Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 18, 2014 | Jun. 28, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'CAVM | ' | ' |
Entity Registrant Name | 'CAVIUM, INC. | ' | ' |
Entity Central Index Key | '0001175609 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 52,589,412 | ' |
Entity Public Float | ' | ' | $1.80 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $127,763 | $76,784 |
Accounts receivable, net of allowances of $933 and $991, respectively | 43,636 | 33,567 |
Inventories | 45,768 | 46,508 |
Prepaid expenses and other current assets | 6,491 | 4,865 |
Assets held for sale | ' | 2,609 |
Deferred tax assets | ' | 568 |
Total current assets | 223,658 | 164,901 |
Property and equipment, net | 28,494 | 30,692 |
Intangible assets, net | 43,240 | 62,888 |
Goodwill | 71,478 | 71,478 |
Deferred tax assets, net of current portion | 61 | 449 |
Other assets | 1,054 | 1,096 |
Total assets | 367,985 | 331,504 |
Current liabilities: | ' | ' |
Accounts payable | 23,467 | 16,083 |
Other accrued expenses and other current liabilities | 9,836 | 8,680 |
Deferred revenue | 8,669 | 12,944 |
Notes payable and other | 13,512 | 1,012 |
Capital lease and technology license obligations | 17,103 | 16,500 |
Total current liabilities | 72,587 | 55,219 |
Notes payable, net of current portion | ' | 4,000 |
Capital lease and technology license obligations, net of current portion | 16,292 | 24,832 |
Deferred tax liability | 1,931 | 2,421 |
Other non-current liabilities | 2,344 | 1,970 |
Total liabilities | 93,154 | 88,442 |
Commitments and contingencies (Note 12) | ' | ' |
Equity | ' | ' |
Preferred stock, par value $0.001: 10,000,000 shares authorized, no shares issued and outstanding | ' | ' |
Common stock, par value $0.001: 200,000,000 shares authorized; 52,221,251 and 50,630,991 shares issued and outstanding, respectively | 53 | 51 |
Additional paid-in capital | 443,588 | 398,133 |
Accumulated deficit | -157,057 | -154,092 |
Total stockholders' equity attributable to the Company | 286,584 | 244,092 |
Non-controlling interest | -11,753 | -1,030 |
Total equity | 274,831 | 243,062 |
Total liabilities and equity | $367,985 | $331,504 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowances for accounts receivable | $933 | $991 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 52,221,251 | 50,630,991 |
Common stock, shares outstanding | 52,221,251 | 50,630,991 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net revenue | $81,135 | $79,124 | $74,204 | $69,530 | $66,369 | $61,081 | $55,287 | $52,743 | $303,993 | $235,480 | $259,205 |
Cost of revenue | 29,059 | 28,516 | 30,945 | 26,159 | 25,049 | 24,796 | 24,749 | 28,008 | 114,679 | 102,602 | 104,281 |
Gross profit | 52,076 | 50,608 | 43,259 | 43,371 | 41,320 | 36,285 | 30,538 | 24,735 | 189,314 | 132,878 | 154,924 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | 36,127 | 33,630 | 32,424 | 32,415 | 29,318 | 27,444 | 26,123 | 27,058 | 134,596 | 109,943 | 92,197 |
Sales, general and administrative | 17,871 | 14,833 | 16,144 | 15,240 | 21,608 | 19,213 | 18,489 | 12,484 | 64,088 | 71,794 | 66,771 |
Goodwill impairment | ' | ' | ' | ' | 27,680 | ' | ' | ' | ' | 27,680 | ' |
Total operating expenses | 53,998 | 48,463 | 48,568 | 47,655 | 78,606 | 46,657 | 44,612 | 39,542 | 198,684 | 209,417 | 158,968 |
Loss from operations | -1,922 | 2,145 | -5,309 | -4,284 | -37,286 | -10,372 | -14,074 | -14,807 | -9,370 | -76,539 | -4,044 |
Other expense, net: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | -395 | -390 | -375 | -342 | -581 | -11 | -22 | -32 | -1,502 | -646 | -229 |
Other, net | -74 | -126 | -418 | -261 | -164 | 115 | -14 | -94 | -879 | -157 | -179 |
Total other expense, net | -469 | -516 | -793 | -603 | -745 | 104 | -36 | -126 | -2,381 | -803 | -408 |
Loss before income taxes | -2,391 | 1,629 | -6,102 | -4,887 | -38,031 | -10,268 | -14,110 | -14,933 | -11,751 | -77,342 | -4,452 |
Provision for (benefit from) income taxes | 120 | 714 | 677 | 426 | 41,415 | -1,719 | -2,271 | -1,104 | 1,937 | 36,321 | -4,485 |
Net income (loss) | -2,511 | 915 | -6,779 | -5,313 | -79,446 | -8,549 | -11,839 | -13,829 | -13,688 | -113,663 | 33 |
Net loss attributable to non-controlling interest | -2,698 | -3,421 | -2,475 | -2,129 | -607 | -424 | ' | ' | -10,723 | -1,031 | ' |
Net income (loss) attributable to the Company | $187 | $4,336 | ($4,304) | ($3,184) | ($78,839) | ($8,125) | ($11,839) | ($13,829) | ($2,965) | ($112,632) | $33 |
Earnings per share attributable to the Company: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss ) per common share, basic | $0 | $0.08 | ($0.08) | ($0.06) | ($1.56) | ($0.16) | ($0.24) | ($0.28) | ($0.06) | ($2.26) | $0 |
Shares used in computing basic net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | 51,596 | 49,886 | 48,311 |
Net income (loss) per common share, diluted | $0 | $0.08 | ($0.08) | ($0.06) | ($1.56) | ($0.16) | ($0.24) | ($0.28) | ($0.06) | ($2.26) | $0 |
Shares used in computing diluted net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | 51,596 | 49,886 | 50,771 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Non-controlling Interest |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2010 | $234,610 | $46 | $276,057 | ($41,493) | ' |
Beginning Balance, Shares at Dec. 31, 2010 | ' | 46,338,336 | ' | ' | ' |
Common stock issued in connection with exercises of stock options | 12,062 | 1 | 12,061 | ' | ' |
Common stock issued in connection with exercises of stock options, Shares | ' | 1,265,016 | ' | ' | ' |
Common stock issued in connection with vesting of restricted stock units | 1 | 1 | ' | ' | ' |
Common stock issued in connection with vesting of restricted stock units, Shares | ' | 693,735 | ' | ' | ' |
Issuance of common stock in connection with business acquisition | 35,363 | 1 | 35,362 | ' | ' |
Issuance of common stock in connection with business acquisition, Shares | ' | 806,265 | ' | ' | ' |
Deferred stock-based compensation | -2,105 | ' | -2,105 | ' | ' |
Stock-based compensation | 30,729 | ' | 30,729 | ' | ' |
Net income (loss) | 33 | ' | ' | 33 | ' |
Ending Balance at Dec. 31, 2011 | 310,693 | 49 | 352,104 | -41,460 | ' |
Ending Balance, Shares at Dec. 31, 2011 | ' | 49,103,352 | ' | ' | ' |
Common stock issued in connection with exercises of stock options | 8,301 | 1 | 8,300 | ' | ' |
Common stock issued in connection with exercises of stock options, Shares | ' | 645,104 | ' | ' | ' |
Common stock issued in connection with vesting of restricted stock units | 1 | 1 | ' | ' | ' |
Common stock issued in connection with vesting of restricted stock units, Shares | ' | 882,535 | ' | ' | ' |
Acceleration of unvested shares | 1,321 | ' | 1,321 | ' | ' |
Stock-based compensation | 36,408 | ' | 36,408 | ' | ' |
Capital contribution by non-controlling interest | 1 | ' | ' | ' | 1 |
Net income (loss) | -113,663 | ' | ' | -112,632 | -1,031 |
Ending Balance at Dec. 31, 2012 | 243,062 | 51 | 398,133 | -154,092 | -1,030 |
Ending Balance, Shares at Dec. 31, 2012 | ' | 50,630,991 | ' | ' | ' |
Common stock issued in connection with exercises of stock options | 10,827 | 1 | 10,826 | ' | ' |
Common stock issued in connection with exercises of stock options, Shares | ' | 723,047 | ' | ' | ' |
Common stock issued in connection with vesting of restricted stock units | 1 | 1 | ' | ' | ' |
Common stock issued in connection with vesting of restricted stock units, Shares | ' | 867,213 | ' | ' | ' |
Stock-based compensation | 34,629 | ' | 34,629 | ' | ' |
Net income (loss) | -13,688 | ' | ' | -2,965 | -10,723 |
Ending Balance at Dec. 31, 2013 | $274,831 | $53 | $443,588 | ($157,057) | ($11,753) |
Ending Balance, Shares at Dec. 31, 2013 | ' | 52,221,251 | ' | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($13,688) | ($113,663) | $33 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Stock-based compensation expense | 34,598 | 37,196 | 31,256 |
Depreciation and amortization | 40,993 | 31,972 | 25,673 |
Write-down of intangible assets | ' | 5,570 | 3,480 |
Change in contingent earn-out liability | ' | ' | -4,564 |
Deferred income taxes | 743 | 35,553 | -4,992 |
Gain on sale of held for sale assets | -747 | ' | ' |
Loss on disposal of property and equipment | 71 | 265 | ' |
(Gain) loss on disposition of certain consumer product assets | -1,000 | 2,728 | ' |
Goodwill impairment | ' | 27,680 | ' |
Changes in assets and liabilities, net of effects of acquisitions: | ' | ' | ' |
Accounts receivable, net | -10,069 | 4,272 | -7,927 |
Inventories | 788 | -4,823 | -6,380 |
Prepaid expenses and other current assets | -1,321 | -1,688 | -754 |
Other assets | 42 | 463 | -195 |
Accounts payable | 7,685 | 3,312 | -6,320 |
Deferred revenue | -4,275 | 1,742 | -4,159 |
Accrued expenses and other current and non-current liabilities | 2,014 | -2,286 | 504 |
Net cash provided by operating activities | 55,834 | 28,293 | 25,655 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -8,806 | -13,180 | -11,764 |
Purchases of intangible assets | -3,833 | -4,901 | -6,730 |
Proceeds received from sale of held for sale assets | 3,350 | ' | ' |
Proceeds received from disposition of certain consumer product assets | 1,000 | ' | ' |
Acquisitions of businesses, net of cash acquired | ' | ' | -30,780 |
Net cash used in investing activities | -8,289 | -18,081 | -49,274 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock upon exercise of options | 10,827 | 8,301 | 12,062 |
Principal payment of capital lease and technology license obligations | -15,893 | -9,966 | -15,891 |
Proceeds from notes payable and convertible security from non-controlling interest of the VIE | 9,500 | 5,012 | ' |
Payment of notes payable to non-controlling interest of the VIE | -1,000 | ' | ' |
Net cash provided by (used in) financing activities | 3,434 | 3,347 | -3,829 |
Net increase (decrease) in cash and cash equivalents | 50,979 | 13,559 | -27,448 |
Cash and cash equivalents, beginning of period | 76,784 | 63,225 | 90,673 |
Cash and cash equivalents, end of period | 127,763 | 76,784 | 63,225 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for interest | 1,242 | 67 | 229 |
Cash paid for taxes | 1,335 | 1,048 | 468 |
Supplemental disclosure of cash flows from investing activities | ' | ' | ' |
Property and equipment and intangible assets acquired included in accounts payable, other accrued expense and other current liabilities | 264 | 1,341 | 487 |
Supplemental disclosure of cash flow from financing activities: | ' | ' | ' |
Property and equipment and intangible assets acquired included in capital lease and technology license obligations | 5,860 | 34,227 | ' |
Issuance of common stock in connection with acquisition | ' | ' | $35,363 |
Organization_And_Significant_A
Organization And Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Organization And Significant Accounting Policies | ' | |||||||
1. Organization and Significant Accounting Policies | ||||||||
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 Consolidation | ||||||||
The 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 Consolidated Financial Statements for detailed discussions of the VIE. All significant intercompany transactions and balances have been eliminated in consolidation. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. | ||||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with an original or remaining maturity of 90 days or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of an investment in a money market fund. | ||||||||
Allowance for Doubtful Accounts | ||||||||
The Company reviews its allowance for doubtful accounts by assessing individual accounts receivable over a specific age and amount. The Company’s allowance for doubtful accounts were not significant as of December 31, 2013 and 2012. | ||||||||
Inventories | ||||||||
Inventories consist of work-in-process and finished goods. Inventories not related to an acquisition are stated at the lower of cost (determined using the first-in, first-out method), or market value (estimated net realizable value). Inventories from acquisitions are stated at fair value at the date of acquisition. The Company writes down excess and obsolete inventory based on its age and forecasted demand, generally over a 12 month period, which includes estimates taking into consideration the Company’s outlook on uncertain events such as market and economic conditions, technology changes, new product introductions and changes in strategic direction. Actual demand may differ from forecasted demand and such differences may have a material effect on recorded inventory values. Inventory write-downs are not reversed until the related inventories have been sold or scrapped. | ||||||||
Property and Equipment | ||||||||
Property and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of estimated useful lives or unexpired lease term. Additions and improvements that increase the value or extend the life of an asset are capitalized. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to income. Ordinary repairs and maintenance costs are expensed as incurred. | ||||||||
Estimated | ||||||||
Useful Lives | ||||||||
Software, computer and other equipment | 1 to 5 years | |||||||
Test equipment and mask costs | 1 to 3 years | |||||||
Furniture, office equipment and leasehold improvements | 1 to 5 years | |||||||
The Company capitalizes the cost of fabrication masks that are reasonably expected to be used during production manufacturing. Such amounts are included within property and equipment and are depreciated over a period of 12 to 24 months and recorded as a component of cost of revenue. If the Company does not reasonably expect to use the fabrication mask during production manufacturing, the related mask costs are expensed to research and development in the period in which the costs are incurred. | ||||||||
Concentration of Risk | ||||||||
The Company’s products are currently manufactured, assembled and tested by third-party contractors in Asia. There are no long-term agreements with any of these contractors. A significant disruption in the operations of one or more of these contractors would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations. | ||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company deposits cash with credit worthy financial institutions. The Company has not experienced any losses on its deposits of cash. Management believes that the financial institutions are reputable and, accordingly, minimal credit risk exists. The Company follows an established investment policy and set of guidelines to monitor, manage and limit the Company’s exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits the Company’s exposure to any one issuer, as well as the maximum exposure to various asset classes. | ||||||||
A majority of the Company’s accounts receivable are derived from customers headquartered in the United States. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable. | ||||||||
Summarized below are individual customers whose accounts receivable balances were 10% or higher of the consolidated gross receivable: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Percentage of gross accounts receivable | ||||||||
Phoenics Electronics | 13 | % | * | |||||
Flextronics | 13 | % | * | |||||
Huawei Technologies | 10 | % | * | |||||
* | Represents less than 10% of the gross accounts receivable for the respective period end. | |||||||
Cisco Systems, Inc. accounted for 18.6%, 24.3% and 24.0% of the Company’s net revenue in 2013, 2012 and 2011, respectively. No other customer accounted for more than 10% of the Company’s net revenue in 2013, 2012 and 2011. | ||||||||
Business Combinations | ||||||||
The Company accounts for business combinations using the purchase method of accounting. The Company determines the recognition of intangible assets based on the following criteria: (i) the intangible asset arises from contractual or other rights; or (ii) the intangible is separable or divisible from the acquired entity and capable of being sold, transferred, licensed, returned or exchanged. In accordance with the guidance provided under business combinations, the Company allocates the purchase price of business combinations to the tangible assets, liabilities and intangible assets acquired, including in-process research and development, or IPR&D, based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. The Company’s valuation assumption of acquired net assets requires significant estimates, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets includes future expected cash flows from customer contracts, customer lists, and distribution agreements and acquired developed technologies, expected costs to develop IPR&D into commercially viable products, estimated cash flows from projects when completed and discount rates. The Company estimates the fair value based upon assumptions the Company believes to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. | ||||||||
Goodwill and intangible assets | ||||||||
Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets and liabilities assumed. The Company evaluates goodwill for impairment at the reporting unit level at least on an annual basis in the fourth quarter of the calendar year or whenever events and changes in circumstances suggest that the carrying amount may not be recoverable from its estimated future cash flow. The Company performs a qualitative assessment to determine if any events have occurred or circumstances exist that would indicate that it is more-likely-than-not that a goodwill impairment exists. The qualitative factors include, but are not limited to: (a) macroeconomic conditions; (b) industry and market considerations ; (c) overall financial performance; (d) a significant adverse change in legal factors or in the business climate; (e) an adverse action or assessment by a regulator; (f) relevant entity-specific events including changes in management, strategy or customers; (g) a more-likely-than-not expectation of sale or disposal of a reporting unit or a significant portion thereof; or (h) sustained decrease in share price. | ||||||||
If any indicators exist based on the qualitative analysis that it is more-likely-than-not that a goodwill impairment exists, a two-step impairment test is used to identify potential goodwill impairment and measure the amount of the goodwill impairment loss to be recognized. In the first step, the fair value of each reporting unit is compared to its carrying value to determine if the goodwill is impaired. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, then goodwill is not impaired and no further testing is required. If the carrying value of the net assets assigned to the reporting unit were to exceed its fair value, then the second step is performed to determine the implied fair value of the reporting unit’s goodwill and an impairment loss is recorded for an amount equal to the difference between the implied fair value and the carrying value of the goodwill. Determining the fair value of each reporting unit is judgmental in nature and requires the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions that are believed to be reasonable but are uncertain and subject to changes in market conditions. The Company generally uses two approaches to value its reporting units, the income approach and market approach. The income approach is based on discounted cash flows which were derived from internal forecasts and economic expectations. Key assumptions used to determine the fair value under the income approach include the cash flow period, terminal values based on a terminal growth rate and the discount rate. The market approach utilizes valuation multiples based on operating and valuation metrics from comparable companies in the industry. Certain estimates of discounted cash flows involve businesses with limited financial history and with developing revenue models which increase the risk of differences between the projected and actual performance. | ||||||||
Impairment of Long-Lived Assets | ||||||||
The Company reviews long-lived assets, including property and equipment and intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets (or asset group) may not be fully recoverable. Whenever events or changes in circumstances suggest that the carrying amount of long-lived assets may not be recoverable, the Company estimates the future cash flows expected to be generated by the assets (or asset group) from its use or eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Significant management judgment is required in the grouping of long-lived assets and forecasts of future operating results that are used in the discounted cash flow method of valuation. If our actual results, or the plans and estimates used in future impairment analyses are lower than the original estimates used to assess the recoverability of these assets, the Company could incur additional impairment charges. | ||||||||
Revenue Recognition | ||||||||
The Company derives its revenue from sales of semiconductor products and sales of software licenses and services. The Company recognizes revenue when all of the following criteria have been met: (i) persuasive evidence of a binding arrangement exists, (ii) delivery has occurred or service has been rendered, (iii) the price is deemed fixed or determinable and free of contingencies and significant uncertainties, and (iv) collection is reasonably assured. The price is considered fixed or determinable at the execution of an agreement, based on specific products and quantities to be delivered at specified prices, which is often memorialized with a customer purchase order. Agreements with non-distributor customers do not include rights of return or acceptance provisions. The Company assesses the ability to collect from the Company’s customers based on a number of factors, including credit worthiness and any past transaction history of the customer. | ||||||||
Shipping charges billed to customers are included in semiconductor products revenue and the related shipping costs are included in cost of revenue. The Company generally recognizes revenue at the time of shipment to the Company’s customers. Revenue from the sales of semiconductor products consists of sales of the Company’s products to networking original equipment manufacturers, or OEMs, their contract manufacturers or distributors. Initial sales of the Company’s products for a new design are usually made directly to networking OEMs as they design and develop their product. Once their design enters production, they often outsource their manufacturing to contract manufacturers that purchase the Company’s products directly from the Company or from the Company’s distributors. | ||||||||
Revenue is recognized upon shipment for sales to distributors with limited rights of returns and price protection if the Company concludes it can reasonably estimate the credits for returns and price adjustments issuable. The Company records an estimated allowance, at the time of shipment, based on the Company’s historical patterns of returns and pricing credits of sales recognized upon shipment. The credits issued to distributors or other customers have historically not been material. The inventory at these distributors at the end of the period may fluctuate from time to time mainly due to the OEM production ramps or new customer demands. | ||||||||
Revenue and costs relating to product sales to distributors are deferred if the Company grants more than limited rights of returns and price credits or if it cannot reasonably estimate the level of returns and credits issuable. Deferred revenue, net of deferred cost on these shipments is reported as part of deferred revenue. Accounts receivable is recognized and inventory is relieved when the title to inventories are transferred, which typically takes place at the time of shipment, which is the point in time at which the Company has a legal enforceable right to collection under normal payment terms. | ||||||||
The Company also derives revenue from licensing software and providing software maintenance and support. Software arrangements typically include: (i) an end-user license fee paid in exchange for the use of the Company’s products for a specified period of time, generally 12 months (time-based license); and (ii) a support arrangement that provides for technical support and unspecified product updates and upgrades on a when and if available basis over the period of the related license. | ||||||||
Revenue from software and service arrangements is recorded when all of the following criteria are met: | ||||||||
Persuasive evidence of an arrangement exists — The Company requires either a written contract signed by both the customer and the Company, or a shrink-wrap or click-through contract whereby the customer agrees to the Company’s standard license terms, together with a non-cancellable purchase order, or a purchase order from these customers that have previously negotiated an end-user license arrangement or volume purchase arrangement. | ||||||||
Delivery has occurred — The Company delivers software to its customers electronically and considers delivery to have occurred once the access codes are provided that allow the customer to take immediate possession of the software. | ||||||||
The fee is fixed or determinable — The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. | ||||||||
Collectibility is reasonably assured — The Company assesses the collectibility of an arrangement on a case-by-case basis, based on the financial condition of the customer as well as any established payment history. | ||||||||
For multiple-element arrangements entered into prior to the adoption of the amended guidance on multiple-delivery arrangements effective January 1, 2011, which contains software or software related elements, the Company allocates revenue between elements in a multiple-element revenue arrangement based on vendor specific objective evidence, or VSOE, of fair value for each undelivered element. VSOE is based on the price charged when an element is sold separately. The Company enters into multiple-element arrangements that generally include time-based licenses and support that are typically not sold separately. Revenue from these arrangements is deferred and recognized ratably over the term that support is offered, which is typically 12 months. | ||||||||
The software arrangement may also include professional services, and these services may be purchased separately. Professional services engagements are billed on either a fixed-fee or time-and-materials basis. For fixed-fee arrangements, professional services revenue is recognized under the proportional performance method, with the associated costs included in cost of revenue. The Company estimates the proportional performance of the arrangements based on an analysis of progress toward completion. The Company periodically evaluates the actual status of each project to ensure that the estimates to complete each contract remain accurate, and a loss is recognized when the total estimated project cost exceeds project revenue. If the amount billed exceeds the amount of revenue recognized, the excess amount is recorded as deferred revenue. Revenue recognized in any period is dependent on progress toward completion of projects in progress. To the extent the Company is unable to estimate the proportional performance then the revenue is recognized on a completed performance basis. Revenue for time-and-materials engagements is recognized as the effort is incurred. | ||||||||
In addition, the Company also enters into multiple element arrangements, which consist of the combination of licensed software, support and professional services. Professional services in these arrangements do not involve significant customization, modification or development of software licensed under the time based licenses and are not essential to the functionality of this software. Provided that the total arrangement consideration is fixed and determinable at the inception of the arrangement, the Company allocates the total arrangement consideration to professional services and time based licenses bundled with support based on VSOE for professional services and VSOE for time based licenses bundled with support. Each unit of accounting is then accounted for under the applicable revenue recognition guidance. For arrangements with services that are essential to the functionality of the software, the license and related service revenues are recognized using the proportional performance method. | ||||||||
If the Company is unable to establish VSOE for each undelivered element of the arrangement, revenue for the entire arrangement is deferred until the time the Company is able to establish VSOE for the undelivered elements or there is only one remaining undelivered element. When the revenue is deferred, the direct costs incurred in relation to the professional services arrangement are deferred and is recorded as deferred costs in prepaid expenses and other current assets. | ||||||||
Effective January 1, 2011, the Company adopted the updated guidance on Multiple-Deliverable Revenue Arrangements. For transactions entered into subsequent to the adoption of this updated guidance, when a sales arrangement contains multiple elements with combinations of hardware, software, post contract support and/or professional services, and if the different elements in the arrangement qualify as separate units of accounting, the Company allocates total arrangement consideration to each element based on relative selling price. The selling price for a deliverable is based on its VSOE if available, third-party evidence, or TPE if VSOE is not available, or estimated selling price, or ESP if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for products and services revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. TPE is determined by evaluating competitor prices for similar deliverables when sold separately. Generally, the Company’s product offerings related to these arrangements contain a significant level of customization and contain significant portion of proprietary technology which are not exactly comparable to its peers, therefore pricing of products with similar functionality cannot be obtained, and thus the Company cannot determine TPE. When the Company is unable to establish selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The ESP is determined by considering multiple factors including, but not limited to pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. The adoption of this new standard did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. | ||||||||
Deferred revenue | ||||||||
The Company records deferred revenue for customer billings and advance payments received from customers before the performance obligations have been completed and/or services have been performed for products and/or service related agreements. In addition, the Company also records deferred revenue, net of deferred costs on shipments to a sell-through distributor. | ||||||||
Warranty Accrual | ||||||||
The Company’s products are generally subject to a one-year warranty period. The Company provides for the estimated future costs of replacement upon shipment of the product as cost of revenue. The warranty accrual is estimated based on cost of historical claims compared to associated historical product cost. In addition, the Company also provides a one-year warranty period on certain professional services. Such warranty accrual is estimated based on the resource hours needed to cover during the warranty period. | ||||||||
Research and Development | ||||||||
Research and development costs are expensed as incurred and primarily include personnel costs, prototype expenses, which include the cost of fabrication mask costs not reasonably expected to be used in production manufacturing, and allocated facilities costs as well as depreciation of equipment used in research and development. | ||||||||
Advertising | ||||||||
The Company expenses advertising costs as incurred. Advertising costs were $1.4 million, $0.9 million and $0.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
Operating Leases | ||||||||
The Company recognizes rent expense on a straight-line basis over the term of the lease. The difference between rent expense and rent paid is recorded as deferred rent in accrued expenses and other current and non-current liabilities on the consolidated balance sheets. | ||||||||
Accounting for Stock-Based Compensation | ||||||||
The Company applies the fair value recognition provisions of stock-based compensation. The Company recognizes the fair value of the awards on a straight-line basis over the options’ vesting periods. The Company uses the closing trading price of its common stock on the date of grant as the fair value of the awards of restricted stock units. The Company estimates the grant date fair value of stock option awards using the Black-Scholes option valuation model. The Black-Scholes option-pricing model used to determine the fair value of stock options requires various subjective assumptions, including expected volatility, expected term and the risk-free interest rates. For options granted prior to 2012, the expected volatility of common stock at the date of grant was based on reported market value data of a group of publicly traded companies, which were selected from certain market indices, that the Company believed was relatively comparable after consideration of their size, stage of life cycle, profitability, growth, and risk and return of investments. Further, the expected term was estimated using the simplified method as permitted by the provisions on stock-based compensation. Since the Company’s stock has been publicly traded since May 2007, the Company determined that it had sufficient trading history to use the historical volatility for option grants beginning in the first quarter of 2012. The Company recognizes stock-based compensation expense only for the portion of stock options that are expected to vest, based on the Company’s estimated forfeiture rate. If the actual number of future forfeitures differs from that estimated by management, the Company may be required to record adjustments to stock-based compensation expense in future periods. | ||||||||
Income Taxes | ||||||||
The Company provides for deferred income taxes under the asset and liability method. Under this method, deferred tax assets, including those related to tax loss carryforwards and credits, and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets when management cannot conclude that it is more-likely-than-not that the net deferred tax asset will be recovered. The valuation allowance was determined by assessing both positive and negative evidence to determine whether it is more-likely-than-not that deferred tax assets are recoverable; such assessment is required on a jurisdiction-by-jurisdiction basis. | ||||||||
Other Comprehensive Income (Loss) | ||||||||
Comprehensive income (loss) includes all changes in equity that are not the result of transactions with stockholders. For the years ended December 31, 2013, 2012 and 2011, there were no components of comprehensive income (loss) which were excluded from the net income (loss) and, therefore, no separate statement of comprehensive income (loss) has been presented. | ||||||||
Foreign Currency Translation | ||||||||
The Company uses the United States dollar as the functional currency for its subsidiaries. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at end-of-period exchange rates for monetary assets and liabilities, and historical exchange rates for nonmonetary assets and liabilities. Net revenue and expenses are remeasured at average exchange rates in effect during each period, except for those revenue, cost of sales and expenses related to the nonmonetary assets and liabilities, which are remeasured at historical exchange rates. The aggregate foreign exchange gains and losses, which are included in other, net in the consolidated statements of operations were not material for the years ended December 31, 2013, 2012 and 2011. | ||||||||
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 will 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 | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Net Income (Loss) Per Common Share | ' | |||||||||||
2. Net Income (Loss) Per Common Share | ||||||||||||
The Company calculates basic net income (loss) per common share by dividing net income by the weighted average number of common shares outstanding during the reporting period (excluding shares subject to repurchase). Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common and potentially dilutive common shares outstanding during the reporting period. Potentially dilutive securities are composed of incremental common shares issuable upon the exercise of stock options and restricted stock units. | ||||||||||||
The following table sets forth the computation of net income (loss) per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net income (loss) attributable to the Company | $ | (2,965 | ) | $ | (112,632 | ) | $ | 33 | ||||
Weighted average common shares outstanding - basic | 51,596 | 49,886 | 48,311 | |||||||||
Dilutive effect of employee stock plans | - | - | 2,460 | |||||||||
Weighted average common shares outstanding - diluted | 51,596 | 49,886 | 50,771 | |||||||||
Net income (loss )per common share, basic | $ | (0.06 | ) | $ | (2.26 | ) | $ | 0 | ||||
Net income (loss) per common share, diluted | $ | (0.06 | ) | $ | (2.26 | ) | $ | 0 | ||||
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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Options to purchase common stock | 3,552 | 4,198 | 507 | |||||||||
Restricted stock units | 1,776 | 1,824 | 28 | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Measurements | ' |
3. Fair Value Measurements | |
The Company’s financial assets and liabilities measured at fair value on a recurring basis include cash equivalents. Fair value is defined as the price that would be received from selling an asset and paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tiered fair value hierarchy is established as basis for considering the above assumptions and determining the inputs used in the valuation methodologies in measuring fair values. The three levels of inputs are defined as follows: | |
Level 1 – Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. | |
Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets. | |
Level 3 – Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use. | |
At December 31, 2013 and 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 $94.2 million and $50.2 million as of December 31, 2013 and 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. | |
The notes payable and the convertible security are carried at fair value and are a Level 3 measurement. See Note 5 of the Notes to Consolidated Financial Statements for further discussion of the fair value measurement. | |
There are no other financial assets and liabilities, except those disclosed in Notes 5 and 6 of Notes to Consolidated financial statements that require Level 2 or Level 3 fair value hierarchy measurements and disclosures. |
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Balance Sheet Components | ' | |||||||||||
4. Balance Sheet Components | ||||||||||||
Inventories | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Work-in-process | $ | 35,027 | $ | 33,418 | ||||||||
Finished goods | 10,741 | 13,090 | ||||||||||
$ | 45,768 | $ | 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 December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Test equipment and mask costs | $ | 34,457 | $ | 32,771 | ||||||||
Software, computer and other equipment | 34,945 | 35,563 | ||||||||||
Furniture, office equipment and leasehold improvements | 938 | 1,089 | ||||||||||
70,340 | 69,423 | |||||||||||
Less: accumulated depreciation and amortization | (41,846 | ) | (38,731 | ) | ||||||||
$ | 28,494 | $ | 30,692 | |||||||||
In 2013, certain fully depreciated property and equipment have been eliminated from both the gross and accumulated amount. Depreciation and amortization expense was $17.7 million, $14.8 million and $11.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The Company has capitalized $3.6 million, $4.8 million and $5.1 million of mask costs for the years ended December 31, 2013, 2012 and 2011, respectively. For the years ended December 31, 2013, 2012 and 2011, total amortization expense from masks was $4.5 million, $4.2 million and $2.7 million, respectively. Total mask cost, net of accumulated depreciation at December 31, 2013 and 2012 was $2.3 million and $3.3 million, 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 $16.2 and $16.8 million at December 31, 2013 and 2012, respectively. Amortization expense related to assets recorded under capital lease and certain financing agreements was $6.5 million, $4.8 million and $4.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Other accrued expenses and other current liabilities | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Accrued compensation and related benefits | $ | 4,262 | $ | 4,458 | ||||||||
Professional fees | 1,536 | 1,067 | ||||||||||
Customer deposits | 1,470 | 385 | ||||||||||
Restructuring related payables | 57 | 210 | ||||||||||
Income tax payable | 544 | 467 | ||||||||||
Deferred tax liability | 277 | - | ||||||||||
Other | 1,690 | 2,093 | ||||||||||
$ | 9,836 | $ | 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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 440 | $ | 412 | $ | 234 | ||||||
Accruals and adjustments | 206 | 467 | 802 | |||||||||
Settlements | (479 | ) | (439 | ) | (624 | ) | ||||||
Ending balance | $ | 167 | $ | 440 | $ | 412 | ||||||
Deferred revenue | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Services/support and maintenance | $ | 5,326 | $ | 8,017 | ||||||||
Software license/subscription | 1,176 | 2,529 | ||||||||||
Distributor deferred margin | 2,167 | 2,398 | ||||||||||
$ | 8,669 | $ | 12,944 | |||||||||
Other non-current liabilities | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Accrued rent | $ | 1,034 | $ | 659 | ||||||||
Income tax payable | 698 | 779 | ||||||||||
Restructuring related payables | - | 52 | ||||||||||
Other | 612 | 480 | ||||||||||
$ | 2,344 | $ | 1,970 | |||||||||
Business_Combinations_and_Dive
Business Combinations and Divestitures | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations and Divestitures | ' | |||||||
5. Business Combinations and Divestitures | ||||||||
Acquisition of Wavesat Inc. | ||||||||
In January 2011, the Company completed the acquisition of substantially all of the assets of Wavesat Inc. (“Wavesat”) including, but not limited to, certain intellectual property, all of Wavesat’s rights to, in and under customer contracts and other material agreements, inventory, fixed assets and assumed certain liabilities for a total purchase price of $10.5 million. | ||||||||
The acquisition has been accounted for using the purchase method of accounting in accordance with the business acquisition standards. Under the purchase accounting method, the total estimated purchase consideration of the acquisitions was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their relative fair values. The excess of the purchase consideration over the net tangible and identifiable intangible assets acquired and liabilities assumed was recorded as goodwill. The purchase price allocation was as follows: | ||||||||
Amount | ||||||||
(in thousands) | ||||||||
Net tangible liabilities | $ | (1,912 | ) | |||||
IPR&D | 800 | |||||||
Other identifiable intangible assets | 3,700 | |||||||
Goodwill | 7,912 | |||||||
Total purchase price | $ | 10,500 | ||||||
Acquired IPR&D assets were initially recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. The fair value of the IPR&D was determined based on an income approach using the discounted cash flow method. During the fourth quarter of 2011, the Company decided to abandon the related IPR&D project, and as such, the initially recognized fair value of the acquired IPR&D was charged to selling, general and administrative expenses within total operating expenses (see Note 6 of Notes to Consolidated Financial Statements). | ||||||||
Other identifiable intangible assets acquired included existing technology of $2.5 million, core technology of $0.9 million and trademarks of $0.3 million. The fair value of the existing technology was determined based on an income approach using the discounted cash flow method and its remaining useful life was based on historical product development cycles, the projected rate of technology attrition, and the pattern of projected economic benefit of the asset. The fair value of core technology and trademark were determined using a variation of income approach known as profit allocation method and its estimated useful lives were determined based on the future economic benefit expected to be received from the assets. During the year ended December 31, 2011, the Company wrote-down the carrying value of the existing technology, core technology and trademarks as a result of the assessment of the recoverability and future benefit from the assets. The write-down of the intangible assets was charged to selling, general and administrative expenses within total operating expenses (see Note 6 of Notes to Consolidated Financial Statements). | ||||||||
This acquisition added multicore wireless digital system processing to the Company’s embedded processor product line. This factor contributed to a purchase price resulting in the recognition of goodwill. Of the total acquired goodwill from Wavesat, approximately $4.2 million is expected to be deductible for tax purposes in future periods. | ||||||||
Acquisition of Celestial Semiconductor, Ltd. | ||||||||
In March 2011, the Company completed the acquisition of substantially all of the assets and assumed certain liabilities of Celestial Semiconductor, Ltd. (“Celestial Semiconductor) for an aggregate purchase price consideration, consisting of a mix of cash and shares of the Company’s common stock. In addition, the Company agreed to pay an additional earn-out consideration determined based on a certain percentage of the qualified earn-out revenue for the 12 months following the close of the acquisition as specified in the asset purchase agreement. | ||||||||
The acquisition has been accounted for using the purchase method of accounting in accordance with the business acquisition standards. Under the purchase accounting method, the total estimated purchase consideration of the acquisitions was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their relative fair values. The excess of the purchase consideration over the net tangible and identifiable intangible assets acquired and liabilities assumed was recorded as goodwill. | ||||||||
Following summarizes the total purchase price consideration: | ||||||||
Amount | ||||||||
(in thousands) | ||||||||
Cash consideration | $ | 20,606 | ||||||
Common stock (758,265 shares at $43.86 per share) | 33,258 | |||||||
Estimated fair value of the contingent earn-out consideration to other selling shareholders' | 3,432 | |||||||
Total | $ | 57,296 | ||||||
In February 2012, the Company filed an indemnity notice and escrow claim against Celestial Semiconductor for the escrow fund amounting to $4.4 million. The claim alleged Celestial Semiconductor breached certain representations made in the asset purchase agreement. The claim was settled in March 2012, and the full amount of the escrow was released to the Company. Since the related settlement claim does not establish a clear and direct link to the acquisition price, the Company reflected the receipt of the settlement proceeds in the consolidated statement of operations in the first quarter of 2012 as a credit to sales, general and administrative expenses within total operating expenses. | ||||||||
The total common stock issued to Celestial Semiconductor was determined by dividing the purchase price consideration of $35.0 million as per the asset purchase agreement with the Company’s average stock price of $43.41, or total equivalent common stock of 806,265 shares. The average stock price was determined based on the average closing price reported on NASDAQ for the 15 trading days ending five trading days prior to March 1, 2011. The Company, Celestial Semiconductor and a former executive of Celestial Semiconductor, who became an employee of the Company, entered into a holdback share agreement to hold 48,000 shares issued to such executive in an escrow account. Such holdback shares would vest and would be released to such executive over two years following the acquisition date subject to the terms and conditions of continued employment with the Company. Accordingly, the fair value of such shares at the closing date, approximately $2.1 million, was not included in the purchase price and was accounted for as liability-classified stock-based compensation and recognized ratably over the vesting period of two years. The vested shares are marked-to-market at each reporting period and the related compensation liability was recorded as deferred compensation in accrued expenses and other current liabilities and reclassified to equity upon release of the vested shares. During the first quarter of 2012, the Company released 4,733 vested shares in accordance with the vesting term per the holdback share agreement. In April 2012, the Company and such executive signed an employment separation agreement wherein as part of the employment separation package, the Company agreed to release the remaining holdback shares to such executive at the separation date. Accordingly, the Company recognized the stock-based compensation expense related to the accelerated vesting of such remaining holdback shares at the separation date. Total stock-based compensation expense recorded as sales, general and administrative expenses related to such holdback shares for years ended December 31, 2012 and 2011, amounted to $0.8 million and $0.6 million, respectively. | ||||||||
The contingent earn-out provision of up to $10.0 million was expected to be allocated approximately $5.0 million to certain employees of Celestial Semiconductor who became employees of the Company (“affected employees”) and approximately $5.0 million to other selling shareholders who did not become employees of the Company (“other selling shareholders”). The contingent earn-out was determined based on a certain percentage of the qualified earn-out revenue for the 12 months following the close of the acquisition as specified in the asset purchase agreement. The estimated initial fair value of the earn-out liability was determined using the weighted probabilities of the achievement of the qualified earn-out revenue discounted using the estimated cost of debt. This fair value measurement was based on significant sales inputs not observed in the market and thus represented a Level 3 measurement. | ||||||||
The initial fair value of the earn-out liability expected to be distributed to other selling shareholders amounted to $3.4 million and was accounted for as part of the purchase price and was recorded as acquisition related payables in other accrued expense and other current liabilities. The initial fair value of the earn-out liability to be distributed to the affected employees amounted to $3.4 million and was not considered to be a component of the purchase price. Instead, considering the terms of employment, compensation expense was recognized ratably over a one year period beginning on the acquisition date. As of the second quarter of 2011, the Company recorded $1.1 million as accrued compensation and related benefits in other accrued expense and other current liabilities. In accordance with the business combination guidance, any changes in the fair value of the contingent earn-out consideration subsequent to the acquisition date, including changes from events after the acquisition date, are recognized in earnings in the period the estimated fair value changes. During the third quarter of 2011, management determined that the qualifying earn-out revenue would more-likely-than-not be achieved due to a delay in the end customers’ product roll-out. As such, management assessed that the initial contingent earn-out liability totaling $4.6 million would likely not be paid out, and thus, the related liability was reversed within sales, general and administrative expenses within total operating expenses. The qualifying earn-out was not achieved within the earn-out period which expired in March 2012, the first year anniversary of the acquisition. | ||||||||
The purchase price allocation was as follows: | ||||||||
Amount | ||||||||
(in thousands) | ||||||||
Net tangible assets | $ | 436 | ||||||
IPR&D | 600 | |||||||
Other identifiable intangible assets | 20,000 | |||||||
Goodwill | 36,260 | |||||||
Total purchase price | $ | 57,296 | ||||||
Acquired IPR&D assets were initially recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. Upon successful completion of the development process for the acquired IPR&D projects, the asset would then be considered a finite-lived intangible asset and amortization of the asset will commence. The fair value of the IPR&D was determined based on an income approach using the discounted cash flow method. During the fourth quarter of 2011, the Company decided to abandon one of the two IPR&D projects. As such, the related initial fair value of such IPR&D project amounting to $0.3 million was charged to selling, general and administrative expense within total operating expenses. The other IPR&D project was completed with an initial fair value of $0.3 million was classified as part of finite-lived intangible assets, and is being amortized over the estimated useful life of 5 years. | ||||||||
Other identifiable intangible assets include acquired existing technology of $11.3 million, core technology of $3.0 million, customer contracts and relations of $4.6 million, trademarks of $1.0 million and order backlog of $0.1 million. The fair value of the existing technology and customer contracts and relationships were determined based on an income approach using the discounted cash flow method. The remaining useful life of existing technology was based on historical product development cycles, the projected rate of technology attrition, and the pattern of projected economic benefit of the asset. The remaining useful life of customer contracts and relationships was estimated based on customer attrition, new customer acquisition and future economic benefit of the asset. The fair value of core technology and trademark were determined using a variation of income approach known as profit allocation method and its estimated useful life was determined based on the future economic benefit expected to be received from the assets. The fair value of the order backlog was determined using a cost approach where the fair value was based on estimated sales and marketing expenses expected that would have to be incurred to regenerate the order backlog and its estimated useful life was determined based on the future economic benefit expected to be received from the asset. | ||||||||
With the acquisition of Celestial Semiconductor, the Company added capabilities to enable a processor family targeted for the market of converged media, gateway and wireless display applications. This factor contributed to a purchase price resulting in the recognition of goodwill. Of the total acquired goodwill from Celestial Semiconductor, approximately $19.3 million is expected to be deductible for tax purposes in future periods. | ||||||||
Pro forma financial information | ||||||||
The unaudited pro forma financial information in the table below summarizes the combined results of operations of the Company, Wavesat and Celestial Semiconductor. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of the comparable prior annual reporting period as presented: | ||||||||
Net | Net Loss | |||||||
Revenue | ||||||||
(in thousands) | ||||||||
Actual from acquisition dates to December 31, 2011 | $ | 4,015 | $ | (16,740 | ) | |||
Supplemental pro forma from January 1, 2011 to December 31, 2011 | 259,525 | (5,439 | ) | |||||
The supplemental pro forma information from January 1 to December 31, 2011 combines the historical results of the Company, Wavesat and Celestial Semiconductor for the year ended December 31, 2011, adjusted had the acquisition date been January 1, 2010. The supplemental pro forma net loss was adjusted to exclude acquisition related costs incurred by the Company, Wavesat and Celestial Semiconductor of $5.4 million, write-off of IPR&D of $1.1 million and write-down of intangible assets of $2.4 million; and excludes net credit related to the release of the contingent earn-out liability of $4.6 million. The supplemental pro forma net loss was also adjusted to include amortization of acquired intangibles of $0.8 million calculated from January 1, 2011 to the respective acquisition dates. | ||||||||
Variable Interest Entity | ||||||||
Between May 2012 and December 2013, the Company entered into several note purchase agreements with a VIE to provide cash advances. The Company has a purchase option to acquire the assets of the VIE on terms specified in one of the note purchase agreements. As of December 31, 2013, the Company had made cash advances of $5.0 million under four convertible notes receivable which, as amended, mature on August 31, 2014. In addition, third party investors (“non-controlling interest”) had made cash advances of $11.6 million under thirteen convertible notes receivable which mature on August 31, 2014. All the convertible notes bear interest at a rate of 6%, payable at maturity. Two of the convertible notes held by a third party investor with a principal amount of $1.0 million matured and were paid by the VIE in December 2013. Two of the convertible notes held by the Company are collateralized by a lien on the VIE’s assets. Pursuant to the convertible notes, in the event of a corporate transaction, as defined in the convertible notes, the holders of the convertible notes will be entitled to receive the principal plus a fixed return on their investment, while in case of a qualified equity financing of the VIE, as defined in the convertible notes, the outstanding principal balance plus the accrued interest on the convertible notes will be automatically converted into convertible preferred stock of the VIE at a discounted price. | ||||||||
All of the convertible notes are classified as a Level 3 liability due to the above mentioned features and therefore they are all measured and presented at fair value in the consolidated financial statements. Due to the fact that the VIE has issued the notes to multiple third party investors at the same terms and features, the fair value of the notes was determined to equal the carrying value. The prior year amount has been transferred from Level 2 to Level 3 for comparability purposes. | ||||||||
In December 2013, a third party investor exchanged its convertible note with a principal of $1.4 million and invested additional cash of $1.5 million with the VIE for a $2.9 million convertible security which has the same features as the convertible notes, with the exception of the requirement for repayment and interest. The Company has determined that for accounting purposes, the convertible security has derivative features, and as such, the Company estimated the fair value of the derivative features based on market approach using Level 3 inputs. The assumptions used in the fair value estimate are related to the probability of the aforementioned capital scenarios. The assumptions used in the fair value estimate are based, in part, on significant uncertainties, are difficult to predict and could differ materially in the future. Based on the most reasonable assumptions determined by management, the fair value of the derivative feature of the convertible security as of December 31, 2013 is approximately the same as the principal amount. Accordingly, the Company classified the $2.9 million convertible security as derivative liability within notes payable and other on the consolidated balance sheets. | ||||||||
The convertible notes and the derivative feature of the convertible security will be remeasured at each reporting period and, depending on the probability of the occurrence of the features mentioned above, the valuation of these instruments could range from their current fair value to approximately two times the principal amount of the convertible notes plus the accrued interest and the principal amount of the convertible security. | ||||||||
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 consolidated financial statements. The significant components of the VIE’s financial statements included in the Company’s consolidated financial statements as of December 31, 2013 include cash of $1.9 million; property and equipment and intangible assets of $6.7 million; accounts payable and accrued expenses of $3.4 million; notes payable and convertible security of $13.5 million; other short-term and long-term payable of $6.3 million and non-controlling interest of $11.8 million. As of December 31, 2012, the significant component of the VIE’s financial statements included in the Company’s consolidated financial statements include cash of $1.4 million, intangible assets of $1.0 million and notes payable of $5.0 million. For the years ended December 31, 2013 and 2012, the Company’s portion of the net loss of the VIE was $5.2 million and $3.2 million, respectively. | ||||||||
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 year ended December 31, 2013, the Company received total installment cash consideration of $1.0 million, which was recognized as a credit 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 | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill and Intangible Assets, Net | ' | ||||||||||||||||
6. Goodwill and Intangible Assets, Net | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The carrying value of the goodwill as of December 31, 2013 was $71.5 million, unchanged from the balance as of 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 annual goodwill impairment analysis performed in the fourth quarter of 2012, the Company had two reporting units, namely, semiconductor products unit and software and services unit. The result of the impairment test showed that goodwill impairment does not exist in its semiconductor products 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 unit and as such, the Company recorded a $27.7 million goodwill impairment charge in the fourth quarter of 2012. The carrying amount of the goodwill after the goodwill impairment charge at December 31, 2012 was $56.3 million in the semiconductor products unit and $15.2 million in the software and services reporting unit. | |||||||||||||||||
In the first step of the impairment test of the software and services unit performed in the annual impairment test in 2012, the fair value of the related reporting unit was compared to its carrying amount, including goodwill to determine if potential impairment existed. The fair value estimate in step one was determined using the weighted fair values derived from the income and market approach. The income approach was based on discounted cash flows which include assumptions for, among others, forecasted revenue, gross margins, working capital cash flows, growth rates, and long-term discount rates, all of which required significant judgment by management. The long-term discount rate used is based on the weighted average cost of capital adjusted for the relevant risks associated with business-specific characteristics and the uncertainty related to the business’s ability to execute on the projected cash flows. The assumptions took into account the current industry environment and its impact on the Company’s business. The market approach utilized valuation multiples based on operating and valuation metrics from comparable companies in the industry. | |||||||||||||||||
As a result of the first step of the goodwill impairment test, the Company determined that impairment existed within the software and services unit as the carrying amount of the related reporting unit exceeded its fair value. As such, the Company also assessed that it was more-likely-than-not that impairment of the long-lived tangible and intangible assets within the asset group existed prior to performing the second step of the goodwill impairment analysis and concluded that certain acquired intangible assets were impaired. See detailed discussions on “intangible asset, net” below. In the second step of the goodwill impairment analysis, the reporting unit’s fair value is allocated to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. Based on the Company’s analyses, the implied fair value of goodwill was lower than the carrying value of goodwill and as a result, the Company recorded a goodwill impairment charge in the fourth quarter of 2012 in the consolidated statement of operations. | |||||||||||||||||
The estimates and assumptions described above used to estimate the goodwill impairment charge was subjected to a high degree of bias and uncertainty. Different assumptions as to the Company’s future revenues, cost structure, growth rate and discount rate would result in estimated future cash flows that could be materially different than those considered in the impairment assessment performed. Any future fair value estimates for the Company’s reporting unit that are greater than the fair value estimate at the impairment test, will not result in a reversal of the impairment charges. | |||||||||||||||||
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 semiconductor product and software and services into one reporting unit. See related discussions in Note 11 of Notes to Consolidated Financial Statements. As such, beginning in the first quarter of 2013, the Company assessed 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 its carrying amount. | |||||||||||||||||
The Company performed the annual goodwill impairment analysis beginning of the fourth quarter of 2013 and concluded that it was more-likely-than-not that the fair value of the reporting unit, which is the Company as a whole, exceeded its carrying amount. In assessing the qualitative factors, the Company considered the impact of these key factors: (i) changes in the industry and competitive environment; (ii) market capitalization; (iii) stock price; and (iv) overall financial performance. Based on the foregoing, the first and second steps of the goodwill impairment test were unnecessary and goodwill was not impaired as of December 31, 2013. | |||||||||||||||||
Intangible assets, net | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Existing and core technology - product | $ | 42,086 | $ | (35,637 | ) | $ | 6,449 | 1.68 | |||||||||
Technology licenses | 68,175 | (32,015 | ) | 36,160 | 7.88 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,827 | ) | 164 | 1.3 | ||||||||||||
Trade name | 2,296 | (1,829 | ) | 467 | 1.1 | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 122,188 | $ | (78,948 | ) | $ | 43,240 | 6.87 | |||||||||
As of December 31, 2012 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(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 | 2.1 | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | 125,619 | (62,731 | ) | 62,888 | 6.57 | ||||||||||||
For 2013, the majority of the decrease in gross intangibles was related to fully amortized intangible assets that have been eliminated from both the gross and accumulated amounts. Amortization expenses were $23.3 million, $17.2 million and $13.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. The amortization expense for the year ended December 31, 2013 includes the effect of the change in the estimated useful lives of certain consumer product related intangible assets amounting to $6.2 million, or $0.12 earnings per share attributable to the Company. | |||||||||||||||||
No intangible impairment was recorded during the year ended December 31, 2013. As a result of the goodwill impairment test in 2012 as discussed above, the Company also evaluated the recoverability of its long-lived assets within its asset group. The determination of the recoverability is based on the estimated undiscounted cash flows expected to be generated from the long-lived asset group compared to the carrying amount of the long-lived asset group. The Company determined that the carrying value of the long-lived asset group was not recoverable as the carrying value of the long-lived asset group which contained the intangible assets exceeded the undiscounted cash flows of the long-lived asset group for a period of time commensurate with the remaining useful life of the primary asset of the group plus a salvage value of the asset group at the end of this period. The impairment loss was calculated by comparing the fair value of the intangible assets to their carrying value. In calculating the fair value of the intangible assets, the Company utilized discounted cash flow assumptions related to the acquired intangible assets in the long lived asset group. This fair value measurement was based on significant management judgment to forecast the future operating results, inputs not observed in the market and thus represented a Level 3 measurement. This resulted in an impairment charge for certain acquired intangible assets, primarily subscriber-base and customer contracts and relationships of $5.6 million recorded during the fourth quarter of 2012. The significant decline in fair value of the intangible assets was primarily attributable to the decline in forecasted revenue in the software and services reporting unit. During the year ended December 31, 2011, the Company wrote-off the acquired IPR&D of $1.1 million as a result of the abandonment of certain acquired IPR&D projects. In addition, the Company recorded an impairment loss related to certain acquired intangibles of $2.4 million as a result of the recoverability assessment using the expected cash flows from the cash generating group to which the assets belong. The impairment charges were recorded in sales, general and administrative expenses in the consolidated statement of operations. | |||||||||||||||||
The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | |||||||||||||||||
2014 | $ | 13,084 | |||||||||||||||
2015 | 6,474 | ||||||||||||||||
2016 | 4,367 | ||||||||||||||||
2017 | 3,195 | ||||||||||||||||
2018 | 3,057 | ||||||||||||||||
2019 and thereafter | 13,063 | ||||||||||||||||
$ | 43,240 | ||||||||||||||||
Restructuring_Accrual
Restructuring Accrual | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Restructuring Accrual | ' | ||||||||||||||||||||||||
7. Restructuring Accrual | |||||||||||||||||||||||||
The excess facility related restructuring accrual at the beginning of 2012 relates to the unused portion of operating lease facility from the acquisition of MontaVista Software, Inc. in 2009. During the second quarter of 2012, the Company settled with the landlord to buy-out the remaining lease term. | |||||||||||||||||||||||||
In the first quarter of 2012, the Company recorded a restructuring accrual of $0.4 million related to the unused leased facility in Canada. The lease will expire in March 2014. | |||||||||||||||||||||||||
In connection with a workforce reduction during the years ended December 31, 2013 and 2012, the Company incurred and settled $1.4 million and $1.2 million, respectively, in expense primarily related to severance and other related benefits. | |||||||||||||||||||||||||
A summary of the accrued restructuring liabilities including related activities for the periods presented are as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Severance and other benefits | Excess Facility Related Cost | Total | Severance and other benefits | Excess Facility Related Cost | Total | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Balance at beginning of the year | $ | - | $ | 262 | $ | 262 | $ | - | $ | 1,388 | $ | 1,388 | |||||||||||||
Additions | 1,371 | - | 1,371 | 1,245 | 420 | 1,665 | |||||||||||||||||||
Cash payments and other non-cash adjustments | (1,371 | ) | (205 | ) | (1,576 | ) | (1,245 | ) | (1,546 | ) | (2,791 | ) | |||||||||||||
Balance at end of the year | $ | - | $ | 57 | $ | 57 | $ | - | $ | 262 | $ | 262 | |||||||||||||
Current portion | $ | - | $ | 57 | $ | 57 | $ | - | $ | 210 | $ | 210 | |||||||||||||
Long-term portion | - | - | - | - | 52 | 52 | |||||||||||||||||||
Equity
Equity | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity | ' | ||||||||||||||||||||||||
8. Equity | |||||||||||||||||||||||||
Common and Preferred Stock | |||||||||||||||||||||||||
As of December 31, 2013, the Company is authorized to issue 200,000,000 shares of $0.001 par value common stock and 10,000,000 shares of $0.001 par value preferred stock. The Company is authorized to issue preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption and liquidation preferences. As of December 31, 2013 and 2012, no shares of preferred stock were outstanding. | |||||||||||||||||||||||||
2007 Stock Incentive Plan | |||||||||||||||||||||||||
Upon completion of its IPO in May 2007, the Company adopted the 2007 Stock Incentive Plan, the 2007 Plan, which reserved 5,000,000 shares of the Company’s common stock. The number of shares of the common stock reserved for issuance will be increased annually on January 1st each year for 10 years commencing from January 1, 2008 through January 1, 2017, by the lesser of (i) 5% of the total number of shares of the common stock outstanding on the applicable January 1st date or (ii) 5,000,000 shares. The board of directors may also act, prior to the first day of any fiscal year, to increase the number of shares as the board of directors shall determine, which number shall be less than each of (i) and (ii). The maximum number of shares that may be issued pursuant to the exercise of incentive stock options under the 2007 Plan is equal to 10,000,000 shares. As of December 31, 2013, there were 7,706,559 shares reserved for issuance under the 2007 Plan. The 2007 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards, and other forms of equity compensation (collectively, “stock awards”), and performance cash awards, all of which may be granted to employees (including officers), directors, and consultants or affiliates. Awards granted under the 2007 Plan vest at the rate specified by the plan administrator, for stock options, typically with 1/8th of the shares vesting six months after the date of grant and 1/48th of the shares vesting monthly thereafter over the next three and one half years and for restricted stocks typically with quarterly vesting over four years. The term of awards expires seven to ten years from the date of grant. As of December 31, 2013, 12,944,987 shares have been granted under the 2007 Plan. | |||||||||||||||||||||||||
2001 Stock Incentive Plan | |||||||||||||||||||||||||
The Company’s 2001 Stock Incentive Plan, the 2001 Plan, expired as of December 31, 2011, thus there were no outstanding shares reserved for issuance. Options granted under the 2001 Plan were either incentive stock options or non-statutory stock options as determined by the Company’s board of directors. Options granted under the 2001 Plan vested at the rate specified by the plan administrator, typically with 1/8th of the shares vesting six months after the date of grant and 1/48th of the shares vesting monthly thereafter over the next three and one half years to four and one half years. The term of option expire ten years from the date of grant. | |||||||||||||||||||||||||
Under the Company’s 2001 Plan, certain employees have the right to early-exercise unvested stock options, subject to rights held by the Company to repurchase unvested shares in the event of voluntary or involuntary termination. For options granted prior to March 2005, the Company has the right to repurchase any such shares at the shares’ original purchase price. For options granted after March 2005, the Company has the right to repurchase such shares at the lower of market value or the original purchase price. No outstanding unvested shares of common stock as of December 31, 2013 and 2012. | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
Detail related to stock option activity is as follows: | |||||||||||||||||||||||||
Number of Shares Outstanding | Weighted Average Exercise Price | ||||||||||||||||||||||||
Balance as of December 31, 2010 | 5,613,564 | $ | 12.34 | ||||||||||||||||||||||
Options granted | 403,960 | 37.81 | |||||||||||||||||||||||
Options exercised | (1,265,016 | ) | 9.54 | ||||||||||||||||||||||
Options cancelled and forfeited | (100,788 | ) | 15.35 | ||||||||||||||||||||||
Balance as of December 31, 2011 | 4,651,720 | 12.34 | |||||||||||||||||||||||
Options granted | 354,834 | 33.69 | |||||||||||||||||||||||
Options exercised | (645,104 | ) | 12.87 | ||||||||||||||||||||||
Options cancelled and forfeited | (163,746 | ) | 23.89 | ||||||||||||||||||||||
Balance as of December 31, 2012 | 4,197,704 | 16.83 | |||||||||||||||||||||||
Options granted | 242,375 | 37.15 | |||||||||||||||||||||||
Options exercised | (723,047 | ) | 14.95 | ||||||||||||||||||||||
Options cancelled and forfeited | (164,816 | ) | 34.36 | ||||||||||||||||||||||
Balance as of December 31, 2013 | 3,552,216 | 17.79 | |||||||||||||||||||||||
The aggregate intrinsic value for options exercised during the years ended December 31, 2013, 2012 and 2011, were $16.0 million, $12.6 million and $41.3 million, respectively, representing the difference between the closing price of the Company’s common stock at the date of exercise and the exercise price paid. | |||||||||||||||||||||||||
The following table summarizes information about stock options outstanding as of December 31, 2013: | |||||||||||||||||||||||||
Outstanding Options | Exercisable Options | ||||||||||||||||||||||||
Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Term | Weighted Average Exercise Price | Number of shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||||||
$ 0.30 - $1.50 | 114,669 | 1.42 | $ | 0.9 | 114,669 | $ | 0.9 | ||||||||||||||||||
3.04 - 3.04 | 563,549 | 2.22 | 3.04 | 563,549 | 3.04 | ||||||||||||||||||||
3.74 - 8.52 | 95,720 | 2.31 | 7.93 | 95,720 | 7.93 | ||||||||||||||||||||
10.32 - 10.32 | 765,745 | 2.1 | 10.32 | 765,745 | 10.32 | ||||||||||||||||||||
12.56 - 14.42 | 79,010 | 2.03 | 13.87 | 79,010 | 13.87 | ||||||||||||||||||||
14.80 - 14.80 | 445,994 | 1.21 | 14.8 | 445,994 | 14.8 | ||||||||||||||||||||
16.32 - 24.16 | 502,120 | 2.8 | 22.27 | 495,815 | 22.24 | ||||||||||||||||||||
24.99 - 42.01 | 985,409 | 4.77 | 34.34 | 579,393 | 32.83 | ||||||||||||||||||||
0.30 - 42.01 | 3,552,216 | 2.83 | $ | 17.79 | 3,139,895 | $ | 15.36 | $ | 61,217,211 | ||||||||||||||||
Exercisable | 3,139,895 | 2.5 | $ | 15.36 | $ | 60,983,467 | |||||||||||||||||||
Vested and expected to vest | 3,525,967 | 2.81 | $ | 17.65 | $ | 61,216,433 | |||||||||||||||||||
The aggregate intrinsic value for options outstanding at December 31, 2013, represents the difference between the weighted average exercise price and the closing price of the Company’s common stock at December 31, 2013, as reported on The NASDAQ Global Market, for all in the money options outstanding. | |||||||||||||||||||||||||
The fair value of each option grants for the years ended December 31, 2013, 2012 and 2011 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Risk-free interest rate | 0.32% to 1.04% | 0.57% to 1.55% | 0.59% to 1.64% | ||||||||||||||||||||||
Expected life | 3.77 to 4.53 years | 4.08 to 4.53 years | 4.53 years | ||||||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||||||
Volatility | 45.8% to 49.6% | 51.3% to 57.3% | 54.0% to 54.8% | ||||||||||||||||||||||
The estimated weighted-average grant date fair value of options granted for the years ended December 31, 2013, 2012 and 2011, were $14.91, $14.79 and $17.29 per share, respectively. | |||||||||||||||||||||||||
As of December 31, 2013, there is $5.6 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 2.23 years. | |||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||
The Company began issuing restricted stock units, or RSUs, in 2007. Shares are issued on the date the restricted stock units vest, and the fair value of the underlying stock on the dates of grant is recognized as stock-based compensation over a three or four-year vesting period. A summary of the activity of restricted stock for the related periods are presented below: | |||||||||||||||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||||||||||||||||||
Balance as of December 31, 2010 | 1,592,039 | $ | 22.8 | ||||||||||||||||||||||
Granted | 1,215,771 | 37.15 | |||||||||||||||||||||||
Issued and released | (693,735 | ) | 26.16 | ||||||||||||||||||||||
Cancelled and forfeited | (161,470 | ) | 25.42 | ||||||||||||||||||||||
Balance as of December 31, 2011 | 1,952,605 | 30.33 | |||||||||||||||||||||||
Granted | 1,165,136 | 34.23 | |||||||||||||||||||||||
Issued and released | (882,535 | ) | 29.34 | ||||||||||||||||||||||
Cancelled and forfeited | (411,643 | ) | 30.9 | ||||||||||||||||||||||
Balance as of December 31, 2012 | 1,823,563 | 33.17 | |||||||||||||||||||||||
Granted | 1,119,570 | 36.32 | |||||||||||||||||||||||
Issued and released | (867,213 | ) | 32.46 | ||||||||||||||||||||||
Cancelled and forfeited | (299,750 | ) | 32.29 | ||||||||||||||||||||||
Balance as of December 31, 2013 | 1,776,170 | 35.64 | |||||||||||||||||||||||
The total intrinsic value of the RSUs outstanding as of December 31, 2013 was $56.3 million, representing the closing price of the Company’s stock on December 31, 2013, multiplied by the number of non-vested RSUs expected to vest as of December 31, 2013. | |||||||||||||||||||||||||
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 December 31, 2013, there was $50.0 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 2.44 years. | |||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
The following table presents the detail of stock-based compensation expense amounts included in the consolidated statements of operations for each of the periods presented: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenue | $ | 951 | $ | 1,954 | $ | 1,781 | |||||||||||||||||||
Research and development | 18,577 | 16,729 | 13,829 | ||||||||||||||||||||||
Sales, general and administrative | 15,070 | 18,513 | 15,646 | ||||||||||||||||||||||
$ | 34,598 | $ | 37,196 | $ | 31,256 | ||||||||||||||||||||
The total stock-based compensation cost capitalized as part of inventory as of December 31, 2013 and 2012 was not significant. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
9. Income Taxes | |||||||||||||
The following table presents the provision for (benefit from) income taxes and the effective tax rates: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Loss before income taxes | $ | (11,751 | ) | $ | (77,342 | ) | $ | (4,452 | ) | ||||
Provision for (benefit from) income taxes | 1,937 | 36,321 | (4,485 | ) | |||||||||
Effective tax rate | -16.5 | % | -47 | % | 100.7 | % | |||||||
The provision for income taxes for the year ended December 31, 2013 was primarily related to foreign tax rate differential and increase in indefinite-lived intangible related deferred tax liability. The provision for income taxes for the year ended December 31, 2012 was primarily related to the establishment of a valuation allowance against the deferred tax assets in the United States and the taxes assessed by foreign jurisdictions. The recording of valuation allowance was mainly due to the fact that the losses generated by the Company’s United States operations for the year ended December 31, 2012 caused the Company’s operating results for the most recent three-year period ended December 31, 2012, to be in a loss position on a cumulative basis, as well as the impairment of goodwill during the fourth quarter of 2012. In making this determination, the Company considered all available evidence, both positive and negative. Such evidence included, among others, the Company’s history of losses and profitability, jurisdictional income recognition trends, taxable income adjusted for certain extraordinary and other items, the impact of acquisitions, and forecasted income by jurisdiction. The benefit from income taxes for the year ended December 31, 2011 was primarily related to the federal research and development credits and stock-based compensation related to the joint research and development arrangement with the Company’s foreign affiliate, partially offset by the foreign rate differential due to foreign loss being tax benefited at lower rates than the U.S. statutory rate. | |||||||||||||
The domestic and foreign components of loss before income tax expense were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (20,066 | ) | $ | (63,739 | ) | $ | (8,425 | ) | ||||
Foreign | 8,315 | (13,603 | ) | 3,973 | |||||||||
$ | (11,751 | ) | $ | (77,342 | ) | $ | (4,452 | ) | |||||
Provision for (benefit from) income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current tax provision (benefit) | |||||||||||||
Domestic | $ | 10 | $ | (320 | ) | $ | (355 | ) | |||||
Foreign | 1,123 | 1,085 | 862 | ||||||||||
1,133 | 765 | 507 | |||||||||||
Deferred tax provision (benefit) | |||||||||||||
Domestic | 713 | 35,344 | (5,000 | ) | |||||||||
Foreign | 91 | 212 | 8 | ||||||||||
804 | 35,556 | (4,992 | ) | ||||||||||
Provision for (benefit from) income taxes | $ | 1,937 | $ | 36,321 | $ | (4,485 | ) | ||||||
The Company’s effective tax rate differs from the United States federal statutory rate as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Stock compensation costs | 1.8 | (1.1 | ) | 42.4 | |||||||||
Other | 1.5 | 0.3 | (3.7 | ) | |||||||||
State taxes, net of federal benefit | (1.6 | ) | (0.9 | ) | (0.6 | ) | |||||||
Foreign income inclusion in the U.S. | (3.8 | ) | (0.4 | ) | (10.0 | ) | |||||||
Research and development credits | 48 | - | 77.6 | ||||||||||
Foreign tax rate differential | 46.7 | (8.8 | ) | (40.0 | ) | ||||||||
Change in valuation allowance | (144.1 | ) | (58.6 | ) | - | ||||||||
Goodwill impairment | - | (12.5 | ) | - | |||||||||
Total | (16.5 | )% | (47.0 | )% | 100.7 | % | |||||||
The tax effects of the temporary differences that give rise to deferred tax assets and liabilities are as follows: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Tax credits | $ | 28,758 | $ | 21,353 | |||||||||
Net operating loss carryforwards | 36,645 | 25,868 | |||||||||||
Capitalized research and development | 10 | 22 | |||||||||||
Intangible assets | 1,627 | - | |||||||||||
Stock compensation | 9,035 | 9,066 | |||||||||||
Other | 4,118 | 4,444 | |||||||||||
Gross deferred tax assets | 80,193 | 60,753 | |||||||||||
Less: valuation allowance | (79,928 | ) | (59,736 | ) | |||||||||
Net deferred tax assets | 265 | 1,017 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (1,254 | ) | (1,735 | ) | |||||||||
Other | (1,158 | ) | (686 | ) | |||||||||
Net deferred tax liabilities | $ | (2,147 | ) | $ | (1,404 | ) | |||||||
Reported As | |||||||||||||
Deferred tax assets, current | $ | - | $ | 568 | |||||||||
Deferred tax assets, non-current | 61 | 449 | |||||||||||
Deferred tax liabilities, current | (277 | ) | - | ||||||||||
Deferred tax liabilities, non-current | (1,931 | ) | (2,421 | ) | |||||||||
Net deferred tax liabilities | $ | (2,147 | ) | $ | (1,404 | ) | |||||||
As of December 31, 2013, the Company had total net operating loss carryforwards for federal and states of California and Massachusetts income tax purposes of $265.9 million and $167.0 million, respectively. If not utilized, these federal and state net operating loss carryforwards will expire beginning in 2020 and 2014, respectively. The federal and states of California and Massachusetts net operating loss carryforwards include excess windfall deductions of $122.6 million and $77.5 million, respectively. | |||||||||||||
The Company is tracking the portion of its deferred tax assets attributable to stock option benefits in a separate memo account pursuant to the accounting guidance for stock-based compensation. Therefore, these amounts are no longer included in the Company’s gross or net deferred tax assets. Pursuant to the guidance for stock-based compensation, the stock option benefits of approximately $47.5 million will be recorded within stockholders’ equity when it reduces cash taxes payable. The Company uses ASC 740 ordering for purposes of determining when excess tax benefits have been realized, and the Company considers the direct effects of stock option deductions to calculate excess tax benefits. | |||||||||||||
The Company also had federal and state research and development tax credit carryforwards of approximately $25.1 million and $14.0 million, respectively. The federal and state tax credit carryforwards will expire commencing 2020 and 2016, respectively, except for the California research tax credits which carry forward indefinitely. The Company also has various federal tax credits of approximately $0.9 million as of December 31, 2013. | |||||||||||||
The Company’s net deferred tax assets relate predominantly to its United States tax jurisdiction. The need for 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. The Company made the same assessment throughout 2013 and continues to believe that it is more-likely-then-not that 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, 2013 and 2012, a full valuation allowance is required on its net federal and state deferred tax assets. The provision for income taxes increases in the period the valuation allowance against deferred tax assets is established. Adjustments could be required in the future if the Company concludes that it is more-likely-than-not that deferred tax assets are recoverable. A release of valuation allowance could have the effect of decreasing the income tax provision in the statements of operations in the period the valuation allowance is released. | |||||||||||||
Certain of the Company’s net operating losses and research credits totaling $33.6 million are subject to an annual limitation of $1.8 million to $5.6 million over the next 16 years due to the ownership change limitations required by the Internal Revenue Code and similar state provisions. This limitation also results in some amount of these carryforwards expiring prior to benefiting the Company. The deferred tax assets shown above have been adjusted to reflect these expiring carryforwards. | |||||||||||||
Undistributed earnings of the Company’s foreign subsidiary of approximately $1.1 million and $0.9 million as of December 31, 2013 and 2012, respectively, are considered to be indefinitely reinvested and, accordingly, no provisions for federal and state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to both United States income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. As of December 31, 2013 and 2012, the amount of potential United States income tax of a future distribution would result in an insignificant amount of United States and foreign taxes. | |||||||||||||
The following table summarizes the activity related to the unrecognized tax benefits: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance at beginning of the year | $ | 12,749 | $ | 11,164 | $ | 12,949 | |||||||
Gross increases (decreases) related to prior year's tax positions | (526 | ) | 312 | (3,340 | ) | ||||||||
Gross increases related to current year's tax positions | 2,402 | 1,273 | 1,555 | ||||||||||
Balance at the end of the year | $ | 14,625 | $ | 12,749 | $ | 11,164 | |||||||
Included in the unrecognized tax benefits at December 31, 2013 is $0.7 million that, if recognized, would reduce the Company’s annual effective tax rate after considering the valuation allowance. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company has no significant accrued potential penalties and interest as of December 31, 2013 and 2012, as a significant amount of liabilities have been recorded against loss carryforwards on a net basis. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. | |||||||||||||
Beginning in 2011, the Company operated under tax incentives in Singapore, which are effective through February 2020. The tax incentives are conditional upon the Company meeting certain employment, revenue, and investment thresholds. Because of uncertainty of achieving such thresholds, the Company did not recognize any tax benefits from operating under the tax incentives in Singapore for the years ended December 31, 2012 and 2011. The Company realized benefits from the reduced tax rate for the periods presented as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Provision for Singapore entity at statutory tax rate of 17% | $ | 615 | $ | 351 | $ | 534 | |||||||
Provision for (benefit from) Singapore entity in the consolidated statement of operations | (209 | ) | 351 | 534 | |||||||||
Benefit from preferential tax rate differential | (824 | ) | - | - | |||||||||
Impact of tax benefits per basic and diluted share | $ | (0.02 | ) | $ | - | $ | - | ||||||
The Company in the future may expand its international operations and staff to better support its expansion into international markets. The Company’s foreign subsidiaries have licensed certain rights to the existing intellectual property and intellectual property that will be developed or licensed in the future. As a result of these anticipated changes and an expanding customer base in Asia, the Company expects that an increasing percentage of its consolidated pre-tax income will be derived from, and reinvested in, its Asian operations. The Company anticipates that this pre-tax income will be subject to foreign tax at relatively lower tax rates when compared to the United States federal statutory tax rate. Further, because the Company established a valuation allowance against its deferred tax assets in the United States, combined with lower foreign tax rates, the Company’s effective income tax rate is expected to be lower than the United States federal statutory rate. | |||||||||||||
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, or IRS. The California corporation income tax returns beginning with the 2000 tax year remain subject to examination by the California Franchise Tax Board. As of December 31, 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 consolidated statement of operations in the period of enactment, which was 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 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 December 31, 2013. |
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2013 | |
Retirement Plan | ' |
10. Retirement Plan | |
The Company has established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. The Company matches 50% of the employees’ contribution up to two thousand dollars per employee. Company contributions to the plan may be made at the discretion of the board of directors. For the years ended December 31, 2013, 2012 and 2011, the Company’s defined contribution expense was $0.8 million, $0.7 million and $0.7 million, respectively. | |
In connection with local foreign laws, the Company is required to have a severance plan for its employees in Korea and India. The Company’s severance pay liability is calculated based on the salary of each employee multiplied by the years of such employee’s employment, and is reflected in the Company’s balance sheet in other long-term liabilities on an accrual basis. The total liability from such severance plan amounted to $0.4 million and $0.4 million as of December 31, 2013 and 2012, respectively. |
Segment_And_Geographical_Infor
Segment And Geographical Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment And Geographic Information | ' | |||||||||||
11. 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 having two operating segments, 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 segment, which is also the same as the reportable segment beginning in the first quarter of 2013. The Company has updated the segment disclosure to conform the presentation of the earlier periods, which previously reported two reportable segments, to one reportable segment. | ||||||||||||
The Company’s revenue consists primarily of sale of semiconductor products to providers of networking equipment and their contract manufacturers and distributors and also derives revenue from licensing software and related maintenance and support. The revenue from these sources is classified by the Company as product revenue. The Company also generates revenue from professional service arrangements which is categorized as service revenue. The total service revenue is less than 10% of the Company’s total revenue for the years ended December 31, 2013, 2012 and 2011. As a result, the financial information used to produce the Company’s general-purpose financial statements does not report this service revenue separately. | ||||||||||||
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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
United States | $ | 90,537 | $ | 66,839 | $ | 82,277 | ||||||
China | 77,965 | 65,898 | 75,390 | |||||||||
Korea | 30,003 | 16,899 | 12,776 | |||||||||
Mexico | 22,572 | 9,954 | 2,962 | |||||||||
Finland | 17,767 | 2,399 | 4,640 | |||||||||
Taiwan | 26,023 | 25,204 | 31,264 | |||||||||
Japan | 9,231 | 15,820 | 14,377 | |||||||||
Malaysia | 14,789 | 16,021 | 16,871 | |||||||||
Other countries | 15,106 | 16,446 | 18,648 | |||||||||
Total | $ | 303,993 | $ | 235,480 | $ | 259,205 | ||||||
The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
United States | $ | 25,160 | $ | 27,678 | ||||||||
All other countries | 3,334 | 3,014 | ||||||||||
Total | $ | 28,494 | $ | 30,692 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies | ' | ||||||||||||
12. 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. | |||||||||||||
The Company leases its facilities under non-cancelable operating leases, which contain renewal options and escalation clauses, and expire on various dates ending in October 2022. The Company also acquires certain assets under capital leases. | |||||||||||||
In November 2013, the Company signed a new lease agreement with a landlord to lease approximately 55,440 sq. ft. in the first 12 months and 110,881 sq. ft. thereafter in a building adjacent to the Company’s principal executive 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 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 then increases 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 executive offices are located to extend the lease term to the expiration date of the new lease agreement for the adjacent building as discussed above. | |||||||||||||
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 Consolidated Financial Statements) as of December 31, 2013 are as follows: | |||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
2014 | $ | 18,315 | $ | 5,291 | $ | 23,606 | |||||||
2015 | 11,758 | 6,515 | 18,273 | ||||||||||
2016 | 5,150 | 8,236 | 13,386 | ||||||||||
2017 | - | 8,277 | 8,277 | ||||||||||
2018 | - | 8,441 | 8,441 | ||||||||||
2019 thereafter | - | 31,858 | 31,858 | ||||||||||
$ | 35,223 | $ | 68,618 | $ | 103,841 | ||||||||
Less: Interest component (3.75% annual rate) | 1,828 | ||||||||||||
Present value of minimum lease payment | 33,395 | ||||||||||||
Current portion of the obligations | $ | 17,103 | |||||||||||
Long-term portion of obligations | $ | 16,292 | |||||||||||
Rent expense incurred under operating leases was $5.1 million, $5.4 million and $5.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
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 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 was received and recorded as of December 31, 2013. | |||||||||||||
Selected_Quarterly_Consolidate
Selected Quarterly Consolidated Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Selected Quarterly Consolidated Financial Data | ' | ||||||||||||||||||||||||||||||||
Selected Quarterly Consolidated Financial Data (Unaudited) | |||||||||||||||||||||||||||||||||
The following table sets forth the Company’s unaudited consolidated statements of operations data for each of the quarters in the periods ended December 31, 2013 and 2012. The quarterly data have been prepared on the same basis as the audited consolidated financial statements. This should be read together with the consolidated financial statements and related notes included elsewhere in this Annual Report. Net income (loss) per common share, basic and diluted, for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. | |||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||
Net revenue | $ | 81,135 | $ | 79,124 | $ | 74,204 | $ | 69,530 | $ | 66,369 | $ | 61,081 | $ | 55,287 | $ | 52,743 | |||||||||||||||||
Cost of revenue | 29,059 | 28,516 | 30,945 | 26,159 | 25,049 | 24,796 | 24,749 | 28,008 | |||||||||||||||||||||||||
Gross profit | 52,076 | 50,608 | 43,259 | 43,371 | 41,320 | 36,285 | 30,538 | 24,735 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Research and development | 36,127 | 33,630 | 32,424 | 32,415 | 29,318 | 27,444 | 26,123 | 27,058 | |||||||||||||||||||||||||
Sales, general and administrative | 17,871 | 14,833 | 16,144 | 15,240 | 21,608 | 19,213 | 18,489 | 12,484 | |||||||||||||||||||||||||
Goodwill impairment | - | - | - | - | 27,680 | - | - | - | |||||||||||||||||||||||||
Total operating expenses | 53,998 | 48,463 | 48,568 | 47,655 | 78,606 | 46,657 | 44,612 | 39,542 | |||||||||||||||||||||||||
Income (loss) from operations | (1,922 | ) | 2,145 | (5,309 | ) | (4,284 | ) | (37,286 | ) | (10,372 | ) | (14,074 | ) | (14,807 | ) | ||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||||||||||||
Interest expense | (395 | ) | (390 | ) | (375 | ) | (342 | ) | (581 | ) | (11 | ) | (22 | ) | (32 | ) | |||||||||||||||||
Other, net | (74 | ) | (126 | ) | (418 | ) | (261 | ) | (164 | ) | 115 | (14 | ) | (94 | ) | ||||||||||||||||||
Total other income (expense), net | (469 | ) | (516 | ) | (793 | ) | (603 | ) | (745 | ) | 104 | (36 | ) | (126 | ) | ||||||||||||||||||
Income (loss) before income taxes | (2,391 | ) | 1,629 | (6,102 | ) | (4,887 | ) | (38,031 | ) | (10,268 | ) | (14,110 | ) | (14,933 | ) | ||||||||||||||||||
Provision for (benefit from) income taxes | 120 | 714 | 677 | 426 | 41,415 | (1,719 | ) | (2,271 | ) | (1,104 | ) | ||||||||||||||||||||||
Net income (loss) | (2,511 | ) | 915 | (6,779 | ) | (5,313 | ) | (79,446 | ) | (8,549 | ) | (11,839 | ) | (13,829 | ) | ||||||||||||||||||
Net loss attributable to non-controlling interest | (2,698 | ) | (3,421 | ) | (2,475 | ) | (2,129 | ) | (607 | ) | (424 | ) | - | - | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 187 | $ | 4,336 | $ | (4,304 | ) | $ | (3,184 | ) | $ | (78,839 | ) | $ | (8,125 | ) | $ | (11,839 | ) | $ | (13,829 | ) | |||||||||||
Earnings per share attributable to the Company: | |||||||||||||||||||||||||||||||||
Net income (loss) per common share, basic | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | $ | (1.56 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.28 | ) | |||||||||||
Net income (loss) per common share, diluted | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | $ | (1.56 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.28 | ) | |||||||||||
-1 | Research and development expense included expenses from the VIE of $1.3 million and $3.0 million for the quarters ended September 30 and December 31, 2012, respectively; and $3.6 million, $3.7 million, $4.7 million and $3.5 million for the quarters ended March 31, June 30, September 30 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||||
-2 | Sales, general and administrative expense for the quarter ended March 31, 2012 includes a one-time credit adjustment related to the settlement of an escrow claim from the Celestial Semiconductor acquisition of $4.4 million. | ||||||||||||||||||||||||||||||||
-3 | Sales, general and administrative expense for the quarter ended September 30, 2012 includes a one-time adjustment related to the loss on disposition of certain consumer product assets of $2.7 million. | ||||||||||||||||||||||||||||||||
-4 | Sales, general and administrative expense for the quarter ended December 31, 2012 includes a one-time adjustment related to the impairment of intangible assets of $5.6 million. | ||||||||||||||||||||||||||||||||
-5 | As a result of the annual goodwill impairment test in 2012, the Company recorded a goodwill impairment charge of $27.7 million in the quarter ended December 31, 2012. | ||||||||||||||||||||||||||||||||
-6 | The provision for income taxes for the quarter ended December 31, 2012 was primarily related to the establishment of valuation allowance against the Company’s federal and state net deferred tax assets. 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. | ||||||||||||||||||||||||||||||||
-7 | Research and development expense for the quarter ended June 30, 2013 includes additional amortization expense of $0.6 million resulting from the change in estimated useful lives of certain consumer related intangible assets. | ||||||||||||||||||||||||||||||||
-8 | Sales, general and administrative expense for the quarter ended June 30, 2013 includes a one-time accrual for a contractual settlement of $1.3 million to a certain customer, which was settled in the third quarter of 2013. | ||||||||||||||||||||||||||||||||
-9 | Research and development expense for the quarter ended December 31, 2013 includes additional amortization expense of $2.9 million resulting from the change in estimated useful lives of certain intangible assets. | ||||||||||||||||||||||||||||||||
-10 | Sales, general and administrative expense for the quarter ended December 31, 2013 includes additional amortization expense of $2.7 million resulting from the change in estimated useful lives of certain intangible assets. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts and Reserves | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation and Qualifying Accounts and Reserves | ' | ||||||||||||||||
Schedule II — Valuation and Qualifying Accounts and Reserves | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||
beginning | end of | ||||||||||||||||
Description | of period | Additions | Deductions | period | |||||||||||||
(in thousands) | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 24 | $ | 3 | $ | (3 | ) | $ | 24 | ||||||||
Allowance for customer returns | 967 | 2,752 | (2,810 | ) | 909 | ||||||||||||
Income tax valuation allowance | 59,736 | 20,192 | - | 79,928 | |||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 80 | $ | 42 | $ | (98 | ) | $ | 24 | ||||||||
Allowance for customer returns | 614 | 3,786 | (3,433 | ) | 967 | ||||||||||||
Income tax valuation allowance | 13,513 | 46,223 | - | 59,736 | |||||||||||||
Year ended December 31, 2011 | |||||||||||||||||
Allowance for doubtful accounts | $ | 47 | $ | 290 | $ | (257 | ) | $ | 80 | ||||||||
Allowance for customer returns | 532 | 2,435 | (2,353 | ) | 614 | ||||||||||||
Income tax valuation allowance | 11,833 | 1,680 | - | 13,513 | |||||||||||||
All other schedules are omitted because they are inapplicable or the requested information is shown in the consolidated financial statements of the registrant or related notes thereto. |
Organization_And_Significant_A1
Organization And Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 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 Consolidation | ' | |||||||
Basis of Consolidation | ||||||||
The 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 Consolidated Financial Statements for detailed discussions of the VIE. All significant intercompany transactions and balances have been eliminated in consolidation. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. | ||||||||
Cash And Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with an original or remaining maturity of 90 days or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of an investment in a money market fund. | ||||||||
Allowance For Doubtful Accounts | ' | |||||||
Allowance for Doubtful Accounts | ||||||||
The Company reviews its allowance for doubtful accounts by assessing individual accounts receivable over a specific age and amount. The Company’s allowance for doubtful accounts were not significant as of December 31, 2013 and 2012. | ||||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of work-in-process and finished goods. Inventories not related to an acquisition are stated at the lower of cost (determined using the first-in, first-out method), or market value (estimated net realizable value). Inventories from acquisitions are stated at fair value at the date of acquisition. The Company writes down excess and obsolete inventory based on its age and forecasted demand, generally over a 12 month period, which includes estimates taking into consideration the Company’s outlook on uncertain events such as market and economic conditions, technology changes, new product introductions and changes in strategic direction. Actual demand may differ from forecasted demand and such differences may have a material effect on recorded inventory values. Inventory write-downs are not reversed until the related inventories have been sold or scrapped. | ||||||||
Property And Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of estimated useful lives or unexpired lease term. Additions and improvements that increase the value or extend the life of an asset are capitalized. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to income. Ordinary repairs and maintenance costs are expensed as incurred. | ||||||||
Estimated | ||||||||
Useful Lives | ||||||||
Software, computer and other equipment | 1 to 5 years | |||||||
Test equipment and mask costs | 1 to 3 years | |||||||
Furniture, office equipment and leasehold improvements | 1 to 5 years | |||||||
The Company capitalizes the cost of fabrication masks that are reasonably expected to be used during production manufacturing. Such amounts are included within property and equipment and are depreciated over a period of 12 to 24 months and recorded as a component of cost of revenue. If the Company does not reasonably expect to use the fabrication mask during production manufacturing, the related mask costs are expensed to research and development in the period in which the costs are incurred. | ||||||||
Concentration of Risk | ' | |||||||
Concentration of Risk | ||||||||
The Company’s products are currently manufactured, assembled and tested by third-party contractors in Asia. There are no long-term agreements with any of these contractors. A significant disruption in the operations of one or more of these contractors would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations. | ||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company deposits cash with credit worthy financial institutions. The Company has not experienced any losses on its deposits of cash. Management believes that the financial institutions are reputable and, accordingly, minimal credit risk exists. The Company follows an established investment policy and set of guidelines to monitor, manage and limit the Company’s exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits the Company’s exposure to any one issuer, as well as the maximum exposure to various asset classes. | ||||||||
A majority of the Company’s accounts receivable are derived from customers headquartered in the United States. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable. | ||||||||
Summarized below are individual customers whose accounts receivable balances were 10% or higher of the consolidated gross receivable: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Percentage of gross accounts receivable | ||||||||
Phoenics Electronics | 13 | % | * | |||||
Flextronics | 13 | % | * | |||||
Huawei Technologies | 10 | % | * | |||||
* | Represents less than 10% of the gross accounts receivable for the respective period end. | |||||||
Cisco Systems, Inc. accounted for 18.6%, 24.3% and 24.0% of the Company’s net revenue in 2013, 2012 and 2011, respectively. No other customer accounted for more than 10% of the Company’s net revenue in 2013, 2012 and 2011. | ||||||||
Business Combinations | ' | |||||||
Business Combinations | ||||||||
The Company accounts for business combinations using the purchase method of accounting. The Company determines the recognition of intangible assets based on the following criteria: (i) the intangible asset arises from contractual or other rights; or (ii) the intangible is separable or divisible from the acquired entity and capable of being sold, transferred, licensed, returned or exchanged. In accordance with the guidance provided under business combinations, the Company allocates the purchase price of business combinations to the tangible assets, liabilities and intangible assets acquired, including in-process research and development, or IPR&D, based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. The Company’s valuation assumption of acquired net assets requires significant estimates, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets includes future expected cash flows from customer contracts, customer lists, and distribution agreements and acquired developed technologies, expected costs to develop IPR&D into commercially viable products, estimated cash flows from projects when completed and discount rates. The Company estimates the fair value based upon assumptions the Company believes to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. | ||||||||
Goodwill And Intangible Assets | ' | |||||||
Goodwill and intangible assets | ||||||||
Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets and liabilities assumed. The Company evaluates goodwill for impairment at the reporting unit level at least on an annual basis in the fourth quarter of the calendar year or whenever events and changes in circumstances suggest that the carrying amount may not be recoverable from its estimated future cash flow. The Company performs a qualitative assessment to determine if any events have occurred or circumstances exist that would indicate that it is more-likely-than-not that a goodwill impairment exists. The qualitative factors include, but are not limited to: (a) macroeconomic conditions; (b) industry and market considerations ; (c) overall financial performance; (d) a significant adverse change in legal factors or in the business climate; (e) an adverse action or assessment by a regulator; (f) relevant entity-specific events including changes in management, strategy or customers; (g) a more-likely-than-not expectation of sale or disposal of a reporting unit or a significant portion thereof; or (h) sustained decrease in share price. | ||||||||
If any indicators exist based on the qualitative analysis that it is more-likely-than-not that a goodwill impairment exists, a two-step impairment test is used to identify potential goodwill impairment and measure the amount of the goodwill impairment loss to be recognized. In the first step, the fair value of each reporting unit is compared to its carrying value to determine if the goodwill is impaired. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, then goodwill is not impaired and no further testing is required. If the carrying value of the net assets assigned to the reporting unit were to exceed its fair value, then the second step is performed to determine the implied fair value of the reporting unit’s goodwill and an impairment loss is recorded for an amount equal to the difference between the implied fair value and the carrying value of the goodwill. Determining the fair value of each reporting unit is judgmental in nature and requires the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions that are believed to be reasonable but are uncertain and subject to changes in market conditions. The Company generally uses two approaches to value its reporting units, the income approach and market approach. The income approach is based on discounted cash flows which were derived from internal forecasts and economic expectations. Key assumptions used to determine the fair value under the income approach include the cash flow period, terminal values based on a terminal growth rate and the discount rate. The market approach utilizes valuation multiples based on operating and valuation metrics from comparable companies in the industry. Certain estimates of discounted cash flows involve businesses with limited financial history and with developing revenue models which increase the risk of differences between the projected and actual performance. | ||||||||
Impairment Of Long-Lived Assets | ' | |||||||
Impairment of Long-Lived Assets | ||||||||
The Company reviews long-lived assets, including property and equipment and intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets (or asset group) may not be fully recoverable. Whenever events or changes in circumstances suggest that the carrying amount of long-lived assets may not be recoverable, the Company estimates the future cash flows expected to be generated by the assets (or asset group) from its use or eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Significant management judgment is required in the grouping of long-lived assets and forecasts of future operating results that are used in the discounted cash flow method of valuation. If our actual results, or the plans and estimates used in future impairment analyses are lower than the original estimates used to assess the recoverability of these assets, the Company could incur additional impairment charges. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition | ||||||||
The Company derives its revenue from sales of semiconductor products and sales of software licenses and services. The Company recognizes revenue when all of the following criteria have been met: (i) persuasive evidence of a binding arrangement exists, (ii) delivery has occurred or service has been rendered, (iii) the price is deemed fixed or determinable and free of contingencies and significant uncertainties, and (iv) collection is reasonably assured. The price is considered fixed or determinable at the execution of an agreement, based on specific products and quantities to be delivered at specified prices, which is often memorialized with a customer purchase order. Agreements with non-distributor customers do not include rights of return or acceptance provisions. The Company assesses the ability to collect from the Company’s customers based on a number of factors, including credit worthiness and any past transaction history of the customer. | ||||||||
Shipping charges billed to customers are included in semiconductor products revenue and the related shipping costs are included in cost of revenue. The Company generally recognizes revenue at the time of shipment to the Company’s customers. Revenue from the sales of semiconductor products consists of sales of the Company’s products to networking original equipment manufacturers, or OEMs, their contract manufacturers or distributors. Initial sales of the Company’s products for a new design are usually made directly to networking OEMs as they design and develop their product. Once their design enters production, they often outsource their manufacturing to contract manufacturers that purchase the Company’s products directly from the Company or from the Company’s distributors. | ||||||||
Revenue is recognized upon shipment for sales to distributors with limited rights of returns and price protection if the Company concludes it can reasonably estimate the credits for returns and price adjustments issuable. The Company records an estimated allowance, at the time of shipment, based on the Company’s historical patterns of returns and pricing credits of sales recognized upon shipment. The credits issued to distributors or other customers have historically not been material. The inventory at these distributors at the end of the period may fluctuate from time to time mainly due to the OEM production ramps or new customer demands. | ||||||||
Revenue and costs relating to product sales to distributors are deferred if the Company grants more than limited rights of returns and price credits or if it cannot reasonably estimate the level of returns and credits issuable. Deferred revenue, net of deferred cost on these shipments is reported as part of deferred revenue. Accounts receivable is recognized and inventory is relieved when the title to inventories are transferred, which typically takes place at the time of shipment, which is the point in time at which the Company has a legal enforceable right to collection under normal payment terms. | ||||||||
The Company also derives revenue from licensing software and providing software maintenance and support. Software arrangements typically include: (i) an end-user license fee paid in exchange for the use of the Company’s products for a specified period of time, generally 12 months (time-based license); and (ii) a support arrangement that provides for technical support and unspecified product updates and upgrades on a when and if available basis over the period of the related license. | ||||||||
Revenue from software and service arrangements is recorded when all of the following criteria are met: | ||||||||
Persuasive evidence of an arrangement exists — The Company requires either a written contract signed by both the customer and the Company, or a shrink-wrap or click-through contract whereby the customer agrees to the Company’s standard license terms, together with a non-cancellable purchase order, or a purchase order from these customers that have previously negotiated an end-user license arrangement or volume purchase arrangement. | ||||||||
Delivery has occurred — The Company delivers software to its customers electronically and considers delivery to have occurred once the access codes are provided that allow the customer to take immediate possession of the software. | ||||||||
The fee is fixed or determinable — The Company’s determination that an arrangement fee is fixed or determinable depends principally on the arrangement’s payment terms. | ||||||||
Collectibility is reasonably assured — The Company assesses the collectibility of an arrangement on a case-by-case basis, based on the financial condition of the customer as well as any established payment history. | ||||||||
For multiple-element arrangements entered into prior to the adoption of the amended guidance on multiple-delivery arrangements effective January 1, 2011, which contains software or software related elements, the Company allocates revenue between elements in a multiple-element revenue arrangement based on vendor specific objective evidence, or VSOE, of fair value for each undelivered element. VSOE is based on the price charged when an element is sold separately. The Company enters into multiple-element arrangements that generally include time-based licenses and support that are typically not sold separately. Revenue from these arrangements is deferred and recognized ratably over the term that support is offered, which is typically 12 months. | ||||||||
The software arrangement may also include professional services, and these services may be purchased separately. Professional services engagements are billed on either a fixed-fee or time-and-materials basis. For fixed-fee arrangements, professional services revenue is recognized under the proportional performance method, with the associated costs included in cost of revenue. The Company estimates the proportional performance of the arrangements based on an analysis of progress toward completion. The Company periodically evaluates the actual status of each project to ensure that the estimates to complete each contract remain accurate, and a loss is recognized when the total estimated project cost exceeds project revenue. If the amount billed exceeds the amount of revenue recognized, the excess amount is recorded as deferred revenue. Revenue recognized in any period is dependent on progress toward completion of projects in progress. To the extent the Company is unable to estimate the proportional performance then the revenue is recognized on a completed performance basis. Revenue for time-and-materials engagements is recognized as the effort is incurred. | ||||||||
In addition, the Company also enters into multiple element arrangements, which consist of the combination of licensed software, support and professional services. Professional services in these arrangements do not involve significant customization, modification or development of software licensed under the time based licenses and are not essential to the functionality of this software. Provided that the total arrangement consideration is fixed and determinable at the inception of the arrangement, the Company allocates the total arrangement consideration to professional services and time based licenses bundled with support based on VSOE for professional services and VSOE for time based licenses bundled with support. Each unit of accounting is then accounted for under the applicable revenue recognition guidance. For arrangements with services that are essential to the functionality of the software, the license and related service revenues are recognized using the proportional performance method. | ||||||||
If the Company is unable to establish VSOE for each undelivered element of the arrangement, revenue for the entire arrangement is deferred until the time the Company is able to establish VSOE for the undelivered elements or there is only one remaining undelivered element. When the revenue is deferred, the direct costs incurred in relation to the professional services arrangement are deferred and is recorded as deferred costs in prepaid expenses and other current assets. | ||||||||
Effective January 1, 2011, the Company adopted the updated guidance on Multiple-Deliverable Revenue Arrangements. For transactions entered into subsequent to the adoption of this updated guidance, when a sales arrangement contains multiple elements with combinations of hardware, software, post contract support and/or professional services, and if the different elements in the arrangement qualify as separate units of accounting, the Company allocates total arrangement consideration to each element based on relative selling price. The selling price for a deliverable is based on its VSOE if available, third-party evidence, or TPE if VSOE is not available, or estimated selling price, or ESP if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for products and services revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. TPE is determined by evaluating competitor prices for similar deliverables when sold separately. Generally, the Company’s product offerings related to these arrangements contain a significant level of customization and contain significant portion of proprietary technology which are not exactly comparable to its peers, therefore pricing of products with similar functionality cannot be obtained, and thus the Company cannot determine TPE. When the Company is unable to establish selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The ESP is determined by considering multiple factors including, but not limited to pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. The adoption of this new standard did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. | ||||||||
Deferred Revenue | ' | |||||||
Deferred revenue | ||||||||
The Company records deferred revenue for customer billings and advance payments received from customers before the performance obligations have been completed and/or services have been performed for products and/or service related agreements. In addition, the Company also records deferred revenue, net of deferred costs on shipments to a sell-through distributor. | ||||||||
Warranty Accrual | ' | |||||||
Warranty Accrual | ||||||||
The Company’s products are generally subject to a one-year warranty period. The Company provides for the estimated future costs of replacement upon shipment of the product as cost of revenue. The warranty accrual is estimated based on cost of historical claims compared to associated historical product cost. In addition, the Company also provides a one-year warranty period on certain professional services. Such warranty accrual is estimated based on the resource hours needed to cover during the warranty period. | ||||||||
Research And Development | ' | |||||||
Research and Development | ||||||||
Research and development costs are expensed as incurred and primarily include personnel costs, prototype expenses, which include the cost of fabrication mask costs not reasonably expected to be used in production manufacturing, and allocated facilities costs as well as depreciation of equipment used in research and development. | ||||||||
Advertising | ' | |||||||
Advertising | ||||||||
The Company expenses advertising costs as incurred. Advertising costs were $1.4 million, $0.9 million and $0.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
Operating Leases | ' | |||||||
Operating Leases | ||||||||
The Company recognizes rent expense on a straight-line basis over the term of the lease. The difference between rent expense and rent paid is recorded as deferred rent in accrued expenses and other current and non-current liabilities on the consolidated balance sheets. | ||||||||
Accounting For Stock-Based Compensation | ' | |||||||
Accounting for Stock-Based Compensation | ||||||||
The Company applies the fair value recognition provisions of stock-based compensation. The Company recognizes the fair value of the awards on a straight-line basis over the options’ vesting periods. The Company uses the closing trading price of its common stock on the date of grant as the fair value of the awards of restricted stock units. The Company estimates the grant date fair value of stock option awards using the Black-Scholes option valuation model. The Black-Scholes option-pricing model used to determine the fair value of stock options requires various subjective assumptions, including expected volatility, expected term and the risk-free interest rates. For options granted prior to 2012, the expected volatility of common stock at the date of grant was based on reported market value data of a group of publicly traded companies, which were selected from certain market indices, that the Company believed was relatively comparable after consideration of their size, stage of life cycle, profitability, growth, and risk and return of investments. Further, the expected term was estimated using the simplified method as permitted by the provisions on stock-based compensation. Since the Company’s stock has been publicly traded since May 2007, the Company determined that it had sufficient trading history to use the historical volatility for option grants beginning in the first quarter of 2012. The Company recognizes stock-based compensation expense only for the portion of stock options that are expected to vest, based on the Company’s estimated forfeiture rate. If the actual number of future forfeitures differs from that estimated by management, the Company may be required to record adjustments to stock-based compensation expense in future periods. | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
The Company provides for deferred income taxes under the asset and liability method. Under this method, deferred tax assets, including those related to tax loss carryforwards and credits, and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets when management cannot conclude that it is more-likely-than-not that the net deferred tax asset will be recovered. The valuation allowance was determined by assessing both positive and negative evidence to determine whether it is more-likely-than-not that deferred tax assets are recoverable; such assessment is required on a jurisdiction-by-jurisdiction basis. | ||||||||
Other Comprehensive Income (Loss) | ' | |||||||
Other Comprehensive Income (Loss) | ||||||||
Comprehensive income (loss) includes all changes in equity that are not the result of transactions with stockholders. For the years ended December 31, 2013, 2012 and 2011, there were no components of comprehensive income (loss) which were excluded from the net income (loss) and, therefore, no separate statement of comprehensive income (loss) has been presented. | ||||||||
Foreign Currency Translation | ' | |||||||
Foreign Currency Translation | ||||||||
The Company uses the United States dollar as the functional currency for its subsidiaries. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at end-of-period exchange rates for monetary assets and liabilities, and historical exchange rates for nonmonetary assets and liabilities. Net revenue and expenses are remeasured at average exchange rates in effect during each period, except for those revenue, cost of sales and expenses related to the nonmonetary assets and liabilities, which are remeasured at historical exchange rates. The aggregate foreign exchange gains and losses, which are included in other, net in the consolidated statements of operations were not material for the years ended December 31, 2013, 2012 and 2011. | ||||||||
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 will have a significant impact on the Company’s consolidated financial position, results of operations and cash flows. |
Organization_And_Significant_A2
Organization And Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule Of Property And Equipment Estimated Useful Lives | ' | |||||||
Estimated | ||||||||
Useful Lives | ||||||||
Software, computer and other equipment | 1 to 5 years | |||||||
Test equipment and mask costs | 1 to 3 years | |||||||
Furniture, office equipment and leasehold improvements | 1 to 5 years | |||||||
Percentage Of Gross Accounts Receivable | ' | |||||||
Summarized below are individual customers whose accounts receivable balances were 10% or higher of the consolidated gross receivable: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Percentage of gross accounts receivable | ||||||||
Phoenics Electronics | 13 | % | * | |||||
Flextronics | 13 | % | * | |||||
Huawei Technologies | 10 | % | * | |||||
* | Represents less than 10% of the gross accounts receivable for the respective period end. |
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Basic and Diluted Net Loss Per Common Share | ' | |||||||||||
The following table sets forth the computation of net income (loss) per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net income (loss) attributable to the Company | $ | (2,965 | ) | $ | (112,632 | ) | $ | 33 | ||||
Weighted average common shares outstanding - basic | 51,596 | 49,886 | 48,311 | |||||||||
Dilutive effect of employee stock plans | - | - | 2,460 | |||||||||
Weighted average common shares outstanding - diluted | 51,596 | 49,886 | 50,771 | |||||||||
Net income (loss )per common share, basic | $ | (0.06 | ) | $ | (2.26 | ) | $ | 0 | ||||
Net income (loss) per common share, diluted | $ | (0.06 | ) | $ | (2.26 | ) | $ | 0 | ||||
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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Options to purchase common stock | 3,552 | 4,198 | 507 | |||||||||
Restricted stock units | 1,776 | 1,824 | 28 | |||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Work-in-process | $ | 35,027 | $ | 33,418 | ||||||||
Finished goods | 10,741 | 13,090 | ||||||||||
$ | 45,768 | $ | 46,508 | |||||||||
Property and Equipment, Net | ' | |||||||||||
Property and equipment, net | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Test equipment and mask costs | $ | 34,457 | $ | 32,771 | ||||||||
Software, computer and other equipment | 34,945 | 35,563 | ||||||||||
Furniture, office equipment and leasehold improvements | 938 | 1,089 | ||||||||||
70,340 | 69,423 | |||||||||||
Less: accumulated depreciation and amortization | (41,846 | ) | (38,731 | ) | ||||||||
$ | 28,494 | $ | 30,692 | |||||||||
Other Accrued Expenses And Other Current Liabilities | ' | |||||||||||
Other accrued expenses and other current liabilities | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Accrued compensation and related benefits | $ | 4,262 | $ | 4,458 | ||||||||
Professional fees | 1,536 | 1,067 | ||||||||||
Customer deposits | 1,470 | 385 | ||||||||||
Restructuring related payables | 57 | 210 | ||||||||||
Income tax payable | 544 | 467 | ||||||||||
Deferred tax liability | 277 | - | ||||||||||
Other | 1,690 | 2,093 | ||||||||||
$ | 9,836 | $ | 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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 440 | $ | 412 | $ | 234 | ||||||
Accruals and adjustments | 206 | 467 | 802 | |||||||||
Settlements | (479 | ) | (439 | ) | (624 | ) | ||||||
Ending balance | $ | 167 | $ | 440 | $ | 412 | ||||||
Deferred Revenue | ' | |||||||||||
Deferred revenue | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Services/support and maintenance | $ | 5,326 | $ | 8,017 | ||||||||
Software license/subscription | 1,176 | 2,529 | ||||||||||
Distributor deferred margin | 2,167 | 2,398 | ||||||||||
$ | 8,669 | $ | 12,944 | |||||||||
Other Non-Current Liabilities | ' | |||||||||||
Other non-current liabilities | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Accrued rent | $ | 1,034 | $ | 659 | ||||||||
Income tax payable | 698 | 779 | ||||||||||
Restructuring related payables | - | 52 | ||||||||||
Other | 612 | 480 | ||||||||||
$ | 2,344 | $ | 1,970 | |||||||||
Business_Combinations_and_Dive1
Business Combinations and Divestitures (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Pro Forma Financial Information | ' | |||||||
The unaudited pro forma financial information in the table below summarizes the combined results of operations of the Company, Wavesat and Celestial Semiconductor. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of the comparable prior annual reporting period as presented: | ||||||||
Net | Net Loss | |||||||
Revenue | ||||||||
(in thousands) | ||||||||
Actual from acquisition dates to December 31, 2011 | $ | 4,015 | $ | (16,740 | ) | |||
Supplemental pro forma from January 1, 2011 to December 31, 2011 | 259,525 | (5,439 | ) | |||||
Wavesat Inc. | ' | |||||||
Purchase Price Allocation | ' | |||||||
The acquisition has been accounted for using the purchase method of accounting in accordance with the business acquisition standards. Under the purchase accounting method, the total estimated purchase consideration of the acquisitions was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their relative fair values. The excess of the purchase consideration over the net tangible and identifiable intangible assets acquired and liabilities assumed was recorded as goodwill. The purchase price allocation was as follows: | ||||||||
Amount | ||||||||
(in thousands) | ||||||||
Net tangible liabilities | $ | (1,912 | ) | |||||
IPR&D | 800 | |||||||
Other identifiable intangible assets | 3,700 | |||||||
Goodwill | 7,912 | |||||||
Total purchase price | $ | 10,500 | ||||||
Celestial Semiconductor, Ltd | ' | |||||||
Purchase Price Allocation | ' | |||||||
The purchase price allocation was as follows: | ||||||||
Amount | ||||||||
(in thousands) | ||||||||
Net tangible assets | $ | 436 | ||||||
IPR&D | 600 | |||||||
Other identifiable intangible assets | 20,000 | |||||||
Goodwill | 36,260 | |||||||
Total purchase price | $ | 57,296 | ||||||
Total Purchase Price Consideration | ' | |||||||
Following summarizes the total purchase price consideration: | ||||||||
Amount | ||||||||
(in thousands) | ||||||||
Cash consideration | $ | 20,606 | ||||||
Common stock (758,265 shares at $43.86 per share) | 33,258 | |||||||
Estimated fair value of the contingent earn-out consideration to other selling shareholders' | 3,432 | |||||||
Total | $ | 57,296 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Intangible Assets, Net | ' | ||||||||||||||||
Intangible assets, net | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Existing and core technology - product | $ | 42,086 | $ | (35,637 | ) | $ | 6,449 | 1.68 | |||||||||
Technology licenses | 68,175 | (32,015 | ) | 36,160 | 7.88 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,827 | ) | 164 | 1.3 | ||||||||||||
Trade name | 2,296 | (1,829 | ) | 467 | 1.1 | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 122,188 | $ | (78,948 | ) | $ | 43,240 | 6.87 | |||||||||
As of December 31, 2012 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(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 | 2.1 | ||||||||||||
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): | |||||||||||||||||
2014 | $ | 13,084 | |||||||||||||||
2015 | 6,474 | ||||||||||||||||
2016 | 4,367 | ||||||||||||||||
2017 | 3,195 | ||||||||||||||||
2018 | 3,057 | ||||||||||||||||
2019 and thereafter | 13,063 | ||||||||||||||||
$ | 43,240 | ||||||||||||||||
Restructuring_Accrual_Tables
Restructuring Accrual (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accrued Restructuring Liabilities Including Related Activities | ' | ||||||||||||||||||||||||
A summary of the accrued restructuring liabilities including related activities for the periods presented are as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Severance and other benefits | Excess Facility Related Cost | Total | Severance and other benefits | Excess Facility Related Cost | Total | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Balance at beginning of the year | $ | - | $ | 262 | $ | 262 | $ | - | $ | 1,388 | $ | 1,388 | |||||||||||||
Additions | 1,371 | - | 1,371 | 1,245 | 420 | 1,665 | |||||||||||||||||||
Cash payments and other non-cash adjustments | (1,371 | ) | (205 | ) | (1,576 | ) | (1,245 | ) | (1,546 | ) | (2,791 | ) | |||||||||||||
Balance at end of the year | $ | - | $ | 57 | $ | 57 | $ | - | $ | 262 | $ | 262 | |||||||||||||
Current portion | $ | - | $ | 57 | $ | 57 | $ | - | $ | 210 | $ | 210 | |||||||||||||
Long-term portion | - | - | - | - | 52 | 52 | |||||||||||||||||||
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Stock Options Granted and Outstanding | ' | ||||||||||||||||||||||||
Detail related to stock option activity is as follows: | |||||||||||||||||||||||||
Number of Shares Outstanding | Weighted Average Exercise Price | ||||||||||||||||||||||||
Balance as of December 31, 2010 | 5,613,564 | $ | 12.34 | ||||||||||||||||||||||
Options granted | 403,960 | 37.81 | |||||||||||||||||||||||
Options exercised | (1,265,016 | ) | 9.54 | ||||||||||||||||||||||
Options cancelled and forfeited | (100,788 | ) | 15.35 | ||||||||||||||||||||||
Balance as of December 31, 2011 | 4,651,720 | 12.34 | |||||||||||||||||||||||
Options granted | 354,834 | 33.69 | |||||||||||||||||||||||
Options exercised | (645,104 | ) | 12.87 | ||||||||||||||||||||||
Options cancelled and forfeited | (163,746 | ) | 23.89 | ||||||||||||||||||||||
Balance as of December 31, 2012 | 4,197,704 | 16.83 | |||||||||||||||||||||||
Options granted | 242,375 | 37.15 | |||||||||||||||||||||||
Options exercised | (723,047 | ) | 14.95 | ||||||||||||||||||||||
Options cancelled and forfeited | (164,816 | ) | 34.36 | ||||||||||||||||||||||
Balance as of December 31, 2013 | 3,552,216 | 17.79 | |||||||||||||||||||||||
Summary Of Stock Options Outstanding | ' | ||||||||||||||||||||||||
The following table summarizes information about stock options outstanding as of December 31, 2013: | |||||||||||||||||||||||||
Outstanding Options | Exercisable Options | ||||||||||||||||||||||||
Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Term | Weighted Average Exercise Price | Number of shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||||||
$ 0.30 - $1.50 | 114,669 | 1.42 | $ | 0.9 | 114,669 | $ | 0.9 | ||||||||||||||||||
3.04 - 3.04 | 563,549 | 2.22 | 3.04 | 563,549 | 3.04 | ||||||||||||||||||||
3.74 - 8.52 | 95,720 | 2.31 | 7.93 | 95,720 | 7.93 | ||||||||||||||||||||
10.32 - 10.32 | 765,745 | 2.1 | 10.32 | 765,745 | 10.32 | ||||||||||||||||||||
12.56 - 14.42 | 79,010 | 2.03 | 13.87 | 79,010 | 13.87 | ||||||||||||||||||||
14.80 - 14.80 | 445,994 | 1.21 | 14.8 | 445,994 | 14.8 | ||||||||||||||||||||
16.32 - 24.16 | 502,120 | 2.8 | 22.27 | 495,815 | 22.24 | ||||||||||||||||||||
24.99 - 42.01 | 985,409 | 4.77 | 34.34 | 579,393 | 32.83 | ||||||||||||||||||||
0.30 - 42.01 | 3,552,216 | 2.83 | $ | 17.79 | 3,139,895 | $ | 15.36 | $ | 61,217,211 | ||||||||||||||||
Exercisable | 3,139,895 | 2.5 | $ | 15.36 | $ | 60,983,467 | |||||||||||||||||||
Vested and expected to vest | 3,525,967 | 2.81 | $ | 17.65 | $ | 61,216,433 | |||||||||||||||||||
Assumptions Of Fair Value Of Employee Option Grant Using Black-Scholes Option - Pricing Model | ' | ||||||||||||||||||||||||
The fair value of each option grants for the years ended December 31, 2013, 2012 and 2011 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Risk-free interest rate | 0.32% to 1.04% | 0.57% to 1.55% | 0.59% to 1.64% | ||||||||||||||||||||||
Expected life | 3.77 to 4.53 years | 4.08 to 4.53 years | 4.53 years | ||||||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||||||
Volatility | 45.8% to 49.6% | 51.3% to 57.3% | 54.0% to 54.8% | ||||||||||||||||||||||
Summary of Activity of Restricted Stock | ' | ||||||||||||||||||||||||
The Company began issuing restricted stock units, or RSUs, in 2007. Shares are issued on the date the restricted stock units vest, and the fair value of the underlying stock on the dates of grant is recognized as stock-based compensation over a three or four-year vesting period. A summary of the activity of restricted stock for the related periods are presented below: | |||||||||||||||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||||||||||||||||||
Balance as of December 31, 2010 | 1,592,039 | $ | 22.8 | ||||||||||||||||||||||
Granted | 1,215,771 | 37.15 | |||||||||||||||||||||||
Issued and released | (693,735 | ) | 26.16 | ||||||||||||||||||||||
Cancelled and forfeited | (161,470 | ) | 25.42 | ||||||||||||||||||||||
Balance as of December 31, 2011 | 1,952,605 | 30.33 | |||||||||||||||||||||||
Granted | 1,165,136 | 34.23 | |||||||||||||||||||||||
Issued and released | (882,535 | ) | 29.34 | ||||||||||||||||||||||
Cancelled and forfeited | (411,643 | ) | 30.9 | ||||||||||||||||||||||
Balance as of December 31, 2012 | 1,823,563 | 33.17 | |||||||||||||||||||||||
Granted | 1,119,570 | 36.32 | |||||||||||||||||||||||
Issued and released | (867,213 | ) | 32.46 | ||||||||||||||||||||||
Cancelled and forfeited | (299,750 | ) | 32.29 | ||||||||||||||||||||||
Balance as of December 31, 2013 | 1,776,170 | 35.64 | |||||||||||||||||||||||
Detail of Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||
The following table presents the detail of stock-based compensation expense amounts included in the consolidated statements of operations for each of the periods presented: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenue | $ | 951 | $ | 1,954 | $ | 1,781 | |||||||||||||||||||
Research and development | 18,577 | 16,729 | 13,829 | ||||||||||||||||||||||
Sales, general and administrative | 15,070 | 18,513 | 15,646 | ||||||||||||||||||||||
$ | 34,598 | $ | 37,196 | $ | 31,256 | ||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Loss before income taxes | $ | (11,751 | ) | $ | (77,342 | ) | $ | (4,452 | ) | ||||
Provision for (benefit from) income taxes | 1,937 | 36,321 | (4,485 | ) | |||||||||
Effective tax rate | -16.5 | % | -47 | % | 100.7 | % | |||||||
Components of Domestic and Foreign Loss Before Income Tax Expense | ' | ||||||||||||
The domestic and foreign components of loss before income tax expense were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (20,066 | ) | $ | (63,739 | ) | $ | (8,425 | ) | ||||
Foreign | 8,315 | (13,603 | ) | 3,973 | |||||||||
$ | (11,751 | ) | $ | (77,342 | ) | $ | (4,452 | ) | |||||
Schedule of Income Tax Expense | ' | ||||||||||||
Provision for (benefit from) income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current tax provision (benefit) | |||||||||||||
Domestic | $ | 10 | $ | (320 | ) | $ | (355 | ) | |||||
Foreign | 1,123 | 1,085 | 862 | ||||||||||
1,133 | 765 | 507 | |||||||||||
Deferred tax provision (benefit) | |||||||||||||
Domestic | 713 | 35,344 | (5,000 | ) | |||||||||
Foreign | 91 | 212 | 8 | ||||||||||
804 | 35,556 | (4,992 | ) | ||||||||||
Provision for (benefit from) income taxes | $ | 1,937 | $ | 36,321 | $ | (4,485 | ) | ||||||
Schedule of Effective Tax Rate Differs from United States Federal Statutory Rate | ' | ||||||||||||
The Company’s effective tax rate differs from the United States federal statutory rate as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Stock compensation costs | 1.8 | (1.1 | ) | 42.4 | |||||||||
Other | 1.5 | 0.3 | (3.7 | ) | |||||||||
State taxes, net of federal benefit | (1.6 | ) | (0.9 | ) | (0.6 | ) | |||||||
Foreign income inclusion in the U.S. | (3.8 | ) | (0.4 | ) | (10.0 | ) | |||||||
Research and development credits | 48 | - | 77.6 | ||||||||||
Foreign tax rate differential | 46.7 | (8.8 | ) | (40.0 | ) | ||||||||
Change in valuation allowance | (144.1 | ) | (58.6 | ) | - | ||||||||
Goodwill impairment | - | (12.5 | ) | - | |||||||||
Total | (16.5 | )% | (47.0 | )% | 100.7 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The tax effects of the temporary differences that give rise to deferred tax assets and liabilities are as follows: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Tax credits | $ | 28,758 | $ | 21,353 | |||||||||
Net operating loss carryforwards | 36,645 | 25,868 | |||||||||||
Capitalized research and development | 10 | 22 | |||||||||||
Intangible assets | 1,627 | - | |||||||||||
Stock compensation | 9,035 | 9,066 | |||||||||||
Other | 4,118 | 4,444 | |||||||||||
Gross deferred tax assets | 80,193 | 60,753 | |||||||||||
Less: valuation allowance | (79,928 | ) | (59,736 | ) | |||||||||
Net deferred tax assets | 265 | 1,017 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (1,254 | ) | (1,735 | ) | |||||||||
Other | (1,158 | ) | (686 | ) | |||||||||
Net deferred tax liabilities | $ | (2,147 | ) | $ | (1,404 | ) | |||||||
Reported As | |||||||||||||
Deferred tax assets, current | $ | - | $ | 568 | |||||||||
Deferred tax assets, non-current | 61 | 449 | |||||||||||
Deferred tax liabilities, current | (277 | ) | - | ||||||||||
Deferred tax liabilities, non-current | (1,931 | ) | (2,421 | ) | |||||||||
Net deferred tax liabilities | $ | (2,147 | ) | $ | (1,404 | ) | |||||||
Summary of Activity Related to Unrecognized Tax Benefits | ' | ||||||||||||
The following table summarizes the activity related to the unrecognized tax benefits: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance at beginning of the year | $ | 12,749 | $ | 11,164 | $ | 12,949 | |||||||
Gross increases (decreases) related to prior year's tax positions | (526 | ) | 312 | (3,340 | ) | ||||||||
Gross increases related to current year's tax positions | 2,402 | 1,273 | 1,555 | ||||||||||
Balance at the end of the year | $ | 14,625 | $ | 12,749 | $ | 11,164 | |||||||
Tax Benefit from Preferential Tax Rate Differential | ' | ||||||||||||
Beginning in 2011, the Company operated under tax incentives in Singapore, which are effective through February 2020. The tax incentives are conditional upon the Company meeting certain employment, revenue, and investment thresholds. Because of uncertainty of achieving such thresholds, the Company did not recognize any tax benefits from operating under the tax incentives in Singapore for the years ended December 31, 2012 and 2011. The Company realized benefits from the reduced tax rate for the periods presented as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Provision for Singapore entity at statutory tax rate of 17% | $ | 615 | $ | 351 | $ | 534 | |||||||
Provision for (benefit from) Singapore entity in the consolidated statement of operations | (209 | ) | 351 | 534 | |||||||||
Benefit from preferential tax rate differential | (824 | ) | - | - | |||||||||
Impact of tax benefits per basic and diluted share | $ | (0.02 | ) | $ | - | $ | - | ||||||
Segment_And_Geographical_Infor1
Segment And Geographical Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Sales by Geography | ' | |||||||||||
Sales by geography for the periods indicated were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
United States | $ | 90,537 | $ | 66,839 | $ | 82,277 | ||||||
China | 77,965 | 65,898 | 75,390 | |||||||||
Korea | 30,003 | 16,899 | 12,776 | |||||||||
Mexico | 22,572 | 9,954 | 2,962 | |||||||||
Finland | 17,767 | 2,399 | 4,640 | |||||||||
Taiwan | 26,023 | 25,204 | 31,264 | |||||||||
Japan | 9,231 | 15,820 | 14,377 | |||||||||
Malaysia | 14,789 | 16,021 | 16,871 | |||||||||
Other countries | 15,106 | 16,446 | 18,648 | |||||||||
Total | $ | 303,993 | $ | 235,480 | $ | 259,205 | ||||||
Long Lived Assets | ' | |||||||||||
The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
United States | $ | 25,160 | $ | 27,678 | ||||||||
All other countries | 3,334 | 3,014 | ||||||||||
Total | $ | 28,494 | $ | 30,692 | ||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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 Consolidated Financial Statements) as of December 31, 2013 are as follows: | |||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
2014 | $ | 18,315 | $ | 5,291 | $ | 23,606 | |||||||
2015 | 11,758 | 6,515 | 18,273 | ||||||||||
2016 | 5,150 | 8,236 | 13,386 | ||||||||||
2017 | - | 8,277 | 8,277 | ||||||||||
2018 | - | 8,441 | 8,441 | ||||||||||
2019 thereafter | - | 31,858 | 31,858 | ||||||||||
$ | 35,223 | $ | 68,618 | $ | 103,841 | ||||||||
Less: Interest component (3.75% annual rate) | 1,828 | ||||||||||||
Present value of minimum lease payment | 33,395 | ||||||||||||
Current portion of the obligations | $ | 17,103 | |||||||||||
Long-term portion of obligations | $ | 16,292 | |||||||||||
Selected_Quarterly_Consolidate1
Selected Quarterly Consolidated Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Selected Quarterly Consolidated Financial Data | ' | ||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||
Net revenue | $ | 81,135 | $ | 79,124 | $ | 74,204 | $ | 69,530 | $ | 66,369 | $ | 61,081 | $ | 55,287 | $ | 52,743 | |||||||||||||||||
Cost of revenue | 29,059 | 28,516 | 30,945 | 26,159 | 25,049 | 24,796 | 24,749 | 28,008 | |||||||||||||||||||||||||
Gross profit | 52,076 | 50,608 | 43,259 | 43,371 | 41,320 | 36,285 | 30,538 | 24,735 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Research and development | 36,127 | 33,630 | 32,424 | 32,415 | 29,318 | 27,444 | 26,123 | 27,058 | |||||||||||||||||||||||||
Sales, general and administrative | 17,871 | 14,833 | 16,144 | 15,240 | 21,608 | 19,213 | 18,489 | 12,484 | |||||||||||||||||||||||||
Goodwill impairment | - | - | - | - | 27,680 | - | - | - | |||||||||||||||||||||||||
Total operating expenses | 53,998 | 48,463 | 48,568 | 47,655 | 78,606 | 46,657 | 44,612 | 39,542 | |||||||||||||||||||||||||
Income (loss) from operations | (1,922 | ) | 2,145 | (5,309 | ) | (4,284 | ) | (37,286 | ) | (10,372 | ) | (14,074 | ) | (14,807 | ) | ||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||||||||||||
Interest expense | (395 | ) | (390 | ) | (375 | ) | (342 | ) | (581 | ) | (11 | ) | (22 | ) | (32 | ) | |||||||||||||||||
Other, net | (74 | ) | (126 | ) | (418 | ) | (261 | ) | (164 | ) | 115 | (14 | ) | (94 | ) | ||||||||||||||||||
Total other income (expense), net | (469 | ) | (516 | ) | (793 | ) | (603 | ) | (745 | ) | 104 | (36 | ) | (126 | ) | ||||||||||||||||||
Income (loss) before income taxes | (2,391 | ) | 1,629 | (6,102 | ) | (4,887 | ) | (38,031 | ) | (10,268 | ) | (14,110 | ) | (14,933 | ) | ||||||||||||||||||
Provision for (benefit from) income taxes | 120 | 714 | 677 | 426 | 41,415 | (1,719 | ) | (2,271 | ) | (1,104 | ) | ||||||||||||||||||||||
Net income (loss) | (2,511 | ) | 915 | (6,779 | ) | (5,313 | ) | (79,446 | ) | (8,549 | ) | (11,839 | ) | (13,829 | ) | ||||||||||||||||||
Net loss attributable to non-controlling interest | (2,698 | ) | (3,421 | ) | (2,475 | ) | (2,129 | ) | (607 | ) | (424 | ) | - | - | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 187 | $ | 4,336 | $ | (4,304 | ) | $ | (3,184 | ) | $ | (78,839 | ) | $ | (8,125 | ) | $ | (11,839 | ) | $ | (13,829 | ) | |||||||||||
Earnings per share attributable to the Company: | |||||||||||||||||||||||||||||||||
Net income (loss) per common share, basic | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | $ | (1.56 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.28 | ) | |||||||||||
Net income (loss) per common share, diluted | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | $ | (1.56 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.28 | ) | |||||||||||
-1 | Research and development expense included expenses from the VIE of $1.3 million and $3.0 million for the quarters ended September 30 and December 31, 2012, respectively; and $3.6 million, $3.7 million, $4.7 million and $3.5 million for the quarters ended March 31, June 30, September 30 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||||
-2 | Sales, general and administrative expense for the quarter ended March 31, 2012 includes a one-time credit adjustment related to the settlement of an escrow claim from the Celestial Semiconductor acquisition of $4.4 million. | ||||||||||||||||||||||||||||||||
-3 | Sales, general and administrative expense for the quarter ended September 30, 2012 includes a one-time adjustment related to the loss on disposition of certain consumer product assets of $2.7 million. | ||||||||||||||||||||||||||||||||
-4 | Sales, general and administrative expense for the quarter ended December 31, 2012 includes a one-time adjustment related to the impairment of intangible assets of $5.6 million. | ||||||||||||||||||||||||||||||||
-5 | As a result of the annual goodwill impairment test in 2012, the Company recorded a goodwill impairment charge of $27.7 million in the quarter ended December 31, 2012. | ||||||||||||||||||||||||||||||||
-6 | The provision for income taxes for the quarter ended December 31, 2012 was primarily related to the establishment of valuation allowance against the Company’s federal and state net deferred tax assets. 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. | ||||||||||||||||||||||||||||||||
-7 | Research and development expense for the quarter ended June 30, 2013 includes additional amortization expense of $0.6 million resulting from the change in estimated useful lives of certain consumer related intangible assets. | ||||||||||||||||||||||||||||||||
-8 | Sales, general and administrative expense for the quarter ended June 30, 2013 includes a one-time accrual for a contractual settlement of $1.3 million to a certain customer, which was settled in the third quarter of 2013. | ||||||||||||||||||||||||||||||||
-9 | Research and development expense for the quarter ended December 31, 2013 includes additional amortization expense of $2.9 million resulting from the change in estimated useful lives of certain intangible assets. | ||||||||||||||||||||||||||||||||
-10 | Sales, general and administrative expense for the quarter ended December 31, 2013 includes additional amortization expense of $2.7 million resulting from the change in estimated useful lives of certain intangible assets. |
Organization_And_Significant_A3
Organization And Significant Accounting Policies (Schedule Of Property And Equipment Estimated Useful Lives) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | Software, Computer And Other Equipment | ' |
Property and equipment, Estimated Useful Lives, years | '1 |
Minimum | Test Equipment And Mask Costs | ' |
Property and equipment, Estimated Useful Lives, years | '1 |
Minimum | Furniture, Office Equipment And Leasehold Improvements | ' |
Property and equipment, Estimated Useful Lives, years | '1 |
Maximum | Software, Computer And Other Equipment | ' |
Property and equipment, Estimated Useful Lives, years | '5 |
Maximum | Test Equipment And Mask Costs | ' |
Property and equipment, Estimated Useful Lives, years | '3 |
Maximum | Furniture, Office Equipment And Leasehold Improvements | ' |
Property and equipment, Estimated Useful Lives, years | '5 |
Organization_And_Significant_A4
Organization And Significant Accounting Policies (Percentage of Gross Accounts Receivable) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Phoenics Electronics | ' | ' | |
Percentage of gross accounts receivable | 13.00% | ' | [1] |
Flextronics | ' | ' | |
Percentage of gross accounts receivable | 13.00% | ' | [1] |
Huawei Technologies | ' | ' | |
Percentage of gross accounts receivable | 10.00% | ' | [1] |
[1] | Represents less than 10% of the gross accounts receivable for the respective period end. |
Organization_And_Significant_A5
Organization And Significant Accounting Policies (Percentage Of Gross Accounts Receivable) (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2012 | |
Concentration of accounts receivable | 'Represents less than 10% of the gross accounts receivable for the respective period end. |
Organization_And_Significant_A6
Organization And Significant Accounting Policies (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Percentage of total net revenue | 10.00% | 10.00% | 10.00% |
Advertising costs | $1.40 | $0.90 | $0.80 |
Cisco | ' | ' | ' |
Percentage of total net revenue | 18.60% | 24.30% | 24.00% |
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 | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Net Loss Per Common Share Basic And Diluted Net Loss Per Common Share Detail [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to the Company | $187 | $4,336 | ($4,304) | ($3,184) | ($78,839) | ($8,125) | ($11,839) | ($13,829) | ($2,965) | ($112,632) | $33 |
Weighted average common shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 51,596 | 49,886 | 48,311 |
Dilutive effect of employee stock plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,460 |
Weighted average common shares outstanding - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 51,596 | 49,886 | 50,771 |
Net income (loss ) per common share, basic | $0 | $0.08 | ($0.08) | ($0.06) | ($1.56) | ($0.16) | ($0.24) | ($0.28) | ($0.06) | ($2.26) | $0 |
Net income (loss) per common share, diluted | $0 | $0.08 | ($0.08) | ($0.06) | ($1.56) | ($0.16) | ($0.24) | ($0.28) | ($0.06) | ($2.26) | $0 |
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) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
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 per common share | 3,552 | 4,198 | 507 |
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 per common share | 1,776 | 1,824 | 28 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Fair Value, Inputs, Level 1, USD $) | Dec. 31, 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 | $94.20 | $50.20 |
Balance_Sheet_Components_Inven
Balance Sheet Components (Inventories) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work-in-process | $35,027 | $33,418 |
Finished goods | 10,741 | 13,090 |
Inventories | $45,768 | $46,508 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment, Net) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $70,340 | $69,423 |
Less: accumulated depreciation and amortization | -41,846 | -38,731 |
Property and equipment, net | 28,494 | 30,692 |
Test Equipment And Mask Costs | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 34,457 | 32,771 |
Software, computer and other equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 34,945 | 35,563 |
Furniture, Office Equipment And Leasehold Improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $938 | $1,089 |
Balance_Sheet_Components_Other
Balance Sheet Components (Other Accrued Expenses and Other Current Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued compensation and related benefits | $4,262 | $4,458 |
Professional fees | 1,536 | 1,067 |
Customer deposits | 1,470 | 385 |
Restructuring related payables | 57 | 210 |
Income tax payable | 544 | 467 |
Deferred tax liability | 277 | ' |
Other | 1,690 | 2,093 |
Accrued expenses and other current liabilities | $9,836 | $8,680 |
Balance_Sheet_Components_Produ
Balance Sheet Components (Product Warranty Liability) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Beginning balance | $440 | $412 | $234 |
Accruals and adjustments | 206 | 467 | 802 |
Settlements | -479 | -439 | -624 |
Ending balance | $167 | $440 | $412 |
Balance_Sheet_Components_Defer
Balance Sheet Components (Deferred Revenue) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $8,669 | $12,944 |
Service / Support and Maintenance | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 5,326 | 8,017 |
Software License / Subscription | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 1,176 | 2,529 |
Distributor Deferred Margin | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $2,167 | $2,398 |
Balance_Sheet_Components_Other1
Balance Sheet Components (Other Non-Current Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Noncurrent [Abstract] | ' | ' |
Accrued rent | $1,034 | $659 |
Income tax payable | 698 | 779 |
Restructuring related payables | ' | 52 |
Other | 612 | 480 |
Other non-current liabilities | $2,344 | $1,970 |
Balance_Sheet_Components_Narra
Balance Sheet Components (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Balance Sheet Components Narrative Detail [Line Items] | ' | ' | ' | ' |
Inventory Write-down | $3.90 | ' | ' | ' |
Depreciation expense related to property and equipment | ' | 17.7 | 14.8 | 11.8 |
Capitalized mask cost | ' | 3.6 | 4.8 | 5.1 |
Amortization expense | ' | 4.5 | 4.2 | 2.7 |
Unamortized balance of capitalized mask costs | ' | 2.3 | 3.3 | ' |
Capital lease and certain financing arrangements | ' | 16.2 | 16.8 | ' |
Amortization expense related to assets under capital lease and certain financing arrangements | ' | $6.50 | $4.80 | $4.10 |
Business_Combinations_and_Dive2
Business Combinations and Divestitures (Purchase Price Allocation) (Detail) (USD $) | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | Wavesat Inc. | Celestial Semiconductor, Ltd | |||
Business Acquisition Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Net tangible assets (Liabilities) | ' | ' | ' | ($1,912) | $436 |
IPR&D | ' | ' | ' | 800 | 600 |
Other identifiable intangible assets | ' | ' | ' | 3,700 | 20,000 |
Goodwill | 71,478 | 2,200 | 71,478 | 7,912 | 36,260 |
Total purchase price | ' | ' | ' | $10,500 | $57,296 |
Business_Combinations_and_Dive3
Business Combinations and Divestitures (Total Purchase Price of Business Acquired) (Detail) (Celestial Semiconductor, Ltd, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Celestial Semiconductor, Ltd | ' |
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | ' |
Cash consideration | $20,606 |
Common stock (758,265 shares at $43.86 per share) | 33,258 |
Estimated fair value of the contingent earn-out consideration to other selling shareholders' | 3,432 |
Total purchase price | $57,296 |
Business_Combinations_and_Dive4
Business Combinations and Divestitures (Total Purchase Price of Business Acquired) (Parenthetical) (Detail) (Celestial Semiconductor, Ltd, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Celestial Semiconductor, Ltd | ' |
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | ' |
Common Stock, Shares, Issued | 758,265 |
Common stock value per share | $43.86 |
Business_Combinations_and_Dive5
Business Combinations and Divestitures (Pro Forma Financial Information) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Actual From Acquisition Dates | ' |
Business Combination Separately Recognized Transactions [Line Items] | ' |
Net Revenue | $4,015 |
Net Loss | -16,740 |
Supplemental Pro Forma Values | ' |
Business Combination Separately Recognized Transactions [Line Items] | ' |
Net Revenue | 259,525 |
Net Loss | ($5,439) |
Business_Combinations_and_Dive6
Business Combinations and Divestitures - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 29, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
Non-controlling Interest | Convertible Debt Securities | Variable interest entity | Variable interest entity | Wavesat Inc. | Wavesat Inc. | Wavesat Inc. | Wavesat Inc. | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Celestial Semiconductor, Ltd | Equivalent Common Stock | Supplemental Pro Forma Values | Supplemental Pro Forma Values | Supplemental Pro Forma Values | ||||||||||||||
Existing Technology | Core Technology | Trademarks | Escrow Claim | Asset Purchase Agreement | Affected Employees | Other Selling Shareholders | Existing Technology | Core Technology | Trademarks | Selling, General and Administrative Expenses | Finite-Lived Intangible Assets | Customer Contracts And Relations | Order Backlog | Finite-Lived Intangible Assets | In Process Research And Developments | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,500,000 | ' | ' | ' | ' | ' | ' | $57,296,000 | ' | ' | ' | $35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jan-11 | ' | ' | ' | ' | 1-Mar-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other identifiable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 900,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,300,000 | 3,000,000 | 1,000,000 | ' | ' | 4,600,000 | 100,000 | ' | ' | ' | ' |
Goodwill expected to be deductible for tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | ' | ' | 19,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount held in escrow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average stock price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 758,265 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 806,265 | ' | ' | ' |
Shares issued under holdback share agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,733 | ' | ' | ' | ' | 48,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares issued under holdback share agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense vesting period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent earn-out provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The estimated fair value of the total earn-out | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued compensation and related cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial contingent earn-out recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial fair value of IPR&D | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' |
Estimated useful life, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
IPR&D written-off and write-down of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 2,400,000 |
Intangible amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' |
Convertible notes receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | 11,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible security | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on notes receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible note to third party investor paid by Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes exchanged | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds from convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, cash | ' | 1,900,000 | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | 1,900,000 | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, property and equipment and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,700,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, accounts payable and accrued expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, notes payable and convertible security | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,500,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-controlling interest | ' | -11,753,000 | ' | ' | ' | -1,030,000 | ' | ' | ' | ' | -11,753,000 | -1,030,000 | ' | ' | ' | 11,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, portion of net loss | ' | 187,000 | 4,336,000 | -4,304,000 | -3,184,000 | -78,839,000 | -8,125,000 | -11,839,000 | -13,829,000 | ' | -2,965,000 | -112,632,000 | 33,000 | ' | ' | 5,200,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, other short-term and long-term payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash consideration on sale | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Gain) loss on disposition of certain consumer product assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | 1,000,000 | -2,728,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total installment cash consideration on disposition of certain consumer product assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net book value of assets held for sale | 2,600,000 | ' | ' | ' | ' | 2,609,000 | ' | ' | ' | ' | ' | 2,609,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 2,200,000 | 71,478,000 | ' | ' | ' | 71,478,000 | ' | ' | ' | ' | 71,478,000 | 71,478,000 | ' | ' | ' | ' | ' | 7,912,000 | ' | ' | ' | ' | ' | ' | 36,260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | $122,188 | $125,619 |
Finite-lived intangible assets, Accumulated Amortization | -78,948 | -62,731 |
Finite-lived intangible assets, Net | 43,240 | 62,888 |
Weighted average remaining amortization period (years) | '6 years 10 months 13 days | '6 years 6 months 26 days |
Existing and core technology - product | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 42,086 | 47,658 |
Finite-lived intangible assets, Accumulated Amortization | -35,637 | -35,326 |
Finite-lived intangible assets, Net | 6,449 | 12,332 |
Weighted average remaining amortization period (years) | '1 year 8 months 5 days | '2 years 4 months 21 days |
Technology licenses | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 68,175 | 66,034 |
Finite-lived intangible assets, Accumulated Amortization | -32,015 | -20,078 |
Finite-lived intangible assets, Net | 36,160 | 45,956 |
Weighted average remaining amortization period (years) | '7 years 10 months 17 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 | -8,827 | -5,291 |
Finite-lived intangible assets, Net | 164 | 3,700 |
Weighted average remaining amortization period (years) | '1 year 3 months 18 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 | -1,829 | -1,396 |
Finite-lived intangible assets, Net | 467 | 900 |
Weighted average remaining amortization period (years) | '1 year 1 month 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 | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net (Estimated Future Amortization Expense from Amortizable Intangible Assets) (Detail) (USD $) | Dec. 31, 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] | ' | ' |
2014 | $13,084 | ' |
2015 | 6,474 | ' |
2016 | 4,367 | ' |
2017 | 3,195 | ' |
2018 | 3,057 | ' |
2019 and thereafter | 13,063 | ' |
Finite-lived intangible assets, Net | $43,240 | $62,888 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2013 | |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | $71,478,000 | $71,478,000 | $71,478,000 | ' | $2,200,000 |
Goodwill impairment charge | 27,680,000 | ' | 27,680,000 | ' | ' |
Amortization expense | ' | 23,300,000 | 17,200,000 | 13,900,000 | ' |
Amortization expense due to change in estimated useful lives | ' | 6,200,000 | ' | ' | ' |
Earnings per share attributable to the company | ' | $0.12 | ' | ' | ' |
Software and Services | ' | ' | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | 15,200,000 | ' | 15,200,000 | ' | ' |
Goodwill impairment charge | ' | ' | 27,700,000 | ' | ' |
Impairment loss related to certain intangible assets | ' | ' | 5,600,000 | ' | ' |
Semiconductor products | ' | ' | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | 56,300,000 | ' | 56,300,000 | ' | ' |
Impairment loss related to certain intangible assets | ' | ' | ' | 2,400,000 | ' |
IPR&D written-off and write-down of intangible assets | ' | ' | ' | $1,100,000 | ' |
Restructuring_Accrual_Accrued_
Restructuring Accrual (Accrued Restructuring Liabilities Including Related Activities) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost And Reserve [Line Items] | ' | ' |
Accrued restructuring at beginning of the year | $262 | $1,388 |
Additions | 1,371 | 1,665 |
Cash payments and other non-cash adjustments | -1,576 | -2,791 |
Accrued restructuring at end of the year | 57 | 262 |
Less: current portion | 57 | 210 |
Restructuring related payables | ' | 52 |
Severance and other benefits | ' | ' |
Restructuring Cost And Reserve [Line Items] | ' | ' |
Accrued restructuring at beginning of the year | ' | ' |
Additions | 1,371 | 1,245 |
Cash payments and other non-cash adjustments | -1,371 | -1,245 |
Accrued restructuring at end of the year | ' | ' |
Less: current portion | ' | ' |
Restructuring related payables | ' | ' |
Excess Facility Related Costs | ' | ' |
Restructuring Cost And Reserve [Line Items] | ' | ' |
Accrued restructuring at beginning of the year | 262 | 1,388 |
Additions | ' | 420 |
Cash payments and other non-cash adjustments | -205 | -1,546 |
Accrued restructuring at end of the year | 57 | 262 |
Less: current portion | 57 | 210 |
Restructuring related payables | ' | $52 |
Restructuring_Accrual_Narrativ
Restructuring Accrual (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' |
Additional restructuring accrual | $0.40 | $1.40 | $1.20 |
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 $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
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 | 4,651,720 | 5,613,564 |
Number of Shares Outstanding, Options granted | 242,375 | 354,834 | 403,960 |
Number of Shares Outstanding, Options exercised | -723,047 | -645,104 | -1,265,016 |
Number of Shares Outstanding, Options cancelled and forfeited | -164,816 | -163,746 | -100,788 |
Number of Shares Outstanding, Ending balance | 3,552,216 | 4,197,704 | 4,651,720 |
Weighted Average Exercise Price, Beginning balance | $16.83 | $12.34 | $12.34 |
Weighted Average Exercise Price, Options granted | $37.15 | $33.69 | $37.81 |
Weighted Average Exercise Price, Options exercised | $14.95 | $12.87 | $9.54 |
Weighted Average Exercise Price, Options cancelled and forfeited | $34.36 | $23.89 | $15.35 |
Weighted Average Exercise Price, Ending balance | $17.79 | $16.83 | $12.34 |
Recovered_Sheet1
Equity (Summary Of Stock Options Outstanding) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercisable Options, Number of Shares | 3,139,895 |
Exercisable Options, Weighted Average Exercise Price | $15.36 |
Exercisable, Weighted Average Remaining Contractual Term | '2 years 6 months |
Exercisable, Aggregate Intrinsic Value | $60,983,467 |
Outstanding Options, Vested and expected to vest, Number of Shares | 3,525,967 |
Outstanding Options, Vested and expected to vest, Weighted Average Remaining Contractual Term | '2 years 9 months 22 days |
Outstanding Options, Vested and expected to vest, Weighted Average Exercise price | $17.65 |
Vested and expected to vest, Aggregate Intrinsic Value | 61,216,433 |
0.30 - 1.50 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $0.30 |
Exercise Prices, upper range limit | $1.50 |
Outstanding Options, Number of Shares | 114,669 |
Outstanding Options, Weighted Average Remaining Contractual Term | '1 year 5 months 1 day |
Outstanding Options, Weighted Average Exercise Price | $0.90 |
Exercisable Options, Number of Shares | 114,669 |
Exercisable Options, Weighted Average Exercise Price | $0.90 |
3.04 - 3.04 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $3.04 |
Exercise Prices, upper range limit | $3.04 |
Outstanding Options, Number of Shares | 563,549 |
Outstanding Options, Weighted Average Remaining Contractual Term | '2 years 2 months 19 days |
Outstanding Options, Weighted Average Exercise Price | $3.04 |
Exercisable Options, Number of Shares | 563,549 |
Exercisable Options, Weighted Average Exercise Price | $3.04 |
3.74 - 8.52 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $3.74 |
Exercise Prices, upper range limit | $8.52 |
Outstanding Options, Number of Shares | 95,720 |
Outstanding Options, Weighted Average Remaining Contractual Term | '2 years 3 months 22 days |
Outstanding Options, Weighted Average Exercise Price | $7.93 |
Exercisable Options, Number of Shares | 95,720 |
Exercisable Options, Weighted Average Exercise Price | $7.93 |
10.32 - 10.32 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $10.32 |
Exercise Prices, upper range limit | $10.32 |
Outstanding Options, Number of Shares | 765,745 |
Outstanding Options, Weighted Average Remaining Contractual Term | '2 years 1 month 6 days |
Outstanding Options, Weighted Average Exercise Price | $10.32 |
Exercisable Options, Number of Shares | 765,745 |
Exercisable Options, Weighted Average Exercise Price | $10.32 |
12.56 - 14.42 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $12.56 |
Exercise Prices, upper range limit | $14.42 |
Outstanding Options, Number of Shares | 79,010 |
Outstanding Options, Weighted Average Remaining Contractual Term | '2 years 11 days |
Outstanding Options, Weighted Average Exercise Price | $13.87 |
Exercisable Options, Number of Shares | 79,010 |
Exercisable Options, Weighted Average Exercise Price | $13.87 |
14.80 - 14.80 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $14.80 |
Exercise Prices, upper range limit | $14.80 |
Outstanding Options, Number of Shares | 445,994 |
Outstanding Options, Weighted Average Remaining Contractual Term | '1 year 2 months 16 days |
Outstanding Options, Weighted Average Exercise Price | $14.80 |
Exercisable Options, Number of Shares | 445,994 |
Exercisable Options, Weighted Average Exercise Price | $14.80 |
16.32 - 24.16 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $16.32 |
Exercise Prices, upper range limit | $24.16 |
Outstanding Options, Number of Shares | 502,120 |
Outstanding Options, Weighted Average Remaining Contractual Term | '2 years 9 months 18 days |
Outstanding Options, Weighted Average Exercise Price | $22.27 |
Exercisable Options, Number of Shares | 495,815 |
Exercisable Options, Weighted Average Exercise Price | $22.24 |
24.99 - 42.01 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $24.99 |
Exercise Prices, upper range limit | $42.01 |
Outstanding Options, Number of Shares | 985,409 |
Outstanding Options, Weighted Average Remaining Contractual Term | '4 years 9 months 7 days |
Outstanding Options, Weighted Average Exercise Price | $34.34 |
Exercisable Options, Number of Shares | 579,393 |
Exercisable Options, Weighted Average Exercise Price | $32.83 |
0.30 - 42.01 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Exercise Prices, lower range limit | $0.30 |
Exercise Prices, upper range limit | $42.01 |
Outstanding Options, Number of Shares | 3,552,216 |
Outstanding Options, Weighted Average Remaining Contractual Term | '2 years 9 months 29 days |
Outstanding Options, Weighted Average Exercise Price | $17.79 |
Exercisable Options, Number of Shares | 3,139,895 |
Exercisable Options, Weighted Average Exercise Price | $15.36 |
Aggregate Intrinsic Value | $61,217,211 |
Equity_Assumptions_of_Fair_Val
Equity (Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option Pricing Model) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate, minimum | 0.32% | 0.57% | 0.59% |
Risk-free interest rate, maximum | 1.04% | 1.55% | 1.64% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility, minimum | 45.80% | 51.30% | 54.00% |
Volatility, maximum | 49.60% | 57.30% | 54.80% |
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 | '4 years 6 months 11 days |
Equity_Summary_of_Activity_of_
Equity (Summary of Activity of Restricted Stock) (Detail) (2007 Stock Incentive Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
2007 Stock Incentive Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Number of Shares, Beginning balance | 1,823,563 | 1,952,605 | 1,592,039 |
Number of Shares, Granted | 1,119,570 | 1,165,136 | 1,215,771 |
Number of Shares, Issued and released | -867,213 | -882,535 | -693,735 |
Number of Shares, Cancelled and forfeited | -299,750 | -411,643 | -161,470 |
Number of Shares, Ending balance | 1,776,170 | 1,823,563 | 1,952,605 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $33.17 | $30.33 | $22.80 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $36.32 | $34.23 | $37.15 |
Weighted-Average Grant Date Fair Value Per Share, Issued and released | $32.46 | $29.34 | $26.16 |
Weighted-Average Grant Date Fair Value Per Share, Cancelled and forfeited | $32.29 | $30.90 | $25.42 |
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $35.64 | $33.17 | $30.33 |
Equity_Detail_of_StockBased_Co
Equity (Detail of Stock-Based Compensation Expense) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $34,598 | $37,196 | $31,256 |
Cost of revenue | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 951 | 1,954 | 1,781 |
Research and development | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 18,577 | 16,729 | 13,829 |
Selling, General and Administrative Expenses | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $15,070 | $18,513 | $15,646 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common stock, shares authorized | 200,000,000 | 200,000,000 | ' |
Common stock, par value | $0.00 | $0.00 | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ' |
Preferred stock, par value | $0.00 | $0.00 | ' |
Preferred stock, shares outstanding | 0 | 0 | ' |
Aggregate intrinsic value | $16 | $12.60 | $41.30 |
Estimated weighted-average grant date fair value of options granted | $14.91 | $14.79 | $17.29 |
Unrecognized compensation cost, net of estimated forfeitures | 5.6 | ' | ' |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | '2 years 2 months 23 days | ' | ' |
Restricted stock units | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost, net of estimated forfeitures | 50 | ' | ' |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | '2 years 5 months 9 days | ' | ' |
Total intrinsic value of the RSU's issued at period end | $56.30 | ' | ' |
2007 Stock Incentive Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common Stock, shares reserved for issuance | 5,000,000 | ' | ' |
Common stock, shares reserved for issuance increase annually, number of years | '10 years | ' | ' |
Common stock, shares reserved for issuance increase annually, duration | 'January 1, 2008 through January 1, 2017 | ' | ' |
Common stock, shares reserved for issuance increase annually, percentage | 5.00% | ' | ' |
The maximum number of shares that may be issued pursuant to the exercise of incentive stock options | 10,000,000 | ' | ' |
Shares reserved for issuance | 7,706,559 | ' | ' |
Number of Shares Outstanding, Options granted | 12,944,987 | ' | ' |
Stock incentive plan shares vesting six months after the date of grant | 12.50% | ' | ' |
Stock incentive plan shares vesting monthly after six months | 2.08% | ' | ' |
Compensation expense vesting period (in years) | '3 years 6 months | ' | ' |
2007 Stock Incentive Plan | Restricted stock units | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Compensation expense vesting period (in years) | '4 years | ' | ' |
2007 Stock Incentive Plan | Minimum | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock incentive plan term of awards expiration period | '7 years | ' | ' |
2007 Stock Incentive Plan | Maximum | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock incentive plan term of awards expiration period | '10 years | ' | ' |
2001 Stock Incentive Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock incentive plan shares vesting six months after the date of grant | 12.50% | ' | ' |
Stock incentive plan shares vesting monthly after six months | 2.08% | ' | ' |
Stock incentive plan term of awards expiration period | '10 years | ' | ' |
2001 Stock Incentive Plan | Minimum | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Compensation expense vesting period (in years) | '3 years 6 months | ' | ' |
2001 Stock Incentive Plan | Maximum | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Compensation expense vesting period (in years) | '4 years 6 months | ' | ' |
Income_Taxes_Provision_for_Ben
Income Taxes (Provision for (Benefit from) Income Taxes and Effective Tax Rates) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss before income taxes | ($2,391) | $1,629 | ($6,102) | ($4,887) | ($38,031) | ($10,268) | ($14,110) | ($14,933) | ($11,751) | ($77,342) | ($4,452) |
Provision for (benefit from) income taxes | $120 | $714 | $677 | $426 | $41,415 | ($1,719) | ($2,271) | ($1,104) | $1,937 | $36,321 | ($4,485) |
Effective tax rate | ' | ' | ' | ' | ' | ' | ' | ' | -16.50% | -47.00% | 100.70% |
Income_Taxes_Components_of_Dom
Income Taxes (Components of Domestic and Foreign Loss Before Income Tax Expense) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ($20,066) | ($63,739) | ($8,425) |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 8,315 | -13,603 | 3,973 |
Loss before income taxes | ($2,391) | $1,629 | ($6,102) | ($4,887) | ($38,031) | ($10,268) | ($14,110) | ($14,933) | ($11,751) | ($77,342) | ($4,452) |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Expense) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current tax provision (benefit), Domestic | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ($320) | ($355) |
Current tax provision (benefit), Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 1,123 | 1,085 | 862 |
Current tax provision (benefit), total | ' | ' | ' | ' | ' | ' | ' | ' | 1,133 | 765 | 507 |
Deferred tax provision (benefit), Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 713 | 35,344 | -5,000 |
Deferred tax provision (benefit), Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 91 | 212 | 8 |
Deferred tax provision (benefit), total | ' | ' | ' | ' | ' | ' | ' | ' | 804 | 35,556 | -4,992 |
Provision for (benefit from) income taxes | $120 | $714 | $677 | $426 | $41,415 | ($1,719) | ($2,271) | ($1,104) | $1,937 | $36,321 | ($4,485) |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Tax Rate Differs from United States Federal Statutory Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Income tax at statutory rate | 35.00% | 35.00% | 35.00% |
Stock compensation costs | 1.80% | -1.10% | 42.40% |
Other | 1.50% | 0.30% | -3.70% |
State taxes, net of federal benefit | -1.60% | -0.90% | -0.60% |
Foreign income inclusion in the U.S. | -3.80% | -0.40% | -10.00% |
Research and development credits | 48.00% | ' | 77.60% |
Foreign tax rate differential | 46.70% | -8.80% | -40.00% |
Change in valuation allowance | -144.10% | -58.60% | ' |
Goodwill impairment | ' | -12.50% | ' |
Effective tax rate | -16.50% | -47.00% | 100.70% |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferrred Tax Assets and Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Line Items] | ' | ' |
Deferred tax assets, Tax credits | $28,758 | $21,353 |
Deferred tax assets, Net operating loss carryforwards | 36,645 | 25,868 |
Deferred tax assets, Capitalized research and development | 10 | 22 |
Intangible assets | 1,627 | ' |
Deferred tax assets, Stock compensation | 9,035 | 9,066 |
Deferred tax assets, Other | 4,118 | 4,444 |
Gross deferred tax assets | 80,193 | 60,753 |
Less: valuation allowance | -79,928 | -59,736 |
Net deferred tax assets | 265 | 1,017 |
Depreciation and amortization | -1,254 | -1,735 |
Deferred tax liabilities, Other | -1,158 | -686 |
Net deferred tax liabilities | -2,147 | -1,404 |
Deferred tax assets, current | ' | 568 |
Deferred tax assets, non-current | 61 | 449 |
Deferred tax liabilities, current | -277 | ' |
Deferred tax liabilities, non-current | -1,931 | -2,421 |
Net deferred tax liabilities | ($2,147) | ($1,404) |
Income_Taxes_Summary_of_Activi
Income Taxes (Summary of Activity Related to Unrecognized Tax Benefits) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of the year | $12,749 | $11,164 | $12,949 |
Gross increases (decreases) related to prior year's tax positions | -526 | 312 | -3,340 |
Gross increases related to current year's tax positions | 2,402 | 1,273 | 1,555 |
Balance at the end of the year | $14,625 | $12,749 | $11,164 |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Line Items] | ' | ' |
Tax credit carryforwards, various miscellaneous | $0.90 | ' |
Net operating losses and research credits | 33.6 | ' |
Undistributed earnings of foreign subsidiary | 1.1 | 0.9 |
Unrecognized tax benefit that would impact effective tax rate | 0.7 | ' |
Minimum | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Annual limitations on use of net operating losses and research credit | 1.8 | ' |
Maximum | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Annual limitations on use of net operating losses and research credit | 5.6 | ' |
Stock Option | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Stock-based compensation, stock option benefits recorded to equity | 47.5 | ' |
Federal | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Net operating loss carryforwards | 265.9 | ' |
Net operating loss carryforwards, expire year | 31-Jan-20 | ' |
Tax credit carryforwards, research and development | 25.1 | ' |
Tax credit carryforwards, expire year | 1-Jan-20 | ' |
Federal | Stock Option | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Net operating loss carryforwards | 122.6 | ' |
State | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Net operating loss carryforwards | 167 | ' |
Net operating loss carryforwards, expire year | 31-Jan-14 | ' |
Tax credit carryforwards, research and development | 14 | ' |
Tax credit carryforwards, expire year | 1-Jan-16 | ' |
State | Stock Option | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' |
Net operating loss carryforwards | $77.50 | ' |
Income_Taxes_Benefits_from_the
Income Taxes (Benefits from the Reduced Tax Rate) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for (benefit from) Singapore entity in the consolidated statement of operations | $120 | $714 | $677 | $426 | $41,415 | ($1,719) | ($2,271) | ($1,104) | $1,937 | $36,321 | ($4,485) |
Singapore entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for Singapore entity at statutory tax rate of 17% | ' | ' | ' | ' | ' | ' | ' | ' | 615 | 351 | 534 |
Provision for (benefit from) Singapore entity in the consolidated statement of operations | ' | ' | ' | ' | ' | ' | ' | ' | -209 | 351 | 534 |
Benefit from preferential tax rate differential | ' | ' | ' | ' | ' | ' | ' | ' | ($824) | ' | ' |
Impact of tax benefits per basic and diluted share | ' | ' | ' | ' | ' | ' | ' | ' | ($0.02) | ' | ' |
Income_Taxes_Benefits_from_the1
Income Taxes (Benefits from the Reduced Tax Rate (Parenthetical)) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Income tax at statutory rate | 35.00% | 35.00% | 35.00% |
Singapore entity | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Income tax at statutory rate | 17.00% | ' | ' |
Retirement_Plan_Narrative_Deta
Retirement Plan (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Matching contribution by employer percentage | 50.00% | ' | ' |
Employer defined contribution on per employee | $2,000 | ' | ' |
Defined contribution (401K match) for the period | 800,000 | 700,000 | 700,000 |
Long-term liabilities on severance plan | $400,000 | $400,000 | ' |
Segment_and_Geographic_Informa
Segment and Geographic Information (Sales by Geography) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | $81,135 | $79,124 | $74,204 | $69,530 | $66,369 | $61,081 | $55,287 | $52,743 | $303,993 | $235,480 | $259,205 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 90,537 | 66,839 | 82,277 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 77,965 | 65,898 | 75,390 |
Korea | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 30,003 | 16,899 | 12,776 |
Mexico | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 22,572 | 9,954 | 2,962 |
Finland | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 17,767 | 2,399 | 4,640 |
Taiwan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 26,023 | 25,204 | 31,264 |
Japan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 9,231 | 15,820 | 14,377 |
Malaysia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | 14,789 | 16,021 | 16,871 |
Other Countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | ' | ' | ' | ' | ' | ' | ' | ' | $15,106 | $16,446 | $18,648 |
Recovered_Sheet2
Segment and Geographical Information (Long Lived Assets) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $28,494 | $30,692 |
United States | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 25,160 | 27,678 |
All Other Countries | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $3,334 | $3,014 |
Recovered_Sheet3
Segment and Geographical Information (Narrative) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Service revenue minimum percentage | 10.00% | 10.00% | 10.00% |
Recovered_Sheet4
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Lease Agreements) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Capital Leased Assets [Line Items] | ' | ' |
Capital lease and technology license obligations | $17,103 | $16,500 |
Long-term portion of obligations | 16,292 | 24,832 |
2014 | 23,606 | ' |
2015 | 18,273 | ' |
2016 | 13,386 | ' |
2017 | 8,277 | ' |
2018 | 8,441 | ' |
2019 thereafter | 31,858 | ' |
Total | 103,841 | ' |
Capital Lease and Technology License Obligations | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
2014 | 18,315 | ' |
2015 | 11,758 | ' |
2016 | 5,150 | ' |
2017 | ' | ' |
2018 | ' | ' |
2019 thereafter | ' | ' |
Total | 35,223 | ' |
Less: Interest component (3.75% annual rate) | 1,828 | ' |
Present value of minimum lease payment | 33,395 | ' |
Capital lease and technology license obligations | 17,103 | ' |
Long-term portion of obligations | 16,292 | ' |
Operating Leases | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
2014 | 5,291 | ' |
2015 | 6,515 | ' |
2016 | 8,236 | ' |
2017 | 8,277 | ' |
2018 | 8,441 | ' |
2019 thereafter | 31,858 | ' |
Total | $68,618 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Lease Agreements) (Parenthetical) (Detail) | Dec. 31, 2013 |
Capital Leased Assets [Line Items] | ' |
Interest component | 3.75% |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 |
VIE | New San Jose California Lease | San Jose California | First Twelve Months | Thereafter | Thirteen Through Twenty Four Months | ||||||
New San Jose California Lease | New San Jose California Lease | New San Jose California Lease | |||||||||
sqft | sqft | ||||||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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-Oct-22 | 1-Oct-22 | ' | ' | ' |
Lease agreement monthly payment | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | $0.25 |
Annual increase in lease rate | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' |
Operating leases, rent expense | ' | ' | 5.1 | 5.4 | 5.1 | ' | ' | ' | ' | ' | ' |
Long-term purchase commitment, amount | ' | 5.5 | ' | ' | ' | 6.1 | ' | ' | ' | ' | ' |
Long-term purchase commitment minimum annual spending amount | ' | $2.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term purchase commitment, year of maturity | ' | 'Two years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement agreement payment frequency installment period | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' |
Selected_Quarterly_Consolidate2
Selected Quarterly Consolidated Financial Data (Selected Quarterly Consolidated Financial Data) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $81,135 | $79,124 | $74,204 | $69,530 | $66,369 | $61,081 | $55,287 | $52,743 | $303,993 | $235,480 | $259,205 |
Cost of revenue | 29,059 | 28,516 | 30,945 | 26,159 | 25,049 | 24,796 | 24,749 | 28,008 | 114,679 | 102,602 | 104,281 |
Gross profit | 52,076 | 50,608 | 43,259 | 43,371 | 41,320 | 36,285 | 30,538 | 24,735 | 189,314 | 132,878 | 154,924 |
Research and development | 36,127 | 33,630 | 32,424 | 32,415 | 29,318 | 27,444 | 26,123 | 27,058 | 134,596 | 109,943 | 92,197 |
Sales, general and administrative | 17,871 | 14,833 | 16,144 | 15,240 | 21,608 | 19,213 | 18,489 | 12,484 | 64,088 | 71,794 | 66,771 |
Goodwill impairment | ' | ' | ' | ' | 27,680 | ' | ' | ' | ' | 27,680 | ' |
Total operating expenses | 53,998 | 48,463 | 48,568 | 47,655 | 78,606 | 46,657 | 44,612 | 39,542 | 198,684 | 209,417 | 158,968 |
Income (loss) from operations | -1,922 | 2,145 | -5,309 | -4,284 | -37,286 | -10,372 | -14,074 | -14,807 | -9,370 | -76,539 | -4,044 |
Interest expense | -395 | -390 | -375 | -342 | -581 | -11 | -22 | -32 | -1,502 | -646 | -229 |
Other, net | -74 | -126 | -418 | -261 | -164 | 115 | -14 | -94 | -879 | -157 | -179 |
Total other income (expense), net | -469 | -516 | -793 | -603 | -745 | 104 | -36 | -126 | -2,381 | -803 | -408 |
Income (loss) before income taxes | -2,391 | 1,629 | -6,102 | -4,887 | -38,031 | -10,268 | -14,110 | -14,933 | -11,751 | -77,342 | -4,452 |
Provision for (benefit from) income taxes | 120 | 714 | 677 | 426 | 41,415 | -1,719 | -2,271 | -1,104 | 1,937 | 36,321 | -4,485 |
Net income (loss) | -2,511 | 915 | -6,779 | -5,313 | -79,446 | -8,549 | -11,839 | -13,829 | -13,688 | -113,663 | 33 |
Net loss attributable to non-controlling interest | -2,698 | -3,421 | -2,475 | -2,129 | -607 | -424 | ' | ' | -10,723 | -1,031 | ' |
Net income (loss) attributable to the Company | $187 | $4,336 | ($4,304) | ($3,184) | ($78,839) | ($8,125) | ($11,839) | ($13,829) | ($2,965) | ($112,632) | $33 |
Net income (loss ) per common share, basic | $0 | $0.08 | ($0.08) | ($0.06) | ($1.56) | ($0.16) | ($0.24) | ($0.28) | ($0.06) | ($2.26) | $0 |
Net income (loss) per common share, diluted | $0 | $0.08 | ($0.08) | ($0.06) | ($1.56) | ($0.16) | ($0.24) | ($0.28) | ($0.06) | ($2.26) | $0 |
Selected_Quarterly_Consolidate3
Selected Quarterly Consolidated Financial Data (Selected Quarterly Consolidated Financial Data) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | $36,127 | $33,630 | $32,424 | $32,415 | $29,318 | $27,444 | $26,123 | $27,058 | $134,596 | $109,943 | $92,197 |
Sales, general and administrative | 17,871 | 14,833 | 16,144 | 15,240 | 21,608 | 19,213 | 18,489 | 12,484 | 64,088 | 71,794 | 66,771 |
Goodwill impairment | ' | ' | ' | ' | 27,680 | ' | ' | ' | ' | 27,680 | ' |
Change in Estimated Useful Lives of Consumer Related Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | 2,900 | ' | 600 | ' | ' | ' | ' | ' | ' | ' | ' |
Sales, general and administrative | 2,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales, general and administrative | ' | ' | 1,300 | ' | ' | ' | ' | ' | ' | ' | ' |
Escrow Claim | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales, general and administrative | ' | ' | ' | ' | ' | ' | ' | 4,400 | ' | ' | ' |
Loss on Disposal of Certain Consumer Product Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales, general and administrative | ' | ' | ' | ' | ' | 2,700 | ' | ' | ' | ' | ' |
Impairment of Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales, general and administrative | ' | ' | ' | ' | 5,600 | ' | ' | ' | ' | ' | ' |
VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect Of Fourth Quarter Events [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | $3,500 | $4,700 | $3,700 | $3,600 | $3,000 | $1,300 | ' | ' | ' | ' | ' |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts and Reserves (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | $24 | $80 | $47 |
Additions | 3 | 42 | 290 |
Deductions | -3 | -98 | -257 |
Balance at end of period | 24 | 24 | 80 |
Allowance for Customer Returns | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 967 | 614 | 532 |
Additions | 2,752 | 3,786 | 2,435 |
Deductions | -2,810 | -3,433 | -2,353 |
Balance at end of period | 909 | 967 | 614 |
Income Tax Valuation Allowance | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 59,736 | 13,513 | 11,833 |
Additions | 20,192 | 46,223 | 1,680 |
Deductions | ' | ' | ' |
Balance at end of period | $79,928 | $59,736 | $13,513 |