Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CAVM | ' |
Entity Registrant Name | 'CAVIUM, INC. | ' |
Entity Central Index Key | '0001175609 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 51,986,742 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $112,960 | $76,784 |
Accounts receivable, net of allowances of $951 and $991, respectively | 46,504 | 33,567 |
Inventories | 42,455 | 46,508 |
Prepaid expenses and other current assets | 4,255 | 4,865 |
Assets held for sale | ' | 2,609 |
Deferred tax assets | 112 | 568 |
Total current assets | 206,286 | 164,901 |
Property and equipment, net | 25,776 | 30,692 |
Intangible assets, net | 53,003 | 62,888 |
Goodwill | 71,478 | 71,478 |
Deferred tax assets, net of current portion | 60 | 449 |
Other assets | 1,044 | 1,096 |
Total assets | 357,647 | 331,504 |
Current liabilities: | ' | ' |
Accounts payable | 23,992 | 16,083 |
Other accrued expenses and other current liabilities | 9,754 | 8,680 |
Deferred revenue | 10,689 | 12,944 |
Notes payable | 11,012 | 1,012 |
Capital lease and technology license obligations | 11,755 | 16,500 |
Total current liabilities | 67,202 | 55,219 |
Notes payable, net of current portion | ' | 4,000 |
Capital lease and technology license obligations, net of current portion | 18,268 | 24,832 |
Deferred tax liability | 2,128 | 2,421 |
Other non-current liabilities | 2,789 | 1,970 |
Total liabilities | 90,387 | 88,442 |
Commitments and contingencies (Note 11) | ' | ' |
Equity | ' | ' |
Common stock, par value $0.001: 200,000,000 shares authorized; 51,578,640 and 50,630,991 shares issued and outstanding, respectively | 52 | 51 |
Additional paid-in capital | 433,507 | 398,133 |
Accumulated deficit | -157,244 | -154,092 |
Total stockholders’ equity attributable to the Company | 276,315 | 244,092 |
Non-controlling interest | -9,055 | -1,030 |
Total equity | 267,260 | 243,062 |
Total liabilities and equity | $357,647 | $331,504 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowances for accounts receivable | $951 | $991 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 51,962,790 | 50,630,991 |
Common stock, shares outstanding | 51,962,790 | 50,630,991 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net revenue | $79,124 | $61,081 | $222,858 | $169,111 |
Cost of revenue | 28,516 | 24,796 | 85,620 | 77,553 |
Gross profit | 50,608 | 36,285 | 137,238 | 91,558 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 33,630 | 26,185 | 98,469 | 79,366 |
Sales, general and administrative | 14,833 | 19,213 | 46,217 | 50,186 |
Total operating expenses | 48,463 | 45,398 | 144,686 | 129,552 |
Income (loss) from operations | 2,145 | -9,113 | -7,448 | -37,994 |
Other expense, net: | ' | ' | ' | ' |
Interest expense | -390 | -11 | -1,107 | -65 |
Other, net | -126 | -720 | -805 | -828 |
Total other expense, net | -516 | -731 | -1,912 | -893 |
Income (loss) before income taxes | 1,629 | -9,844 | -9,360 | -38,887 |
Provision for (benefit from) income taxes | 714 | -1,719 | 1,817 | -5,094 |
Net income (loss) | 915 | -8,125 | -11,177 | -33,793 |
Net loss attributable to non-controlling interest | -3,421 | ' | -8,025 | ' |
Net income (loss) attributable to the Company | $4,336 | ($8,125) | ($3,152) | ($33,793) |
Earnings per share attributable to the Company: | ' | ' | ' | ' |
Net income (loss) per common share, basic | $0.08 | ($0.16) | ($0.06) | ($0.68) |
Shares used in computing basic net income (loss) per common share | 51,772 | 50,060 | 51,425 | 49,684 |
Net income (loss) per common share, diluted | $0.08 | ($0.16) | ($0.06) | ($0.68) |
Shares used in computing diluted net income (loss) per common share | 53,492 | 50,060 | 51,425 | 49,684 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($11,177) | ($33,793) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Stock-based compensation expense | 25,768 | 28,773 |
Depreciation and amortization | 26,589 | 23,298 |
Deferred income taxes | 552 | -5,479 |
Gain on sale of held for sale assets | -747 | ' |
Loss on disposal of property and equipment | ' | 178 |
(Gain) loss on disposition of certain consumer product assets | -750 | 2,728 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable, net | -12,937 | 4,875 |
Inventories | 4,147 | -2,414 |
Prepaid expenses and other current assets | 915 | -802 |
Other assets | 52 | 404 |
Accounts payable | 6,202 | 2,265 |
Deferred revenue | -2,254 | 2,662 |
Accrued expenses and other current and non-current liabilities | 1,910 | -2,195 |
Net cash provided by operating activities | 38,270 | 20,500 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -5,528 | -11,300 |
Purchases of intangible assets | -3,568 | -4,153 |
Proceeds received from sale of held for sale assets | 3,350 | ' |
Proceeds received from disposition of certain consumer product assets | 750 | ' |
Net cash used in investing activities | -4,996 | -15,453 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock upon exercise of options | 9,528 | 6,647 |
Principal payment of capital lease and technology license obligations | -13,369 | -7,629 |
Notes payable of the VIE to non-controlling interest | 6,000 | ' |
Tax withholdings for stock option exercises on behalf of employees | 743 | ' |
Net cash provided by (used in) financing activities | 2,902 | -982 |
Net increase in cash and cash equivalents | 36,176 | 4,065 |
Cash and cash equivalents, beginning of period | 76,784 | 63,225 |
Cash and cash equivalents, end of period | 112,960 | 67,290 |
Supplemental disclosure of cash flows from investing activities | ' | ' |
Property and equipment and intangible assets acquired included in accounts payable and other accrued expense and other current liabilities | 2,272 | 382 |
Supplemental disclosure of cash flow from financing activities: | ' | ' |
Property and equipment and intangible assets acquired included in capital lease and technology license obligations | $313 | $23,794 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
Organization | |
Cavium, Inc., (the “Company”), was incorporated in the state of California on November 21, 2000 and was reincorporated in the state of Delaware effective February 6, 2007. The Company designs, develops and markets semiconductor processors for intelligent and secure networks. | |
Basis of Presentation | |
The condensed consolidated financial statements include the accounts of Cavium, Inc., its wholly owned subsidiaries, and a variable interest entity, or VIE, of which the Company is the primary beneficiary. Under the accounting principles generally accepted in the United States of America, or US GAAP, a VIE is required to be consolidated by its primary beneficiary. The primary beneficiary is the party that absorbs a majority of the VIE’s anticipated losses and/or a majority of the expected returns. See Note 5 of Notes to Condensed Consolidated Financial Statements for detailed discussions of the VIE. Intercompany transactions and balances have been eliminated in consolidation. | |
The condensed consolidated financial statements have been prepared in accordance with US GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. For further information, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K (File No. 001-33435) on file with the SEC for the year ended December 31, 2012. | |
The condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s condensed consolidated financial position at September 30, 2013, and the condensed consolidated results of its operations for the three and nine months ended September 30, 2013 and 2012, and condensed consolidated statements of cash flows for the nine months ended September 30, 2013 and 2012. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |
The condensed consolidated balance sheet at December 31, 2012 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. | |
Significant Accounting Policies | |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. There had been no material changes to these accounting policies. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board issued a new accounting guidance relating to the financial statement presentation of unrecognized tax benefits. The new update provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance becomes effective for the Company on January 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist at the effective date with retrospective application permitted. The Company does not expect that this new guidance to have a significant impact on the Company’s consolidated financial position, results of operations and cash flows. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Net Income (Loss) Per Common Share | ' | |||||||||||||||||||||||||
2. Net Income (Loss) Per Common Share | ||||||||||||||||||||||||||
The following table sets forth the computation of net income (loss) per share: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||
Net income (loss) attributable to the Company | $ | 4,336 | $ | (8,125 | ) | $ | (3,152 | ) | $ | (33,793 | ) | |||||||||||||||
Weighted average common shares outstanding—basic | 51,772 | 50,060 | 51,425 | 49,684 | ||||||||||||||||||||||
Dilutive effect of employee stock plans | 1,720 | — | — | — | ||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 53,492 | 50,060 | 51,425 | 49,684 | ||||||||||||||||||||||
Net income (loss) per common share, basic | $ | 0.08 | $ | (0.16 | ) | $ | (0.06 | ) | $ | (0.68 | ) | |||||||||||||||
Net income (loss) per common share, diluted | $ | 0.08 | $ | (0.16 | ) | $ | (0.06 | ) | $ | (0.68 | ) | |||||||||||||||
The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Options to purchase common stock | 727 | 4,346 | 3,637 | 4,346 | ||||||||||||||||||||||
Restricted stock units | 1 | 2,040 | 1,887 | 2,040 | ||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Measurements | ' |
3. Fair Value Measurements | |
At September 30, 2013 and December 31, 2012, all of the Company’s investments were classified as cash equivalents and are comprised of an investment in a money market fund. In accordance with the guidance for fair value measurements and disclosures, the Company determined the fair value hierarchy of its money market fund as Level 1, which approximated $72.2 million and $50.2 million as of September 30, 2013 and December 31, 2012, respectively. The carrying amount of the Company’s accounts receivable, accounts payable and accrued expenses approximate fair value due to their short term maturities. Notes payable are carried at cost which approximates fair value based on current interest rates available to the Company and are a Level 2 measurement. There are no other financial assets and liabilities that require Level 2 or Level 3 fair value hierarchy measurements and disclosures. |
Balance_Sheet_Components
Balance Sheet Components | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Balance Sheet Components | ' | |||||||||||||||||||||||||
4. Balance Sheet Components | ||||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Work-in-process | $ | 34,791 | $ | 33,418 | ||||||||||||||||||||||
Finished goods | 7,664 | 13,090 | ||||||||||||||||||||||||
$ | 42,455 | $ | 46,508 | |||||||||||||||||||||||
During the second quarter of 2013, the Company incurred a $3.9 million inventory write-down associated with discontinued consumer products. | ||||||||||||||||||||||||||
Property and equipment, net | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Mask costs and test equipment | $ | 37,392 | $ | 32,771 | ||||||||||||||||||||||
Software, computer and other equipment | 38,363 | 35,563 | ||||||||||||||||||||||||
Furniture, office equipment and leasehold improvements | 1,181 | 1,089 | ||||||||||||||||||||||||
76,936 | 69,423 | |||||||||||||||||||||||||
Less: accumulated depreciation and amortization | (51,160 | ) | (38,731 | ) | ||||||||||||||||||||||
$ | 25,776 | $ | 30,692 | |||||||||||||||||||||||
Depreciation and amortization expense was $4.4 million and $3.8 million for the three months ended September 30, 2013 and 2012, respectively, and $13.2 million and $10.3 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
The Company leases certain design tools under capital lease and certain financing arrangements which are included in property and equipment, which total cost, net of accumulated amortization amounted to $12.1 and $16.8 million at September 30, 2013 and December 31, 2012, respectively. Amortization expense related to assets recorded under capital lease and certain financing agreements was $1.6 million and $1.2 million for the three months ended September 30, 2013 and 2012, respectively, and $4.8 million and $3.3 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
Other accrued expenses and other current liabilities | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Accrued compensation and related benefits | $ | 4,843 | $ | 4,458 | ||||||||||||||||||||||
Professional fees | 1,593 | 1,067 | ||||||||||||||||||||||||
Contractual settlement payable | 1,250 | — | ||||||||||||||||||||||||
Restructuring related payables | 107 | 210 | ||||||||||||||||||||||||
Income tax payable | 47 | 467 | ||||||||||||||||||||||||
Other | 1,914 | 2,478 | ||||||||||||||||||||||||
$ | 9,754 | $ | 8,680 | |||||||||||||||||||||||
Warranty Accrual | ||||||||||||||||||||||||||
The following table presents a reconciliation of the warranty liability, which is included within other accrued expenses and other current liabilities above: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Beginning balance | $ | 317 | $ | 423 | $ | 440 | $ | 412 | ||||||||||||||||||
Accruals and adjustments | 25 | 113 | 257 | 391 | ||||||||||||||||||||||
Settlements | (68 | ) | (109 | ) | (423 | ) | (376 | ) | ||||||||||||||||||
Ending balance | $ | 274 | $ | 427 | $ | 274 | $ | 427 | ||||||||||||||||||
Deferred revenue | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Services / support and maintenance | $ | 6,534 | $ | 8,017 | ||||||||||||||||||||||
Software license / subscription | 1,523 | 2,529 | ||||||||||||||||||||||||
Distributors | 2,632 | 2,398 | ||||||||||||||||||||||||
$ | 10,689 | $ | 12,944 | |||||||||||||||||||||||
Business_Combinations_and_Dive
Business Combinations and Divestitures | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations and Divestitures | ' |
5. Business Combinations and Divestitures | |
Variable Interest Entity | |
In May 2012, the Company entered into a secured note purchase agreement with a VIE to provide cash advances. As of September 30, 2013, the Company had made cash advances of $4.0 million under three convertible notes receivable which mature between December 31, 2013 and August 31, 2014. In addition, a third-party company and third party investors (“non-controlling interest”) had made cash advances of $5.0 million and $6.0 million, respectively, under twelve convertible notes receivable which mature between December 31, 2013 and August 31, 2014. Certain of the convertible notes are collateralized by a lien on the VIE’s assets. Pursuant to the convertible notes, in the event of a qualified equity financing of the VIE, the outstanding principal balance plus the accrued interest of the convertible notes would be automatically converted into preferred stock of the VIE. The Company has a purchase option to acquire the assets of the VIE at a price specified in the secured note purchase agreement. The option to purchase expires on December 31, 2013, provided the VIE has met certain milestones specified in the secured note purchase agreement. If the certain milestones have not been met by December 31, 2013, the expiration shall be the date that is the earlier of 30 days after the VIE meets the specified milestones or July 31, 2014. The Company has concluded that it is the primary beneficiary of the VIE due to the Company’s involvement with the VIE and the purchase option to acquire the assets of the VIE. As such, the Company has included the accounts of the VIE in the condensed consolidated financial statements. The significant components of the VIE’s financial statements included in the Company’s condensed consolidated financial statements as of September 30, 2013 include cash of $1.8 million; property and equipment and intangible assets of $1.0 million; accounts payable of $2.9 million; notes payable of $11.0 million and non-controlling interest of $9.0 million. For the three and nine months ended September 30, 2013, the Company’s portion of the net loss of the VIE was $1.3 million and $4.1 million, respectively. For the three and nine months ended September 30, 2012, the Company’s portion of the net loss of the VIE was $0.8 million. | |
Disposition of Certain Consumer Product Assets | |
In September 2012, the Company completed the sale of certain consumer product assets to a third party company. The consumer product assets that were sold originated from the acquisition of Star Semiconductor Corporation in fiscal year 2008 and had been further developed by the Company. Under an asset purchase agreement, the Company agreed to transfer certain assets such as property and equipment and intangible assets to the third party company for an aggregate cash consideration of $2.4 million, payable in installments starting from January 10, 2013 through January 10, 2015. The Company determined that the payment terms were not fixed and determinable and as such the Company treated this transaction as disposition of assets and will recognize the future payments as a credit to sales, general and administrative expenses when the payments are due. The carrying value of the assets related to the sale of $2.7 million was recognized as a loss on disposition of certain consumer product assets within sales, general and administrative expenses during the third quarter of 2012. During the three and nine months ended September 30, 2013, the Company received total installment cash consideration of $0.3 million and $0.8 million, respectively, which were recognized as credits within sales, general and administrative expenses. | |
Sale of Held for Sale Assets | |
In January 2013, the Company completed the sale of certain assets to a third-party company. The assets sold originated from the acquisition of MontaVista Software, Inc. in fiscal year 2009. Under the asset purchase agreement, the Company agreed to transfer certain assets for an aggregate cash consideration of $3.3 million. The carrying value of the assets held for sale was approximately $2.6 million, consisting of a portion of goodwill of $2.2 million and the remaining related to the carrying costs of the transferred property and equipment and intangible assets. These assets were classified as assets held for sale in the consolidated balance sheets as of December 31, 2012. The difference between the sale consideration and the carrying value of the assets held for sale of $0.7 million was recognized as a gain on sale of held for sale assets within sales, general and administrative expenses during the first quarter of 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets, Net | ' | |||||||||||||||||||||||||||
6. Goodwill and Intangible Assets, Net | ||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
The carrying amount of goodwill at September 30, 2013 was $71.5 million, unchanged from the balance at December 31, 2012. | ||||||||||||||||||||||||||||
The Company reviews goodwill for impairment annually at the beginning of its fourth calendar quarter and whenever events or changes in circumstances that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. For the most recent annual goodwill impairment analysis performed during the fourth quarter of 2012, the Company had two reporting units, namely, semiconductor product unit and software and services unit. The result of the most recent annual impairment test showed that goodwill impairment does not exist in its semiconductor product reporting unit due to a significant excess of the fair value over the carrying value of the reporting unit. The Company however determined that goodwill impairment existed in its software and services reporting unit as a result of the most recent annual goodwill impairment assessment. As such, the Company recorded a $27.7 million goodwill impairment charge in the fourth quarter of 2012. The carrying amount of the goodwill at December 31, 2012 was $56.3 million in the semiconductor products reporting unit and $15.2 million in the software and services reporting unit. | ||||||||||||||||||||||||||||
During the first quarter of 2013, due to the sale of certain assets of MontaVista and the reorganization of resources, the Company changed how it manages and operates the business which resulted in the combination of the semiconductor product and software and services into one reporting unit. See related discussions in Note 10 of Notes to Condensed Consolidated Financial Statements. As such, beginning in the first quarter of 2013, the Company assesses the goodwill impairment at the reporting unit level which is at the Company level as a whole. Due to the change in the reporting unit structure, the Company performed a qualitative assessment of the goodwill at the Company level as a whole and concluded that it was more-likely-than-not that the fair value of the reporting unit exceeded the carrying amount as of March 31, 2013. As such, it was not necessary to perform the two-step goodwill impairment test at that time. In assessing the qualitative factors, the Company considered the impact of these key factors: overall financial performance, industry and competitive market environment, market capitalization and stock price. There had been no triggering events since the latest assessment in the first quarter of 2013 to cause an interim impairment test. | ||||||||||||||||||||||||||||
Intangible assets, net | ||||||||||||||||||||||||||||
As of September 30, 2013 | Weighted average | |||||||||||||||||||||||||||
remaining amortization | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | period (years) | |||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Existing and core technology - product | $ | 46,533 | $ | (38,645 | ) | $ | 7,888 | 1.82 | ||||||||||||||||||||
Technology licenses | 68,769 | (27,331 | ) | 41,438 | 7.14 | |||||||||||||||||||||||
Customer contracts and relationships | 8,991 | (5,889 | ) | 3,102 | 4.23 | |||||||||||||||||||||||
Trade name | 2,296 | (1,721 | ) | 575 | 1.35 | |||||||||||||||||||||||
Order backlog | 640 | (640 | ) | — | — | |||||||||||||||||||||||
Total amortizable intangible assets | $ | 127,229 | $ | (74,226 | ) | $ | 53,003 | 6.50 | ||||||||||||||||||||
As of December 31, 2012 | Weighted average | |||||||||||||||||||||||||||
remaining amortization | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | period (years) | |||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Existing and core technology - product | $ | 47,658 | $ | (35,326 | ) | $ | 12,332 | 2.39 | ||||||||||||||||||||
Technology licenses | 66,034 | (20,078 | ) | 45,956 | 7.94 | |||||||||||||||||||||||
Customer contracts and relationships | 8,991 | (5,291 | ) | 3,700 | 4.93 | |||||||||||||||||||||||
Trade name | 2,296 | (1,396 | ) | 900 | 2.10 | |||||||||||||||||||||||
Order backlog | 640 | (640 | ) | — | — | |||||||||||||||||||||||
Total amortizable intangible assets | $ | 125,619 | $ | (62,731 | ) | $ | 62,888 | 6.57 | ||||||||||||||||||||
Amortization expense was $4.3 million and $4.8 million for the three months ended September 30, 2013 and 2012, respectively, and $13.4 million and $13.0 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||
The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | ||||||||||||||||||||||||||||
Remainder of 2013 | $ | 4,240 | ||||||||||||||||||||||||||
2014 | 14,471 | |||||||||||||||||||||||||||
2015 | 7,854 | |||||||||||||||||||||||||||
2016 | 5,704 | |||||||||||||||||||||||||||
2017 | 4,505 | |||||||||||||||||||||||||||
2018 and thereafter | 16,229 | |||||||||||||||||||||||||||
$ | 53,003 | |||||||||||||||||||||||||||
Restructuring_Accrual
Restructuring Accrual | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Restructuring Accrual | ' | ||||||||||||||
7. Restructuring Accrual | |||||||||||||||
In the first quarter of 2012, the Company recorded a restructuring accrual of $0.4 million related to the leased facility in Canada which the Company no longer occupies. The lease will expire in March 2014. | |||||||||||||||
In connection with a workforce reduction during the first quarter of 2013, the Company incurred $1.4 million in expense primarily related to severance and other related benefits. | |||||||||||||||
A summary of the accrued restructuring liabilities including related activities during the nine months ended September 30, 2013, is as follows: | |||||||||||||||
Severance | Excess | Total | |||||||||||||
and other | Facility | ||||||||||||||
benefits | Related Cost | ||||||||||||||
(in thousands) | |||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 262 | $ | 262 | |||||||||
Additions | 1,371 | — | 1,371 | ||||||||||||
Cash payments and other non-cash adjustments | (1,371 | ) | (155 | ) | (1,526 | ) | |||||||||
Balance at September 30, 2013 (current) | $ | — | $ | 107 | $ | 107 | |||||||||
Equity
Equity | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Equity | ' | ||||||||||||||||||||||||
8. Equity | |||||||||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||||||||
The following table summarizes the details related to stock options granted and outstanding under the 2007 Equity Incentive Plan and 2001 Stock Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||||||
Number of Shares | Weighted Average | ||||||||||||||||||||||||
Outstanding | Exercise Price | ||||||||||||||||||||||||
Balance as of December 31, 2012 | 4,197,704 | $ | 16.83 | ||||||||||||||||||||||
Options granted | 242,375 | 37.15 | |||||||||||||||||||||||
Options exercised | (658,374 | ) | 14.45 | ||||||||||||||||||||||
Options cancelled and forfeited | (144,982 | ) | 33.86 | ||||||||||||||||||||||
Balance as of September 30, 2013 | 3,636,723 | $ | 17.94 | ||||||||||||||||||||||
No stock options were granted during the three months ended September 30, 2013. The fair value of each employee option grant for the three months ended September 30, 2012 and nine months ended September 30, 2013 and 2012 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | — | 1.55 | % | 0.32% to 1.04% | 0.57% to 1.55% | ||||||||||||||||||||
Expected life | — | 4.53 years | 3.77 to 4.53 years | 4.08 to 4.53 years | |||||||||||||||||||||
Dividend yield | — | 0 | % | 0 | % | 0 | % | ||||||||||||||||||
Volatility | — | 57.3 | % | 45.82 to 49.6% | 51.3% to 57.3% | ||||||||||||||||||||
The estimated weighted-average grant date fair value of options granted was $13.03 per share for the three months ended September 30, 2012 and $14.91 and $14.79 per share for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||
As of September 30, 2013, there is $6.8 million of unrecognized compensation costs, net of estimated forfeitures, related to stock options granted under the Company’s 2007 Equity Incentive Plan and 2001 Stock Incentive Plan. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.28 years. | |||||||||||||||||||||||||
The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||||||
Number of Shares | Weighted-Average | ||||||||||||||||||||||||
Grant Date Fair | |||||||||||||||||||||||||
Value Per Share | |||||||||||||||||||||||||
Balance as of December 31, 2012 | 1,823,563 | $ | 33.17 | ||||||||||||||||||||||
Granted | 1,019,420 | 36.17 | |||||||||||||||||||||||
Issued and released | (673,424 | ) | 32.24 | ||||||||||||||||||||||
Cancelled and forfeited | (282,993 | ) | 32.18 | ||||||||||||||||||||||
Balance as of September 30, 2013 | 1,886,556 | $ | 35.27 | ||||||||||||||||||||||
For restricted stock units, or RSUs, stock-based compensation expense is calculated based on the market price of the Company’s common stock on the date of grant, multiplied by the number of RSUs granted. The grant date fair value of RSUs, less estimated forfeitures, is recorded on a straight-line basis, over the vesting period. | |||||||||||||||||||||||||
As of September 30, 2013, there was $53.6 million of unrecognized compensation costs, net of estimated forfeitures related to RSUs granted under the Company’s 2007 Equity Incentive Plan. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.55 years. | |||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenue | $ | 216 | $ | 471 | $ | 655 | $ | 1,539 | |||||||||||||||||
Research and development | 4,899 | 4,259 | 13,682 | 12,761 | |||||||||||||||||||||
Sales, general and administrative | 3,686 | 4,243 | 11,431 | 14,473 | |||||||||||||||||||||
$ | 8,801 | $ | 8,973 | $ | 25,768 | $ | 28,773 | ||||||||||||||||||
The total stock-based compensation cost capitalized as part of inventory as of September 30, 2013 and December 31, 2012 was not significant. | |||||||||||||||||||||||||
Changes in equity | |||||||||||||||||||||||||
A reconciliation of the changes in equity for the nine months ended September 30, 2013 is presented below: | |||||||||||||||||||||||||
Attributable to | Attributable to | Total | |||||||||||||||||||||||
the Company | non-controlling | equity | |||||||||||||||||||||||
interest | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 244,092 | $ | (1,030 | ) | $ | 243,062 | ||||||||||||||||||
Common stock issued in connection with exercises of stock options | 9,528 | — | 9,528 | ||||||||||||||||||||||
Stock-based compensation | 25,847 | — | 25,847 | ||||||||||||||||||||||
Net loss | (3,152 | ) | (8,025 | ) | (11,177 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 276,315 | $ | (9,055 | ) | $ | 267,260 | ||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
9. Income Taxes | |||||||||||||||||||||||||
The quarterly tax provision for (benefit from) income taxes is based on the estimated annual effective tax rate, plus any discrete items. The Company updates its estimate of its annual effective tax rate at the end of each quarterly period. The estimate takes into account estimations of annual pre-tax income, the geographic mix of pre-tax income and interpretations of tax laws and the possible outcomes of current and future audits. | |||||||||||||||||||||||||
The following table presents the provision for (benefit from) income taxes and the effective tax rates for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income (loss) before income taxes | $ | 1,629 | $ | (9,844 | ) | $ | (9,360 | ) | $ | (38,887 | ) | ||||||||||||||
Provision for (benefit from) income taxes | 714 | (1,719 | ) | 1,817 | (5,094 | ) | |||||||||||||||||||
Effective tax rate | 43.8 | % | 17.5 | % | - 19.4 | % | 13.1 | % | |||||||||||||||||
The provision for income taxes for the three and nine months ended September 30, 2013 was primarily related to earnings and additional establishment of unrecognized tax benefits in foreign jurisdictions. The difference between the provision for or benefit from income taxes that would be derived by applying the statutory rate to the Company’s loss before income taxes and the provision for income taxes recorded for the three and nine months ended September 30, 2013 was primarily attributable to the impact of the losses that are not benefited, difference in foreign tax rates and increase in indefinite lived intangible related deferred tax liability. The Company has determined that as of September 30, 2013, the variability in the jurisdictional mix of its customers created uncertainty with respect to estimating taxable income in the Cayman business. As such, the results of the Cayman business have been excluded from the computation of the annual effective tax rate and the year-to-date tax provision, which resulted in a higher tax expense than if the Cayman business had not been excluded. The benefit from income taxes for the three and nine months ended September 30, 2012 was primarily related to the year-to-date pre-tax losses and the release of uncertain tax position reserves. The difference between the provision for or benefit from income taxes that would be derived by applying the statutory rate to the Company’s loss before income taxes and the benefit from income taxes recorded for the three and nine months ended September 30, 2012 was primarily attributable to the impact of the differential in foreign tax rates, non-deductible stock-based compensation charges, and recovery of non-taxable escrow related to the Celestial Semiconductor acquisition. | |||||||||||||||||||||||||
The Company’s net deferred tax assets relate predominantly to its United States tax jurisdiction. The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more-likely-than-not that deferred tax assets are recoverable; such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. After considering both negative and positive evidence to assess the recoverability of the Company’s net deferred tax assets during the fourth quarter of 2012, the Company determined that it was more-likely-than-not it would not realize the full value of its federal and state deferred tax assets. As such, the Company determined that as of December 31, 2012, a full valuation allowance is required on its net federal and state deferred tax assets. Adjustments could be required in the future if the Company concludes that it is more-likely-than-not that these net deferred tax assets are recoverable. A release of the valuation allowance could have the effect of decreasing the income tax provision in the period the valuation allowance is released. The Company continues to monitor the likelihood that it will be able to recover its deferred tax assets. As of September 30, 2013, the Company believes that it is not more likely than not that it will be able to fully realize its United States federal and state deferred tax assets and, as such, the Company continues to provide a full valuation allowance on those deferred tax assets. | |||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had unrecognized tax benefits for income taxes associated with uncertain tax positions of $14.8 million and $12.7 million, respectively. If all of these unrecognized tax benefits were recognized, $1.3 million would reduce the Company’s effective tax rate. The Company is not anticipating any significant changes in unrecognized tax benefits in the next 12 months. | |||||||||||||||||||||||||
The Company’s major tax jurisdictions are the United States federal government, the states of California and Massachusetts, Japan, India, China and Singapore. The Company files income tax returns in the United States federal jurisdiction, the states of California and Massachusetts, various other states, and foreign jurisdictions in which it has a subsidiary or branch operations. The United States federal corporation income tax returns beginning with the 2000 tax year remain subject to examination by the Internal Revenue Service. The California corporation income tax returns beginning with the 2000 tax year remain subject to examination by the California Franchise Tax Board. As of September 30, 2013, there are no on-going tax audits in the major tax jurisdictions other than India. The India tax audit is for the tax years 2010 and 2011, and the Company does not expect any significant tax adjustments. | |||||||||||||||||||||||||
On January 2, 2013, the President of the United States of America signed into law The American Taxpayer Relief Act of 2012, or ATRA. Under prior law, a taxpayer was entitled to a research tax credit for qualifying amounts incurred through December 31, 2011. The ATRA extends the research credit for two years for qualified research expenditures incurred through the end of 2013. The extension of the research credit is retroactive and includes amounts incurred after 2011. The benefit of the reinstated credit did not impact the income statement in the period of enactment, which is the first quarter of 2013, as the research and development credit carryforwards are offset by a full valuation allowance. | |||||||||||||||||||||||||
On September 13, 2013, the Treasury Department and the Internal Revenue Service released final regulations and re-proposed regulations (collectively, the “2013 Regulations”) that provide guidance with respect to sections 162(a), 263(a), and 168 of the Internal Revenue Code of 1986. The 2013 Regulations are generally effective for taxable years beginning on or after January 1, 2014, although earlier adoption is permitted. The Company is aware of these regulations and is currently assessing the potential impact. The Company does not expect any significant impact, especially in light of the full valuation allowance on its federal and state net deferred tax assets as of September 30, 2013. |
Segment_And_Geographic_Informa
Segment And Geographic Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Segment and Geographic Information | ' | ||||||||||||||||||||
10. Segment and Geographic Information | |||||||||||||||||||||
Operating segments are based on components of the Company that engage in business activity that earn revenue and incur expenses and (a) whose operating results are regularly reviewed by the Company’s chief operating decision maker, or CODM, to make decisions about resource allocation and performance and (b) for which discrete financial information is available. The Company’s primary business has been its semiconductor business, which comes from the development and sale of semiconductor products. Prior to fiscal year 2010, the Company was organized as, and operated in, one operating segment. In the fourth quarter of 2009, the Company acquired MontaVista which changed the way the CODM viewed and managed the business and allocated resources. This resulted in the Company to operate in two reporting units which were the same as the reportable segments namely, semiconductor products and software and services beginning first quarter of 2010. | |||||||||||||||||||||
During the first quarter of 2013, the Company sold certain assets and reorganized the software and services unit which resulted in a decrease in the significance of the related business unit to the overall operations of the Company. Due to such decrease in the significance of the software and services unit, the CODM now views, manages and allocates resources across the business as a whole and no longer reviews the discrete financial information for semiconductor products and software and services separately. As a result of this change, the Company manages and operates as one reporting unit which is also the same as the reportable segment beginning in the first quarter of 2013. | |||||||||||||||||||||
The following table is based on the geographic location of the original equipment manufacturers, the contract manufacturers or the distributors who purchased the Company’s products. For sales to the distributors, their geographic location may be different from the geographic locations of the ultimate end customers. | |||||||||||||||||||||
Sales by geography for the periods indicated were as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
United States | $ | 22,391 | $ | 18,091 | $ | 69,605 | $ | 51,089 | |||||||||||||
China | 20,574 | 16,757 | 54,243 | 48,346 | |||||||||||||||||
Korea | 8,671 | 3,773 | 23,311 | 9,774 | |||||||||||||||||
Mexico | 7,135 | 2,809 | 16,700 | 6,539 | |||||||||||||||||
Finland | 6,051 | 631 | 12,117 | 662 | |||||||||||||||||
Taiwan | 5,822 | 7,313 | 18,530 | 19,635 | |||||||||||||||||
Japan | 2,154 | 3,741 | 6,900 | 8,724 | |||||||||||||||||
Malaysia | 3,877 | 3,935 | 10,636 | 12,099 | |||||||||||||||||
Other countries | 2,449 | 4,031 | 10,816 | 12,243 | |||||||||||||||||
Total | $ | 79,124 | $ | 61,081 | $ | 222,858 | $ | 169,111 | |||||||||||||
The following table sets forth long lived assets, which consist primarily of property and equipment, net by geographic regions: | |||||||||||||||||||||
As of | As of | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
United States | $ | 21,744 | $ | 27,678 | |||||||||||||||||
All other countries | 4,032 | 3,014 | |||||||||||||||||||
Total | $ | 25,776 | $ | 30,692 | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||
11. Commitments and Contingencies | ||||||||||||||||
The Company is not currently a party to any legal proceedings and outcome of which, if determined adversely to the Company, would have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. | ||||||||||||||||
During the second quarter of 2013, a customer of MontaVista sent a claim letter to the Company requesting an amount they believe is due related to an automotive business services agreement between the customer and MontaVista. The Company has disputed this claim, but it engaged in discussions with the customer to resolve the matter. The Company recorded $1.3 million accrual to cover a potential contractual settlement payment to the customer within sales, general and administrative expenses in the second quarter of 2013. In October 2013, the Company and the customer entered into a settlement and general release claim agreement, and the Company paid the $1.3 million. | ||||||||||||||||
The Company leases its facilities under non-cancelable operating leases, which contain renewal options and escalation clauses, and expire on various dates ending in November 2020. The Company also acquires certain assets under capital leases. | ||||||||||||||||
The capital lease and technology license obligations include future cash payments payable primarily for license agreements with various outside vendors. For license agreements which qualify under capital lease and where installment payments extend beyond one year, the present value of the future installment payments are capitalized and included as part of intangible assets or property and equipment which is amortized over the estimated useful lives of the related licenses. | ||||||||||||||||
Minimum commitments under non-cancelable operating and capital lease agreements, excluding the accrued restructuring liability (See Note 7 of the Condensed Consolidated Financial Statements) as of September 30, 2013 are as follows: | ||||||||||||||||
Capital lease and | Operating leases | Total | ||||||||||||||
technology license | ||||||||||||||||
obligations | ||||||||||||||||
(in thousands) | ||||||||||||||||
Remainder of 2013 | $ | 5,436 | $ | 1,034 | $ | 6,470 | ||||||||||
2014 | 11,817 | 4,683 | 16,500 | |||||||||||||
2015 | 9,258 | 4,117 | 13,375 | |||||||||||||
2016 | 5,150 | 4,227 | 9,377 | |||||||||||||
2017 | — | 4,247 | 4,247 | |||||||||||||
2018 thereafter | — | 8,959 | 8,959 | |||||||||||||
$ | 31,661 | $ | 27,267 | $ | 58,928 | |||||||||||
Less: Interest component (3.75% annual rate) | 1,638 | |||||||||||||||
Present value of minimum lease payment | 30,023 | |||||||||||||||
Current portion of the obligations | $ | 11,755 | ||||||||||||||
Long-term portion of obligations | $ | 18,268 | ||||||||||||||
Rent expense incurred under operating leases was $1.3 million and $1.4 million for the three months ended September 30, 2013 and 2012, respectively, and $3.7 million and $4.2 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
In September 2013, the VIE entered into a purchase agreement with a third party vendor to purchase certain test equipment amounting to $6.1 million, payable in installments over two years. Furthermore, the Company entered into an agreement with the VIE and third party vendor, whereby the Company guaranteed the payment of the test equipment in the event the VIE defaults such payment obligation. The equipment is expected to be delivered in the fourth quarter of 2013. As such, the related asset and liability has not been reflected in the balance sheets as of September 30, 2013. | ||||||||||||||||
In September 2013, the Company signed a purchase agreement of $5.5 million with a third party vendor to purchase any combination of core software licenses as specified in the agreement under a flexible spending program with a minimum annual spending of $2.75 million each for two years. | ||||||||||||||||
In November 2013, the Company signed a new lease agreement (the “2345 Lease”) with a landlord to lease approximately 55,440 sq. ft. in the first 12 months and 110,881 sq. ft. thereafter in a building located adjacent to the Company’s principal office in San Jose, California. The lease term is 8.0 years commencing on the earlier of October 1, 2014 or the date the Company begins to conduct its business within any portion of the leased facility and ending on ninety six (96) months thereafter. The base monthly rate to lease the facility is $0.12 million for the first 12 months and $0.25 million for months thirteen through twenty-four and increase incrementally by approximately 3% annually through end of the lease term. Further, the Company entered into an amendment to the lease agreement related to the building in San Jose, California where the Company’s principal offices are located to extend the lease term for the period from March 1, 2019 to expiration date of the 2345 Lease. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization | ' |
Organization | |
Cavium, Inc., (the “Company”), was incorporated in the state of California on November 21, 2000 and was reincorporated in the state of Delaware effective February 6, 2007. The Company designs, develops and markets semiconductor processors for intelligent and secure networks. | |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated financial statements include the accounts of Cavium, Inc., its wholly owned subsidiaries, and a variable interest entity, or VIE, of which the Company is the primary beneficiary. Under the accounting principles generally accepted in the United States of America, or US GAAP, a VIE is required to be consolidated by its primary beneficiary. The primary beneficiary is the party that absorbs a majority of the VIE’s anticipated losses and/or a majority of the expected returns. See Note 5 of Notes to Condensed Consolidated Financial Statements for detailed discussions of the VIE. Intercompany transactions and balances have been eliminated in consolidation. | |
The condensed consolidated financial statements have been prepared in accordance with US GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. For further information, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K (File No. 001-33435) on file with the SEC for the year ended December 31, 2012. | |
The condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s condensed consolidated financial position at September 30, 2013, and the condensed consolidated results of its operations for the three and nine months ended September 30, 2013 and 2012, and condensed consolidated statements of cash flows for the nine months ended September 30, 2013 and 2012. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |
The condensed consolidated balance sheet at December 31, 2012 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. | |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. There had been no material changes to these accounting policies. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board issued a new accounting guidance relating to the financial statement presentation of unrecognized tax benefits. The new update provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance becomes effective for the Company on January 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist at the effective date with retrospective application permitted. The Company does not expect that this new guidance to have a significant impact on the Company’s consolidated financial position, results of operations and cash flows. |
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Basic and Diluted Net Loss Per Common Share | ' | |||||||||||||||||||||||||
The following table sets forth the computation of net income (loss) per share: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||
Net income (loss) attributable to the Company | $ | 4,336 | $ | (8,125 | ) | $ | (3,152 | ) | $ | (33,793 | ) | |||||||||||||||
Weighted average common shares outstanding—basic | 51,772 | 50,060 | 51,425 | 49,684 | ||||||||||||||||||||||
Dilutive effect of employee stock plans | 1,720 | — | — | — | ||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 53,492 | 50,060 | 51,425 | 49,684 | ||||||||||||||||||||||
Net income (loss) per common share, basic | $ | 0.08 | $ | (0.16 | ) | $ | (0.06 | ) | $ | (0.68 | ) | |||||||||||||||
Net income (loss) per common share, diluted | $ | 0.08 | $ | (0.16 | ) | $ | (0.06 | ) | $ | (0.68 | ) | |||||||||||||||
Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Loss Per Common Share | ' | |||||||||||||||||||||||||
The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Options to purchase common stock | 727 | 4,346 | 3,637 | 4,346 | ||||||||||||||||||||||
Restricted stock units | 1 | 2,040 | 1,887 | 2,040 | ||||||||||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Inventories | ' | |||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Work-in-process | $ | 34,791 | $ | 33,418 | ||||||||||||||||||||||
Finished goods | 7,664 | 13,090 | ||||||||||||||||||||||||
$ | 42,455 | $ | 46,508 | |||||||||||||||||||||||
Property and Equipment, Net | ' | |||||||||||||||||||||||||
Property and equipment, net | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Mask costs and test equipment | $ | 37,392 | $ | 32,771 | ||||||||||||||||||||||
Software, computer and other equipment | 38,363 | 35,563 | ||||||||||||||||||||||||
Furniture, office equipment and leasehold improvements | 1,181 | 1,089 | ||||||||||||||||||||||||
76,936 | 69,423 | |||||||||||||||||||||||||
Less: accumulated depreciation and amortization | (51,160 | ) | (38,731 | ) | ||||||||||||||||||||||
$ | 25,776 | $ | 30,692 | |||||||||||||||||||||||
Other Accrued Expenses And Other Current Liabilities | ' | |||||||||||||||||||||||||
Other accrued expenses and other current liabilities | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Accrued compensation and related benefits | $ | 4,843 | $ | 4,458 | ||||||||||||||||||||||
Professional fees | 1,593 | 1,067 | ||||||||||||||||||||||||
Contractual settlement payable | 1,250 | — | ||||||||||||||||||||||||
Restructuring related payables | 107 | 210 | ||||||||||||||||||||||||
Income tax payable | 47 | 467 | ||||||||||||||||||||||||
Other | 1,914 | 2,478 | ||||||||||||||||||||||||
$ | 9,754 | $ | 8,680 | |||||||||||||||||||||||
Product Warranty Liability | ' | |||||||||||||||||||||||||
The following table presents a reconciliation of the warranty liability, which is included within other accrued expenses and other current liabilities above: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Beginning balance | $ | 317 | $ | 423 | $ | 440 | $ | 412 | ||||||||||||||||||
Accruals and adjustments | 25 | 113 | 257 | 391 | ||||||||||||||||||||||
Settlements | (68 | ) | (109 | ) | (423 | ) | (376 | ) | ||||||||||||||||||
Ending balance | $ | 274 | $ | 427 | $ | 274 | $ | 427 | ||||||||||||||||||
Deferred Revenue | ' | |||||||||||||||||||||||||
Deferred revenue | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Services / support and maintenance | $ | 6,534 | $ | 8,017 | ||||||||||||||||||||||
Software license / subscription | 1,523 | 2,529 | ||||||||||||||||||||||||
Distributors | 2,632 | 2,398 | ||||||||||||||||||||||||
$ | 10,689 | $ | 12,944 | |||||||||||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||||||||||||
Intangible assets, net | ||||||||||||||||||||||||||||
As of September 30, 2013 | Weighted average | |||||||||||||||||||||||||||
remaining amortization | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | period (years) | |||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Existing and core technology - product | $ | 46,533 | $ | (38,645 | ) | $ | 7,888 | 1.82 | ||||||||||||||||||||
Technology licenses | 68,769 | (27,331 | ) | 41,438 | 7.14 | |||||||||||||||||||||||
Customer contracts and relationships | 8,991 | (5,889 | ) | 3,102 | 4.23 | |||||||||||||||||||||||
Trade name | 2,296 | (1,721 | ) | 575 | 1.35 | |||||||||||||||||||||||
Order backlog | 640 | (640 | ) | — | — | |||||||||||||||||||||||
Total amortizable intangible assets | $ | 127,229 | $ | (74,226 | ) | $ | 53,003 | 6.50 | ||||||||||||||||||||
As of December 31, 2012 | Weighted average | |||||||||||||||||||||||||||
remaining amortization | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | period (years) | |||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Existing and core technology - product | $ | 47,658 | $ | (35,326 | ) | $ | 12,332 | 2.39 | ||||||||||||||||||||
Technology licenses | 66,034 | (20,078 | ) | 45,956 | 7.94 | |||||||||||||||||||||||
Customer contracts and relationships | 8,991 | (5,291 | ) | 3,700 | 4.93 | |||||||||||||||||||||||
Trade name | 2,296 | (1,396 | ) | 900 | 2.10 | |||||||||||||||||||||||
Order backlog | 640 | (640 | ) | — | — | |||||||||||||||||||||||
Total amortizable intangible assets | $ | 125,619 | $ | (62,731 | ) | $ | 62,888 | 6.57 | ||||||||||||||||||||
Estimated Future Amortization Expense From Amortizable Intangible Assets | ' | |||||||||||||||||||||||||||
The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | ||||||||||||||||||||||||||||
Remainder of 2013 | $ | 4,240 | ||||||||||||||||||||||||||
2014 | 14,471 | |||||||||||||||||||||||||||
2015 | 7,854 | |||||||||||||||||||||||||||
2016 | 5,704 | |||||||||||||||||||||||||||
2017 | 4,505 | |||||||||||||||||||||||||||
2018 and thereafter | 16,229 | |||||||||||||||||||||||||||
$ | 53,003 | |||||||||||||||||||||||||||
Restructuring_Accrual_Tables
Restructuring Accrual (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Accrued Restructuring Liabilities Including Related Activities | ' | ||||||||||||||
A summary of the accrued restructuring liabilities including related activities during the nine months ended September 30, 2013, is as follows: | |||||||||||||||
Severance | Excess | Total | |||||||||||||
and other | Facility | ||||||||||||||
benefits | Related Cost | ||||||||||||||
(in thousands) | |||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 262 | $ | 262 | |||||||||
Additions | 1,371 | — | 1,371 | ||||||||||||
Cash payments and other non-cash adjustments | (1,371 | ) | (155 | ) | (1,526 | ) | |||||||||
Balance at September 30, 2013 (current) | $ | — | $ | 107 | $ | 107 | |||||||||
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Summary of Stock Options Granted and Outstanding | ' | ||||||||||||||||||||||||
The following table summarizes the details related to stock options granted and outstanding under the 2007 Equity Incentive Plan and 2001 Stock Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||||||
Number of Shares | Weighted Average | ||||||||||||||||||||||||
Outstanding | Exercise Price | ||||||||||||||||||||||||
Balance as of December 31, 2012 | 4,197,704 | $ | 16.83 | ||||||||||||||||||||||
Options granted | 242,375 | 37.15 | |||||||||||||||||||||||
Options exercised | (658,374 | ) | 14.45 | ||||||||||||||||||||||
Options cancelled and forfeited | (144,982 | ) | 33.86 | ||||||||||||||||||||||
Balance as of September 30, 2013 | 3,636,723 | $ | 17.94 | ||||||||||||||||||||||
Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option Pricing Model | ' | ||||||||||||||||||||||||
No stock options were granted during the three months ended September 30, 2013. The fair value of each employee option grant for the three months ended September 30, 2012 and nine months ended September 30, 2013 and 2012 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | — | 1.55 | % | 0.32% to 1.04% | 0.57% to 1.55% | ||||||||||||||||||||
Expected life | — | 4.53 years | 3.77 to 4.53 years | 4.08 to 4.53 years | |||||||||||||||||||||
Dividend yield | — | 0 | % | 0 | % | 0 | % | ||||||||||||||||||
Volatility | — | 57.3 | % | 45.82 to 49.6% | 51.3% to 57.3% | ||||||||||||||||||||
Summary of Activity of Restricted Stock | ' | ||||||||||||||||||||||||
The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the nine months ended September 30, 2013: | |||||||||||||||||||||||||
Number of Shares | Weighted-Average | ||||||||||||||||||||||||
Grant Date Fair | |||||||||||||||||||||||||
Value Per Share | |||||||||||||||||||||||||
Balance as of December 31, 2012 | 1,823,563 | $ | 33.17 | ||||||||||||||||||||||
Granted | 1,019,420 | 36.17 | |||||||||||||||||||||||
Issued and released | (673,424 | ) | 32.24 | ||||||||||||||||||||||
Cancelled and forfeited | (282,993 | ) | 32.18 | ||||||||||||||||||||||
Balance as of September 30, 2013 | 1,886,556 | $ | 35.27 | ||||||||||||||||||||||
Detail of Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||
The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenue | $ | 216 | $ | 471 | $ | 655 | $ | 1,539 | |||||||||||||||||
Research and development | 4,899 | 4,259 | 13,682 | 12,761 | |||||||||||||||||||||
Sales, general and administrative | 3,686 | 4,243 | 11,431 | 14,473 | |||||||||||||||||||||
$ | 8,801 | $ | 8,973 | $ | 25,768 | $ | 28,773 | ||||||||||||||||||
Reconciliation of Changes in Equity | ' | ||||||||||||||||||||||||
A reconciliation of the changes in equity for the nine months ended September 30, 2013 is presented below: | |||||||||||||||||||||||||
Attributable to | Attributable to | Total | |||||||||||||||||||||||
the Company | non-controlling | equity | |||||||||||||||||||||||
interest | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 244,092 | $ | (1,030 | ) | $ | 243,062 | ||||||||||||||||||
Common stock issued in connection with exercises of stock options | 9,528 | — | 9,528 | ||||||||||||||||||||||
Stock-based compensation | 25,847 | — | 25,847 | ||||||||||||||||||||||
Net loss | (3,152 | ) | (8,025 | ) | (11,177 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 276,315 | $ | (9,055 | ) | $ | 267,260 | ||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Provisions for (Benefit from) Income Taxes and Effective Tax Rates | ' | ||||||||||||||||||||||||
The following table presents the provision for (benefit from) income taxes and the effective tax rates for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income (loss) before income taxes | $ | 1,629 | $ | (9,844 | ) | $ | (9,360 | ) | $ | (38,887 | ) | ||||||||||||||
Provision for (benefit from) income taxes | 714 | (1,719 | ) | 1,817 | (5,094 | ) | |||||||||||||||||||
Effective tax rate | 43.8 | % | 17.5 | % | - 19.4 | % | 13.1 | % | |||||||||||||||||
Segment_And_Geographic_Informa1
Segment And Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Sales by Geography | ' | ||||||||||||||||||||
Sales by geography for the periods indicated were as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
United States | $ | 22,391 | $ | 18,091 | $ | 69,605 | $ | 51,089 | |||||||||||||
China | 20,574 | 16,757 | 54,243 | 48,346 | |||||||||||||||||
Korea | 8,671 | 3,773 | 23,311 | 9,774 | |||||||||||||||||
Mexico | 7,135 | 2,809 | 16,700 | 6,539 | |||||||||||||||||
Finland | 6,051 | 631 | 12,117 | 662 | |||||||||||||||||
Taiwan | 5,822 | 7,313 | 18,530 | 19,635 | |||||||||||||||||
Japan | 2,154 | 3,741 | 6,900 | 8,724 | |||||||||||||||||
Malaysia | 3,877 | 3,935 | 10,636 | 12,099 | |||||||||||||||||
Other countries | 2,449 | 4,031 | 10,816 | 12,243 | |||||||||||||||||
Total | $ | 79,124 | $ | 61,081 | $ | 222,858 | $ | 169,111 | |||||||||||||
Long Lived Assets | ' | ||||||||||||||||||||
The following table sets forth long lived assets, which consist primarily of property and equipment, net by geographic regions: | |||||||||||||||||||||
As of | As of | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
United States | $ | 21,744 | $ | 27,678 | |||||||||||||||||
All other countries | 4,032 | 3,014 | |||||||||||||||||||
Total | $ | 25,776 | $ | 30,692 | |||||||||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Minimum Commitments Under Non-Cancelable Capital and Operating Lease Agreements | ' | |||||||||||||||
Minimum commitments under non-cancelable operating and capital lease agreements, excluding the accrued restructuring liability (See Note 7 of the Condensed Consolidated Financial Statements) as of September 30, 2013 are as follows: | ||||||||||||||||
Capital lease and | Operating leases | Total | ||||||||||||||
technology license | ||||||||||||||||
obligations | ||||||||||||||||
(in thousands) | ||||||||||||||||
Remainder of 2013 | $ | 5,436 | $ | 1,034 | $ | 6,470 | ||||||||||
2014 | 11,817 | 4,683 | 16,500 | |||||||||||||
2015 | 9,258 | 4,117 | 13,375 | |||||||||||||
2016 | 5,150 | 4,227 | 9,377 | |||||||||||||
2017 | — | 4,247 | 4,247 | |||||||||||||
2018 thereafter | — | 8,959 | 8,959 | |||||||||||||
$ | 31,661 | $ | 27,267 | $ | 58,928 | |||||||||||
Less: Interest component (3.75% annual rate) | 1,638 | |||||||||||||||
Present value of minimum lease payment | 30,023 | |||||||||||||||
Current portion of the obligations | $ | 11,755 | ||||||||||||||
Long-term portion of obligations | $ | 18,268 | ||||||||||||||
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share (Basic and Diluted Net Income (Loss) Per Common Share) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure Net Loss Per Common Share Basic And Diluted Net Loss Per Common Share Detail [Line Items] | ' | ' | ' | ' |
Net income (loss) attributable to the Company | $4,336 | ($8,125) | ($3,152) | ($33,793) |
Weighted average common shares outstanding—basic | 51,772 | 50,060 | 51,425 | 49,684 |
Dilutive effect of employee stock plans | 1,720 | ' | ' | ' |
Weighted average common shares outstanding—diluted | 53,492 | 50,060 | 51,425 | 49,684 |
Net income (loss) per common share, basic | $0.08 | ($0.16) | ($0.06) | ($0.68) |
Net income (loss) per common share, diluted | $0.08 | ($0.16) | ($0.06) | ($0.68) |
Net_Income_Loss_Per_Common_Sha3
Net Income (Loss) Per Common Share (Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Income (Loss) Per Common Share) (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Options to purchase common stock | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted net income (loss) per common share | 727 | 4,346 | 3,637 | 4,346 |
Restricted stock units | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted net income (loss) per common share | 1 | 2,040 | 1,887 | 2,040 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (Fair Value, Inputs, Level 1, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $72.20 | $50.20 |
Balance_Sheet_Components_Inven
Balance Sheet Components (Inventories) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work-in-process | $34,791 | $33,418 |
Finished goods | 7,664 | 13,090 |
Inventories | $42,455 | $46,508 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment, Net) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $76,936 | $69,423 |
Less: accumulated depreciation and amortization | -51,160 | -38,731 |
Property and equipment, net | 25,776 | 30,692 |
Mask costs and test equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 37,392 | 32,771 |
Software, computer and other equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 38,363 | 35,563 |
Furniture, office equipment and leasehold improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,181 | $1,089 |
Balance_Sheet_Components_Other
Balance Sheet Components (Other Accrued Expenses and Other Current Liabilities) (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | ' | ' | ' |
Accrued compensation and related benefits | $4,843 | ' | $4,458 |
Professional fees | 1,593 | ' | 1,067 |
Contractual settlement payable | 1,250 | 1,250 | ' |
Restructuring related payables | 107 | ' | 210 |
Income tax payable | 47 | ' | 467 |
Other | 1,914 | ' | 2,478 |
Accrued expenses and other current liabilities | $9,754 | ' | $8,680 |
Balance_Sheet_Components_Produ
Balance Sheet Components (Product Warranty Liability) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Beginning balance | $317 | $423 | $440 | $412 |
Accruals and adjustments | 25 | 113 | 257 | 391 |
Settlements | -68 | -109 | -423 | -376 |
Ending balance | $274 | $427 | $274 | $427 |
Balance_Sheet_Components_Defer
Balance Sheet Components (Deferred Revenue) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $10,689 | $12,944 |
Service / Support and Maintenance | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 6,534 | 8,017 |
Software License / Subscription | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 1,523 | 2,529 |
Distributors | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $2,632 | $2,398 |
Balance_Sheet_Components_Narra
Balance Sheet Components (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Disclosure Balance Sheet Components Narrative Detail [Line Items] | ' | ' | ' | ' | ' | ' |
Depreciation and amortization expense | $4.40 | ' | $3.80 | $13.20 | $10.30 | ' |
Capital lease and certain financing arrangements | 12.1 | ' | ' | 12.1 | ' | 16.8 |
Amortization expense related to assets under capital lease and certain financing arrangements | 1.6 | ' | 1.2 | 4.8 | 3.3 | ' |
Inventory write-down | ' | $3.90 | ' | ' | ' | ' |
Business_Combinations_and_Dive1
Business Combinations and Divestitures (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Attributable to non-controlling interest | Third party investor | Variable interest entity | Variable interest entity | Variable interest entity | Variable interest entity | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes receivable | ' | ' | ' | $4,000,000 | ' | ' | $5,000,000 | $6,000,000 | ' | ' | ' | ' |
Variable Interest Entity, cash | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | 1,800,000 | ' |
Variable Interest Entity, property and equipment and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | 1,000,000 | ' |
Variable Interest Entity, accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | 2,900,000 | ' |
Variable Interest Entity, notes payable | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | 11,000,000 | ' |
Variable Interest Entity, portion of net loss | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | 800,000 | 4,100,000 | 800,000 |
Variable Interest Entity, non-controlling interest | ' | 9,055,000 | ' | 9,055,000 | ' | 1,030,000 | ' | ' | ' | ' | ' | ' |
Aggregate cash consideration on disposition of certain consumer product assets | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' |
Total installment cash consideration on disposition of certain consumer product assets | ' | 300,000 | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
(Gain) loss on disposition of certain consumer product assets | ' | ' | ' | -750,000 | 2,728,000 | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net book value of assets held for sale | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of goodwill in carrying value of assets held for sale | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of held for sale assets | ' | ' | $700,000 | $747,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net (Intangible Assets, Net) (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | $127,229 | $125,619 |
Finite-lived intangible assets, Accumulated Amortization | -74,226 | -62,731 |
Finite-lived intangible assets, Net | 53,003 | 62,888 |
Weighted average remaining amortization period (years) | '6 years 6 months | '6 years 6 months 26 days |
Existing and core technology - product | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 46,533 | 47,658 |
Finite-lived intangible assets, Accumulated Amortization | -38,645 | -35,326 |
Finite-lived intangible assets, Net | 7,888 | 12,332 |
Weighted average remaining amortization period (years) | '1 year 9 months 26 days | '2 years 4 months 21 days |
Technology licenses | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 68,769 | 66,034 |
Finite-lived intangible assets, Accumulated Amortization | -27,331 | -20,078 |
Finite-lived intangible assets, Net | 41,438 | 45,956 |
Weighted average remaining amortization period (years) | '7 years 1 month 21 days | '7 years 11 months 9 days |
Customer contracts and relationships | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 8,991 | 8,991 |
Finite-lived intangible assets, Accumulated Amortization | -5,889 | -5,291 |
Finite-lived intangible assets, Net | 3,102 | 3,700 |
Weighted average remaining amortization period (years) | '4 years 2 months 23 days | '4 years 11 months 5 days |
Trade name | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 2,296 | 2,296 |
Finite-lived intangible assets, Accumulated Amortization | -1,721 | -1,396 |
Finite-lived intangible assets, Net | 575 | 900 |
Weighted average remaining amortization period (years) | '1 year 4 months 6 days | '2 years 1 month 6 days |
Order backlog | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 640 | 640 |
Finite-lived intangible assets, Accumulated Amortization | -640 | -640 |
Finite-lived intangible assets, Net | ' | ' |
Weighted average remaining amortization period (years) | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net (Estimated Future Amortization Expense from Amortizable Intangible Assets) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure Goodwill And Intangible Assets Net Estimated Future Amortization Expense From Amortizable Intangible Assets Detail [Line Items] | ' | ' |
Remainder of 2013 | $4,240 | ' |
2014 | 14,471 | ' |
2015 | 7,854 | ' |
2016 | 5,704 | ' |
2017 | 4,505 | ' |
2018 and thereafter | 16,229 | ' |
Finite-lived intangible assets, Net | $53,003 | $62,888 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | $71,478,000 | $71,478,000 | ' | $71,478,000 | ' |
Goodwill impairment charge | ' | 27,700,000 | ' | ' | ' |
Amortization expense | 4,300,000 | ' | 4,800,000 | 13,400,000 | 13,000,000 |
Software and Services | ' | ' | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | ' | 15,200,000 | ' | ' | ' |
Semiconductor products | ' | ' | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | ' | $56,300,000 | ' | ' | ' |
Restructuring_Accrual_Accrued_
Restructuring Accrual (Accrued Restructuring Liabilities Including Related Activities) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued restructuring at beginning of the year | $262 |
Additions | 1,371 |
Cash payments and other non-cash adjustments | -1,526 |
Accrued restructuring at end of the year | 107 |
Severance and other benefits | ' |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued restructuring at beginning of the year | ' |
Additions | 1,371 |
Cash payments and other non-cash adjustments | -1,371 |
Accrued restructuring at end of the year | ' |
Excess Facility Related Costs | ' |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued restructuring at beginning of the year | 262 |
Additions | ' |
Cash payments and other non-cash adjustments | -155 |
Accrued restructuring at end of the year | $107 |
Restructuring_Accrual_Narrativ
Restructuring Accrual (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2012 |
Restructuring Cost And Reserve [Line Items] | ' | ' |
Additional restructuring accrual | $1.40 | $0.40 |
Lease expiration period | ' | 31-Mar-14 |
Equity_Summary_of_Stock_Option
Equity (Summary of Stock Options Granted and Outstanding) (Detail) (2007 Equity Incentive Plan and 2001 Stock Incentive Plan, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
2007 Equity Incentive Plan and 2001 Stock Incentive Plan | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Number of Shares Outstanding, Beginning balance | 4,197,704 |
Number of Shares Outstanding, Options granted | 242,375 |
Number of Shares Outstanding, Options exercised | -658,374 |
Number of Shares Outstanding, Options cancelled and forfeited | -144,982 |
Number of Shares Outstanding, Ending balance | 3,636,723 |
Weighted Average Exercise Price, Beginning balance | $16.83 |
Weighted Average Exercise Price, Options granted | $37.15 |
Weighted Average Exercise Price, Options exercised | $14.45 |
Weighted Average Exercise Price, Options cancelled and forfeited | $33.86 |
Weighted Average Exercise Price, Ending balance | $17.94 |
Equity_Assumptions_of_Fair_Val
Equity (Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option Pricing Model) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Risk-free interest rate | ' | 1.55% | ' | ' |
Risk-free interest rate, minimum | ' | ' | 0.32% | 0.57% |
Risk-free interest rate, maximum | ' | ' | 1.04% | 1.55% |
Expected life, years | ' | '4 years 6 months 11 days | ' | ' |
Dividend yield | ' | 0.00% | 0.00% | 0.00% |
Volatility | ' | 57.30% | ' | ' |
Volatility, minimum | ' | ' | 45.82% | 51.30% |
Volatility, maximum | ' | ' | 49.60% | 57.30% |
Minimum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected life, years | ' | ' | '3 years 9 months 7 days | '4 years 29 days |
Maximum | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Expected life, years | ' | ' | '4 years 6 months 11 days | '4 years 6 months 11 days |
Equity_Summary_of_Activity_of_
Equity (Summary of Activity of Restricted Stock) (Detail) (Two Thousand And Seven Equity Incentive Plan, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Two Thousand And Seven Equity Incentive Plan | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Number of Shares, Beginning balance | 1,823,563 |
Number of Shares, Granted | 1,019,420 |
Number of Shares, Issued and released | -673,424 |
Number of Shares, Cancelled and forfeited | -282,993 |
Number of Shares, Ending balance | 1,886,556 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $33.17 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $36.17 |
Weighted-Average Grant Date Fair Value Per Share, Issued and released | $32.24 |
Weighted-Average Grant Date Fair Value Per Share, Cancelled and forfeited | $32.18 |
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $35.27 |
Equity_Detail_of_StockBased_Co
Equity (Detail of Stock-Based Compensation Expense) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $8,801 | $8,973 | $25,768 | $28,773 |
Cost of revenue | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 216 | 471 | 655 | 1,539 |
Research and development | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 4,899 | 4,259 | 13,682 | 12,761 |
Sales, general and administrative | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $3,686 | $4,243 | $11,431 | $14,473 |
Equity_Reconciliation_of_Chang
Equity (Reconciliation of Changes in Equity) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes In Stockholders Equity [Line Items] | ' | ' | ' | ' |
Equity Attributable to the Company, Balance beginning | ' | ' | $244,092 | ' |
Attributable to non-controlling interest, Balance beginning | ' | ' | -1,030 | ' |
Total Equity, Balance beginning | ' | ' | 243,062 | ' |
Common stock issued in connection with exercises of stock options | ' | ' | 9,528 | 6,647 |
Stock-based compensation | ' | ' | 25,847 | ' |
Net income (loss) attributable to the Company | 4,336 | -8,125 | -3,152 | -33,793 |
Net loss Attributable to non-controlling interest | -3,421 | ' | -8,025 | ' |
Net loss | 915 | -8,125 | -11,177 | -33,793 |
Equity Attributable to the Company, Balance Ending | 276,315 | ' | 276,315 | ' |
Attributable to non-controlling interest, Balance Ending | -9,055 | ' | -9,055 | ' |
Total Equity Balance, Ending | 267,260 | ' | 267,260 | ' |
Equity Attributable To Parent | ' | ' | ' | ' |
Changes In Stockholders Equity [Line Items] | ' | ' | ' | ' |
Common stock issued in connection with exercises of stock options | ' | ' | 9,528 | ' |
Stock-based compensation | ' | ' | $25,847 | ' |
Equity_Narrative_Detail
Equity (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Estimated weighted-average grant date fair value of options granted | $13.03 | $14.91 | $14.79 |
2007 Equity Incentive Plan and 2001 Stock Incentive Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost, net of estimated forfeitures | ' | $6.80 | ' |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | ' | '2 years 3 months 11 days | ' |
Two Thousand And Seven Equity And Two Thousand And One Stock Incentive Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost, net of estimated forfeitures | ' | $53.60 | ' |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | ' | '2 years 6 months 18 days | ' |
Income_Taxes_Provision_for_Ben
Income Taxes (Provision for (Benefit from) Income Taxes and Effective Tax Rates) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure Income Taxes Provision For Benefit From Income Taxes And Effective Tax Rates Detail [Line Items] | ' | ' | ' | ' |
Income (loss) before income taxes | $1,629 | ($9,844) | ($9,360) | ($38,887) |
Provision for (benefit from) income taxes | $714 | ($1,719) | $1,817 | ($5,094) |
Effective tax rate | 43.80% | 17.50% | -19.40% | 13.10% |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Disclosure Income Taxes Narrative Detail [Line Items] | ' | ' |
Unrecognized tax benefits for income taxes | $14.80 | $12.70 |
Unrecognized tax benefit that would impact effective tax rate | $1.30 | ' |
Recovered_Sheet1
Segment and Geographic Information (Sales by Geography) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | $79,124 | $61,081 | $222,858 | $169,111 |
United States | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 22,391 | 18,091 | 69,605 | 51,089 |
China | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 20,574 | 16,757 | 54,243 | 48,346 |
Korea | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 8,671 | 3,773 | 23,311 | 9,774 |
Mexico | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 7,135 | 2,809 | 16,700 | 6,539 |
Finland | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 6,051 | 631 | 12,117 | 662 |
Taiwan | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 5,822 | 7,313 | 18,530 | 19,635 |
Japan | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 2,154 | 3,741 | 6,900 | 8,724 |
Malaysia | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | 3,877 | 3,935 | 10,636 | 12,099 |
Other Countries | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Sales | $2,449 | $4,031 | $10,816 | $12,243 |
Recovered_Sheet2
Segment and Geographic Information (Long Lived Assets) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $25,776 | $30,692 |
United States | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 21,744 | 27,678 |
All Other Countries | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $4,032 | $3,014 |
Recovered_Sheet3
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Lease Agreements) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Capital Leased Assets [Line Items] | ' | ' |
Remainder of 2013 | $6,470 | ' |
2014 | 16,500 | ' |
2015 | 13,375 | ' |
2016 | 9,377 | ' |
2017 | 4,247 | ' |
2018 thereafter | 8,959 | ' |
Total | 58,928 | ' |
Current portion of the obligations | 11,755 | 16,500 |
Long-term portion of obligations | 18,268 | 24,832 |
Interest component | 3.75% | ' |
Capital Lease And Technology License Obligations | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Remainder of 2013 | 5,436 | ' |
2014 | 11,817 | ' |
2015 | 9,258 | ' |
2016 | 5,150 | ' |
Total | 31,661 | ' |
Less: Interest component (3.75% annual rate) | 1,638 | ' |
Present value of minimum lease payment | 30,023 | ' |
Operating Leases | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Remainder of 2013 | 1,034 | ' |
2014 | 4,683 | ' |
2015 | 4,117 | ' |
2016 | 4,227 | ' |
2017 | 4,247 | ' |
2018 thereafter | 8,959 | ' |
Total | $27,267 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | |
Variable Interest Entity, Primary Beneficiary | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||||||
2345 Lease | San Jose California | First Twelve Months | Thereafter | Thirteen through twenty four months | |||||||||
2345 Lease | 2345 Lease | 2345 Lease | |||||||||||
sqft | sqft | ||||||||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential contractual settlement | $1,250,000 | ' | ' | $1,250,000 | ' | $1,250,000 | ' | ' | ' | ' | ' | ' | ' |
Payment for settlement payment | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | ' | ' | ' | ' | ' |
Operating leases, rent expense | 1,300,000 | 1,400,000 | ' | 3,700,000 | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Purchase Commitment, Amount | ' | ' | ' | 5,500,000 | ' | ' | 6,100,000 | ' | ' | ' | ' | ' | ' |
Settlement Agreement Payment Frequency Installment Period | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Long-term purchase commitment minimum annual spending amount | ' | ' | ' | 2,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term purchase commitment, year of maturity | ' | ' | ' | 'P2Y | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of leased property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,440 | 110,881 | ' |
Lease term | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' |
Lease start date | ' | ' | ' | ' | ' | ' | ' | ' | 1-Oct-14 | ' | ' | ' | ' |
Lease expiration period | ' | ' | ' | ' | ' | ' | ' | ' | '96 months | ' | ' | ' | ' |
Lease expiration period | ' | ' | 31-Mar-14 | ' | ' | ' | ' | ' | ' | 1-Mar-19 | ' | ' | ' |
Lease agreement monthly payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $120,000 | ' | $250,000 |
Annual increase in lease rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' |