Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 28, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CAVM | |
Entity Registrant Name | CAVIUM, INC. | |
Entity Central Index Key | 1,175,609 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 55,926,735 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 130,985 | $ 131,718 |
Accounts receivable, net of allowances of $1,159 and $1,142, respectively | 61,696 | 48,199 |
Inventories | 47,645 | 51,922 |
Prepaid expenses and other current assets | 9,512 | 9,130 |
Total current assets | 249,838 | 240,969 |
Property and equipment, net | 64,414 | 56,963 |
Intangible assets, net | 36,954 | 37,644 |
Goodwill | 71,478 | 71,478 |
Other assets | 2,019 | 1,806 |
Total assets | 424,703 | 408,860 |
Current liabilities: | ||
Accounts payable | 25,338 | 26,447 |
Other accrued expenses and other current liabilities | 12,095 | 7,782 |
Deferred revenue | 6,519 | 6,285 |
Capital lease and technology license obligations | 17,004 | 23,002 |
Total current liabilities | 60,956 | 63,516 |
Capital lease and technology license obligations, net of current portion | 16,092 | 22,894 |
Deferred tax liability | 3,320 | 2,836 |
Other non-current liabilities | 2,849 | 2,931 |
Total liabilities | $ 83,217 | $ 92,177 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common stock, par value $0.001: 200,000,000 shares authorized; 55,926,735 and 54,458,288 shares issued and outstanding, respectively | $ 56 | $ 54 |
Additional paid-in capital | 529,812 | 488,981 |
Accumulated deficit | (188,382) | (172,352) |
Total stockholders' equity | 341,486 | 316,683 |
Total liabilities and stockholders' equity | $ 424,703 | $ 408,860 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 1,159 | $ 1,142 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 55,926,735 | 54,458,288 |
Common stock, shares outstanding | 55,926,735 | 54,458,288 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net revenue | $ 105,063 | $ 97,833 | $ 311,802 | $ 271,755 |
Cost of revenue | 36,203 | 35,710 | 109,675 | 99,957 |
Gross profit | 68,860 | 62,123 | 202,127 | 171,798 |
Operating expenses: | ||||
Research and development | 45,367 | 40,459 | 156,014 | 116,582 |
Sales, general and administrative | 18,522 | 18,141 | 59,529 | 51,090 |
Total operating expenses | 63,889 | 58,600 | 215,543 | 167,672 |
Income (loss) from operations | 4,971 | 3,523 | (13,416) | 4,126 |
Other expense, net: | ||||
Interest expense | (216) | (387) | (1,014) | (1,179) |
Change in estimated fair value of notes payable and other | (103) | (14,888) | ||
Other, net | (173) | (116) | (272) | (34) |
Total other expense, net | (389) | (606) | (1,286) | (16,101) |
Income (loss) before income taxes | 4,582 | 2,917 | (14,702) | (11,975) |
Provision for income taxes | 366 | 811 | 1,328 | 1,365 |
Net income (loss) | 4,216 | 2,106 | (16,030) | (13,340) |
Net loss attributable to non-controlling interest | (3,327) | (10,076) | ||
Net income (loss) attributable to the Company | $ 4,216 | $ 5,433 | $ (16,030) | $ (3,264) |
Earnings per share attributable to the Company: | ||||
Net income (loss) per common share, basic | $ 0.08 | $ 0.10 | $ (0.29) | $ (0.06) |
Shares used in computing basic net income (loss) per common share | 55,819 | 53,786 | 55,406 | 53,182 |
Net income (loss) per common share, diluted | $ 0.07 | $ 0.10 | $ (0.29) | $ (0.06) |
Shares used in computing diluted net income (loss) per common share | 57,457 | 55,540 | 55,406 | 53,182 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (16,030) | $ (13,340) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation expense | 35,924 | 30,780 |
Depreciation and amortization | 32,023 | 24,324 |
Deferred income taxes | 451 | 380 |
Change in estimated fair value of notes payable and other | 14,888 | |
Gain on disposition of certain consumer product assets | (400) | (750) |
Changes in assets and liabilities: | ||
Accounts receivable, net | (13,496) | (1,641) |
Inventories | 4,279 | (8,310) |
Prepaid expenses and other current assets | (1,364) | (749) |
Other assets | (212) | (534) |
Accounts payable | (3,107) | (5,014) |
Deferred revenue | 234 | (883) |
Accrued expenses and other current and non-current liabilities | 4,244 | (159) |
Net cash provided by operating activities | 42,546 | 38,992 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (26,932) | (11,972) |
Purchases of intangible assets | (5,268) | (3,230) |
Cash payments to common shareholders of Xpliant | (3,630) | |
Proceeds received from disposition of certain consumer product assets | 400 | 750 |
Sale of short-term investment | 1,000 | |
Net cash used in investing activities | (34,430) | (14,452) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon exercise of options | 8,537 | 13,640 |
Principal payment of capital lease and technology license obligations | (17,386) | (11,313) |
Proceeds from notes payable and other from non-controlling interest | 1,400 | |
Tax withholdings for stock option exercises on behalf of employees | 300 | |
Net cash provided by (used in) financing activities | (8,849) | 4,027 |
Net increase (decrease) in cash and cash equivalents | (733) | 28,567 |
Cash and cash equivalents, beginning of period | 131,718 | 127,763 |
Cash and cash equivalents, end of period | 130,985 | 156,330 |
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 | 3,071 | 4,850 |
Property and equipment and intangible assets acquired included in capital lease and technology license obligations | $ 4,501 | $ 4,809 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 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. and its wholly owned subsidiaries. Prior to the closing of the acquisition of Xpliant, Inc. (“Xpliant”) in April 2015 as discussed in Note 5 of Notes to Condensed Consolidated Financial Statements, the Company accounted for Xpliant as a variable interest entity, or VIE. 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 September 30, 2015 and 2014, and the condensed consolidated results of its operations for the three and nine months ended September 30, 2015 and 2014, and condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014. The results of operations for the three and nine months ended September 30, 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 July 2015, the Financial Accounting Standards Board, or FASB, issued an update to the standards to simplify the measurement of inventory. The updated standard more closely aligns the measurement of inventory with that of International Financial Reporting Standards and amends the measurement standard from lower of cost or market to lower of cost or net realizable value. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods during the annual period and requires a prospective approach to adoption. Early adoption is permitted. The Company does not expect that this new guidance will have a significant impact on its consolidated financial statements. In February 2015, the FASB 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 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, 2017, including interim periods during the annual period. Early adoption is allowed for annual reporting periods beginning after December 15, 2016. 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 Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | 2. Net Income (Loss) Per Common Share The following table sets forth the computation of net income (loss) per share: Three Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands, except per share data) Net income (loss) attributable to the Company $ 4,216 $ 5,433 $ (16,030 ) $ (3,264 ) Weighted average common shares outstanding - basic 55,819 53,786 55,406 53,182 Dilutive effect of employee stock plans 1,638 1,754 - - Weighted average common shares outstanding - diluted 57,457 55,540 55,406 53,182 Net income (loss) per common share, basic $ 0.08 $ 0.10 $ (0.29 ) $ (0.06 ) Net income (loss) per common share, diluted $ 0.07 $ 0.10 $ (0.29 ) $ (0.06 ) The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Options to purchase common stock 87 12 2,137 2,732 Restricted stock units - - 2,421 2,255 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements At September 30, 2015 and December 31, 2014, the Company’s cash equivalents comprised of an investment in a money market fund. In accordance with the guidance for fair value measurements and disclosures, the Company determined the fair value hierarchy of its money market fund and short-term bank deposit as Level 1, which approximated $97.2 million and $93.2 million as of September 30, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components Inventories As of September As of December (in thousands) Work-in-process $ 33,880 $ 37,207 Finished goods 13,765 14,715 $ 47,645 $ 51,922 Property and equipment, net As of September 30, 2015 As of December 31, 2014 (in thousands) Test equipment and mask costs $ 64,665 $ 50,591 Software, design tools, computer and other equipment 65,880 53,686 Furniture, office equipment and leasehold improvements 5,198 2,500 135,743 106,777 Less: accumulated depreciation and amortization (71,329 ) (49,814 ) $ 64,414 $ 56,963 Depreciation and amortization expense was $7.9 million and $4.9 million for the three months ended September 30, 2015 and 2014, respectively, and $24.7 million and $13.6 million for the nine months ended September 30, 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 $29.0 million and $35.8 million at September 30, 2015 and December 31, 2014, respectively. Amortization expense related to assets recorded under capital lease and certain financing agreements was $3.6 million and $2.3 million for the three months ended September 30, 2015 and 2014, respectively, and $11.0 million and $6.2 million for the nine months ended September 30, 2015 and 2014, respectively. Other accrued expenses and other current liabilities As of September 30, 2015 As of December 31, 2014 (in thousands) Accrued compensation and related benefits $ 5,347 $ 4,855 Professional fees 582 1,029 Accrued royalty 791 638 Manufacturing rights payable (Note 11) 3,750 - Income tax payable 603 451 Other 1,022 809 $ 12,095 $ 7,782 Warranty Accrual The following table presents a rollforward of the warranty liability, which is included within other accrued expenses and other current liabilities above: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Beginning balance $ 364 $ 157 $ 227 $ 167 Accruals and adjustments 76 318 332 455 Settlements (88 ) (267 ) (207 ) (414 ) Ending balance $ 352 $ 208 $ 352 $ 208 Deferred revenue As of September 30, 2015 As of December (in thousands) Services/support and maintenance $ 5,779 $ 5,769 Software license/subscription 740 516 $ 6,519 $ 6,285 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 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, 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 was a Delaware incorporated and privately held company, engaged in the design and development of next generation software defined network switch chips. Prior to the closing of the merger pursuant to the Merger Agreement between the Company and Xpliant as discussed below, the Company concluded that Xpliant was a VIE 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. The Company had made total cash advances of $85.8 million, consisting of $10.0 million under nine convertible notes which, as amended, matured on August 31, 2014 and $75.8 million under several promissory notes which matured between April 2015 and March 2016. All promissory notes were cancelled as of July 31, 2015. The convertible notes and promissory notes bore 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 closed 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. Therefore, the convertible notes and derivative features of convertible security were valued to two times its principal amount at its maturity date. As such, the Company recorded the change in estimated fair value of notes payable and other in the condensed consolidated statement of operations for the six months ended June 30, 2014 of $14.8 million. The Company recorded additional $0.1 million change in estimated fair value for the three months ended September 30, 2014 related to the time value of money. 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 that were hired by the Company. 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 that were hired by the Company. Prior to the closing of the merger pursuant to the Merger Agreement and the settlement of the outstanding convertible notes and convertible security to non-controlling interest, 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. Prior to the closing of the merger pursuant to the Merger Agreement, the net loss of Xpliant for the first quarter of 2015 of $24.4 million was included in the Company’s condensed consolidated statement of operations. Included in the net loss of Xpliant for the first quarter of 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). The Company’s portion of the net loss of Xpliant included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2014 amounted to $4.3 million and $23.9 million. Included in the Company’s portion of the net loss of Xpliant for the nine months ended September 30, 2014 was the change in estimated fair value of notes payable and other as discussed above. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 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 goodwill as of September 30, 2015 was $71.5 million, unchanged from the balance at December 31, 2014. Intangible assets, net As of September 30, 2015 Gross Accumulated Amortization Net Weighted average remaining amortization period (years) (in thousands) Technology licenses $ 70,656 (34,455 ) $ 36,201 6.39 Existing and core technology - product 42,085 (41,332 ) 753 1.24 Customer contracts and relationships 8,991 (8,991 ) - - Trade name 2,296 (2,296 ) - - Order backlog 640 (640 ) - - Total amortizable intangible assets $ 124,668 $ (87,714 ) $ 36,954 6.28 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 $2.1 million and $3.5 million for the three months ended September 30, 2015 and 2014, respectively, and $7.3 million and $10.8 million for the nine months ended September 30, 2015 and 2014, respectively. The estimated future amortization expense of amortizable intangible assets is as follows (in thousands): Remainder of 2015 $ 2,163 2016 8,126 2017 6,122 2018 4,730 2019 4,466 2020 and thereafter 11,347 $ 36,954 |
Restructuring Accrual
Restructuring Accrual | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Accrual | 7. Restructuring Accrual In connection with a workforce reduction during the first and second quarters of 2014, the Company incurred and substantially paid $0.6 million and $0.6 million, respectively, related to severance and other related benefits. In addition, during the second quarter of 2014, the Company recorded restructuring accrual of $0.2 million related to the unused portion of a leased facility in Beijing China, which leased expired in December 2014. There were no outstanding accrued restructuring payables as of September 30, 2015 and December 31, 2014, respectively. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2015: Number of Shares Outstanding Weighted Average Exercise Price Balance as of December 31, 2014 2,626,260 $ 20.62 Options granted 87,178 64.70 Options exercised (576,334 ) 14.81 Options cancelled and forfeited - - Balance as of September 30, 2015 2,137,104 23.99 No stock option was granted during the three months ended September 30, 2015 and 2014. The fair value of each option grant for the nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate - - 1.34% 1.26% Expected life - - 3.7 7 o 8 3.7 7 o 3 Dividend yield - - 0% 0% Volatility - - 40.96% 43.76% to 45.05% The estimated weighted-average grant date fair value of options granted for the nine months ended September 30, 2015 and 2014 was $23.79 per share and $14.63 per share, respectively. As of September 30, 2015, there was $4.1 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 2.17 years. The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the nine months ended September 30, 2015: Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance as of December 31, 2014 2,464,747 $ 39.21 Granted 927,902 61.49 Issued and released (892,113 ) 40.39 Cancelled and forfeited (79,945 ) 43.13 Balance as of September 30, 2015 2,420,591 47.19 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 for which the Company determined that the fair value of these performance RSU’s were $2.1 million and $0.7 million, respectively. Based on the Company’s evaluation of the probability of achieving the milestones as of September 30, 2015, no stock-based compensation was recorded related to the one-year performance-based RSU’s and recorded the related stock-based compensation expense for the three and nine months ended September 30, 2015 related to the two-year performance-based RSU’s. 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 are four-year vesting market-based RSU’s granted in February 2015. These market-based RSU’s will vest if: (i) 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 (ii) 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 and nine months ended September 30, 2015. As of September 30, 2015, there was $88.7 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 2.52 years. Stock-Based Compensation The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Cost of revenue $ 194 $ 239 $ 576 $ 726 Research and development 7,438 5,731 21,534 16,764 Sales, general and administrative 4,817 4,991 13,814 13,290 $ 12,449 $ 10,961 $ 35,924 $ 30,780 The total stock-based compensation cost capitalized as part of inventory as of September 30, 2015 and December 31, 2014 was not material. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 and nine months ended September, 2015 and 2014: Three Months Ended September Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Income (loss) before income taxes $ 4,582 $ 2,917 $ (14,702 ) $ (11,975 ) Provision for income taxes 366 811 1,328 1,365 Effective tax rate 8.0 % 27.8 % (9.0 )% (11.4 )% The provision for income taxes for the three and nine months ended September 30, 2015 and 2014 were primarily related to earnings in foreign jurisdictions. The difference between the provision for income taxes that would be derived by applying the statutory rate to the Company’s income (loss) before income taxes and the provision for income taxes recorded for the three and nine months ended September, 2015 and 2014 were primarily attributable to the difference in foreign tax rates and an increase in deferred tax liability related to the indefinite lived intangible assets. The Company’s net deferred tax assets relate predominantly to its U.S. 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 September 30, 2015. 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. 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 provision for income taxes and the annual effective tax rate did not consider the effects of the federal research and development credits. On July 27, 2015, the U.S. Tax Court in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015) issued an opinion with respect to Altera’s litigation with the Internal Revenue Service, concerning the treatment of stock-based compensation expense in an inter-company cost sharing arrangement. In ruling in favor of Altera, the Tax Court invalidated the portion of the Treasury regulations requiring the inclusion of stock-based compensation expense in such inter-company cost-sharing arrangements. Accordingly, the Company adjusted its inter-company arrangement to reflect the recent ruling. There was no significant impact on the Company’s consolidated financial statements as of and for the three and nine months ended September 30, 2015 considering the full valuation allowance on the Company’s federal and state net deferred tax assets. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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 September Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Enterprise network, data center and access and service provider markets $ 96,975 $ 88,135 $ 284,395 $ 247,767 Broadband and consumer markets 8,088 9,698 27,407 23,988 $ 105,063 $ 97,833 $ 311,802 $ 271,755 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) United States $ 29,370 $ 25,335 $ 98,586 $ 79,139 China 24,775 23,102 76,111 68,014 Mexico 10,030 8,410 28,034 17,662 Korea 9,665 12,670 22,385 22,255 Taiwan 8,965 7,777 25,519 22,106 Finland 8,013 12,225 24,465 35,130 Germany 5,269 1,697 11,389 5,881 Other countries 8,976 6,617 25,313 21,568 Total $ 105,063 $ 97,833 $ 311,802 $ 271,755 The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: As of September 30, 2015 As of December (in thousands) United States $ 56,829 $ 49,856 All other countries 7,584 7,107 Total $ 64,414 $ 56,963 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. 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 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 September 30, 2015 are as follows: Capital lease and technology license obligations Operating leases Total (in thousands) Remainder of 2015 $ 6,634 $ 2,242 $ 8,876 2016 17,936 8,864 26,800 2017 8,786 8,731 17,517 2018 1,075 8,929 10,004 2019 - 8,847 8,847 2020 thereafter - 23,135 23,135 $ 34,431 $ 60,748 $ 95,179 Less: Interest component (3.75% annual rate) 1,335 Present value of minimum lease payment 33,096 Current portion of the obligations $ 17,004 Long-term portion of obligations $ 16,092 Rent expense incurred under operating leases was $1.9 million and $1.5 million for the three months ended September 30, 2015 and 2014 In July 2015, the Company signed a purchase agreement with a third party vendor to acquire certain core software licenses amounting to $4.3 million, payable in 12 equal quarterly installments. The present value of the installment payments was capitalized and included within property and equipment and the related liability was included within capital lease and technology license obligations. In addition, the Company agreed to purchase additional combinations of core software licenses under a flexible spending program totaling $6.0 million for two years, with a minimum annual spend as specified in the agreement. On March 30, 2015, Xpliant exercised its option to purchase the manufacturing rights to accelerate the takeover of manufacturing, and to relieve Xpliant from any further obligation to purchase product quantities from Xpliant’s application specific integrated circuit, or ASIC, vendor. In consideration for this, Xpliant agreed to pay a $7.5 million manufacturing rights licensing fee and a per-unit royalty fee for certain ASIC products sold to certain customers for a limited time. The manufacturing rights licensing fee is payable in 4 equal quarterly payments, with the first installment payment due on April 29, 2015 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 sheets. During the second and third quarter of 2015, the Company paid the first and second installments due. On January 30, 2015, the Company submitted an initial notification of a voluntary self-disclosure to the U.S. Department of Commerce, Bureau of Industry and Security, or BIS. The notification reported the Company’s discovery that hardware and software, with encryption functionality, may have been exported without the required BIS export license. With the assistance of outside counsel, the Company conducted a review of past export transactions during the past five years, and on July 17, 2015, the Company reported its findings in a full voluntary self-disclosure to BIS. The findings reported that the Company exported certain encryption hardware and software to fifteen government end-users in the People’s Republic of China, Taiwan, Hong Kong, Singapore, India and South Korea, as well as one party on BIS' entity list, without the required BIS export license. The aggregate billings for the reported exports were approximately $0.5 million. The disclosure also addressed the Company’s remedial and corrective actions. BIS is reviewing the Company’s voluntary self-disclosure and the Company is cooperating fully with BIS. Violations of the export control laws may result in civil, administrative or criminal fines or penalties, loss of export privileges, debarment or a combination of these penalties. At this time the Company is unable to determine the outcome of the government’s investigation or its possible effect on the Company. |
Organization and Basis of Pre17
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 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. and its wholly owned subsidiaries. Prior to the closing of the acquisition of Xpliant, Inc. (“Xpliant”) in April 2015 as discussed in Note 5 of Notes to Condensed Consolidated Financial Statements, the Company accounted for Xpliant as a variable interest entity, or VIE. 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 September 30, 2015 and 2014, and the condensed consolidated results of its operations for the three and nine months ended September 30, 2015 and 2014, and condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014. The results of operations for the three and nine months ended September 30, 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 July 2015, the Financial Accounting Standards Board, or FASB, issued an update to the standards to simplify the measurement of inventory. The updated standard more closely aligns the measurement of inventory with that of International Financial Reporting Standards and amends the measurement standard from lower of cost or market to lower of cost or net realizable value. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods during the annual period and requires a prospective approach to adoption. Early adoption is permitted. The Company does not expect that this new guidance will have a significant impact on its consolidated financial statements. In February 2015, the FASB 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 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, 2017, including interim periods during the annual period. Early adoption is allowed for annual reporting periods beginning after December 15, 2016. 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 Income (Loss) Per Common 18
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of net income (loss) per share: Three Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands, except per share data) Net income (loss) attributable to the Company $ 4,216 $ 5,433 $ (16,030 ) $ (3,264 ) Weighted average common shares outstanding - basic 55,819 53,786 55,406 53,182 Dilutive effect of employee stock plans 1,638 1,754 - - Weighted average common shares outstanding - diluted 57,457 55,540 55,406 53,182 Net income (loss) per common share, basic $ 0.08 $ 0.10 $ (0.29 ) $ (0.06 ) Net income (loss) per common share, diluted $ 0.07 $ 0.10 $ (0.29 ) $ (0.06 ) |
Summary of Outstanding Options and Restricted Stock Units Excluded from Computation of Diluted Net Income (Loss) Per Common Share | The following outstanding options and restricted stock units were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Options to purchase common stock 87 12 2,137 2,732 Restricted stock units - - 2,421 2,255 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Inventories | Inventories As of September As of December (in thousands) Work-in-process $ 33,880 $ 37,207 Finished goods 13,765 14,715 $ 47,645 $ 51,922 |
Property and Equipment, Net | Property and equipment, net As of September 30, 2015 As of December 31, 2014 (in thousands) Test equipment and mask costs $ 64,665 $ 50,591 Software, design tools, computer and other equipment 65,880 53,686 Furniture, office equipment and leasehold improvements 5,198 2,500 135,743 106,777 Less: accumulated depreciation and amortization (71,329 ) (49,814 ) $ 64,414 $ 56,963 |
Other Accrued Expenses And Other Current Liabilities | Other accrued expenses and other current liabilities As of September 30, 2015 As of December 31, 2014 (in thousands) Accrued compensation and related benefits $ 5,347 $ 4,855 Professional fees 582 1,029 Accrued royalty 791 638 Manufacturing rights payable (Note 11) 3,750 - Income tax payable 603 451 Other 1,022 809 $ 12,095 $ 7,782 |
Warranty Accrual | The following table presents a rollforward of the warranty liability, which is included within other accrued expenses and other current liabilities above: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Beginning balance $ 364 $ 157 $ 227 $ 167 Accruals and adjustments 76 318 332 455 Settlements (88 ) (267 ) (207 ) (414 ) Ending balance $ 352 $ 208 $ 352 $ 208 |
Deferred Revenue | Deferred revenue As of September 30, 2015 As of December (in thousands) Services/support and maintenance $ 5,779 $ 5,769 Software license/subscription 740 516 $ 6,519 $ 6,285 |
Goodwill and Intangible Asset20
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible assets, net As of September 30, 2015 Gross Accumulated Amortization Net Weighted average remaining amortization period (years) (in thousands) Technology licenses $ 70,656 (34,455 ) $ 36,201 6.39 Existing and core technology - product 42,085 (41,332 ) 753 1.24 Customer contracts and relationships 8,991 (8,991 ) - - Trade name 2,296 (2,296 ) - - Order backlog 640 (640 ) - - Total amortizable intangible assets $ 124,668 $ (87,714 ) $ 36,954 6.28 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 of amortizable intangible assets is as follows (in thousands): Remainder of 2015 $ 2,163 2016 8,126 2017 6,122 2018 4,730 2019 4,466 2020 and thereafter 11,347 $ 36,954 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2015: Number of Shares Outstanding Weighted Average Exercise Price Balance as of December 31, 2014 2,626,260 $ 20.62 Options granted 87,178 64.70 Options exercised (576,334 ) 14.81 Options cancelled and forfeited - - Balance as of September 30, 2015 2,137,104 23.99 |
Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option - Pricing Model | No stock option was granted during the three months ended September 30, 2015 and 2014. The fair value of each option grant for the nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate - - 1.34% 1.26% Expected life - - 3.7 7 o 8 3.7 7 o 3 Dividend yield - - 0% 0% Volatility - - 40.96% 43.76% to 45.05% |
Summary of Activity of Restricted Stock | The following table summarizes the details related to restricted stock units, or RSUs, granted and outstanding under the 2007 Equity Incentive Plan for the nine months ended September 30, 2015: Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance as of December 31, 2014 2,464,747 $ 39.21 Granted 927,902 61.49 Issued and released (892,113 ) 40.39 Cancelled and forfeited (79,945 ) 43.13 Balance as of September 30, 2015 2,420,591 47.19 |
Detail of Stock-Based Compensation Expense | The following table presents the detail of stock-based compensation expense amounts included in the condensed consolidated statement of operations for each of the periods presented: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Cost of revenue $ 194 $ 239 $ 576 $ 726 Research and development 7,438 5,731 21,534 16,764 Sales, general and administrative 4,817 4,991 13,814 13,290 $ 12,449 $ 10,961 $ 35,924 $ 30,780 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September, 2015 and 2014: Three Months Ended September Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Income (loss) before income taxes $ 4,582 $ 2,917 $ (14,702 ) $ (11,975 ) Provision for income taxes 366 811 1,328 1,365 Effective tax rate 8.0 % 27.8 % (9.0 )% (11.4 )% |
Segment and Geographic Inform23
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Net Revenue by Markets | The net revenue by markets for the periods indicated was as follows: Three Months Ended September Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Enterprise network, data center and access and service provider markets $ 96,975 $ 88,135 $ 284,395 $ 247,767 Broadband and consumer markets 8,088 9,698 27,407 23,988 $ 105,063 $ 97,833 $ 311,802 $ 271,755 |
Sales by Geography | Sales by geography for the periods indicated were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) United States $ 29,370 $ 25,335 $ 98,586 $ 79,139 China 24,775 23,102 76,111 68,014 Mexico 10,030 8,410 28,034 17,662 Korea 9,665 12,670 22,385 22,255 Taiwan 8,965 7,777 25,519 22,106 Finland 8,013 12,225 24,465 35,130 Germany 5,269 1,697 11,389 5,881 Other countries 8,976 6,617 25,313 21,568 Total $ 105,063 $ 97,833 $ 311,802 $ 271,755 |
Long Lived Assets | The following table sets forth long lived assets, which consist of property and equipment, net by geographic regions: As of September 30, 2015 As of December (in thousands) United States $ 56,829 $ 49,856 All other countries 7,584 7,107 Total $ 64,414 $ 56,963 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 are as follows: Capital lease and technology license obligations Operating leases Total (in thousands) Remainder of 2015 $ 6,634 $ 2,242 $ 8,876 2016 17,936 8,864 26,800 2017 8,786 8,731 17,517 2018 1,075 8,929 10,004 2019 - 8,847 8,847 2020 thereafter - 23,135 23,135 $ 34,431 $ 60,748 $ 95,179 Less: Interest component (3.75% annual rate) 1,335 Present value of minimum lease payment 33,096 Current portion of the obligations $ 17,004 Long-term portion of obligations $ 16,092 |
Net Income (Loss) Per Common 25
Net Income (Loss) Per Common Share (Basic and Diluted Net Income (Loss) Per Common Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to the Company | $ 4,216 | $ 5,433 | $ (16,030) | $ (3,264) |
Weighted average common shares outstanding - basic | 55,819 | 53,786 | 55,406 | 53,182 |
Dilutive effect of employee stock plans | 1,638 | 1,754 | ||
Weighted average common shares outstanding - diluted | 57,457 | 55,540 | 55,406 | 53,182 |
Net income (loss) per common share, basic | $ 0.08 | $ 0.10 | $ (0.29) | $ (0.06) |
Net income (loss) per common share, diluted | $ 0.07 | $ 0.10 | $ (0.29) | $ (0.06) |
Net Income (Loss) Per Common 26
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) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | 87 | 12 | 2,137 | 2,732 |
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 | 2,421 | 2,255 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Money Market Funds And Short Term Bank Deposits | Fair Value, Inputs, Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 97.2 | $ 93.2 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Net [Abstract] | ||
Work-in-process | $ 33,880 | $ 37,207 |
Finished goods | 13,765 | 14,715 |
Inventories | $ 47,645 | $ 51,922 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment, Net) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 135,743 | $ 106,777 |
Less: accumulated depreciation and amortization | (71,329) | (49,814) |
Property and equipment, net | 64,414 | 56,963 |
Test Equipment and Mask Costs | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 64,665 | 50,591 |
Software, Design Tools, Computer and Other Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 65,880 | 53,686 |
Furniture, Office Equipment and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 5,198 | $ 2,500 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Depreciation and amortization expense | $ 7.9 | $ 4.9 | $ 24.7 | $ 13.6 | |
Capital lease and certain financing arrangements | 29 | 29 | $ 35.8 | ||
Amortization expense related to assets under capital lease and certain financing arrangements | $ 3.6 | $ 2.3 | $ 11 | $ 6.2 |
Balance Sheet Components (Other
Balance Sheet Components (Other Accrued Expenses and Other Current Liabilities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued compensation and related benefits | $ 5,347 | $ 4,855 |
Professional fees | 582 | 1,029 |
Accrued royalty | 791 | 638 |
Manufacturing rights payable (Note 11) | 3,750 | |
Income tax payable | 603 | 451 |
Other | 1,022 | 809 |
Accrued expenses and other current liabilities | $ 12,095 | $ 7,782 |
Balance Sheet Components (Warra
Balance Sheet Components (Warranty Accrual) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Product Warranty Accrual, Balance Sheet Classification [Abstract] | ||||
Beginning balance | $ 364 | $ 157 | $ 227 | $ 167 |
Accruals and adjustments | 76 | 318 | 332 | 455 |
Settlements | (88) | (267) | (207) | (414) |
Ending balance | $ 352 | $ 208 | $ 352 | $ 208 |
Balance Sheet Components (Defer
Balance Sheet Components (Deferred Revenue) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 6,519 | $ 6,285 |
Service / Support and Maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 5,779 | 5,769 |
Software License / Subscription | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 740 | $ 516 |
Business Combination (Narrative
Business Combination (Narrative) (Detail) - USD ($) $ in Thousands | Apr. 29, 2015 | Oct. 31, 2014 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2014 | Oct. 08, 2014 |
Business Acquisition [Line Items] | ||||||||||||
Cash advances in exchange for notes | $ 85,800 | |||||||||||
Change in estimated fair value of notes payable and other | $ (103) | $ (14,800) | $ (14,888) | |||||||||
Settlement to common shareholders of an acquired entity | $ 3,630 | |||||||||||
Net income (loss) | $ 4,216 | 5,433 | $ (16,030) | (3,264) | ||||||||
Xpliant | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Settlement to common shareholders of an acquired entity | $ 1,100 | $ 2,500 | ||||||||||
Business combination agreement date | Jul. 30, 2014 | |||||||||||
Original transaction agreement amended date | Oct. 8, 2014 | |||||||||||
Percentage of outstanding securities settled in amendment agreement | 30.00% | 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 | |||||||||||
Net income (loss) | $ (24,400) | $ (4,300) | $ (23,900) | |||||||||
Manufacturing rights licensing fee | $ 7,500 | |||||||||||
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 | Aug. 31, 2014 | |||||||||||
Promissory Notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash advances in exchange for notes | $ 75,800 | |||||||||||
Promissory note, cancellation date | Jul. 31, 2015 | |||||||||||
Promissory Notes | Minimum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Promissory note, maturity date | Apr. 29, 2015 | |||||||||||
Promissory Notes | Maximum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Promissory note, maturity date | Mar. 31, 2016 | |||||||||||
Several Convertible Note Receivable | Noncontrolling Interest | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interest rate on notes receivable | 6.00% | |||||||||||
Convertible notes receivable maturity date | Aug. 31, 2014 | |||||||||||
Cash advances in exchange for notes | $ 13,000 | |||||||||||
Notes payable and other | $ 2,900 | |||||||||||
Convertible note to third party investor paid by Variable Interest Entity | $ 1,000 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets, Net (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 71,478 | $ 71,478 | $ 71,478 | ||
Amortization expense | $ 2,100 | $ 3,500 | $ 7,300 | $ 10,800 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets, Net (Intangible Assets, Net) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | $ 124,668 | $ 118,014 |
Finite-lived intangible assets, Accumulated Amortization | (87,714) | (80,370) |
Finite-lived intangible assets, Net | $ 36,954 | $ 37,644 |
Weighted average remaining amortization period (years) | 6 years 3 months 11 days | 6 years 9 months 15 days |
Technology licenses | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | $ 70,656 | $ 64,002 |
Finite-lived intangible assets, Accumulated Amortization | (34,455) | (28,247) |
Finite-lived intangible assets, Net | $ 36,201 | $ 35,755 |
Weighted average remaining amortization period (years) | 6 years 4 months 21 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 | (41,332) | (40,264) |
Finite-lived intangible assets, Net | $ 753 | $ 1,821 |
Weighted average remaining amortization period (years) | 1 year 2 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 | (8,991) | (8,965) |
Finite-lived intangible assets, Net | $ 26 | |
Weighted average remaining amortization period (years) | 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 Asset37
Goodwill and Intangible Assets, Net (Estimated Future Amortization Expense from Amortizable Intangible Assets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $ 2,163 | |
2,016 | 8,126 | |
2,017 | 6,122 | |
2,018 | 4,730 | |
2,019 | 4,466 | |
2020 and thereafter | 11,347 | |
Finite-lived intangible assets, Net | $ 36,954 | $ 37,644 |
Restructuring Accrual (Narrativ
Restructuring Accrual (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | ||||
Lease expiration period | Oct. 1, 2022 | |||
Accrued restructuring related payables | $ 0 | $ 0 | ||
Severance And Other Benefits | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Additional restructuring accrual | $ 600,000 | $ 600,000 | ||
Excess Facility Related Cost | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Additional restructuring accrual | $ 200,000 | |||
Lease expiration period | Dec. 31, 2014 |
Stockholders Equity (Summary of
Stockholders Equity (Summary of Stock Options Granted and Outstanding) (Detail) - 2007 Equity Incentive Plan and 2001 Stock Incentive Plan - Employee Stock Option | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Outstanding, Beginning balance | shares | 2,626,260 |
Number of Shares Outstanding, Options granted | shares | 87,178 |
Number of Shares Outstanding, Options exercised | shares | (576,334) |
Number of Shares Outstanding, Ending balance | shares | 2,137,104 |
Weighted Average Exercise Price, Beginning balance | $ 20.62 |
Weighted Average Exercise Price, Options granted | 64.70 |
Weighted Average Exercise Price, Options exercised | 14.81 |
Weighted Average Exercise Price, Ending balance | $ 23.99 |
Stockholders Equity (Narrative)
Stockholders Equity (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of stock option granted | 0 | 0 | ||
Stock-based compensation expense | $ 12,449,000 | $ 10,961,000 | $ 35,924,000 | $ 30,780,000 |
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Estimated weighted-average grant date fair value of options granted | $ 23.79 | $ 14.63 | ||
Unrecognized compensation cost, net of estimated forfeitures | 4,100,000 | $ 4,100,000 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 2 years 2 months 1 day | |||
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost, net of estimated forfeitures | $ 88,700,000 | $ 88,700,000 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 2 years 6 months 7 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 | |||
Stock-based compensation expense | $ 0 | |||
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 | |||
Market-Performance Based RSU's | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
RSU's granted | $ 1,500,000 |
Stockholders Equity (Assumption
Stockholders Equity (Assumptions of Fair Value of Employee Option Grant Using Black-Scholes Option Pricing Model) (Detail) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.34% | 1.26% |
Expected life | 3 years 9 months 7 days | 3 years 9 months 7 days |
Volatility | 40.96% | 43.76% |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.41% | 1.47% |
Expected life | 4 years 6 months 29 days | 4 years 6 months 11 days |
Volatility | 43.03% | 45.05% |
Stockholders Equity (Summary 42
Stockholders Equity (Summary of Activity of Restricted Stock) (Detail) - 2007 Stock Incentive Plan - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 2,464,747 |
Number of Shares, Granted | shares | 927,902 |
Number of Shares, Issued and released | shares | (892,113) |
Number of Shares, Cancelled and forfeited | shares | (79,945) |
Number of Shares, Ending balance | shares | 2,420,591 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $ 39.21 |
Weighted-Average Grant Date Fair Value Per Share, Granted | 61.49 |
Weighted-Average Grant Date Fair Value Per Share, Issued and released | 40.39 |
Weighted-Average Grant Date Fair Value Per Share, Cancelled and forfeited | 43.13 |
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $ 47.19 |
Stockholders Equity (Detail of
Stockholders Equity (Detail of Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 12,449 | $ 10,961 | $ 35,924 | $ 30,780 |
Cost of revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 194 | 239 | 576 | 726 |
Research and development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 7,438 | 5,731 | 21,534 | 16,764 |
Sales, general and administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4,817 | $ 4,991 | $ 13,814 | $ 13,290 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes and Effective Tax Rates) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 4,582 | $ 2,917 | $ (14,702) | $ (11,975) |
Provision for income taxes | $ 366 | $ 811 | $ 1,328 | $ 1,365 |
Effective tax rate | 8.00% | 27.80% | (9.00%) | (11.40%) |
Segment and Geographic Inform45
Segment and Geographic Information - (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Geographic Inform46
Segment and Geographic Information (Net Revenue by Markets) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 105,063 | $ 97,833 | $ 311,802 | $ 271,755 |
Enterprise Network, Data Center and Access and Service Provider Markets | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 96,975 | 88,135 | 284,395 | 247,767 |
Broadband and Consumer Markets | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 8,088 | $ 9,698 | $ 27,407 | $ 23,988 |
Segment and Geographic Inform47
Segment and Geographic Information (Sales by Geography) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 105,063 | $ 97,833 | $ 311,802 | $ 271,755 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 29,370 | 25,335 | 98,586 | 79,139 |
China | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 24,775 | 23,102 | 76,111 | 68,014 |
Mexico | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 10,030 | 8,410 | 28,034 | 17,662 |
Korea | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 9,665 | 12,670 | 22,385 | 22,255 |
Taiwan | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 8,965 | 7,777 | 25,519 | 22,106 |
Finland | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 8,013 | 12,225 | 24,465 | 35,130 |
Germany | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 5,269 | 1,697 | 11,389 | 5,881 |
Other Countries | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 8,976 | $ 6,617 | $ 25,313 | $ 21,568 |
Segment and Geographic Inform48
Segment and Geographic Information (Long Lived Assets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 64,414 | $ 56,963 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 56,829 | 49,856 |
All Other Countries | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 7,584 | $ 7,107 |
Commitments and Contingencies49
Commitments and Contingencies (Narrative) (Detail) $ in Thousands | Jan. 30, 2015USD ($) | Jul. 31, 2015USD ($)Installments | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Mar. 30, 2015Installments |
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||||
Lease expiration period | Oct. 1, 2022 | |||||||
Operating leases, rent expense | $ 1,900 | $ 1,500 | $ 5,600 | $ 4,600 | ||||
Aggregate billings for the reported exports under exposure | $ 500 | |||||||
Xpliant | ||||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||||
Number of equal installments | Installments | 4 | |||||||
Manufacturing rights licensing fee | $ 7,500 | |||||||
License fee periodic payment description | The manufacturing rights licensing fee is payable in 4 equal quarterly payments, with the first installment payment due on April 29, 2015 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. | |||||||
Software License Acquisition | ||||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||||
Long-term purchase commitment, amount | $ 4,300 | |||||||
Number of equal installments | Installments | 12 | |||||||
Software License Acquisition | Flexible Spending Program | ||||||||
Disclosure Commitments And Contingencies Narrative Detail [Line Items] | ||||||||
Long-term purchase commitment, amount | $ 6,000 | |||||||
Settlement agreement payment frequency installment period | 2 years |
Commitments and Contingencies50
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Total capital lease, technology license and operating lease obligations | ||
Current portion of the obligations | $ 17,004 | $ 23,002 |
Long-term portion of obligations | 16,092 | $ 22,894 |
Total | 95,179 | |
Remainder of 2015 | 8,876 | |
2,016 | 26,800 | |
2,017 | 17,517 | |
2,018 | 10,004 | |
2,019 | 8,847 | |
2020 thereafter | 23,135 | |
Capital Lease and Technology License Obligations | ||
Total capital lease, technology license and operating lease obligations | ||
Remainder of 2015 | 6,634 | |
2,016 | 17,936 | |
2,017 | 8,786 | |
2,018 | 1,075 | |
Total | 34,431 | |
Less: Interest component (3.75% annual rate) | 1,335 | |
Present value of minimum lease payment | 33,096 | |
Operating Leases | ||
Total capital lease, technology license and operating lease obligations | ||
Remainder of 2015 | 2,242 | |
2,016 | 8,864 | |
2,017 | 8,731 | |
2,018 | 8,929 | |
2,019 | 8,847 | |
2020 thereafter | 23,135 | |
Total | $ 60,748 |
Commitments and Contingencies51
Commitments and Contingencies (Minimum Commitments Under Non-Cancelable Capital and Operating Leases and Technology License Obligations) (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Capital Lease and Technology License Obligations | |
Total capital lease, technology license and operating lease obligations | |
Interest component | 3.75% |