Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 26, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CAVM | ||
Entity Registrant Name | CAVIUM, INC. | ||
Entity Central Index Key | 1175609 | ||
Current Fiscal Year End Date | -19 | ||
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 | 55,011,042 | ||
Entity Public Float | $2.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $131,718 | $127,763 |
Accounts receivable, net of allowances of $1,142 and $933, respectively | 48,199 | 43,636 |
Inventories | 51,922 | 45,768 |
Prepaid expenses and other current assets | 9,130 | 6,491 |
Total current assets | 240,969 | 223,658 |
Property and equipment, net | 56,963 | 28,494 |
Intangible assets, net | 37,644 | 43,240 |
Goodwill | 71,478 | 71,478 |
Other assets | 1,806 | 1,115 |
Total assets | 408,860 | 367,985 |
Current liabilities: | ||
Accounts payable | 26,447 | 23,467 |
Other accrued expenses and other current liabilities | 7,782 | 9,836 |
Deferred revenue | 6,285 | 8,669 |
Notes payable and other | 13,512 | |
Capital lease and technology license obligations | 23,002 | 17,103 |
Total current liabilities | 63,516 | 72,587 |
Capital lease and technology license obligations, net of current portion | 22,894 | 16,292 |
Deferred tax liability | 2,836 | 1,931 |
Other non-current liabilities | 2,931 | 2,344 |
Total liabilities | 92,177 | 93,154 |
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; 54,458,288 and 52,221,251 shares issued and outstanding, respectively | 54 | 53 |
Additional paid-in capital | 488,981 | 443,588 |
Accumulated deficit | -172,352 | -157,057 |
Total stockholders' equity attributable to the Company | 316,683 | 286,584 |
Non-controlling interest | -11,753 | |
Total equity | 316,683 | 274,831 |
Total liabilities and equity | $408,860 | $367,985 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Allowances for accounts receivable | $1,142 | $933 |
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 | 54,458,288 | 52,221,251 |
Common stock, shares outstanding | 54,458,288 | 52,221,251 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||||||||||
Net revenue | $101,223 | $97,833 | $90,681 | $83,241 | $81,135 | $79,124 | $74,204 | $69,530 | $372,978 | $303,993 | $235,480 |
Cost of revenue | 38,402 | 35,710 | 33,897 | 30,350 | 29,059 | 28,516 | 30,945 | 26,159 | 138,359 | 114,679 | 102,602 |
Gross profit | 62,821 | 62,123 | 56,784 | 52,891 | 52,076 | 50,608 | 43,259 | 43,371 | 234,619 | 189,314 | 132,878 |
Operating expenses: | |||||||||||
Research and development | 55,108 | 40,459 | 38,834 | 37,289 | 36,127 | 33,630 | 32,424 | 32,415 | 171,690 | 134,596 | 109,943 |
Sales, general and administrative | 19,314 | 18,141 | 17,017 | 15,932 | 17,871 | 14,833 | 16,144 | 15,240 | 70,404 | 64,088 | 71,794 |
Goodwill impairment | 27,680 | ||||||||||
Total operating expenses | 74,422 | 58,600 | 55,851 | 53,221 | 53,998 | 48,463 | 48,568 | 47,655 | 242,094 | 198,684 | 209,417 |
Income (loss) from operations | -11,601 | 3,523 | 933 | -330 | -1,922 | 2,145 | -5,309 | -4,284 | -7,475 | -9,370 | -76,539 |
Other expense, net: | |||||||||||
Interest expense | -293 | -387 | -333 | -459 | -395 | -390 | -375 | -342 | -1,472 | -1,502 | -646 |
Change in estimated fair value of notes payable and other | -103 | -13,927 | -858 | -14,888 | |||||||
Other, net | -313 | -116 | -53 | 135 | -74 | -126 | -418 | -261 | -347 | -879 | -157 |
Total other expense, net | -606 | -606 | -14,313 | -1,182 | -469 | -516 | -793 | -603 | -16,707 | -2,381 | -803 |
Loss before income taxes | -12,207 | 2,917 | -13,380 | -1,512 | -2,391 | 1,629 | -6,102 | -4,887 | -24,182 | -11,751 | -77,342 |
Provision for income taxes | 268 | 811 | 311 | 243 | 120 | 714 | 677 | 426 | 1,633 | 1,937 | 36,321 |
Net loss | -12,475 | 2,106 | -13,691 | -1,755 | -2,511 | 915 | -6,779 | -5,313 | -25,815 | -13,688 | -113,663 |
Net loss attributable to non-controlling interest | -444 | -3,327 | -2,647 | -4,102 | -2,698 | -3,421 | -2,475 | -2,129 | -10,520 | -10,723 | -1,031 |
Net loss attributable to the Company | ($12,031) | $5,433 | ($11,044) | $2,347 | $187 | $4,336 | ($4,304) | ($3,184) | ($15,295) | ($2,965) | ($112,632) |
Earnings per share attributable to the Company: | |||||||||||
Net loss per common share, basic | ($0.22) | $0.10 | ($0.21) | $0.04 | $0 | $0.08 | ($0.08) | ($0.06) | ($0.29) | ($0.06) | ($2.26) |
Shares used in computing basic net loss per common share | 53,451 | 51,596 | 49,886 | ||||||||
Net loss per common share, diluted | ($0.22) | $0.10 | ($0.21) | $0.04 | $0 | $0.08 | ($0.08) | ($0.06) | ($0.29) | ($0.06) | ($2.26) |
Shares used in computing diluted net loss per common share | 53,451 | 51,596 | 49,886 |
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, 2011 | $310,693 | $49 | $352,104 | ($41,460) | |
Beginning 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 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 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 | ||||
Common stock issued in connection with exercises of stock options | 15,211 | 1 | 15,210 | ||
Common stock issued in connection with exercises of stock options, Shares | 1,082,914 | ||||
Common stock issued in connection with vesting of restricted stock units, Shares | 1,154,123 | ||||
Stock-based compensation | 52,456 | 52,456 | |||
Settlement of non-controlling interest | -22,273 | 22,273 | |||
Net loss | -25,815 | -15,295 | -10,520 | ||
Ending Balance at Dec. 31, 2014 | $316,683 | $54 | $488,981 | ($172,352) | |
Ending Balance, Shares at Dec. 31, 2014 | 54,458,288 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($25,815) | ($13,688) | ($113,663) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Stock-based compensation expense | 52,459 | 34,598 | 37,196 |
Depreciation and amortization | 34,087 | 40,993 | 31,972 |
Goodwill impairment | 27,680 | ||
Write-down of intangible assets | 0 | 0 | 5,570 |
Deferred income taxes | 385 | 743 | 35,553 |
Change in estimated fair value of notes payable and other | 14,888 | ||
Gain on sale of held for sale assets | -747 | ||
(Gain) loss on disposal of property and equipment | -115 | 71 | 265 |
(Gain) loss on disposition of certain consumer product assets | -1,000 | -1,000 | 2,728 |
Changes in assets and liabilities: | |||
Accounts receivable, net | -4,563 | -10,069 | 4,272 |
Inventories | -6,157 | 788 | -4,823 |
Prepaid expenses and other current assets | -1,589 | -1,321 | -1,688 |
Other assets | -433 | 42 | 463 |
Accounts payable | 2,056 | 7,685 | 3,312 |
Deferred revenue | -2,384 | -4,275 | 1,742 |
Accrued expenses and other current and non-current liabilities | -1,205 | 2,014 | -2,286 |
Net cash provided by operating activities | 60,614 | 55,834 | 28,293 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -17,994 | -8,806 | -13,180 |
Purchases of intangible assets | -6,919 | -3,833 | -4,901 |
Proceeds received from sale of held for sale assets | 3,350 | ||
Proceeds received from disposition of certain consumer product assets | 1,000 | 1,000 | |
Purchase of short-term investment | -1,000 | ||
Net cash used in investing activities | -24,913 | -8,289 | -18,081 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock upon exercise of options | 15,211 | 10,827 | 8,301 |
Principal payment of capital lease and technology license obligations | -18,557 | -15,893 | -9,966 |
Proceeds from notes payable and other from non-controlling interest of the VIE | 1,400 | 9,500 | 5,012 |
Payment of notes payable and other to non-controlling interest of the VIE | -29,800 | -1,000 | |
Net cash provided by (used in) financing activities | -31,746 | 3,434 | 3,347 |
Net increase in cash and cash equivalents | 3,955 | 50,979 | 13,559 |
Cash and cash equivalents, beginning of period | 127,763 | 76,784 | 63,225 |
Cash and cash equivalents, end of period | 131,718 | 127,763 | 76,784 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 1,812 | 1,242 | 67 |
Cash paid for taxes | 1,133 | 1,335 | 1,048 |
Supplemental disclosures of cash flows from investing and financing activities: | |||
Property and equipment and intangible assets acquired included in accounts payable, other accrued expense and other current liabilities | 1,188 | 264 | 1,341 |
Property and equipment and intangible assets acquired included in capital lease and technology license obligations | $30,443 | $5,860 | $34,227 |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||
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 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, 2014 and 2013. | |||||||||
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, design tools, 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, | |||||||||
2014 | 2013 | ||||||||
Percentage of gross accounts receivable | |||||||||
Customer A | 12% | 13% | |||||||
Customer B | * | 13% | |||||||
Customer C | 21% | * | |||||||
Customer D | 11% | 10% | |||||||
*Represents less than 10% of the gross accounts receivable for the respective period end. | |||||||||
Original equipment manufacturers, or OEM Customers E, F and G together accounted for 44.4% of the Company’s net revenue in 2014. Customer E accounted for 18.6% and 24.3% of the Company’s net revenue in 2013 and 2012, respectively. No other customer accounted for more than 10% of the Company’s net revenue in 2014, 2013 and 2012. | |||||||||
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 primarily derives its revenue from sales of semiconductor products to original equipment manufacturers (OEMs), or through OEM’s contract manufacturers or distributors. The Company also derives revenue from licensing software and from professional service arrangements. | |||||||||
For sale of semiconductor products, the Company recognizes revenue when persuasive evidence of a binding arrangement exists, delivery has occurred, the price is deemed fixed or determinable and free of contingencies and significant uncertainties, and collectibility 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. The Company assesses the ability to collect from its 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 net revenue and the related shipping costs are included in cost of revenue. The Company records a reduction in revenue for provision for estimated sales returns in the same period the related revenues are recorded. These estimates are based on historical patterns of returns, analysis of credit memo data and other known factors at the time. Revenue is recognized upon shipment 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. | |||||||||
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 arrangements is recognized when all of the software revenue recognition criteria are met and, if applicable, when vendor specific objective evidence, or VSOE, exists to allocate the total license fee to each element of multiple-element software arrangements, including post-contract customer support. 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. | |||||||||
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 $1.8 million, $1.4 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, 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. The stock price volatility assumption is estimated using the Company’s historical stock price volatility. The Company uses the simplified method as permitted by the provisions on stock-based compensation to estimate the expected term since it has no sufficient history of weighted average period from the date of grant to exercise, cancellation, or expiration. 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, 2014, 2013 and 2012, 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, 2014, 2013 and 2012. | |||||||||
Recent Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board, or FASB issued a new guidance on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. The new revenue guidance’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the guidance requires five basic steps: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when or as the entity satisfies a performance obligation. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early adoption is prohibited. Different transition methods are available - full retrospective method and a modified retrospective (cumulative effect) approach. The Company has not selected the transition method and is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. | |||||||||
In June 2014, FASB issued an update to the accounting standards related to accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The update requires that a performance target in a share-based payment that affects vesting that could be achieved after the requisite service period should be accounted for as a performance condition under compensation-stock compensation guidance. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the requisite service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the effect of the adoption of this guidance on its financial statements. | |||||||||
In August 2014, the FASB issued an update to the accounting standards related to management’s responsibility in evaluating whether there is substantial doubt about the company’s ability to continue as a going concern and on the related disclosures in the notes. The update requires management to evaluate, at each annual or interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. The guidance is effective for annual reporting periods ending after December 15, 2016 and for annual periods and interim periods thereafter, with early adoption permitted. The Company does not expect that this new change to the accounting guidance will have a significant impact on the Company’s consolidated financial statements. |
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Loss Per Common Share | 2. Net 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 loss per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net loss attributable to the Company | $ | (15,295 | ) | $ | (2,965 | ) | $ | (112,632 | ) | |||
Weighted average common shares outstanding - basic | 53,451 | 51,596 | 49,886 | |||||||||
Dilutive effect of employee stock plans | - | - | - | |||||||||
Weighted average common shares outstanding - diluted | 53,451 | 51,596 | 49,886 | |||||||||
Net loss per common share, basic | $ | (0.29 | ) | $ | (0.06 | ) | $ | (2.26 | ) | |||
Net loss per common share, diluted | $ | (0.29 | ) | $ | (0.06 | ) | $ | (2.26 | ) | |||
The following outstanding options and restricted stock units were excluded from the computation of diluted net loss per common share for the periods presented because including them would have had an anti-dilutive effect: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Options to purchase common stock | 2,626 | 3,552 | 4,198 | |||||||||
Restricted stock units | 2,465 | 1,776 | 1,824 | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
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, 2014 and December 31, 2013, the Company’s cash equivalents comprised of an investment in a money market fund. At December 31, 2014, the Company also has short-term deposit which was classified under prepaid expense and other current assets. In accordance with the guidance for fair value measurements and disclosures, the Company determined the fair value hierarchy of its money market fund and short-term deposit as Level 1, which approximated $93.2 million and $94.2 million as of December 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 Consolidated Financial Statements for further discussion of the fair value measurements. 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, 2014 | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||
Balance Sheet Components | 4. Balance Sheet Components | |||||||||||
Inventories | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Work-in-process | $ | 37,207 | $ | 35,027 | ||||||||
Finished goods | 14,715 | 10,741 | ||||||||||
$ | 51,922 | $ | 45,768 | |||||||||
Property and equipment, net | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Test equipment and mask costs | $ | 50,591 | $ | 34,457 | ||||||||
Software, design tools, computer and other equipment | 53,686 | 34,945 | ||||||||||
Furniture, office equipment and leasehold improvements | 2,500 | 938 | ||||||||||
106,777 | 70,340 | |||||||||||
Less: accumulated depreciation and amortization | (49,814 | ) | (41,846 | ) | ||||||||
$ | 56,963 | $ | 28,494 | |||||||||
Depreciation and amortization expense was $19.5 million, $17.7 million and $14.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. Certain fully depreciated property and equipment have been eliminated from both the gross and accumulated amount. | ||||||||||||
The Company has capitalized $5.9 million, $3.6 million and $4.8 million of mask costs for the years ended December 31, 2014, 2013 and 2012, respectively. For the years ended December 31, 2014, 2013 and 2012, total amortization expense from masks was $2.6 million, $4.5 million and $4.2 million, respectively. Total mask cost, net of accumulated depreciation at December 31, 2014 and 2013 was $5.6 million and $2.3 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 $35.8 and $16.2 million at December 31, 2014 and 2013, respectively. In 2014, the Company entered into a purchase agreement with certain third party vendor for $28.5 million, payable in installments that mature in August 2017 in exchange for certain design tools. The present value of the installment payments were capitalized and included as part of property and equipment. Amortization expense related to assets recorded under capital lease and certain financing agreements was $9.5 million, $6.5 million and $4.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Other accrued expenses and other current liabilities | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Accrued compensation and related benefits | $ | 4,855 | $ | 4,262 | ||||||||
Professional fees | 1,029 | 1,536 | ||||||||||
Accrued royalty | 638 | 529 | ||||||||||
Deferred tax liability | 14 | 277 | ||||||||||
Income tax payable | 451 | 544 | ||||||||||
Accrued interest | 110 | 453 | ||||||||||
Customer deposits | 83 | 1,470 | ||||||||||
Other | 602 | 765 | ||||||||||
$ | 7,782 | $ | 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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 167 | $ | 440 | $ | 412 | ||||||
Accruals and adjustments | 679 | 206 | 467 | |||||||||
Settlements | (619 | ) | (479 | ) | (439 | ) | ||||||
Ending balance | $ | 227 | $ | 167 | $ | 440 | ||||||
Deferred revenue | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Services/support and maintenance | $ | 5,769 | $ | 5,326 | ||||||||
Software license/subscription | 516 | 1,176 | ||||||||||
Distributor deferred margin | - | 2,167 | ||||||||||
$ | 6,285 | $ | 8,669 | |||||||||
The Company recorded deferred revenue, net of deferred costs on shipments to a sell-through distributor. In April 2014, the Company terminated the distribution agreement with its sole sell-through distributor effective May 2014. | ||||||||||||
Other non-current liabilities | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Accrued rent | $ | 1,324 | $ | 1,034 | ||||||||
Income tax payable | 941 | 698 | ||||||||||
Other | 666 | 612 | ||||||||||
$ | 2,931 | $ | 2,344 | |||||||||
Business_Combinations_and_Dive
Business Combinations and Divestitures | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||
Business Combinations and Divestitures | 5. Business Combinations and Divestitures | ||||||||||||||||||||||||
Variable Interest Entity | |||||||||||||||||||||||||
Between May 2012 and December 2014, the Company entered into several note purchase agreements and promissory notes with Xpliant, Inc. (“Xpliant” or the “VIE”) to provide cash advances. Xpliant is a Delaware incorporated and privately held company, engaged in the design and development of next generation software defined network switch chips. 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 VIE. As such, the Company has included the accounts of the VIE in the consolidated financial statements. | |||||||||||||||||||||||||
As of December 31, 2014, the Company had made cash advances of $62.8 million, consisting of $10.0 million under nine convertible notes receivable which, as amended, matured on August 31, 2014 and $52.8 million under several promissory notes which mature between April 2015 and December 2015, or earlier if the closing of the acquisition occurs prior. The outstanding convertible notes and promissory notes bear an annual interest rate of 6%. Two of the convertible notes held by the Company are collateralized by a lien on the VIE’s assets. | |||||||||||||||||||||||||
In addition to the funding received by the VIE from the Company, between May 2012 and January 2014, certain third party investors (“non-controlling interest”) made cash advances of $13.0 million under fifteen convertible notes receivable which, as amended, matured on August 31, 2014. All of the convertible notes bore 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. Pursuant to the convertible notes, in the event the VIE closes a corporate transaction, as defined in the convertible notes, the holders of the convertible notes were entitled to receive two times the outstanding principal plus any unpaid accrued interest. | |||||||||||||||||||||||||
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 had the same features as the convertible notes, with the exception of the requirement for repayment, interest and maturity. The Company determined that for accounting purposes, the convertible security had 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 were related to the probability of the capital scenarios pursuant to the convertible notes. Based on the most reasonable assumptions determined by management, the fair value of the derivative feature of the convertible security at the issuance date was approximately the same as the principal amount. Accordingly, the Company classified the $2.9 million convertible security as a derivative liability within notes payable and other on the consolidated balance sheets. | |||||||||||||||||||||||||
All of the convertible notes and the derivative feature of convertible security relating to the non-controlling interests included in the consolidated financial statements were classified as Level 3 liability and therefore they were all remeasured and presented at fair value in the consolidated financial statements at each reporting period. The valuation of these instruments ranged from its principal amount to two times the principal amount of the convertible notes and convertible security. | |||||||||||||||||||||||||
In June 2014, pursuant to the option to acquire the VIE, the Company provided notice to the VIE of its decision to exercise the purchase option. As a result of the corporate transaction, the fair value estimation of the convertible notes and derivative feature of convertible security as of the second quarter of 2014 changed significantly compared to the previous reporting periods. As such, the estimated fair value of the convertible notes and derivative feature of the convertible security as of the second quarter of 2014 was close to two times the outstanding principal amount, factoring in the time value of money through settlement at maturity date. As a result, the Company recorded the change in fair value of the notes and other of $13.9 million in the statements of operations in the second quarter of 2014. The change in estimated fair value recognized in the statements of operations for the year ended December 31, 2014 amounted to $14.9 million. | |||||||||||||||||||||||||
On July 30, 2014, the Company entered into an Agreement and Plan of Merger and Reorganization, which was amended on October 8, 2014 (the “Merger Agreement”) with the VIE. Under the terms of the Merger Agreement, the Company will pay approximately $3.6 million in total consideration in a mix of cash and shares of the Company’s common stock in exchange for all outstanding securities held by Xpliant stockholders. The Merger Agreement provides that the merger will close no later than April 15, 2015, subject to certain closing conditions. The Company will also provide additional funding to the VIE to pay-out its outstanding liabilities, expenses and other costs through the completion of the transaction contemplated by the Merger Agreement. | |||||||||||||||||||||||||
Pursuant to the Merger Agreement and in connection with the transaction contemplated by the Merger Agreement, in October 2014, a portion of the cash advances made by the Company to the VIE were used to settle all outstanding convertible notes, related accrued interest and convertible security held by non-controlling interest of $30.8 million. Additionally, $1.7 million was used to make cash payments to the employees of the VIE. Further, per the Merger Agreement, in October 2014, the Company issued RSU’s of approximately 193,000 shares with a fair value of $8.7 million based on the Company’s stock price at the actual grant date to the employees of the VIE. | |||||||||||||||||||||||||
The table below summarizes the change in the value of the convertible notes and derivative features of the convertible security for the periods presented: | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Fair Value at Beginning of the Year | Additions | Exchange | Change in estimated fair value recognized in statements of operations | Repayment | Fair Value at End of the Year | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Convertible notes | $ | 10,612 | $ | 1,400 | $ | - | $ | 11,988 | $ | (24,000 | ) | $ | - | ||||||||||||
Derivative feature of convertible security | 2,900 | - | - | 2,900 | (5,800 | ) | - | ||||||||||||||||||
Total notes payable and other | $ | 13,512 | $ | 1,400 | $ | - | $ | 14,888 | $ | (29,800 | ) | $ | - | ||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair Value at Beginning of the Year | Additions | Exchange | Change in estimated fair value recognized in statements of operations | Repayment | Fair Value at End of the Year | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Convertible notes | $ | 5,012 | $ | 8,000 | $ | (1,400 | ) | $ | - | $ | (1,000 | ) | $ | 10,612 | |||||||||||
Derivative feature of convertible security | - | 1,500 | 1,400 | - | - | 2,900 | |||||||||||||||||||
Total notes payable and other | $ | 5,012 | $ | 9,500 | $ | - | $ | - | $ | (1,000 | ) | $ | 13,512 | ||||||||||||
The significant components of the VIE’s financial statements included in the Company’s consolidated financial statements as of December 31, 2014 include cash of $0.4 million; property and equipment and intangible assets of $8.7 million; accounts payable and accrued expenses of $2.6 million; and capital lease and technology license obligations of $2.8 million. The non-controlling interest was reclassified to additional paid-in capital in the consolidated balance sheets as of December 31, 2014 as a result of the settlement of the notes payable and other to the non-controlling interest in October 2014. As of December 31, 2013, the significant component of the VIE’s financial statements included in the Company’s 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. The net loss of the VIE was allocated to the Company and to the non-controlling interest based on the outstanding cash advances provided to the VIE at each reporting period. The Company’s portion of the net loss of the VIE for the years ended December 31, 2014, 2013 and 2012 amounted to $44.0 million, $5.2 million and $3.2 million, respectively. Included in the net loss of the VIE for the year ended December 31, 2014 was a charge related to the change in fair value of notes payable and other of $14.9 million and stock-based compensation and related taxes of $9.9 million. | |||||||||||||||||||||||||
In January 2015, the Company extended additional loans to the VIE in the amount of $6.0 million in exchange for promissory notes that bear annual interest rate of 6% that mature in January 2016, or earlier if the closing of the acquisition occurs prior. This funding was primarily to settle certain outstanding liabilities and operating expenses of the VIE. | |||||||||||||||||||||||||
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 recognized the future payments as a credit to sales, general and administrative expenses when the payments became 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. The Company received total installment cash consideration of $1.0 million each for the years ended December 31, 2014 and 2013, which was 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 first quarter of 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||
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, 2014 was $71.5 million, unchanged from the balance at December 31, 2013. | |||||||||||||||||
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. | |||||||||||||||||
During the first quarter of 2013, due to the sale of certain assets in the software and services 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. 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. In 2014 and 2013, 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, 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, 2014 and 2013. | |||||||||||||||||
Intangible assets, net | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 64,002 | (28,247 | ) | $ | 35,755 | 7.07 | ||||||||||
Existing and core technology - product | 42,085 | (40,264 | ) | 1,821 | 1.39 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,965 | ) | 26 | 0.83 | ||||||||||||
Trade name | 2,296 | (2,254 | ) | 42 | 0.17 | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 118,014 | $ | (80,370 | ) | $ | 37,644 | 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 $14.6 million, $23.3 million and $17.2 million for the years ended December 31, 2014, 2013 and 2012, 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. Certain fully amortized intangible assets have been eliminated from both the gross and accumulated amount. | |||||||||||||||||
No intangible impairment was recorded during the years ended December 31, 2014 and 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 estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | |||||||||||||||||
2015 | $ | 8,740 | |||||||||||||||
2016 | 6,592 | ||||||||||||||||
2017 | 4,601 | ||||||||||||||||
2018 | 3,558 | ||||||||||||||||
2019 | 3,462 | ||||||||||||||||
2020 and thereafter | 10,691 | ||||||||||||||||
$ | 37,644 | ||||||||||||||||
Restructuring_Accrual
Restructuring Accrual | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||||||||||||||
Restructuring Accrual | 7. Restructuring Accrual | ||||||||||||||||||||||||
The excess facility related restructuring accrual at the beginning of 2013 relates to the unused leased facility in Canada. The lease expired in March 2014. During 2014, the Company recorded restructuring accrual of $0.2 million related to the unused portion of a leased facility in Beijing, China, which lease expired in December 2014. | |||||||||||||||||||||||||
In connection with a workforce reduction during the years ended December 31, 2014 and 2013, the Company incurred and paid $1.4 million and $1.4 million, respectively, related to severance and other related benefits. | |||||||||||||||||||||||||
The restructuring payable is included in other in the other accrued expenses and other current liabilities. A summary of the accrued restructuring liabilities including related activities for the periods presented are as follows: | |||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
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 | $ | - | $ | 57 | $ | 57 | $ | - | $ | 262 | $ | 262 | |||||||||||||
Additions | 1,394 | 186 | 1,580 | 1,371 | - | 1,371 | |||||||||||||||||||
Cash payments | (1,394 | ) | (243 | ) | (1,637 | ) | (1,371 | ) | (205 | ) | (1,576 | ) | |||||||||||||
Balance at end of the year | $ | - | $ | - | $ | - | $ | - | $ | 57 | $ | 57 | |||||||||||||
Equity
Equity | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Equity | 8. Equity | ||||||||||||||||||||||||
Common and Preferred Stock | |||||||||||||||||||||||||
As of December 31, 2014 and 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, 2014 and 2013, 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, 2014, there were 8,315,963 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, 2014, 15,080,081 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, 2014 and 2013. | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
Detail related to stock option activity is as follows: | |||||||||||||||||||||||||
Number of Shares Outstanding | Weighted Average Exercise Price | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Options granted | 165,000 | 38.78 | |||||||||||||||||||||||
Options exercised | (1,082,914 | ) | 14.05 | ||||||||||||||||||||||
Options cancelled and forfeited | (8,042 | ) | 28.46 | ||||||||||||||||||||||
Balance as of December 31, 2014 | 2,626,260 | 20.62 | |||||||||||||||||||||||
The aggregate intrinsic value for options exercised during the years ended December 31, 2014, 2013 and 2012, were $36.2 million, $16.0 million and $12.6 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, 2014: | |||||||||||||||||||||||||
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 | |||||||||||||||||||
$1.02 - $1.02 | 10,501 | 0.59 | $ | 1.02 | 10,501 | $ | 1.02 | ||||||||||||||||||
$3.04 - $3.04 | 404,372 | 1.22 | 3.04 | 404,372 | 3.04 | ||||||||||||||||||||
$5.42 - $8.52 | 51,345 | 1.48 | 7.73 | 51,345 | 7.73 | ||||||||||||||||||||
$10.32 - $10.32 | 562,581 | 1.1 | 10.32 | 562,581 | 10.32 | ||||||||||||||||||||
$12.56 - $19.01 | 365,179 | 0.53 | 15.54 | 365,179 | 15.54 | ||||||||||||||||||||
$20.08 - $25.17 | 319,739 | 2.07 | 23.89 | 319,739 | 23.89 | ||||||||||||||||||||
$25.23 - $37.22 | 501,668 | 3.73 | 35.06 | 428,780 | 34.89 | ||||||||||||||||||||
$37.63 - $50.83 | 410,875 | 5.41 | 38.49 | 163,221 | 39.03 | ||||||||||||||||||||
$1.02 - $50.83 | 2,626,260 | 2.34 | $ | 20.62 | 2,305,718 | $ | 18.25 | $ | 108,199,870 | ||||||||||||||||
Exercisable | 2,305,718 | 1.93 | $ | 18.25 | $ | 100,451,953 | |||||||||||||||||||
Vested and expected to vest | 2,595,621 | 2.3 | $ | 20.42 | $ | 107,457,968 | |||||||||||||||||||
The aggregate intrinsic value for options outstanding at December 31, 2014, represents the difference between the weighted average exercise price and the closing price of the Company’s common stock at December 31, 2014, as reported on The NASDAQ Global Market, for all in the money options outstanding. | |||||||||||||||||||||||||
The fair value of each option grant for the years ended December 31, 2014, 2013 and 2012 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions below. | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Risk-free interest rate | 1.26% to 1.47% | 0.32% to 1.04% | 0.57% to 1.55% | ||||||||||||||||||||||
Expected life | 3.77 to 4.53 years | 3.77 to 4.53 years | 4.08 to 4.53 years | ||||||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||||||
Volatility | 43.8% to 45.1% | 4.8% to 49.6% | 51.3% to 57.3% | ||||||||||||||||||||||
The estimated weighted-average grant date fair value of options granted for the years ended December 31, 2014, 2013 and 2012 was $14.63 per share, $14.91 per share, and $14.79, respectively. | |||||||||||||||||||||||||
As of December 31, 2014, there is $4.3 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 2.19 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, 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 | |||||||||||||||||||||||
Granted | 1,970,094 | 41.32 | |||||||||||||||||||||||
Issued and released | (1,154,123 | ) | 37.55 | ||||||||||||||||||||||
Cancelled and forfeited | (127,394 | ) | 37.05 | ||||||||||||||||||||||
Balance as of December 31, 2014 | 2,464,747 | 39.21 | |||||||||||||||||||||||
The total intrinsic value of the RSUs outstanding as of December 31, 2014 was $134.9 million, representing the closing price of the Company’s stock on December 31, 2014, multiplied by the number of non-vested RSUs expected to vest as of December 31, 2014. | |||||||||||||||||||||||||
For 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. Based on the Company’s evaluation of the probability of achieving the milestone as of December 31, 2014, the Company determined that the fair value of this performance RSU’s was $2.7 million and recorded the related stock-based compensation expense for the year ended December 31, 2014. In May 2014, the Company granted a performance-based RSU. Based on the Company’s evaluation of the probability of achieving the milestones as of December 31, 2014, the Company determined that the fair value of this performance RSU was $1.5 million, however, no stock-based compensation expense recorded for the year ended December 31, 2014 related to this performance RSU grant. The Company continues to evaluate the probability of achieving the milestones for each of the performance-based RSU grants at each reporting period and will update the RSU expense which is included in stock-based compensation expense. | |||||||||||||||||||||||||
In October 2014, the Company granted RSU’s as per the Merger Agreement with Xpliant. See Note 5 of Notes to Consolidated Financial Statements for related discussions. | |||||||||||||||||||||||||
As of December 31, 2014, there was $72.7 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 2.61 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, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenue | $ | 954 | $ | 951 | $ | 1,954 | |||||||||||||||||||
Research and development | 32,328 | 18,577 | 16,729 | ||||||||||||||||||||||
Sales, general and administrative | 19,177 | 15,070 | 18,513 | ||||||||||||||||||||||
$ | 52,459 | $ | 34,598 | $ | 37,196 | ||||||||||||||||||||
The total stock-based compensation cost capitalized as part of inventory as of December 31, 2014 and 2013 was not significant. | |||||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 9. Income Taxes | ||||||||||||
The following table presents the provision for income taxes and the effective tax rates: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Loss before income taxes | $ | (24,182 | ) | $ | (11,751 | ) | $ | (77,342 | ) | ||||
Provision for income taxes | 1,633 | 1,937 | 36,321 | ||||||||||
Effective tax rate | (6.8 | )% | (16.5 | )% | (47.0 | )% | |||||||
The provision for income taxes for the year ended December 31, 2014 was primarily related to earnings in foreign jurisdictions. 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 domestic and foreign components of loss before income tax expense were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (42,318 | ) | $ | (20,066 | ) | $ | (63,739 | ) | ||||
Foreign | 18,136 | 8,315 | (13,603 | ) | |||||||||
$ | (24,182 | ) | $ | (11,751 | ) | $ | (77,342 | ) | |||||
Provision for income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current tax provision (benefit) | |||||||||||||
Domestic | $ | 19 | $ | 10 | $ | (320 | ) | ||||||
Foreign | 1,230 | 1,123 | 1,085 | ||||||||||
1,249 | 1,133 | 765 | |||||||||||
Deferred tax provision | |||||||||||||
Domestic | 627 | 713 | 35,344 | ||||||||||
Foreign | (243 | ) | 91 | 212 | |||||||||
384 | 804 | 35,556 | |||||||||||
Provision for income taxes | $ | 1,633 | $ | 1,937 | $ | 36,321 | |||||||
The Company’s effective tax rate differs from the United States federal statutory rate as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Stock compensation costs | 5.6 | 1.8 | (1.1 | ) | |||||||||
Other | 0.6 | 1.5 | 0.3 | ||||||||||
Convertible securities | (4.2 | ) | - | - | |||||||||
State taxes, net of federal benefit | (0.4 | ) | (1.6 | ) | (0.9 | ) | |||||||
Foreign income inclusion in the U.S. | (0.5 | ) | (3.8 | ) | (0.4 | ) | |||||||
Research and development credits | 24.2 | 48 | - | ||||||||||
Foreign tax rate differential | 19.6 | 46.7 | (8.8 | ) | |||||||||
Change in valuation allowance | (86.7 | ) | (144.1 | ) | (58.6 | ) | |||||||
Goodwill impairment | - | - | (12.5 | ) | |||||||||
Total | (6.8 | )% | (16.5 | )% | (47.0 | )% | |||||||
The tax effects of the temporary differences that give rise to deferred tax assets and liabilities are as follows: | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Tax credits | $ | 38,354 | $ | 28,758 | |||||||||
Net operating loss carryforwards | 44,975 | 36,645 | |||||||||||
Capitalized research and development | 4,652 | 10 | |||||||||||
Intangible assets | 3,881 | 1,627 | |||||||||||
Depreciation and amortization | 1,355 | - | |||||||||||
Stock compensation | 9,893 | 9,035 | |||||||||||
Other | 2,832 | 4,118 | |||||||||||
Gross deferred tax assets | 105,942 | 80,193 | |||||||||||
Less: valuation allowance | (105,638 | ) | (79,928 | ) | |||||||||
Net deferred tax assets | 304 | 265 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | (2,836 | ) | - | ||||||||||
Depreciation and amortization | - | (1,254 | ) | ||||||||||
Other | - | (1,158 | ) | ||||||||||
Net deferred tax liabilities | $ | (2,532 | ) | $ | (2,147 | ) | |||||||
Reported As | |||||||||||||
Deferred tax assets, current | $ | - | $ | - | |||||||||
Deferred tax assets, non-current | 318 | 61 | |||||||||||
Deferred tax liabilities, current | (14 | ) | (277 | ) | |||||||||
Deferred tax liabilities, non-current | (2,836 | ) | (1,931 | ) | |||||||||
Net deferred tax liabilities | $ | (2,532 | ) | $ | (2,147 | ) | |||||||
As of December 31, 2014, the Company had total net operating loss carryforwards for federal and states of California and Massachusetts income tax purposes of $315.6 million and $200.4 million, respectively. If not utilized, these federal and state net operating loss carryforwards will expire beginning in 2020 and 2015, respectively. The federal and states of California and Massachusetts net operating loss carryforwards include excess windfall deductions of $152.3 million and $92.9 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 $59.1 million will be recorded within stockholders’ equity when it reduces cash taxes payable. The Company uses the “with and without” approach in 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 $32.3 million and $28.4 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, 2014. | |||||||||||||
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 periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that there is a continued need for a valuation allowance as the Company is in a cumulative loss position over the previous three years, which is considered significant negative evidence. As such, the Company has not changed its judgment regarding the need for a full valuation allowance on its federal and state deferred tax assets as of December 31, 2014. However, continued improvement in the Company's operating results, conditioned on successfully generating increased revenue and managing costs, could lead to reversal of substantially all of the Company's valuation allowance. Until such time, consumption of tax attributes to offset profits will reduce the overall level of deferred tax assets subject to valuation allowance. Should the Company determine that it would be able to realize its remaining deferred tax assets in the foreseeable future, an adjustment to its remaining deferred tax assets would cause a material increase to net income in the period such determination is made. | |||||||||||||
Certain of the Company’s net operating losses and research credits totaling $28.0 million are subject to an annual limitation of $1.8 million to $2.3 million over the next 15 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 subsidiaries of approximately $4.5 million and $1.1 million as of December 31, 2014 and 2013, 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, 2014 and 2013, 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, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Balance at beginning of the year | $ | 14,625 | $ | 12,749 | |||||||||
Gross increases (decreases) related to prior year's tax positions | 199 | (526 | ) | ||||||||||
Gross increases related to current year's tax positions | 1,446 | 2,402 | |||||||||||
Balance at the end of the year | $ | 16,270 | $ | 14,625 | |||||||||
Included in the unrecognized tax benefits at December 31, 2014 is $0.9 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, 2014 and 2013, 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 year ended December 31, 2012. The Company realized benefits from the reduced tax rate for the periods presented as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Provision for Singapore entity at statutory tax rate of 17% | $ | 719 | $ | 615 | $ | 351 | |||||||
Provision for (benefit from) Singapore entity in the consolidated statement of operations | 303 | (209 | ) | 351 | |||||||||
Benefit from preferential tax rate differential | (416 | ) | (824 | ) | - | ||||||||
Impact of tax benefits per basic and diluted share | $ | (0.01 | ) | $ | (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, 2014, there are no on-going tax audits in the major tax jurisdictions other than India and Singapore. The India tax audit is for the tax years 2010, 2011 and 2012, and the Singapore tax audit is for the tax year 2012. The Company does not expect any significant tax adjustments from either of these audits. |
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |
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’ annual contribution up to two thousand dollars per employee. The Company contributions to the plan may be made at the discretion of the Company’s board of directors. For the years ended December 31, 2014, 2013 and 2012, the Company’s defined contribution expense was $1.0 million, $0.8 million and $0.7 million, respectively. | |
In connection with local foreign laws, the Company is required to have a tenured-based defined benefit plan for its employees in Korea and India. The Company’s tenured-based payout liability is calculated based on the salary of each employee multiplied by the years of such employee’s employment, and is reflected on the Company’s consolidated balance sheets in other long-term liabilities on an accrual basis. The total liability from such defined benefit plan amounted to $0.5 million and $0.4 million as of December 31, 2014 and 2013, respectively. | |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
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 manages and operates as one reporting segment. | ||||||||||||
The Company’s net 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 net revenue for the years ended December 31, 2014, 2013 and 2012. The Company categorizes its net revenue in two different markets, (i) the enterprise network, data center and access and service provider markets; and (ii) broadband and consumer markets. The net revenue by markets for the periods indicated was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Enterprise network, data center and access and service provider markets | $ | 341,056 | $ | 259,860 | $ | 184,437 | ||||||
Broadband and consumer markets | 31,922 | 44,133 | 51,043 | |||||||||
$ | 372,978 | $ | 303,993 | $ | 235,480 | |||||||
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. Net revenue by geography for the periods indicated was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
United States | $ | 111,997 | $ | 90,537 | $ | 66,839 | ||||||
China | 93,045 | 77,965 | 65,898 | |||||||||
Finland | 44,976 | 17,767 | 2,399 | |||||||||
Taiwan | 29,229 | 26,023 | 25,204 | |||||||||
Korea | 28,665 | 30,003 | 16,899 | |||||||||
Mexico | 27,184 | 22,572 | 9,954 | |||||||||
Japan | 6,046 | 9,231 | 15,820 | |||||||||
Malaysia | 9,059 | 14,789 | 16,021 | |||||||||
Other countries | 22,777 | 15,106 | 16,446 | |||||||||
Total | $ | 372,978 | $ | 303,993 | $ | 235,480 | ||||||
The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
United States | $ | 49,856 | $ | 25,160 | ||||||||
All other countries | 7,107 | 3,334 | ||||||||||
Total | $ | 56,963 | $ | 28,494 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | 12. Commitments and Contingencies | ||||||||||||
The Company is not currently a party to any legal proceedings the 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 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. In addition, in October 2014, the Company entered into a new purchase agreement with a third party vendor for $28.5 million, payable in installments that mature in August 2017 in exchange for certain design tools. The present value of the installment payments were capitalized and included as part of property and equipment and the related liability under capital lease and technology license obligations. | |||||||||||||
Minimum commitments under non-cancelable operating leases and capital lease and technology license obligations as of December 31, 2014 are as follows: | |||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
2015 | $ | 24,491 | $ | 7,174 | $ | 31,665 | |||||||
2016 | 16,303 | 8,680 | 24,983 | ||||||||||
2017 | 7,353 | 8,731 | 16,084 | ||||||||||
2018 | - | 8,929 | 8,929 | ||||||||||
2019 | - | 8,847 | 8,847 | ||||||||||
2020 thereafter | - | 23,135 | 23,135 | ||||||||||
$ | 48,147 | $ | 65,496 | $ | 113,643 | ||||||||
Less: Interest component (3.75% annual rate) | 2,251 | ||||||||||||
Present value of minimum lease payment | 45,896 | ||||||||||||
Current portion of the obligations | $ | 23,002 | |||||||||||
Long-term portion of obligations | $ | 22,894 | |||||||||||
Rent expense incurred under operating leases was $6.4 million, $5.1 million and $5.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
In September 2013, the VIE entered into a purchase agreement with a third party vendor to purchase certain test equipment amounting to $6.1 million, payable in installments over two years. 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 installments over two years. In June 2014, the VIE entered into a non-cancellable purchase order with the same third party vendor to purchase additional test equipment amounting to $4.0 million, due and payable in September 2014. The related test equipment was received and recorded in August 2014. The remaining liability related to these purchase agreements as of December 31, 2014 was $2.6 million. 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. | |||||||||||||
The Company has funding commitments in relation to the merger agreement with the VIE. See Note 5 of Notes to Consolidated Financial Statements for related discussions. |
Selected_Quarterly_Consolidate
Selected Quarterly Consolidated Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Consolidated Financial Data (Unaudited) | 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, 2014 and 2013. 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. | ||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Dec.31 | Sep.30 | Jun.30 | Mar.31 | Dec.31 | Sep.30 | Jun.30 | Mar.31 | |||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 101,223 | $ | 97,833 | $ | 90,681 | $ | 83,241 | $ | 81,135 | $ | 79,124 | $ | 74,204 | $ | 69,530 | ||||||||||||||||
Cost of revenue | 38,402 | 35,710 | 33,897 | 30,350 | 29,059 | 28,516 | 30,945 | 26,159 | ||||||||||||||||||||||||
Gross profit | 62,821 | 62,123 | 56,784 | 52,891 | 52,076 | 50,608 | 43,259 | 43,371 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Research and development | 55,108 | 40,459 | 38,834 | 37,289 | 36,127 | 33,630 | 32,424 | 32,415 | ||||||||||||||||||||||||
Sales, general and administrative | 19,314 | 18,141 | 17,017 | 15,932 | 17,871 | 14,833 | 16,144 | 15,240 | ||||||||||||||||||||||||
Total operating expenses | 74,422 | 58,600 | 55,851 | 53,221 | 53,998 | 48,463 | 48,568 | 47,655 | ||||||||||||||||||||||||
Income (loss) from operations | (11,601 | ) | 3,523 | 933 | (330 | ) | (1,922 | ) | 2,145 | (5,309 | ) | (4,284 | ) | |||||||||||||||||||
Other income (expense), net: | ||||||||||||||||||||||||||||||||
Interest expense | (293 | ) | (387 | ) | (333 | ) | (459 | ) | (395 | ) | (390 | ) | (375 | ) | (342 | ) | ||||||||||||||||
Change in estimated fair value of notes payable and other | - | (103 | ) | (13,927 | ) | (858 | ) | - | - | - | - | |||||||||||||||||||||
Other, net | (313 | ) | (116 | ) | (53 | ) | 135 | (74 | ) | (126 | ) | (418 | ) | (261 | ) | |||||||||||||||||
Total other expense, net | (606 | ) | (606 | ) | (14,313 | ) | (1,182 | ) | (469 | ) | (516 | ) | (793 | ) | (603 | ) | ||||||||||||||||
Income (loss) before income taxes | (12,207 | ) | 2,917 | (13,380 | ) | (1,512 | ) | (2,391 | ) | 1,629 | (6,102 | ) | (4,887 | ) | ||||||||||||||||||
Provision for income taxes | 268 | 811 | 311 | 243 | 120 | 714 | 677 | 426 | ||||||||||||||||||||||||
Net income (loss) | (12,475 | ) | 2,106 | (13,691 | ) | (1,755 | ) | (2,511 | ) | 915 | (6,779 | ) | (5,313 | ) | ||||||||||||||||||
Net loss attributable to non-controlling interest | (444 | ) | (3,327 | ) | (2,647 | ) | (4,102 | ) | (2,698 | ) | (3,421 | ) | (2,475 | ) | (2,129 | ) | ||||||||||||||||
Net income (loss) attributable to the Company | $ | (12,031 | ) | $ | 5,433 | $ | (11,044 | ) | $ | 2,347 | $ | 187 | $ | 4,336 | $ | (4,304 | ) | $ | (3,184 | ) | ||||||||||||
Earnings per share attributable to the Company: | ||||||||||||||||||||||||||||||||
Net income (loss) per common share, basic | $ | (0.22 | ) | $ | 0.1 | $ | (0.21 | ) | $ | 0.04 | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
Net income (loss) per common share, diluted | $ | (0.22 | ) | $ | 0.1 | $ | (0.21 | ) | $ | 0.04 | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
-1 | Research and development expense included expenses from the VIE of $4.2 million, $4.7 million, $4.8 million and $5.7 million for the quarters ended March 31, June 30, September 30 and December 31, 2014, respectively; and $3.6 million, $3.5 million, $4.5 million and $3.1 million for the quarters ended March 31, June 30, September 30 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||
-2 | Research and development expense for the quarter ended December 31, 2014 include stock-based compensation expense and related taxes associated to the VIE of $8.8 million. | |||||||||||||||||||||||||||||||
-3 | Sales, general and administrative expense included expense from the VIE of $0.3 million, $0.3 million, $0.9 million and $0.6 million for the quarters ended March 31, June 30, September 30 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||||
-4 | Sales, general and administrative expense for the quarter ended December 31, 2014 include stock-based compensation expense and related taxes associated to the VIE of $1.1 million. | |||||||||||||||||||||||||||||||
-5 | A charge related to the change in estimated fair value of convertible notes and derivative feature of convertible security held by non-controlling interest of the VIE was recorded in the amount of $0.9 million, $13.9 million and $0.1 million for the quarters ended March 31, June 30 and September 30, 2014, respectively. | |||||||||||||||||||||||||||||||
-6 | Sales, general and administrative expense for the quarter ended June 30, 2013 included 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. | |||||||||||||||||||||||||||||||
-7 | Research and development expense for the quarter ended December 31, 2013 included additional amortization expense of $2.9 million resulting from the change in estimated useful lives of certain intangible assets. | |||||||||||||||||||||||||||||||
-8 | Sales, general and administrative expense for the quarter ended December 31, 2013 included 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 | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts | ||||||||||||||||
Balance at beginning of period | Additions | Deductions | Balance at end of period | ||||||||||||||
(in thousands) | |||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Allowance for doubtful accounts | $ | 24 | $ | 1 | $ | (1 | ) | $ | 24 | ||||||||
Allowance for customer returns | 909 | 3,716 | (3,507 | ) | 1,118 | ||||||||||||
Income tax valuation allowance | 79,928 | 25,710 | - | 105,638 | |||||||||||||
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 | |||||||||||||
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, 2014 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||
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 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, 2014 and 2013. | |||||||||
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, design tools, 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 | ||||||||
Mask Costs | 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, | |||||||||
2014 | 2013 | ||||||||
Percentage of gross accounts receivable | |||||||||
Customer A | 12% | 13% | |||||||
Customer B | * | 13% | |||||||
Customer C | 21% | * | |||||||
Customer D | 11% | 10% | |||||||
*Represents less than 10% of the gross accounts receivable for the respective period end. | |||||||||
Original equipment manufacturers, or OEM Customers E, F and G together accounted for 44.4% of the Company’s net revenue in 2014. Customer E accounted for 18.6% and 24.3% of the Company’s net revenue in 2013 and 2012, respectively. No other customer accounted for more than 10% of the Company’s net revenue in 2014, 2013 and 2012. | |||||||||
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 primarily derives its revenue from sales of semiconductor products to original equipment manufacturers (OEMs), or through OEM’s contract manufacturers or distributors. The Company also derives revenue from licensing software and from professional service arrangements. | |||||||||
For sale of semiconductor products, the Company recognizes revenue when persuasive evidence of a binding arrangement exists, delivery has occurred, the price is deemed fixed or determinable and free of contingencies and significant uncertainties, and collectibility 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. The Company assesses the ability to collect from its 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 net revenue and the related shipping costs are included in cost of revenue. The Company records a reduction in revenue for provision for estimated sales returns in the same period the related revenues are recorded. These estimates are based on historical patterns of returns, analysis of credit memo data and other known factors at the time. Revenue is recognized upon shipment 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. | |||||||||
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 arrangements is recognized when all of the software revenue recognition criteria are met and, if applicable, when vendor specific objective evidence, or VSOE, exists to allocate the total license fee to each element of multiple-element software arrangements, including post-contract customer support. 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. | |||||||||
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 $1.8 million, $1.4 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, 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. The stock price volatility assumption is estimated using the Company’s historical stock price volatility. The Company uses the simplified method as permitted by the provisions on stock-based compensation to estimate the expected term since it has no sufficient history of weighted average period from the date of grant to exercise, cancellation, or expiration. 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, 2014, 2013 and 2012, 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, 2014, 2013 and 2012. | |||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||
In May 2014, the Financial Accounting Standards Board, or FASB issued a new guidance on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. The new revenue guidance’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the guidance requires five basic steps: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when or as the entity satisfies a performance obligation. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early adoption is prohibited. Different transition methods are available - full retrospective method and a modified retrospective (cumulative effect) approach. The Company has not selected the transition method and is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. | |||||||||
In June 2014, FASB issued an update to the accounting standards related to accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The update requires that a performance target in a share-based payment that affects vesting that could be achieved after the requisite service period should be accounted for as a performance condition under compensation-stock compensation guidance. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the requisite service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the effect of the adoption of this guidance on its financial statements. | |||||||||
In August 2014, the FASB issued an update to the accounting standards related to management’s responsibility in evaluating whether there is substantial doubt about the company’s ability to continue as a going concern and on the related disclosures in the notes. The update requires management to evaluate, at each annual or interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. The guidance is effective for annual reporting periods ending after December 15, 2016 and for annual periods and interim periods thereafter, with early adoption permitted. The Company does not expect that this new change to the accounting guidance will have a significant impact on the Company’s consolidated financial statements. |
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||
Schedule of Property and Equipment Estimated Useful Lives | |||||||||
Estimated | |||||||||
Useful Lives | |||||||||
Software, design tools, 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, | |||||||||
2014 | 2013 | ||||||||
Percentage of gross accounts receivable | |||||||||
Customer A | 12% | 13% | |||||||
Customer B | * | 13% | |||||||
Customer C | 21% | * | |||||||
Customer D | 11% | 10% | |||||||
*Represents less than 10% of the gross accounts receivable for the respective period end. |
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Basic and Diluted Net Loss Per Common Share | The following table sets forth the computation of net loss per share: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net loss attributable to the Company | $ | (15,295 | ) | $ | (2,965 | ) | $ | (112,632 | ) | |||
Weighted average common shares outstanding - basic | 53,451 | 51,596 | 49,886 | |||||||||
Dilutive effect of employee stock plans | - | - | - | |||||||||
Weighted average common shares outstanding - diluted | 53,451 | 51,596 | 49,886 | |||||||||
Net loss per common share, basic | $ | (0.29 | ) | $ | (0.06 | ) | $ | (2.26 | ) | |||
Net loss per common share, diluted | $ | (0.29 | ) | $ | (0.06 | ) | $ | (2.26 | ) | |||
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 loss per common share for the periods presented because including them would have had an anti-dilutive effect: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Options to purchase common stock | 2,626 | 3,552 | 4,198 | |||||||||
Restricted stock units | 2,465 | 1,776 | 1,824 | |||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||
Inventories | Inventories | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Work-in-process | $ | 37,207 | $ | 35,027 | ||||||||
Finished goods | 14,715 | 10,741 | ||||||||||
$ | 51,922 | $ | 45,768 | |||||||||
Property and Equipment, Net | Property and equipment, net | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Test equipment and mask costs | $ | 50,591 | $ | 34,457 | ||||||||
Software, design tools, computer and other equipment | 53,686 | 34,945 | ||||||||||
Furniture, office equipment and leasehold improvements | 2,500 | 938 | ||||||||||
106,777 | 70,340 | |||||||||||
Less: accumulated depreciation and amortization | (49,814 | ) | (41,846 | ) | ||||||||
$ | 56,963 | $ | 28,494 | |||||||||
Other Accrued Expenses And Other Current Liabilities | Other accrued expenses and other current liabilities | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Accrued compensation and related benefits | $ | 4,855 | $ | 4,262 | ||||||||
Professional fees | 1,029 | 1,536 | ||||||||||
Accrued royalty | 638 | 529 | ||||||||||
Deferred tax liability | 14 | 277 | ||||||||||
Income tax payable | 451 | 544 | ||||||||||
Accrued interest | 110 | 453 | ||||||||||
Customer deposits | 83 | 1,470 | ||||||||||
Other | 602 | 765 | ||||||||||
$ | 7,782 | $ | 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: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 167 | $ | 440 | $ | 412 | ||||||
Accruals and adjustments | 679 | 206 | 467 | |||||||||
Settlements | (619 | ) | (479 | ) | (439 | ) | ||||||
Ending balance | $ | 227 | $ | 167 | $ | 440 | ||||||
Deferred Revenue | Deferred revenue | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Services/support and maintenance | $ | 5,769 | $ | 5,326 | ||||||||
Software license/subscription | 516 | 1,176 | ||||||||||
Distributor deferred margin | - | 2,167 | ||||||||||
$ | 6,285 | $ | 8,669 | |||||||||
Other Non-Current Liabilities | Other non-current liabilities | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Accrued rent | $ | 1,324 | $ | 1,034 | ||||||||
Income tax payable | 941 | 698 | ||||||||||
Other | 666 | 612 | ||||||||||
$ | 2,931 | $ | 2,344 | |||||||||
Business_Combinations_and_Dive1
Business Combinations and Divestitures (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||
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 periods presented: | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Fair Value at Beginning of the Year | Additions | Exchange | Change in estimated fair value recognized in statements of operations | Repayment | Fair Value at End of the Year | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Convertible notes | $ | 10,612 | $ | 1,400 | $ | - | $ | 11,988 | $ | (24,000 | ) | $ | - | ||||||||||||
Derivative feature of convertible security | 2,900 | - | - | 2,900 | (5,800 | ) | - | ||||||||||||||||||
Total notes payable and other | $ | 13,512 | $ | 1,400 | $ | - | $ | 14,888 | $ | (29,800 | ) | $ | - | ||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair Value at Beginning of the Year | Additions | Exchange | Change in estimated fair value recognized in statements of operations | Repayment | Fair Value at End of the Year | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Convertible notes | $ | 5,012 | $ | 8,000 | $ | (1,400 | ) | $ | - | $ | (1,000 | ) | $ | 10,612 | |||||||||||
Derivative feature of convertible security | - | 1,500 | 1,400 | - | - | 2,900 | |||||||||||||||||||
Total notes payable and other | $ | 5,012 | $ | 9,500 | $ | - | $ | - | $ | (1,000 | ) | $ | 13,512 | ||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Intangible Assets, Net | Intangible assets, net | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 64,002 | (28,247 | ) | $ | 35,755 | 7.07 | ||||||||||
Existing and core technology - product | 42,085 | (40,264 | ) | 1,821 | 1.39 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,965 | ) | 26 | 0.83 | ||||||||||||
Trade name | 2,296 | (2,254 | ) | 42 | 0.17 | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 118,014 | $ | (80,370 | ) | $ | 37,644 | 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 | The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | ||||||||||||||||
2015 | $ | 8,740 | |||||||||||||||
2016 | 6,592 | ||||||||||||||||
2017 | 4,601 | ||||||||||||||||
2018 | 3,558 | ||||||||||||||||
2019 | 3,462 | ||||||||||||||||
2020 and thereafter | 10,691 | ||||||||||||||||
$ | 37,644 | ||||||||||||||||
Restructuring_Accrual_Tables
Restructuring Accrual (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||||||||||||||
Accrued Restructuring Liabilities Including Related Activities | The restructuring payable is included in other in the other accrued expenses and other current liabilities. A summary of the accrued restructuring liabilities including related activities for the periods presented are as follows: | ||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
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 | $ | - | $ | 57 | $ | 57 | $ | - | $ | 262 | $ | 262 | |||||||||||||
Additions | 1,394 | 186 | 1,580 | 1,371 | - | 1,371 | |||||||||||||||||||
Cash payments | (1,394 | ) | (243 | ) | (1,637 | ) | (1,371 | ) | (205 | ) | (1,576 | ) | |||||||||||||
Balance at end of the year | $ | - | $ | - | $ | - | $ | - | $ | 57 | $ | 57 | |||||||||||||
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
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, 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 | |||||||||||||||||||||||
Options granted | 165,000 | 38.78 | |||||||||||||||||||||||
Options exercised | (1,082,914 | ) | 14.05 | ||||||||||||||||||||||
Options cancelled and forfeited | (8,042 | ) | 28.46 | ||||||||||||||||||||||
Balance as of December 31, 2014 | 2,626,260 | 20.62 | |||||||||||||||||||||||
Summary Of Stock Options Outstanding | The following table summarizes information about stock options outstanding as of December 31, 2014: | ||||||||||||||||||||||||
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 | |||||||||||||||||||
$1.02 - $1.02 | 10,501 | 0.59 | $ | 1.02 | 10,501 | $ | 1.02 | ||||||||||||||||||
$3.04 - $3.04 | 404,372 | 1.22 | 3.04 | 404,372 | 3.04 | ||||||||||||||||||||
$5.42 - $8.52 | 51,345 | 1.48 | 7.73 | 51,345 | 7.73 | ||||||||||||||||||||
$10.32 - $10.32 | 562,581 | 1.1 | 10.32 | 562,581 | 10.32 | ||||||||||||||||||||
$12.56 - $19.01 | 365,179 | 0.53 | 15.54 | 365,179 | 15.54 | ||||||||||||||||||||
$20.08 - $25.17 | 319,739 | 2.07 | 23.89 | 319,739 | 23.89 | ||||||||||||||||||||
$25.23 - $37.22 | 501,668 | 3.73 | 35.06 | 428,780 | 34.89 | ||||||||||||||||||||
$37.63 - $50.83 | 410,875 | 5.41 | 38.49 | 163,221 | 39.03 | ||||||||||||||||||||
$1.02 - $50.83 | 2,626,260 | 2.34 | $ | 20.62 | 2,305,718 | $ | 18.25 | $ | 108,199,870 | ||||||||||||||||
Exercisable | 2,305,718 | 1.93 | $ | 18.25 | $ | 100,451,953 | |||||||||||||||||||
Vested and expected to vest | 2,595,621 | 2.3 | $ | 20.42 | $ | 107,457,968 | |||||||||||||||||||
Assumptions Of Fair Value Of Employee Option Grant Using Black-Scholes Option - Pricing Model | The fair value of each option grant for the years ended December 31, 2014, 2013 and 2012 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions below. | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Risk-free interest rate | 1.26% to 1.47% | 0.32% to 1.04% | 0.57% to 1.55% | ||||||||||||||||||||||
Expected life | 3.77 to 4.53 years | 3.77 to 4.53 years | 4.08 to 4.53 years | ||||||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||||||
Volatility | 43.8% to 45.1% | 4.8% to 49.6% | 51.3% to 57.3% | ||||||||||||||||||||||
Summary of Activity of Restricted Stock | 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, 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 | |||||||||||||||||||||||
Granted | 1,970,094 | 41.32 | |||||||||||||||||||||||
Issued and released | (1,154,123 | ) | 37.55 | ||||||||||||||||||||||
Cancelled and forfeited | (127,394 | ) | 37.05 | ||||||||||||||||||||||
Balance as of December 31, 2014 | 2,464,747 | 39.21 | |||||||||||||||||||||||
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, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenue | $ | 954 | $ | 951 | $ | 1,954 | |||||||||||||||||||
Research and development | 32,328 | 18,577 | 16,729 | ||||||||||||||||||||||
Sales, general and administrative | 19,177 | 15,070 | 18,513 | ||||||||||||||||||||||
$ | 52,459 | $ | 34,598 | $ | 37,196 | ||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Provision for Income Taxes and Effective Tax Rates | The following table presents the provision for income taxes and the effective tax rates: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Loss before income taxes | $ | (24,182 | ) | $ | (11,751 | ) | $ | (77,342 | ) | ||||
Provision for income taxes | 1,633 | 1,937 | 36,321 | ||||||||||
Effective tax rate | (6.8 | )% | (16.5 | )% | (47.0 | )% | |||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (42,318 | ) | $ | (20,066 | ) | $ | (63,739 | ) | ||||
Foreign | 18,136 | 8,315 | (13,603 | ) | |||||||||
$ | (24,182 | ) | $ | (11,751 | ) | $ | (77,342 | ) | |||||
Schedule of Income Tax Expense | Provision for income taxes consists of the following: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current tax provision (benefit) | |||||||||||||
Domestic | $ | 19 | $ | 10 | $ | (320 | ) | ||||||
Foreign | 1,230 | 1,123 | 1,085 | ||||||||||
1,249 | 1,133 | 765 | |||||||||||
Deferred tax provision | |||||||||||||
Domestic | 627 | 713 | 35,344 | ||||||||||
Foreign | (243 | ) | 91 | 212 | |||||||||
384 | 804 | 35,556 | |||||||||||
Provision for income taxes | $ | 1,633 | $ | 1,937 | $ | 36,321 | |||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Stock compensation costs | 5.6 | 1.8 | (1.1 | ) | |||||||||
Other | 0.6 | 1.5 | 0.3 | ||||||||||
Convertible securities | (4.2 | ) | - | - | |||||||||
State taxes, net of federal benefit | (0.4 | ) | (1.6 | ) | (0.9 | ) | |||||||
Foreign income inclusion in the U.S. | (0.5 | ) | (3.8 | ) | (0.4 | ) | |||||||
Research and development credits | 24.2 | 48 | - | ||||||||||
Foreign tax rate differential | 19.6 | 46.7 | (8.8 | ) | |||||||||
Change in valuation allowance | (86.7 | ) | (144.1 | ) | (58.6 | ) | |||||||
Goodwill impairment | - | - | (12.5 | ) | |||||||||
Total | (6.8 | )% | (16.5 | )% | (47.0 | )% | |||||||
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, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Tax credits | $ | 38,354 | $ | 28,758 | |||||||||
Net operating loss carryforwards | 44,975 | 36,645 | |||||||||||
Capitalized research and development | 4,652 | 10 | |||||||||||
Intangible assets | 3,881 | 1,627 | |||||||||||
Depreciation and amortization | 1,355 | - | |||||||||||
Stock compensation | 9,893 | 9,035 | |||||||||||
Other | 2,832 | 4,118 | |||||||||||
Gross deferred tax assets | 105,942 | 80,193 | |||||||||||
Less: valuation allowance | (105,638 | ) | (79,928 | ) | |||||||||
Net deferred tax assets | 304 | 265 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | (2,836 | ) | - | ||||||||||
Depreciation and amortization | - | (1,254 | ) | ||||||||||
Other | - | (1,158 | ) | ||||||||||
Net deferred tax liabilities | $ | (2,532 | ) | $ | (2,147 | ) | |||||||
Reported As | |||||||||||||
Deferred tax assets, current | $ | - | $ | - | |||||||||
Deferred tax assets, non-current | 318 | 61 | |||||||||||
Deferred tax liabilities, current | (14 | ) | (277 | ) | |||||||||
Deferred tax liabilities, non-current | (2,836 | ) | (1,931 | ) | |||||||||
Net deferred tax liabilities | $ | (2,532 | ) | $ | (2,147 | ) | |||||||
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Balance at beginning of the year | $ | 14,625 | $ | 12,749 | |||||||||
Gross increases (decreases) related to prior year's tax positions | 199 | (526 | ) | ||||||||||
Gross increases related to current year's tax positions | 1,446 | 2,402 | |||||||||||
Balance at the end of the year | $ | 16,270 | $ | 14,625 | |||||||||
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 year ended December 31, 2012. The Company realized benefits from the reduced tax rate for the periods presented as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Provision for Singapore entity at statutory tax rate of 17% | $ | 719 | $ | 615 | $ | 351 | |||||||
Provision for (benefit from) Singapore entity in the consolidated statement of operations | 303 | (209 | ) | 351 | |||||||||
Benefit from preferential tax rate differential | (416 | ) | (824 | ) | - | ||||||||
Impact of tax benefits per basic and diluted share | $ | (0.01 | ) | $ | (0.02 | ) | $ | - | |||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Net Revenue by Markets | The net revenue by markets for the periods indicated was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Enterprise network, data center and access and service provider markets | $ | 341,056 | $ | 259,860 | $ | 184,437 | ||||||
Broadband and consumer markets | 31,922 | 44,133 | 51,043 | |||||||||
$ | 372,978 | $ | 303,993 | $ | 235,480 | |||||||
Net Revenue by Geography | Net revenue by geography for the periods indicated was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
United States | $ | 111,997 | $ | 90,537 | $ | 66,839 | ||||||
China | 93,045 | 77,965 | 65,898 | |||||||||
Finland | 44,976 | 17,767 | 2,399 | |||||||||
Taiwan | 29,229 | 26,023 | 25,204 | |||||||||
Korea | 28,665 | 30,003 | 16,899 | |||||||||
Mexico | 27,184 | 22,572 | 9,954 | |||||||||
Japan | 6,046 | 9,231 | 15,820 | |||||||||
Malaysia | 9,059 | 14,789 | 16,021 | |||||||||
Other countries | 22,777 | 15,106 | 16,446 | |||||||||
Total | $ | 372,978 | $ | 303,993 | $ | 235,480 | ||||||
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, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
United States | $ | 49,856 | $ | 25,160 | ||||||||
All other countries | 7,107 | 3,334 | ||||||||||
Total | $ | 56,963 | $ | 28,494 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||
Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations | Minimum commitments under non-cancelable operating leases and capital lease and technology license obligations as of December 31, 2014 are as follows: | ||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
2015 | $ | 24,491 | $ | 7,174 | $ | 31,665 | |||||||
2016 | 16,303 | 8,680 | 24,983 | ||||||||||
2017 | 7,353 | 8,731 | 16,084 | ||||||||||
2018 | - | 8,929 | 8,929 | ||||||||||
2019 | - | 8,847 | 8,847 | ||||||||||
2020 thereafter | - | 23,135 | 23,135 | ||||||||||
$ | 48,147 | $ | 65,496 | $ | 113,643 | ||||||||
Less: Interest component (3.75% annual rate) | 2,251 | ||||||||||||
Present value of minimum lease payment | 45,896 | ||||||||||||
Current portion of the obligations | $ | 23,002 | |||||||||||
Long-term portion of obligations | $ | 22,894 | |||||||||||
Selected_Quarterly_Consolidate1
Selected Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Consolidated Financial Data | 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, 2014 and 2013. 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. | |||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Dec.31 | Sep.30 | Jun.30 | Mar.31 | Dec.31 | Sep.30 | Jun.30 | Mar.31 | |||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 101,223 | $ | 97,833 | $ | 90,681 | $ | 83,241 | $ | 81,135 | $ | 79,124 | $ | 74,204 | $ | 69,530 | ||||||||||||||||
Cost of revenue | 38,402 | 35,710 | 33,897 | 30,350 | 29,059 | 28,516 | 30,945 | 26,159 | ||||||||||||||||||||||||
Gross profit | 62,821 | 62,123 | 56,784 | 52,891 | 52,076 | 50,608 | 43,259 | 43,371 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Research and development | 55,108 | 40,459 | 38,834 | 37,289 | 36,127 | 33,630 | 32,424 | 32,415 | ||||||||||||||||||||||||
Sales, general and administrative | 19,314 | 18,141 | 17,017 | 15,932 | 17,871 | 14,833 | 16,144 | 15,240 | ||||||||||||||||||||||||
Total operating expenses | 74,422 | 58,600 | 55,851 | 53,221 | 53,998 | 48,463 | 48,568 | 47,655 | ||||||||||||||||||||||||
Income (loss) from operations | (11,601 | ) | 3,523 | 933 | (330 | ) | (1,922 | ) | 2,145 | (5,309 | ) | (4,284 | ) | |||||||||||||||||||
Other income (expense), net: | ||||||||||||||||||||||||||||||||
Interest expense | (293 | ) | (387 | ) | (333 | ) | (459 | ) | (395 | ) | (390 | ) | (375 | ) | (342 | ) | ||||||||||||||||
Change in estimated fair value of notes payable and other | - | (103 | ) | (13,927 | ) | (858 | ) | - | - | - | - | |||||||||||||||||||||
Other, net | (313 | ) | (116 | ) | (53 | ) | 135 | (74 | ) | (126 | ) | (418 | ) | (261 | ) | |||||||||||||||||
Total other expense, net | (606 | ) | (606 | ) | (14,313 | ) | (1,182 | ) | (469 | ) | (516 | ) | (793 | ) | (603 | ) | ||||||||||||||||
Income (loss) before income taxes | (12,207 | ) | 2,917 | (13,380 | ) | (1,512 | ) | (2,391 | ) | 1,629 | (6,102 | ) | (4,887 | ) | ||||||||||||||||||
Provision for income taxes | 268 | 811 | 311 | 243 | 120 | 714 | 677 | 426 | ||||||||||||||||||||||||
Net income (loss) | (12,475 | ) | 2,106 | (13,691 | ) | (1,755 | ) | (2,511 | ) | 915 | (6,779 | ) | (5,313 | ) | ||||||||||||||||||
Net loss attributable to non-controlling interest | (444 | ) | (3,327 | ) | (2,647 | ) | (4,102 | ) | (2,698 | ) | (3,421 | ) | (2,475 | ) | (2,129 | ) | ||||||||||||||||
Net income (loss) attributable to the Company | $ | (12,031 | ) | $ | 5,433 | $ | (11,044 | ) | $ | 2,347 | $ | 187 | $ | 4,336 | $ | (4,304 | ) | $ | (3,184 | ) | ||||||||||||
Earnings per share attributable to the Company: | ||||||||||||||||||||||||||||||||
Net income (loss) per common share, basic | $ | (0.22 | ) | $ | 0.1 | $ | (0.21 | ) | $ | 0.04 | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
Net income (loss) per common share, diluted | $ | (0.22 | ) | $ | 0.1 | $ | (0.21 | ) | $ | 0.04 | $ | 0 | $ | 0.08 | $ | (0.08 | ) | $ | (0.06 | ) | ||||||||||||
· | Research and development expense included expenses from the VIE of $4.2 million, $4.7 million, $4.8 million and $5.7 million for the quarters ended March 31, June 30, September 30 and December 31, 2014, respectively; and $3.6 million, $3.5 million, $4.5 million and $3.1 million for the quarters ended March 31, June 30, September 30 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||
· | Research and development expense for the quarter ended December 31, 2014 include stock-based compensation expense and related taxes associated to the VIE of $8.8 million. | |||||||||||||||||||||||||||||||
· | Sales, general and administrative expense included expense from the VIE of $0.3 million, $0.3 million, $0.9 million and $0.6 million for the quarters ended March 31, June 30, September 30 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||||
· | Sales, general and administrative expense for the quarter ended December 31, 2014 include stock-based compensation expense and related taxes associated to the VIE of $1.1 million. | |||||||||||||||||||||||||||||||
· | A charge related to the change in estimated fair value of convertible notes and derivative feature of convertible security held by non-controlling interest of the VIE was recorded in the amount of $0.9 million, $13.9 million and $0.1 million for the quarters ended March 31, June 30 and September 30, 2014, respectively. | |||||||||||||||||||||||||||||||
· | Sales, general and administrative expense for the quarter ended June 30, 2013 included 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. | |||||||||||||||||||||||||||||||
· | Research and development expense for the quarter ended December 31, 2013 included additional amortization expense of $2.9 million resulting from the change in estimated useful lives of certain intangible assets. | |||||||||||||||||||||||||||||||
· | Sales, general and administrative expense for the quarter ended December 31, 2013 included 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, 2014 | |
Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 12 months |
Minimum | Software, Design Tools, Computer and Other Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 1 year |
Minimum | Test Equipment and Mask Costs | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 1 year |
Minimum | Furniture, Office Equipment and Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 1 year |
Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 24 months |
Maximum | Software, Design Tools, Computer and Other Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 5 years |
Maximum | Test Equipment and Mask Costs | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 3 years |
Maximum | Furniture, Office Equipment and Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated Useful Lives, years | 5 years |
Organization_and_Significant_A4
Organization and Significant Accounting Policies (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization And Significant Accounting Policies [Line Items] | |||
Percentage of total net revenue | 10.00% | 10.00% | 10.00% |
Warranty period | 1 year | ||
Advertising costs | $1.80 | $1.40 | $0.90 |
Sales Revenue, Net | Customer Concentration Risk | Original Equipment Manufacturers | |||
Organization And Significant Accounting Policies [Line Items] | |||
Percentage of total net revenue | 44.40% | ||
Sales Revenue, Net | Customer Concentration Risk | Customer E | |||
Organization And Significant Accounting Policies [Line Items] | |||
Percentage of total net revenue | 18.60% | 24.30% | |
Minimum | |||
Organization And Significant Accounting Policies [Line Items] | |||
Depreciation period | 12 months | ||
Maximum | |||
Organization And Significant Accounting Policies [Line Items] | |||
Depreciation period | 24 months |
Organization_and_Significant_A5
Organization and Significant Accounting Policies (Percentage of Gross Accounts Receivable) (Detail) (Accounts Receivable, Customer Concentration Risk) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer A | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of gross accounts receivable | 12.00% | 13.00% |
Customer B | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of gross accounts receivable | 13.00% | |
Customer C | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of gross accounts receivable | 21.00% | |
Customer D | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of gross accounts receivable | 11.00% | 10.00% |
Organization_and_Significant_A6
Organization and Significant Accounting Policies (Percentage of Gross Accounts Receivable) (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Customer B | |
Accounts Notes And Loans Receivable [Line Items] | |
Concentration of accounts receivable | Represents less than 10% of the gross accounts receivable for the respective period end. |
Customer C | |
Accounts Notes And Loans Receivable [Line Items] | |
Concentration of accounts receivable | Represents less than 10% of the gross accounts receivable for the respective period end. |
Net_Loss_Per_Common_Share_Basi
Net Loss Per Common Share (Basic and Diluted Net Loss Per Common Share) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net loss attributable to the Company | ($12,031) | $5,433 | ($11,044) | $2,347 | $187 | $4,336 | ($4,304) | ($3,184) | ($15,295) | ($2,965) | ($112,632) |
Weighted average common shares outstanding - basic | 53,451 | 51,596 | 49,886 | ||||||||
Weighted average common shares outstanding - diluted | 53,451 | 51,596 | 49,886 | ||||||||
Net loss per common share, basic | ($0.22) | $0.10 | ($0.21) | $0.04 | $0 | $0.08 | ($0.08) | ($0.06) | ($0.29) | ($0.06) | ($2.26) |
Net loss per common share, diluted | ($0.22) | $0.10 | ($0.21) | $0.04 | $0 | $0.08 | ($0.08) | ($0.06) | ($0.29) | ($0.06) | ($2.26) |
Net_Loss_Per_Common_Share_Summ
Net Loss Per Common Share (Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Loss Per Common Share) (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Options To Purchase Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per common share | 2,626 | 3,552 | 4,198 |
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 | 2,465 | 1,776 | 1,824 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (Fair Value, Inputs, Level 1, USD $) | Dec. 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 | $93.20 | $94.20 |
Balance_Sheet_Components_Inven
Balance Sheet Components (Inventories) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Work-in-process | $37,207 | $35,027 |
Finished goods | 14,715 | 10,741 |
Inventories Total | $51,922 | $45,768 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment, Net) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $106,777 | $70,340 |
Less: accumulated depreciation and amortization | -49,814 | -41,846 |
Property and equipment, net | 56,963 | 28,494 |
Test Equipment and Mask Costs | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 50,591 | 34,457 |
Software, Design Tools, Computer and Other Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 53,686 | 34,945 |
Furniture, Office Equipment and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $2,500 | $938 |
Balance_Sheet_Components_Narra
Balance Sheet Components (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $19,500,000 | $17,700,000 | $14,800,000 |
Property and equipment, gross | 106,777,000 | 70,340,000 | |
Depreciation and amortization | 34,087,000 | 40,993,000 | 31,972,000 |
Property and equipment, net | 56,963,000 | 28,494,000 | |
Capital lease and certain financing arrangements | 35,800,000 | 16,200,000 | |
Capital lease, payable in monthly installments | 28,500,000 | ||
Capital lease maturity date | 31-Aug-17 | ||
Amortization expense related to assets under capital lease and certain financing arrangements | 9,500,000 | 6,500,000 | 4,800,000 |
Masks | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 5,900,000 | 3,600,000 | 4,800,000 |
Depreciation and amortization | 2,600,000 | 4,500,000 | 4,200,000 |
Property and equipment, net | $5,600,000 | $2,300,000 |
Balance_Sheet_Components_Other
Balance Sheet Components (Other Accrued Expenses and Other Current Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation and related benefits | $4,855 | $4,262 |
Professional fees | 1,029 | 1,536 |
Accrued royalty | 638 | 529 |
Deferred tax liability | 14 | 277 |
Income tax payable | 451 | 544 |
Accrued interest | 110 | 453 |
Customer deposits | 83 | 1,470 |
Other | 602 | 765 |
Accrued expenses and other current liabilities | $7,782 | $9,836 |
Balance_Sheet_Components_Warra
Balance Sheet Components (Warranty Accrual) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranty Accrual, Balance Sheet Classification [Abstract] | |||
Beginning balance | $167 | $440 | $412 |
Accruals and adjustments | 679 | 206 | 467 |
Settlements | -619 | -479 | -439 |
Ending balance | $227 | $167 | $440 |
Balance_Sheet_Components_Defer
Balance Sheet Components (Deferred Revenue) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $6,285 | $8,669 |
Service / Support and Maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 5,769 | 5,326 |
Software License / Subscription | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 516 | 1,176 |
Distributor Deferred Margin | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $2,167 |
Balance_Sheet_Components_Other1
Balance Sheet Components (Other Non-Current Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Noncurrent [Abstract] | ||
Accrued rent | $1,324 | $1,034 |
Income tax payable | 941 | 698 |
Other | 666 | 612 |
Other non-current liabilities | $2,931 | $2,344 |
Business_Combinations_and_Dive2
Business Combinations and Divestitures (Narrative) (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||
Jan. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | Jul. 30, 2014 | Oct. 31, 2014 | Oct. 08, 2014 | |
Business Acquisition [Line Items] | |||||||||||||||||
Cash advances in exchange for notes | $62,800,000 | ||||||||||||||||
Convertible notes receivable maturity, Month and Year | 2016-01 | ||||||||||||||||
Convertible note to third party investor paid by Variable Interest Entity | 29,800,000 | 1,000,000 | |||||||||||||||
Convertible notes exchanged | 1,400,000 | 1,400,000 | |||||||||||||||
Cash proceeds from convertible debt | 1,500,000 | ||||||||||||||||
Notes payable and other | 13,512,000 | 13,512,000 | 5,012,000 | ||||||||||||||
Change in estimated fair value of notes payable and other | 103,000 | 13,927,000 | 858,000 | 14,888,000 | |||||||||||||
Variable Interest Entity, property and equipment and intangible assets | 56,963,000 | 28,494,000 | 56,963,000 | 28,494,000 | |||||||||||||
Non-controlling interest | -11,753,000 | -11,753,000 | |||||||||||||||
Net income (loss) attributable to the Company | -12,031,000 | 5,433,000 | -11,044,000 | 2,347,000 | 187,000 | 4,336,000 | -4,304,000 | -3,184,000 | -15,295,000 | -2,965,000 | -112,632,000 | ||||||
Variable Interest Entity, stock-based compensation and related taxes | 52,459,000 | 34,598,000 | 37,196,000 | ||||||||||||||
Proceeds received from disposition of certain consumer product assets | 3,300,000 | 2,400,000 | 1,000,000 | 1,000,000 | |||||||||||||
Gain (loss) on disposition of certain consumer product assets | 2,700,000 | 1,000,000 | 1,000,000 | -2,728,000 | |||||||||||||
Net book value of assets held for sale | 2,600,000 | ||||||||||||||||
Gain on sale of held for sale assets | 700,000 | 747,000 | |||||||||||||||
Subsequent Event | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash advances in exchange for notes | 6,000,000 | ||||||||||||||||
Interest rate on notes receivable | 6.00% | ||||||||||||||||
Variable Interest Entity | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Notes payable and other | 13,500,000 | 13,500,000 | |||||||||||||||
Variable Interest Entity, cash | 400,000 | 1,900,000 | 400,000 | 1,900,000 | |||||||||||||
Variable Interest Entity, property and equipment and intangible assets | 8,700,000 | 6,700,000 | 8,700,000 | 6,700,000 | |||||||||||||
Variable Interest Entity, accounts payable and accrued expenses | 2,600,000 | 3,400,000 | 2,600,000 | 3,400,000 | |||||||||||||
Capital lease and technology license obligations | 2,800,000 | 6,300,000 | 2,800,000 | 6,300,000 | |||||||||||||
Net income (loss) attributable to the Company | 44,000,000 | 5,200,000 | 3,200,000 | ||||||||||||||
Variable Interest Entity, stock-based compensation and related taxes | 9,900,000 | ||||||||||||||||
Xpliant | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Amount of consideration in exchange for all securities of the acquired company | 3,600,000 | ||||||||||||||||
Business combination agreement date | 30-Jul-14 | ||||||||||||||||
Original transaction agreement amended date | 8-Oct-14 | ||||||||||||||||
Merger closing date | 15-Apr-15 | ||||||||||||||||
Cash consideration to settle the non-controlling interest convertible notes and convertible security holder | 30,800,000 | ||||||||||||||||
Cash bonus to employees | 1,700,000 | ||||||||||||||||
Share issued under merger agreement | 193,000 | ||||||||||||||||
Fair value of shares issued under merger agreement | 8,700,000 | ||||||||||||||||
Derivative Feature Of Convertible Security | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Convertible note to third party investor paid by Variable Interest Entity | 5,800,000 | ||||||||||||||||
Notes payable and other | 2,900,000 | 2,900,000 | |||||||||||||||
Change in estimated fair value of notes payable and other | 2,900,000 | ||||||||||||||||
Nine Convertible Notes Receivable | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash advances in exchange for notes | 10,000,000 | ||||||||||||||||
Interest rate on notes receivable | 6.00% | ||||||||||||||||
Convertible notes receivable maturity date | 31-Aug-14 | ||||||||||||||||
Promissory Notes | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash advances in exchange for notes | 52,800,000 | ||||||||||||||||
Promissory Notes Mature April 2015 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Convertible notes receivable maturity, Month and Year | 2015-04 | ||||||||||||||||
Promissory Notes Mature December 2015 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Convertible notes receivable maturity, Month and Year | 2015-12 | ||||||||||||||||
Fifteen Convertible Notes Receivable | Non-controlling Interest | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash advances in exchange for notes | 13,000,000 | ||||||||||||||||
Interest rate on notes receivable | 6.00% | ||||||||||||||||
Convertible notes receivable maturity date | 31-Aug-14 | ||||||||||||||||
Convertible note to third party investor paid by Variable Interest Entity | $1,000,000 |
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 | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Variable Interest Entity [Line Items] | |||||
Beginning balance | $13,512 | $13,512 | $5,012 | ||
Additions | 1,400 | 9,500 | |||
Change in estimated fair value of notes payable and other | 103 | 13,927 | 858 | 14,888 | |
Payment of notes payable and other to non-controlling interest of the VIE | -29,800 | -1,000 | |||
Ending balance | 13,512 | ||||
Convertible Notes | |||||
Variable Interest Entity [Line Items] | |||||
Beginning balance | 10,612 | 10,612 | 5,012 | ||
Additions | 1,400 | 8,000 | |||
Exchange | -1,400 | ||||
Change in estimated fair value of notes payable and other | 11,988 | ||||
Payment of notes payable and other to non-controlling interest of the VIE | -24,000 | -1,000 | |||
Ending balance | 10,612 | ||||
Derivative Feature Of Convertible Security | |||||
Variable Interest Entity [Line Items] | |||||
Beginning balance | 2,900 | 2,900 | |||
Additions | 1,500 | ||||
Exchange | 1,400 | ||||
Change in estimated fair value of notes payable and other | 2,900 | ||||
Payment of notes payable and other to non-controlling interest of the VIE | -5,800 | ||||
Ending balance | $2,900 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $71,478 | $71,478 | |
Goodwill impairment | 27,680 | ||
Amortization expense | 14,600 | 23,300 | 17,200 |
Amortization expense due to change in estimated useful lives | 6,200 | ||
Earnings per share attributable to the company | $0.12 | ||
Write-down of intangible assets | $0 | $0 | $5,570 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net (Intangible Assets, Net) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | $118,014 | $122,188 |
Finite-lived intangible assets, Accumulated Amortization | -80,370 | -78,948 |
Finite-lived intangible assets, Net | 37,644 | 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 | 64,002 | 68,175 |
Finite-lived intangible assets, Accumulated Amortization | -28,247 | -32,015 |
Finite-lived intangible assets, Net | 35,755 | 36,160 |
Weighted average remaining amortization period (years) | 7 years 26 days | 7 years 10 months 17 days |
Existing and core technology - product | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | 42,085 | 42,086 |
Finite-lived intangible assets, Accumulated Amortization | -40,264 | -35,637 |
Finite-lived intangible assets, Net | 1,821 | 6,449 |
Weighted average remaining amortization period (years) | 1 year 4 months 21 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 | -8,965 | -8,827 |
Finite-lived intangible assets, Net | 26 | 164 |
Weighted average remaining amortization period (years) | 9 months 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 | -2,254 | -1,829 |
Finite-lived intangible assets, Net | 42 | 467 |
Weighted average remaining amortization period (years) | 2 months 1 day | 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) |
Weighted average remaining amortization period (years) | 0 years | 0 years |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net (Estimated Future Amortization Expense from Amortizable Intangible Assets) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2015 | $8,740 | |
2016 | 6,592 | |
2017 | 4,601 | |
2018 | 3,558 | |
2019 | 3,462 | |
2020 and thereafter | 10,691 | |
Finite-lived intangible assets, Net | $37,644 | $43,240 |
Restructuring_Accrual_Narrativ
Restructuring Accrual (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost And Reserve [Line Items] | ||
Lease expiration period | 31-Aug-17 | |
Excess Facility Related Cost | ||
Restructuring Cost And Reserve [Line Items] | ||
Lease expiration period | 31-Dec-14 | |
Additional restructuring accrual | $0.20 | |
Severance And Other Benefits | ||
Restructuring Cost And Reserve [Line Items] | ||
Additional restructuring accrual | $1.40 | $1.40 |
Restructuring_Accrual_Accrued_
Restructuring Accrual (Accrued Restructuring Liabilities Including Related Activities) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost And Reserve [Line Items] | ||
Accrued restructuring at beginning of the period | $57 | $262 |
Additions | 1,580 | 1,371 |
Cash payments | -1,637 | -1,576 |
Accrued restructuring at end of the period | 57 | |
Severance And Other Benefits | ||
Restructuring Cost And Reserve [Line Items] | ||
Additions | 1,394 | 1,371 |
Cash payments | -1,394 | -1,371 |
Excess Facility Related Cost | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued restructuring at beginning of the period | 57 | 262 |
Additions | 186 | |
Cash payments | -243 | -205 |
Accrued restructuring at end of the period | $57 |
Equity_Narrative_Detail
Equity (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | |
Compensation expense vesting period (in years) | 1 year | ||
Unvested shares (Outstanding) | 0 | 0 | |
Aggregate intrinsic value | $36,200,000 | $16,000,000 | $12,600,000 |
Estimated weighted-average grant date fair value of options granted | $14.63 | $14.91 | $14.79 |
RSU's granted | 2,700,000 | ||
Stock-based compensation expense | 52,459,000 | 34,598,000 | 37,196,000 |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost, net of estimated forfeitures | 4,300,000 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 2 years 2 months 9 days | ||
Total intrinsic value of the RSU's issued at period end | 134,900,000 | ||
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 | 8,315,963 | ||
Number of Shares Outstanding, Options granted | 15,080,081 | ||
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 | 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 | ||
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 | ||
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 | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost, net of estimated forfeitures | 72,700,000 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 2 years 7 months 10 days | ||
RSU's granted | 1,500,000 | ||
Stock-based compensation expense | $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 $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | 4,197,704 | 4,651,720 |
Number of Shares Outstanding, Options granted | 165,000 | 242,375 | 354,834 |
Number of Shares Outstanding, Options exercised | -1,082,914 | -723,047 | -645,104 |
Number of Shares Outstanding, Options cancelled and forfeited | -8,042 | -164,816 | -163,746 |
Number of Shares Outstanding, Ending balance | 2,626,260 | 3,552,216 | 4,197,704 |
Weighted Average Exercise Price, Beginning balance | $17.79 | $16.83 | $12.34 |
Weighted Average Exercise Price, Options granted | $38.78 | $37.15 | $33.69 |
Weighted Average Exercise Price, Options exercised | $14.05 | $14.95 | $12.87 |
Weighted Average Exercise Price, Options cancelled and forfeited | $28.46 | $34.36 | $23.89 |
Weighted Average Exercise Price, Ending balance | $20.62 | $17.79 | $16.83 |
Recovered_Sheet1
Equity (Summary Of Stock Options Outstanding) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercisable Options, Number of Shares | 2,305,718 |
Exercisable Options, Weighted Average Exercise Price | $18.25 |
Exercisable, Weighted Average Remaining Contractual Term | 1 year 11 months 5 days |
Exercisable, Aggregate Intrinsic Value | $100,451,953 |
Outstanding Options, Vested and expected to vest, Number of Shares | 2,595,621 |
Outstanding Options, Vested and expected to vest, Weighted Average Remaining Contractual Term | 2 years 3 months 18 days |
Outstanding Options, Vested and expected to vest, Weighted Average Exercise price | $20.42 |
Vested and expected to vest, Aggregate Intrinsic Value | 107,457,968 |
1.02 - 1.02 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Prices, lower range limit | $1.02 |
Exercise Prices, upper range limit | $1.02 |
Outstanding Options, Number of Shares | 10,501 |
Outstanding Options, Weighted Average Remaining Contractual Term | 7 months 2 days |
Outstanding Options, Weighted Average Exercise Price | $1.02 |
Exercisable Options, Number of Shares | 10,501 |
Exercisable Options, Weighted Average Exercise Price | $1.02 |
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 | 404,372 |
Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 2 months 19 days |
Outstanding Options, Weighted Average Exercise Price | $3.04 |
Exercisable Options, Number of Shares | 404,372 |
Exercisable Options, Weighted Average Exercise Price | $3.04 |
5.42 - 8.52 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Prices, lower range limit | $5.42 |
Exercise Prices, upper range limit | $8.52 |
Outstanding Options, Number of Shares | 51,345 |
Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 5 months 23 days |
Outstanding Options, Weighted Average Exercise Price | $7.73 |
Exercisable Options, Number of Shares | 51,345 |
Exercisable Options, Weighted Average Exercise Price | $7.73 |
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 | 562,581 |
Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 1 month 6 days |
Outstanding Options, Weighted Average Exercise Price | $10.32 |
Exercisable Options, Number of Shares | 562,581 |
Exercisable Options, Weighted Average Exercise Price | $10.32 |
12.56 - 19.01 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Prices, lower range limit | $12.56 |
Exercise Prices, upper range limit | $19.01 |
Outstanding Options, Number of Shares | 365,179 |
Outstanding Options, Weighted Average Remaining Contractual Term | 6 months 11 days |
Outstanding Options, Weighted Average Exercise Price | $15.54 |
Exercisable Options, Number of Shares | 365,179 |
Exercisable Options, Weighted Average Exercise Price | $15.54 |
20.08 - 25.17 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Prices, lower range limit | $20.08 |
Exercise Prices, upper range limit | $25.17 |
Outstanding Options, Number of Shares | 319,739 |
Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 26 days |
Outstanding Options, Weighted Average Exercise Price | $23.89 |
Exercisable Options, Number of Shares | 319,739 |
Exercisable Options, Weighted Average Exercise Price | $23.89 |
25.23 - 37.22 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Prices, lower range limit | $25.23 |
Exercise Prices, upper range limit | $37.22 |
Outstanding Options, Number of Shares | 501,668 |
Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 8 months 23 days |
Outstanding Options, Weighted Average Exercise Price | $35.06 |
Exercisable Options, Number of Shares | 428,780 |
Exercisable Options, Weighted Average Exercise Price | $34.89 |
37.63 - 50.83 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Prices, lower range limit | $37.63 |
Exercise Prices, upper range limit | $50.83 |
Outstanding Options, Number of Shares | 410,875 |
Outstanding Options, Weighted Average Remaining Contractual Term | 5 years 4 months 28 days |
Outstanding Options, Weighted Average Exercise Price | $38.49 |
Exercisable Options, Number of Shares | 163,221 |
Exercisable Options, Weighted Average Exercise Price | $39.03 |
1.02 - 50.83 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise Prices, lower range limit | $1.02 |
Exercise Prices, upper range limit | $50.83 |
Outstanding Options, Number of Shares | 2,626,260 |
Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 4 months 2 days |
Outstanding Options, Weighted Average Exercise Price | $20.62 |
Exercisable Options, Number of Shares | 2,305,718 |
Exercisable Options, Weighted Average Exercise Price | $18.25 |
Aggregate Intrinsic Value | $108,199,870 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.26% | 0.32% | 0.57% |
Risk-free interest rate, maximum | 1.47% | 1.04% | 1.55% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility, minimum | 43.80% | 4.80% | 51.30% |
Volatility, maximum | 45.10% | 49.60% | 57.30% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life, years | 3 years 9 months 7 days | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
2007 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Beginning balance | 1,776,170 | 1,823,563 | 1,952,605 |
Number of Shares, Granted | 1,970,094 | 1,119,570 | 1,165,136 |
Number of Shares, Issued and released | -1,154,123 | -867,213 | -882,535 |
Number of Shares, Cancelled and forfeited | -127,394 | -299,750 | -411,643 |
Number of Shares, Ending balance | 2,464,747 | 1,776,170 | 1,823,563 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $35.64 | $33.17 | $30.33 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $41.32 | $36.32 | $34.23 |
Weighted-Average Grant Date Fair Value Per Share, Issued and released | $37.55 | $32.46 | $29.34 |
Weighted-Average Grant Date Fair Value Per Share, Cancelled and forfeited | $37.05 | $32.29 | $30.90 |
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $39.21 | $35.64 | $33.17 |
Equity_Detail_of_StockBased_Co
Equity (Detail of Stock-Based Compensation Expense) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $52,459,000 | $34,598,000 | $37,196,000 |
Cost of revenue | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 954,000 | 951,000 | 1,954,000 |
Research and development | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 32,328,000 | 18,577,000 | 16,729,000 |
Sales, general and administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $19,177,000 | $15,070,000 | $18,513,000 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes and Effective Tax Rates) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Loss before income taxes | ($12,207) | $2,917 | ($13,380) | ($1,512) | ($2,391) | $1,629 | ($6,102) | ($4,887) | ($24,182) | ($11,751) | ($77,342) |
Provision for income taxes | $268 | $811 | $311 | $243 | $120 | $714 | $677 | $426 | $1,633 | $1,937 | $36,321 |
Effective tax rate | -6.80% | -16.50% | -47.00% |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | ($42,318) | ($20,066) | ($63,739) | ||||||||
Foreign | 18,136 | 8,315 | -13,603 | ||||||||
Loss before income taxes | ($12,207) | $2,917 | ($13,380) | ($1,512) | ($2,391) | $1,629 | ($6,102) | ($4,887) | ($24,182) | ($11,751) | ($77,342) |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Current tax provision (benefit), Domestic | $19 | $10 | ($320) | ||||||||
Current tax provision (benefit), Foreign | 1,230 | 1,123 | 1,085 | ||||||||
Current tax provision (benefit), total | 1,249 | 1,133 | 765 | ||||||||
Deferred tax provision (benefit), Domestic | 627 | 713 | 35,344 | ||||||||
Deferred tax provision (benefit), Foreign | -243 | 91 | 212 | ||||||||
Deferred tax provision (benefit), total | 384 | 804 | 35,556 | ||||||||
Provision for (benefit from) income taxes | $268 | $811 | $311 | $243 | $120 | $714 | $677 | $426 | $1,633 | $1,937 | $36,321 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income tax at statutory rate | 35.00% | 35.00% | 35.00% |
Stock compensation costs | 5.60% | 1.80% | -1.10% |
Other | 0.60% | 1.50% | 0.30% |
Convertible securities | -4.20% | ||
State taxes, net of federal benefit | -0.40% | -1.60% | -0.90% |
Foreign income inclusion in the U.S. | -0.50% | -3.80% | -0.40% |
Research and development credits | 24.20% | 48.00% | |
Foreign tax rate differential | 19.60% | 46.70% | -8.80% |
Change in valuation allowance | -86.70% | -144.10% | -58.60% |
Goodwill impairment | -12.50% | ||
Effective tax rate | -6.80% | -16.50% | -47.00% |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferrred Tax Assets and Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, Tax credits | $38,354 | $28,758 |
Deferred tax assets, Net operating loss carryforwards | 44,975 | 36,645 |
Deferred tax assets, Capitalized research and development | 4,652 | 10 |
Intangible assets | 3,881 | 1,627 |
Depreciation and amortization | 1,355 | |
Deferred tax assets, Stock compensation | 9,893 | 9,035 |
Deferred tax assets, Other | 2,832 | 4,118 |
Gross deferred tax assets | 105,942 | 80,193 |
Less: valuation allowance | -105,638 | -79,928 |
Net deferred tax assets | 304 | 265 |
Deferred tax liabilities, Intangible assets | -2,836 | |
Depreciation and amortization | -1,254 | |
Deferred tax liabilities, Other | -1,158 | |
Net deferred tax liabilities | -2,532 | -2,147 |
Deferred tax assets, non-current | 318 | 61 |
Deferred tax liabilities, current | -14 | -277 |
Deferred tax liabilities, non-current | ($2,836) | ($1,931) |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Line Items] | ||
Stock-based compensation, stock option benefits recorded to equity | $59.10 | |
Tax credit carryforwards, various miscellaneous | 0.9 | |
Net operating losses and research credits | 28 | |
Undistributed earnings of foreign subsidiary | 4.5 | 1.1 |
Unrecognized tax benefit that would impact effective tax rate | 0.9 | |
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 | 2.3 | |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 315.6 | |
Net operating loss carryforwards, expire year | 1-Jan-20 | |
Tax credit carryforwards, research and development | 32.3 | |
Tax credit carryforwards, expire year | 1-Jan-20 | |
State | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 200.4 | |
Net operating loss carryforwards, expire year | 1-Jan-15 | |
Tax credit carryforwards, research and development | 28.4 | |
Tax credit carryforwards, expire year | 1-Jan-16 | |
Excess windfall deduction | Federal | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 152.3 | |
Excess windfall deduction | State | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | $92.90 |
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, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of the year | $14,625 | $12,749 |
Gross increases (decreases) related to prior year's tax positions | 199 | -526 |
Gross increases related to current year's tax positions | 1,446 | 2,402 |
Balance at the end of the year | $16,270 | $14,625 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Line Items] | |||||||||||
Provision for (benefit from) Singapore entity in the consolidated statement of operations | $268 | $811 | $311 | $243 | $120 | $714 | $677 | $426 | $1,633 | $1,937 | $36,321 |
SINGAPORE | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Provision for Singapore entity at statutory tax rate of 17% | 719 | 615 | 351 | ||||||||
Provision for (benefit from) Singapore entity in the consolidated statement of operations | 303 | -209 | 351 | ||||||||
Benefit from preferential tax rate differential | ($416) | ($824) | |||||||||
Impact of tax benefits per basic and diluted share | ($0.01) | ($0.02) |
Income_Taxes_Benefits_from_the1
Income Taxes (Benefits from the Reduced Tax Rate (Parenthetical)) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | |||
Income tax at statutory rate | 35.00% | 35.00% | 35.00% |
SINGAPORE | |||
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation And Retirement Disclosure [Abstract] | |||
Matching contribution by employer percentage | 50.00% | ||
Employer defined contribution on per employee | $2,000 | ||
Defined contribution (401K match) for the period | 1,000,000 | 800,000 | 700,000 |
Long-term liabilities on defined benefit plan | $500,000 | $400,000 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - (Narrative) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 1 | ||
Sales Revenue, Services, Net | Minimum | |||
Segment Reporting Information [Line Items] | |||
Percentage of total net revenue | 10.00% | 10.00% | 10.00% |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Net Revenue by Markets) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $101,223 | $97,833 | $90,681 | $83,241 | $81,135 | $79,124 | $74,204 | $69,530 | $372,978 | $303,993 | $235,480 |
Enterprise Network, Data Center and Access and Service Provider Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 341,056 | 259,860 | 184,437 | ||||||||
Broadband and Consumer Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $31,922 | $44,133 | $51,043 |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Net Revenue by Geography) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $101,223 | $97,833 | $90,681 | $83,241 | $81,135 | $79,124 | $74,204 | $69,530 | $372,978 | $303,993 | $235,480 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 111,997 | 90,537 | 66,839 | ||||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 93,045 | 77,965 | 65,898 | ||||||||
Finland | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 44,976 | 17,767 | 2,399 | ||||||||
Taiwan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 29,229 | 26,023 | 25,204 | ||||||||
Korea | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 28,665 | 30,003 | 16,899 | ||||||||
Mexico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 27,184 | 22,572 | 9,954 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 6,046 | 9,231 | 15,820 | ||||||||
Malaysia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 9,059 | 14,789 | 16,021 | ||||||||
Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $22,777 | $15,106 | $16,446 |
Segment_and_Geographic_Informa5
Segment and Geographic Information (Long Lived Assets) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $56,963 | $28,494 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 49,856 | 25,160 |
All Other Countries | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $7,107 | $3,334 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jan. 31, 2014 | Sep. 30, 2013 |
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||
Lease expiration period | 31-Aug-17 | |||||
Operating leases, rent expense | $6.40 | $5.10 | $5.40 | |||
VIE | ||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||
Long-term purchase commitment, amount | 4 | 1 | 6.1 | |||
Settlement agreement payment frequency installment period | 2 years | 2 years | ||||
Remaining liability related to purchase agreements | 2.6 | |||||
Capital Lease | ||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||
Lease expiration period | 31-Aug-17 | |||||
Long-term purchase commitment, amount | $28.50 | |||||
Purchase agreement description | Company entered into a new purchase agreement with a third party vendor for $28.5 million, payable in installments that mature in August 2017 in exchange for certain design tools. | |||||
New San Jose California Lease | ||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||
Lease expiration period | 1-Oct-22 | |||||
San Jose California | ||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||
Lease expiration period | 1-Oct-22 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total capital lease, technology license and operating lease obligations | ||
Capital lease and technology license obligations | $23,002 | $17,103 |
Long-term portion of obligations | 22,894 | 16,292 |
2015 | 31,665 | |
2016 | 24,983 | |
2017 | 16,084 | |
2018 | 8,929 | |
2019 | 8,847 | |
2020 thereafter | 23,135 | |
Total | 113,643 | |
Capital Lease and Technology License Obligations | ||
Total capital lease, technology license and operating lease obligations | ||
2015 | 24,491 | |
2016 | 16,303 | |
2017 | 7,353 | |
Total | 48,147 | |
Less: Interest component (3.75% annual rate) | 2,251 | |
Present value of minimum lease payment | 45,896 | |
Capital lease and technology license obligations | 23,002 | |
Long-term portion of obligations | 22,894 | |
Operating Leases | ||
Total capital lease, technology license and operating lease obligations | ||
2015 | 7,174 | |
2016 | 8,680 | |
2017 | 8,731 | |
2018 | 8,929 | |
2019 | 8,847 | |
2020 thereafter | 23,135 | |
Total | $65,496 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations) (Parenthetical) (Detail) | Dec. 31, 2014 |
Commitments And Contingencies Disclosure [Abstract] | |
Interest component | 3.75% |
Selected_Quarterly_Consolidate2
Selected Quarterly Consolidated Financial Data (Unaudited) (Selected Quarterly Consolidated Financial Data) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $101,223 | $97,833 | $90,681 | $83,241 | $81,135 | $79,124 | $74,204 | $69,530 | $372,978 | $303,993 | $235,480 |
Cost of revenue | 38,402 | 35,710 | 33,897 | 30,350 | 29,059 | 28,516 | 30,945 | 26,159 | 138,359 | 114,679 | 102,602 |
Gross profit | 62,821 | 62,123 | 56,784 | 52,891 | 52,076 | 50,608 | 43,259 | 43,371 | 234,619 | 189,314 | 132,878 |
Research and development | 55,108 | 40,459 | 38,834 | 37,289 | 36,127 | 33,630 | 32,424 | 32,415 | 171,690 | 134,596 | 109,943 |
Sales, general and administrative | 19,314 | 18,141 | 17,017 | 15,932 | 17,871 | 14,833 | 16,144 | 15,240 | 70,404 | 64,088 | 71,794 |
Total operating expenses | 74,422 | 58,600 | 55,851 | 53,221 | 53,998 | 48,463 | 48,568 | 47,655 | 242,094 | 198,684 | 209,417 |
Income (loss) from operations | -11,601 | 3,523 | 933 | -330 | -1,922 | 2,145 | -5,309 | -4,284 | -7,475 | -9,370 | -76,539 |
Interest expense | -293 | -387 | -333 | -459 | -395 | -390 | -375 | -342 | -1,472 | -1,502 | -646 |
Change in estimated fair value of notes payable and other | -103 | -13,927 | -858 | -14,888 | |||||||
Other, net | -313 | -116 | -53 | 135 | -74 | -126 | -418 | -261 | -347 | -879 | -157 |
Total other expense, net | -606 | -606 | -14,313 | -1,182 | -469 | -516 | -793 | -603 | -16,707 | -2,381 | -803 |
Loss before income taxes | -12,207 | 2,917 | -13,380 | -1,512 | -2,391 | 1,629 | -6,102 | -4,887 | -24,182 | -11,751 | -77,342 |
Provision for income taxes | 268 | 811 | 311 | 243 | 120 | 714 | 677 | 426 | 1,633 | 1,937 | 36,321 |
Net loss | -12,475 | 2,106 | -13,691 | -1,755 | -2,511 | 915 | -6,779 | -5,313 | -25,815 | -13,688 | -113,663 |
Net loss attributable to non-controlling interest | -444 | -3,327 | -2,647 | -4,102 | -2,698 | -3,421 | -2,475 | -2,129 | -10,520 | -10,723 | -1,031 |
Net loss attributable to the Company | ($12,031) | $5,433 | ($11,044) | $2,347 | $187 | $4,336 | ($4,304) | ($3,184) | ($15,295) | ($2,965) | ($112,632) |
Net income (loss) per common share, basic | ($0.22) | $0.10 | ($0.21) | $0.04 | $0 | $0.08 | ($0.08) | ($0.06) | ($0.29) | ($0.06) | ($2.26) |
Net income (loss) per common share, diluted | ($0.22) | $0.10 | ($0.21) | $0.04 | $0 | $0.08 | ($0.08) | ($0.06) | ($0.29) | ($0.06) | ($2.26) |
Selected_Quarterly_Consolidate3
Selected Quarterly Consolidated Financial Data (Unaudited) (Selected Quarterly Consolidated Financial Data) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Research and development | $55,108,000 | $40,459,000 | $38,834,000 | $37,289,000 | $36,127,000 | $33,630,000 | $32,424,000 | $32,415,000 | $171,690,000 | $134,596,000 | $109,943,000 |
Stock-based compensation expense | 52,459,000 | 34,598,000 | 37,196,000 | ||||||||
Sales, general and administrative | 19,314,000 | 18,141,000 | 17,017,000 | 15,932,000 | 17,871,000 | 14,833,000 | 16,144,000 | 15,240,000 | 70,404,000 | 64,088,000 | 71,794,000 |
Change in estimated fair value of notes payable and other | -103,000 | -13,927,000 | -858,000 | -14,888,000 | |||||||
Contractual settlement | |||||||||||
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Sales, general and administrative | 1,300,000 | ||||||||||
Change in Estimated Useful Lives of Consumer Related Intangible Assets | |||||||||||
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Research and development | 2,900,000 | ||||||||||
Sales, general and administrative | 2,700,000 | ||||||||||
VIE | |||||||||||
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Research and development | 5,700,000 | 4,800,000 | 4,700,000 | 4,200,000 | 3,100,000 | 4,500,000 | 3,500,000 | 3,600,000 | |||
Sales, general and administrative | 600,000 | 900,000 | 300,000 | 300,000 | |||||||
Change in estimated fair value of notes payable and other | 100,000 | 13,900,000 | 900,000 | ||||||||
Research and development | |||||||||||
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Stock-based compensation expense | 32,328,000 | 18,577,000 | 16,729,000 | ||||||||
Research and development | VIE | |||||||||||
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Stock-based compensation expense | 8,800,000 | ||||||||||
Sales, general and administrative | |||||||||||
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Stock-based compensation expense | 19,177,000 | 15,070,000 | 18,513,000 | ||||||||
Sales, general and administrative | VIE | |||||||||||
Effect Of Fourth Quarter Events [Line Items] | |||||||||||
Stock-based compensation expense | $1,100,000 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $24 | $24 | $80 |
Additions | 1 | 3 | 42 |
Deductions | -1 | -3 | -98 |
Balance at end of period | 24 | 24 | 24 |
Allowance for Customer Returns | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 909 | 967 | 614 |
Additions | 3,716 | 2,752 | 3,786 |
Deductions | -3,507 | -2,810 | -3,433 |
Balance at end of period | 1,118 | 909 | 967 |
Income Tax Valuation Allowance | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 79,928 | 59,736 | 13,513 |
Additions | 25,710 | 20,192 | 46,223 |
Balance at end of period | $105,638 | $79,928 | $59,736 |