Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 29, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'CAVM | ' |
Entity Registrant Name | 'CAVIUM, INC. | ' |
Entity Central Index Key | '0001175609 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 52,837,888 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $124,106 | $127,763 |
Accounts receivable, net of allowances of $996 and $933, respectively | 56,819 | 43,636 |
Inventories | 49,048 | 45,768 |
Prepaid expenses and other current assets | 5,834 | 6,491 |
Total current assets | 235,807 | 223,658 |
Property and equipment, net | 28,562 | 28,494 |
Intangible assets, net | 41,453 | 43,240 |
Goodwill | 71,478 | 71,478 |
Deferred tax assets | 61 | 61 |
Other assets | 1,035 | 1,054 |
Total assets | 378,396 | 367,985 |
Current liabilities: | ' | ' |
Accounts payable | 24,060 | 23,467 |
Other accrued expenses and other current liabilities | 9,519 | 9,836 |
Deferred revenue | 8,475 | 8,669 |
Notes payable and other | 15,770 | 13,512 |
Capital lease and technology license obligations | 14,227 | 17,103 |
Total current liabilities | 72,051 | 72,587 |
Capital lease and technology license obligations, net of current portion | 15,297 | 16,292 |
Deferred tax liability | 2,365 | 1,931 |
Other non-current liabilities | 2,437 | 2,344 |
Total liabilities | 92,150 | 93,154 |
Commitments and contingencies (Note 11) | ' | ' |
Equity | ' | ' |
Common stock, par value $0.001: 200,000,000 shares authorized; 52,835,888 and 52,221,251 shares issued and outstanding, respectively | 53 | 53 |
Additional paid-in capital | 456,758 | 443,588 |
Accumulated deficit | -154,710 | -157,057 |
Total stockholders' equity attributable to the Company | 302,101 | 286,584 |
Non-controlling interest | -15,855 | -11,753 |
Total equity | 286,246 | 274,831 |
Total liabilities and equity | $378,396 | $367,985 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowances for accounts receivable | $996 | $933 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 52,835,888 | 52,835,888 |
Common stock, shares outstanding | 52,221,251 | 52,221,251 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net revenue | $83,241 | $69,530 |
Cost of revenue | 30,350 | 26,159 |
Gross profit | 52,891 | 43,371 |
Operating expenses: | ' | ' |
Research and development | 37,289 | 32,415 |
Sales, general and administrative | 15,932 | 15,240 |
Total operating expenses | 53,221 | 47,655 |
Loss from operations | -330 | -4,284 |
Other income (expense), net: | ' | ' |
Interest expense | -459 | -342 |
Change in estimated fair value of notes payable and other | -858 | ' |
Other, net | 135 | -261 |
Total other expense, net | -1,182 | -603 |
Loss before income taxes | -1,512 | -4,887 |
Provision for income taxes | 243 | 426 |
Net loss | -1,755 | -5,313 |
Net loss attributable to non-controlling interest | -4,102 | -2,129 |
Net income (loss) attributable to the Company | $2,347 | ($3,184) |
Earnings per share attributable to the Company: | ' | ' |
Net income (loss ) per common share, basic | $0.04 | ($0.06) |
Shares used in computing basic net income (loss) per common share | 52,550 | 51,001 |
Net income (loss) per common share, diluted | $0.04 | ($0.06) |
Shares used in computing diluted net income (loss) per common share | 54,221 | 51,001 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($1,755) | ($5,313) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Stock-based compensation expense | 9,587 | 8,274 |
Depreciation and amortization | 7,851 | 9,324 |
Deferred income taxes | 198 | 193 |
Gain on sale of held for sale assets | ' | -747 |
Gain on disposition of certain consumer product assets | -250 | -250 |
Change in estimated fair value of notes payable and other | 858 | ' |
Changes in assets and liabilities: | ' | ' |
Accounts receivable, net | -13,183 | -2,560 |
Inventories | -3,286 | 5,099 |
Prepaid expenses and other current assets | 659 | 1,698 |
Other assets | 18 | -338 |
Accounts payable | -1,127 | -4,307 |
Deferred revenue | -194 | -2,287 |
Accrued expenses and other current and non-current liabilities | -242 | -629 |
Net cash (used in) provided by operating activities | -866 | 8,157 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -2,145 | -670 |
Purchases of intangible assets | -1,231 | -2,343 |
Proceeds received from sale of held for sale assets | ' | 3,350 |
Proceeds received from disposition of certain consumer product assets | 250 | 250 |
Net cash (used in) provided by investing activities | -3,126 | 587 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock upon exercise of options | 3,589 | 6,845 |
Principal payment of capital lease and technology license obligations | -4,908 | -6,362 |
Proceeds from notes payable from non-controlling interest of the VIE | 1,400 | 500 |
Tax withholdings for stock option exercises on behalf of employees | 254 | ' |
Net cash provided by financing activities | 335 | 983 |
Net increase (decrease) in cash and cash equivalents | -3,657 | 9,727 |
Cash and cash equivalents, beginning of period | 127,763 | 76,784 |
Cash and cash equivalents, end of period | 124,106 | 86,511 |
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 | 1,984 | 1,198 |
Supplemental disclosure of cash flow from financing activities: | ' | ' |
Property and equipment and intangible assets acquired included in capital lease and technology license obligations | $984 | ' |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
Organization | |
Cavium, Inc., (the “Company”), was incorporated in the state of California on November 21, 2000 and was reincorporated in the state of Delaware effective February 6, 2007. The Company designs, develops and markets semiconductor processors for intelligent and secure networks. | |
Basis of Presentation | |
The condensed consolidated financial statements include the accounts of Cavium, Inc., its wholly owned subsidiaries, and a variable interest entity, or VIE, of which the Company is the primary beneficiary. Under the accounting principles generally accepted in the United States of America, or US GAAP, a VIE is required to be consolidated by its primary beneficiary. The primary beneficiary is the party that absorbs a majority of the VIE’s anticipated losses and/or a majority of the expected returns. See Note 5 of Notes to Condensed Consolidated Financial Statements for detailed discussions of the VIE. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The condensed consolidated financial statements have been prepared in accordance with US GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. For further information, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K (File No. 001-33435) on file with the SEC for the year ended December 31, 2013. | |
The condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s condensed consolidated financial position at March 31, 2014, and the condensed consolidated results of its operations for the three months ended March 31, 2014 and 2013, and condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year. | |
The condensed consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by US GAAP. Certain reclassifications have been made to prior period amounts in the condensed consolidated statements of cash flows to conform to current period presentation. | |
Significant Accounting Policies | |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. There had been no material changes to these accounting policies. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Net Income (Loss) Per Common Share | ' | |||||||
2. Net Income (Loss) Per Common Share | ||||||||
The following table sets forth the computation of net income (loss) per share: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share data) | ||||||||
Net income (loss) attributable to the Company | $ | 2,347 | $ | (3,184 | ) | |||
Weighted average common shares outstanding - basic | 52,550 | 51,001 | ||||||
Dilutive effect of employee stock plans | 1,671 | - | ||||||
Weighted average common shares outstanding - diluted | 54,221 | 51,001 | ||||||
Net income (loss ) per common share, basic | $ | 0.04 | $ | (0.06 | ) | |||
Net income (loss) per common share, diluted | $ | 0.04 | $ | (0.06 | ) | |||
The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Options to purchase common stock | 610 | 3,834 | ||||||
Restricted stock units | - | 2,230 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value Measurements | ' |
3. Fair Value Measurements | |
At March 31, 2014 and December 31, 2013, 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 $94.2 million as of March 31, 2014 and December 31, 2013, 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 other are carried at fair value and are a Level 3 measurement. See Note 5 of the Notes to Condensed Consolidated Financial Statements for further discussion of the fair value measurements. | |
Balance_Sheet_Components
Balance Sheet Components | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Balance Sheet Components | ' | |||||||
4. Balance Sheet Components | ||||||||
Inventories | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Work-in-process | $ | 36,334 | $ | 35,027 | ||||
Finished goods | 12,714 | 10,741 | ||||||
$ | 49,048 | $ | 45,768 | |||||
Property and equipment, net | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Test equipment and mask costs | $ | 37,021 | $ | 34,457 | ||||
Software, computer and other equipment | 36,428 | 34,945 | ||||||
Furniture, office equipment and leasehold improvements | 1,077 | 938 | ||||||
74,526 | 70,340 | |||||||
Less: accumulated depreciation and amortization | (45,964 | ) | (41,846 | ) | ||||
$ | 28,562 | $ | 28,494 | |||||
Depreciation and amortization expense was $4.2 million and $4.5 million for the three months ended March 31, 2014 and 2013, 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 $15.3 and $16.2 million at March 31, 2014 and December 31, 2013, respectively. Amortization expense related to assets recorded under capital lease and certain financing agreements was $2.0 million and $1.6 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Other accrued expenses and other current liabilities | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Accrued compensation and related benefits | $ | 4,912 | $ | 4,262 | ||||
Professional fees | 1,405 | 1,536 | ||||||
Customer deposits | 911 | 1,470 | ||||||
Income tax payable | 308 | 544 | ||||||
Deferred tax liability | 41 | 277 | ||||||
Other | 1,942 | 1,747 | ||||||
$ | 9,519 | $ | 9,836 | |||||
Warranty Accrual | ||||||||
The following table presents a reconciliation of the warranty liability, which is included within other accrued expenses and other current liabilities above: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 167 | $ | 440 | ||||
Accruals and adjustments | 97 | 85 | ||||||
Settlements | (92 | ) | (155 | ) | ||||
Ending balance | $ | 172 | $ | 370 | ||||
Deferred revenue | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Services/support and maintenance | $ | 4,755 | $ | 5,326 | ||||
Software license/subscription | 1,410 | 1,176 | ||||||
Distributor deferred margin | 2,310 | 2,167 | ||||||
$ | 8,475 | $ | 8,669 | |||||
Business_Combinations_and_Dive
Business Combinations and Divestitures | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Business Combinations and Divestitures | ' | ||||||||||||||||
5. Business Combinations and Divestitures | |||||||||||||||||
Variable Interest Entity | |||||||||||||||||
Between May 2012 and March 2014, 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 March 31, 2014, the Company had made cash advances of $10.0 million under seven convertible notes receivable which, as amended, mature on August 31, 2014. In addition, third party investors (“non-controlling interest”) had made cash advances of $13.0 million under fifteen 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. | |||||||||||||||||
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, interest and maturity. 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 the issuance date 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 condensed consolidated balance sheets. | |||||||||||||||||
All of the convertible notes and derivative feature of convertible security are classified as Level 3 liability due to the above mentioned features and therefore they are all measured and presented at fair value in the condensed consolidated financial statements. The convertible notes and the derivative feature of the convertible security are 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 and the convertible security. As of March 31, 2014, the Company estimated the fair value of the convertible notes and derivative feature of the convertible security included in the condensed consolidated financial statements using the same fair value measurement model. Based on the Company’s assessment, there have been no changes in the probability scenarios that could significantly change the fair value of the convertible notes and derivative features of convertible security from December 31, 2013 to March 31, 2014, with the exception of a change in fair value due to the time value of money, which was recorded as a change in estimated fair value of notes and other in the statements of operations in the three months ended March 31, 2014. The table below summarizes the change in the value of the convertible notes and derivative features of the convertible security for the three months ended March 31, 2014: | |||||||||||||||||
As of | Additions | Change in estimated fair value recognized in statements of operations | As of | ||||||||||||||
December 31, | March 31, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Convertible notes | $ | 10,612 | $ | 1,400 | $ | 670 | $ | 12,682 | |||||||||
Derivative feature of convertible security | 2,900 | - | 188 | 3,088 | |||||||||||||
Total notes payable and other | $ | 13,512 | $ | 1,400 | $ | 858 | $ | 15,770 | |||||||||
In April 2014, the Company made an additional cash advance of $3.0 million to the VIE under a promissory note that bears an annual interest rate of 6% and matures on the first anniversary date of the promissory note. | |||||||||||||||||
The Company has concluded that it is the primary beneficiary of the VIE due to the Company’s involvement with the VIE and the purchase option to acquire the assets of the VIE. As such, the Company has included the accounts of the VIE in the condensed consolidated financial statements. The significant components of the VIE’s financial statements included in the Company’s condensed consolidated financial statements as of March 31, 2014 include cash of $0.9 million; property and equipment and intangible assets of $7.2 million; accounts payable and accrued expenses of $2.5 million; notes payable and other of $15.8 million; capital lease and technology license obligations of $6.0 million and non-controlling interest of $15.9 million. As of December 31, 2013, the significant component of the VIE’s financial statements included in the Company’s condensed consolidated financial statements 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 other of $13.5 million; capital lease and technology license obligations of $6.3 million and non-controlling interest of $11.8 million. For the three months ended March 31, 2014 and 2013, the Company’s portion of the net loss of the VIE was $2.2 million and $1.6 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 three months ended March 31, 2014 and 2013, the Company received total installment cash consideration of $0.3 million and $0.3 million, respectively, which were recognized as credits within sales, general and administrative expenses. | |||||||||||||||||
Sale of Held for Sale Assets | |||||||||||||||||
In January 2013, the Company completed the sale of certain assets to a third-party company. The assets sold originated from the acquisition of MontaVista Software, Inc. in fiscal year 2009. Under the asset purchase agreement, the Company agreed to transfer certain assets for an aggregate cash consideration of $3.3 million and the carrying value of the assets held for sale was approximately $2.6 million. 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 three months ended March 31, 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 March 31, 2014 was $71.5 million, unchanged from the balance at December 31, 2013. | |||||||||||||||||
Intangible assets, net | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 70,120 | $ | (34,443 | ) | $ | 35,677 | 7.64 | |||||||||
Existing and core technology - product | 42,084 | (36,796 | ) | 5,288 | 1.49 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,862 | ) | 129 | 1.08 | ||||||||||||
Trade name | 2,296 | (1,937 | ) | 359 | 0.86 | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 124,131 | $ | (82,678 | ) | $ | 41,453 | 6.79 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 68,175 | $ | (32,015 | ) | $ | 36,160 | 7.88 | |||||||||
Existing and core technology - product | 42,086 | (35,637 | ) | 6,449 | 1.68 | ||||||||||||
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 | |||||||||
Amortization expense was $3.7 million and $4.8 million for the three months ended March 31, 2014 and 2013, respectively. The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | |||||||||||||||||
Remainder of 2014 | $ | 9,977 | |||||||||||||||
2015 | 7,124 | ||||||||||||||||
2016 | 5,016 | ||||||||||||||||
2017 | 3,216 | ||||||||||||||||
2018 | 3,057 | ||||||||||||||||
2019 and thereafter | 13,063 | ||||||||||||||||
$ | 41,453 | ||||||||||||||||
Restructuring_Accrual
Restructuring Accrual | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring Accrual | ' | ||||||||||||
7. Restructuring Accrual | |||||||||||||
The excess facility related restructuring accrual at the beginning of 2014 relates to the unused leased facility in Canada. The lease expired in March 2014. | |||||||||||||
In connection with a workforce reduction during the three months ended March 31, 2014, the Company incurred and paid $0.6 million related to severance and other related benefits. | |||||||||||||
A summary of the accrued restructuring liabilities including related activities during the three months ended March 31, 2014, is as follows: | |||||||||||||
Severance and other benefits | Excess Facility Related Cost | Total | |||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2013 | $ | - | $ | 57 | $ | 57 | |||||||
Additions | 570 | - | 570 | ||||||||||
Cash payments and other non-cash adjustments | (570 | ) | (57 | ) | (627 | ) | |||||||
Balance at March 31, 2014 | $ | - | $ | - | $ | - | |||||||
Equity
Equity | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Equity | ' | |||||||||||
8. Equity | ||||||||||||
Equity Incentive Plans | ||||||||||||
The following table summarizes the details related to stock options granted and outstanding under the 2007 Equity Incentive Plan and 2001 Stock Incentive Plan for the three months ended March 31, 2014: | ||||||||||||
Number of Shares Outstanding | Weighted Average Exercise Price | |||||||||||
Balance as of December 31, 2013 | 3,552,216 | 17.79 | ||||||||||
Options granted | 153,000 | 37.83 | ||||||||||
Options exercised | (310,488 | ) | 11.56 | |||||||||
Options cancelled and forfeited | (2,000 | ) | 0.3 | |||||||||
Balance as of March 31, 2014 | 3,392,728 | 19.28 | ||||||||||
The fair value of each option grants for the three months ended March 31, 2014 and 2013 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Risk-free interest rate | 1.47% | 0.32% | ||||||||||
Expected life | 4.53 years | 4.53 years | ||||||||||
Dividend yield | 0% | 0% | ||||||||||
Volatility | 43.80% | 49.60% | ||||||||||
The estimated weighted-average grant date fair value of options granted for the three months ended March 31, 2014 and 2013 were $14.37 per share and $15.30 per share, respectively. | ||||||||||||
As of March 31, 2014, there is $6.6 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 2.66 years. | ||||||||||||
The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the three months ended March 31, 2014: | ||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | |||||||||||
Balance as of December 31, 2013 | 1,776,170 | 35.64 | ||||||||||
Granted | 1,016,955 | 37.54 | ||||||||||
Issued and released | (304,148 | ) | 33.65 | |||||||||
Cancelled and forfeited | (16,331 | ) | 36.21 | |||||||||
Balance as of March 31, 2014 | 2,472,646 | 36.66 | ||||||||||
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. | ||||||||||||
In February 2014, the Company granted one-year performance-based RSU’s. During the three months ended March 31, 2014, the Company evaluated the probability of achieving the milestone and determined that the fair value of these performance RSU’s was $2.1 million. The Company recorded the related stock-based compensation expense for the three months ended March 31, 2014 and continues to evaluate the probability of achieving the milestone at each reporting period and adjust any RSU expense which is included in stock-based compensation expense. | ||||||||||||
As of March 31, 2014, there was $73.9 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 2.87 years. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Cost of revenue | $ | 247 | $ | 287 | ||||||||
Research and development | 5,404 | 3,906 | ||||||||||
Sales, general and administrative | 3,936 | 4,081 | ||||||||||
$ | 9,587 | $ | 8,274 | |||||||||
The total stock-based compensation cost capitalized as part of inventory as of March 31, 2014 and December 31, 2013 was not significant. | ||||||||||||
Changes in equity | ||||||||||||
A reconciliation of the changes in equity for the three months ended March 31, 2014 is presented below: | ||||||||||||
Attributable to the Company | Attributable to non-controlling interest | Total equity | ||||||||||
(in thousands) | ||||||||||||
Balance at December 31, 2013 | $ | 286,584 | $ | (11,753 | ) | $ | 274,831 | |||||
Common stock issued in connection with exercises of stock options | 3,589 | - | 3,589 | |||||||||
Stock-based compensation | 9,581 | - | 9,581 | |||||||||
Net income (loss) | 2,347 | (4,102 | ) | (1,755 | ) | |||||||
Balance at March 31, 2014 | $ | 302,101 | $ | (15,855 | ) | $ | 286,246 | |||||
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Taxes | ' | ||||||||
9. Income Taxes | |||||||||
The quarterly provision for income taxes is based on the estimated annual effective tax rate, plus any discrete items. The Company updates its estimate of its annual effective tax rate at the end of each quarterly period. The estimate takes into account estimations of annual pre-tax income, the geographic mix of pre-tax income and interpretations of tax laws and the possible outcomes of current and future audits. | |||||||||
The following table presents the provision for income taxes and the effective tax rates for the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Loss before income taxes | $ | (1,512 | ) | $ | (4,887 | ) | |||
Provision for income taxes | 243 | 426 | |||||||
Effective tax rate | -16.1 | % | -8.7 | % | |||||
The provision for income taxes for the three months ended March 31, 2014 was primarily related to earnings in foreign jurisdictions. The difference between the benefit from income taxes that would be derived by applying the statutory rate to the Company’s loss before income taxes and the provision for income taxes recorded for the three months ended March 31, 2014 was primarily attributable to the difference in foreign tax rates and an increase in indefinite lived intangible related deferred tax liability. The provision for income taxes for the three months ended March 31, 2013 was primarily related to earnings in foreign jurisdictions. The difference between the provision for or benefit from income taxes that would be derived by applying the statutory rate to the Company’s loss before income taxes and the provision for income taxes recorded for March 31, 2013 was primarily attributable to the impact of losses that are not benefited, the difference in foreign tax rates and an increase in indefinite lived intangible related deferred tax liability. | |||||||||
The Company’s net deferred tax assets relate predominantly to its United States tax jurisdiction. The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more-likely-than-not that deferred tax assets are recoverable; such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. After considering both negative and positive evidence to assess the recoverability of the Company’s net deferred tax assets during the fourth quarter of 2012, the Company determined that it was more-likely-than-not it would not realize the full value of its federal and state deferred tax assets. As such, the Company determined that as of December 31, 2012, a full valuation allowance was required on its net federal and state deferred tax assets. Adjustments could be required in the future if the Company concludes that it is more-likely-than-not that these net deferred tax assets are recoverable. A release of the valuation allowance could have the effect of decreasing the income tax provision in the period the valuation allowance is released. The Company continues to monitor the likelihood that it will be able to recover its deferred tax assets. As of March 31, 2014, the Company believes that it is not more likely than not that it will be able to fully realize its United States federal and state deferred tax assets and, as such, the Company continues to provide a full valuation allowance on those deferred tax assets. | |||||||||
As of March 31, 2014 and December 31, 2013, the Company had unrecognized tax benefits for income taxes associated with uncertain tax positions of $14.8 million and $14.6 million, respectively. If all of these unrecognized tax benefits were recognized, $0.7 million would reduce the Company’s effective tax rate. The Company is not anticipating any significant changes in unrecognized tax benefits in the next 12 months. | |||||||||
The Company’s major tax jurisdictions are the United States federal government, the states of California and Massachusetts, Japan, India, China and Singapore. The Company files income tax returns in the United States federal jurisdiction, the states of California and Massachusetts, various other states, and foreign jurisdictions in which it has a subsidiary or branch operations. The United States federal corporation income tax returns beginning with the 2000 tax year remain subject to examination by the Internal Revenue Service, 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 March 31, 2014, 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. | |||||||||
The federal research and development credits regulation, which was extended for two years under The American Taxpayer Relief Act of 2012, expired at the end of 2013. As a result, the quarterly provision and the annual effective tax rate did not consider the effects of the federal research and development credits. | |||||||||
Segment_and_Geographic_Informa
Segment and Geographic Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment and Geographic Information | ' | |||||||
10. Segment and Geographic Information | ||||||||
Operating segments are based on components of the Company that engage in business activity that earn revenue and incur expenses and (a) whose operating results are regularly reviewed by the Company’s chief operating decision maker, or CODM, to make decisions about resource allocation and performance and (b) for which discrete financial information is available. The Company manages and operates as one reporting segment. | ||||||||
The Company’s revenue consists primarily of sale of semiconductor products to network equipment providers and data centers 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 three months ended March 31, 2014 and 2013. 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: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
United States | $ | 30,077 | $ | 22,651 | ||||
China | 22,004 | 16,820 | ||||||
Korea | 3,664 | 7,035 | ||||||
Mexico | 4,650 | 4,150 | ||||||
Finland | 7,712 | 2,455 | ||||||
Taiwan | 6,198 | 5,891 | ||||||
Malaysia | 2,834 | 3,465 | ||||||
Other countries | 6,102 | 7,063 | ||||||
Total | $ | 83,241 | $ | 69,530 | ||||
The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
United States | $ | 24,164 | $ | 25,160 | ||||
All other countries | 4,398 | 3,334 | ||||||
Total | $ | 28,562 | $ | 28,494 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Commitments and Contingencies | ' | ||||||||||||
11. Commitments and Contingencies | |||||||||||||
The Company is not currently a party to any legal proceedings and outcome of which, if determined adversely to the Company, would have a material adverse effect on the condensed consolidated financial position, condensed results of operations or condensed 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. | |||||||||||||
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 as of March 31, 2014 are as follows: | |||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
Remainder of 2014 | $ | 13,716 | $ | 4,165 | $ | 17,881 | |||||||
2015 | 12,103 | 6,928 | 19,031 | ||||||||||
2016 | 5,150 | 8,680 | 13,830 | ||||||||||
2017 | - | 8,731 | 8,731 | ||||||||||
2018 | - | 8,929 | 8,929 | ||||||||||
2019 thereafter | - | 31,983 | 31,983 | ||||||||||
$ | 30,969 | $ | 69,416 | $ | 100,385 | ||||||||
Less: Interest component (3.75% annual rate) | 1,445 | ||||||||||||
Present value of minimum lease payment | 29,524 | ||||||||||||
Current portion of the obligations | $ | 14,227 | |||||||||||
Long-term portion of obligations | $ | 15,297 | |||||||||||
Rent expense incurred under operating leases was $1.4 million and $1.3 million for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||
In September 2013, the VIE entered into a purchase agreement with a third party vendor to purchase certain test equipment amounting to $6.1 million, payable in installments over two years. The equipment was received and recorded in the fourth quarter of 2013. In January 2014, the VIE purchased and recorded additional parts to the test equipment amounting to $1.0 million, payable in installment over two years. The Company has 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. | |||||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization | ' |
Organization | |
Cavium, Inc., (the “Company”), was incorporated in the state of California on November 21, 2000 and was reincorporated in the state of Delaware effective February 6, 2007. The Company designs, develops and markets semiconductor processors for intelligent and secure networks. | |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated financial statements include the accounts of Cavium, Inc., its wholly owned subsidiaries, and a variable interest entity, or VIE, of which the Company is the primary beneficiary. Under the accounting principles generally accepted in the United States of America, or US GAAP, a VIE is required to be consolidated by its primary beneficiary. The primary beneficiary is the party that absorbs a majority of the VIE’s anticipated losses and/or a majority of the expected returns. See Note 5 of Notes to Condensed Consolidated Financial Statements for detailed discussions of the VIE. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The condensed consolidated financial statements have been prepared in accordance with US GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. For further information, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K (File No. 001-33435) on file with the SEC for the year ended December 31, 2013. | |
The condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s condensed consolidated financial position at March 31, 2014, and the condensed consolidated results of its operations for the three months ended March 31, 2014 and 2013, and condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year. | |
The condensed consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by US GAAP. Certain reclassifications have been made to prior period amounts in the condensed consolidated statements of cash flows to conform to current period presentation. | |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. There had been no material changes to these accounting policies. |
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Basic and Diluted Net Income (Loss) Per Common Share | ' | |||||||
The following table sets forth the computation of net income (loss) per share: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share data) | ||||||||
Net income (loss) attributable to the Company | $ | 2,347 | $ | (3,184 | ) | |||
Weighted average common shares outstanding - basic | 52,550 | 51,001 | ||||||
Dilutive effect of employee stock plans | 1,671 | - | ||||||
Weighted average common shares outstanding - diluted | 54,221 | 51,001 | ||||||
Net income (loss ) per common share, basic | $ | 0.04 | $ | (0.06 | ) | |||
Net income (loss) per common share, diluted | $ | 0.04 | $ | (0.06 | ) | |||
Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Income (Loss) Per Common Share | ' | |||||||
The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Options to purchase common stock | 610 | 3,834 | ||||||
Restricted stock units | - | 2,230 | ||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Work-in-process | $ | 36,334 | $ | 35,027 | ||||
Finished goods | 12,714 | 10,741 | ||||||
$ | 49,048 | $ | 45,768 | |||||
Property and Equipment, Net | ' | |||||||
Property and equipment, net | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Test equipment and mask costs | $ | 37,021 | $ | 34,457 | ||||
Software, computer and other equipment | 36,428 | 34,945 | ||||||
Furniture, office equipment and leasehold improvements | 1,077 | 938 | ||||||
74,526 | 70,340 | |||||||
Less: accumulated depreciation and amortization | (45,964 | ) | (41,846 | ) | ||||
$ | 28,562 | $ | 28,494 | |||||
Other Accrued Expenses And Other Current Liabilities | ' | |||||||
Other accrued expenses and other current liabilities | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Accrued compensation and related benefits | $ | 4,912 | $ | 4,262 | ||||
Professional fees | 1,405 | 1,536 | ||||||
Customer deposits | 911 | 1,470 | ||||||
Income tax payable | 308 | 544 | ||||||
Deferred tax liability | 41 | 277 | ||||||
Other | 1,942 | 1,747 | ||||||
$ | 9,519 | $ | 9,836 | |||||
Warranty Accrual | ' | |||||||
The following table presents a reconciliation of the warranty liability, which is included within other accrued expenses and other current liabilities above: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 167 | $ | 440 | ||||
Accruals and adjustments | 97 | 85 | ||||||
Settlements | (92 | ) | (155 | ) | ||||
Ending balance | $ | 172 | $ | 370 | ||||
Deferred Revenue | ' | |||||||
Deferred revenue | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Services/support and maintenance | $ | 4,755 | $ | 5,326 | ||||
Software license/subscription | 1,410 | 1,176 | ||||||
Distributor deferred margin | 2,310 | 2,167 | ||||||
$ | 8,475 | $ | 8,669 | |||||
Business_Combinations_and_Dive1
Business Combinations and Divestitures (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Summary of Change in Value of Convertible Notes and Derivative Features of Convertible Security | ' | ||||||||||||||||
The table below summarizes the change in the value of the convertible notes and derivative features of the convertible security for the three months ended March 31, 2014: | |||||||||||||||||
As of | Additions | Change in estimated fair value recognized in statements of operations | As of | ||||||||||||||
December 31, | March 31, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Convertible notes | $ | 10,612 | $ | 1,400 | $ | 670 | $ | 12,682 | |||||||||
Derivative feature of convertible security | 2,900 | - | 188 | 3,088 | |||||||||||||
Total notes payable and other | $ | 13,512 | $ | 1,400 | $ | 858 | $ | 15,770 | |||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Intangible Assets, Net | ' | ||||||||||||||||
Intangible assets, net | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 70,120 | $ | (34,443 | ) | $ | 35,677 | 7.64 | |||||||||
Existing and core technology - product | 42,084 | (36,796 | ) | 5,288 | 1.49 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,862 | ) | 129 | 1.08 | ||||||||||||
Trade name | 2,296 | (1,937 | ) | 359 | 0.86 | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 124,131 | $ | (82,678 | ) | $ | 41,453 | 6.79 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 68,175 | $ | (32,015 | ) | $ | 36,160 | 7.88 | |||||||||
Existing and core technology - product | 42,086 | (35,637 | ) | 6,449 | 1.68 | ||||||||||||
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 | |||||||||
Estimated Future Amortization Expense From Amortizable Intangible Assets | ' | ||||||||||||||||
Amortization expense was $3.7 million and $4.8 million for the three months ended March 31, 2014 and 2013, respectively. The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | |||||||||||||||||
Remainder of 2014 | $ | 9,977 | |||||||||||||||
2015 | 7,124 | ||||||||||||||||
2016 | 5,016 | ||||||||||||||||
2017 | 3,216 | ||||||||||||||||
2018 | 3,057 | ||||||||||||||||
2019 and thereafter | 13,063 | ||||||||||||||||
$ | 41,453 | ||||||||||||||||
Restructuring_Accrual_Tables
Restructuring Accrual (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accrued Restructuring Liabilities Including Related Activities | ' | ||||||||||||
A summary of the accrued restructuring liabilities including related activities during the three months ended March 31, 2014, is as follows: | |||||||||||||
Severance and other benefits | Excess Facility Related Cost | Total | |||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2013 | $ | - | $ | 57 | $ | 57 | |||||||
Additions | 570 | - | 570 | ||||||||||
Cash payments and other non-cash adjustments | (570 | ) | (57 | ) | (627 | ) | |||||||
Balance at March 31, 2014 | $ | - | $ | - | $ | - | |||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Summary of Stock Options Granted and Outstanding | ' | |||||||||||
The following table summarizes the details related to stock options granted and outstanding under the 2007 Equity Incentive Plan and 2001 Stock Incentive Plan for the three months ended March 31, 2014: | ||||||||||||
Number of Shares Outstanding | Weighted Average Exercise Price | |||||||||||
Balance as of December 31, 2013 | 3,552,216 | 17.79 | ||||||||||
Options granted | 153,000 | 37.83 | ||||||||||
Options exercised | (310,488 | ) | 11.56 | |||||||||
Options cancelled and forfeited | (2,000 | ) | 0.3 | |||||||||
Balance as of March 31, 2014 | 3,392,728 | 19.28 | ||||||||||
Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option - Pricing Model | ' | |||||||||||
The fair value of each option grants for the three months ended March 31, 2014 and 2013 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Risk-free interest rate | 1.47% | 0.32% | ||||||||||
Expected life | 4.53 years | 4.53 years | ||||||||||
Dividend yield | 0% | 0% | ||||||||||
Volatility | 43.80% | 49.60% | ||||||||||
Summary of Activity of Restricted Stock | ' | |||||||||||
The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the three months ended March 31, 2014: | ||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | |||||||||||
Balance as of December 31, 2013 | 1,776,170 | 35.64 | ||||||||||
Granted | 1,016,955 | 37.54 | ||||||||||
Issued and released | (304,148 | ) | 33.65 | |||||||||
Cancelled and forfeited | (16,331 | ) | 36.21 | |||||||||
Balance as of March 31, 2014 | 2,472,646 | 36.66 | ||||||||||
Detail of Stock-Based Compensation Expense | ' | |||||||||||
The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Cost of revenue | $ | 247 | $ | 287 | ||||||||
Research and development | 5,404 | 3,906 | ||||||||||
Sales, general and administrative | 3,936 | 4,081 | ||||||||||
$ | 9,587 | $ | 8,274 | |||||||||
Reconciliation of Changes in Equity | ' | |||||||||||
A reconciliation of the changes in equity for the three months ended March 31, 2014 is presented below: | ||||||||||||
Attributable to the Company | Attributable to non-controlling interest | Total equity | ||||||||||
(in thousands) | ||||||||||||
Balance at December 31, 2013 | $ | 286,584 | $ | (11,753 | ) | $ | 274,831 | |||||
Common stock issued in connection with exercises of stock options | 3,589 | - | 3,589 | |||||||||
Stock-based compensation | 9,581 | - | 9,581 | |||||||||
Net income (loss) | 2,347 | (4,102 | ) | (1,755 | ) | |||||||
Balance at March 31, 2014 | $ | 302,101 | $ | (15,855 | ) | $ | 286,246 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Provision for Income Taxes and Effective Tax Rates | ' | ||||||||
The following table presents the provision for income taxes and the effective tax rates for the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Loss before income taxes | $ | (1,512 | ) | $ | (4,887 | ) | |||
Provision for income taxes | 243 | 426 | |||||||
Effective tax rate | -16.1 | % | -8.7 | % | |||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Sales by Geography | ' | |||||||
Sales by geography for the periods indicated were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
United States | $ | 30,077 | $ | 22,651 | ||||
China | 22,004 | 16,820 | ||||||
Korea | 3,664 | 7,035 | ||||||
Mexico | 4,650 | 4,150 | ||||||
Finland | 7,712 | 2,455 | ||||||
Taiwan | 6,198 | 5,891 | ||||||
Malaysia | 2,834 | 3,465 | ||||||
Other countries | 6,102 | 7,063 | ||||||
Total | $ | 83,241 | $ | 69,530 | ||||
Long Lived Assets | ' | |||||||
The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
United States | $ | 24,164 | $ | 25,160 | ||||
All other countries | 4,398 | 3,334 | ||||||
Total | $ | 28,562 | $ | 28,494 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Minimum Commitments Under Non-Cancelable Capital and Operating Lease Agreements | ' | ||||||||||||
Minimum commitments under non-cancelable operating and capital lease agreements as of March 31, 2014 are as follows: | |||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
Remainder of 2014 | $ | 13,716 | $ | 4,165 | $ | 17,881 | |||||||
2015 | 12,103 | 6,928 | 19,031 | ||||||||||
2016 | 5,150 | 8,680 | 13,830 | ||||||||||
2017 | - | 8,731 | 8,731 | ||||||||||
2018 | - | 8,929 | 8,929 | ||||||||||
2019 thereafter | - | 31,983 | 31,983 | ||||||||||
$ | 30,969 | $ | 69,416 | $ | 100,385 | ||||||||
Less: Interest component (3.75% annual rate) | 1,445 | ||||||||||||
Present value of minimum lease payment | 29,524 | ||||||||||||
Current portion of the obligations | $ | 14,227 | |||||||||||
Long-term portion of obligations | $ | 15,297 | |||||||||||
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 | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure Net Loss Per Common Share Basic And Diluted Net Loss Per Common Share Detail [Line Items] | ' | ' |
Net income (loss) attributable to the Company | $2,347 | ($3,184) |
Weighted average common shares outstanding - basic | 52,550 | 51,001 |
Dilutive effect of employee stock plans | 1,671 | ' |
Weighted average common shares outstanding - diluted | 54,221 | 51,001 |
Net income (loss ) per common share, basic | $0.04 | ($0.06) |
Net income (loss) per common share, diluted | $0.04 | ($0.06) |
Net_Income_Loss_Per_Common_Sha3
Net Income (Loss) Per Common Share (Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Income (Loss) Per Common Share) (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Options To Purchase Common Stock | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from the computation of diluted net income (loss) per common share | 610 | 3,834 |
Restricted Stock Units | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from the computation of diluted net income (loss) per common share | ' | 2,230 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (Fair Value, Inputs, Level 1, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | $94.20 |
Balance_Sheet_Components_Inven
Balance Sheet Components (Inventories) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work-in-process | $36,334 | $35,027 |
Finished goods | 12,714 | 10,741 |
Inventories | $49,048 | $45,768 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment, Net) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $74,526 | $70,340 |
Less: accumulated depreciation and amortization | -45,964 | -41,846 |
Property and equipment, net | 28,562 | 28,494 |
Test Equipment and Mask Costs | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 37,021 | 34,457 |
Software, Computer and Other Equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 36,428 | 34,945 |
Furniture, Office Equipment and Leasehold Improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,077 | $938 |
Balance_Sheet_Components_Narra
Balance Sheet Components (Narrative) (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Disclosure Balance Sheet Components Narrative Detail [Line Items] | ' | ' | ' |
Depreciation and amortization expense | $4.20 | $4.50 | ' |
Capital lease and certain financing arrangements | 15.3 | ' | 16.2 |
Amortization expense related to assets under capital lease and certain financing arrangements | $2 | $1.60 | ' |
Balance_Sheet_Components_Other
Balance Sheet Components (Other Accrued Expenses and Other Current Liabilities) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued compensation and related benefits | $4,912 | $4,262 |
Professional fees | 1,405 | 1,536 |
Customer deposits | 911 | 1,470 |
Income tax payable | 308 | 544 |
Deferred tax liability | 41 | 277 |
Other | 1,942 | 1,747 |
Accrued expenses and other current liabilities | $9,519 | $9,836 |
Balance_Sheet_Components_Produ
Balance Sheet Components (Product Warranty Liability) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Beginning balance | $167 | $440 |
Accruals and adjustments | 97 | 85 |
Settlements | -92 | -155 |
Ending balance | $172 | $370 |
Balance_Sheet_Components_Defer
Balance Sheet Components (Deferred Revenue) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $8,475 | $8,669 |
Service / Support and Maintenance | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 4,755 | 5,326 |
Software License / Subscription | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | 1,410 | 1,176 |
Distributor Deferred Margin | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue | $2,310 | $2,167 |
Business_Combinations_and_Dive2
Business Combinations and Divestitures (Narrative) (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Convertible notes receivable | ' | $10,000,000 | ' | ' | ' |
Interest rate on notes receivable | ' | 6.00% | ' | ' | ' |
Convertible notes exchanged | ' | ' | ' | ' | 1,400,000 |
Cash proceeds from convertible debt | ' | ' | ' | ' | 1,500,000 |
Notes payable and other | ' | 15,770,000 | ' | ' | 13,512,000 |
Non-controlling interest | ' | -15,855,000 | ' | ' | -11,753,000 |
Net income (loss) attributable to the Company | ' | 2,347,000 | -3,184,000 | ' | ' |
Aggregate cash consideration on sale | 3,300,000 | 300,000 | 300,000 | 2,400,000 | ' |
Gain (loss) on disposition of certain consumer product assets | ' | 250,000 | 250,000 | -2,700,000 | ' |
Net book value of assets held for sale | 2,600,000 | ' | ' | ' | ' |
Gain on sale of held for sale assets | ' | ' | 747,000 | ' | ' |
Convertible Debt Securities | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Convertible security | ' | ' | ' | ' | 2,900,000 |
Variable Interest Entity | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Interest rate on notes receivable | ' | 6.00% | ' | ' | ' |
Convertible note to third party investor paid by Variable Interest Entity | ' | ' | ' | ' | 1,000,000 |
Variable Interest Entity, cash | ' | 900,000 | ' | ' | 1,900,000 |
Variable Interest Entity, property and equipment and intangible assets | ' | 7,200,000 | ' | ' | 6,700,000 |
Variable Interest Entity, accounts payable and accrued expenses | ' | 2,500,000 | ' | ' | 3,400,000 |
Notes payable and other | ' | 15,770,000 | ' | ' | 13,512,000 |
Non-controlling interest | ' | 15,900,000 | ' | ' | 11,800,000 |
Net income (loss) attributable to the Company | ' | 2,200,000 | 1,600,000 | ' | ' |
Capital lease and technology license obligations | ' | 6,000,000 | ' | ' | 6,300,000 |
Payment for Purchase of Promissory Notes Receivable | ' | 3,000,000 | ' | ' | ' |
Variable Interest Entity | Convertible Debt Securities | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Convertible security | ' | ' | ' | ' | 2,900,000 |
Four Convertible Notes Receivable | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Convertible notes receivable maturity date | ' | 31-Aug-14 | ' | ' | ' |
Thirteen Convertible Notes Receivable | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Convertible notes receivable maturity date | ' | 31-Aug-14 | ' | ' | ' |
Noncontrolling Interest | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Convertible notes receivable | ' | $13,000,000 | ' | ' | ' |
Business_Combinations_and_Dive3
Business Combinations and Divestitures (Summary of Change in Value of Convertible Notes and Derivative Features of Convertible Security) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Variable Interest Entity [Line Items] | ' |
Beginning balance | $13,512 |
Additions | 1,400 |
Change in estimated fair value of notes payable and other | 858 |
Ending balance | 15,770 |
Convertible Notes | ' |
Variable Interest Entity [Line Items] | ' |
Beginning balance | 10,612 |
Additions | 1,400 |
Change in estimated fair value of notes payable and other | 670 |
Ending balance | 12,682 |
Derivative Feature of Convertible Security | ' |
Variable Interest Entity [Line Items] | ' |
Beginning balance | 2,900 |
Additions | ' |
Change in estimated fair value of notes payable and other | 188 |
Ending balance | $3,088 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $71,478,000 | ' | $71,478,000 |
Amortization expense | $3,700,000 | $4,800,000 | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net (Intangible Assets, Net) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | $124,131 | $122,188 |
Finite-lived intangible assets, Accumulated Amortization | -82,678 | -78,948 |
Finite-lived intangible assets, Net | 41,453 | 43,240 |
Weighted average remaining amortization period (years) | '6 years 9 months 15 days | '6 years 10 months 13 days |
Technology licenses | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 70,120 | 68,175 |
Finite-lived intangible assets, Accumulated Amortization | -34,443 | -32,015 |
Finite-lived intangible assets, Net | 35,677 | 36,160 |
Weighted average remaining amortization period (years) | '7 years 7 months 21 days | '7 years 10 months 17 days |
Existing and core technology - product | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 42,084 | 42,086 |
Finite-lived intangible assets, Accumulated Amortization | -36,796 | -35,637 |
Finite-lived intangible assets, Net | 5,288 | 6,449 |
Weighted average remaining amortization period (years) | '1 year 5 months 27 days | '1 year 8 months 5 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 | -8,862 | -8,827 |
Finite-lived intangible assets, Net | 129 | 164 |
Weighted average remaining amortization period (years) | '1 year 29 days | '1 year 3 months 18 days |
Trade name | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 2,296 | 2,296 |
Finite-lived intangible assets, Accumulated Amortization | -1,937 | -1,829 |
Finite-lived intangible assets, Net | 359 | 467 |
Weighted average remaining amortization period (years) | '10 months 10 days | '1 year 1 month 6 days |
Order backlog | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, Gross | 640 | 640 |
Finite-lived intangible assets, Accumulated Amortization | -640 | -640 |
Finite-lived intangible assets, Net | ' | ' |
Weighted average remaining amortization period (years) | ' | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net (Estimated Future Amortization Expense from Amortizable Intangible Assets) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disclosure Goodwill And Intangible Assets Net Estimated Future Amortization Expense From Amortizable Intangible Assets Detail [Line Items] | ' | ' |
Remainder of 2014 | $9,977 | ' |
2015 | 7,124 | ' |
2016 | 5,016 | ' |
2017 | 3,216 | ' |
2018 | 3,057 | ' |
2019 and thereafter | 13,063 | ' |
Finite-lived intangible assets, Net | $41,453 | $43,240 |
Restructuring_Accrual_Narrativ
Restructuring Accrual (Narrative) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Restructuring Cost And Reserve [Line Items] | ' |
Lease expiration period | 31-Mar-14 |
Additional restructuring accrual | $0.60 |
Restructuring_Accrual_Accrued_
Restructuring Accrual (Accrued Restructuring Liabilities Including Related Activities) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued restructuring at beginning of the year | $57 |
Additions | 570 |
Cash payments and other non-cash adjustments | -627 |
Accrued restructuring at end of the year | 0 |
Severance and other benefits | ' |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued restructuring at beginning of the year | ' |
Additions | 570 |
Cash payments and other non-cash adjustments | -570 |
Accrued restructuring at end of the year | ' |
Excess Facility Related Costs | ' |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued restructuring at beginning of the year | 57 |
Additions | ' |
Cash payments and other non-cash adjustments | -57 |
Accrued restructuring at end of the year | $0 |
Equity_Summary_of_Stock_Option
Equity (Summary of Stock Options Granted and Outstanding) (Detail) (2007 Equity Incentive Plan and 2001 Stock Incentive Plan, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
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 | 3,552,216 |
Number of Shares Outstanding, Options granted | 153,000 |
Number of Shares Outstanding, Options exercised | -310,488 |
Number of Shares Outstanding, Options cancelled and forfeited | -2,000 |
Number of Shares Outstanding, Ending balance | 3,392,728 |
Weighted Average Exercise Price, Beginning balance | $17.79 |
Weighted Average Exercise Price, Options granted | $37.83 |
Weighted Average Exercise Price, Options exercised | $11.56 |
Weighted Average Exercise Price, Options cancelled and forfeited | $0.30 |
Weighted Average Exercise Price, Ending balance | $19.28 |
Equity_Assumptions_of_Fair_Val
Equity (Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option Pricing Model) (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | 1.47% | 0.32% |
Expected life, years | '4 years 6 months 11 days | '4 years 6 months 11 days |
Dividend yield | 0.00% | 0.00% |
Volatility | 43.80% | 49.60% |
Equity_Narrative_Detail
Equity (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Estimated weighted-average grant date fair value of options granted | $14.37 | $15.30 |
RSU's granted | $2.10 | ' |
RSU's performance period | '1 year | ' |
Stock Options | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Unrecognized compensation cost, net of estimated forfeitures | 6.6 | ' |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | '2 years 7 months 28 days | ' |
Restricted Stock Units | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Unrecognized compensation cost, net of estimated forfeitures | $73.90 | ' |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | '2 years 10 months 13 days | ' |
Equity_Summary_of_Activity_of_
Equity (Summary of Activity of Restricted Stock) (Detail) (2007 Stock Incentive Plan, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
2007 Stock Incentive Plan | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Number of Shares, Beginning balance | 1,776,170 |
Number of Shares, Granted | 1,016,955 |
Number of Shares, Issued and released | -304,148 |
Number of Shares, Cancelled and forfeited | -16,331 |
Number of Shares, Ending balance | 2,472,646 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $35.64 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $37.54 |
Weighted-Average Grant Date Fair Value Per Share, Issued and released | $33.65 |
Weighted-Average Grant Date Fair Value Per Share, Cancelled and forfeited | $36.21 |
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $36.66 |
Equity_Detail_of_StockBased_Co
Equity (Detail of Stock-Based Compensation Expense) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | $9,587 | $8,274 |
Cost of revenue | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | 247 | 287 |
Research and development | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | 5,404 | 3,906 |
Sales, general and administrative | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | $3,936 | $4,081 |
Equity_Reconciliation_of_Chang
Equity (Reconciliation of Changes in Equity) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Changes In Stockholders Equity [Line Items] | ' | ' |
Equity Attributable to the Company, Balance beginning | $286,584 | ' |
Attributable to non-controlling interest, Balance beginning | -11,753 | ' |
Total Equity, Balance beginning | 274,831 | ' |
Common stock issued in connection with exercises of stock options | 3,589 | ' |
Stock-based compensation | 9,581 | ' |
Net income (loss) attributable to the Company | 2,347 | -3,184 |
Net income (loss) Attributable to non-controlling interest | -4,102 | -2,129 |
Net income (loss) | -1,755 | -5,313 |
Equity Attributable to the Company, Balance Ending | 302,101 | ' |
Attributable to non-controlling interest, Balance Ending | -15,855 | ' |
Total Equity Balance, Ending | 286,246 | ' |
Equity Attributable To Parent | ' | ' |
Changes In Stockholders Equity [Line Items] | ' | ' |
Common stock issued in connection with exercises of stock options | 3,589 | ' |
Stock-based compensation | $9,581 | ' |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes and Effective Tax Rates) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Line Items] | ' | ' |
Loss before income taxes | ($1,512) | ($4,887) |
Provision for income taxes | $243 | $426 |
Effective tax rate | -16.10% | -8.70% |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Line Items] | ' | ' |
Unrecognized tax benefits for income taxes | $14.80 | $14.60 |
Unrecognized tax benefit that would impact effective tax rate | $0.70 | ' |
Segment_and_Geographic_Informa2
Segment and Geographic Information - (Narrative) (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Service revenue minimum percentage | 10.00% | 10.00% |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Sales by Geography) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | $83,241 | $69,530 |
United States | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 30,077 | 22,651 |
China | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 22,004 | 16,820 |
Korea | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 3,664 | 7,035 |
Mexico | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 4,650 | 4,150 |
Finland | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 7,712 | 2,455 |
Taiwan | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 6,198 | 5,891 |
Malaysia | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | 2,834 | 3,465 |
Other Countries | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total sales | $6,102 | $7,063 |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Long Lived Assets) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $28,562 | $28,494 |
United States | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 24,164 | 25,160 |
All Other Countries | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $4,398 | $3,334 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 31, 2014 | Sep. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 |
VIE | VIE | New San Jose California Lease | San Jose California | |||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ' | ' | ' | ' | ' | ' |
Lease expiration period | 31-Mar-14 | ' | ' | ' | 1-Oct-22 | 1-Oct-22 |
Operating leases, rent expense | $1.40 | $1.30 | ' | ' | ' | ' |
Long-term purchase commitment, amount | ' | ' | $1 | $6.10 | ' | ' |
Settlement agreement payment frequency installment period | ' | ' | '2 years | '2 years | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Lease Agreements) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital Leased Assets [Line Items] | ' | ' |
Capital lease and technology license obligations | $14,227 | $17,103 |
Long-term portion of obligations | 15,297 | 16,292 |
Remainder of 2014 | 17,881 | ' |
2015 | 19,031 | ' |
2016 | 13,830 | ' |
2017 | 8,731 | ' |
2018 | 8,929 | ' |
2019 thereafter | 31,983 | ' |
Total | 100,385 | ' |
Capital Lease and Technology License Obligations | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Remainder of 2014 | 13,716 | ' |
2015 | 12,103 | ' |
2016 | 5,150 | ' |
2017 | ' | ' |
2018 | ' | ' |
2019 thereafter | ' | ' |
Total | 30,969 | ' |
Less: Interest component (3.75% annual rate) | 1,445 | ' |
Present value of minimum lease payment | 29,524 | ' |
Capital lease and technology license obligations | 14,227 | ' |
Long-term portion of obligations | 15,297 | ' |
Operating Leases | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Remainder of 2014 | 4,165 | ' |
2015 | 6,928 | ' |
2016 | 8,680 | ' |
2017 | 8,731 | ' |
2018 | 8,929 | ' |
2019 thereafter | 31,983 | ' |
Total | $69,416 | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Lease Agreements) (Parenthetical) (Detail) | Mar. 31, 2014 |
Capital Leased Assets [Line Items] | ' |
Interest component | 3.75% |