Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2015 | Aug. 12, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 28, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | IKAN | |
Entity Registrant Name | IKANOS COMMUNICATIONS, INC. | |
Entity Central Index Key | 1,219,210 | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 17,228,613 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 16,032 | $ 13,270 |
Short-term investments | 0 | 2,421 |
Accounts receivable, net | 10,765 | 13,849 |
Inventory, net | 1,991 | 1,964 |
Prepaid expenses and other current assets | 1,799 | 3,682 |
Total current assets | 30,587 | 35,186 |
Property and equipment, net | 13,947 | 8,581 |
Other assets | 2,018 | 2,343 |
Total assets | 46,552 | 46,110 |
Current liabilities: | ||
Revolving line | 4,979 | 10,841 |
Accounts payable | 4,553 | 5,054 |
Accrued liabilities | 11,042 | 6,460 |
Total current liabilities | 20,574 | 22,355 |
Long-term debt, net of debt discount | 9,528 | 0 |
Other long-term liabilities | 5,195 | 1,740 |
Total liabilities | $ 35,297 | $ 24,095 |
Commitments and contingencies | ||
Stockholders’ equity | $ 11,255 | $ 22,015 |
Total liabilities and stockholders' equity | $ 46,552 | $ 46,110 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 11,068 | $ 11,255 | $ 21,249 | $ 25,768 |
Cost of revenue | 5,392 | 5,775 | 10,585 | 13,211 |
Gross profit | 5,676 | 5,480 | 10,664 | 12,557 |
Operating expenses: | ||||
Research and development | 12,618 | 13,408 | 24,431 | 26,084 |
Selling, general, and administrative | 4,901 | 4,105 | 9,907 | 8,926 |
Total operating expenses | 17,519 | 17,513 | 34,338 | 35,010 |
Loss from operations | (11,843) | (12,033) | (23,674) | (22,453) |
Interest and other, net | (378) | (129) | (486) | 113 |
Loss before provision for income taxes | (12,221) | (12,162) | (24,160) | (22,340) |
Provision for income taxes | 95 | 168 | 149 | 295 |
Net loss | $ (12,316) | $ (12,330) | $ (24,309) | $ (22,635) |
Basic and diluted net loss per share (USD per share) | $ (0.72) | $ (1.24) | $ (1.49) | $ (2.29) |
Weighted average number of shares (basic and diluted) (in shares) | 17,103 | 9,910 | 16,339 | 9,893 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Cash flows from operating activities: | ||
Net Loss | $ (24,309) | $ (22,635) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation | 2,651 | 2,039 |
Stock-based compensation expense | 2,027 | 1,912 |
Amortization of intangible assets and acquired technology | 239 | 240 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 3,084 | 6,499 |
Inventory | (27) | (143) |
Prepaid expenses and other assets | 1,442 | (508) |
Accounts payable and accrued liabilities | 2,382 | 172 |
Net cash used in operating activities | (12,511) | (12,424) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,862) | (1,787) |
Purchases of investments | 0 | (3,026) |
Maturities and sales of investments | 2,421 | 4,824 |
Net cash provided by (used in) investing activities | (441) | 11 |
Cash flows from financing activities: | ||
Proceeds from issuances of common stock under employee stock plans | 89 | 375 |
Proceeds from rights offering, net of issuance costs | 11,487 | 0 |
Proceeds from revolving line | 4,979 | 6,912 |
Repayments of revolving line | (10,841) | (12,000) |
Proceeds from long-term debt | 10,000 | 0 |
Net cash provided by (used in) financing activities | 15,714 | (4,713) |
Net increase (decrease) in cash and cash equivalents | 2,762 | (17,126) |
Cash and cash equivalents at beginning of period | 13,270 | 36,043 |
Cash and cash equivalents at end of period | $ 16,032 | $ 18,917 |
Ikanos and Summary of Significa
Ikanos and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
Ikanos and Summary of Significant Accounting Policies | Ikanos and Summary of Significant Accounting Policies The Company Ikanos Communications, Inc. (“Ikanos” or the “Company”) was incorporated in the State of California in April 1999 and reincorporated in the State of Delaware in September 2005. The Company is a provider of advanced semiconductor products and software for delivering high speed broadband solutions to the connected home. The Company’s broadband multi-mode and digital subscriber line (“DSL”) processors and other semiconductor offerings power carrier infrastructure (referred to as “Access”) and customer premise equipment (referred to as “Gateway”) for network equipment manufacturers (“NEMs”) who, in turn, serve leading telecommunications service providers. The accompanying consolidated financial statements of the Company have been prepared on a basis that assumes that the Company will continue as a going concern and contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Liquidity The Company incurred net losses of $12.3 million and $24.3 million for the three and six months ended June 28, 2015 and had an accumulated deficit of $393.7 million as of June 28, 2015. On September 29, 2014, the Company entered into a collaboration arrangement with Alcatel-Lucent USA, Inc. (and its sister companies, collectively known as “ALU”) on the development of ultra-broadband products whereby the Company received a financial commitment of up to $45.0 million from ALU and a group of investors affiliated with Tallwood Venture Capital (the "Tallwood Group"). As part of their investments associated with the collaboration arrangement, on September 29, 2014, ALU and the Tallwood Group purchased 1.2 million shares and 2.7 million shares, respectively, of the Company's common stock for $5.0 million and $11.3 million , respectively (the "Private Placement"). Further, in December 2014, the Company commenced a rights offering pursuant to which stockholders of record on September 26, 2014 were offered the right to purchase shares of the Company’s common stock (the “Rights Offering”). On February 4, 2015, the Company completed its Rights Offering and recognized proceeds of $11.5 million , net of transaction costs of $0.8 million , inclusive of 2.7 million shares of the Company common stock purchased by the Tallwood Group for $11.2 million , which completed the Tallwood Group's portion of their financial commitment. On April 30, 2015, the Company received the proceeds of the $10.0 million loan from ALU, which was part of the previously announced collaboration arrangement. (See Note 5 - Notes Payable and Long-Term Debt.) To achieve consistent profitability, the Company will need to generate and sustain higher revenue, while maintaining cost and expense levels necessary and appropriate for its business. During the remainder of 2015, the Company expects that its development costs, primarily associated with the Access product family, will increase over the level incurred during 2014. As a result of the Company’s planned increase in development spending in 2015, recurring losses from operations, and the need to maintain compliance with debt covenants, if the Company is unable to raise sufficient capital through additional debt or equity arrangements, there will be uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might result from this uncertainty. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company. The Company utilizes an existing revolving line of credit with Silicon Valley Bank ("SVB") and proceeds from its $10.0 million loan received on April 30, 2015 under the aforementioned ALU loan to partially fund its operations. The most restrictive covenant under the revolving line of credit with SVB requires that the Company maintain a minimum monthly Adjusted Quick Ratio, as defined in the Amended SVB Loan Agreement, of 1.2 to 1.0 . The ALU Loan Agreement contains the same Adjusted Quick Ratio covenant that appears in the Amended SVB Loan Agreement and both loan agreements contain provisions that provide that a default under one loan agreement is a default under the other. (See Note 5 - Notes Payable and Long-Term Debt.) On April 30, 2015, SVB agreed to waive the non-compliance associated with the Adjusted Quick Ratio covenant for the month of April 2015. Although the Company is currently in compliance with the terms of the Amended SVB Loan Agreement, the Company anticipates that it may not be in compliance with all of the covenants during certain later periods of 2015 and, accordingly, has begun discussions with SVB to address those potential instances of noncompliance. The Company will need to take further action to generate adequate cash flows or earnings to ensure compliance with the Amended SVB Loan Agreement and fund its future capital requirements, including the need to raise additional financing. There can be no assurance that sufficient additional debt or equity financing will be available or, if available, that such financing will be on terms and conditions acceptable to the Company. Additionally, there can be no assurance that, if necessary, the Company will be successful in renegotiating the debt covenants contained in the Amended SVB Loan Agreement or the ALU Loan Agreement. If the Company is unsuccessful in these efforts, it will need to implement significant cost reduction strategies that could affect its near- and long-term business plan. These efforts may include, but are not limited to: consolidating locations, reducing capital expenditures, reducing overall headcount, and curtailing business activities. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), the rules and regulations of the Securities and Exchange Commission (“SEC"), and accounting policies consistent with those applied in preparing the Company’s audited annual consolidated financial statements. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with these rules and regulations. The information in this Quarterly Report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K filed with the SEC on March 20, 2015 (“Annual Report”). In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the interim periods presented. The operating results for the three and six month periods ended June 28, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year ending January 3, 2016, or for any other future period. The Company’s fiscal quarters end on the Sunday closest to the end of the applicable calendar quarter, except in a 53-week fiscal year, in which case the additional week falls into the fourth quarter of that fiscal year. There are 53 weeks in fiscal year 2015 . Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions. The Company believes that the estimates, judgments, and assumptions upon which it relies are reasonable based upon information available to it at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of revenue and expenses during the periods presented. To the extent there are material differences between these estimates and actual results, the Company’s financial statements would have been affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. Reverse Stock Split On February 11, 2015, at a Special Meeting of Stockholders (the "February 2015 Special Meeting"), the Company's stockholders approved an amendment to the Company's Restated Certificate of Incorporation to effect a reverse stock split of its outstanding common stock at a ratio, to be determined by the Board of Directors, of not less than one-for-five (1:5) shares and not more than one-for-ten (1:10) shares. At a meeting of the Board of Directors immediately following the February 2015 Special Meeting, the Board of Directors approved and directed the Company's management to implement a 1:10 reverse stock split, effective February 13, 2015. The reverse stock split applied to all outstanding common stock, restricted stock units, stock appreciation rights, and stock options. As of February 13, 2015, the effect of the reverse stock split was to reduce the number of shares issued and outstanding from 170.1 million to 17.0 million . Neither the total authorized shares nor the preferred stock was affected by the reverse stock split. Awards and options outstanding of 24.8 million shares and shares available for grant of 84.9 million were reduced to 2.5 million and 8.5 million , respectively. Unless otherwise noted, the effect of the reverse stock split has been retroactively applied to all common stock, equity plans, and related activity as well as share and per share data in this Quarterly Report on Form 10-Q. Rights Offering and Registration Statement on Form S-1 The Company filed a Registration Statement on Form S-1 on October 20, 2014 and amended it thereafter (declared effective on November 26, 2014) under which it distributed rights to the holders of its common stock as of September 26, 2014 (the "Record Date") non-transferable subscription rights to purchase 14.5 million shares of its common stock (the "Rights Offering"). Each subscription right entitled the rights holder to purchase 1.459707 shares of common stock at $4.10 per share to allow each holder of record to have the opportunity to maintain the same ownership percentage of the Company subsequent to the Private Placement as the stockholder had at the record date. The Rights Offering closed on February 4, 2015. The Company issued 3.0 million shares of the Company's common stock at $4.10 per share and recognized proceeds of $11.5 million after issuance costs of $0.8 million . Option Exchange At a Special Meeting of Stockholders, held on November 21, 2014, the Board of Directors proposed and the stockholders approved, a one-time stock option exchange program (the "Tender Offer") for the Company's active employees and directors to exchange certain outstanding stock options (the "Eligible Options") for new stock options. The exercise price of each new option would be the closing price of the Company's stock on The NASDAQ Capital Market on the date of grant, which occurred on the first trading day following the expiration of the Tender Offer. Eligible Options are those options (including Stock Appreciation Rights) issued prior to January 1, 2014 that had an exercise price equal to or greater than $4.10 . All Eligible Options could be exchanged for new options on a one-for-one basis, except for those held by directors, the Chief Executive Officer, and his direct reports, who each received four new options for every five options tendered. The Eligible Options also included 60,000 shares that contained a performance-based vesting element, granted to the Chief Executive Officer at the time he was hired. Mr. Tahernia tendered this grant and received a performance-based option to purchase 48,000 shares in exchange. For employees, other than with respect to performance based stock option grants, vesting will occur monthly over thirty-six months for those Eligible Options that were partially vested and twenty-four months for those Eligible Options that were fully vested at the time the Tender Offer expired. The Tender Offer began on February 20, 2015 and expired on March 20, 2015. On March 23, 2015, options to purchase 1.3 million shares were issued at an exercise price of $2.80 per share. Summary of Significant Accounting Policies The Company's significant accounting policies are described in Note 1 to the audited consolidated financial statements for the year ended December 28, 2014 included in the Annual Report. These accounting policies have not significantly changed. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, accounts receivable, and short-term investments. Cash and cash equivalents are held with a limited number of financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. Management believes that the financial institutions that hold the Company’s deposits are credit worthy and, accordingly, minimal credit risk exists with respect to those deposits. At June 29, 2014 , the Company’s short-term investments consisted solely of certificates of deposit. There were no short-term investments as of June 28, 2015. All investments were classified as available-for-sale. The Company does not hold or issue financial instruments for trading purposes. Credit risk with respect to accounts receivable is concentrated due to the number of large orders recorded in any particular reporting period. Three customers represented 33% , 24% , and 12% of accounts receivable at June 28, 2015 . Three customers represented 44% , 21% , and 16% of accounts receivable at December 28, 2014. Three customers accounted for 27% , 27% , and 21% of revenue for the three months ended June 28, 2015. Three customers accounted for 31% , 28% , and 17% of revenue for the six months ended June 28, 2015. Three customers accounted for 35% , 19% , and 18% of revenue for the three months ended June 29, 2014. Four customers accounted for 27% , 25% , 13% , and 10% of revenue for the six months ended June 29, 2014. Concentration of Other Risk The semiconductor industry is characterized by rapid technological change, competitive pricing pressures, and cyclical market patterns. The Company’s results of operations are affected by a wide variety of factors, including general economic conditions; economic conditions specific to the semiconductor industry; demand for the Company’s products; the timely introduction of new products; implementation of new manufacturing technologies; manufacturing capacity; the availability of materials and supplies; competition; the ability to safeguard patents and intellectual property in a rapidly evolving market; reliance on assembly and wafer fabrication subcontractors; and reliance on independent distributors and sales representatives. As a result, the Company may experience substantial period-to-period fluctuations in future periods due to the factors mentioned above as well as certain other factors. Net Loss per Share Basic net loss per share is computed using the weighted-average number of common shares outstanding during the period. The calculation of basic and diluted net loss per common share is as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Net loss $ (12,316 ) $ (12,330 ) $ (24,309 ) $ (22,635 ) Weighted average shares outstanding 17,103 9,910 16,339 9,893 Basic and diluted net loss per share $ (0.72 ) $ (1.24 ) $ (1.49 ) $ (2.29 ) The following potential common shares have been excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Anti-dilutive securities: Weighted average warrants to purchase common stock (a) 474 780 474 780 Weighted average restricted stock and restricted stock units 1,266 137 1,089 131 Weighted average options to purchase common stock 2,950 1,838 2,658 1,850 4,690 2,755 4,221 2,761 (a) The warrants were issued to ALU as part of the collaboration arrangement. On April 30, 2015 the warrant agreements were amended to reprice the warrants at $2.75 and to allow for a reduction in the pricing of the warrants upon an issuance or sale of shares of the Company's common stock at any time prior to the 12 -month anniversary of the amendment. Recent Accounting Pronouncement In April 2015, as part of its initiative to reduce complexity in accounting standards, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, "Interest--Imputation of Interest" (Subtopic 835-30) (the "Update"). Under the Update, debt issuance costs related to a recognized liability should be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement of debt issuance costs is not affected by the Update. The Update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Update should be applied on a retrospective basis. The Company has adopted this Update concurrent with the ALU Loan Agreement debt taken down in the second quarter of 2015. See Note 5--Notes Payable and Long-Term Debt. |
Inventory, net
Inventory, net | 6 Months Ended |
Jun. 28, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory, net | Inventory, net Inventory consisted of the following (in thousands): June 28, 2015 December 28, 2014 Finished goods $ 1,775 $ 1,895 Purchased parts and raw materials 216 69 $ 1,991 $ 1,964 The Company has an agreement with eSilicon Corporation (“eSilicon”) under which a majority of its day-to-day supply chain management, production test engineering, and production quality engineering functions (“Master Services”) have been transferred to eSilicon under a Master Services and Supply Agreement (“Service Agreement”). Pursuant to the Service Agreement, which will expire in October 2015, the Company places orders for its finished goods products with eSilicon, who, in turn, contracts with wafer foundries and assembly and test subcontractors and manages these operational functions for the Company on a day-to-day basis. As part of its Service Agreement, the Company transferred ownership of certain work-in-process and raw materials to eSilicon as prepayment for the future delivery of finished goods. In addition, the Company has prepaid for certain wafers purchased by eSilicon on behalf of the Company. Prepayments under the arrangement were $0.3 million as of June 28, 2015 and $1.0 million as of December 28, 2014 . The prepayments are classified in prepaid expenses and other current assets. As of June 28, 2015 , the Company has $5.4 million of non-cancelable purchase obligations with eSilicon. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 28, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment consisted of the following (in thousands): June 28, 2015 December 28, 2014 Machinery and equipment $ 29,150 $ 27,335 Software 12,382 6,591 Intellectual property (a) 5,069 5,530 Computer equipment 6,848 6,175 Furniture and fixtures 971 991 Leasehold improvements 1,846 1,818 Construction in progress 141 — 56,407 48,440 Less: Accumulated depreciation and amortization (42,460 ) (39,859 ) $ 13,947 $ 8,581 (a) During the first quarter of 2015, the Company utilized intellectual property purchase obligations and capitalized its $6.0 million obligation as property and equipment with a useful life of six years . Depreciation expense for property and equipment was $1.4 million and $1.0 million for the three months ended June 28, 2015 and June 29, 2014 , respectively. Depreciation expense for property and equipment was $2.7 million and $2.0 million for the six months ended June 28, 2015 and June 29, 2014 , respectively. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 28, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): June 28, 2015 December 28, 2014 Accrued compensation and related benefits $ 3,218 $ 2,139 Accrued intellectual property purchase obligations (a) 2,028 — Deferred revenue 895 529 Deferred rent 563 699 Warranty accrual 108 131 Accrued royalties 594 751 Other accrued liabilities 3,636 2,211 $ 11,042 $ 6,460 (a) Included in long-term liabilities is an additional $2.5 million in intellectual property purchase obligations payable in 2016 and 2017 . |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 6 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt SVB Revolving Line of Credit - The Company utilizes an existing revolving line of credit with SVB to partially fund its operations. On October 7, 2014, the Company entered into the First Amended and Restated Loan and Security Agreement with SVB (the "Amended SVB Loan Agreement"), which amended and restated the loan agreement with SVB, originally dated January 14, 2011, as subsequently amended. Under the Amended SVB Loan Agreement, the Company may borrow up to $20.0 million , subject to certain limitations. The Amended SVB Loan Agreement is collateralized by a first priority lien on all of the Company's present and future assets, other than its intellectual property, and a second lien on its intellectual property. The Amended SVB Loan Agreement also requires that the Company maintain a minimum monthly Adjusted Quick Ratio, as defined in the Amended SVB Loan Agreement, of 1.2 to 1.0 . The Company was in compliance with the Adjusted Quick Ratio covenant as of March 29, 2015 under the Amended SVB Loan Agreement, but was not in compliance with the covenant at the end of April 2015. On April 30, 2015, the Company entered into Amendment No. 2 to the Amended SVB Loan Agreement (“SVB Amendment No. 2”). SVB Amendment No. 2 provides, among other things, the following: (1) that SVB agrees to allow the Company to enter into Amendment No. 2 to the Loan and Security Agreement with ALU (the “ALU Loan Amendment”); (2) the removal of the LIBOR-based interest pricing option; (3) an increase in the interest rate margin by 75 basis points; and (4) a final payment fee of $250,000 . On April 30, 2015, SVB agreed to limited waiver for the Company's non-compliance associated with the Adjusted Quick Ratio covenant for the month of April 2015 subject to receipt by the Company of $10.0 million under the ALU Loan Agreement. The funds were received on April 30, 2015. At June 28, 2015, $5.0 million was outstanding under the SVB Amendment No. 2. Interest on advances against the line was equal to 6.5% as of June 28, 2015 and was payable monthly. The Company was in compliance with the Adjusted Quick Ratio covenant as of June 28, 2015. Although the Company is currently in compliance with the terms of Amendment No. 2, it anticipates that it may not be in compliance with all of the covenants during certain later periods of 2015 and, accordingly, has begun discussions with SVB to address those potential instances of noncompliance. ALU Loan Agreement - In September 2014, as discussed in Note 1, the Company entered into a collaboration with ALU. On April 30, 2015, the Company and ALU entered into Amendment No. 2 (the “ALU Loan Amendment”) to the Loan and Security Agreement dated September 29, 2014, as amended (the “ALU Loan Agreement”). The ALU Loan Amendment provides, among other things, the following: (i) that interest shall be paid in arrears in cash, rather than in-kind; however, for any interest payment due after June 30, 2015, the Company may request that, at the discretion of ALU, such payments be made in-kind; (ii) the amendment of the warrants previously issued to ALU, as further described below; and (iii) that the outstanding balance of the loan shall automatically accelerate in the event of a change in control of the Company or a sale of all or substantially all of the Company’s assets. On September 29, 2014, in connection with the ALU Loan, the Company issued to ALU a warrant (the “First Warrant”) to purchase up to 315,789 shares of the Company’s common stock with an exercise price of $4.75 per share. On December 10, 2014, in connection with the first amendment to the ALU Loan Agreement, the Company issued an additional warrant to ALU (the “Second Warrant”) to purchase up to 157,895 shares of the Company’s common stock, with an exercise price of $4.10 per share. Under the Black-Scholes formula, the Company initially valued the warrants at $0.6 million and, until the loan was funded, classified them under other current assets. In connection with the ALU Loan Amendment, on April 30, 2015, the Company amended the First Warrant (the “Amended and Restated First Warrant”) and the Second Warrant (the “Amended and Restated Second Warrant” and, collectively, with the Amended and Restated First Warrant, the “Amended Warrants”) to lower the exercise price to $2.75 per share. The exercise price represents the closing price of the Company’s common stock on April 29, 2015, the last trading day before the Amended Warrants were issued. In addition, each of the Amended Warrants contains a provision to automatically adjust the per share exercise price downward in the event that on or before April 30, 2016, the Company issues or sells or publicly announces the issuance or sale of any of its common stock or options or convertible securities that are related to its common stock (other than certain employee and director options) at an effective price that is lower than the then-current exercise price under the Amended Warrants. In addition, the per share exercise price will be adjusted downward under various other circumstances, including if any of the following events occurs: certain adjustments are made to the purchase or exercise price of an option or the conversion rate of a convertible security; the Company makes any dividend or other distribution of assets to holders of its common stock that is not also given to holders of the Amended Warrants; or the Board of Directors of the Company determines that it is appropriate to adjust the per share exercise price. Neither of the Amended Warrants provides for a corresponding upward adjustment of the per share exercise price thereunder. Due to the significant reduction in exercise price, the Company revalued the warrants at $0.5 million . The warrants were reclassified and recorded as debt discount as of April 30, 2015 and shown as a reduction to long-term debt. The debt discount will be accreted over the life of the ALU Loan Agreement. On April 30, 2015, the Company received $10.0 million under the ALU Loan Agreement. The ALU Loan Agreement contains the same Adjusted Quick Ratio covenant that appears in SVB Amendment No. 2 and both loan agreements contain provisions that provide that a default under one loan agreement is a default under the other. At June 28, 2015, the long-term debt balance under the ALU Loan Agreement was $9.5 million , consisting of principal of $10.0 million less debt discount of $0.5 million . The interest rate is 9.5% . The Company must repay 15% of the principal and all outstanding interest on or before November 30, 2016 and the remainder on or before November 30, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations The Company leases office facilities, equipment, and software under non-cancelable operating leases with various expiration dates through 2018 . Rent expense for both the three months ended June 28, 2015 and June 29, 2014 was $0.6 million . Rent expense for both the six months ended June 28, 2015 and June 29, 2014 was $1.2 million . The terms of the facility leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred, but not paid. Future minimum lease payments as of June 28, 2015 under non-cancelable leases with original terms in excess of one year are $1.3 million for the remainder of 2015; $2.0 million in 2016; $1.6 million in 2017; and $0.4 million in 2018. Purchase Commitments As of June 28, 2015 , the Company had $5.4 million of inventory purchase obligations that are expected to be paid during the third quarter of 2015. Indemnities, Commitments and Guarantees During its normal course of business, the Company has made certain indemnities, commitments, and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include intellectual property indemnities to the Company’s customers in connection with the sales of its products, indemnities for liabilities associated with the infringement of other parties’ technology based upon the Company’s products, and indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease. The duration of these indemnities, commitments, and guarantees varies, and in certain cases, is indefinite. The majority of these indemnities, commitments, and guarantees do not provide for any limitation of the maximum potential future payments that the Company could be obligated to make. The Company believes its internal development processes and other policies and practices limit its exposure related to the indemnification provisions of the various agreements that include indemnity provisions. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees’ development work to the Company. The Company has not recorded any liability for these indemnities, commitments, and guarantees in the accompanying consolidated balance sheets. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable and the amount of the loss can be reasonably estimated, in accordance with authoritative guidance. In addition, the Company indemnifies its officers and directors under the terms of indemnity agreements entered into with them, as well as pursuant to its certificate of incorporation, bylaws, and applicable Delaware law. To date, the Company has not incurred any expenses related to these indemnifications. Litigation From time-to-time, in the normal course of business, the Company and its subsidiaries are parties to litigation matters and claims that have involved and may involve in the future, among other things, claims related to intellectual property infringement as well as employment-related disputes. The Company is subject to claims and litigation arising in the ordinary course of business; however, the Company does not believe, based on currently available facts and circumstances, that the final outcome of these matters, taken individually or as a whole, will have a material adverse effect on its consolidated results of operations or financial position. The results of litigation are inherently uncertain and material adverse outcomes are possible. The Company has not provided accruals for any legal matters in its financial statements as potential losses for such matters are not considered probable and reasonably estimable. However, because such matters are subject to many uncertainties, the ultimate outcomes are not predictable and there can be no assurances that the actual amounts required to satisfy any liabilities arising from the matters described above will not have a material adverse effect on its consolidated results of operations, financial position, or cash flows. |
Significant Customer Informatio
Significant Customer Information and Segment Reporting | 6 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Significant Customer Information and Segment Reporting | Significant Customer Information and Segment Reporting FASB establishes standards for the manner in which public companies report information about operating segments in annual and interim financial statements. It also establishes standards for related disclosures about products and services, geographic areas, and major customers. The method for determining the information to report is based on the way management organizes the operating segments within the Company for making operating decisions and assessing financial performance. The Company’s chief operating decision-maker is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenue by geographic region for purposes of making operating decisions and assessing financial performance. On this basis, the Company is organized and operates in a single segment: the design, development, marketing, and sale of semiconductors and integrated firmware. The following table summarizes revenue by geographic region, based on the country in which the customer's headquarters is located (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 France $ 3,052 28 % $ 2,376 21 % $ 6,582 31 % $ 6,886 27 % Japan 3,035 27 2,084 19 5,998 28 5,840 35 Taiwan 2,494 23 5,246 46 4,620 22 9,043 23 Germany 410 4 111 1 676 3 1,313 5 Korea 375 3 213 2 1,408 7 277 1 China 187 2 218 2 294 1 544 2 United States 182 2 76 — 239 1 147 1 Other 1,333 11 931 9 1,432 7 1,718 6 $ 11,068 100 % $ 11,255 100 % $ 21,249 100 % $ 25,768 100 % The Company tracks its products within two product families: Gateway and Access. The Access product family consists of semiconductor and software products that power the carrier infrastructure for the central office (“CO”), as well as any node in a hybrid-fiber-copper network where fiber is terminated and copper is used to reach the consumer premises. The Gateway product family includes a variety of processors and the associated software designed for devices deployed at the customer premises. Gateway products enable service providers to offer their subscribers a variety services, including internet access, voice, over-the-top content, and security. Revenue by product family is as follows (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Gateway $ 6,854 62 % $ 8,817 78 % $ 13,792 65 % $ 19,122 74 % Access 4,214 38 2,438 22 7,457 35 6,646 26 $ 11,068 100 % $ 11,255 100 % $ 21,249 100 % $ 25,768 100 % The distribution of long-lived assets (excluding intangible assets and other assets) was as follows (in thousands): June 28, 2015 December 28, 2014 United States $ 13,843 $ 8,257 Asia, predominantly India 104 324 $ 13,947 $ 8,581 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 28, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Merger Agreement On August 5, 2015, Qualcomm Atheros, Inc., (“Parent”) a Delaware corporation and a wholly-owned subsidiary of QUALCOMM Incorporated, King Acquisition Co., a Delaware corporation and a wholly-owned subsidiary of Parent (“Merger Sub”), and the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides that, subject to the terms of the Merger Agreement, Parent will cause the Merger Sub to commence, no later than August 19, 2015, a tender offer (the “Offer”) to purchase all of the outstanding shares (the “Shares”) of the Company’s common stock, $0.001 par value, at a price of $2.75 per share, without interest (the “Offer Price”), subject to any applicable withholding taxes and assume all outstanding indebtedness of the Company at the closing of the transaction. Consummation of the Offer is subject to various conditions set forth in the Merger Agreement, including, but not limited to (i) at least a majority of Shares being tendered in the Offer, (ii) the receipt of required regulatory approvals in certain jurisdictions and (iii) other conditions set forth in the Merger Agreement. The Offer will expire at 12:01 a.m. Eastern Time on the 21st business day (calculated in accordance with the rules of the Securities Exchange Act of 1934) following the commencement date of the Offer, unless extended in accordance with the terms of the Offer and the Merger Agreement and the applicable rules and regulations of the SEC. Following consummation of the Offer, Merger Sub will merge with and into the Company with the Company surviving as a wholly-owned subsidiary of Parent (the “Merger”). In the Merger, each Share that is not tendered and accepted pursuant to the Offer (other than the Shares held in treasury, Shares held directly or indirectly by Parent or its subsidiaries, and Shares as to which appraisal rights have been perfected in accordance with applicable law) will be cancelled and converted into the right to receive the Offer Price, on the terms and conditions set forth in the Merger Agreement. Pursuant to the Merger Agreement, as of the effective time of the Merger (the “Effective Time”), each outstanding and unexercised stock option that is subject to time-based vesting having an exercise price greater than the Offer Price (each, an “In-the-Money Time-based Option”), whether or not vested, shall be cancelled and converted into the right to receive cash in an amount equal to the product of (i) the total number of Shares subject to such In-the-Money Time-based Option immediately prior to the Effective Time, multiplied by (ii) the excess, if any, of (x) the Offer Price over (y) the exercise price payable per Share under such In-the-Money Time-based Option. As of the Effective Time, each unvested Ikanos stock option that is subject to performance-based vesting shall be cancelled for no consideration. As of August 5, 2015, 39,800 In-the-Money Time-based Options have a per share exercise price greater than the Offer Price. All other outstanding and unexercised Ikanos stock options will be cancelled for no consideration. All outstanding and unexercised stock appreciation rights have a per share exercise price greater than the Offer Price. As a result, all outstanding and unexercised stock appreciation rights will be cancelled upon the consummation of the Merger and the holders of such stock appreciation rights will not have any right to receive any consideration in respect thereof. Pursuant to the Merger Agreement, as of the Effective Time, each outstanding restricted stock unit (each, an “RSU”), whether or not vested, shall be cancelled and converted into the right to receive cash in an amount equal to the product of (i) the total number of Shares issuable in settlement of such RSU immediately prior to the Effective Time multiplied by (ii) the Offer Price. The Merger Agreement provides that the Merger will be governed by Section 251(h) of the Delaware General Corporation Law (the “DGCL”) and shall be effected as soon as practicable following the consummation of the Offer without stockholder approval pursuant to the DGCL. The Merger Agreement contains customary representations and warranties by Parent, Merger Sub and the Company. The Merger Agreement also contains customary covenants and agreements, including with respect to the operations of the business of the Company and its subsidiaries between signing and closing, restrictions on responses by the Company with respect to alternative transactions, governmental filings and approvals and other matters. The Merger Agreement generally prohibits the Company’s solicitation of proposals relating to alternative business combination transactions and restricts the Company’s ability to furnish non-public information to, or participate in any discussions or negotiations with, any third party with respect to any such transaction, subject to certain limited exceptions. The Merger Agreement includes a remedy of specific performance for the Company, Parent and Purchaser. The Merger Agreement also includes customary termination provisions for both the Company and Parent and provides that, in connection with the termination of the Merger Agreement under specified circumstances, including termination by the Company to accept and enter into a definitive agreement with respect to an unsolicited superior offer, the Company will be required to pay a termination fee of $1,750,000 (approximately 3.5% of the equity value of the transaction) (the “Termination Fee”). A superior offer is a written proposal pursuant to which a third party would acquire, among other acquisition structures set forth in the Merger Agreement, 50% or more of the outstanding voting securities or assets of the Company on terms that the board of directors of the Company will have determined in good faith (after consultation with its independent financial advisor of nationally recognized reputation and its outside legal counsel) to be more financially favorable to the Company’s stockholders and is reasonably likely to be consummated in accordance with the terms proposed taking into account relevant factors. Any such termination of the Merger Agreement by the Company is subject to certain conditions, including the Company’s compliance with certain procedures set forth in the Merger Agreement and a determination by the Company’s board of directors of that the failure to take such action would constitute a breach of its fiduciary duties under applicable law, the entrance into a definitive agreement by the Company with a third party and payment of the Termination Fee by the Company. Tender and Support Agreement Concurrently with the execution of the Merger Agreement, each of the directors and named executive officers of the Company, entities affiliated with Tallwood Venture Capital and Alcatel-Lucent Participations (each a “Tender and Support Stockholder”) entered into a Tender and Support Agreement with Parent and Merger Sub (the “Tender and Support Agreement”), which provides, among other things, that such stockholder will tender their Shares in the Offer and vote their Shares in favor of approving the principal terms of the Merger, if applicable. In aggregate, such persons owned approximately 58.2% of the Shares outstanding as of the close of business on August 5, 2015. The Tender and Support Agreement will terminate upon termination of the Merger Agreement and certain other specified events. Upon the occurrence of the Company’s board of directors changing their recommendation that the stockholders support the Offer as a result of a permitted change in recommendation for certain intervening events (not in connection with an alternative acquisition proposal), as described in the Merger Agreement, each Tender and Support Stockholder will be permitted to withdraw the excess of the aggregate number of Shares owned by the Tender and Support Stockholders as of the date of the Tender and Support Agreement and any additional Shares acquired by the Tender and Support Stockholders after the entry into such agreement (the “Subject Securities”) that is equal to each Tender and Support Stockholder’s pro rata portion (as measured against the aggregate Subject Securities held by each of the Tender and Support Stockholders) of the sum of (i) thirty percent ( 30% ) of the total number of Shares outstanding, on a fully diluted basis (the “30% Shares”) plus (ii) such additional number of Subject Securities (rounded down to the nearest whole Share) held by all of the Tender and Support Stockholders that is equal to product of (x) the total number of Subject Securities held by all Tender and Support Stockholders less the 30% Shares, multiplied by (y) the percentage, rounded to two decimal places, of the total number of outstanding Shares that have been tendered and not withdrawn prior to the expiration of the Offer by all holders of the Shares (other than the Tender and Support Stockholders). The foregoing descriptions of the Merger Agreement and the Tender and Support Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of such agreements, which are filed as Exhibit 2.1 and Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with Securities and Exchange Commission on August 6, 2015 and incorporated herein by reference. If the Merger is consummated, the Company will become a wholly-owned subsidiary of Parent. Accordingly, this Quarterly Report on Form 10-Q, which assumes the Company remains a standalone business, should be read with the understanding that should the Merger be completed, Parent will have the power to control the conduct of the Company’s business. Additional Information and Where to Find It The Offer described above has not yet commenced. This shall not constitute an offer to sell or the solicitation of an offer to buy any shares of common stock of Ikanos, nor shall there be any sale of such common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer will only be made through a Tender Offer Statement on Schedule TO, which will contain an offer to purchase, form of letter of transmittal and other documents relating to the Offer (collectively, the “ Offer Materials”), each to be filed with the SEC by the Merger Sub and Parent. In addition, Ikanos will file with the SEC a solicitation/recommendation statement on Schedule 14D-9 with respect to the Offer. Merger Sub and Ikanos expect to mail the Offer Materials and the Schedule 14D-9 to Ikanos stockholders. Investors and stockholders are urged to carefully read these documents and the other documents relating to the transactions contemplated by the Merger Agreement when they become available because these documents will contain important information relating to the Offer and related transactions. The Offer Materials and the Schedule 14D-9 will also be available at no cost on the SEC’s web site at www.sec.gov . |
Ikanos and Summary of Signifi13
Ikanos and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
The Company | The Company Ikanos Communications, Inc. (“Ikanos” or the “Company”) was incorporated in the State of California in April 1999 and reincorporated in the State of Delaware in September 2005. The Company is a provider of advanced semiconductor products and software for delivering high speed broadband solutions to the connected home. The Company’s broadband multi-mode and digital subscriber line (“DSL”) processors and other semiconductor offerings power carrier infrastructure (referred to as “Access”) and customer premise equipment (referred to as “Gateway”) for network equipment manufacturers (“NEMs”) who, in turn, serve leading telecommunications service providers. The accompanying consolidated financial statements of the Company have been prepared on a basis that assumes that the Company will continue as a going concern and contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), the rules and regulations of the Securities and Exchange Commission (“SEC"), and accounting policies consistent with those applied in preparing the Company’s audited annual consolidated financial statements. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with these rules and regulations. The information in this Quarterly Report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K filed with the SEC on March 20, 2015 (“Annual Report”). In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the interim periods presented. The operating results for the three and six month periods ended June 28, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year ending January 3, 2016, or for any other future period. The Company’s fiscal quarters end on the Sunday closest to the end of the applicable calendar quarter, except in a 53-week fiscal year, in which case the additional week falls into the fourth quarter of that fiscal year. There are 53 weeks in fiscal year 2015 . |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions. The Company believes that the estimates, judgments, and assumptions upon which it relies are reasonable based upon information available to it at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of revenue and expenses during the periods presented. To the extent there are material differences between these estimates and actual results, the Company’s financial statements would have been affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, accounts receivable, and short-term investments. Cash and cash equivalents are held with a limited number of financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. Management believes that the financial institutions that hold the Company’s deposits are credit worthy and, accordingly, minimal credit risk exists with respect to those deposits. At June 29, 2014 , the Company’s short-term investments consisted solely of certificates of deposit. There were no short-term investments as of June 28, 2015. All investments were classified as available-for-sale. The Company does not hold or issue financial instruments for trading purposes. |
Concentration of Other Risk | Concentration of Other Risk The semiconductor industry is characterized by rapid technological change, competitive pricing pressures, and cyclical market patterns. The Company’s results of operations are affected by a wide variety of factors, including general economic conditions; economic conditions specific to the semiconductor industry; demand for the Company’s products; the timely introduction of new products; implementation of new manufacturing technologies; manufacturing capacity; the availability of materials and supplies; competition; the ability to safeguard patents and intellectual property in a rapidly evolving market; reliance on assembly and wafer fabrication subcontractors; and reliance on independent distributors and sales representatives. As a result, the Company may experience substantial period-to-period fluctuations in future periods due to the factors mentioned above as well as certain other factors. |
Net Loss per Share | Net Loss per Share Basic net loss per share is computed using the weighted-average number of common shares outstanding during the period. |
Recent Accounting Pronouncement | Recent Accounting Pronouncement In April 2015, as part of its initiative to reduce complexity in accounting standards, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, "Interest--Imputation of Interest" (Subtopic 835-30) (the "Update"). Under the Update, debt issuance costs related to a recognized liability should be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement of debt issuance costs is not affected by the Update. The Update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Update should be applied on a retrospective basis. The Company has adopted this Update concurrent with the ALU Loan Agreement debt taken down in the second quarter of 2015. See Note 5--Notes Payable and Long-Term Debt. |
Ikanos and Summary of Signifi14
Ikanos and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
Calculation of Basic and Diluted Net Loss Per Common Share | The calculation of basic and diluted net loss per common share is as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Net loss $ (12,316 ) $ (12,330 ) $ (24,309 ) $ (22,635 ) Weighted average shares outstanding 17,103 9,910 16,339 9,893 Basic and diluted net loss per share $ (0.72 ) $ (1.24 ) $ (1.49 ) $ (2.29 ) |
Potential Common Shares have been Excluded from Calculation of Diluted Net Loss Per Share | The following potential common shares have been excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Anti-dilutive securities: Weighted average warrants to purchase common stock (a) 474 780 474 780 Weighted average restricted stock and restricted stock units 1,266 137 1,089 131 Weighted average options to purchase common stock 2,950 1,838 2,658 1,850 4,690 2,755 4,221 2,761 (a) The warrants were issued to ALU as part of the collaboration arrangement. On April 30, 2015 the warrant agreements were amended to reprice the warrants at $2.75 and to allow for a reduction in the pricing of the warrants upon an issuance or sale of shares of the Company's common stock at any time prior to the 12 -month anniversary of the amendment. |
Inventory, net (Tables)
Inventory, net (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory consisted of the following (in thousands): June 28, 2015 December 28, 2014 Finished goods $ 1,775 $ 1,895 Purchased parts and raw materials 216 69 $ 1,991 $ 1,964 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following (in thousands): June 28, 2015 December 28, 2014 Machinery and equipment $ 29,150 $ 27,335 Software 12,382 6,591 Intellectual property (a) 5,069 5,530 Computer equipment 6,848 6,175 Furniture and fixtures 971 991 Leasehold improvements 1,846 1,818 Construction in progress 141 — 56,407 48,440 Less: Accumulated depreciation and amortization (42,460 ) (39,859 ) $ 13,947 $ 8,581 (a) During the first quarter of 2015, the Company utilized intellectual property purchase obligations and capitalized its $6.0 million obligation as property and equipment with a useful life of six years . |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): June 28, 2015 December 28, 2014 Accrued compensation and related benefits $ 3,218 $ 2,139 Accrued intellectual property purchase obligations (a) 2,028 — Deferred revenue 895 529 Deferred rent 563 699 Warranty accrual 108 131 Accrued royalties 594 751 Other accrued liabilities 3,636 2,211 $ 11,042 $ 6,460 (a) Included in long-term liabilities is an additional $2.5 million in intellectual property purchase obligations payable in 2016 and 2017 . |
Significant Customer Informat18
Significant Customer Information and Segment Reporting (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Revenue and Percentage of Revenue by Geographic Region | The following table summarizes revenue by geographic region, based on the country in which the customer's headquarters is located (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 France $ 3,052 28 % $ 2,376 21 % $ 6,582 31 % $ 6,886 27 % Japan 3,035 27 2,084 19 5,998 28 5,840 35 Taiwan 2,494 23 5,246 46 4,620 22 9,043 23 Germany 410 4 111 1 676 3 1,313 5 Korea 375 3 213 2 1,408 7 277 1 China 187 2 218 2 294 1 544 2 United States 182 2 76 — 239 1 147 1 Other 1,333 11 931 9 1,432 7 1,718 6 $ 11,068 100 % $ 11,255 100 % $ 21,249 100 % $ 25,768 100 % |
Revenue and Percentage of Revenue by Product Family | Revenue by product family is as follows (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Gateway $ 6,854 62 % $ 8,817 78 % $ 13,792 65 % $ 19,122 74 % Access 4,214 38 2,438 22 7,457 35 6,646 26 $ 11,068 100 % $ 11,255 100 % $ 21,249 100 % $ 25,768 100 % |
Distribution of Long-Lived Assets (Excluding Intangible Assets and Other Assets) | The distribution of long-lived assets (excluding intangible assets and other assets) was as follows (in thousands): June 28, 2015 December 28, 2014 United States $ 13,843 $ 8,257 Asia, predominantly India 104 324 $ 13,947 $ 8,581 |
Ikanos and Summary of Signifi19
Ikanos and Summary of Significant Accounting Policies - Liquidity Narrative (Details) shares in Millions | Feb. 04, 2015USD ($) | Sep. 29, 2014USD ($)shares | Jun. 28, 2015USD ($) | Jun. 29, 2014USD ($) | Jun. 28, 2015USD ($) | Jun. 29, 2014USD ($) | Apr. 30, 2015USD ($) | Oct. 07, 2014 |
Line of Credit Facility [Line Items] | ||||||||
Net Loss | $ (12,316,000) | $ (12,330,000) | $ (24,309,000) | $ (22,635,000) | ||||
Accumulated deficit | $ 393,700,000 | $ 393,700,000 | ||||||
Private Placement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds from issuance of common stock | $ 11,500,000 | |||||||
Payments of stock issuance costs | 800,000 | |||||||
Alcatel Lucent and Tallwood [Member] | Private Placement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Financial commitment | $ 45,000,000 | |||||||
Alcatel-Lucent [Member] | Private Placement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Number of common stock shares issued | shares | 1.2 | |||||||
Gross proceeds from issuance of private placement | $ 5,000,000 | |||||||
Tallwood Investors [Member] | Private Placement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Number of common stock shares issued | shares | 2.7 | |||||||
Gross proceeds from issuance of private placement | 11,200,000 | $ 11,300,000 | ||||||
Common Stock [Member] | Private Placement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Payments of stock issuance costs | $ 800,000 | |||||||
Loan And Security Agreement [Member] | Alcatel-Lucent [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 10,000,000 | |||||||
Revolving Credit Facility [Member] | Loan And Security Agreement [Member] | Silicon Valley Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Minimum adjusted quick ratio | 1.2 |
Ikanos and Summary of Signifi20
Ikanos and Summary of Significant Accounting Policies - Reverse Stock Split Narrative (Details) shares in Millions | Feb. 13, 2015shares | Feb. 11, 2015 | Feb. 12, 2015shares |
Class of Stock [Line Items] | |||
Reverse stock split conversion ratio | 0.1 | ||
Shares outstanding | 17 | 170.1 | |
Number of awards outstanding | 2.5 | 24.8 | |
Number of shares available for grant | 8.5 | 84.9 | |
Minimum [Member] | |||
Class of Stock [Line Items] | |||
Reverse stock split conversion ratio | 0.2 | ||
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Reverse stock split conversion ratio | 0.1 |
Ikanos and Summary of Signifi21
Ikanos and Summary of Significant Accounting Policies - Rights Offering and Registration Statement on Form S-1 Narrative (Details) - Private Placement [Member] - USD ($) $ / shares in Units, $ in Millions | Feb. 04, 2015 | Nov. 26, 2014 |
Class of Stock [Line Items] | ||
Capital shares reserved for future issuance | 14,500,000 | |
Proceeds from issuance of common stock | $ 11.5 | |
Payments of stock issuance costs | $ 0.8 | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of securities called by each warrant | 1.459707 | |
Exercise price of warrants (USD per share) | $ 4.10 | $ 4.10 |
Shares issued | 3,000,000 | |
Payments of stock issuance costs | $ 0.8 |
Ikanos and Summary of Signifi22
Ikanos and Summary of Significant Accounting Policies - Special Equity Grant, 2015 Performance Stock Option Grants and Option Exchange Narrative (Details) | Mar. 23, 2015$ / sharesshares | Feb. 20, 2015 | Jun. 28, 2015 | Dec. 28, 2014$ / shares | Nov. 20, 2014shares |
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, partially vested options | 36 months | ||||
Vesting period, fully vested options | 24 months | ||||
Tender Offer [Member] | Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise price (USD per share) | $ / shares | $ 2.80 | $ 4.10 | |||
Shares issued in period | 1,300,000 | ||||
Tender Offer [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exchange ratio | 1 | ||||
Chief Executive Officer [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares held by employee | 60,000 | ||||
Chief Executive Officer [Member] | Tender Offer [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exchange ratio | 0.8 | ||||
Shares issued in period | 48,000 |
Ikanos and Summary of Signifi23
Ikanos and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customers related to revenue | 3 | 3 | |||
Accounts Receivable [Member] | Customer one [Member] | |||||
Concentration Risk [Line Items] | |||||
Credit risk with respect to revenue | 33.00% | 44.00% | |||
Accounts Receivable [Member] | Customer two [Member] | |||||
Concentration Risk [Line Items] | |||||
Credit risk with respect to revenue | 24.00% | 21.00% | |||
Accounts Receivable [Member] | Customer three [Member] | |||||
Concentration Risk [Line Items] | |||||
Credit risk with respect to revenue | 12.00% | 16.00% | |||
Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customers related to revenue | 3 | 3 | 3 | 4 | |
Sales Revenue, Net [Member] | Customer one [Member] | |||||
Concentration Risk [Line Items] | |||||
Credit risk with respect to revenue | 27.00% | 35.00% | 31.00% | 27.00% | |
Sales Revenue, Net [Member] | Customer two [Member] | |||||
Concentration Risk [Line Items] | |||||
Credit risk with respect to revenue | 27.00% | 19.00% | 28.00% | 25.00% | |
Sales Revenue, Net [Member] | Customer three [Member] | |||||
Concentration Risk [Line Items] | |||||
Credit risk with respect to revenue | 21.00% | 18.00% | 17.00% | 13.00% | |
Sales Revenue, Net [Member] | Customer four [Member] | |||||
Concentration Risk [Line Items] | |||||
Credit risk with respect to revenue | 10.00% |
Ikanos and Summary of Signifi24
Ikanos and Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net Loss | $ (12,316) | $ (12,330) | $ (24,309) | $ (22,635) |
Weighted average shares outstanding (shares) | 17,103 | 9,910 | 16,339 | 9,893 |
Basic and diluted net loss per share (USD per share) | $ (0.72) | $ (1.24) | $ (1.49) | $ (2.29) |
Ikanos and Summary of Signifi25
Ikanos and Summary of Significant Accounting Policies - Potential Common Shares have been Excluded from Calculation of Diluted Net Loss Per Share (Detail) - $ / shares shares in Thousands | Apr. 30, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total | 4,690 | 2,755 | 4,221 | 2,761 | |
Weighted average warrants to purchase common stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total | 474 | 780 | 474 | 780 | |
Weighted average restricted stock and restricted stock units [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total | 1,266 | 137 | 1,089 | 131 | |
Weighted average options to purchase common stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total | 2,950 | 1,838 | 2,658 | 1,850 | |
Alcatel-Lucent [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exercise price of warrants (USD per share) | $ 2.75 | ||||
Anniversary of the amendment period | 12 months |
Inventory, net - Components of
Inventory, net - Components of Inventory (Detail) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,775 | $ 1,895 |
Purchased parts and raw materials | 216 | 69 |
Inventory | $ 1,991 | $ 1,964 |
Inventory, net - Narrative (Det
Inventory, net - Narrative (Detail) - USD ($) $ in Millions | Jun. 28, 2015 | Dec. 28, 2014 |
Inventory Disclosure [Abstract] | ||
Prepayment on delivery of finished goods | $ 0.3 | $ 1 |
Purchase obligation | $ 5.4 |
Property and Equipment, net - C
Property and Equipment, net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015 | Dec. 28, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 56,407 | $ 48,440 |
Less: Accumulated depreciation and amortization | (42,460) | (39,859) |
Property and equipment, total | 13,947 | 8,581 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 29,150 | 27,335 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,382 | 6,591 |
Intellectual property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,069 | 5,530 |
Property and equipment, total | $ 6,000 | |
Property useful life | 6 years | |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,848 | 6,175 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 971 | 991 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,846 | 1,818 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 141 | $ 0 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense for property and equipment | $ 1.4 | $ 1 | $ 2.7 | $ 2 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Long-term Purchase Commitment [Line Items] | ||
Accrued compensation and related benefits | $ 3,218 | $ 2,139 |
Accrued intellectual property purchase obligations | 2,028 | 0 |
Deferred revenue | 895 | 529 |
Deferred rent | 563 | 699 |
Warranty accrual | 108 | 131 |
Accrued royalties | 594 | 751 |
Other accrued liabilities | 3,636 | 2,211 |
Accrued liabilities | 11,042 | $ 6,460 |
Capital Addition Purchase Commitments [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Accrued intellectual property, noncurrent | $ 2,500 |
Notes Payable and Long-Term D31
Notes Payable and Long-Term Debt (Details) | Apr. 30, 2015USD ($)$ / shares | Mar. 29, 2015USD ($) | Jun. 28, 2015USD ($) | Dec. 28, 2014USD ($) | Dec. 10, 2014USD ($)$ / sharesshares | Oct. 07, 2014USD ($) | Sep. 29, 2014$ / sharesshares |
Debt Instrument [Line Items] | |||||||
Long-term debt, net of debt discount | $ 9,528,000 | $ 0 | |||||
Principal | 10,000,000 | ||||||
Debt discount | $ 500,000 | ||||||
Interest rate | 9.50% | ||||||
Percentage of principal that must be paid | 15.00% | ||||||
Amended SVB Loan Agreement [Member] | SVB [Member] | Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 20,000,000 | ||||||
Minimum adjusted quick ratio | 1.2 | ||||||
SVB Amendment No. 2 [Member] | SVB [Member] | Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Final payment fee | $ 250,000 | ||||||
Amount outstanding | $ 5,000,000 | ||||||
Interest rate at period end | 6.50% | ||||||
SVB Amendment No. 2 [Member] | SVB [Member] | Line of Credit [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis points | 75.00% | ||||||
ALU Loan Amendment [Member] | ALU [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from debt | $ 10,000,000 | ||||||
ALU Loan Amendment [Member] | ALU [Member] | Other Current Assets [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Value of warrants | $ 500,000 | $ 600,000 | |||||
ALU Loan Amendment [Member] | ALU [Member] | First Warrant [Member] | Common Stock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of securities called by each warrant | shares | 315,789 | ||||||
Exercise price of warrants (USD per share) | $ / shares | $ 4.75 | ||||||
ALU Loan Amendment [Member] | ALU [Member] | Second Warrant [Member] | Common Stock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of securities called by each warrant | shares | 157,895 | ||||||
Exercise price of warrants (USD per share) | $ / shares | $ 4.10 | ||||||
ALU Loan Amendment [Member] | ALU [Member] | Amended Warrants [Member] | Common Stock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Exercise price of warrants (USD per share) | $ / shares | $ 2.75 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Expiration dates | 2,018 | |||
Rent expense | $ 0.6 | $ 0.6 | $ 1.2 | $ 1.2 |
Leases original terms | 1 year | |||
Future minimum lease payments due in 2015 | 1.3 | $ 1.3 | ||
Future minimum lease payments due in 2016 | 2 | 2 | ||
Future minimum lease payments due in 2017 | 1.6 | 1.6 | ||
Future minimum lease payments due in 2018 | 0.4 | 0.4 | ||
Inventory purchase obligations | $ 5.4 | $ 5.4 |
Significant Customer Informat33
Significant Customer Information and Segment Reporting - Narrative (Detail) | 6 Months Ended |
Jun. 28, 2015Product | |
Segment Reporting [Abstract] | |
Number of product families | 2 |
Significant Customer Informat34
Significant Customer Information and Segment Reporting - Revenue and Percentage of Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 11,068 | $ 11,255 | $ 21,249 | $ 25,768 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
France [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 3,052 | $ 2,376 | $ 6,582 | $ 6,886 |
Percentage of revenue | 28.00% | 21.00% | 31.00% | 27.00% |
Japan [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 3,035 | $ 2,084 | $ 4,620 | $ 9,043 |
Percentage of revenue | 27.00% | 19.00% | 22.00% | 23.00% |
Taiwan [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 2,494 | $ 5,246 | $ 5,998 | $ 5,840 |
Percentage of revenue | 23.00% | 46.00% | 28.00% | 35.00% |
Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 410 | $ 111 | $ 676 | $ 1,313 |
Percentage of revenue | 4.00% | 1.00% | 3.00% | 5.00% |
Korea [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 375 | $ 213 | $ 1,408 | $ 277 |
Percentage of revenue | 3.00% | 2.00% | 7.00% | 1.00% |
China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 187 | $ 218 | $ 294 | $ 544 |
Percentage of revenue | 2.00% | 2.00% | 1.00% | 2.00% |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 182 | $ 76 | $ 239 | $ 147 |
Percentage of revenue | 2.00% | 0.00% | 1.00% | 1.00% |
Other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 1,333 | $ 931 | $ 1,432 | $ 1,718 |
Percentage of revenue | 11.00% | 9.00% | 7.00% | 6.00% |
Significant Customer Informat35
Significant Customer Information and Segment Reporting - Revenue and Percentage of Revenue by Product Family (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 11,068 | $ 11,255 | $ 21,249 | $ 25,768 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Gateway [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 6,854 | $ 8,817 | $ 13,792 | $ 19,122 |
Percentage of revenue | 62.00% | 78.00% | 65.00% | 74.00% |
Access [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 4,214 | $ 2,438 | $ 7,457 | $ 6,646 |
Percentage of revenue | 38.00% | 22.00% | 35.00% | 26.00% |
Significant Customer Informat36
Significant Customer Information and Segment Reporting - Distribution of Long-Lived Assets (Excluding Intangible Assets and Other Assets) (Detail) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment, net | $ 13,947 | $ 8,581 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment, net | 13,843 | 8,257 |
Asia, predominantly India [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment, net | $ 104 | $ 324 |
Subsequent Events (Details)
Subsequent Events (Details) - Aug. 05, 2015 - Qualcomm Atheros, Inc [Member] - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Thousands | Total |
Subsequent Event [Line Items] | |
Common stock, par value (USD per share) | $ 0.001 |
Share price (USD per share) | $ 2.75 |
Number of options that have a exercise price greater than the offer price | 39,800 |
Termination fee | $ 1,750 |
Equity percentage of the transaction | 3.50% |
Percentage of voting interests acquired | 50.00% |
Percent shares outstanding for tender and support agreement | 30.00% |
Director and Executive Officers [Member] | |
Subsequent Event [Line Items] | |
Percent of shares outstanding | 58.20% |