Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 28, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CAVM | |
Entity Registrant Name | CAVIUM, INC. | |
Entity Central Index Key | 1175609 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 55,306,980 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $121,025 | $131,718 |
Accounts receivable, net of allowances of $1,164 and $1,142, respectively | 56,817 | 48,199 |
Inventories | 52,312 | 51,922 |
Prepaid expenses and other current assets | 8,944 | 9,130 |
Total current assets | 239,098 | 240,969 |
Property and equipment, net | 58,828 | 56,963 |
Intangible assets, net | 37,532 | 37,644 |
Goodwill | 71,478 | 71,478 |
Other assets | 1,935 | 1,806 |
Total assets | 408,871 | 408,860 |
Current liabilities: | ||
Accounts payable | 25,100 | 26,447 |
Other accrued expenses and other current liabilities | 15,945 | 7,782 |
Deferred revenue | 6,047 | 6,285 |
Capital lease and technology license obligations | 16,324 | 23,002 |
Total current liabilities | 63,416 | 63,516 |
Capital lease and technology license obligations, net of current portion | 20,788 | 22,894 |
Deferred tax liability | 2,997 | 2,836 |
Other non-current liabilities | 2,819 | 2,931 |
Total liabilities | 90,020 | 92,177 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common stock, par value $0.001: 200,000,000 shares authorized; 55,306,980 and 54,458,288 shares issued and outstanding, respectively | 55 | 54 |
Additional paid-in capital | 505,039 | 488,981 |
Accumulated deficit | -186,243 | -172,352 |
Total stockholders' equity | 318,851 | 316,683 |
Total liabilities and stockholders' equity | $408,871 | $408,860 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Allowances for accounts receivable | $1,164 | $1,142 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 55,306,980 | 54,458,288 |
Common stock, shares outstanding | 55,306,980 | 54,458,288 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net revenue | $101,778 | $83,241 |
Cost of revenue | 35,799 | 30,350 |
Gross profit | 65,979 | 52,891 |
Operating expenses: | ||
Research and development | 58,422 | 37,289 |
Sales, general and administrative | 20,671 | 15,932 |
Total operating expenses | 79,093 | 53,221 |
Loss from operations | -13,114 | -330 |
Other income (expense), net: | ||
Interest expense | -410 | -459 |
Change in estimated fair value of notes payable and other | -858 | |
Other, net | -66 | 135 |
Total other expense, net | -476 | -1,182 |
Loss before income taxes | -13,590 | -1,512 |
Provision for income taxes | 301 | 243 |
Net loss | -13,891 | -1,755 |
Net loss attributable to non-controlling interest | -4,102 | |
Net income (loss) attributable to the Company | ($13,891) | $2,347 |
Earnings per share attributable to the Company: | ||
Net income (loss) per common share, basic | ($0.25) | $0.04 |
Shares used in computing basic net income (loss) per common share | 54,882 | 52,550 |
Net income (loss) per common share, diluted | ($0.25) | $0.04 |
Shares used in computing diluted net income (loss) per common share | 54,882 | 54,221 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($13,891) | ($1,755) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 11,699 | 9,587 |
Depreciation and amortization | 10,317 | 7,851 |
Deferred income taxes | 154 | 198 |
Change in estimated fair value of notes payable and other | 858 | |
Gain on disposition of certain consumer product assets | -400 | -250 |
Changes in assets and liabilities: | ||
Accounts receivable, net | -8,618 | -13,183 |
Inventories | -401 | -3,286 |
Prepaid expenses and other current assets | -814 | 659 |
Other assets | -120 | 18 |
Accounts payable | -2,247 | -1,127 |
Deferred revenue | -238 | -194 |
Accrued expenses and other current and non-current liabilities | 8,048 | -242 |
Net cash provided by (used in) operating activities | 3,489 | -866 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -9,901 | -2,145 |
Purchases of intangible assets | -667 | -1,231 |
Cash settlement to common shareholders of Xpliant | -2,541 | |
Proceeds received from disposition of certain consumer product assets | 400 | 250 |
Sale of short-term investment | 1,000 | |
Net cash used in investing activities | -11,709 | -3,126 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon exercise of options | 6,911 | 3,589 |
Principal payment of capital lease and technology license obligations | -9,384 | -4,908 |
Proceeds from notes payable and other from non-controlling interest | 1,400 | |
Tax withholdings for stock option exercises on behalf of employees | 254 | |
Net cash provided by (used in) financing activities | -2,473 | 335 |
Net decrease in cash and cash equivalents | -10,693 | -3,657 |
Cash and cash equivalents, beginning of period | 131,718 | 127,763 |
Cash and cash equivalents, end of period | 121,025 | 124,106 |
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 | 2,089 | 1,984 |
Property and equipment and intangible assets acquired included in capital lease and technology license obligations | $600 | $984 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation |
Organization | |
Cavium, Inc., (the “Company”), was incorporated in the state of California on November 21, 2000 and was reincorporated in the state of Delaware effective February 6, 2007. The Company designs, develops and markets semiconductor processors for intelligent and secure networks. | |
Basis of Presentation | |
The condensed consolidated financial statements include the accounts of Cavium, Inc., its wholly owned subsidiaries, and a variable interest entity, or VIE (Xpliant, Inc.), 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. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The condensed consolidated financial statements have been prepared in accordance with US GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. For further information, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K (File No. 001-33435) on file with the SEC for the year ended December 31, 2014. | |
The condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s condensed consolidated financial position at March 31, 2015, and the condensed consolidated results of its operations for the three months ended March 31, 2015 and 2014, and condensed consolidated statements of cash flows for the three months ended March 31, 2015 and 2014. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year. | |
The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by US GAAP. | |
Significant Accounting Policies | |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There had been no material changes to these accounting policies. | |
Recent Accounting Pronouncements | |
In February 2015, the Financial Accounting Standards Board issued an accounting standards update to improve consolidation guidance related to determining whether limited partnerships and similar legal entities are a VIE. The new guidance requires new disclosures for reporting entities that have explicit arrangements to provide financial support to money market funds. In addition, reporting entities would have to provide disclosures if they have provided any financial support during any of the income statement periods included in the financial statements. The update is effective for interim and annual periods beginning after December 15, 2015, although early adoption is permitted. The guidance may be applied using a modified retrospective approach whereby the entity records a cumulative effect of adoption at the beginning of the fiscal year of initial application. A reporting entity may also apply the amendments on a full retrospective basis. The Company does not expect that this new guidance will have a significant impact on its consolidated financial statements. | |
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. |
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Loss Per Common Share | 2. Net Income (Loss) Per Common Share | |||||||
The following table sets forth the computation of net income (loss) per share: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share data) | ||||||||
Net income (loss) attributable to the Company | $ | (13,891 | ) | $ | 2,347 | |||
Weighted average common shares outstanding - basic | 54,882 | 52,550 | ||||||
Dilutive effect of employee stock plans | - | 1,671 | ||||||
Weighted average common shares outstanding - diluted | 54,882 | 54,221 | ||||||
Net income (loss) per common share, basic | $ | (0.25 | ) | $ | 0.04 | |||
Net income (loss) per common share, diluted | $ | (0.25 | ) | $ | 0.04 | |||
The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Options to purchase common stock | 2,264 | 610 | ||||||
Restricted stock units | 2,790 | - | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements |
At March 31, 2015 and December 31, 2014, the Company’s cash equivalents comprised of an investment in a money market fund. At December 31, 2014, the Company had 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 $87.2 million and $93.2 million as of March 31, 2015 and December 31, 2014, respectively. The carrying amount of the Company’s accounts receivable, accounts payable and accrued expenses approximate fair value due to their short term maturities. | |
See Note 5 of Notes to Condensed Consolidated Financial Statements for discussions about using Level 3 fair value hierarchy measurements. |
Balance_Sheet_Components
Balance Sheet Components | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||
Balance Sheet Components | 4. Balance Sheet Components | |||||||
Inventories | ||||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Work-in-process | $ | 37,903 | $ | 37,207 | ||||
Finished goods | 14,409 | 14,715 | ||||||
$ | 52,312 | $ | 51,922 | |||||
Property and equipment, net | ||||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Test equipment and mask costs | $ | 52,039 | $ | 50,591 | ||||
Software, design tools, computer and other equipment | 61,213 | 53,686 | ||||||
Furniture, office equipment and leasehold improvements | 2,837 | 2,500 | ||||||
116,089 | 106,777 | |||||||
Less: accumulated depreciation and amortization | (57,261 | ) | (49,814 | ) | ||||
$ | 58,828 | $ | 56,963 | |||||
Depreciation and amortization expense was $7.5 million and $4.2 million for the three months ended March 31, 2015 and 2014, 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 $32.3 million and $35.8 million at March 31, 2015 and December 31, 2014, respectively. Amortization expense related to assets recorded under capital lease and certain financing agreements was $3.7 million and $2.0 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Other accrued expenses and other current liabilities | ||||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Accrued compensation and related benefits | $ | 5,214 | $ | 4,855 | ||||
Professional fees | 1,199 | 1,029 | ||||||
Accrued royalty | 691 | 638 | ||||||
Manufacturing rights payable | 7,500 | - | ||||||
Income tax payable | 405 | 451 | ||||||
Other | 936 | 809 | ||||||
$ | 15,945 | $ | 7,782 | |||||
Warranty Accrual | ||||||||
The following table presents a reconciliation of the warranty liability, which is included within other accrued expenses and other current liabilities above: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 227 | $ | 167 | ||||
Accruals and adjustments | 279 | 97 | ||||||
Settlements | (64 | ) | (92 | ) | ||||
Ending balance | $ | 442 | $ | 172 | ||||
Deferred revenue | ||||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Services/support and maintenance | $ | 5,066 | $ | 5,769 | ||||
Software license/subscription | 981 | 516 | ||||||
$ | 6,047 | $ | 6,285 | |||||
Business_Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | 5. Business Combination |
Xpliant, Inc. | |
Pursuant to the Agreement and Plan of Merger and Reorganization (“the Merger Agreement”) between the Company and Xpliant, Inc. (“Xpliant”), a final closing occurred on April 29, 2015 as discussed in detail below. | |
Between May 2012 and March 2015, the Company entered into several note purchase agreements and promissory notes with Xpliant 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. Prior to the first closing of the the Merger Agreement between the Company and Xpliant as discussed below, the Company concluded that Xpliant was a variable interest entity as the Company was Xpliant’s primary beneficiary due to the Company’s involvement with Xpliant and the Company’s purchase option to acquire Xpliant. As such, the Company has included the accounts of Xpliant in the condensed consolidated financial statements. | |
As of March 31, 2015, the Company had made cash advances of $85.8 million, consisting of $10.0 million under nine convertible notes receivable which, as amended, matured on August 31, 2014 and $75.8 million under several promissory notes which mature between April 2015 and March 2016. The outstanding convertible notes and promissory notes bear an annual interest rate of 6%. | |
In addition to the funding received by Xpliant from the Company, between May 2012 and January 2014, certain third party investors (“non-controlling interest”) made cash advances of $13.0 million under several convertible notes which, as amended, matured on August 31, 2014 and $2.9 million under a convertible security. 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 Xpliant in December 2013. Pursuant to the convertible notes, in the event Xpliant 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. The convertible security had the same features as the convertible notes, with the exception of the requirement for repayment, interest and maturity. For accounting purposes, the Company determined that the convertible security had derivative features and determined that the fair value of the derivative features of the convertible security at the issuance date was approximately the same as the principal amount. All of the convertible notes and the derivative feature of convertible security were classified as Level 3 liability and were all remeasured and presented at fair value in the condensed consolidated financial statements at each reporting period. Pursuant to the option to acquire Xpliant, in June 2014, the Company provided notice to Xpliant of its decision to exercise the purchase option. As such, the convertible notes and derivative features of convertible security were valued to two times its principal amount at its maturity date. Pursuant to the Merger Agreement between the Company and Xpliant as discussed in detail below, in October 2014, a portion of the cash advances made by the Company to Xpliant were used to settle all outstanding convertible notes, related accrued interest and convertible security held by non-controlling interest. | |
On July 30, 2014, the Company entered into the Merger Agreement, which was amended on October 8, 2014 and March 31, 2015 with Xpliant. Under the terms of the Merger Agreement, as amended, the Company paid approximately $3.6 million in total cash consideration in exchange for all outstanding securities held by Xpliant’s stockholders. Pursuant to the Merger Agreement, as amended, a first closing occurred on March 31, 2015 and the Company paid $2.5 million to Xpliant’s stockholders with respect to approximately 70% of the Xpliant stock outstanding and a second and final closing occurred on April 29, 2015 and the Company paid $1.1 million to Xpliant’s stockholders with respect to the then remaining approximately 30% of the Xpliant stock outstanding. Based on the substance of the transaction, the Company recorded the payments of cash consideration to Xpliant stockholders as a decrease to the Company’s additional paid-in capital within stockholders’ equity. | |
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 Xpliant were used to settle all outstanding convertible notes, related accrued interest and the 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 Xpliant. 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 closing stock price at the grant date to the employees of Xpliant. | |
The significant components of Xpliant’s financial statements included in the Company’s condensed consolidated financial statements as of March 31, 2015 include cash of $2.3 million; property and equipment of $9.9 million; and accounts payable and other accrued expenses and other current liabilities of $8.4 million. As of December 31, 2014, the significant component of Xpliant’s financial statements included in the Company’s condensed consolidated financial statements include cash of $0.4 million; property and equipment of $8.7 million; and capital lease and technology license obligations of $2.8 million. The net loss of Xpliant was allocated to the Company and to the non-controlling interest based on the outstanding cash advances provided to Xpliant at each reporting period. The Company’s portion of the net loss of Xpliant for the three months ended March 31, 2015 and 2014 was $24.4 million and $2.2 million, respectively. Included in the net loss of Xpliant for the three months ended March 31, 2015 was a $7.5 million manufacturing rights licensing fee due to a third party vendor which was recorded within research and development expense on the condensed statements of operations (See Note 11). |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 March 31, 2015 was $71.5 million, unchanged from the balance at December 31, 2014. | |||||||||||||||||
Intangible assets, net | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 66,760 | (30,311 | ) | $ | 36,449 | 6.74 | ||||||||||
Existing and core technology - product | 42,085 | (41,017 | ) | 1,068 | 1.74 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,976 | ) | 15 | 0.58 | ||||||||||||
Trade name | 2,296 | (2,296 | ) | - | - | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 120,772 | $ | (83,240 | ) | $ | 37,532 | 6.6 | |||||||||
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 | |||||||||
Amortization expense was $2.9 million and $3.7 million for the three months ended March 31, 2015 and 2014, respectively. The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | |||||||||||||||||
Remainder of 2015 | $ | 6,368 | |||||||||||||||
2016 | 7,289 | ||||||||||||||||
2017 | 5,298 | ||||||||||||||||
2018 | 3,991 | ||||||||||||||||
2019 | 3,796 | ||||||||||||||||
2020 and thereafter | 10,790 | ||||||||||||||||
$ | 37,532 | ||||||||||||||||
Restructuring_Accrual
Restructuring Accrual | 3 Months Ended |
Mar. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Accrual | 7. Restructuring Accrual |
In connection with a workforce reduction during the three months ended March 31, 2014, the Company incurred and paid $0.6 million related to severance and other related benefits. There were no outstanding accrued restructuring payable as of March 31, 2015 and December 31, 2014, respectively. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Stockholders Equity Note [Abstract] | |||||||||
Stockholders' Equity | 8. Stockholders’ Equity | ||||||||
Equity Incentive Plans | |||||||||
The following table summarizes the details related to stock options granted and outstanding under the 2007 Equity Incentive Plan and 2001 Stock Incentive Plan for the three months ended March 31, 2015: | |||||||||
Number of Shares Outstanding | Weighted Average Exercise Price | ||||||||
Balance as of December 31, 2014 | 2,626,260 | $ | 20.62 | ||||||
Options granted | 75,178 | 62.83 | |||||||
Options exercised | (437,151 | ) | 15.81 | ||||||
Options cancelled and forfeited | - | - | |||||||
Balance as of March 31, 2015 | 2,264,287 | 22.95 | |||||||
The fair value of each option grant for the three months ended March 31, 2015 and 2014 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions below. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Risk-free interest rate | 1.41% | 1.47% | |||||||
Expected life | 4.58 years | 4.53 years | |||||||
Dividend yield | 0% | 0% | |||||||
Volatility | 43.03% | 43.80% | |||||||
The estimated weighted-average grant date fair value of options granted for the three months ended March 31, 2015 and 2014 was $23.60 per share and $14.37 per share, respectively. | |||||||||
As of March 31, 2015, there was $5.0 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 2.50 years. | |||||||||
The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the three months ended March 31, 2015: | |||||||||
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||
Balance as of December 31, 2014 | 2,464,747 | $ | 39.21 | ||||||
Granted | 759,622 | 60.39 | |||||||
Issued and released | (411,541 | ) | 37.87 | ||||||
Cancelled and forfeited | (23,222 | ) | 36.79 | ||||||
Balance as of March 31, 2015 | 2,789,606 | 45.2 | |||||||
For all RSU grants other than RSU grants with market condition as discussed below, 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. | |||||||||
Included in the RSU grants in the table above are one-year and two-year performance-based RSU’s granted in February 2015. Based on the Company’s evaluation of the probability of achieving the milestone as of March 31, 2015, the Company determined that the fair value of this performance RSU’s was $2.1 million and $0.7 million, respectively, and recorded the related stock-based compensation expense during the three months ended March 31, 2015. In May 2014, the Company granted a performance-based RSU and the Company determined that the fair value of this performance RSU was $1.5 million. Based on the Company’s evaluation of the probability of achieving the milestones as of March 31, 2015, the Company recorded the related stock-based compensation expense during the three months ended March 31, 2015. 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. | |||||||||
Also included in the RSU grants in the table above is a four-year vesting market-based RSU’s granted in February 2015. This market-based RSU’s will vest if the average closing price of the Company’s common stock over a period of 30 consecutive trading days is equal to or greater than the price per share set by the Board and the recipient remains in continuous service with the Company through such vesting period. The fair value of market-based RSUs was determined by management using the Monte Carlo simulation method which takes into account multiple input variables that determine the probability of satisfying the market conditions stipulated in the award. This method requires the input of assumptions, including the expected volatility of the Company’s common stock, and a risk-free interest rate, similar to assumptions used in determining the fair value of the stock option grants discussed above. As such, the Company determined that the fair value of this market-based RSU was $1.5 million at the date of grant and recorded the related stock-based compensation expense for the three months ended March 31, 2015. | |||||||||
As of March 31, 2015, there was $102.0 million of unrecognized compensation costs, net of estimated forfeitures related to RSUs granted under the Company’s 2007 Equity Incentive Plan. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.87 years. | |||||||||
Stock-Based Compensation | |||||||||
The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Cost of revenue | $ | 197 | $ | 247 | |||||
Research and development | 6,795 | 5,404 | |||||||
Sales, general and administrative | 4,707 | 3,936 | |||||||
$ | 11,699 | $ | 9,587 | ||||||
The total stock-based compensation cost capitalized as part of inventory as of March 31, 2015 and December 31, 2014 was not significant. | |||||||||
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | 9. Income Taxes | ||||||||
The quarterly provision for income taxes is based on the estimated annual effective tax rate, plus any discrete items. The Company updates its estimate of its annual effective tax rate at the end of each quarterly period. The estimate takes into account estimations of annual pre-tax income, the geographic mix of pre-tax income and interpretations of tax laws and the possible outcomes of current and future audits. | |||||||||
The following table presents the provision for income taxes and the effective tax rates for the three months ended March 31, 2015 and 2014: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Loss before income taxes | $ | (13,590 | ) | $ | (1,512 | ) | |||
Provision for income taxes | 301 | 243 | |||||||
Effective tax rate | (2.2 | )% | (16.1 | )% | |||||
The provision for income taxes for the three months ended March 31, 2015 and 2014 were primarily related to earnings in foreign jurisdictions. The difference between the provision for or benefit from income taxes that would be derived by applying the statutory rate to the Company’s loss before income taxes and the provision for income taxes recorded for the three months ended March 31, 2015 and 2014 were primarily attributable to the valuation allowance, the difference in foreign tax rates and an increase in the indefinite lived intangible related deferred tax liability. | |||||||||
The Company’s net deferred tax assets relate predominantly to its United States tax jurisdiction. A full valuation allowance against the Company federal and state net deferred tax assets has been in place since the fourth quarter of 2012. 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 and March 31, 2015. 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. | |||||||||
As of March 31, 2015 and December 31, 2014, the Company had unrecognized tax benefits for income taxes associated with uncertain tax positions of $16.4 million and $16.3 million, respectively. If all of these unrecognized tax benefits were recognized, $0.9 million would impact the Company’s 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 March 31, 2015 and December 31, 2014, 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. | |||||||||
The Company’s major tax jurisdictions are the United States federal government, the states of California and Massachusetts, Japan, India, China and Singapore. The Company files income tax returns in the United States federal jurisdiction, the states of California and Massachusetts, various other states, and foreign jurisdictions in which it has a subsidiary or branch operations. The United States federal corporation income tax returns beginning with the 2000 tax year remain subject to examination by the Internal Revenue Service, or IRS. The California corporation income tax returns beginning with the 2000 tax year remain subject to examination by the California Franchise Tax Board. As of March 31, 2015, there are no on-going tax audits in the major tax jurisdictions other than India and Singapore. The Company has settled their India tax audit for the tax year 2010 with immaterial tax adjustment. The India tax audit remains open for the tax years 2011 and 2012 and the Singapore tax audit for the tax year 2012. The Company does not expect any significant tax adjustments from either of these audits. | |||||||||
The federal research and development credits law, which was extended through December 31, 2014, has not been extended to the end of 2015. As a result, the 2015 quarterly provision and the annual effective tax rate did not consider the effects of the federal research and development credits. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment and Geographic Information | 10. Segment and Geographic Information | |||||||
Operating segments are based on components of the Company that engage in business activity that earn revenue and incur expenses and (a) whose operating results are regularly reviewed by the Company’s chief operating decision maker, or CODM, to make decisions about resource allocation and performance and (b) for which discrete financial information is available. The Company manages and operates as one reporting segment. | ||||||||
The Company’s revenue consists primarily of sale of semiconductor products and also derives revenue from licensing software and related maintenance and support. The revenue from these sources is classified by the Company as product revenue. The Company also generates revenue from professional service arrangements which is categorized as service revenue. The total service revenue is less than 10% of the Company’s total revenue for the three months ended March 31, 2015 and 2014. 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: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Enterprise network, data center and access and service | $ | 92,397 | $ | 75,628 | ||||
provider markets | ||||||||
Broadband and consumer markets | 9,381 | 7,613 | ||||||
$ | 101,778 | $ | 83,241 | |||||
The following table is based on the geographic location of the original equipment manufacturers, the contract manufacturers or the distributors who purchased the Company’s products. For sales to the distributors, their geographic location may be different from the geographic locations of the ultimate end customers. | ||||||||
Sales by geography for the periods indicated were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
United States | $ | 32,005 | $ | 30,077 | ||||
China | 26,118 | 22,004 | ||||||
Finland | 7,915 | 7,712 | ||||||
Taiwan | 8,370 | 6,198 | ||||||
Korea | 7,915 | 3,664 | ||||||
Mexico | 9,536 | 4,650 | ||||||
Other countries | 9,919 | 8,936 | ||||||
Total | $ | 101,778 | $ | 83,241 | ||||
The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: | ||||||||
As of | As of | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
(in thousands) | ||||||||
United States | $ | 52,706 | $ | 49,856 | ||||
All other countries | 6,122 | 7,107 | ||||||
Total | $ | 58,828 | $ | 56,963 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | 11. Commitments and Contingencies | ||||||||||||
The Company is not currently a party to any legal proceedings and outcome of which, if determined adversely to the Company, would have a material adverse effect on the condensed consolidated financial position, condensed results of operations or condensed cash flows of the Company. | |||||||||||||
The Company leases its facilities under non-cancelable operating leases, which contain renewal options and escalation clauses, and expire on various dates ending in October 2022. The Company also acquires certain assets under capital leases. | |||||||||||||
The capital lease and technology license obligations include future cash payments payable primarily for license agreements with various outside vendors. For license agreements which qualify under capital lease and where installment payments extend beyond one year, the present value of the future installment payments are capitalized and included as part of intangible assets or property and equipment which is amortized over the estimated useful lives of the related licenses. | |||||||||||||
Minimum commitments under non-cancelable operating and capital lease agreements as of March 31, 2015 are as follows: | |||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
Remainder of 2015 | $ | 14,965 | $ | 5,346 | $ | 20,311 | |||||||
2016 | 16,503 | 8,680 | 25,183 | ||||||||||
2017 | 7,353 | 8,731 | 16,084 | ||||||||||
2018 | - | 8,929 | 8,929 | ||||||||||
2019 | - | 8,847 | 8,847 | ||||||||||
2020 thereafter | - | 23,135 | 23,135 | ||||||||||
$ | 38,821 | $ | 63,668 | $ | 102,489 | ||||||||
Less: Interest component (3.75% annual rate) | 1,709 | ||||||||||||
Present value of minimum lease payment | 37,112 | ||||||||||||
Current portion of the obligations | $ | 16,324 | |||||||||||
Long-term portion of obligations | $ | 20,788 | |||||||||||
Rent expense incurred under operating leases was $1.8 million and $1.4 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||
The Company has funding commitments in relation to the merger agreement with Xpliant. See Note 5 of Notes to Condensed Consolidated Financial Statements for related discussions. | |||||||||||||
On March 30, 2015, Xpliant exercised its option to purchase the manufacturing rights for an application specific integrated circuit, or ASIC, from a third party vendor. In consideration for acquiring the manufacturing rights, Xpliant agreed to pay the third party vendor a $7.5 million manufacturing rights licensing fee and a per-unit royalty fee for certain ASIC products sold to certain customers for limited time. The manufacturing rights licensing fee will be payable in 4 equal quarterly payments, with the first installment payment due 30 days from effective date of the exercise of option to purchase the manufacturing rights and each of the subsequent three installment payments being due on the first day of the following calendar quarter. The royalty shall be payable within 30 days after the end of each calendar quarter following the sale. Considering the terms of the purchase of the manufacturing rights, the Company recorded the full amount of the manufacturing rights licensing fee within research and development expense on the condensed consolidated statement of operations for the three months ended March 31, 2015 and the related liability was recorded within other accrued expenses and other current liabilities on the condensed consolidated balance sheet as of March 31, 2015. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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 Presentation | Basis of Presentation |
The condensed consolidated financial statements include the accounts of Cavium, Inc., its wholly owned subsidiaries, and a variable interest entity, or VIE (Xpliant, Inc.), 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. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The condensed consolidated financial statements have been prepared in accordance with US GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. For further information, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K (File No. 001-33435) on file with the SEC for the year ended December 31, 2014. | |
The condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to state fairly the Company’s condensed consolidated financial position at March 31, 2015, and the condensed consolidated results of its operations for the three months ended March 31, 2015 and 2014, and condensed consolidated statements of cash flows for the three months ended March 31, 2015 and 2014. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year. | |
The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by US GAAP. | |
Significant Accounting Policies | Significant Accounting Policies |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There had been no material changes to these accounting policies. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In February 2015, the Financial Accounting Standards Board issued an accounting standards update to improve consolidation guidance related to determining whether limited partnerships and similar legal entities are a VIE. The new guidance requires new disclosures for reporting entities that have explicit arrangements to provide financial support to money market funds. In addition, reporting entities would have to provide disclosures if they have provided any financial support during any of the income statement periods included in the financial statements. The update is effective for interim and annual periods beginning after December 15, 2015, although early adoption is permitted. The guidance may be applied using a modified retrospective approach whereby the entity records a cumulative effect of adoption at the beginning of the fiscal year of initial application. A reporting entity may also apply the amendments on a full retrospective basis. The Company does not expect that this new guidance will have a significant impact on its consolidated financial statements. | |
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. |
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Basic and Diluted Net Loss Per Common Share | The following table sets forth the computation of net income (loss) per share: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share data) | ||||||||
Net income (loss) attributable to the Company | $ | (13,891 | ) | $ | 2,347 | |||
Weighted average common shares outstanding - basic | 54,882 | 52,550 | ||||||
Dilutive effect of employee stock plans | - | 1,671 | ||||||
Weighted average common shares outstanding - diluted | 54,882 | 54,221 | ||||||
Net income (loss) per common share, basic | $ | (0.25 | ) | $ | 0.04 | |||
Net income (loss) per common share, diluted | $ | (0.25 | ) | $ | 0.04 | |||
Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Loss Per Common Share | The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Options to purchase common stock | 2,264 | 610 | ||||||
Restricted stock units | 2,790 | - | ||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||
Inventories | Inventories | |||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Work-in-process | $ | 37,903 | $ | 37,207 | ||||
Finished goods | 14,409 | 14,715 | ||||||
$ | 52,312 | $ | 51,922 | |||||
Property and Equipment, Net | Property and equipment, net | |||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Test equipment and mask costs | $ | 52,039 | $ | 50,591 | ||||
Software, design tools, computer and other equipment | 61,213 | 53,686 | ||||||
Furniture, office equipment and leasehold improvements | 2,837 | 2,500 | ||||||
116,089 | 106,777 | |||||||
Less: accumulated depreciation and amortization | (57,261 | ) | (49,814 | ) | ||||
$ | 58,828 | $ | 56,963 | |||||
Other Accrued Expenses And Other Current Liabilities | Other accrued expenses and other current liabilities | |||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Accrued compensation and related benefits | $ | 5,214 | $ | 4,855 | ||||
Professional fees | 1,199 | 1,029 | ||||||
Accrued royalty | 691 | 638 | ||||||
Manufacturing rights payable | 7,500 | - | ||||||
Income tax payable | 405 | 451 | ||||||
Other | 936 | 809 | ||||||
$ | 15,945 | $ | 7,782 | |||||
Warranty Accrual | The following table presents a reconciliation of the warranty liability, which is included within other accrued expenses and other current liabilities above: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 227 | $ | 167 | ||||
Accruals and adjustments | 279 | 97 | ||||||
Settlements | (64 | ) | (92 | ) | ||||
Ending balance | $ | 442 | $ | 172 | ||||
Deferred Revenue | Deferred revenue | |||||||
As of | As of | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Services/support and maintenance | $ | 5,066 | $ | 5,769 | ||||
Software license/subscription | 981 | 516 | ||||||
$ | 6,047 | $ | 6,285 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Intangible Assets, Net | Intangible assets, net | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted average remaining amortization period (years) | ||||||||||||||
(in thousands) | |||||||||||||||||
Technology licenses | $ | 66,760 | (30,311 | ) | $ | 36,449 | 6.74 | ||||||||||
Existing and core technology - product | 42,085 | (41,017 | ) | 1,068 | 1.74 | ||||||||||||
Customer contracts and relationships | 8,991 | (8,976 | ) | 15 | 0.58 | ||||||||||||
Trade name | 2,296 | (2,296 | ) | - | - | ||||||||||||
Order backlog | 640 | (640 | ) | - | - | ||||||||||||
Total amortizable intangible assets | $ | 120,772 | $ | (83,240 | ) | $ | 37,532 | 6.6 | |||||||||
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 | |||||||||
Estimated Future Amortization Expense From Amortizable Intangible Assets | The estimated future amortization expense from amortizable intangible assets is as follows (in thousands): | ||||||||||||||||
Remainder of 2015 | $ | 6,368 | |||||||||||||||
2016 | 7,289 | ||||||||||||||||
2017 | 5,298 | ||||||||||||||||
2018 | 3,991 | ||||||||||||||||
2019 | 3,796 | ||||||||||||||||
2020 and thereafter | 10,790 | ||||||||||||||||
$ | 37,532 | ||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Stockholders Equity Note [Abstract] | |||||||||
Summary of Stock Options Granted and Outstanding | The following table summarizes the details related to stock options granted and outstanding under the 2007 Equity Incentive Plan and 2001 Stock Incentive Plan for the three months ended March 31, 2015: | ||||||||
Number of Shares Outstanding | Weighted Average Exercise Price | ||||||||
Balance as of December 31, 2014 | 2,626,260 | $ | 20.62 | ||||||
Options granted | 75,178 | 62.83 | |||||||
Options exercised | (437,151 | ) | 15.81 | ||||||
Options cancelled and forfeited | - | - | |||||||
Balance as of March 31, 2015 | 2,264,287 | 22.95 | |||||||
Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option - Pricing Model | The fair value of each option grant for the three months ended March 31, 2015 and 2014 were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions below. | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Risk-free interest rate | 1.41% | 1.47% | |||||||
Expected life | 4.58 years | 4.53 years | |||||||
Dividend yield | 0% | 0% | |||||||
Volatility | 43.03% | 43.80% | |||||||
Summary of Activity of Restricted Stock | The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the three months ended March 31, 2015: | ||||||||
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||
Balance as of December 31, 2014 | 2,464,747 | $ | 39.21 | ||||||
Granted | 759,622 | 60.39 | |||||||
Issued and released | (411,541 | ) | 37.87 | ||||||
Cancelled and forfeited | (23,222 | ) | 36.79 | ||||||
Balance as of March 31, 2015 | 2,789,606 | 45.2 | |||||||
Detail of Stock-Based Compensation Expense | The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Cost of revenue | $ | 197 | $ | 247 | |||||
Research and development | 6,795 | 5,404 | |||||||
Sales, general and administrative | 4,707 | 3,936 | |||||||
$ | 11,699 | $ | 9,587 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Loss before income taxes | $ | (13,590 | ) | $ | (1,512 | ) | |||
Provision for income taxes | 301 | 243 | |||||||
Effective tax rate | (2.2 | )% | (16.1 | )% | |||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Net Revenue by Markets | The net revenue by markets for the periods indicated was as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Enterprise network, data center and access and service | $ | 92,397 | $ | 75,628 | ||||
provider markets | ||||||||
Broadband and consumer markets | 9,381 | 7,613 | ||||||
$ | 101,778 | $ | 83,241 | |||||
Sales by Geography | Sales by geography for the periods indicated were as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
United States | $ | 32,005 | $ | 30,077 | ||||
China | 26,118 | 22,004 | ||||||
Finland | 7,915 | 7,712 | ||||||
Taiwan | 8,370 | 6,198 | ||||||
Korea | 7,915 | 3,664 | ||||||
Mexico | 9,536 | 4,650 | ||||||
Other countries | 9,919 | 8,936 | ||||||
Total | $ | 101,778 | $ | 83,241 | ||||
Long Lived Assets | The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: | |||||||
As of | As of | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
(in thousands) | ||||||||
United States | $ | 52,706 | $ | 49,856 | ||||
All other countries | 6,122 | 7,107 | ||||||
Total | $ | 58,828 | $ | 56,963 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||
Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations | Minimum commitments under non-cancelable operating and capital lease agreements as of March 31, 2015 are as follows: | ||||||||||||
Capital lease and technology license obligations | Operating leases | Total | |||||||||||
(in thousands) | |||||||||||||
Remainder of 2015 | $ | 14,965 | $ | 5,346 | $ | 20,311 | |||||||
2016 | 16,503 | 8,680 | 25,183 | ||||||||||
2017 | 7,353 | 8,731 | 16,084 | ||||||||||
2018 | - | 8,929 | 8,929 | ||||||||||
2019 | - | 8,847 | 8,847 | ||||||||||
2020 thereafter | - | 23,135 | 23,135 | ||||||||||
$ | 38,821 | $ | 63,668 | $ | 102,489 | ||||||||
Less: Interest component (3.75% annual rate) | 1,709 | ||||||||||||
Present value of minimum lease payment | 37,112 | ||||||||||||
Current portion of the obligations | $ | 16,324 | |||||||||||
Long-term portion of obligations | $ | 20,788 | |||||||||||
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share (Basic and Diluted Net Income (Loss) Per Common Share) (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to the Company | ($13,891) | $2,347 |
Weighted average common shares outstanding - basic | 54,882 | 52,550 |
Dilutive effect of employee stock plans | 1,671 | |
Weighted average common shares outstanding - diluted | 54,882 | 54,221 |
Net income (loss) per common share, basic | ($0.25) | $0.04 |
Net income (loss) per common share, diluted | ($0.25) | $0.04 |
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Income (Loss) Per Common Share) (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
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 | 2,264 | 610 |
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 | 2,790 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (Fair Value, Inputs, Level 1, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $87.20 | $93.20 |
Balance_Sheet_Components_Inven
Balance Sheet Components (Inventories) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Work-in-process | $37,903 | $37,207 |
Finished goods | 14,409 | 14,715 |
Inventories | $52,312 | $51,922 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment, Net) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $116,089 | $106,777 |
Less: accumulated depreciation and amortization | -57,261 | -49,814 |
Property and equipment, net | 58,828 | 56,963 |
Test Equipment and Mask Costs | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 52,039 | 50,591 |
Software, Design Tools, Computer and Other Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 61,213 | 53,686 |
Furniture, Office Equipment and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $2,837 | $2,500 |
Balance_Sheet_Components_Narra
Balance Sheet Components (Narrative) (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Depreciation and amortization expense | $7.50 | $4.20 | |
Capital lease and certain financing arrangements | 32.3 | 35.8 | |
Amortization expense related to assets under capital lease and certain financing arrangements | $3.70 | $2 |
Balance_Sheet_Components_Other
Balance Sheet Components (Other Accrued Expenses and Other Current Liabilities) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation and related benefits | $5,214 | $4,855 |
Professional fees | 1,199 | 1,029 |
Accrued royalty | 691 | 638 |
Manufacturing rights payable | 7,500 | |
Income tax payable | 405 | 451 |
Other | 936 | 809 |
Accrued expenses and other current liabilities | $15,945 | $7,782 |
Balance_Sheet_Components_Warra
Balance Sheet Components (Warranty Accrual) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Product Warranty Accrual, Balance Sheet Classification [Abstract] | ||
Beginning balance | $227 | $167 |
Accruals and adjustments | 279 | 97 |
Settlements | -64 | -92 |
Ending balance | $442 | $172 |
Balance_Sheet_Components_Defer
Balance Sheet Components (Deferred Revenue) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $6,047 | $6,285 |
Service / Support and Maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 5,066 | 5,769 |
Software License / Subscription | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $981 | $516 |
Business_Combination_Narrative
Business Combination (Narrative) (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jul. 30, 2014 | Oct. 31, 2014 | Apr. 29, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Oct. 08, 2014 |
Business Acquisition [Line Items] | ||||||||
Cash advances in exchange for notes | $85,800 | |||||||
Settlement to common shareholders of an acquired entity | 2,541 | |||||||
Variable Interest Entity, property and equipment | 58,828 | 56,963 | ||||||
Net income (loss) attributable to the Company | -13,891 | 2,347 | ||||||
Manufacturing rights licensing fee | 58,422 | 37,289 | ||||||
Xpliant | ||||||||
Business Acquisition [Line Items] | ||||||||
Amount of consideration in exchange for all securities of the acquired company | 3,600 | |||||||
Business combination agreement date | 30-Jul-14 | |||||||
Original transaction agreement amended date | 8-Oct-14 | |||||||
Settlement to common shareholders of an acquired entity | 2,500 | |||||||
Percentage of outstanding securities settled in amendment agreement | 70.00% | |||||||
Cash consideration to settle the non-controlling interest convertible notes and convertible security holder | 30,800 | |||||||
Cash bonus to employees | 1,700 | |||||||
Share issued under merger agreement | 193,000 | |||||||
Fair value of shares issued under merger agreement | 8,700 | |||||||
Variable Interest Entity, cash | 2,300 | 400 | ||||||
Variable Interest Entity, property and equipment | 9,900 | 8,700 | ||||||
Variable Interest Entity, accounts payable and accrued expenses and other liabilities | 8,400 | |||||||
Capital lease and technology license obligations | 2,800 | |||||||
Net income (loss) attributable to the Company | 24,400 | 2,200 | ||||||
Manufacturing rights licensing fee | 7,500 | |||||||
Xpliant | Subsequent Event [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Settlement to common shareholders of an acquired entity | 1,100 | |||||||
Percentage of outstanding securities settled in amendment agreement | 30.00% | |||||||
Nine Convertible Notes Receivable | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash advances in exchange for notes | 10,000 | |||||||
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 | 75,800 | |||||||
Promissory Notes | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Promissory note, maturity date | 29-Apr-15 | |||||||
Promissory Notes | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Promissory note, maturity date | 31-Mar-16 | |||||||
Several Convertible Note Receivable | Noncontrolling Interest | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash advances in exchange for notes | 13,000 | |||||||
Interest rate on notes receivable | 6.00% | |||||||
Convertible notes receivable maturity date | 31-Aug-14 | |||||||
Notes payable and other | 2,900 | |||||||
Convertible note to third party investor paid by Variable Interest Entity | $1,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $71,478,000 | $71,478,000 | |
Amortization expense | $2,900,000 | $3,700,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net (Intangible Assets, Net) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | $120,772 | $118,014 |
Finite-lived intangible assets, Accumulated Amortization | -83,240 | -80,370 |
Finite-lived intangible assets, Net | 37,532 | 37,644 |
Weighted average remaining amortization period (years) | 6 years 7 months 6 days | 6 years 9 months 15 days |
Technology licenses | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | 66,760 | 64,002 |
Finite-lived intangible assets, Accumulated Amortization | -30,311 | -28,247 |
Finite-lived intangible assets, Net | 36,449 | 35,755 |
Weighted average remaining amortization period (years) | 5 years 7 months 2 days | 7 years 26 days |
Existing and core technology - product | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | 42,085 | 42,085 |
Finite-lived intangible assets, Accumulated Amortization | -41,017 | -40,264 |
Finite-lived intangible assets, Net | 1,068 | 1,821 |
Weighted average remaining amortization period (years) | 1 year 8 months 27 days | 1 year 4 months 21 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 | -8,976 | -8,965 |
Finite-lived intangible assets, Net | 15 | 26 |
Weighted average remaining amortization period (years) | 6 months 29 days | 9 months 29 days |
Trade name | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | 2,296 | 2,296 |
Finite-lived intangible assets, Accumulated Amortization | -2,296 | -2,254 |
Finite-lived intangible assets, Net | 42 | |
Weighted average remaining amortization period (years) | 2 months 1 day | |
Order backlog | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | 640 | 640 |
Finite-lived intangible assets, Accumulated Amortization | ($640) | ($640) |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net (Estimated Future Amortization Expense from Amortizable Intangible Assets) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $6,368 | |
2016 | 7,289 | |
2017 | 5,298 | |
2018 | 3,991 | |
2019 | 3,796 | |
2020 and thereafter | 10,790 | |
Finite-lived intangible assets, Net | $37,532 | $37,644 |
Restructuring_Accrual_Narrativ
Restructuring Accrual (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | |||
Accrued restructuring related payables | $0 | $0 | |
Severance And Other Benefits | |||
Restructuring Cost And Reserve [Line Items] | |||
Additional restructuring accrual | $600,000 |
Stockholders_Equity_Summary_of
Stockholders Equity (Summary of Stock Options Granted and Outstanding) (Detail) (2007 Equity Incentive Plan and 2001 Stock Incentive Plan, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
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 | 2,626,260 |
Number of Shares Outstanding, Options granted | 75,178 |
Number of Shares Outstanding, Options exercised | -437,151 |
Number of Shares Outstanding, Ending balance | 2,264,287 |
Weighted Average Exercise Price, Beginning balance | $20.62 |
Weighted Average Exercise Price, Options granted | $62.83 |
Weighted Average Exercise Price, Options exercised | $15.81 |
Weighted Average Exercise Price, Ending balance | $22.95 |
Stockholders_Equity_Assumption
Stockholders Equity (Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option Pricing Model) (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 1.41% | 1.47% |
Expected life | 4 years 6 months 29 days | 4 years 6 months 11 days |
Dividend yield | 0.00% | 0.00% |
Volatility | 43.03% | 43.80% |
Stockholders_Equity_Narrative_
Stockholders Equity (Narrative) (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | 31-May-14 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $11,699,000 | $9,587,000 | |
Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Estimated weighted-average grant date fair value of options granted | $23.60 | $14.37 | |
Unrecognized compensation cost, net of estimated forfeitures | 5,000,000 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 2 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 | 102,000,000 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 2 years 10 months 13 days | ||
Restricted Stock Units (RSUs) | One-Year Performance Officers | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSU's granted | 2,100,000 | ||
Compensation expense vesting period (in years) | 1 year | ||
Restricted Stock Units (RSUs) | Two-Year Performance | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSU's granted | 700,000 | ||
Compensation expense vesting period (in years) | 2 years | ||
Restricted Stock Units (RSUs) | Four-Year Performance | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense vesting period (in years) | 4 years | ||
Number of consecutive trading period | 30 days | ||
Restricted Stock Units (RSUs) | One Year Performance Other | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSU's granted | $1,500,000 |
Stockholders_Equity_Summary_of1
Stockholders Equity (Summary of Activity of Restricted Stock) (Detail) (2007 Stock Incentive Plan, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
2007 Stock Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | 2,464,747 |
Number of Shares, Granted | 759,622 |
Number of Shares, Issued and released | -411,541 |
Number of Shares, Cancelled and forfeited | -23,222 |
Number of Shares, Ending balance | 2,789,606 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $39.21 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $60.39 |
Weighted-Average Grant Date Fair Value Per Share, Issued and released | $37.87 |
Weighted-Average Grant Date Fair Value Per Share, Cancelled and forfeited | $36.79 |
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $45.20 |
Stockholders_Equity_Detail_of_
Stockholders Equity (Detail of Stock-Based Compensation Expense) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $11,699 | $9,587 |
Cost of revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 197 | 247 |
Research and development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 6,795 | 5,404 |
Sales, general and administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $4,707 | $3,936 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes and Effective Tax Rates) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | ($13,590) | ($1,512) |
Provision for income taxes | $301 | $243 |
Effective tax rate | -2.20% | -16.10% |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits for income taxes | $16.40 | $16.30 |
Unrecognized tax benefit that would impact effective tax rate | $0.90 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - (Narrative) (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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% |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Net Revenue by Markets) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net revenue | $101,778 | $83,241 |
Enterprise Network, Data Center and Access and Service Provider Markets | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 92,397 | 75,628 |
Broadband and Consumer Markets | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $9,381 | $7,613 |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Sales by Geography) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net revenue | $101,778 | $83,241 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 32,005 | 30,077 |
China | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 26,118 | 22,004 |
Finland | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 7,915 | 7,712 |
Taiwan | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 8,370 | 6,198 |
Korea | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 7,915 | 3,664 |
Mexico | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 9,536 | 4,650 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $9,919 | $8,936 |
Segment_and_Geographic_Informa5
Segment and Geographic Information (Long Lived Assets) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $58,828 | $56,963 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 52,706 | 49,856 |
All Other Countries | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $6,122 | $7,107 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 30, 2015 | |
Installments | |||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | |||
Lease expiration period | 1-Oct-22 | ||
Operating leases, rent expense | $1,800,000 | $1,400,000 | |
Manufacturing rights licensing fee | 58,422,000 | 37,289,000 | |
Xpliant | |||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | |||
Manufacturing rights licensing fee | $7,500,000 | ||
Number of equal installments | 4 | ||
License fee periodic payment description | The manufacturing rights licensing fee will be payable in 4 equal quarterly payments, with the first installment payment due 30 days from effective date of the exercise of option to purchase the manufacturing rights and each of the subsequent three installment payments being due on the first day of the following calendar quarter. | ||
Royalty fee periodic payment description | The royalty shall be payable within 30 days after the end of each calendar quarter following the sale. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Total capital lease, technology license and operating lease obligations | ||
Current portion of the obligations | $16,324 | $23,002 |
Long-term portion of obligations | 20,788 | 22,894 |
Remainder of 2015 | 20,311 | |
2016 | 25,183 | |
2017 | 16,084 | |
2018 | 8,929 | |
2019 | 8,847 | |
2020 thereafter | 23,135 | |
Total | 102,489 | |
Capital Lease and Technology License Obligations | ||
Total capital lease, technology license and operating lease obligations | ||
Remainder of 2015 | 14,965 | |
2016 | 16,503 | |
2017 | 7,353 | |
Total | 38,821 | |
Less: Interest component (3.75% annual rate) | 1,709 | |
Present value of minimum lease payment | 37,112 | |
Current portion of the obligations | 16,324 | |
Long-term portion of obligations | 20,788 | |
Operating Leases | ||
Total capital lease, technology license and operating lease obligations | ||
Remainder of 2015 | 5,346 | |
2016 | 8,680 | |
2017 | 8,731 | |
2018 | 8,929 | |
2019 | 8,847 | |
2020 thereafter | 23,135 | |
Total | $63,668 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations) (Parenthetical) (Detail) | Mar. 31, 2015 |
Commitments And Contingencies Disclosure [Abstract] | |
Interest component | 3.75% |