Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ssni | |
Entity Registrant Name | SILVER SPRING NETWORKS INC | |
Entity Central Index Key | 1,180,079 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,172,269 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 49,275 | $ 50,383 |
Short-term investments | 67,345 | 67,876 |
Accounts receivable | 48,401 | 44,770 |
Inventory | 5,529 | 8,040 |
Deferred cost of revenue | 208,841 | 194,769 |
Prepaid expenses and other current assets | 8,381 | 12,536 |
Total current assets | 387,772 | 378,374 |
Property and equipment, net | 27,451 | 28,986 |
Goodwill and intangible assets | 10,812 | 11,005 |
Deferred cost of revenue, non-current | 20,624 | 26,639 |
Deferred tax assets, non-current | 506 | 481 |
Other long-term assets | 2,400 | 1,643 |
Total assets | 449,565 | 447,128 |
Current liabilities: | ||
Accounts payable | 29,644 | 26,785 |
Deferred revenue | 322,859 | 292,260 |
Accrued and other liabilities | 34,605 | 44,146 |
Total current liabilities | 387,108 | 363,191 |
Deferred revenue, non-current | 80,315 | 93,149 |
Other liabilities | 24,797 | 22,324 |
Total liabilities | 492,220 | 478,664 |
Commitments and contingencies (Note 12) | ||
Stockholders’ deficit: | ||
Common stock, $0.001 par value; 1,000,000 shares authorized; 53,071 and 52,185 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively | 630,928 | 618,651 |
Accumulated other comprehensive loss | (2,095) | (2,113) |
Accumulated deficit | (671,488) | (648,074) |
Total stockholders’ deficit | (42,655) | (31,536) |
Total liabilities and stockholders’ deficit | $ 449,565 | $ 447,128 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 53,071,000 | 52,185,000 |
Common stock, shares outstanding | 53,071,000 | 52,185,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Product revenue | $ 26,528 | $ 32,852 |
Service revenue | 23,735 | 15,768 |
Total revenue | 50,263 | 48,620 |
Cost of revenue: | ||
Product cost of revenue | 16,027 | 15,980 |
Service cost of revenue | 17,323 | 15,643 |
Total cost of revenue | 33,350 | 31,623 |
Gross profit | 16,913 | 16,997 |
Operating expenses: | ||
Research and development | 18,641 | 15,485 |
Sales and marketing | 9,103 | 9,550 |
General and administrative | 12,266 | 10,846 |
Restructuring | 47 | 39 |
Total operating expenses | 40,057 | 35,920 |
Operating loss | (23,144) | (18,923) |
Other income (expense), net | 543 | 441 |
Loss before income taxes | (22,601) | (18,482) |
Provision for income taxes | (570) | (32) |
Net loss | $ (23,171) | $ (18,514) |
Net loss per share | ||
Basic | $ (0.44) | $ (0.36) |
Diluted | $ (0.44) | $ (0.36) |
Weighted average shares used to compute net loss per share | ||
Basic | 52,607 | 50,760 |
Diluted | 52,607 | 50,760 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (23,171) | $ (18,514) |
Other comprehensive (loss) income: | ||
Change in foreign currency translation (net of tax effect of $0 and $0) | (32) | (85) |
Net unrealized gain on available for sale investments (net of tax effect of $0 and $0) | 50 | 226 |
Other comprehensive income | 18 | 141 |
Comprehensive loss | $ (23,153) | $ (18,373) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Change in foreign currency translation, tax effect | $ 0 | $ 0 |
Net unrealized gain on available for sale investments, tax effect | $ 0 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (23,171) | $ (18,514) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Deferred taxes | (25) | |
Depreciation and amortization | 2,245 | 2,132 |
Stock-based compensation | 6,657 | 6,900 |
Other non-cash adjustments | 81 | 60 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,560) | 3,976 |
Inventory | 2,518 | 470 |
Prepaid expenses and other current assets | (480) | 2,208 |
Landlord incentives related to lease | 883 | |
Deferred cost of revenue | (8,001) | (8,804) |
Accounts payable | 3,395 | 613 |
Customer deposits | 64 | (5) |
Deferred revenue | 17,672 | 20,054 |
Accrued and other liabilities | 3,247 | (5,360) |
Net cash provided by operating activities | 1,525 | 3,730 |
Cash flows from investing activities: | ||
Proceeds from sales of available-for-sale investments | 4,833 | |
Proceeds from maturities of available-for-sale investments | 1,000 | 1,000 |
Purchases of available-for-sale investments | (500) | (3,439) |
Purchases of property and equipment | (1,077) | (4,485) |
Net cash used for investing activities | (577) | (2,091) |
Cash flows from financing activities: | ||
Payments on capital lease obligations | (144) | |
Proceeds from issuance of common stock | 2,546 | 1,888 |
Taxes paid related to net share settlement of equity awards | (4,546) | (334) |
Net cash (used for) provided by financing activities | (2,000) | 1,410 |
Effect of exchange rate changes on cash and cash equivalents | (56) | 98 |
Net (decrease) increase in cash and cash equivalents | (1,108) | 3,147 |
Cash and cash equivalents—beginning of period | 50,383 | 65,264 |
Cash and cash equivalents—end of period | 49,275 | 68,411 |
Supplemental cash flow information—cash paid for income taxes | 88 | 3,527 |
Non-cash investing activities: | ||
Unpaid purchases of property and equipment | $ 442 | $ 5,465 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Silver Spring Networks, Inc. (the “Company”, “we”, “us” and “our”) have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, for interim financial information as well as the instructions to Form 10-Q and applicable rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any future period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. The preparation of unaudited condensed consolidated financial statements necessarily requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the condensed consolidated balance sheet dates and the reported amounts of revenues and expenses for the periods presented. Actual results could differ materially from those estimates under different assumptions or conditions. As a result, the quarterly results may not be indicative of the full year results. The condensed consolidated financial statements include the accounts of Silver Spring Networks, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Prior Period Adjustments In the course of preparing the condensed consolidated financial statements for the quarter ended June 30, 2016, we determined that the cash provided from operating activities was understated and cash provided by investing activities was overstated by $2.3 million in the condensed consolidated statement of cash flows for the three months ended March 31, 2016, as included in our Form 10-Q for the quarter ended March 31, 2016. We performed the analysis required by Staff Accounting Bulletin 99, Materiality |
Significant Accounting Policies
Significant Accounting Policies and Estimates | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Estimates | 2. Significant Accounting Policies and Estimates There have been no material changes to our significant accounting policies described in Note 1, Description of Business, Basis of Presentation and Significant Accounting Policies Consolidated Financial Statements and Supplementary Data Accounting Standards Update, or ASU, No. 2016-09, Improvements to Employee Share-Based Payment Accounting, discussed below Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting • Income tax accounting – The recognition of previously unrecognized excess tax benefits using the modified retrospective method, which requires a cumulative-effect adjustment to accumulated deficit for previously unrecognized excess tax benefits. The only jurisdiction in which we had previously unrecognized excess tax benefits was in the United States. Since we maintain a full valuation allowance against our U.S. deferred tax assets, no adjustment to our accumulated deficit to reflect the recognition of excess tax benefits from prior years was required upon adoption of this new standard. The effects of recognizing these historical excess tax benefits increased our gross deferred tax assets by $9.1 million for federal and by $0.5 million for state, which were fully offset by the full valuation allowance against our U.S. deferred tax assets. As such, the adoption did not result in any change to our net U.S. deferred tax asset position. Tax benefits previously recorded in additional paid-in capital prior to the adoption of the guidance will remain in additional paid-in . • Cash flow presentation of excess tax benefits – This standard also requires excess tax benefits to be classified as an operating activity, consistent with other income tax cash flows, and may be applied either on a prospective transition or a retrospective transition method. We applied this standard using the prospective transition method, which had no impact to our condensed consolidated statement of cash flows for the three months ended March 31, 2017. • Forfeitures – This standard enabled us to make an election to change from estimating forfeitures to accounting for forfeitures when they occur. We adopted this change on a modified retrospective basis which resulted in us recording a cumulative effect change that increased our accumulated deficit by $0.2 million and increased our additional paid-in capital by the same amount. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or Revenue Recognition We anticipate the new standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for contingency provisions, certain software and software-related elements, and costs to obtain or fulfill a contract as explained below: • Contingency provisions. Contingency provisions currently limit the amount of the total arrangement consideration under multiple deliverable contracts that can be allocated to delivered and accepted products and services. Under the new standard, these provisions are considered variable consideration for which a probability estimate can be made. As a result, we will include in arrangement consideration the amounts expected rather than record deferred revenue for the full amount of the contingency until such provisions have lapsed. • Software and software-related elements under ASC 985-605. Under current GAAP, because we have not yet established VSOE for PCS or professional services, revenue for software and software-related elements under ASC 985-605 is recognized ratably over the longest service period. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software is eliminated under the new standard. Accordingly, under the new standard we will be able to recognize as revenue a portion of the arrangement fee upon delivery of the software. • Costs to obtain or fulfill a contract. We currently record sales commissions and costs of providing services in the period incurred. Under ASC 606, such incremental costs are required to be capitalized, then amortized on a basis that is consistent with the recognition of the products and services transferred to the customer. Therefore, we will be required to recognize an asset for such costs with the expense potentially recorded in a future period to match the transfer of products and services. Due to the complexity of our contracts, the actual revenue recognition treatment required under the new standard for our arrangements may be dependent on contract-specific terms and may vary in some instances. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 3. Net loss per share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding plus dilutive potential shares of common stock outstanding during the period. Dilutive consist of common shares issuable upon issuances of shares pursuant to the 2012 Employee Stock Purchase Plan, or ESPP, vesting of and contingently issuable We include the common shares underlying PSUs in the calculation of diluted net per share when they become contingently issuable and exclude such shares when they are not contingently issuable. Certain potential shares of common stock were excluded from the computation of diluted net per share because their effect would be anti-dilutive The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2017 2016 Net loss $ (23,171 ) $ (18,514 ) Net loss per share Basic $ (0.44 ) $ (0.36 ) Diluted $ (0.44 ) $ (0.36 ) Weighted average shares used to compute net loss per share Basic 52,607 50,760 Diluted 52,607 50,760 The following potential common shares outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands): Three Months Ended March 31, 2017 2016 Employee equity awards 7,245 7,177 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 3 Months Ended |
Mar. 31, 2017 | |
Cash Cash Equivalents And Short Term Investments [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | 4. Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments consisted of the following as of March 31, 2017 (in thousands): Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Current assets: Cash $ 47,240 $ — $ — $ 47,240 Cash equivalents: Money market mutual funds 2,035 — — 2,035 Total cash and cash equivalents 49,275 — — 49,275 Short-term fixed income securities: U.S. government and agency obligations 40,529 — (199 ) 40,330 U.S. and foreign corporate debt securities 27,090 3 (78 ) 27,015 Total short-term investments 67,619 3 (277 ) 67,345 Total cash, cash equivalents and short-term investments $ 116,894 $ 3 $ (277 ) $ 116,620 Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2016 (in thousands): Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Current assets: Cash $ 48,348 $ — $ — $ 48,348 Cash equivalents: Money market mutual funds 2,035 — — 2,035 Total cash and cash equivalents 50,383 — — 50,383 Short-term fixed income securities: U.S. government and agency obligations 40,565 — (209 ) 40,356 U.S. and foreign corporate debt securities 27,636 — (116 ) 27,520 Total short-term investments 68,201 — (325 ) 67,876 Total cash, cash equivalents and short-term investments $ 118,584 $ — $ (325 ) $ 118,259 As of March 31, 2017, approximately 81% and 9% of our cash, cash equivalents and short-term investments were held with two financial institutions, respectively. As of December 31, 2016, approximately 83% and 9% of our cash, cash equivalents and short-term investments were held with two financial institutions, respectively. Contractual Maturities The contractual maturities of cash equivalents and short-term investments consisted of the following (in thousands): As of March 31, 2017 As of December 31, 2016 Amortized Aggregate Amortized Aggregate Cost Basis Fair Value Cost Basis Fair Value Due within one year $ 33,399 $ 33,348 $ 19,017 $ 18,988 Due from 1 year through 3 years 36,255 36,032 51,219 50,923 Total cash equivalents and short-term investments $ 69,654 $ 69,380 $ 70,236 $ 69,911 The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2017 and December 31, 2016, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of March 31, 2017 As of December 31, 2016 Total (Less Than 12 Months) Total (Less Than 12 Months) Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. and foreign corporate debt securities $ 22,714 $ (78 ) $ 27,520 $ (116 ) U.S. government and agency obligations 40,330 (199 ) 40,356 (209 ) Total $ 63,044 $ (277 ) $ 67,876 $ (325 ) As of March 31, 2017 and December 31, 2016, there were no investments with unrealized losses for a period in excess of 12 months. We periodically review our marketable debt securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and our intent to sell. We also consider whether it is more likely than not that we will be required to (i) sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. As of March 31, 2017, we anticipate that we will recover the entire amortized cost basis of such available-for-sale debt securities and have determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three months ended March 31, 2017 and 2016. It is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases. There were insignificant gross realized gains or losses from available-for-sale securities during the three months ended March 31, 2017 and 2016. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements We determine the fair values of our financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. Under ASC Topic 820, Fair Value Measurement and Disclosures Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3—Unobservable inputs in which there is little or no market data, which requires us to develop our own assumptions. Level 1 measurements are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 measurements are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. We did not have any transfers of financial instruments between valuation levels during the three months ended March 31, 2017 and year ended December 31, 2016. Assets Measured at Fair Value on a Recurring Basis As of March 31, 2017, financial assets recorded at fair value on a recurring basis were determined using the following inputs (in thousands): Fair Value Measurement Using Quoted Prices in Significant Active Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Cash equivalents: Money-market funds $ 2,035 $ — $ — $ 2,035 Total cash equivalents 2,035 — — 2,035 Short-term investments: U.S. Government and agency obligations — 40,330 — 40,330 U.S. and foreign corporate debt securities — 27,015 — 27,015 Total short-term investments — 67,345 — 67,345 Total assets measured at fair value $ 2,035 $ 67,345 $ — $ 69,380 As of December 31, 2016, financial assets recorded at fair value on a recurring basis were determined using the following inputs (in thousands): Fair Value Measurement Using Quoted Prices in Significant Active Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Cash equivalents: Money market mutual funds $ 2,035 $ — $ — $ 2,035 Total cash equivalents 2,035 — — 2,035 Short-term investments: U.S. government and agency obligations — 40,356 — 40,356 U.S. and foreign corporate debt securities — 27,520 — 27,520 Total short-term investments — 67,876 — 67,876 Total assets measured at fair value $ 2,035 $ 67,876 $ — $ 69,911 As of March 31, 2017 and December 31, 2016, there were no liabilities that are measured and recorded at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis As of March 31, 2017 Our intangible assets are measured at fair value on a nonrecurring basis, if impairment is indicated. During the year ended December 31, 2016, intangible assets were measured at fair value that resulted in the recording of an impairment charge of $2.2 million. We measured the fair value of these assets primarily using discounted cash flow projections. The discounted cash flow projections require estimates for expected performance such as revenue, gross margin and operating expenses in order to discount the sum of future independent cash flows using discount rates. Intangible assets are classified as Level 3 assets due to the absence of quoted market prices. See Note 7, Goodwill and Intangibles Assets , for further information. As of March 31, 2017 and December 31, 2016, there were no assets and liabilities that were measured and recorded at fair value on a nonrecurring basis except for assets and liabilities valued on the date of acquisition for businesses acquired. Assets and Liabilities Not Measured at Fair Value The carrying amounts of our accounts receivable, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. |
Business Acquisition
Business Acquisition | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Acquisition | 6. Business Acquisition On January 16, 2015, we completed the acquisition of Detectent, Inc., or Detectent, a privately held corporation that provides customer intelligence solutions for utilities leveraging its data analytics platform, and paid $7.6 million in cash consideration. The acquisition of Detectent was accounted for under the acquisition method of accounting. We paid and held $4.0 million of deferred cash consideration, or contingent payments, in an escrow account, to be released over a two-year period subject to the retention of key employees of Detectent, or retention period. Contingent payments associated with future employment conditions were recorded as compensation expense over the retention period. We released $1.0 million from the escrow account in 2016, and released the remaining $3.0 million from the escrow account in February 2017, upon satisfaction of the retention terms of the acquisition agreement. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill: As of March 31, 2017 and December 31, 2016, the gross amount of goodwill was $8.8 million. Intangible Assets: The following table summarizes the gross carrying amount and accumulated amortization for the intangible assets resulting from acquisitions (in thousands): As of March 31, 2017 As of December 31, 2016 Useful Lives (in years) Gross Carrying Amount Accumulated Amortization Impairment Net Book Value Gross Carrying Amount Accumulated Amortization Impairment Net Book Value Purchased technology 4-6 years $ 4,865 $ 2,780 $ 882 $ 1,203 $ 4,865 $ 2,701 $ 882 $ 1,282 Customer relationships 4-7 years 3,640 1,648 $ 1,322 670 3,640 1,554 1,322 764 Trade name 6 years 369 202 — 167 369 182 — 187 Total $ 8,874 $ 4,630 $ 2,204 $ 2,040 $ 8,874 $ 4,437 $ 2,204 $ 2,233 Intangible assets subject to amortization are amortized over their useful lives as shown in the table above. The following table illustrates the amortization expense included in the condensed consolidated statements of operations for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, Amortization of purchased intangible assets: 2017 2016 Cost of revenue $ 79 $ 169 Sales and marketing 106 244 General and administrative 8 8 Total $ 193 $ 421 The estimated future amortization expense of purchased intangible assets with definite lives for the next five years is as follows (in thousands): Year Ended December 31, Amount Remainder of 2017 $ 577 2018 738 2019 378 2020 335 2021 12 2022 and thereafter — $ 2,040 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation Equity Incentive Plan and Employee Stock Purchase Plan As of March 31, 2017 and December 31, 2016, there were 8.2 million and 5.9 million shares, respectively, of common stock reserved for future grants under our ESPP and 2012 Equity Incentive Plan. Stock Option Activities The following table summarizes our stock option activity and related information for the three months ended March 31, 2017 as follows (in thousands, except per share data): Options Outstanding Weighted Weighted Average Average Exercise Remaining Aggregate Number of Price per Contractual Intrinsic Shares Share Term (years) Value Balance at December 31, 2016 4,008 $ 12.22 Options granted — — Options exercised (145 ) 1.85 Options cancelled or expired (17 ) 16.26 Balance at March 31, 2017 3,846 $ 12.59 5.00 $ 8,115 As of March 31, 2017 Options vested and expected to vest 3,846 $ 12.59 5.00 $ 8,115 Options exercisable 2,945 $ 12.41 3.93 $ 7,709 The aggregate intrinsic value disclosed above represents the total intrinsic value (the difference between the fair value of our common stock as of March 31, 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2017. This amount is subject to change based on changes to the fair value of our common stock. Restricted Stock Units Activities The following table summarizes our restricted stock units activity and related information for the three months ended March 31, 2017 as follows (in thousands, except per share data): Restricted Stock Units Outstanding Weighted Weighted Average Average Grant Remaining Aggregate Number of Date Fair Value Contractual Intrinsic Shares per Share Term Value Balance at December 31, 2016 3,531 $ 11.55 Restricted stock units granted 932 12.72 Restricted stock units vested (896 ) 12.73 Restricted stock units cancelled (169 ) 13.48 Performance stock units cancelled (100 ) 7.42 Balance at March 31, 2017 3,298 $ 11.59 1.25 $ 37,232 Stock-based Compensation We recorded stock-based compensation expense as follows (in thousands): Three Months Ended March 31, 2017 2016 Cost of revenue $ 1,806 $ 1,328 Research and development 2,058 2,025 Sales and marketing 506 831 General and administrative 2,287 2,716 Stock-based compensation expense $ 6,657 $ 6,900 Stock-based compensation related to our corporate bonus incentive plan was $2.4 million and $2.1 million for the three months ended March 31, 2017 and 2016, respectively. We recorded these amounts under accrued and other liabilities in our condensed consolidated balance sheets. The following table presents unrecognized compensation cost recognized over a weighted-average period related to unvested stock options, ESPP, RSUs and PSUs as of March 31, 2017 (in thousands, except year data): Weighted Unrecognized Average Compensation Period Cost (Years) Stock options $ 5.5 2.4 ESPP $ 0.6 0.4 RSUs and PSUs $ 27.6 2.3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The provision for income taxes reported for the three months ended March 31, 2017 is based on our projected annual effective tax rate for 2017, and includes certain immaterial discrete items recorded during the period. Our income tax provision for the three months ended March 31, 2017 and 2016 reflects an effective tax rate of (2.5%) and (0.2%), respectively. Our income tax expense for the three months ended March 31, 2017 primarily comprised of state taxes and foreign taxes associated with our foreign subsidiaries and foreign withholding taxes. We have not reported a provision for federal taxes in our consolidated financial statements since we project a taxable loss in the United States for 2017. Our state provision mainly arose from state minimum taxes. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information We operate in one reportable segment and we are organized as one reporting unit. Our chief operating decision makers are our Chief Executive Officer, or CEO, and Chief Financial Officer, or CFO, who review consolidated operating results to make decisions about allocating resources and assessing performance for the entire company. Revenue by geography is based on the billing address of the customer. The following table presents revenue by geographic region (in thousands): Three Months Ended March 31, 2017 2016 Revenue: United States $ 46,331 $ 45,222 Australia 1,947 2,136 All Other 1,985 1,262 Total $ 50,263 $ 48,620 Substantially all of our long-lived assets are located in the United States. |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Balance Sheet Details | 11. Inventory Inventory consisted of the following (in thousands): As of March 31, As of December 31, 2017 2016 Component parts $ 361 $ 221 Finished goods 5,168 7,819 Inventory $ 5,529 8,040 Inventory included consigned inventory of $1.4 million and $1.4 million as of March 31, 2017 and December 31, 2016, respectively. Accrued and Other Liabilities Accrued and other liabilities consisted of the following (in thousands): As of March 31, As of December 31, 2017 2016 Accrued payroll and related expenses $ 9,945 $ 23,506 Accrued operating expenses 1,661 4,771 Warranty obligations, current 3,942 4,569 Sales, property and income taxes 1,091 1,589 Other deferred revenue 17,135 9,292 Customer deposits 329 266 Other 502 153 Accrued and other liabilities $ 34,605 $ 44,146 Other Liabilities Other liabilities consisted of the following (in thousands): As of March 31, As of December 31, 2017 2016 Warranty obligations, non-current $ 1,566 $ 1,518 Other deferred revenue 12,384 9,573 Deferred rent, non-current 10,401 10,801 Other 446 432 Other liabilities $ 24,797 $ 22,324 Product Warranty Product warranty activity is as follows (in thousands): Three Months Ended March 31, 2017 Warranty obligation—beginning of period $ 6,087 Warranty expense for new warranties issued 86 Utilization of warranty obligation (704 ) Changes in estimates for pre-existing warranties 39 Warranty obligation—end of period $ 5,508 Accumulated Other Comprehensive Loss (AOCI), Net of Tax The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2017 are as follows (in thousands): Unrealized Gains Foreign Currency (Losses) on Available Adjustment for Sale Securities Total Balance as of December 31, 2016 $ (1,737 ) $ (376 ) $ (2,113 ) Other comprehensive (loss) income before reclassification (32 ) 50 18 Amounts reclassified from AOCI — — — Other comprehensive (loss) income (32 ) 50 18 Balance as of March 31, 2017 $ (1,769 ) $ (326 ) $ (2,095 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and contingencies Operating and Capital Leases Our primary operating lease commitment as of March 31, 2017, related to our headquarters in San Jose, California, requires monthly lease payments through September 2026. We recognize rent expense on a straight-line basis over the lease period. Where leases contain escalation clauses, rent abatements, or concessions, such as rent holidays and landlord or tenant incentives or allowances, we apply them in the determination of straight-line rent expense over the lease term. Rent expense for all facility leases was $2.0 million and $2.3 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, the future minimum commitments under our operating leases were as follows (in thousands): Operating Leases Remainder of 2017 $ 6,737 2018 9,033 2019 7,831 2020 7,284 2021 7,369 2022 and thereafter 34,157 Net minimum lease payments $ 72,411 Legal Contingencies EON Patent Litigation . In June 2011, EON Corp. IP Holdings, LLC, a non-producing entity, or EON, filed suit in United States District Court for the Eastern District of Texas, Tyler Division against us and a number of smart grid providers. The lawsuit alleges infringement of United States Patent Nos. 5,388,101, 5,481,546, and 5,592,491, or the EON Patents, by certain networking technology and services that we and the other defendants provide. Other defendants included Landis+Gyr AG (which was acquired by Toshiba Corporation), Aclara Power-Line Systems Inc., Elster Solutions, LLC, Itron, Inc. and Trilliant Networks Inc., all of which settled with EON prior to trial. We filed answers, affirmative defenses and counterclaims denying the plaintiff’s allegations and asserting that the plaintiff’s patents are invalid. A trial was held in June 2014. After the trial, the jury determined that we had infringed certain, but not all, of the claims under the EON Patents, and returned a verdict against us in the amount of $18.8 million. Following post-trial motions by both parties, the court reduced the damage award to approximately $13.0 million, and in December 2014, entered a final judgment in that amount plus approximately $1.5 million in pre-judgment interest. The court subsequently revised the final judgment to include additional costs of about $0.2 million and entered an amended final judgment in December 2014. All of the EON Patents have expired and therefore EON is not seeking, and EON may not recover, any additional sums as royalties for our sales of products going forward. In December 2014, we filed a notice of appeal with the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. In order to stay the execution of the final judgment pending the appeal, in December 2014 we filed a surety bond in the amount of $17.6 million, which includes an additional 20% of the final judgment for post-judgment interest and expenses expected to be incurred during the appeal process, in accordance with court rules. The bond was issued by Zurich Insurance and is collateralized with a standby letter of credit in the amount of $13.0 million, the amount of the damage award, as described in Customer Performance and Other Commitments. en banc Linex Patent Litigation . In March 2013, Linex Technologies, Inc., a non-producing entity, or Linex, filed suit against us in United States District Court for the Southern District of Florida. Linex alleged that certain of our networking technology infringes United States Patent Nos. 6,493,377 and 7,167,503. We filed an answer in May 2013. In January 2014, the court granted the plaintiff’s request for a stay of the matter, pending reexamination of the patents at issue by the USPTO. In September 2014, Linex amended certain patent claims and canceled certain other patent claims based upon the USPTO’s completed reexaminations, and in October 2014, the court lifted the stay of the matter. In January 2015, Linex filed an amended complaint to incorporate facts related to the completed reexaminations, and we filed an answer responding to the complaint and raising additional defenses. In June 2015, the court stayed the action pending the USPTO’s completion of further ex parte reexaminations of the patents at issue. We believe that we have meritorious defenses to Linex’s allegations and intend to continue vigorously defending against the action. Atlas/ComEd, Atlas/PG&E, and Atlas/FP&L Patent Litigation . In November 2015, Atlas IP, LLC filed separate suits against our customers Commonwealth Edison Company, or ComEd, and Pacific Gas and Electric Co., or PG&E alleging infringement of United States Patent No. 5,371,734 by communications between smart meters and access points over a neighborhood area network using wireless communication modules and networking equipment supplied by us. In May 2016, Atlas filed a similar suit against our customer Florida Power & Light Company, or FP&L. We have agreed to assume the defense in each of these suits. ComEd PG&E . FP&L . We believe that we have meritorious defenses to Atlas IP’s allegations in each of these matters, and intend to continue vigorously defending the actions. Acoustic Technology Patent Litigation. In July 2016, Acoustic Technology, Inc., a non-producing entity, filed suit in United States District Court for the Eastern District of Texas, Marshall Division against us. The lawsuit alleges infringement of United States Patent Nos. 5,986,574, and 6,509,841 by certain meters and networking technology and services that we provide. The patents will expire in late 2017 and early 2018. We filed a motion to dismiss, as well as a motion to transfer the matter to the Northern District of California, in September 2016. The motion to transfer was granted in March 2017. Also in March 2017, we filed several petitions for inter partes review with the USPTO, requesting the USPTO to find certain claims of the Acoustic Patents to be unpatentable. We believe that we have meritorious defenses to Acoustic’s allegations and intend to vigorously defend ourselves. In addition to the matters described above, from time to time we may be subject to other legal proceedings and claims in the ordinary course of business. We have received, and may in the future continue to receive, claims from third parties asserting infringement of their intellectual property rights. We may, from time to time, also be subject to various legal or government claims, disputes, or investigations. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, compliance or other matters. Future litigation may be necessary to defend ourselves and our customers by determining the scope, enforceability and validity of third-party rights or to establish our rights. There can be no assurance with respect to the outcome of any current or future litigation brought against us or pursuant to which we have indemnification obligations and the outcome could have a material adverse impact on our business, operating results and financial condition. As of March 31, 2017, we have not recorded any amounts for contingent losses associated with the matters described above based on our belief that losses, while reasonably possible, are not probable. Unless otherwise stated, we are currently unable to predict the final outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. We are directly involved with various unresolved legal actions and claims, and are indirectly involved with proceedings by administrative bodies such as public utility commissions, arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such legal actions and claims, individually or in the aggregate, would have a material effect on our consolidated financial statements. There are many uncertainties associated with any litigation or claim, and we cannot be certain that these actions or other third-party claims will be resolved without costly litigation, fines and/or substantial settlement payments. If that occurs, our business, financial condition and results of operations could be materially and adversely affected. If information becomes available that causes us to determine that a loss in any of our pending litigation matters, claims or settlements is probable, and a reasonable estimate of the loss associated with such events can be made, we will record the estimated loss at that time. Customer Performance and Other Commitments Certain customer agreements require us to obtain letters of credit or surety bonds in support of our obligations under such arrangements. These letters of credit or surety bonds typically provide a guarantee to the customer for future performance, which usually covers the deployment phase of a contract and may on occasion cover the operations and maintenance phase of service contracts. As of March 31, 2017 and December 31, 2016, we had a total of $12.0 million and $17.2 million, respectively, of standby letters of credit issued under a credit facility with a financial institution. As of March 31, 2017 and December 31, 2016, $0.5 million (AUD $0.6 million) and $4.6 million (AUD $6.1 million) of these standby letters of credit were denominated in Australian dollars, respectively, and $3.4 million (AED 12.4 million) and $4.5 million (AED 16.4 million) of these standby letters of credit were denominated in United Arab Emirates Dirham, respectively. In accordance with the terms of our credit facility, increases or decreases in the exchange rate between the Australian dollar and the U.S. dollar will increase or decrease the amount available to us under the credit facility. On December 18, 2015, we entered into a senior secured credit facilities credit agreement, or Credit Facility, with Silicon Valley Bank and HSBC Bank USA, National Association, or HSBC, which provides a revolving loan facility in an aggregate amount not to exceed $75.0 million, with an available letter of credit sub-facility in the aggregate amount of $75.0 million and an available swingline sub-facility in the aggregate amount of $5.0 million. As of March 31, 2017, there were no borrowings outstanding under the Credit Facility; however, this line of credit is backing $12.0 million of letters of credit, leaving $63.0 million of available capacity for cash borrowings or additional letters of credit or swingline loan, subject to compliance with financial covenants and other customary conditions to borrowings, which varies at each period end. As of March 31, 2017, we were in compliance with the financial covenants in the credit agreement. As of March 31, 2017, we had a $20.3 million unsecured surety bond. The surety bond provides a financial guarantee to support performance obligations under certain customer agreements. In the event any such letters of credit or surety bonds are called, we would be obligated to reimburse the issuer of the letters of credit or surety bond. We do not believe there will be any claims against currently outstanding letters of credit or surety bonds. Indemnification Commitments Directors, Officers and Employees . In accordance with our bylaws and/or pursuant to indemnification agreements we have entered into with directors, officers and certain employees, we have indemnification obligations to our directors, officers and employees for claims brought against these persons arising out of certain events or occurrences while they are serving at our request in such a capacity. We maintain a director and officer liability insurance coverage to reduce our exposure to such obligations, and payments made under these agreements. To date, there have been no indemnification claims by these directors, officers and employees. Customers and Third-Party Device Manufacturers . Refer to the discussion above under the heading Legal Contingencies for a description of our indemnification obligations. Our contracts with customers and third-party device manufacturers typically provide indemnification for claims filed by third-parties alleging that our products and services sold to the customer or manufacturer infringe or misappropriate any patent, copyright, trademark or other intellectual property right. In our customer contracts, we also typically provide an indemnification for third-party claims resulting from death, personal injury or property damage caused by the negligence or willful misconduct of our employees and agents in connection with the performance of certain contracts. Under our customer and third-party device manufacturer indemnities, we typically agree to defend the utility customer or third-party device manufacturer, as the case may be, from such claims, and pay any resulting costs, damages and attorneys’ fees awarded against the indemnified party with respect to such claims, provided that (a) the indemnified party promptly notifies us in writing of the claim, (b) the indemnified party provides reasonable assistance to us at our expense, and (c) we have sole control of the defense and all related settlement negotiations. Insurance . We maintain various insurance coverages, subject to policy limits, that enable us to recover a portion of any amounts paid by us in connection with our obligation to indemnify our customers and third-party device manufacturers. However, because our maximum liability associated with such indemnification obligations generally is not stated explicitly in the related agreements, and further because many states prohibit limitations of liability for such indemnified claims, the maximum potential amount of future payments we could be required to make under these indemnification provisions could significantly exceed insurance policy limits. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 13. RESTRUCTURING On March 10, 2017, we approved a restructuring plan designed to drive progress towards our long-term model and to better align investments to our growth and key businesses, such as continued global expansion, Starfish, and other smart city and IoT initiatives. As a result of the restructuring, we expect to adjust worldwide headcount and incur certain facility-related expenses, and currently estimate that we will incur pre-tax charges of approximately $2.7 to $3.5 million. This consists of approximately $2.0 to $2.5 million in severance and other one-time termination benefits, and approximately $0.7 to $1.0 million in facility-related expenses and other associated costs. These charges are expected to be primarily cash-based and paid over the next eighteen months. We expect to record the majority of the charges in 2017, and expect the restructuring activities to be substantially complete by the second quarter of 2018. We incurred less than $0.1 million in severance costs as restructuring charges under this plan during the three months ended March 31, 2017. |
Significant Accounting Polici21
Significant Accounting Policies and Estimates (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting • Income tax accounting – The recognition of previously unrecognized excess tax benefits using the modified retrospective method, which requires a cumulative-effect adjustment to accumulated deficit for previously unrecognized excess tax benefits. The only jurisdiction in which we had previously unrecognized excess tax benefits was in the United States. Since we maintain a full valuation allowance against our U.S. deferred tax assets, no adjustment to our accumulated deficit to reflect the recognition of excess tax benefits from prior years was required upon adoption of this new standard. The effects of recognizing these historical excess tax benefits increased our gross deferred tax assets by $9.1 million for federal and by $0.5 million for state, which were fully offset by the full valuation allowance against our U.S. deferred tax assets. As such, the adoption did not result in any change to our net U.S. deferred tax asset position. Tax benefits previously recorded in additional paid-in capital prior to the adoption of the guidance will remain in additional paid-in . • Cash flow presentation of excess tax benefits – This standard also requires excess tax benefits to be classified as an operating activity, consistent with other income tax cash flows, and may be applied either on a prospective transition or a retrospective transition method. We applied this standard using the prospective transition method, which had no impact to our condensed consolidated statement of cash flows for the three months ended March 31, 2017. • Forfeitures – This standard enabled us to make an election to change from estimating forfeitures to accounting for forfeitures when they occur. We adopted this change on a modified retrospective basis which resulted in us recording a cumulative effect change that increased our accumulated deficit by $0.2 million and increased our additional paid-in capital by the same amount. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or Revenue Recognition We anticipate the new standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for contingency provisions, certain software and software-related elements, and costs to obtain or fulfill a contract as explained below: • Contingency provisions. Contingency provisions currently limit the amount of the total arrangement consideration under multiple deliverable contracts that can be allocated to delivered and accepted products and services. Under the new standard, these provisions are considered variable consideration for which a probability estimate can be made. As a result, we will include in arrangement consideration the amounts expected rather than record deferred revenue for the full amount of the contingency until such provisions have lapsed. • Software and software-related elements under ASC 985-605. Under current GAAP, because we have not yet established VSOE for PCS or professional services, revenue for software and software-related elements under ASC 985-605 is recognized ratably over the longest service period. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software is eliminated under the new standard. Accordingly, under the new standard we will be able to recognize as revenue a portion of the arrangement fee upon delivery of the software. • Costs to obtain or fulfill a contract. We currently record sales commissions and costs of providing services in the period incurred. Under ASC 606, such incremental costs are required to be capitalized, then amortized on a basis that is consistent with the recognition of the products and services transferred to the customer. Therefore, we will be required to recognize an asset for such costs with the expense potentially recorded in a future period to match the transfer of products and services. Due to the complexity of our contracts, the actual revenue recognition treatment required under the new standard for our arrangements may be dependent on contract-specific terms and may vary in some instances. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2017 2016 Net loss $ (23,171 ) $ (18,514 ) Net loss per share Basic $ (0.44 ) $ (0.36 ) Diluted $ (0.44 ) $ (0.36 ) Weighted average shares used to compute net loss per share Basic 52,607 50,760 Diluted 52,607 50,760 |
Common Shares Outstanding were Excluded from Computation of Diluted Net Loss Per Share | The following potential common shares outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands): Three Months Ended March 31, 2017 2016 Employee equity awards 7,245 7,177 |
Cash, Cash Equivalents and Sh23
Cash, Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash Cash Equivalents And Short Term Investments [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, cash equivalents and short-term investments consisted of the following as of March 31, 2017 (in thousands): Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Current assets: Cash $ 47,240 $ — $ — $ 47,240 Cash equivalents: Money market mutual funds 2,035 — — 2,035 Total cash and cash equivalents 49,275 — — 49,275 Short-term fixed income securities: U.S. government and agency obligations 40,529 — (199 ) 40,330 U.S. and foreign corporate debt securities 27,090 3 (78 ) 27,015 Total short-term investments 67,619 3 (277 ) 67,345 Total cash, cash equivalents and short-term investments $ 116,894 $ 3 $ (277 ) $ 116,620 Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2016 (in thousands): Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Current assets: Cash $ 48,348 $ — $ — $ 48,348 Cash equivalents: Money market mutual funds 2,035 — — 2,035 Total cash and cash equivalents 50,383 — — 50,383 Short-term fixed income securities: U.S. government and agency obligations 40,565 — (209 ) 40,356 U.S. and foreign corporate debt securities 27,636 — (116 ) 27,520 Total short-term investments 68,201 — (325 ) 67,876 Total cash, cash equivalents and short-term investments $ 118,584 $ — $ (325 ) $ 118,259 |
Contractual Maturities of Cash Equivalents and Short-Term Investments | The contractual maturities of cash equivalents and short-term investments consisted of the following (in thousands): As of March 31, 2017 As of December 31, 2016 Amortized Aggregate Amortized Aggregate Cost Basis Fair Value Cost Basis Fair Value Due within one year $ 33,399 $ 33,348 $ 19,017 $ 18,988 Due from 1 year through 3 years 36,255 36,032 51,219 50,923 Total cash equivalents and short-term investments $ 69,654 $ 69,380 $ 70,236 $ 69,911 |
Schedule of Gross Unrealized Losses and Fair Values of Investments | The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2017 and December 31, 2016, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of March 31, 2017 As of December 31, 2016 Total (Less Than 12 Months) Total (Less Than 12 Months) Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. and foreign corporate debt securities $ 22,714 $ (78 ) $ 27,520 $ (116 ) U.S. government and agency obligations 40,330 (199 ) 40,356 (209 ) Total $ 63,044 $ (277 ) $ 67,876 $ (325 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets Recorded on Recurring Basis | As of March 31, 2017, financial assets recorded at fair value on a recurring basis were determined using the following inputs (in thousands): Fair Value Measurement Using Quoted Prices in Significant Active Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Cash equivalents: Money-market funds $ 2,035 $ — $ — $ 2,035 Total cash equivalents 2,035 — — 2,035 Short-term investments: U.S. Government and agency obligations — 40,330 — 40,330 U.S. and foreign corporate debt securities — 27,015 — 27,015 Total short-term investments — 67,345 — 67,345 Total assets measured at fair value $ 2,035 $ 67,345 $ — $ 69,380 As of December 31, 2016, financial assets recorded at fair value on a recurring basis were determined using the following inputs (in thousands): Fair Value Measurement Using Quoted Prices in Significant Active Markets for Other Significant Identical Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Total Cash equivalents: Money market mutual funds $ 2,035 $ — $ — $ 2,035 Total cash equivalents 2,035 — — 2,035 Short-term investments: U.S. government and agency obligations — 40,356 — 40,356 U.S. and foreign corporate debt securities — 27,520 — 27,520 Total short-term investments — 67,876 — 67,876 Total assets measured at fair value $ 2,035 $ 67,876 $ — $ 69,911 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table summarizes the gross carrying amount and accumulated amortization for the intangible assets resulting from acquisitions (in thousands): As of March 31, 2017 As of December 31, 2016 Useful Lives (in years) Gross Carrying Amount Accumulated Amortization Impairment Net Book Value Gross Carrying Amount Accumulated Amortization Impairment Net Book Value Purchased technology 4-6 years $ 4,865 $ 2,780 $ 882 $ 1,203 $ 4,865 $ 2,701 $ 882 $ 1,282 Customer relationships 4-7 years 3,640 1,648 $ 1,322 670 3,640 1,554 1,322 764 Trade name 6 years 369 202 — 167 369 182 — 187 Total $ 8,874 $ 4,630 $ 2,204 $ 2,040 $ 8,874 $ 4,437 $ 2,204 $ 2,233 |
Schedule of Amortization Expense | The following table illustrates the amortization expense included in the condensed consolidated statements of operations for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, Amortization of purchased intangible assets: 2017 2016 Cost of revenue $ 79 $ 169 Sales and marketing 106 244 General and administrative 8 8 Total $ 193 $ 421 |
Schedule of Estimated Future Amortization Expense | The estimated future amortization expense of purchased intangible assets with definite lives for the next five years is as follows (in thousands): Year Ended December 31, Amount Remainder of 2017 $ 577 2018 738 2019 378 2020 335 2021 12 2022 and thereafter — $ 2,040 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes our stock option activity and related information for the three months ended March 31, 2017 as follows (in thousands, except per share data): Options Outstanding Weighted Weighted Average Average Exercise Remaining Aggregate Number of Price per Contractual Intrinsic Shares Share Term (years) Value Balance at December 31, 2016 4,008 $ 12.22 Options granted — — Options exercised (145 ) 1.85 Options cancelled or expired (17 ) 16.26 Balance at March 31, 2017 3,846 $ 12.59 5.00 $ 8,115 As of March 31, 2017 Options vested and expected to vest 3,846 $ 12.59 5.00 $ 8,115 Options exercisable 2,945 $ 12.41 3.93 $ 7,709 |
Summary of Restricted Stock Units Activity | The following table summarizes our restricted stock units activity and related information for the three months ended March 31, 2017 as follows (in thousands, except per share data): Restricted Stock Units Outstanding Weighted Weighted Average Average Grant Remaining Aggregate Number of Date Fair Value Contractual Intrinsic Shares per Share Term Value Balance at December 31, 2016 3,531 $ 11.55 Restricted stock units granted 932 12.72 Restricted stock units vested (896 ) 12.73 Restricted stock units cancelled (169 ) 13.48 Performance stock units cancelled (100 ) 7.42 Balance at March 31, 2017 3,298 $ 11.59 1.25 $ 37,232 |
Stock-Based Compensation Expense | We recorded stock-based compensation expense as follows (in thousands): Three Months Ended March 31, 2017 2016 Cost of revenue $ 1,806 $ 1,328 Research and development 2,058 2,025 Sales and marketing 506 831 General and administrative 2,287 2,716 Stock-based compensation expense $ 6,657 $ 6,900 |
Schedule of Unrecognized Compensation Cost Recognized over Weighted-Average Period | Weighted Unrecognized Average Compensation Period Cost (Years) Stock options $ 5.5 2.4 ESPP $ 0.6 0.4 RSUs and PSUs $ 27.6 2.3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | The following table presents revenue by geographic region (in thousands): Three Months Ended March 31, 2017 2016 Revenue: United States $ 46,331 $ 45,222 Australia 1,947 2,136 All Other 1,985 1,262 Total $ 50,263 $ 48,620 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Component Details [Abstract] | |
Components of Inventory | Inventory consisted of the following (in thousands): As of March 31, As of December 31, 2017 2016 Component parts $ 361 $ 221 Finished goods 5,168 7,819 Inventory $ 5,529 8,040 |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities consisted of the following (in thousands): As of March 31, As of December 31, 2017 2016 Accrued payroll and related expenses $ 9,945 $ 23,506 Accrued operating expenses 1,661 4,771 Warranty obligations, current 3,942 4,569 Sales, property and income taxes 1,091 1,589 Other deferred revenue 17,135 9,292 Customer deposits 329 266 Other 502 153 Accrued and other liabilities $ 34,605 $ 44,146 |
Schedule of Other Liabilities | Other liabilities consisted of the following (in thousands): As of March 31, As of December 31, 2017 2016 Warranty obligations, non-current $ 1,566 $ 1,518 Other deferred revenue 12,384 9,573 Deferred rent, non-current 10,401 10,801 Other 446 432 Other liabilities $ 24,797 $ 22,324 |
Schedule of Product Warranty Activity | Product warranty activity is as follows (in thousands): Three Months Ended March 31, 2017 Warranty obligation—beginning of period $ 6,087 Warranty expense for new warranties issued 86 Utilization of warranty obligation (704 ) Changes in estimates for pre-existing warranties 39 Warranty obligation—end of period $ 5,508 |
Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2017 are as follows (in thousands): Unrealized Gains Foreign Currency (Losses) on Available Adjustment for Sale Securities Total Balance as of December 31, 2016 $ (1,737 ) $ (376 ) $ (2,113 ) Other comprehensive (loss) income before reclassification (32 ) 50 18 Amounts reclassified from AOCI — — — Other comprehensive (loss) income (32 ) 50 18 Balance as of March 31, 2017 $ (1,769 ) $ (326 ) $ (2,095 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Commitments Under Operating Leases | As of March 31, 2017, the future minimum commitments under our operating leases were as follows (in thousands): Operating Leases Remainder of 2017 $ 6,737 2018 9,033 2019 7,831 2020 7,284 2021 7,369 2022 and thereafter 34,157 Net minimum lease payments $ 72,411 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Basis Of Presentation [Line Items] | |||
Cash provided from operating activities understated | $ 1,525 | $ 3,730 | |
Cash provided by investing activities overstated | $ (577) | $ (2,091) | |
Restatement Adjustment [Member] | |||
Basis Of Presentation [Line Items] | |||
Cash provided from operating activities understated | $ 2,300 | ||
Cash provided by investing activities overstated | $ (2,300) |
Significant Accounting Polici31
Significant Accounting Policies and Estimates (Narrative) (Detail) - ASU No. 2016-09 [Member] - USD ($) $ in Millions | Jan. 02, 2017 | Mar. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Increase in accumulated deficit | $ 0.2 | |
Increase in additional paid-in capital | $ 0.2 | |
Federal [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Increase in gross deferred tax assets | $ 9.1 | |
State [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Increase in gross deferred tax assets | $ 0.5 |
Net Loss Per Share (Computation
Net Loss Per Share (Computation of Basic and Diluted Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (23,171) | $ (18,514) |
Net loss per share | ||
Basic | $ (0.44) | $ (0.36) |
Diluted | $ (0.44) | $ (0.36) |
Weighted average shares used to compute net loss per share | ||
Basic | 52,607 | 50,760 |
Diluted | 52,607 | 50,760 |
Net Loss Per Share (Common Shar
Net Loss Per Share (Common Shares Outstanding were Excluded from Computation of Diluted Net Loss Per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Employee equity awards [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total common stock equivalents | 7,245 | 7,177 |
Cash, Cash Equivalents and Sh34
Cash, Cash Equivalents and Short-Term Investments (Cash, Cash Equivalents and Short-Term Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash, amortized cost and estimated fair value | $ 47,240 | $ 48,348 | ||
Cash and cash equivalents | 49,275 | 50,383 | $ 68,411 | $ 65,264 |
Total short-term investments, unrealized gains | 3 | |||
Total short-term investments, unrealized losses | (277) | (325) | ||
Total cash, cash equivalents and short-term investments, amortized cost | 116,894 | 118,584 | ||
Total cash, cash equivalents and short-term investments, estimated fair value | 116,620 | 118,259 | ||
U.S. Government And Agency Obligations [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Total short-term investments, estimated fair value | 40,330 | 40,356 | ||
U.S. And Foreign Corporate Debt Securities [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Total short-term investments, estimated fair value | 27,015 | 27,520 | ||
Short-Term Fixed Income Securities [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Total short-term investments, amortized cost | 67,619 | 68,201 | ||
Total short-term investments, unrealized gains | 3 | |||
Total short-term investments, unrealized losses | (277) | (325) | ||
Total short-term investments, estimated fair value | 67,345 | 67,876 | ||
Short-Term Fixed Income Securities [Member] | U.S. Government And Agency Obligations [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Total short-term investments, amortized cost | 40,529 | 40,565 | ||
Total short-term investments, unrealized losses | (199) | (209) | ||
Total short-term investments, estimated fair value | 40,330 | 40,356 | ||
Short-Term Fixed Income Securities [Member] | U.S. And Foreign Corporate Debt Securities [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Total short-term investments, amortized cost | 27,090 | 27,636 | ||
Total short-term investments, unrealized gains | 3 | |||
Total short-term investments, unrealized losses | (78) | (116) | ||
Total short-term investments, estimated fair value | 27,015 | 27,520 | ||
Money market mutual funds [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | $ 2,035 | $ 2,035 |
Cash, Cash Equivalents and Sh35
Cash, Cash Equivalents and Short-Term Investments (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)FinancialInstitution | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)FinancialInstitution | |
Cash and Cash Equivalents [Line Items] | |||
Number of financial institutions | FinancialInstitution | 2 | 2 | |
Investments with unrealized losses for a period in excess of 12 months | $ 0 | $ 0 | |
Other-than-temporary impairments | $ 0 | $ 0 | |
Financial Institution One [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Percentage of cash, cash equivalents, and short-term investments held in financial institutions | 81.00% | 83.00% | |
Financial Institution Two [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Percentage of cash, cash equivalents, and short-term investments held in financial institutions | 9.00% | 9.00% |
Cash, Cash Equivalents and Sh36
Cash, Cash Equivalents and Short-Term Investments (Contractual Maturities of Cash Equivalents and Short-Term Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||
Due within one year, Amortized Cost Basis | $ 33,399 | $ 19,017 |
Due from 1 year through 3 years, Amortized Cost Basis | 36,255 | 51,219 |
Total cash equivalents and short-term investments, Amortized Cost Basis | 69,654 | 70,236 |
Due within one year, Aggregate Fair Value | 33,348 | 18,988 |
Due from 1 year through 3 years, Aggregate Fair Value | 36,032 | 50,923 |
Total cash equivalents and short-term investments, Aggregate Fair Value | $ 69,380 | $ 69,911 |
Cash, Cash Equivalents and Sh37
Cash, Cash Equivalents and Short-Term Investments (Schedule of Gross Unrealized Losses and Fair Values of Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Total (Less Than 12 Months) | $ 63,044 | $ 67,876 |
Unrealized Loss, Total (Less Than 12 Months) | (277) | (325) |
U.S. And Foreign Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Total (Less Than 12 Months) | 22,714 | 27,520 |
Unrealized Loss, Total (Less Than 12 Months) | (78) | (116) |
U.S. Government And Agency Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Total (Less Than 12 Months) | 40,330 | 40,356 |
Unrealized Loss, Total (Less Than 12 Months) | $ (199) | $ (209) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 69,380 | $ 69,911 |
U.S. Government And Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | 40,330 | 40,356 |
U.S. And Foreign Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | 27,015 | 27,520 |
Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,035 | 2,035 |
Cash Equivalents [Member] | Money market mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,035 | 2,035 |
Short-Term Fixed Income Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | 67,345 | 67,876 |
Short-Term Fixed Income Securities [Member] | U.S. Government And Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | 40,330 | 40,356 |
Short-Term Fixed Income Securities [Member] | U.S. And Foreign Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | 27,015 | 27,520 |
Quoted Prices In Active Markets For Identical Instruments (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 2,035 | 2,035 |
Quoted Prices In Active Markets For Identical Instruments (Level 1) [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,035 | 2,035 |
Quoted Prices In Active Markets For Identical Instruments (Level 1) [Member] | Cash Equivalents [Member] | Money market mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,035 | 2,035 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 67,345 | 67,876 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government And Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | 40,330 | 40,356 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. And Foreign Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | 27,015 | 27,520 |
Significant Other Observable Inputs (Level 2) [Member] | Short-Term Fixed Income Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments, estimated fair value | $ 67,345 | $ 67,876 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Financial Assets Recorded on Recurring Basis) (Narrative) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Financial liabilities recorded at fair value on recurring basis | $ 0 | $ 0 |
Fair Value Measurements (Fair40
Fair Value Measurements (Fair Value of Financial Assets and Liabilities Measured on Nonrecurring Basis) (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities recorded at fair value on nonrecurring basis | $ 0 | $ 0 |
Impairment of intangible assets | 2,204,000 | 2,204,000 |
Financial assets recorded at fair value on nonrecurring basis | $ 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of intangible assets | $ 2,200,000 |
Business Acquisition (Narrative
Business Acquisition (Narrative) (Details) - Detectent Inc. [Member] - USD ($) $ in Millions | Jan. 16, 2015 | Feb. 28, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Cash consideration | $ 7.6 | |||
Contingent payments | $ 4 | |||
Retention period | 2 years | |||
Escrow account upon satisfaction of retention terms of the agreement | $ 3 | $ 1 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill gross | $ 8.8 | $ 8.8 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Intangible Assets [Line Items] | ||
Purchased intangible assets with finite lives, Gross Carrying Amount | $ 8,874 | $ 8,874 |
Purchased intangible assets with finite lives, Accumulated Amortization | 4,630 | 4,437 |
Purchased intangible assets with finite lives, Impairment | 2,204 | 2,204 |
Purchased intangible assets with finite lives, Net Book Value | 2,040 | 2,233 |
Purchased Technology [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Purchased intangible assets with finite lives, Gross Carrying Amount | 4,865 | 4,865 |
Purchased intangible assets with finite lives, Accumulated Amortization | 2,780 | 2,701 |
Purchased intangible assets with finite lives, Impairment | 882 | 882 |
Purchased intangible assets with finite lives, Net Book Value | 1,203 | 1,282 |
Customer Relationships [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Purchased intangible assets with finite lives, Gross Carrying Amount | 3,640 | 3,640 |
Purchased intangible assets with finite lives, Accumulated Amortization | 1,648 | 1,554 |
Purchased intangible assets with finite lives, Impairment | 1,322 | 1,322 |
Purchased intangible assets with finite lives, Net Book Value | $ 670 | 764 |
Trade Name [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Useful Lives (in years) | 6 years | |
Purchased intangible assets with finite lives, Gross Carrying Amount | $ 369 | 369 |
Purchased intangible assets with finite lives, Accumulated Amortization | 202 | 182 |
Purchased intangible assets with finite lives, Net Book Value | $ 167 | $ 187 |
Minimum [Member] | Purchased Technology [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Useful Lives (in years) | 4 years | |
Minimum [Member] | Customer Relationships [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Useful Lives (in years) | 4 years | |
Maximum [Member] | Purchased Technology [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Useful Lives (in years) | 6 years | |
Maximum [Member] | Customer Relationships [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Useful Lives (in years) | 7 years |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets (Schedule of Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 193 | $ 421 |
Cost of Revenue [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 79 | 169 |
Sales and Marketing [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 106 | 244 |
General and Administrative [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 8 | $ 8 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets (Schedule of Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 577 | |
2,018 | 738 | |
2,019 | 378 | |
2,020 | 335 | |
2,021 | 12 | |
Purchased intangible assets with finite lives, Net Book Value | $ 2,040 | $ 2,233 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6,657 | $ 6,900 | |
ESPP and 2012 Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock shares reserved for issuance | 8.2 | 5.9 | |
Corporate Bonus Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,400 | $ 2,100 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Beginning balance | shares | 4,008 |
Number of Shares, Options exercised | shares | (145) |
Number of Shares, Options cancelled or expired | shares | (17) |
Number of Shares, Ending balance | shares | 3,846 |
Number of Shares, Options vested and expected to vest | shares | 3,846 |
Number of Shares, Options exercisable | shares | 2,945 |
Weighted Average Exercise Price per Share, Beginning balance | $ / shares | $ 12.22 |
Weighted Average Exercise Price per Share, Options exercised | $ / shares | 1.85 |
Weighted Average Exercise Price per Share, Options cancelled or expired | $ / shares | 16.26 |
Weighted Average Exercise Price per Share, Ending balance | $ / shares | 12.59 |
Weighted Average Exercise Price per Share, Options vested and expected to vest | $ / shares | 12.59 |
Weighted Average Exercise Price per Share, Options exercisable | $ / shares | $ 12.41 |
Weighted Average Remaining Contractual Term (years), Ending balance | 5 years |
Weighted Average Remaining Contractual Term (years), Options vested and expected to vest | 5 years |
Weighted Average Remaining Contractual Term (years), Options exercisable | 3 years 11 months 5 days |
Aggregate Intrinsic Value, Ending balance | $ | $ 8,115 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 8,115 |
Aggregate Intrinsic Value, Option exercisable | $ | $ 7,709 |
Stock-Based Compensation (Sum48
Stock-Based Compensation (Summary of Restricted Stock Units Activity) (Details) - Restricted stock units [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 3,531 |
Number of Shares, Restricted stock units granted | shares | 932 |
Number of Shares, Restricted stock units vested | shares | (896) |
Number of Shares, Restricted stock units cancelled | shares | (169) |
Number of Shares, Performance stock units cancelled | shares | (100) |
Number of Shares, Ending balance | shares | 3,298 |
Weighted Average Grant Date Fair Value per Share, Beginning balance | $ / shares | $ 11.55 |
Weighted Average Grant Date Fair Value per Share, Restricted stock units granted | $ / shares | 12.72 |
Weighted Average Grant Date Fair Value per Share, Restricted stock units vested | $ / shares | 12.73 |
Weighted Average Grant Date Fair Value per Share, Restricted stock units cancelled | $ / shares | 13.48 |
Weighted Average Grant Date Fair Value per Share, Performance stock units cancelled | $ / shares | 7.42 |
Weighted Average Grant Date Fair Value per Share, Ending balance | $ / shares | $ 11.59 |
Weighted Average Remaining Contractual Term (years), Ending balance | 1 year 3 months |
Aggregate Intrinsic Value, Ending balance | $ | $ 37,232 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 6,657 | $ 6,900 |
Cost of Revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,806 | 1,328 |
Research And Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 2,058 | 2,025 |
Sales And Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 506 | 831 |
General And Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 2,287 | $ 2,716 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Unrecognized Compensation Cost Recognized over Weighted-Average Period (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Compensation cost | $ 5,500 |
Weighted Average Period | 2 years 4 months 24 days |
ESPP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Compensation cost | $ 600 |
Weighted Average Period | 4 months 24 days |
RSUs, and PSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Compensation cost | $ 27,600 |
Weighted Average Period | 2 years 3 months 18 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (2.50%) | (0.20%) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017segmentReportingUnit | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 1 |
Number of reporting unit | ReportingUnit | 1 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Total revenue, net | $ 50,263 | $ 48,620 |
United States [Member] | ||
Revenue: | ||
Total revenue, net | 46,331 | 45,222 |
Australia [Member] | ||
Revenue: | ||
Total revenue, net | 1,947 | 2,136 |
All Other [Member] | ||
Revenue: | ||
Total revenue, net | $ 1,985 | $ 1,262 |
Balance Sheet Details (Componen
Balance Sheet Details (Components of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Component parts | $ 361 | $ 221 |
Finished goods | 5,168 | 7,819 |
Inventory | $ 5,529 | $ 8,040 |
Balance Sheet Details (Narrativ
Balance Sheet Details (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Consigned inventory [Member] | ||
Balance Sheet Details [Line Items] | ||
Inventory | $ 1.4 | $ 1.4 |
Balance Sheet Details (Schedule
Balance Sheet Details (Schedule of Accrued and Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 9,945 | $ 23,506 |
Accrued operating expenses | 1,661 | 4,771 |
Warranty obligations, current | 3,942 | 4,569 |
Sales, property and income taxes | 1,091 | 1,589 |
Other deferred revenue | 17,135 | 9,292 |
Customer deposits | 329 | 266 |
Other | 502 | 153 |
Accrued and other liabilities | $ 34,605 | $ 44,146 |
Balance Sheet Details (Schedu57
Balance Sheet Details (Schedule Of Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Noncurrent [Abstract] | ||
Warranty obligations, non-current | $ 1,566 | $ 1,518 |
Other deferred revenue | 12,384 | 9,573 |
Deferred rent, non-current | 10,401 | 10,801 |
Other | 446 | 432 |
Other liabilities | $ 24,797 | $ 22,324 |
Balance Sheet Details (Schedu58
Balance Sheet Details (Schedule of Product Warranty Activity) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Product Warranties Disclosures [Abstract] | |
Warranty obligation—beginning of period | $ 6,087 |
Warranty expense for new warranties issued | 86 |
Utilization of warranty obligation | (704) |
Changes in estimates for pre-existing warranties | 39 |
Warranty obligation—end of period | $ 5,508 |
Balance Sheet Details (Accumula
Balance Sheet Details (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ (31,536) | |
Other comprehensive (loss) income before reclassification | 18 | |
Other comprehensive income | 18 | $ 141 |
Ending balance | (42,655) | |
Foreign Currency Adjustment [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (1,737) | |
Other comprehensive (loss) income before reclassification | (32) | |
Other comprehensive income | (32) | |
Ending balance | (1,769) | |
Unrealized Gains (Losses) On Available For Sale Securities [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (376) | |
Other comprehensive (loss) income before reclassification | 50 | |
Other comprehensive income | 50 | |
Ending balance | (326) | |
Accumulated Other Comprehensive Loss, Net of Tax [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (2,113) | |
Ending balance | $ (2,095) |
Commitments and Contingencies60
Commitments and Contingencies (Narrative) (Details) AUD in Millions, AED in Millions | 1 Months Ended | 3 Months Ended | ||||||||||
Feb. 28, 2017USD ($) | Jul. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017AUD | Mar. 31, 2017AED | Dec. 31, 2016USD ($) | Dec. 31, 2016AUD | Dec. 31, 2016AED | Dec. 18, 2015USD ($) | |
Commitments And Contingencies [Line Items] | ||||||||||||
Rent expense facility leases | $ 2,000,000 | $ 2,300,000 | ||||||||||
Standby letters of credit | 12,000,000 | $ 17,200,000 | ||||||||||
Line of credit, outstanding borrowings | 0 | |||||||||||
Additional letters of credit | 63,000,000 | |||||||||||
Surety Bond [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Financial guarantee | 20,300,000 | |||||||||||
Senior Secured Credit Facility [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Line of credit facility maximum borrowing capacity | $ 75,000,000 | |||||||||||
Senior Secured Credit Facility [Member] | Letter of Credit Sub-Facility [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Line of credit facility current borrowing capacity | 75,000,000 | |||||||||||
Senior Secured Credit Facility [Member] | Swingline Sub-Facility [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Line of credit facility current borrowing capacity | $ 5,000,000 | |||||||||||
Australian Dollars [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Standby letters of credit | 500,000 | AUD 0.6 | 4,600,000 | AUD 6.1 | ||||||||
United Arab Emirates Dirham [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Standby letters of credit | $ 3,400,000 | AED 12.4 | $ 4,500,000 | AED 16.4 | ||||||||
EON Patent Litigation [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Litigation settlement awarded to (against) amount | $ 500,000 | $ 600,000 | $ (13,000,000) | $ (18,800,000) | ||||||||
Pre-judgment interest | 1,500,000 | |||||||||||
Additional costs | 200,000 | |||||||||||
Surety bond | $ 17,600,000 | |||||||||||
Surety bond percent of final judgment | 20.00% | |||||||||||
EON Patent Litigation [Member] | Standby Letter of Credit [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Standby letters of credit | $ 13,000,000 |
Commitments and Contingencies61
Commitments and Contingencies (Future Minimum Commitments Under Operating Leases) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating Leases, Remainder of 2017 | $ 6,737 |
Operating Leases, 2018 | 9,033 |
Operating Leases, 2019 | 7,831 |
Operating Leases, 2020 | 7,284 |
Operating Leases, 2021 | 7,369 |
Operating Leases, 2022 and thereafter | 34,157 |
Net minimum operating lease payments | $ 72,411 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring plan, initiation date | Mar. 10, 2017 |
Minimum [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Estimated restructuring pre-tax charges | $ 2,700,000 |
Minimum [Member] | Employee Severance And One-Time Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Estimated restructuring pre-tax charges | 2,000,000 |
Minimum [Member] | Facility-Related Expenses [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Estimated restructuring pre-tax charges | 700,000 |
Maximum [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Estimated restructuring pre-tax charges | 3,500,000 |
Severance costs | 100,000 |
Maximum [Member] | Employee Severance And One-Time Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Estimated restructuring pre-tax charges | 2,500,000 |
Maximum [Member] | Facility-Related Expenses [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Estimated restructuring pre-tax charges | $ 1,000,000 |