangible Assets” for additional details. For the three and nine months ended September 30, 2013, Vineyard contributed $0.8 million and $1.7 million in revenue, respectively, and $0.6 million and $1.7 million in net loss, respectively.

	The Company recognized acquisition-related costs for Vineyard of $1.0 million during the first quarter of 2013. These acquisition-related charges were expensed in the period incurred and reported in the Company’s condensed consolidated statements of operations within general and administrative expenses.

	The following table summarizes the net assets and liabilities acquired, including identifiable intangible assets, based on their respective fair values at the acquisition date (in thousands):

	Assets acquired
	Cash		$	822
	Accounts receivable			525
	Other current assets			2,095
	Identifiable intangible assets			8,460
	Goodwill (1)			12,346
	Other assets			303
	Total assets acquired			24,551
	Liabilities assumed
	Accounts payable and other accrued liabilities			420
	Deferred revenue			555
	Notes payable			511
	Deferred tax liability			2,141
	Total liabilities assumed			3,627
	Net assets acquired		$	20,924

		-1	The Company made an election under Section 338(g) of the Internal Revenue Code of 1986, as amended, which resulted in tax-deductible goodwill related to the Vineyard transaction. The Company estimated that the tax-deductible goodwill and intangibles resulting from the election will approximate $17.6 million, to be amortized for U.S. tax purposes over a 15 year period that began on January 1, 2014.

	Intangible Assets Acquired

	The following table presents details of the intangible assets acquired in connection with the acquisition of Vineyard, which was completed during the first quarter of 2013 (in thousands, except years):

			Estimated Useful Life			Amount
			(in years)			Amount
	Developed technology			5		$	5,910
	Customer relationships			5			2,550
	Total					$	8,460

	Acquired technology consists of existing research and development projects at the time of the acquisition that have reached technological feasibility. No in-process research and development was included in acquired intangible assets as of the acquisition date.

	Pro Forma Financial Information

	The following tables summarize the supplemental condensed consolidated statements of operations information on an unaudited pro forma basis as if the acquisition of Vineyard occurred on January 1, 2012 and include adjustments that were directly attributable to the foregoing transaction or were not expected to have a continuing impact on the Company. The acquisition of Vineyard was included in the results of operations as of the acquisition date of January 9, 2013. The pro forma results are for illustrative purposes only for the applicable period and do not purport to be indicative of the actual results that would have occurred had the transaction been completed as of the beginning of the period, nor are they indicative of results of operations that may occur in the future (in thousands, except per share amounts):

			Three Months Ended			Nine Months Ended
			September 30,			September 30,
			2013			2013
	Pro forma revenues		$	21,440		$	54,474
	Pro forma net loss			(1,408	)		(6,393	)
	Basic and diluted loss per share		$	(0.07	)	$	(0.31	)

	The pro forma financial information reflects acquisition-related expenses incurred, pro forma adjustments for the additional amortization associated with finite-lived intangible assets acquired, deferred compensation costs related to the retention of certain Vineyard employees, the change in stock compensation expense as a result of the exercise of stock options immediately prior to the closing of the Vineyard transaction, stock compensation related to the stock options granted to Vineyard employees, and the related tax expense. The pro forma net loss per share amounts also reflect the impact of the issuance of 518,000 shares in connection with the acquisition as if they were issued in January 2012.

	These adjustments are as follows (in thousands):

			Three Months Ended			Nine Months Ended
			September 30,			September 30,
			2013			2013
	Acquisition-related expenses for Vineyard		$	—		$	(1,026	)
	Intangible amortization			—			36
	Net change in stock compensation expense			—			(636	)
Decrease in deferred compensation expense			(1,468	)		(4,279	)
Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding			302			309

GOODWILL_AND_INTANGIBLE_ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Sep. 30, 2014
GOODWILL AND INTANGIBLE ASSETS [Abstract]	'
GOODWILL AND INTANGIBLE ASSETS	'
	6	GOODWILL AND INTANGIBLE ASSETS

	Changes in the carrying value of goodwill for the nine months ended September 30, 2014 were as follows (in thousands):

			Nine Months Ended
			September 30,
			2014
	Balance at December 31, 2013		$	12,326
	Impairment of goodwill			(10,840	)
	Translation adjustments			(526	)
	Balance at September 30, 2014		$	960

	The Company reviews its goodwill for impairment annually during the fourth quarter of the year or more frequently if events or circumstances indicates that an impairment loss may have occurred. The identification and measurement of goodwill impairment involves the estimation of fair value at a reporting unit level.

	During the third quarter of fiscal year 2014, the Company considered the effect of the economic environment in which its Network Application Visibility Library (“NAVL”) reporting unit markets its products and determined that sufficient indicators existed requiring it to perform an interim impairment review of NAVL goodwill. The indicators consisted primarily of: (1) decelerating revenue growth during the third quarter of fiscal year 2014 and a decline in forecasted revenue in future quarters, and (2) lower than anticipated total addressable market for NAVL products.

	The Company performed an impairment review for goodwill at the NAVL reporting unit level. In step one, the fair value of the NAVL reporting unit was compared to the carrying value. Based on this review, the Company determined that the carrying value exceeded the fair value indicating potential impairment. Therefore, the Company next performed step two, in which the fair value of the reporting unit was allocated to all of the assets and liabilities of the reporting unit on a fair value basis, including any unrecognized intangible assets, with any excess representing the implied fair value of goodwill. The fair value was determined using an income approach. Under the income approach, the present value of estimated future cash flows is determined based on management’s forecast of revenue growth rates and operating margins. As a result of reduced revenue growth rate assumptions associated with the impairment indicators noted above, the implied fair value of NAVL goodwill was determined to be zero. Therefore, the Company recorded an impairment charge for goodwill of $10.8 million during the third quarter of fiscal year 2014, 100% of the NAVL goodwill balance at September 30, 2014. The impairment charge is included in the Company’s consolidated statement of operations. The Company also recognized a deferred tax benefit of $0.1 million associated with the goodwill impairment charge.

	No indicators were present during the third quarter of 2014 that would suggest impairment of the Company’s remaining goodwill balance of $960,000, assigned to the Company’s PacketLogic reporting unit. The goodwill assigned to the Company’s PacketLogic reporting unit will be tested for impairment during the fourth quarter of 2014 in connection with the Company’s routine annual review of goodwill.

	The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset. Measurement of an impairment loss for long-lived assets is based on the amount by which the carrying value of the asset exceeds its fair value based on the discounted future cash flows.

	As a result of the indicators noted above, the Company also evaluated the long-lived assets within the NAVL reporting unit for impairment. Such assets include acquired intangible assets and property, plant and equipment. The asset group evaluated included the entire NAVL reporting unit. The Company determined that the sum of the undiscounted future cash flows of the NAVL reporting unit did not exceed the carrying value of NAVL assets, indicating potential impairment. As a result, the fair value was determined for NAVL long-lived assets using an income approach as described above, which was then compared to the assets’ relative carrying values. As a result of reduced revenue growth rate assumptions associated with the impairment indicators noted above, the Company determined that the fair value of the NAVL intangible assets was below their carrying value, resulting in a partial impairment of the NAVL intangible assets. The Company recorded impairment charges for the third quarter of fiscal year 2014 of $0.7 million related to developed technology and $0.8 million related to customer relationships. The impairment charges are included in the Company’s consolidated statement of operations.

	Intangible assets other than goodwill are amortized on a straight-line basis over their estimated remaining useful lives.

	The following table is a summary of acquired intangible assets with remaining net book values at September 30, 2014 and December 31, 2013 (in thousands, except weighted average remaining life):

			30-Sep-14
			Gross			Accumulated Amortization			Impairment Charge			Net		Weighted Average Remaining Life
			Carrying									Carrying
			Value									Value
	Developed technology		$	5,189		$	(1,794	)	$	(705	)	$	2,690		3.27
	Customer relationships			2,239			(774	)		(835	)		630		3.27
	Balance at September 30, 2014		$	7,428		$	(2,568	)	$	(1,540	)	$	3,320

			31-Dec-13
			Gross			Accumulated			Net			Weighted Average Remaining Life
			Carrying			Amortization			Carrying
			Value						Value
	Developed technology		$	5,446		$	(1,066	)	$	4,380			4.01
	Customer relationships			2,350			(460	)		1,890			4.01
	Balance at December 31, 2013		$	7,796		$	(1,526	)	$	6,270

	For each of the three and nine months ended September 30, 2014 and September 30, 2013, amortization expense of $0.3 million and $0.8 million, respectively, related to developed technology was recorded in product cost of sales. For the three and nine months ended September 30, 2014, amortization expense of $0.1 million and $0.3 million, respectively, related to customer relationships was recorded in operating expense. For the three and nine months ended September 30, 2013, amortization expense of $0.2 million and $0.4 million, respectively, related to customer relationships was recorded in operating expense.

	The changes in the carrying value of acquired intangible assets during the nine months ended September 30, 2014 were as follows (in thousands):

			Gross			Accumulated			Net
			Carrying			Amortization			Carrying
			Value						Value
	Balance at December 31, 2013		$	7,796		$	(1,526	)	$	6,270
	Impairment of purchased intangible assets			(1,540	)		—			(1,540	)
	Additions			—			(1,135	)		(1,135	)
	Translation adjustments			(368	)		93			(275	)
	Balance at September 30, 2014		$	5,888		$	(2,568	)	$	3,320

	The following table presents the estimated future amortization of intangible assets as of September 30, 2014 (in thousands):

	Fiscal Year		Amortization
	2014 (remaining three months)		$	253
	2015			1,015
	2016			1,015
2017			1,015
2018			22
Total		$	3,320

CERTAIN_FINANCIAL_STATEMENT_IN

CERTAIN FINANCIAL STATEMENT INFORMATION	9 Months Ended
CERTAIN FINANCIAL STATEMENT INFORMATION	Sep. 30, 2014
CERTAIN FINANCIAL STATEMENT INFORMATION [Abstract]	'
CERTAIN FINANCIAL STATEMENT INFORMATION	'
	7	CERTAIN FINANCIAL STATEMENT INFORMATION

	Inventories

	Inventories are stated at the lower of cost, which approximates actual costs on a first in, first out basis, or market. Inventories at September 30, 2014 and December 31, 2013 consisted of the following (in thousands):

			September 30,			December 31,
			2014			2013
	Finished goods		$	15,746		$	18,617
	Raw materials			171			219
	Inventories, net		$	15,917		$	18,836

	Property and Equipment

	The following is a summary of property and equipment at September 30, 2014 and December 31, 2013 (in thousands):

			September 30,			December 31,
			2014			2013
	Machinery and equipment		$	11,114		$	9,343
	Computer equipment			605			488
	Office furniture and equipment			411			387
	Leasehold improvements			568			539
	Software			293			326
	Accumulated depreciation			(5,388	)		(3,962	)
	Property and equipment, net		$	7,603		$	7,121

	Accrued Liabilities

	Accrued liabilities at September 30, 2014 and December 31, 2013 consisted of the following (in thousands):

			September 30,			December 31,
			2014			2013
	Payroll and related		$	3,036		$	3,179
	Sales commissions			928			1,608
	Warranty			87			131
	Audit and legal services			138			198
	Other			1,502			1,605
	Total accrued liabilities		$	5,691		$	6,721

	Warranty Reserve

	The Company warrants its products against material defects for a specific period of time, generally 12 months. The Company provides for the estimated future costs of warranty obligations in cost of sales when the related revenue is recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that the Company expects to incur to repair or replace product parts which fail while still under warranty. The amount of accrued estimated warranty costs is primarily based on current information on repair costs. The Company periodically reviews the accrued balances and updates the accrual based on historical warranty cost trends.

	The following table summarizes warranty reserve activity during the nine months ended September 30, 2014 and 2013 (in thousands):

			Nine Months Ended
			September 30,
			2014			2013
	Warranty accrual, beginning of period		$	131		$	406
	Provision for current period sales			54			—
	Changes in liability for pre-existing warranties			(20	)		(56	)
	Deductions for warranty claims processed during the period			(78	)		(116	)
	Warranty accrual, end of period		$	87		$	234

	Accumulated Other Comprehensive Loss

	The components of accumulated other comprehensive loss as of September 30, 2014 and December 31, 2013, net of taxes, were as follows (in thousands):

			Foreign Currency Translation Adjustments			Net Unrealized Gain (Loss) on Short-Term Investments			Total
	Accumulated other comprehensive loss as of December 31, 2013		$	(1,910	)	$	13		$	(1,897	)
	Other comprehensive gain (loss), net of tax			(969	)		10			(959	)
	Accumulated other comprehensive loss as of September 30, 2014		$	(2,879	)	$	23		$	(2,856	)

The Company did not have any reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2014. The Company did not have any other-than-temporary loss on its available-for-sale securities for all periods presented.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
STOCKHOLDERS' EQUITY	Sep. 30, 2014
STOCKHOLDERS' EQUITY [Abstract]	'
STOCKHOLDERS' EQUITY	'
	8	STOCKHOLDERS’ EQUITY

	Common Stock Transactions

	On January 9, 2013, the Company issued 825,060 unregistered shares with a value of $14.3 million, pursuant to the Company’s acquisition of Vineyard as part of the purchase consideration in exchange for 100% of the outstanding securities of Vineyard and deferred compensation to the founders of Vineyard. On February 13, 2013, the Company filed with the SEC a Registration Statement on Form S-3 covering the resale of these shares. The Registration Statement on Form S-3 was declared effective by the SEC on March 7, 2013. Pursuant to the Vineyard acquisition agreement, 518,000 shares were transferred to the former Vineyard shareholders at closing, with the remainder being held in escrow for a period of 12, 18 or 36 months from the closing of the acquisition. In January 2014, 178,536 shares were released from the escrow related to the retention agreements with Vineyard’s three founders after one year of continuous employment with the Company. In July 2014, 123,744 shares were released from escrow related to the resolution of certain contingencies. As of September 30, 2014, 5,084 shares remain in escrow.

	Stock Incentive Plans

	The Company’s 2007 Equity Incentive Plan, as amended (the “Plan”), provides for the grant of stock options, restricted stock awards and restricted stock unit awards to eligible employees, consultants and non-employee directors of the Company. As of September 30, 2014, 386,424 shares of the Company’s common stock were available for future grant under the Plan. On January 9, 2013, the Company granted to certain former Vineyard employees who became employees of the Company upon the closing of the Vineyard acquisition options to purchase an aggregate of 412,000 shares of the Company’s common stock. These options were granted outside of the Plan as inducements material to such employees joining the Company.

	The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2014 and 2013 (in thousands, except per share data):

			Nine Months Ended September 30,
			2014								2013
			Options				Weighted				Options				Weighted
							Average								Average
							Exercise								Exercise
							Price								Price
	Outstanding at the beginning of the period			1,824			$	15.07				1,332			$	14.65
	Granted			152				11.34				622				16.25
	Exercised			(62	)			5.67				(54	)			7.78
	Cancelled			(286	)			14.75				(240	)			18.67
	Outstanding at the end of the period			1,628			$	15.14				1,660			$	15.23
	Vested and expected to vest at the end of the period			1,532			$	15.1				1,555			$	15.08
	Exercisable at the end of the period			850			$	14.25				609			$	11.4

	As of September 30, 2014, the aggregate intrinsic value of the Company’s options outstanding, options vested and expected to vest and options exercisable each were $0.8 million. As of September 30, 2014, the weighted average remaining contractual life of options outstanding, options vested and expected to vest and options exercisable was 7.56 years, 7.48 years and 6.53 years, respectively. The total intrinsic value of options exercised during each of the three and nine months ended September 30, 2014 was $0.3 million. The total intrinsic value of options exercised during the three and nine months ended September 30, 2013 was $0.2 million and $0.4 million, respectively.

	The weighted average remaining contractual life and weighted average per share exercise price of options outstanding and of options exercisable as of September 30, 2014 were as follows (in thousands, except exercise prices and years):

					Options Outstanding												Options Exercisable
	Range of Exercise Prices				Number of Shares				Weighted Average Remaining Contractual Life (years)				Weighted Average Exercise Price				Number of Shares		Weighted Average Exercise Price
	$	4.30 – $5.70				132				5.43			$	5.08				129	$	5.07
		6.00 – 9.72				131				5.45				7.71				105		7.27
		9.76 – 14.49				509				9.32				13.63				210		13.66
		14.50 – 28.70				856				8.05				18.71				406		19.27
	$	4.30 – $28.70				1,628				7.56			$	15.14				850	$	14.25

	The following table summarizes the Company’s restricted stock award and restricted stock unit activity for the nine months ended September 30, 2014 and 2013 (in thousands, except per share data):

			Nine Months Ended September 30,
			2014								2013
			Awards				Weighted				Awards				Weighted
							Average								Average
							Grant Date								Grant Date
							Fair Value								Fair Value
	Unvested outstanding at the beginning of the period			302			$	16.63				253			$	15.79
	Granted			317				10.67				40				14.45
	Vested			(42	)			14.89				(18	)			19.05
	Cancelled			(19	)			13.08				(1	)			20.25
	Unvested outstanding at the end of the period			558			$	13.49				274			$	15.36

	The weighted average remaining contractual term for the unvested restricted stock awards and restricted stock units outstanding as of September 30, 2014 was 2.77 years.

NET_INCOME_LOSS_PER_SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
NET INCOME (LOSS) PER SHARE	Sep. 30, 2014
NET INCOME (LOSS) PER SHARE [Abstract]	'
NET INCOME (LOSS) PER SHARE	'
	9	NET INCOME (LOSS) PER SHARE

	Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur from common shares issuable upon the exercise of outstanding stock options or warrants and the vesting of restricted stock awards and restricted stock units, which are reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options or warrants, the amount of stock-based compensation cost for future services that the Company has not yet recognized, and the amount of tax benefit that would be recorded in additional paid-in capital upon exercise of options and warrants are assumed to be used to repurchase shares.

	The following table sets forth the computation of basic and diluted net loss per share and potential shares of common stock that are not included in the diluted net loss per share calculation because their effect is anti-dilutive (in thousands, except per share data):

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Numerator:
	Net loss		$	(15,712	)	$	(2,983	)	$	(23,096	)	$	(12,982	)

	Denominator:
	Weighted average common shares - basic			20,500			20,031			20,395			20,007
	Weighted average common shares - diluted			20,500			20,031			20,395			20,007

	Net loss per share:
	Basic		$	(0.77	)	$	(0.15	)	$	(1.13	)	$	(0.65	)
	Diluted		$	(0.77	)	$	(0.15	)	$	(1.13	)	$	(0.65	)

	Antidilutive securities:
	Options, restricted stock and restricted stock units			1,322			1,192			1,361			1,185

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
STOCK-BASED COMPENSATION	Sep. 30, 2014
STOCK-BASED COMPENSATION [Abstract]	'
STOCK-BASED COMPENSATION	'
	10	STOCK-BASED COMPENSATION

	The following table summarizes employee stock-based compensation expense, net of income tax, as it relates to the Company’s statement of operations for the three and nine months ended September 30, 2014 and 2013 (in thousands):

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Cost of goods sold		$	92		$	101		$	282		$	281
	Research and development			314			218			998			933
	Sales and marketing			443			385			1,249			1,348
	General and administrative			429			365			1,200			1,252
	Total stock-based compensation expense		$	1,278		$	1,069		$	3,729		$	3,814

	Stock-based compensation in the three and nine months ended September 30, 2013 includes a one-time $0.7 million charge associated with the acceleration of Vineyard option grants at the closing of the acquisition.

	No stock-based compensation related income tax benefits were recognized in any of the three or nine months ended September 30, 2014 or 2013 due to operating losses. No stock-based compensation has been capitalized in inventory due to the immateriality of such amounts.

	As of September 30, 2014, total unrecognized compensation cost related to unvested stock options was $6.2 million, net of estimated forfeitures, which is expected to be recognized over an estimated weighted average period of 2.56 years.

	As of September 30, 2014, total unrecognized compensation cost related to unvested restricted stock awards and restricted stock units was $5.0 million, net of estimated forfeitures, which is expected to be recognized over an estimated weighted average period of 2.77 years.

	The fair value of each option grant is estimated on the date of grant using the Black-Scholes option valuation model. The fair value of each restricted stock award and restricted stock unit is calculated based upon the closing stock price of the Company’s common stock on the date of grant. The expense for stock-based awards is recognized over the requisite service period using the straight-line attribution approach.

	The following assumptions were used in determining the fair value of stock options granted during the three and nine months ended September 30, 2014 and 2013:

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Expected term (years)			5.84			4.77			5.12			4.84
	Expected volatility			63.5	%		78.2	%		66.26	%		78.2	%
	Risk-free interest rate			1.8	%		1.43	%		1.62	%		0.92	%
	Expected dividend yield			0	%		0	%		0	%		0	%

	The weighted average grant date fair value of options granted during the nine months ended September 30, 2014 and 2013 was $5.54 and $8.71, respectively.

	The Company calculated the expected term of stock options granted during the applicable period using historical exercise data. The Company used the number of days between the grant and the exercise dates to calculate a weighted average of the holding periods for all awards (i.e., the average interval between the grant and exercise or post-vesting cancellation dates), adjusted as appropriate. Expected volatilities were estimated using the historical share price performance over a period equivalent to the expected term of the option. The risk-free interest rate for a period equivalent to the expected term of the option was extrapolated from the U.S. Treasury yield curve in effect at the time of the grant. The Company has never paid cash dividends and does not anticipate paying cash dividends in the foreseeable future.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	11	COMMITMENTS AND CONTINGENCIES

	Legal

	The Company is periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. The Company does not believe that any of its legal actions and claims will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or results of operations.

	Operating Leases

	The Company leases its operating and office facilities for various terms under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2024. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties. The leases provide for increases in future minimum annual rental payments based on defined increases which are generally meant to correlate with the Consumer Price Index, subject to certain minimum increases. Also, the lease agreements generally require the Company to pay executory costs (real estate taxes, insurance and repairs).

	As of September 30, 2014, future minimum lease payments due under operating leases were as follows (in thousands):

	Fiscal years ending December 31,		Amount
	2014 (remaining three months)		$	247
	2015			870
	2016			824
	2017			693
	2018			419
	Thereafter			1,433
	Total minimum lease payments		$	4,486










	Purchase Commitments

	The Company issues purchase orders to third-party suppliers that may not be cancelable. As of September 30, 2014, the Company had open non-cancelable purchase orders amounting to $7.7 million, primarily with the Company’s third-party suppliers. In addition, in October 2014, the Company issued a purchase order to one of its main hardware suppliers for $7.9 million. If certain shipment date milestones are not met, the Company may reduce the number of committed hardware orders.

	In March 2014, the Company entered into a lease agreement with B.C. Ltd, as landlord, relating to office space located in Kelowna, British Columbia. Tenant improvements were completed near the end of October 2014, and the Company is in the process of moving its Canadian offices to this new location. The Company accrued a liability of $0.6 million associated with the construction of the leasehold improvements beginning in the leasehold construction period of May 2014 to October 2014. Payments to reduce the liability will begin in November 2014.

	Concentrations

	For the three months ended September 30, 2014, one customer represented 37% of net revenue, with no other single customer accounting for more than 10% of net revenue. For the nine months ended September 30, 2014, one customer represented 11% of net revenue, with no other single customer accounting for more than 10% of net revenue.For the three months ended September 30, 2013, revenue from two customers represented 33% and 11% of net revenue, respectively, with no other single customer accounting for more than 10% of net revenue. For the nine months ended September 30, 2013, revenue from Shaw Communications, Inc. represented 13% of net revenue, and two other customers represented 13% and 11% of net revenue, respectively, with no other single customer accounting for more than 10% of net revenue.

	At September 30, 2014, accounts receivable from two customers represented 31% and 12% of total accounts receivable, with no other single customer accounting for more than 10% of the accounts receivable balance. At December 31, 2013, accounts receivable from one customer represented 32% of total accounts receivable, with no other single customer accounting for more than 10% of the accounts receivable balance. As of September 30, 2014 and December 31, 2013, 80% and 86%, respectively, of the Company’s total accounts receivable were due from customers outside the United States.

	Indemnification

	The Company generally agrees to indemnify customers against legal claims that the Company’s products infringe certain third party property rights. As of September 30, 2014, the Company had not been required to make any payments resulting from infringement claims asserted against customers and had not recorded any related reserves.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2014
INCOME TAXES [Abstract]	'
INCOME TAXES	'
	12	INCOME TAXES

	The Company's effective tax rate was 1% for the nine months ended September 30, 2014 and 12% for the nine months ended September 30, 2013. For the three and nine months ended September 30, 2014, the Company recorded an income tax benefit of $0.2 million and $0.3 million, respectively, on a loss before provision for income taxes of $15.9 million and $23.4 million, respectively. For the three and nine months ended September 30, 2013, the Company recorded an income tax benefit of $0.2 million and $1.7 million, respectively, on a loss before provision for income taxes of $3.2 million and $14.7 million, respectively. The effective tax rate for the nine months ended September 30, 2014 differs from the federal statutory tax rate as a result of the valuation allowance placed on the Canadian net deferred tax asset, state taxes, foreign withholding taxes, earnings taxed in foreign jurisdictions and unbenefited losses. The effective tax rate for the nine months ended September 30, 2013 differs from the federal statutory tax rate as a result of the amortization of acquired intangible assets, state taxes, earnings taxed in foreign jurisdictions and unbenefited losses.

	Since inception, the Company established a valuation allowance for its deferred tax assets in all jurisdictions except for the Canadian deferred tax assets. At September 30, 2014, the Company has placed a valuation allowance against the Canadian deferred tax assets in excess of its deferred tax liabilities.

	A valuation allowance is required to be established or maintained when it is more likely than not that all or a portion of deferred tax assets will not be realized. The Company will continue to reserve for substantially all net deferred tax assets until there is sufficient evidence to warrant reversal.

	The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2014, the Company had no accrued interest or penalties related to uncertain tax positions. The Company’s federal returns for the years ended 2010 through the current period and most state returns for the years ended 2009 through the current period remain open to examination. In addition, all of the net operating losses and research and development credit carryforwards that may be used in future years are still subject to adjustment. The Company is also subject to examinations in Australia, Canada, Japan, Singapore and Sweden beginning in 2006 through the current period.

	At September 30, 2014, the Company had $0.2 million of unrecognized tax benefits which would affect the Company’s effective tax rate if recognized. The Company does not anticipate that the total unrecognized tax benefits will change significantly over the next 12 months.

SEGMENT_INFORMATION

SEGMENT INFORMATION	9 Months Ended
SEGMENT INFORMATION	Sep. 30, 2014
SEGMENT INFORMATION [Abstract]	'
SEGMENT INFORMATION	'
	13	SEGMENT INFORMATION

	The Company operates in one business segment providing specialized products and related services that enable network operators to manage and control their networks. Sales for geographic regions are based upon the customer’s location. The location of long-lived assets is based on the physical location of the Company’s regional offices.

	The following are summaries of net sales by geographical region (in thousands):

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2014		2013		2014		2013
	Sales:
	Europe, Middle East and Africa		$	9,202	$	9,737	$	24,106	$	19,108
	United States			2,983		4,572		10,000		13,916
	Asia Pacific			3,061		5,316		11,549		11,918
	Canada and Latin America			863		1,708		5,603		8,401
	Total		$	16,109	$	21,333	$	51,258	$	53,343

	The following are summaries of property and equipment, net, by geographical region (in thousands):

			September 30,		December 31,
			2014		2013
	Property and equipment, net:
	United States		$	1,267	$	1,444
	Canada			1,803		1,019
	Europe			4,527		4,655
	Asia Pacific			6		3
	Total		$	7,603	$	7,121

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
Basis of Presentation	'
	Basis of Presentation

	Procera has prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the financial statements include all the normal and recurring adjustments that are necessary to fairly present the results of the interim periods presented. The interim results presented are not necessarily indicative of results for any subsequent interim period, the year ending December 31, 2014 or any other future period. The consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Procera’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 11, 2014.

	The condensed consolidated financial statements present the accounts of Procera and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated.

	During the quarter ended March 31, 2013, the Company identified immaterial errors in the consolidated financial statements for the year ended December 31, 2012, related to the recognition of revenue from a sale to a value added reseller, the accounting for inventory and general and administrative fee accruals. Based on a quantitative and qualitative analysis of the errors as required by authoritative guidance, management concluded that the errors had no material impact on any of the Company’s previously issued financial statements, are immaterial to the Company’s results for the first quarter of 2013 and full year 2013 results, and had no material effect on the trend of the Company’s financial results. As a result of the immaterial errors discussed above, the unaudited condensed consolidated financial statements for the nine months ended September 30, 2013 reflect the following immaterial adjustments: the reversal of a revenue deal resulting in a reduction of $0.6 million of revenue and a reduction of $0.2 million of cost of sales, inventory charges resulting in an increase of $0.4 million in cost of sales and additional general and administrative costs of $43,000.
Significant Accounting Policies	'
	Significant Accounting Policies

	The accounting and reporting policies of the Company conform to GAAP. There have been no significant changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2014 compared to what was previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 11, 2014.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements

	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, issued as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective beginning in fiscal year 2017 and can be adopted by the Company either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations, cash flows and financial position.

	In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply the existing guidance in ASC Topic No. 718, “Compensation – Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material effect on the Company’s consolidated financial statements or disclosures.

	In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements”, which provides new guidance related to the disclosures around going concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

CASH_EQUIVALENTS_AND_SHORTTERM1

CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables)	9 Months Ended
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables)	Sep. 30, 2014
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS [Abstract]	'
Summary of Cash Equivalents and Short-term Investments	'
	The following is a summary of cash equivalents and short-term investments by type of instrument at September 30, 2014 and December 31, 2013 (in thousands):

		30-Sep-14
		Amortized		Gross Unrealized					Fair
		Cost		Gains		Losses			Value
	Treasury and agency notes and bills	$	54,567	$	26	$	(4	)	$	54,589
	Corporate bonds		26,210		7		(8	)		26,209
	Commercial paper		9,120		3		—			9,123
	Money market funds		737		—		—			737
	Total investments	$	90,634	$	36	$	(12	)	$	90,658

	Reported as:
	Cash equivalents	$	2,737	$	—	$	—		$	2,737
	Short-term investments		87,897		36		(12	)		87,921
	Total	$	90,634	$	36	$	(12	)	$	90,658

		31-Dec-13
		Amortized		Gross Unrealized					Fair
		Cost		Gains		Losses			Value
	Money market funds	$	79,869	$	—	$	—		$	79,869
	Commercial paper		15,776		13		—			15,789
	Total investments	$	95,645	$	13	$	—		$	95,658

	Reported as:
	Cash equivalents	$	79,869	$	—	$	—		$	79,869
	Short-term investments		15,776		13		—			15,789
	Total	$	95,645	$	13	$	—		$	95,658

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Sep. 30, 2014
FAIR VALUE MEASUREMENTS [Abstract]	'
Fair Value Hierarchy for Financial Assets Measured at Fair Value on a Recurring Basis	'
	The following is a summary of cash equivalents and short-term investments by type of instrument as of September 30, 2014 and December 31, 2013, measured at fair value on a recurring basis (in thousands):

		30-Sep-14
		Level 1		Level 2		Level 3		Total
	Money market funds	$	737	$	—	$	—	$	737
	Treasury and agency notes and bills		—		54,589		—		54,589
	Corporate bonds		—		26,209		—		26,209
	Commercial paper		—		9,123		—		9,123
	Total assets measured at fair value	$	737	$	89,921	$	—	$	90,658

		31-Dec-13
		Level 1		Level 2		Level 3		Total
	Money market funds	$	79,869	$	—	$	—	$	79,869
	Commercial paper		—		15,789		—		15,789
	Total assets measured at fair value	$	79,869	$	15,789	$	—	$	95,658

ACQUISITIONS_Tables

ACQUISITIONS (Tables)	9 Months Ended
ACQUISITIONS (Tables)	Sep. 30, 2014
ACQUISITIONS [Abstract]	'
Net Assets and Liabilities Acquired	'
	The following table summarizes the net assets and liabilities acquired, including identifiable intangible assets, based on their respective fair values at the acquisition date (in thousands):

	Assets acquired
	Cash		$	822
	Accounts receivable			525
	Other current assets			2,095
	Identifiable intangible assets			8,460
	Goodwill (1)			12,346
	Other assets			303
	Total assets acquired			24,551
	Liabilities assumed
	Accounts payable and other accrued liabilities			420
	Deferred revenue			555
	Notes payable			511
	Deferred tax liability			2,141
	Total liabilities assumed			3,627
	Net assets acquired		$	20,924

		-1	The Company made an election under Section 338(g) of the Internal Revenue Code of 1986, as amended, which resulted in tax-deductible goodwill related to the Vineyard transaction. The Company estimated that the tax-deductible goodwill and intangibles resulting from the election will approximate $17.6 million, to be amortized for U.S. tax purposes over a 15 year period that began on January 1, 2014.
Intangible Assets Acquired	'
	The following table presents details of the intangible assets acquired in connection with the acquisition of Vineyard, which was completed during the first quarter of 2013 (in thousands, except years):

			Estimated Useful Life			Amount
			(in years)			Amount
	Developed technology			5		$	5,910
	Customer relationships			5			2,550
	Total					$	8,460
Pro Forma Information	'
	The pro forma results are for illustrative purposes only for the applicable period and do not purport to be indicative of the actual results that would have occurred had the transaction been completed as of the beginning of the period, nor are they indicative of results of operations that may occur in the future (in thousands, except per share amounts):

			Three Months Ended			Nine Months Ended
			September 30,			September 30,
			2013			2013
	Pro forma revenues		$	21,440		$	54,474
	Pro forma net loss			(1,408	)		(6,393	)
	Basic and diluted loss per share		$	(0.07	)	$	(0.31	)
Pro Forma Adjustments	'
	These adjustments are as follows (in thousands):

			Three Months Ended			Nine Months Ended
			September 30,			September 30,
			2013			2013
	Acquisition-related expenses for Vineyard		$	—		$	(1,026	)
	Intangible amortization			—			36
	Net change in stock compensation expense			—			(636	)
	Decrease in deferred compensation expense			(1,468	)		(4,279	)
	Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding			302			309

GOODWILL_AND_INTANGIBLE_ASSETS1

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Sep. 30, 2014
GOODWILL AND INTANGIBLE ASSETS [Abstract]	'
Changes in the Carrying Value of Goodwill	'
	Changes in the carrying value of goodwill for the nine months ended September 30, 2014 were as follows (in thousands):

		Nine Months Ended
		September 30,
		2014
	Balance at December 31, 2013	$	12,326
	Impairment of goodwill		(10,840	)
	Translation adjustments		(526	)
	Balance at September 30, 2014	$	960
Acquired Intangible Assets	'
	The following table is a summary of acquired intangible assets with remaining net book values at September 30, 2014 and December 31, 2013 (in thousands, except weighted average remaining life):

		30-Sep-14
		Gross			Accumulated Amortization			Impairment Charge			Net		Weighted Average Remaining Life
		Carrying									Carrying
		Value									Value
	Developed technology	$	5,189		$	(1,794	)	$	(705	)	$	2,690		3.27
	Customer relationships		2,239			(774	)		(835	)		630		3.27
	Balance at September 30, 2014	$	7,428		$	(2,568	)	$	(1,540	)	$	3,320

		31-Dec-13
		Gross			Accumulated			Net			Weighted Average Remaining Life
		Carrying			Amortization			Carrying
		Value						Value
	Developed technology	$	5,446		$	(1,066	)	$	4,380			4.01
	Customer relationships		2,350			(460	)		1,890			4.01
	Balance at December 31, 2013	$	7,796		$	(1,526	)	$	6,270
Carrying Value of Acquired Intangible Assets	'
	The changes in the carrying value of acquired intangible assets during the nine months ended September 30, 2014 were as follows (in thousands):

		Gross			Accumulated			Net
		Carrying			Amortization			Carrying
		Value						Value
	Balance at December 31, 2013	$	7,796		$	(1,526	)	$	6,270
	Impairment of purchased intangible assets		(1,540	)		—			(1,540	)
	Additions		—			(1,135	)		(1,135	)
	Translation adjustments		(368	)		93			(275	)
	Balance at September 30, 2014	$	5,888		$	(2,568	)	$	3,320
Finite-Lived Intangible Assets, Future Amortization Expense	'
	The following table presents the estimated future amortization of intangible assets as of September 30, 2014 (in thousands):

	Fiscal Year	Amortization
	2014 (remaining three months)	$	253
	2015		1,015
	2016		1,015
	2017		1,015
	2018		22
	Total	$	3,320

CERTAIN_FINANCIAL_STATEMENT_IN1

CERTAIN FINANCIAL STATEMENT INFORMATION (Tables)	9 Months Ended
CERTAIN FINANCIAL STATEMENT INFORMATION (Tables)	Sep. 30, 2014
CERTAIN FINANCIAL STATEMENT INFORMATION [Abstract]	'
Components of Inventories	'
	Inventories are stated at the lower of cost, which approximates actual costs on a first in, first out basis, or market. Inventories at September 30, 2014 and December 31, 2013 consisted of the following (in thousands):

		September 30,			December 31,
		2014			2013
	Finished goods	$	15,746		$	18,617
	Raw materials		171			219
	Inventories, net	$	15,917		$	18,836
Property and Equipment	'
	The following is a summary of property and equipment at September 30, 2014 and December 31, 2013 (in thousands):

		September 30,			December 31,
		2014			2013
	Machinery and equipment	$	11,114		$	9,343
	Computer equipment		605			488
	Office furniture and equipment		411			387
	Leasehold improvements		568			539
	Software		293			326
	Accumulated depreciation		(5,388	)		(3,962	)
	Property and equipment, net	$	7,603		$	7,121
Accrued Liabilities	'
	Accrued liabilities at September 30, 2014 and December 31, 2013 consisted of the following (in thousands):

		September 30,			December 31,
		2014			2013
	Payroll and related	$	3,036		$	3,179
	Sales commissions		928			1,608
	Warranty		87			131
	Audit and legal services		138			198
	Other		1,502			1,605
	Total accrued liabilities	$	5,691		$	6,721
Warranty Reserve Activity	'
	The following table summarizes warranty reserve activity during the nine months ended September 30, 2014 and 2013 (in thousands):

		Nine Months Ended
		September 30,
		2014			2013
	Warranty accrual, beginning of period	$	131		$	406
	Provision for current period sales		54			—
	Changes in liability for pre-existing warranties		(20	)		(56	)
	Deductions for warranty claims processed during the period		(78	)		(116	)
	Warranty accrual, end of period	$	87		$	234
Components of Accumulated Other Comprehensive Income (Loss)	'
	The components of accumulated other comprehensive loss as of September 30, 2014 and December 31, 2013, net of taxes, were as follows (in thousands):

		Foreign Currency Translation Adjustments			Net Unrealized Gain (Loss) on Short-Term Investments			Total
	Accumulated other comprehensive loss as of December 31, 2013	$	(1,910	)	$	13		$	(1,897	)
	Other comprehensive gain (loss), net of tax		(969	)		10			(959	)
	Accumulated other comprehensive loss as of September 30, 2014	$	(2,879	)	$	23		$	(2,856	)

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
STOCKHOLDERS' EQUITY (Tables)	Sep. 30, 2014
STOCKHOLDERS' EQUITY [Abstract]	'
Summary of Stock Option Activity	'
	The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2014 and 2013 (in thousands, except per share data):

			Nine Months Ended September 30,
			2014								2013
			Options				Weighted				Options				Weighted
							Average								Average
							Exercise								Exercise
							Price								Price
	Outstanding at the beginning of the period			1,824			$	15.07				1,332			$	14.65
	Granted			152				11.34				622				16.25
	Exercised			(62	)			5.67				(54	)			7.78
	Cancelled			(286	)			14.75				(240	)			18.67
	Outstanding at the end of the period			1,628			$	15.14				1,660			$	15.23
	Vested and expected to vest at the end of the period			1,532			$	15.1				1,555			$	15.08
	Exercisable at the end of the period			850			$	14.25				609			$	11.4
Weighted Average Contractual Life and Per Share Exercise Price of Options Outstanding and Exercisable	'
	The weighted average remaining contractual life and weighted average per share exercise price of options outstanding and of options exercisable as of September 30, 2014 were as follows (in thousands, except exercise prices and years):

					Options Outstanding												Options Exercisable
	Range of Exercise Prices				Number of Shares				Weighted Average Remaining Contractual Life (years)				Weighted Average Exercise Price				Number of Shares		Weighted Average Exercise Price
	$	4.30 – $5.70				132				5.43			$	5.08				129	$	5.07
		6.00 – 9.72				131				5.45				7.71				105		7.27
		9.76 – 14.49				509				9.32				13.63				210		13.66
		14.50 – 28.70				856				8.05				18.71				406		19.27
	$	4.30 – $28.70				1,628				7.56			$	15.14				850	$	14.25
Summary of Restricted Stock Awards Activity	'
	The following table summarizes the Company’s restricted stock award and restricted stock unit activity for the nine months ended September 30, 2014 and 2013 (in thousands, except per share data):

			Nine Months Ended September 30,
			2014								2013
			Awards				Weighted				Awards				Weighted
							Average								Average
							Grant Date								Grant Date
							Fair Value								Fair Value
	Unvested outstanding at the beginning of the period			302			$	16.63				253			$	15.79
	Granted			317				10.67				40				14.45
	Vested			(42	)			14.89				(18	)			19.05
	Cancelled			(19	)			13.08				(1	)			20.25
	Unvested outstanding at the end of the period			558			$	13.49				274			$	15.36

NET_INCOME_LOSS_PER_SHARE_Tabl

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
NET INCOME (LOSS) PER SHARE (Tables)	Sep. 30, 2014
NET INCOME (LOSS) PER SHARE [Abstract]	'
Computation of Basic and Diluted Net Income (Loss) per Share	'
	The following table sets forth the computation of basic and diluted net loss per share and potential shares of common stock that are not included in the diluted net loss per share calculation because their effect is anti-dilutive (in thousands, except per share data):

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Numerator:
	Net loss	$	(15,712	)	$	(2,983	)	$	(23,096	)	$	(12,982	)

	Denominator:
	Weighted average common shares - basic		20,500			20,031			20,395			20,007
	Weighted average common shares - diluted		20,500			20,031			20,395			20,007

	Net loss per share:
	Basic	$	(0.77	)	$	(0.15	)	$	(1.13	)	$	(0.65	)
	Diluted	$	(0.77	)	$	(0.15	)	$	(1.13	)	$	(0.65	)

	Antidilutive securities:
	Options, restricted stock and restricted stock units		1,322			1,192			1,361			1,185

STOCKBASED_COMPENSATION_Tables

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
STOCK-BASED COMPENSATION (Tables)	Sep. 30, 2014
STOCK-BASED COMPENSATION [Abstract]	'
Employee Stock-based Compensation Expense	'
	The following table summarizes employee stock-based compensation expense, net of income tax, as it relates to the Company’s statement of operations for the three and nine months ended September 30, 2014 and 2013 (in thousands):

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Cost of goods sold	$	92		$	101		$	282		$	281
	Research and development		314			218			998			933
	Sales and marketing		443			385			1,249			1,348
	General and administrative		429			365			1,200			1,252
	Total stock-based compensation expense	$	1,278		$	1,069		$	3,729		$	3,814
Stock-based Compensation, Valuation Assumptions	'
	The following assumptions were used in determining the fair value of stock options granted during the three and nine months ended September 30, 2014 and 2013:

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Expected term (years)		5.84			4.77			5.12			4.84
	Expected volatility		63.5	%		78.2	%		66.26	%		78.2	%
	Risk-free interest rate		1.8	%		1.43	%		1.62	%		0.92	%
	Expected dividend yield		0	%		0	%		0	%		0	%

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
Future Minimum Rental Payments for Operating Leases	'
	As of September 30, 2014, future minimum lease payments due under operating leases were as follows (in thousands):

	Fiscal years ending December 31,	Amount
	2014 (remaining three months)	$	247
	2015		870
	2016		824
	2017		693
	2018		419
	Thereafter		1,433
	Total minimum lease payments	$	4,486

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	9 Months Ended
SEGMENT INFORMATION (Tables)	Sep. 30, 2014
SEGMENT INFORMATION [Abstract]	'
Revenue from External Customers by Geographic Region	'
	The following are summaries of net sales by geographical region (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
	Sales:
	Europe, Middle East and Africa	$	9,202	$	9,737	$	24,106	$	19,108
	United States		2,983		4,572		10,000		13,916
	Asia Pacific		3,061		5,316		11,549		11,918
	Canada and Latin America		863		1,708		5,603		8,401
	Total	$	16,109	$	21,333	$	51,258	$	53,343
Property and Equipment, Net, by Geographic Region	'
	The following are summaries of property and equipment, net, by geographical region (in thousands):

		September 30,		December 31,
		2014		2013
	Property and equipment, net:
	United States	$	1,267	$	1,444
	Canada		1,803		1,019
	Europe		4,527		4,655
	Asia Pacific		6		3
	Total	$	7,603	$	7,121

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Immaterial Adjustments to Prior Periods [Member], USD $)	9 Months Ended
	Sep. 30, 2013
Revenue [Member]	'
Immaterial error corrections	($600,000)
Cost of Sales [Member]	'
Immaterial error corrections	-200,000
Inventory Charges [Member]	'
Immaterial error corrections	400,000
General and Administrative Costs [Member]	'
Immaterial error corrections	$43,000

CASH_EQUIVALENTS_AND_SHORTTERM2

CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Available for Sale Securities [Line Items]	'	'
Amortized Cost	$90,634,000	$95,645,000
Gross Unrealized Gains	36,000	13,000
Gross Unrealized Losses	-12,000	0
Fair Value	90,658,000	95,658,000
Investments with maturity of greater than one year	22,000,000	'
Cash Equivalents [Member]	'	'
Available for Sale Securities [Line Items]	'	'
Amortized Cost	2,737,000	79,869,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	2,737,000	79,869,000
Short-Term Investments [Member]	'	'
Available for Sale Securities [Line Items]	'	'
Amortized Cost	87,897,000	15,776,000
Gross Unrealized Gains	36,000	13,000
Gross Unrealized Losses	-12,000	0
Fair Value	87,921,000	15,789,000
Treasury and Agency Notes and Bills [Member]	'	'
Available for Sale Securities [Line Items]	'	'
Amortized Cost	54,567,000	'
Gross Unrealized Gains	26,000	'
Gross Unrealized Losses	-4,000	'
Fair Value	54,589,000	'
Corporate Bonds [Member]	'	'
Available for Sale Securities [Line Items]	'	'
Amortized Cost	26,210,000	'
Gross Unrealized Gains	7,000	'
Gross Unrealized Losses	-8,000	'
Fair Value	26,209,000	'
Commercial Paper [Member]	'	'
Available for Sale Securities [Line Items]	'	'
Amortized Cost	9,120,000	15,776,000
Gross Unrealized Gains	3,000	13,000
Gross Unrealized Losses	0	0
Fair Value	9,123,000	15,789,000
Money Market Funds [Member]	'	'
Available for Sale Securities [Line Items]	'	'
Amortized Cost	737,000	79,869,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$737,000	$79,869,000

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (Recurring [Member], USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value Assets Measured On Recurring Basis [Line Items]	'	'
Money market funds	$737	$79,869
Treasury and agency notes and bills	54,589	'
Corporate bonds	26,209	'
Commercial paper	9,123	15,789
Total assets measured at fair value	90,658	95,658
Level 1 [Member]	'	'
Fair Value Assets Measured On Recurring Basis [Line Items]	'	'
Money market funds	737	79,869
Treasury and agency notes and bills	0	'
Corporate bonds	0	'
Commercial paper	0	0
Total assets measured at fair value	737	79,869
Level 2 [Member]	'	'
Fair Value Assets Measured On Recurring Basis [Line Items]	'	'
Money market funds	0	0
Treasury and agency notes and bills	54,589	'
Corporate bonds	26,209	'
Commercial paper	9,123	15,789
Total assets measured at fair value	89,921	15,789
Level 3 [Member]	'	'
Fair Value Assets Measured On Recurring Basis [Line Items]	'	'
Money market funds	0	0
Treasury and agency notes and bills	0	'
Corporate bonds	0	'
Commercial paper	0	0
Total assets measured at fair value	$0	$0

ACQUISITIONS_Details

ACQUISITIONS (Details) (USD $)

0 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

0 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

Jan. 09, 2013

Sep. 30, 2014

Sep. 30, 2013

Mar. 31, 2013

Mar. 31, 2012

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 01, 2013

Jan. 09, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Jul. 31, 2014

Jan. 09, 2013

Jul. 31, 2014

Jan. 09, 2013

Founder

Acquisition-related Costs [Member]

Developed Technology [Member]

Customer Relationships [Member]

Vineyard [Member]

Founder

Maximum [Member]

Weighted Average [Member]

Common Stock [Member]

Cash [Member]

Business Acquisition [Line Items]

Cash consideration for acquisition

$9,800,000

Common stock issued in business acquisition, value

11,100,000

Percentage of interest acquired (in hundredths)

100.00%

Escrow deposit

1,900,000

2,000,000

Period funds will be held in escrow

'36 months

'18 months

Funds released from escrow

1,800,000

1,900,000

Deferred compensation

5,900,000

3,200,000

2,700,000

Founders of acquisition

Compensation expense

1,500,000

100,000

4,300,000

Revenue contributed by acquisition

1,200,000

800,000

3,300,000

1,700,000

Net loss contributed by acquisition

12,900,000

600,000

13,600,000

1,700,000

Impairment charge recorded

12,380,000

12,400,000

Acquisition-related expenses

1,000,000

Tax deductible from goodwill and intangibles

17,600,000

Amortization period of tax deductible from goodwill and intangibles

'15 years

Assets acquired [Abstract]

Cash

822,000

Accounts receivable

525,000

Other current assets

2,095,000

Identifiable intangible assets

8,460,000

Goodwill

12,346,000

[1]

960,000

12,326,000

[2]

Other assets

303,000

Total assets acquired

24,551,000

Liabilities assumed [Abstract]

Accounts payable and other accrued liabilities

420,000

Deferred revenue

555,000

Notes payable

511,000

Deferred tax liability

2,141,000

Total liabilities assumed

3,627,000

Net assets acquired

20,924,000

Acquired Finite-Lived Intangible Assets [Line Items]

Estimated Useful Life

'5 years

'3 years 3 months 7 days

'4 years 0 months 4 days

'5 years

'3 years 3 months 7 days

'4 years 0 months 4 days

Amount

8,460,000

5,910,000

2,550,000

Business Acquisition, Pro Forma Information [Abstract]

Pro forma revenues

21,440,000

54,474,000

Pro forma net loss

-1,408,000

-6,393,000

Basic and diluted loss per share (in dollars per share)

($0.07)

($0.31)

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Shares issued (in shares)

518,000

825,060

Acquisition-related expenses for Vineyard

-1,026,000

Intangible amortization

1,135,000

1,179,000

36,000

300,000

800,000

100,000

200,000

300,000

400,000

Net change in stock compensation expense

-636,000

Decrease in deferred compensation expense

($1,468,000)

($4,279,000)

Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding (in shares)

302,000

309,000

[1]

The Company made an election under Section 338(g) of the Internal Revenue Code of 1986, as amended, which resulted in tax-deductible goodwill related to the Vineyard transaction. The Company estimated that the tax-deductible goodwill and intangibles resulting from the election will approximate $17.6 million, to be amortized for U.S. tax purposes over a 15 year period that began on January 1, 2014.

[2]

Amounts have been derived from the December 31, 2013 audited consolidated financial statements.

GOODWILL_AND_INTANGIBLE_ASSETS2

GOODWILL AND INTANGIBLE ASSETS (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Jan. 09, 2013

Sep. 30, 2014

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Developed Technology [Member]

Customer Relationships [Member]

Goodwill [Roll Forward]

Balance, December 31, 2013

$12,326,000

[1]

$12,346,000

[2]

Impairment of goodwill

-10,840,000

Translation adjustments

-526,000

Balance, June 30, 2014

960,000

12,346,000

[2]

Percentage of goodwill balance impaired (in hundredths)

100.00%

Deferred tax benefit associated with goodwill impairment charge

100,000

Acquired Finite-Lived Intangible Assets [Line Items]

Gross Carrying Value

7,428,000

7,796,000

5,189,000

5,446,000

2,239,000

2,350,000

Accumulated amortization

-2,568,000

-1,526,000

1,794,000

-1,066,000

-774,000

-460,000

Impairment Charge

-1,540,000

-705,000

-835,000

Net Carrying Value

3,320,000

6,270,000

2,690,000

4,380,000

630,000

1,890,000

Weighted Average Remaining Life

'5 years

'3 years 3 months 7 days

'4 years 0 months 4 days

'5 years

'3 years 3 months 7 days

'4 years 0 months 4 days

Amortization of acquired intangible assets

1,135,000

1,179,000

300,000

800,000

100,000

200,000

300,000

400,000

Finite-lived Intangible Assets [Roll Forward]

Gross Carrying Value, beginning balance

7,796,000

Impairment of purchased intangible assets

-1,540,000

-705,000

-835,000

Additions

8,460,000

5,910,000

2,550,000

Translation adjustments

-368,000

Gross Carrying Value, ending balance

5,888,000

Impairment of purchased intangible assets

Additions

-1,135,000

Translation adjustments

93,000

Impairment of purchased intangible assets

-1,540,000

Additions

-1,135,000

Translation adjustments

-275,000

Estimated Future Amortization of Intangible Assets [Abstract]

2014 (remaining three months)

253,000

2015

1,015,000

2016

1,015,000

2017

1,015,000

2018

$22,000

[1]

Amounts have been derived from the December 31, 2013 audited consolidated financial statements.

[2]

CERTAIN_FINANCIAL_STATEMENT_IN2

CERTAIN FINANCIAL STATEMENT INFORMATION (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014		Sep. 30, 2013	Dec. 31, 2013
Inventory [Abstract]	'		'	'
Finished goods	$15,746		'	$18,617
Raw materials	171		'	219
Inventory, net	15,917		'	18,836	[1]
Property, Plant and Equipment [Line Items]	'		'	'
Accumulated depreciation	-5,388		'	-3,962
Property and equipment, net	7,603		'	7,121	[1]
Accrued liabilities [Abstract]	'		'	'
Payroll and related	3,036		'	3,179
Sales commissions	928		'	1,608
Warranty	87		'	131
Audit and legal services	138		'	198
Other	1,502		'	1,605
Total accrued liabilities	5,691		'	6,721	[1]
Warranty reserve [Abstract]	'		'	'
Warranty accrual, beginning of period	131		406	'
Provision for current period sales	54		0	'
Changes in liability for pre-existing warranties	-20		-56	'
Deductions for warranty claims processed during the period	-78		-116	'
Warranty accrual, end of period	87		234	'
Accumulated Other Comprehensive Income Loss [Line Items]	'		'	'
Accumulated other comprehensive loss as of December 31, 2013	-1,897	[1]	'	'
Other comprehensive gain (loss), net of tax	-959		'	'
Accumulated other comprehensive loss as of September 30, 2014	-2,856		'	'
Foreign Currency Translation Adjustments [Member]	'		'	'
Accumulated Other Comprehensive Income Loss [Line Items]	'		'	'
Accumulated other comprehensive loss as of December 31, 2013	-1,910		'	'
Other comprehensive gain (loss), net of tax	-969		'	'
Accumulated other comprehensive loss as of September 30, 2014	-2,879		'	'
Net Unrealized Gain (Loss) on Short-Term Investments [Member]	'		'	'
Accumulated Other Comprehensive Income Loss [Line Items]	'		'	'
Accumulated other comprehensive loss as of December 31, 2013	13		'	'
Other comprehensive gain (loss), net of tax	10		'	'
Accumulated other comprehensive loss as of September 30, 2014	23		'	'
Machinery and equipment [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Property and equipment, gross	11,114		'	9,343
Computer equipment [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Property and equipment, gross	605		'	488
Office furniture and equipment [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Property and equipment, gross	411		'	387
Leasehold improvements [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Property and equipment, gross	568		'	539
Software [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Property and equipment, gross	$293		'	$326

[1]	Amounts have been derived from the December 31, 2013 audited consolidated financial statements.

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended	0 Months Ended	9 Months Ended
In Millions, except Share data, unless otherwise specified	Jul. 31, 2014	Mar. 31, 2013	Mar. 31, 2012	Sep. 30, 2014	Jan. 09, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
				Founder	Vineyard [Member]	Vineyard [Member]	Vineyard [Member]	Vineyard [Member]
					Founder	Holding period one [Member]	Holding period two [Member]	Holding period three [Member]
Business Acquisition [Line Items]	'	'	'	'	'	'	'	'
Business acquisition equity interest issued (in shares)	'	518,000	518,000	'	825,060	'	'	'
Business acquisition value assigned to shares issued	'	'	'	'	$14.30	'	'	'
Percentage of interest acquired (in hundredths)	'	'	'	'	100.00%	'	'	'
Period shares will be held in escrow	'	'	'	'	'	'12 months	'18 months	'36 months
Shares release from escrow (in shares)	123,744	'	'	302,280	'	'	'	'
Founders of acquisition	'	'	'	3	3	'	'	'
Shares remaining in escrow (in shares)	'	'	'	5,084	'	'	'	'

STOCKHOLDERS_EQUITY_Sharebased

STOCKHOLDERS' EQUITY, Share-based Compensation Arrangements (Details) (USD $)

9 Months Ended

3 Months Ended

9 Months Ended

0 Months Ended

In Millions, except Share data, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Jan. 09, 2013

Price Range 4.30 to 5.70 [Member]

Price Range 6.00 to 9.72 [Member]

Price Range 9.76 to 14.49 [Member]

Price Range 14.50 to 28.70 [Member]

Price Range 4.30 to 28.70 [Member]

Unvested Restricted Stock Awards and Restricted Stock Units [Member]

Stock Options [Member]

2007 Equity Incentive Plan [Member]

Vineyard [Member]

Stock Incentive Plans [Abstract]

Number of shares available for future grant under the plan (in shares)

386,424

Options [Abstract]

Outstanding at the beginning of the year (in shares)

1,824,000

1,332,000

Granted (in shares)

152,000

622,000

412,000

Exercised (in shares)

-62,000

-54,000

Cancelled (in shares)

-286,000

-240,000

Outstanding at the end of the year (in shares)

1,628,000

1,660,000

1,628,000

1,660,000

Vested and expected to vest at the end of the year (in shares)

1,532,000

1,555,000

1,532,000

1,555,000

Exercisable at the end of the year (in shares)

850,000

609,000

850,000

609,000

Weighted Average Exercise Price [Abstract]

Outstanding at the beginning of the year (in dollars per share)

$15.07

$14.65

Granted (in dollars per share)

$11.34

$16.25

Exercised (in dollars per share)

$5.67

$7.78

Cancelled (in dollars per share)

$14.75

$18.67

Outstanding at the end of the period (in dollars per share)

$15.14

$15.23

$15.14

$15.23

Vested and expected to vest at the end of the year (in dollars per share)

$15.10

$15.08

$15.10

$15.08

Exercisable at the end of the year (in dollars per share)

$14.25

$11.40

$14.25

$11.40

Aggregate intrinsic value of options outstanding

$0.80

Aggregate intrinsic value of options vested and expected to vest

0.8

Aggregate intrinsic value of options exercisable

0.8

Weighted average remaining contractual term, options outstanding

'7 years 6 months 22 days

Weighted average remaining contractual term, expected to vest

'7 years 5 months 23 days

Weighted average remaining contractual term, options exercisable

'6 years 6 months 11 days

Intrinsic value of options exercised during the period

$0.30

$0.20

$0.30

$0.40

Awards [Abstract]

Outstanding at the beginning of the year (in shares)

302,000

253,000

Granted (in shares)

317,000

40,000

Vested (in shares)

-42,000

-18,000

Cancelled (in shares)

-19,000

-1,000

Outstanding at the end of the year (in shares)

558,000

274,000

Weighted Average Grant Date Fair Value [Abstract]

Outstanding at the beginning of the year (in dollars per share)

$16.63

$15.79

Granted (in dollars per share)

$10.67

$14.45

Vested (in dollars per share)

$14.89

$19.05

Cancelled (in dollars per share)

$13.08

$20.25

Outstanding at the end of the year (in dollars per share)

$13.49

$15.36

Weighted-average remaining contractual term, restricted stock awards outstanding

'2 years 9 months 7 days

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]

Exercise price range, lower limit (in dollars per share)

$4.30

$9.76

$14.50

$4.30

Exercise price range, upper limit (in dollars per share)

$5.70

$9.72

$14.49

$28.70

Options, outstanding and exercisable at end of period [Abstract]

Outstanding options (in shares)

132,000

131,000

509,000

856,000

1,628,000

Outstanding options, weighted average remaining contractual term

'5 years 5 months 5 days

'5 years 5 months 12 days

'9 years 3 months 25 days

'8 years 0 months 18 days

'7 years 6 months 22 days

Outstanding options, weighted average exercise price (in dollars per share)

$5.08

$7.71

$13.63

$18.71

$15.14

Exercisable options (in shares)

129,000

105,000

210,000

406,000

850,000

Exercisable options, weighted average exercise price (in dollars per share)

$5.07

$7.27

$13.66

$19.27

$14.25

NET_INCOME_LOSS_PER_SHARE_Deta

NET INCOME (LOSS) PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator [Abstract]	'	'	'	'
Net loss	($15,712)	($2,983)	($23,096)	($12,982)
Denominator [Abstract]	'	'	'	'
Weighted average common shares - basic (in shares)	20,500	20,031	20,395	20,007
Weighted average common shares - diluted (in shares)	20,500	20,031	20,395	20,007
Net loss per share [Abstract]	'	'	'	'
Basic (in dollars per share)	($0.77)	($0.15)	($1.13)	($0.65)
Diluted (in dollars per share)	($0.77)	($0.15)	($1.13)	($0.65)
Options, restricted stock and restricted stock units [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total anti-dilutive securities (in shares)	1,322	1,192	1,361	1,185

STOCKBASED_COMPENSATION_Detail

STOCK-BASED COMPENSATION (Details) (USD $)	3 Months Ended		9 Months Ended
STOCK-BASED COMPENSATION (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$1,278,000	$1,069,000	$3,729,000	$3,814,000
Unrecognized compensation costs related to unvested stock options	6,200,000	'	6,200,000	'
Unrecognized compensation cost related to unvested restricted stock awards and restricted stock units	5,000,000	'	5,000,000	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]	'	'	'	'
Expected term	'5 years 10 months 2 days	'4 years 9 months 7 days	'5 years 1 month 13 days	'4 years 10 months 2 days
Expected volatility (in hundredths)	63.50%	78.20%	66.26%	78.20%
Risk-free interest rate (in hundredths)	1.80%	1.43%	1.62%	0.92%
Expected dividend yield (in hundredths)	0.00%	0.00%	0.00%	0.00%
Weighted average grant date fair value (in dollars per share)	'	'	$5.54	$8.71
Unvested Restricted Stock Awards and Restricted Stock Units [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Period for recognition of unrecognized costs	'	'	'2 years 9 months 7 days	'
Stock Options [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Period for recognition of unrecognized costs	'	'	'2 years 6 months 22 days	'
Vineyard [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Charge associated with acceleration of option grants	'	700,000	'	700,000
Cost of goods sold [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	92,000	101,000	282,000	281,000
Research and development [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	314,000	218,000	998,000	933,000
Sales and marketing [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	443,000	385,000	1,249,000	1,348,000
General and administrative [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$429,000	$365,000	$1,200,000	$1,252,000

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Oct. 31, 2014

Net Revenues [Member]

Accounts Receivable [Member]

Shaw Communications, Inc. [Member]

Customer One [Member]

Customer Two [Member]

Customers outside the United States [Member]

Subsequent Event [Member]

Net Revenues [Member]

Accounts Receivable [Member]

Net Revenues [Member]

Accounts Receivable [Member]

Operating Leases [Abstract]

Lease expiration date

31-Dec-24

Future minimum payments due [Abstract]

2014 (remaining three months)

$247,000

2015

870,000

2016

824,000

2017

693,000

2018

419,000

Thereafter

1,433,000

Total minimum lease payments

4,486,000

Purchase Commitments [Abstract]

Non-cancelable purchase orders

7,700,000

7,900,000

Liability associated with construction of the leasehold improvements

$600,000

Concentration Risk [Line Items]

Concentration Risk, Percentage (in hundredths)

13.00%

37.00%

33.00%

11.00%

13.00%

31.00%

32.00%

11.00%

12.00%

80.00%

86.00%

Percentage of net revenue from no other single customer (in hundredths)

10.00%

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended		9 Months Ended
INCOME TAXES (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
INCOME TAXES [Abstract]	'	'	'	'
Effective tax rate (in hundredths)	'	'	1.00%	12.00%
Income tax provision/(benefit)	($160,000)	($205,000)	($281,000)	($1,688,000)
Loss before provision for income taxes	-15,872,000	-3,188,000	-23,377,000	-14,670,000
Amounts accrued for interest or penalties related to unrecognized tax benefits	0	'	0	'
Unrecognized tax benefits would affect effective tax rate	$200,000	'	$200,000	'

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
	Sep. 30, 2014	Sep. 30, 2013	Segment	Sep. 30, 2013	Dec. 31, 2013
SEGMENT INFORMATION [Abstract]	'	'	'	'	'
Number of operating segments	'	'	1	'	'
Sales [Abstract]	'	'	'	'	'
Sales	$16,109	$21,333	$51,258	$53,343	'
Property and equipment, net [Abstract]	'	'	'	'	'
Property and equipment, net	7,603	'	7,603	'	7,121
Europe, Middle East and Africa [Member]	'	'	'	'	'
Sales [Abstract]	'	'	'	'	'
Sales	9,202	9,737	24,106	19,108	'
United States [Member]	'	'	'	'	'
Sales [Abstract]	'	'	'	'	'
Sales	2,983	4,572	10,000	13,916	'
Property and equipment, net [Abstract]	'	'	'	'	'
Property and equipment, net	1,267	'	1,267	'	1,444
Canada [Member]	'	'	'	'	'
Property and equipment, net [Abstract]	'	'	'	'	'
Property and equipment, net	1,803	'	1,803	'	1,019
Europe [Member]	'	'	'	'	'
Property and equipment, net [Abstract]	'	'	'	'	'
Property and equipment, net	4,527	'	4,527	'	4,655
Asia Pacific [Member]	'	'	'	'	'
Sales [Abstract]	'	'	'	'	'
Sales	3,061	5,316	11,549	11,918	'
Property and equipment, net [Abstract]	'	'	'	'	'
Property and equipment, net	6	'	6	'	3
Canada and Latin America [Member]	'	'	'	'	'
Sales [Abstract]	'	'	'	'	'
Sales	$863	$1,708	$5,603	$8,401	'