Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document 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 | NPTN | |
Entity Registrant Name | NEOPHOTONICS CORP | |
Entity Central Index Key | 1,227,025 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,079,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 81,699 | $ 82,500 |
Short-term investments | 6,047 | 19,015 |
Restricted cash | 3,714 | 4,085 |
Accounts receivable, net of allowance for doubtful accounts | 70,877 | 80,610 |
Inventories | 69,159 | 48,237 |
Assets held for sale | 13,953 | |
Prepaid expenses and other current assets | 26,797 | 22,396 |
Total current assets | 258,293 | 270,796 |
Property, plant and equipment, net | 122,208 | 106,867 |
Purchased intangible assets, net | 5,204 | 5,562 |
Goodwill | 1,115 | 1,115 |
Other long-term assets | 6,449 | 6,547 |
Total assets | 393,269 | 390,887 |
Current liabilities: | ||
Accounts payable | 82,750 | 84,766 |
Notes payable and short-term borrowing | 29,484 | 30,190 |
Current portion of long-term debt | 5,263 | 747 |
Accrued and other current liabilities | 37,639 | 30,625 |
Total current liabilities | 155,136 | 146,328 |
Long-term debt, net of current portion | 6,028 | 10,215 |
Other noncurrent liabilities | 12,836 | 8,939 |
Total liabilities | 174,000 | 165,482 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock, $0.0025 par value, 10,000 shares authorized, no shares issued or outstanding | ||
Common stock, $0.0025 par value, 100,000 shares authorized, At March 31, 2017, 42,664 shares issued and outstanding; at December 31, 2016, 42,526 shares issued and outstanding | 107 | 106 |
Additional paid-in capital | 535,292 | 532,378 |
Accumulated other comprehensive loss | (5,930) | (8,401) |
Accumulated deficit | (310,200) | (298,678) |
Total stockholders' equity | 219,269 | 225,405 |
Total liabilities and stockholders' equity | $ 393,269 | $ 390,887 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0025 | $ 0.0025 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0025 | $ 0.0025 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 42,664 | 42,526 |
Common stock, shares outstanding | 42,664 | 42,526 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 71,688 | $ 99,145 |
Cost of goods sold | 53,185 | 68,023 |
Gross profit | 18,503 | 31,122 |
Operating expenses: | ||
Research and development | 15,544 | 12,952 |
Sales and marketing | 4,932 | 3,931 |
General and administrative | 11,426 | 9,084 |
Amortization of purchased intangible assets | 118 | 453 |
Acquisition and asset sale related costs | 130 | |
Restructuring charges | 227 | |
Gain on asset sale | (2,000) | |
Total operating expenses | 30,377 | 26,420 |
Income (loss) from operations | (11,874) | 4,702 |
Interest income | 73 | 55 |
Interest expense | (137) | (102) |
Other income (expense), net | 249 | (1,304) |
Total interest and other income (expense), net | 185 | (1,351) |
Income (loss) before income taxes | (11,689) | 3,351 |
Income tax (provision) benefit | 167 | (1,041) |
Net income (loss) | $ (11,522) | $ 2,310 |
Basic net income (loss) per share | $ (0.27) | $ 0.06 |
Diluted net income (loss) per share | $ (0.27) | $ 0.05 |
Weighted average shares used to compute basic net income (loss) per share | 42,615 | 41,121 |
Weighted average shares used to compute diluted net income (loss) per share | 42,615 | 43,648 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ (11,522) | $ 2,310 |
Other comprehensive income: | ||
Foreign currency translation adjustments net of zero tax | 2,468 | 2,065 |
Unrealized gains on available-for-sale securities, net of zero tax | 3 | 28 |
Total other comprehensive income | 2,471 | 2,093 |
Comprehensive income (loss) | $ (9,051) | $ 4,403 |
Consolidated Statements of Com6
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] | ||
Foreign currency translation adjustments, tax | $ 0 | $ 0 |
Unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ (11,522) | $ 2,310 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6,185 | 5,453 |
Stock-based compensation expense | 1,872 | 3,439 |
Deferred taxes | 548 | 5 |
Amortization of investment, debt and other | 76 | 28 |
(Gain) loss on sale of assets and other disposals | (1,687) | 31 |
Gain on foreign currency hedges | (652) | |
Allowance for doubtful accounts | 80 | (339) |
Write-down of inventories | 196 | 742 |
Foreign currency remeasurement and other, net | 38 | 565 |
Change in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 9,826 | (3,628) |
Inventories | (19,260) | 3,037 |
Prepaid expenses and other assets | 3,106 | (2,122) |
Accounts payable | (3,912) | 3,178 |
Accrued and other liabilities | (3,642) | (7,515) |
Net cash provided by (used in) operating activities | (18,748) | 5,184 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (17,570) | (4,650) |
Proceeds from sale of property, plant and equipment and other assets | 21,745 | 6 |
Purchase of marketable securities | (38,806) | (32,045) |
Proceeds from sale of marketable securities | 45,286 | 15,516 |
Proceeds from maturity of marketable securities | 6,458 | 1,500 |
Change in restricted cash | 402 | 18 |
Settlement of foreign currency hedges | 616 | |
Net cash provided by (used in) investing activities | 18,131 | (19,655) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options and issuance of stock under ESPP | 499 | 1,233 |
Tax withholding on restricted stock units | (37) | (34) |
Payments for public stock offering | (117) | |
Proceeds from bank loans, net of debt issuance costs | 23,625 | 23,800 |
Repayment of bank loans | (24,020) | (24,017) |
Proceeds from issuance of notes payable | 2,966 | 4,984 |
Repayment of notes payable | (3,722) | (5,047) |
Net cash provided by (used in) financing activities | (806) | 919 |
Effect of exchange rates on cash and cash equivalents | 622 | 203 |
Net decrease in cash and cash equivalents | (801) | (13,349) |
Cash and cash equivalents at the beginning of the period | 82,500 | 76,088 |
Cash and cash equivalents at the end of the period | 81,699 | 62,739 |
Supplemental disclosure of noncash investing and financing activities: | ||
Increase in unpaid property, plant and equipment | $ (1,226) | $ (1,355) |
Basis of presentation and signi
Basis of presentation and significant accounting policies | 3 Months Ended |
Mar. 31, 2017 | |
Basis of presentation and significant accounting policies | |
Basis of presentation and significant accounting policies | Note 1. Basis of presentation and significant accounting policies Basis of Presentation and Consolidation The condensed consolidated financial statements of NeoPhotonics Corporation (“NeoPhotonics” or the “Company”) as of March 31, 2017 and for the three months ended March 31, 2017 and 2016, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes normally provided in the Company’s annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the interim periods. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results expected for the entire fiscal year. All intercompany accounts and transactions have been eliminated. Certain Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, any of the following areas could have a negative effect on the Company in terms of its future financial position, results of operations or cash flows: the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of a small number of its larger customers; ability to obtain additional financing; inability to meet certain debt covenants; fundamental changes in the technology underlying the Company’s products; the hiring, training and retention of key employees; successful and timely completion of product design efforts; and new product design introductions by competitors. Concentration In the three months ended March 31, 2017, Huawei Technologies Co. Ltd. and their affiliate HiSilicon Technologies (together with Huawei Technologies Co. Ltd., “Huawei”) and Ciena Corporation (“Ciena”) accounted for approximately 41% and 14% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 90% of the Company’s total revenue. In the three months ended March 31, 2016, Huawei and Ciena accounted for approximately 54% and 16% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 92% of the Company’s total revenue. As of March 31, 2017, one customer accounted for approximately 48% of the Company’s accounts receivable. As of December 31, 2016, three customers accounted for approximately 42%, 12% and 12%, respectively, of the Company’s accounts receivable. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Significant estimates made by management include: the useful lives of property, plant and equipment and intangible assets as well as future cash flows to be generated by those assets; fair values of identifiable assets acquired and liabilities assumed in business combinations; allowances for doubtful accounts; valuation allowances for deferred tax assets; valuation of excess and obsolete inventories; warranty reserves; litigation accrual and recognition of stock-based compensation, among others. Actual results could differ from these estimates. Summary of Significant Accounting Policies Effective January 1, 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies certain aspects of the accounting for shared-based payment transactions, including income taxes, classification of awards and classification on the statement of cash flows. It eliminates that requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. Upon adoption, the Company’s previously unrecognized excess tax benefits of $8.6 million had no impact on its accumulated deficit balance as the related U.S. deferred tax assets were fully offset by a valuation allowance. The Company elected to apply the change in presentation on the statements of cash flows prospectively and elected to continue to account for estimated forfeitures over the vest period of the shared-based awards. Effective January 1, 2017, the Company also adopted ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires entities to measure most inventory “at the lower of cost and net realizable value” but does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. The impact on the Company’s consolidated financial statements upon the adoption of this standard was immaterial. There have been no other significant changes in the Company’s significant accounting policies in the three months ended March 31, 2017, as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended December 31, 2016. Recent accounting pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This standard amends the goodwill impairment test to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, up to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective prospectively for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). This standard provides a framework in determining when a set of assets and activities is a business. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017 on a prospective basis. The impact on the Company’s financial statements upon the adoption of this standard is expected to be immaterial. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASC 2016-18”). This standard provides guidance on the classification and presentation of restricted cash in the statement of cash flows and must be applied retrospectively. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). This standard provides guidance on the tax accounting for the transferring and receiving entities upon transfer of an asset. ASU 2016-16 is effective for the Company’s interim and annual periods beginning after December 15, 2017 and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This standard provides guidance on the classification of certain cash receipts and payments in the statement of cash flows . It is effective, retrospectively, for the Company’s annual and interim reporting periods beginning after December 15, 2017 or prospectively from the earliest data practicable if retrospective application is impracticable. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 amends existing guidance on the impairment of financial assets and adds an impairment model that is based on expected losses rather than incurred losses and requires an entity to recognize as an allowance its estimate of expected credit losses for its financial assets. An entity will apply this guidance through a cumulative-effect adjustment to retained earnings upon adoption (a modified-retrospective approach) while a prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. It is effective for the Company’s annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 introduces a lessee model that requires recognition of assets and liabilities arising from qualified leases on the consolidated balance sheets and consolidated statements of operations and to disclose qualitative and quantitative information about lease transactions. It is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition is required with certain optional practical expedients allowed. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments and is effective for the Company’s annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In May 2014, the FASB issued ASU N o. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard, along with the amendments issued in 2016 and 2015, provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. This standard, as amended, is effective for annual and interim periods beginning after December 15, 2017 and permits entities to early adopt for annual and interim reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company expects to adopt this standard, as amended, effective January 1, 2018 and is in the process of evaluating the impact of adoption on its consolidated financial statements. |
Net income (loss) per share
Net income (loss) per share | 3 Months Ended |
Mar. 31, 2017 | |
Net income (loss) per share | |
Net income (loss) per share | Note 2. Net income (loss) per share The following table sets forth the computation of the basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Numerator: Net income (loss) $ (11,522) $ 2,310 Denominator: Weighted average shares used to compute per share amount: Basic 42,615 41,121 Dilutive effect of equity awards - 2,527 Diluted 42,615 43,648 Basic net income (loss) per share $ (0.27) $ 0.06 Diluted net income (loss) per share $ (0.27) $ 0.05 The Company has excluded the impact of the following employee stock options, restricted stock units and shares expected to be issued under its employee stock purchase plan from the computation of diluted net income (loss) per share, as their effect would have been antidilutive (in thousands): Three Months Ended March 31, 2017 2016 Employee stock options 4,161 498 Restricted stock units 2,168 1 Employee stock purchase plan 378 148 6,707 647 |
Cash, cash equivalents, short-t
Cash, cash equivalents, short-term investments, and restricted cash | 3 Months Ended |
Mar. 31, 2017 | |
Cash, cash equivalents, short-term investments, and restricted cash | |
Cash, cash equivalents, short-term investments and restricted cash | Note 3. Cash, cash equivalents, short-term investments, and restricted cash The following table summarizes the Company’s cash, cash equivalents, short-term investments and restricted cash (in thousands): March 31, December 31, 2017 2016 Cash and cash equivalents: Cash $ 57,890 $ 58,691 Cash equivalents 23,809 23,809 Cash and cash equivalents $ 81,699 $ 82,500 Short-term investments $ 6,047 $ 19,015 Restricted cash $ 3,714 $ 4,085 As of March 31, 2017 and December 31, 2016, restricted cash included approximately $2.0 million pursuant to an asset purchase agreement with Optoelectronics Components C o., Ltd. (“APAT OE”) relating to the asset sale closed in January 2017, in addition to the compensating balances relating to the Company’s notes payable issued under its line of credit facilities in China (see Note 8). The following table summarizes the Company’s unrealized gains and losses related to its cash equivalents and short-term investments in marketable securities designated as available-for-sale (in thousands): As of March 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market accounts $ 23,809 $ — $ — $ 23,809 $ 23,809 $ — $ — $ 23,809 Money market funds 2,306 — — 2,306 199 — — 199 Corporate debt securities — — — — 9,438 4 (3) 9,439 Government agency securities 2,253 — (10) 2,243 3,767 — (10) 3,757 U.S. government securities 1,504 — (6) 1,498 5,008 — (10) 4,998 Sovereign government bonds — — — — 622 — — 622 Total $ 29,872 $ — $ (16) $ 29,856 $ 42,843 $ 4 $ (23) $ 42,824 Reported as: Cash equivalents $ 23,809 $ — $ — $ 23,809 $ 23,809 $ — $ — $ 23,809 Short-term investments 6,063 — (16) 6,047 19,034 4 (23) 19,015 Total $ 29,872 $ — $ (16) $ 29,856 $ 42,843 $ 4 $ (23) $ 42,824 Maturities of marketable securities were as follows (in thousands): March 31, December 31, 2017 2016 Less than 1 year $ 26,115 $ 36,054 Due in 1 to 2 years 3,741 6,468 Due in 3 to 5 years — 302 Total $ 29,856 $ 42,824 Realized gains and losses on the sale of marketable securities during the three months ended March 31, 2017 and 2016 were immaterial. The Company did not recognize any impairment losses on its marketable securities during the three months ended March 31, 2017 or 2016. As of March 31, 2017 and December 31, 2016 , the Company did not have any investments in marketable securities that were in an unrealized loss position for a period in excess of 12 months. |
Fair value disclosures
Fair value disclosures | 3 Months Ended |
Mar. 31, 2017 | |
Fair value disclosures | |
Fair value disclosures | Note 4. Fair value disclosures Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company's assets that are measured at fair value on a recurring basis (in thousands): As of March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ 2,306 $ — $ — $ 2,306 $ 199 $ — $ — $ 199 U.S. government securities 1,498 — — 1,498 4,998 — — 4,998 Money market accounts — 23,809 — 23,809 — 23,809 — 23,809 Corporate debt securities — — — — — 9,439 — 9,439 Government agency securities — 2,243 — 2,243 — 3,757 — 3,757 Sovereign government bonds — — — — — 622 — 622 Total $ 3,804 $ 26,052 $ — $ 29,856 $ 5,197 $ 37,627 $ — $ 42,824 Foreign currency forward contracts $ — $ * $ — $ * $ — $ * $ — $ * Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 814 $ — $ — $ 814 $ 622 $ — $ — $ 622 *The fair value of the Company’s foreign currency forward contract was immaterial as of March 31, 2017 and December 31, 2016. The Company offers a Non-Qualified Deferred Compensation Plan (“NQDC Plan”) to a select group of its highly compensated employees. The NQDC Plan provides participants the opportunity to defer payment of certain compensation as defined in the NQDC Plan. A Rabbi Trust has been established to fund the NQDC Plan obligation, which was fully funded at March 31, 2017. The assets held by the Rabbi Trust are substantially in the form of exchange traded mutual funds and are included in the Company’s other long-term assets on its condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016. Effective July 1, 2016, the Company maintains a hedging program using forward exchange contracts as economic hedges, to protect against volatility of foreign exchange rate exposure when it is deemed economical to do so, based on a cost-benefit analysis that considers the magnitude of the exposure, the volatility of the exchange rate and the cost of the hedging instrument. The forward contracts are not designated for hedge accounting. Under the hedging program, the Company enters into monthly forward exchange contracts, that have average maturities of one month, to offset the effects of exchange rate exposures for its net intercompany activities denominated in Chinese Renminbi, or RMB, by buying and selling the underlying foreign currency in the future at fixed exchange rates, to offset the consequences of changes in foreign exchange on the balance sheet. Accordingly, fair value changes in the forward contracts help mitigate the changes in the value of the re-measurement of the hedged assets and liabilities attributable to changes in foreign currency exchange rates, except to the extent of the spot-forward differences. The net effect of fair value changes is reported in other income (expense), net. As of March 31, 2017, the fair value of the Company’s foreign currency forward contract was immaterial due to the short-term nature of the contract, which generally expires at each month-end. The total notional value of our foreign currency exchange contract as of March 31, 2017 was $26.4 million for RMB. The following table presents the Company's liabilities that are measured at fair value on a recurring basis (in thousands): As of March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Rusnano payment derivative $ — $ — $ 389 $ 389 $ — $ — $ 389 $ 389 Foreign currency forward contracts — 4 — 4 — 41 — 41 $ — $ 4 $ 389 $ 393 $ — $ 41 $ 389 $ 430 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets or liabilities are measured at fair value on a nonrecurring basis. These assets consist primarily of non-financial assets such as goodwill and intangible assets accounted for under the cost method. In the three months ended March 31, 2017, the Company recorded a $6.7 million contingent liability within accrued and other current liabilities on its balance sheet in connection with the contingent indemnification commitments pursuant to an asset sale closed in January 2017. See Note 5. These assets and liabilities were measured at fair value based on events or circumstances the Company identified as having significant impact on their fair value during the period. To arrive at the valuation of these assets, the Company considered the discounted cash flows to determine fair value using best estimates and unobservable inputs (Level 3). Assets and Liabilities Not Measured at Fair Value The carrying values of accounts receivable, accounts payable, notes payable and short-term borrowings approximate their fair values due to the short-term nature and liquidity of these financial instruments. The fair values of the Company’s long-term debt have been calculated using an estimate of the interest rate the Company would have had to pay on the issuance of liabilities with a similar maturity and discounting the cash flows at that rate which it considers to be a level 2 fair value measurement. The fair values, which approximate the carrying value of the long-term debt, do not necessarily give an indication of the amount that the Company would currently have to pay to extinguish any of this debt. |
Asset sale
Asset sale | 3 Months Ended |
Mar. 31, 2017 | |
Asset sale | |
Asset sale | Note 5. Asset sale In January 2017, the Company completed the sale of its Low Speed Transceiver Products’ assets to APAT OE pursuant to an asset purchase agreement dated December 14, 2016 for consideration of approximately $25.0 million (in RMB equivalent) plus approximately $1.4 million (in RMB equivalent) post-closing transaction service fees to be received under a transition services agreement with APAT OE in which the Company will provide short-term manufacturing and other specific services pursuant to such agreement. The related supply chain purchase commitments and value-added tax obligations have been assumed by APAT OE. The receivable and payable balances related to the transaction service arrangement are recorded within prepaid expenses and other current assets or accrued and other current liabilities on the Company’s consolidated financial statements. As of December 31, 2016, assets held for sale was $13.9 million, consisted of $13.1 million in inventories and $0.8 million in property, plant and equipment. As a result of post-closing adjustments, total consideration was reduced by approximately $3.4 million for inventory. In addition, an immaterial amount of property, plant and equipment was reclassified from assets held for sale. Upon closing, assets sold to APAT OE were approximately $12.8 million, including approximately $12.1 million in inventories and $0.7 million in property, plant and equipment. The adjusted consideration received of approximately $21.6 million is subject to further reduction of up to $10.0 million for any indemnification claims. The Company recorded a reserve of $6.7 m illion within accrued and other current liabilities as of March 31, 2017 for potential claims and an estimated $0.2 million in additional property, plant and equipment purchases. The Company recognized a $2.0 million gain on the sale of these assets within operating income in the three months ended March 31, 2017. All of the Low Speed Transceiver Products were part of the Company’s Network Products and Solution product group and included the low speed optical network (PON) products for which the end-of-life plan was announced in mid-2016. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2017 | |
Balance sheet components | |
Balance sheet components | Note 6. Balance sheet components Accounts receivable, net Accounts receivable, net consists of the following (in thousands): March 31, 2017 December 31, 2016 Accounts receivable $ 67,734 $ 78,143 Trade notes receivable 3,273 2,892 Allowance for doubtful accounts (130) (425) $ 70,877 $ 80,610 Inventories, net Inventories, net consist of the following (in thousands): March 31, 2017 December 31, 2016 Raw materials $ 31,759 $ 23,348 Work in process 12,495 10,996 Finished goods (1) 24,905 13,893 $ 69,159 $ 48,237 (1) Finished goods inventory at customer vendor managed inventory locations was $8.0 million and $8.3 million as of March 31, 2017 and December 31, 2016, respectively. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2017 December 31, 2016 Prepaid taxes and taxes receivable $ 8,641 $ 16,102 Deposits and other prepaid expenses 3,665 3,571 Transition service agreement related (Note 5) 11,785 — Other receivable 2,706 2,723 $ 26,797 $ 22,396 Purchased intangible assets Purchased intangible assets consist of the following (in thousands): March 31, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Technology and patents $ 37,007 $ (33,660) $ 3,347 $ 36,918 $ (33,316) $ 3,602 Customer relationships 15,121 (14,175) 946 15,039 (13,990) 1,049 Leasehold interest 1,235 (324) 911 1,226 (315) 911 $ 53,363 $ (48,159) $ 5,204 $ 53,183 $ (47,621) $ 5,562 Amortization expense relating to technology and patents and the leasehold interest intangible assets is included within cost of goods sold and customer relationships within operating expenses. The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 262 $ 841 Operating expenses 118 453 Total $ 380 $ 1,294 The estimated future amortization expense of purchased intangible assets as of March 31, 2017, is as follows (in thousands): 2017 $ 960 2018 1,209 2019 806 2020 688 2021 688 Thereafter 853 $ 5,204 Accrued and other current liabilities Accrued and other current liabilities consist of the following (in thousands): March 31, 2017 December 31, 2016 Employee-related $ 13,564 $ 18,654 Income and other taxes payable 1,304 3,956 Deferred revenue, current 1,065 956 Accrued warranty 582 678 Rusnano payment derivative 389 389 Asset sale related contingent liabilities (Note 5) 6,700 — Transition service agreement related payables (Note 5) 7,742 — Other accrued expenses 6,293 5,992 $ 37,639 $ 30,625 Warranty Accrual The table below summarizes the movement in the warranty accrual, which is included in accrued and other current liabilities (in thousands): Three Months Ended March 31, 2017 2016 Beginning balance $ 678 $ 1,175 Warranty accruals (62) 102 Settlements (34) (134) Ending balance $ 582 $ 1,143 Other noncurrent liabilities Other noncurrent liabilities consist of the following (in thousands): March 31, 2017 December 31, 2016 Pension and other employee-related $ 5,444 $ 5,045 Deferred rent 1,952 1,509 Deferred revenue 2,055 1,184 Deferred income tax liabilities 52 46 Asset retirement obligations and other 3,333 1,155 $ 12,836 $ 8,939 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring | |
Restructuring | Note 7. Restructuring In January 2017, the Company initiated certain restructuring actions in connection with the sale of its Low Speed Transceiver Products’ assets. The actions consisted of workforce reductions in China. The related restructuring liability included in accrued and other current liabilities will be paid in May 2017. The Company recorded $0.3 million in r estructuring ch arges within cost of goods sold and operating expenses in the three months ended March 31, 2017. There were no restructuring charges in the three months ended March 31, 2016 or restructuring liabilities as of December 31, 2016. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt | |
Debt | Note 8. Debt The table below summarizes the carrying amount and weighted average interest rate of the Company’s debt (in thousands, except percentages): March 31, 2017 December 31, 2016 Carrying Interest Carrying Interest Amount Rate Amount Rate Notes payable $ 5,684 — $ 6,390 — Short-term borrowing-Comerica Bank 23,800 3.53 % 23,800 3.37 % Total notes payable and short-term borrowing $ 29,484 $ 30,190 Long-term debt, current and non-current: Mitsubishi Bank loans $ 11,567 1.43 % $ 11,253 1.43 % Unaccreted discount and issuance costs within current portion of long-term debt (106) (108) Unaccreted discount and issuance costs within long-term debt, net of current portion (170) (183) Total long-term debt, net of unaccreted discount and issuance costs $ 11,291 $ 10,962 Reported as: Current portion of long-term debt $ 5,263 $ 747 Long-term debt, net of current portion 6,028 10,215 Total long-term debt, net of unaccreted discount and issuance costs $ 11,291 $ 10,962 Notes payable The Company regularly issues notes payable to its suppliers in China. These notes are supported by non-interest bearing bank acceptance drafts issued under the Company’s existing line of credit facilities and are due three to six months after issuance. As a condition of the notes payable arrangements, the Company is required to keep a compensating balance at the issuing banks that is a percentage of the total notes payable balance until the amounts are settled. As of March 31, 2017, the Company’s subsidiary in China had three short-term line of credit facilities with banking institutions: · Under the first line of credit facility, the Company can borrow up to RMB 120.0 million ($17.4 million) for short-term loans at varying interest rates, or up to approximately RMB 171.4 million ($24.9 million) for bank acceptance drafts (with a 30% compensating balance requirement). This line of credit facility expires in July 2019. · Under the second line of credit facility, which expires in September 2017, the Company can borrow up to RMB 266.0 million (approximately $38.6 million) for short-term loans at varying interest rates or up to approximately RMB 380.0 million (approximately $55.1 million) for bank acceptance drafts (with a 30% compensating balance requirement) . · Under the third line of credit facility, which expires in July 2019, the Company can borrow up to RMB 30.0 million ($4.4 million) for short-term loans at varying interest rates, or up to approximately RMB 42.9 million ($6.2 million) for bank acceptance drafts (with a 30% compensating balance requirement). Under these line of credit facilities, the non-interest bearing bank acceptance drafts issued in connection with the Company’s notes payable to its suppliers in China, had an outstanding balance of $5.7 million and $6.4 million as of March 31, 2017 and December 31, 2016, respectively. In addition to the outstanding notes payable, three letters of credit totaling $1.6 million to its suppliers were issued in 2016 for equipment purchases delivered by December 2016. These letters of credit require a 30% compensating balance requirement. As of December 31, 2016, the outstanding balance of these letters of credit was immaterial and was fully repaid as of March 31, 2017. As of March 31, 2017 and December 31, 2016, compensating balances relating to these bank acceptance drafts and letters of credit issued to suppliers and the Company’s subsidiaries totaled $1.7 million and $2.1 million, respectively. Compensating balances are classified as restricted cash on the Company’s condensed consolidated balance sheets. Short-Term Borrowing The Company has a credit agreement, as amended, with Comerica Bank as lead bank in the U.S. (the “Comerica Bank Credit Facility”) with a borrowing capacity of up to $30.0 million. In September 2016, the Company amended the Comerica Bank Credit Facility to increase the limitation on the Company’s capital expenditures to $62.0 million and to provide for an extension of the maturity date to January 31, 2017. In January 2017, the Company amended the Comerica Bank Credit Facility to extend the maturity to April 30, 2017 and removed the covenant related to EBDITA. As of March 31, 2017 and December 31, 2016, the Company was in compliance with the covenants of the credit facility except for exceeding the capital expenditure limit as of December 31, 2016 for which a waiver was obtained subsequent to year end. Borrowings under the Comerica Bank Credit Facility bear interest at an interest rate option of a base rate as defined in the agreement plus 1.75% or LIBOR plus 2.75%. Base rate is based on the greater of (a) the effective prime rate, (b) the Federal Funds effective rate plus one percent, and (c) the daily adjusting LIBOR rate plus one percent. As of March 31, 2017 and December 31, 2016, the rate on the LIBOR option was 3.53% and 3.37%, respectively, and the outstanding balance was $23.8 million. Long-Term Debt On February 25, 2015, the Company entered into certain loan agreements and related agreements with the Bank of Tokyo-Mitsubishi UFJ, Ltd. (the “Mitsubishi Bank”) that provided for (i) a term loan in the aggregate principal amount of 500 million JPY ($4.2 million) (the “Term Loan A”) and (ii) a term loan in the aggregate principal amount of one billion JPY ($8.4 million) (the “Term Loan B” and together with the Term Loan A, the “Mitsubishi Bank Loans”). The Mitsubishi Bank Loans are secured by a mortgage on certain real property and buildings owned by our Japanese subsidiary. Interest on the Mitsubishi Bank Loans accrues and is paid monthly based upon the annual rate of the monthly Tokyo Interbank Offer Rate (TIBOR) plus 1.40%. The Term Loan A requires interest only payments until the maturity date of February 23, 2018, with a lump sum payment of the aggregate principal amount on the maturity date. The Term Loan B requires equal monthly payments of principal equal to 8,333,000 JPY until the maturity date of February 25, 2025, with a lump sum payment of the balance of 8,373,000 JPY on the maturity date. Interest on the Term Loan B is accrued based upon monthly TIBOR plus 1.40% and is secured by real estate collateral. In conjunction with the execution of the Bank Loans, the Company paid a loan structuring fee, including consumption tax, of 40,500,000 JPY ($0.3 million) . The Mitsubishi Bank Loans contain customary representations and warranties and customary affirmative and negative covenants applicable to the Company’s Japanese subsidiary, including, among other things, restrictions on cessation in business, management, mergers or acquisitions. The Mitsubishi Bank Loans contain financial covenants relating to minimum net assets, maximum ordinary loss and a dividends covenant. Outstanding principal balance under the Mitsubishi Bank Loans and unamortized debt issuance costs were approximately 1.3 billion JPY (approximately $11.6 million) and 30.9 million JPY (approximately $0.3 million), respectively, as of March 31, 2017. The Company was in compliance with the related covenants. In March 2017, the Company entered into a loan agreement and related agreements with the Mitsubishi Bank for a term loan of 690 million JPY (approximately $6.2 million) (the “2017 Mitsubishi Bank Loan”) to acquire manufacturing equipment for its Japanese subsidiary. This loan is secured by the manufacturing equipment acquired from the loan proceeds. Interest on the 2017 Mitsubishi Bank Loan is based on the annual rate of the monthly TIBOR rate plus 1.00%. The 2017 Mitsubishi Bank Loan matures on March 29, 2024 and requires monthly interest and principal payments over 72 months commencing in April 2018. The loan contains customary covenants relating to minimum net assets, maximum ordinary loss and a dividends covenant. The loan is available from March 31, 2017 to March 30, 2018 and 1.0 million JPY (approximately $9,000) under this loan was drawn on the closing date of March 31, 2017. At March 31, 2017, maturities of total long-term debt were as follows (in thousands): 2017 (remaining nine months) $ 671 2018 5,370 2019 896 2020 896 2021 896 Thereafter 2,838 $ 11,567 |
Japan pension plans
Japan pension plans | 3 Months Ended |
Mar. 31, 2017 | |
Japan pension plans | |
Japan pension plans | Note 9. Japan pension plan The pension liability related to the Company’s Retirement Allowance Plan (“RAP”) in Japan at March 31, 2017 and December 31, 2016 was $5.0 million and $4.8 million, respectively, of which $0.4 million and $0.4 million, respectively, was recorded in accrued and other current liabilities and the remainder in other noncurrent liabilities on the Company’s condensed consolidated balance sheet. Net periodic pension cost associated with this plan was immaterial in the three months ended March 31, 2017 and 2016. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and contingencies disclosure | |
Commitments and contingencies | Note 10. Commitments and contingencies Litigation From time to time, the Company is subject to various claims and legal proceedings, either asserted or unasserted, that arise in the ordinary course of business. The Company accrues for legal contingencies if the Company can estimate the potential liability and if the Company believes it is probable that the case will be ruled against it. If a legal claim for which the Company did not accrue is resolved against it, the Company would record the expense in the period in which the ruling was made. The Company believes that the likelihood of an ultimate amount of liability, if any, for any pending claims of any type (alone or combined) that will materially affect the Company’s financial position, results of operations or cash flows is remote. The ultimate outcome of any litigation is uncertain, however, and unfavorable outcomes could have a material negative impact on the Company’s financial condition and operating results. Regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, negative publicity, diversion of management resources and other factors. On January 5, 2010, Finisar Corporation, or Finisar, filed a complaint in the U.S. District Court for the Northern District of California, or the Court, against Source Photonics, Inc., MRV Communications, Inc., Oplink Communications, Inc. and the Company, or collectively, the co-defendants. In the complaint Finisar alleged infringement of certain of its U.S. patents. In 2010 the Company filed an answer to the complaint and counterclaims, asserting two claims of patent infringement and additional claims. The Court dismissed without prejudice all co-defendants (including the Company) except Source Photonics, Inc., on grounds that such claims should have been asserted in four separate lawsuits, one against each defendant. This dismissal does not prevent Finisar from bringing a new similar lawsuit against the Company. In 2011 the Company and Finisar agreed to suspend their respective claims and in 2012 the Company and Finisar further agreed to toll their respective claims. While there has been no action on this matter since 2012, the Company is currently unable to predict the outcome of this dispute and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. On January 2, 2013, the Company was served with a lawsuit, filed in Belgium by a distributor called Laser 2000 Beneluo SA (“Laser 2000”) claiming unpaid commissions. The distributor agreement was formally terminated as of January 3, 2012. The Company paid $492,000 to Laser 2000 as partial settlement of claims and to avoid penalties from the Belgian Court and submitted a legal brief to court on September 16, 2013. Laser 2000 filed a response on December 16, 2013 and the Company filed the final rebuttal brief on January 30, 2014. On March 23, 2015, the Belgian Court issued a ruling awarding Laser 2000 approximately one million euros in damages (approximately $1,100,000 at then-current exchange rates). The Company did not believe it would ultimately be liable for the full amount of damage and accrued $0.3 million in March 2015 for estimated probable net litigation expense relating to this matter. The Company appealed this verdict and, in April 2017, settled this case and paid approximately $250,000. On December 27, 2016 the Company was served with a lawsuit filed by Lestina International Ltd. (“Lestina”), in Santa Clara County, CA. The lawsuit is regarding a dispute of approximately $3 million related to purchase orders for the Company’s Low Speed Transceiver Products that was soon thereafter sold by the Company to APAT OE in January 2017. The purchase orders in question were included in the asset sale and were assumed liabilities by the purchaser of the business. A motion to dismiss was filed by the Company in February 2017, with a court date on April 25, 2017. The arguments were heard in court and the judge took the matter under advisement. There has been no ruling to date. The Company is unable to predict with certainty the outcome of this matter, but is seeking to resolve the matter by the end of the second quarter of 2017 either through a court dismissal of the action or a resolution with the plaintiff and/or the purchaser of the Low Speed Transceiver Products’ assets. Because the purchase orders in question were an assumed liability of the Low Speed Transceiver Products’ assets that was transferred to the purchaser, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows. Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. As of March 31, 2017, the Company did not have any material indemnification claims that were probable or reasonably possible. Leases The Company leases various facilities under non-cancelable operating leases expiring through 2027. As of March 31, 2017, future minimum payments under these operating leases totaled approximately $26.9 million and future minimum sublease receipts was approximately $1.0 million. Rent expense was $1.0 million in the three months ended March 31, 2017 and $0.6 million in the three months ended March 31, 2016. In September 2016, the Company entered into an office lease for approximately 64,000 square feet of office and laboratory space located adjacent to the Company’s current headquarters in San Jose (the “Lease”). The term of the Lease commenced on January 1, 2017. Upon commencement, the Lease has an initial term of one hundred and twenty-nine (129) months, ending on September 30, 2027 (the “Initial Term”), with a monthly rental rate of $144,000, escalating annually to a maximum monthly rental rate of approximately $194,000 in the last year of the Initial Term. The Landlord has agreed to provide the office and laboratory space to the Company free of charge for the first nine months of the Initial Term through September 30, 2017. Upon termination of the Lease, the Company anticipates a restoration cost of approximately $3.1 million. Penalty Payment Derivative In connection with a private placement transaction with Joint Stock Company “Rusnano” (formerly Open Joint Stock Company “RUSNANO”), or Rusnano, or in 2012, the Company agreed to certain performance obligations including establishing a wholly-owned subsidiary in Russia and making a $30.0 million investment commitment (the “Investment Commitment’) towards the Company’s Russian operations, which could be partially satisfied by cash and/or non-cash investment inside or outside of Russia and/or by way of non-cash asset transfers. The Rights Agreement as amended in 2015 (the “Amended Rights Agreement”) limits the maximum amount of penalties and/or exit fee (the “Rusnano Payment”) to be paid by the Company to $5.0 million in the aggregate and allows such payment to be reduced when certain milestones are met over time. The Amended Rights Agreement also provides for an updated investment plan for the Company’s Russian subsidiaries that includes non-cash transfer of licensing rights to intellectual property, non-cash transfers of existing equipment and commitments to complete the remaining investment milestones through 2019. The Company fulfilled its investment commitment required by 2016 and had contributed over $18.8 million in cash and assets to its subsidiaries in Russia as of December 31, 2016. Therefore, the Company would not be held liable for the Rusnano Payment as of each of December 31, 2016 and March 31, 2017. In the event certain of the Investment Commitments are not achieved by 2019, the Company has the ability to cease the operations of its Russian subsidiaries by paying exit fees of $2.0 million at that time. In August 2016, the Company entered into a letter of agreement with Rusnano to agree to transfer a 10G SFP+ transceiver product line and incur expected costs of approximately $0.1 million, by July 30, 2017, which will not be counted toward the Company’s overall Investment Commitment. Since the asset sale of the Company’s Low Speed Transceiver Products was completed in January 2017, the Company intends to undertake such expense by spending such amount in another manner to be discussed and agreed between the parties. Rusnano has non-transferable veto rights over the Company’s Russian subsidiaries’ annual budget during the investment period and must approve non-cash asset transfers to be made in satisfaction of the Investment Commitment. The Company accounted for the Rusnano Payment as an embedded derivative instrument. The fair value of the Penalty Payment derivative has been estimated at the date of the original common stock sale (April 27, 2012) and at each subsequent balance sheet date using a probability-weighted discounted future cash flow approach using unobservable inputs, which are classified as Level 3 within the fair value hierarchy. The primary inputs for this approach include the probability of achieving the Investment Commitment and a discount rate that approximates the Company’s incremental borrowing rate. After the initial measurement, changes in the fair value of this derivative were recorded in other income (expense), net. The estimated fair value of this derivative was $0.4 million as of each of March 31, 2017 and December 31, 2016, and reported within accrued and other current liabilities on the Company’s condensed consolidated balance sheets (see Note 4). |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders’ equity disclosure | |
Stockholders’ Equity | Note 11. Stockholders’ equity Common Stock As of March 31, 2017, the Company had reserved 8,509,302 common stock shares for issuance under its stock option plans and 627,848 common stock shares for issuance under its employee stock purchase plan. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of related taxes, were as follows (in thousands): Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Available-For-Sale Securities Defined Benefit Pension Plan Adjustment Total Accumulated Other Comprehensive Loss Balance at December 31, 2016 $ (8,235) $ (19) $ (147) $ (8,401) Other comprehensive income, net of taxes of zero and reclassifications 2,468 3 — 2,471 Balance at March 31, 2017 $ (5,767) $ (16) $ (147) $ (5,930) No material amounts were reclassified out of accumulated other comprehensive income during the three months ended March 31, 2017 and 2016 for realized gains or losses on available-for-sale securities. Accumulated Deficit Approximately $8.7 million of the Company’s retained earnings within its total accumulated deficit at March 31, 2017 and December 31, 2016 was subject to restriction due to the fact that the Company’s subsidiaries in China are required to set aside at least 10% of their respective accumulated profits each year end to fund statutory common reserves as well as allocate a discretional portion of their after-tax profits to their staff welfare and bonus fund. |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Mar. 31, 2017 | |
Stock-based compensation | |
Stock-based compensation | Note 12. Stock-based compensation The following table summarizes the stock-based compensation expense recognized in the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 147 $ 589 Research and development 662 971 Sales and marketing 464 887 General and administrative 599 992 $ 1,872 $ 3,439 The vesting of stock options covering approximately 1.1 million shares of the Company’s common stock and stock appreciation units (“SAUs”) of approximately 0.2 million shares with a market-based vesting condition were accelerated in September 2016 as the market-based condition of these stock options and SAUs was satisfied when the average closing price of the Company’s common stock over a period of 20 consecutive trading days equal to or exceeded $15.00 per share and the recipients remained in the continuous service with the Company. Outstanding SAUs are re-measured each reporting period at fair value until settlement. Determining Fair Value The Company estimated the fair value of certain stock-based awards using a Black-Scholes-Merton valuation model or a binomial lattice model with the following assumptions: Three Months Ended March 31, Stock options 2017 2016 Weighted-average expected term (years) — 4.96 Weighted-average volatility — % 64% Risk-free interest rate — % 1.76% Expected dividends — % — % Stock appreciation units Weighted-average expected term (years) 2.45 3.03 Weighted-average volatility 71% 61% Risk-free interest rate 0.51%-1.47% 0.65 %- 1.47% Expected dividends — % — % ESPP Weighted-average expected term (years) 0.70 0.70 Weighted-average volatility 54% 70% Risk-free interest rate 0.45%-0.59% 0.08%-0.33% Expected dividends — % — % Stock Options and Restricted Stock Units (RSUs) The following table summarizes the Company’s stock option and RSU activity during the three months ended March 31, 2017 : Stock Options Restricted Stock Units Weighted Weighted Average Average Number of Exercise Number of Grant Date Shares Price Units Fair Value Balance at December 31, 2016 4,301,340 $ 5.18 2,089,473 $ 10.15 Granted — — 101,082 9.96 Exercised/Converted (133,287) 3.68 (8,332) 8.50 Cancelled/Forfeited (6,666) 11.61 (13,675) 10.93 Balance at March 31, 2017 4,161,387 $ 5.22 2,168,548 $ 10.14 Stock appreciation units SAUs are liability classified share-based awards. The Company did not grant any SAUs during the three months ended March 31, 2017 or 2016. As of March 31, 2017 and December 31, 2016, there were 278,007 and 286,768 SAUs outstanding, respectively, and related SAU liabilities were $1.6 million and $2.0 million, respectively. Employee Stock Purchase Plan (“ESPP”) As of March 31, 2017, there was $0.5 million of unrecognized stock-based compensation expense for employee stock purchase rights that will be recognized over the remaining offering period through November 2017. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income taxes | |
Income taxes | Note 13. Income taxes The income tax (provision) benefit for income taxes in the periods presented is based upon the income (loss) before income taxes: Three Months Ended March 31, (in thousands) 2017 2016 Income tax (provision) benefit $ 167 $ (1,041) The Company’s income tax (provision) benefit in the three months ended March 31, 2017 and 2016 was primarily related to income taxes of the Company’s non-U.S. operations. The Company conducts its business globally and its operating income is subject to varying rates of tax in the U.S., China and Japan. Consequently, the Company’s effective tax rate is dependent upon the geographic distribution of its earnings or losses and the tax laws and regulations in each geographical region. Historically, the Company has experienced net losses in the U.S. and in the short term, expects this trend to continue. One of the Company’s subsidiaries in China historically qualified for a preferential 15% tax rate available for high technology enterprises as opposed to the statutory 25% tax rate. In June 2016, the State Administration of Taxation issued a notice to adjust the requirements for high technology enterprise status. As a result, the Company’s China subsidiary did not meet the requirements for the tax year 2016. Therefore, the Company computed its China subsidiary’s tax provision (benefit) for 2016 and the three months ended March 31, 2017 based on the 25% regular corporate income tax rate. Due to historic losses in the U.S., the Company has a full valuation allowance on its U.S. federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. As of March 31, 2017, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2016. |
Subsequent event
Subsequent event | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events | |
Subsequent event | Note 14. Subsequent events Subsequent events included the following: Comerica Credit Facility In April 2017, the Company repaid the outstanding balance under its Comerica Bank Credit Facility, which was $23.8 million as of March 31, 2017. The Company also amended its Comerica Bank Credit Facility in April 2017 to extend the maturity date from April 30, 2017 to July 31, 2017 and amend certain covenants. Restructuring In May 2017, the Company initiated further restructuring actions to implement a series of cost saving measures in light of both the sale of its Low Speed Transceiver Products and the current lower market outlook from China. These measures are expected to include reorganizing the Company’s product lines, reducing real estate footprint and reducing workforce. The Company expects to incur pre-tax restructuring charges of approximately $0.7 million to $1.0 million in the second quarter of 2017. |
Basis of presentation and sig22
Basis of presentation and significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Basis of presentation and significant accounting policies | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The condensed consolidated financial statements of NeoPhotonics Corporation (“NeoPhotonics” or the “Company”) as of March 31, 2017 and for the three months ended March 31, 2017 and 2016, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes normally provided in the Company’s annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the interim periods. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results expected for the entire fiscal year. All intercompany accounts and transactions have been eliminated. Certain Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, any of the following areas could have a negative effect on the Company in terms of its future financial position, results of operations or cash flows: the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of a small number of its larger customers; ability to obtain additional financing; inability to meet certain debt covenants; fundamental changes in the technology underlying the Company’s products; the hiring, training and retention of key employees; successful and timely completion of product design efforts; and new product design introductions by competitors. |
Use of estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Significant estimates made by management include: the useful lives of property, plant and equipment and intangible assets as well as future cash flows to be generated by those assets; fair values of identifiable assets acquired and liabilities assumed in business combinations; allowances for doubtful accounts; valuation allowances for deferred tax assets; valuation of excess and obsolete inventories; warranty reserves; litigation accrual and recognition of stock-based compensation, among others. Actual results could differ from these estimates. |
Concentration | Concentration In the three months ended March 31, 2017, Huawei Technologies Co. Ltd. and their affiliate HiSilicon Technologies (together with Huawei Technologies Co. Ltd., “Huawei”) and Ciena Corporation (“Ciena”) accounted for approximately 41% and 14% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 90% of the Company’s total revenue. In the three months ended March 31, 2016, Huawei and Ciena accounted for approximately 54% and 16% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 92% of the Company’s total revenue. As of March 31, 2017, one customer accounted for approximately 48% of the Company’s accounts receivable. As of December 31, 2016, three customers accounted for approximately 42%, 12% and 12%, respectively, of the Company’s accounts receivable. |
Stock-based compensation | Effective January 1, 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies certain aspects of the accounting for shared-based payment transactions, including income taxes, classification of awards and classification on the statement of cash flows. It eliminates that requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. Upon adoption, the Company’s previously unrecognized excess tax benefits of $8.6 million had no impact on its accumulated deficit balance as the related U.S. deferred tax assets were fully offset by a valuation allowance. The Company elected to apply the change in presentation on the statements of cash flows prospectively and elected to continue to account for estimated forfeitures over the vest period of the shared-based awards. |
Inventories | Effective January 1, 2017, the Company also adopted ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires entities to measure most inventory “at the lower of cost and net realizable value” but does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. The impact on the Company’s consolidated financial statements upon the adoption of this standard was immaterial. |
Recent accounting pronouncements | Recent accounting pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This standard amends the goodwill impairment test to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, up to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective prospectively for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). This standard provides a framework in determining when a set of assets and activities is a business. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017 on a prospective basis. The impact on the Company’s financial statements upon the adoption of this standard is expected to be immaterial. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASC 2016-18”). This standard provides guidance on the classification and presentation of restricted cash in the statement of cash flows and must be applied retrospectively. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). This standard provides guidance on the tax accounting for the transferring and receiving entities upon transfer of an asset. ASU 2016-16 is effective for the Company’s interim and annual periods beginning after December 15, 2017 and should be applied on a modified retrospective basis. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This standard provides guidance on the classification of certain cash receipts and payments in the statement of cash flows . It is effective, retrospectively, for the Company’s annual and interim reporting periods beginning after December 15, 2017 or prospectively from the earliest data practicable if retrospective application is impracticable. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 amends existing guidance on the impairment of financial assets and adds an impairment model that is based on expected losses rather than incurred losses and requires an entity to recognize as an allowance its estimate of expected credit losses for its financial assets. An entity will apply this guidance through a cumulative-effect adjustment to retained earnings upon adoption (a modified-retrospective approach) while a prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. It is effective for the Company’s annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 introduces a lessee model that requires recognition of assets and liabilities arising from qualified leases on the consolidated balance sheets and consolidated statements of operations and to disclose qualitative and quantitative information about lease transactions. It is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition is required with certain optional practical expedients allowed. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments and is effective for the Company’s annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In May 2014, the FASB issued ASU N o. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard, along with the amendments issued in 2016 and 2015, provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. This standard, as amended, is effective for annual and interim periods beginning after December 15, 2017 and permits entities to early adopt for annual and interim reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company expects to adopt this standard, as amended, effective January 1, 2018 and is in the process of evaluating the impact of adoption on its consolidated financial statements. |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Net income (loss) per share | |
Computation of Basic and Diluted Net Income per Share | The following table sets forth the computation of the basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Numerator: Net income (loss) $ (11,522) $ 2,310 Denominator: Weighted average shares used to compute per share amount: Basic 42,615 41,121 Dilutive effect of equity awards - 2,527 Diluted 42,615 43,648 Basic net income (loss) per share $ (0.27) $ 0.06 Diluted net income (loss) per share $ (0.27) $ 0.05 |
Potentially Dilutive Securities Excluded from Computation of Diluted Net Income per Share Attributable to Common Stockholders | The Company has excluded the impact of the following employee stock options, restricted stock units and shares expected to be issued under its employee stock purchase plan from the computation of diluted net income (loss) per share, as their effect would have been antidilutive (in thousands): Three Months Ended March 31, 2017 2016 Employee stock options 4,161 498 Restricted stock units 2,168 1 Employee stock purchase plan 378 148 6,707 647 |
Cash, cash equivalents, short24
Cash, cash equivalents, short-term investments, and restricted cash (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash, cash equivalents, short-term investments, and restricted cash | |
Summary of Cash, Cash Equivalents and Short-Term investments and Restricted Cash and Investments | The following table summarizes the Company’s cash, cash equivalents, short-term investments and restricted cash (in thousands): March 31, December 31, 2017 2016 Cash and cash equivalents: Cash $ 57,890 $ 58,691 Cash equivalents 23,809 23,809 Cash and cash equivalents $ 81,699 $ 82,500 Short-term investments $ 6,047 $ 19,015 Restricted cash $ 3,714 $ 4,085 |
Summary of Unrealized Gains and Losses Related to Cash Equivalents and Investments in Marketable Securities | As of March 31, 2017 and December 31, 2016, restricted cash included approximately $2.0 million pursuant to an asset purchase agreement with Optoelectronics Components C o., Ltd. (“APAT OE”) relating to the asset sale closed in January 2017, in addition to the compensating balances relating to the Company’s notes payable issued under its line of credit facilities in China (see Note 8). The following table summarizes the Company’s unrealized gains and losses related to its cash equivalents and short-term investments in marketable securities designated as available-for-sale (in thousands): As of March 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market accounts $ 23,809 $ — $ — $ 23,809 $ 23,809 $ — $ — $ 23,809 Money market funds 2,306 — — 2,306 199 — — 199 Corporate debt securities — — — — 9,438 4 (3) 9,439 Government agency securities 2,253 — (10) 2,243 3,767 — (10) 3,757 U.S. government securities 1,504 — (6) 1,498 5,008 — (10) 4,998 Sovereign government bonds — — — — 622 — — 622 Total $ 29,872 $ — $ (16) $ 29,856 $ 42,843 $ 4 $ (23) $ 42,824 Reported as: Cash equivalents $ 23,809 $ — $ — $ 23,809 $ 23,809 $ — $ — $ 23,809 Short-term investments 6,063 — (16) 6,047 19,034 4 (23) 19,015 Total $ 29,872 $ — $ (16) $ 29,856 $ 42,843 $ 4 $ (23) $ 42,824 |
Maturities of Marketable Securities | Maturities of marketable securities were as follows (in thousands): March 31, December 31, 2017 2016 Less than 1 year $ 26,115 $ 36,054 Due in 1 to 2 years 3,741 6,468 Due in 3 to 5 years — 302 Total $ 29,856 $ 42,824 |
Fair value disclosures (Tables)
Fair value disclosures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair value disclosures | |
Fair Value of Financial Assets | The following table presents the Company's assets that are measured at fair value on a recurring basis (in thousands): As of March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ 2,306 $ — $ — $ 2,306 $ 199 $ — $ — $ 199 U.S. government securities 1,498 — — 1,498 4,998 — — 4,998 Money market accounts — 23,809 — 23,809 — 23,809 — 23,809 Corporate debt securities — — — — — 9,439 — 9,439 Government agency securities — 2,243 — 2,243 — 3,757 — 3,757 Sovereign government bonds — — — — — 622 — 622 Total $ 3,804 $ 26,052 $ — $ 29,856 $ 5,197 $ 37,627 $ — $ 42,824 Foreign currency forward contracts $ — $ * $ — $ * $ — $ * $ — $ * Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 814 $ — $ — $ 814 $ 622 $ — $ — $ 622 |
Fair Value of Financial Liabilities | The following table presents the Company's liabilities that are measured at fair value on a recurring basis (in thousands): As of March 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Rusnano payment derivative $ — $ — $ 389 $ 389 $ — $ — $ 389 $ 389 Foreign currency forward contracts — 4 — 4 — 41 — 41 $ — $ 4 $ 389 $ 393 $ — $ 41 $ 389 $ 430 |
Balance sheet components (Table
Balance sheet components (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance sheet components | |
Accounts Receivable, Net | Accounts receivable, net consists of the following (in thousands): March 31, 2017 December 31, 2016 Accounts receivable $ 67,734 $ 78,143 Trade notes receivable 3,273 2,892 Allowance for doubtful accounts (130) (425) $ 70,877 $ 80,610 |
Inventories, net | Inventories, net consist of the following (in thousands): March 31, 2017 December 31, 2016 Raw materials $ 31,759 $ 23,348 Work in process 12,495 10,996 Finished goods (1) 24,905 13,893 $ 69,159 $ 48,237 (1) Finished goods inventory at customer vendor managed inventory locations was $8.0 million and $8.3 million as of March 31, 2017 and December 31, 2016, respectively. |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2017 December 31, 2016 Prepaid taxes and taxes receivable $ 8,641 $ 16,102 Deposits and other prepaid expenses 3,665 3,571 Transition service agreement related (Note 5) 11,785 — Other receivable 2,706 2,723 $ 26,797 $ 22,396 |
Purchased Intangible Assets | Purchased intangible assets consist of the following (in thousands): March 31, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Technology and patents $ 37,007 $ (33,660) $ 3,347 $ 36,918 $ (33,316) $ 3,602 Customer relationships 15,121 (14,175) 946 15,039 (13,990) 1,049 Leasehold interest 1,235 (324) 911 1,226 (315) 911 $ 53,363 $ (48,159) $ 5,204 $ 53,183 $ (47,621) $ 5,562 |
Amortization Expense of Purchased Intangible Assets | The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 262 $ 841 Operating expenses 118 453 Total $ 380 $ 1,294 |
Estimated Future Amortization Expense of Purchased Intangible Assets | The estimated future amortization expense of purchased intangible assets as of March 31, 2017, is as follows (in thousands): 2017 $ 960 2018 1,209 2019 806 2020 688 2021 688 Thereafter 853 $ 5,204 |
Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): March 31, 2017 December 31, 2016 Employee-related $ 13,564 $ 18,654 Income and other taxes payable 1,304 3,956 Deferred revenue, current 1,065 956 Accrued warranty 582 678 Rusnano payment derivative 389 389 Asset sale related contingent liabilities (Note 5) 6,700 — Transition service agreement related payables (Note 5) 7,742 — Other accrued expenses 6,293 5,992 $ 37,639 $ 30,625 |
Warranty Accrual | The table below summarizes the movement in the warranty accrual, which is included in accrued and other current liabilities (in thousands): Three Months Ended March 31, 2017 2016 Beginning balance $ 678 $ 1,175 Warranty accruals (62) 102 Settlements (34) (134) Ending balance $ 582 $ 1,143 |
Other Noncurrent Liabilities | Other noncurrent liabilities consist of the following (in thousands): March 31, 2017 December 31, 2016 Pension and other employee-related $ 5,444 $ 5,045 Deferred rent 1,952 1,509 Deferred revenue 2,055 1,184 Deferred income tax liabilities 52 46 Asset retirement obligations and other 3,333 1,155 $ 12,836 $ 8,939 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt | |
Carrying Amount and Weighted Average Interest Rate of the Company's Debt | The table below summarizes the carrying amount and weighted average interest rate of the Company’s debt (in thousands, except percentages): March 31, 2017 December 31, 2016 Carrying Interest Carrying Interest Amount Rate Amount Rate Notes payable $ 5,684 — $ 6,390 — Short-term borrowing-Comerica Bank 23,800 3.53 % 23,800 3.37 % Total notes payable and short-term borrowing $ 29,484 $ 30,190 Long-term debt, current and non-current: Mitsubishi Bank loans $ 11,567 1.43 % $ 11,253 1.43 % Unaccreted discount and issuance costs within current portion of long-term debt (106) (108) Unaccreted discount and issuance costs within long-term debt, net of current portion (170) (183) Total long-term debt, net of unaccreted discount and issuance costs $ 11,291 $ 10,962 Reported as: Current portion of long-term debt $ 5,263 $ 747 Long-term debt, net of current portion 6,028 10,215 Total long-term debt, net of unaccreted discount and issuance costs $ 11,291 $ 10,962 |
Maturities of Long-term Debt | At March 31, 2017, maturities of total long-term debt were as follows (in thousands): 2017 (remaining nine months) $ 671 2018 5,370 2019 896 2020 896 2021 896 Thereafter 2,838 $ 11,567 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders’ equity disclosure | |
Schedule of Accumulated Other Comprehensive Income, Net of Related Taxes | The components of accumulated other comprehensive loss, net of related taxes, were as follows (in thousands): Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Available-For-Sale Securities Defined Benefit Pension Plan Adjustment Total Accumulated Other Comprehensive Loss Balance at December 31, 2016 $ (8,235) $ (19) $ (147) $ (8,401) Other comprehensive income, net of taxes of zero and reclassifications 2,468 3 — 2,471 Balance at March 31, 2017 $ (5,767) $ (16) $ (147) $ (5,930) |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stock-based compensation | |
Summary of Stock Based Compensation Expense | The following table summarizes the stock-based compensation expense recognized in the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 147 $ 589 Research and development 662 971 Sales and marketing 464 887 General and administrative 599 992 $ 1,872 $ 3,439 |
Estimated Fair Value of Certain Stock-Based Awards Using Black-Scholes-Merton Valuation Model | The Company estimated the fair value of certain stock-based awards using a Black-Scholes-Merton valuation model or a binomial lattice model with the following assumptions: Three Months Ended March 31, Stock options 2017 2016 Weighted-average expected term (years) — 4.96 Weighted-average volatility — % 64% Risk-free interest rate — % 1.76% Expected dividends — % — % Stock appreciation units Weighted-average expected term (years) 2.45 3.03 Weighted-average volatility 71% 61% Risk-free interest rate 0.51%-1.47% 0.65 %- 1.47% Expected dividends — % — % ESPP Weighted-average expected term (years) 0.70 0.70 Weighted-average volatility 54% 70% Risk-free interest rate 0.45%-0.59% 0.08%-0.33% Expected dividends — % — % |
Summary of Stock Option and Restricted Stock Unit Activity | The following table summarizes the Company’s stock option and RSU activity during the three months ended March 31, 2017 : Stock Options Restricted Stock Units Weighted Weighted Average Average Number of Exercise Number of Grant Date Shares Price Units Fair Value Balance at December 31, 2016 4,301,340 $ 5.18 2,089,473 $ 10.15 Granted — — 101,082 9.96 Exercised/Converted (133,287) 3.68 (8,332) 8.50 Cancelled/Forfeited (6,666) 11.61 (13,675) 10.93 Balance at March 31, 2017 4,161,387 $ 5.22 2,168,548 $ 10.14 |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income taxes | |
Income (Loss) before Income Taxes | Three Months Ended March 31, (in thousands) 2017 2016 Income tax (provision) benefit $ 167 $ (1,041) |
Basis of presentation and sig31
Basis of presentation and significant accounting policies - (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017customer | Mar. 31, 2016customer | Dec. 31, 2016customer | Jan. 01, 2017USD ($) | |
Accounting Standards Update 2016-09 | ||||
Concentration Risk [Line Items] | ||||
Previously unrecognized tax benefits | $ | $ 8,600,000 | |||
Impact of adoption of new accounting policy | $ | $ 0 | |||
Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration of credit risk | 48.00% | |||
Number of customers | customer | 1 | 3 | ||
Huawei Technologies [Member] | Revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration of credit risk | 41.00% | 54.00% | ||
Ciena Corporation [Member] | Revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration of credit risk | 14.00% | 16.00% | ||
Company Top Ten Customers [Member] | Revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration of credit risk | 90.00% | 92.00% | ||
Number of customers | customer | 10 | 10 | ||
Customer One [Member] | Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration of credit risk | 42.00% | |||
Customer Two [Member] | Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration of credit risk | 12.00% | |||
Customer Three [Member] | Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration of credit risk | 12.00% |
Net income (loss) per share - C
Net income (loss) per share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net income (loss) | $ (11,522) | $ 2,310 |
Denominator: | ||
Basic | 42,615 | 41,121 |
Dilutive effect of equity awards | 2,527 | |
Diluted | 42,615 | 43,648 |
Basic net income (loss) per share | $ (0.27) | $ 0.06 |
Diluted net income (loss) per share | $ (0.27) | $ 0.05 |
Net income (loss) per share - P
Net income (loss) per share - Potentially Dilutive Securities Excluded From Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 6,707 | 647 |
Employee Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 4,161 | 498 |
Restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 2,168 | 1 |
Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 378 | 148 |
Cash, cash equivalents, short34
Cash, cash equivalents, short-term investments and restricted cash - Short term investments and restricted cash and investments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents: | ||||
Cash | $ 57,890 | $ 58,691 | ||
Cash equivalents | 23,809 | 23,809 | ||
Cash and cash equivalents | 81,699 | 82,500 | $ 62,739 | $ 76,088 |
Short-term investments | 6,047 | 19,015 | ||
Restricted cash and investments: | ||||
Restricted cash | 3,714 | $ 4,085 | ||
Optoelectronics Components Co. Ltd. | ||||
Restricted cash and investments: | ||||
Restricted cash | $ 2,000 |
Cash, cash equivalents, short35
Cash, cash equivalents, short-term investments and restricted cash - Summary of unrealized gains and losses (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 29,872 | $ 42,843 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (16) | (23) |
Fair Value | 29,856 | 42,824 |
Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 23,809 | 23,809 |
Fair Value | 23,809 | 23,809 |
Short-Term Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 6,063 | 19,034 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (16) | (23) |
Fair Value | 6,047 | 19,015 |
Money market accounts | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 23,809 | 23,809 |
Fair Value | 23,809 | 23,809 |
Money Market Funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,306 | 199 |
Fair Value | 2,306 | 199 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 9,438 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (3) | |
Fair Value | 9,439 | |
Government-sponsored enterprise obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,253 | 3,767 |
Gross Unrealized Losses | (10) | (10) |
Fair Value | 2,243 | 3,757 |
U.S. government securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,504 | 5,008 |
Gross Unrealized Losses | (6) | (10) |
Fair Value | $ 1,498 | 4,998 |
Sovereign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 622 | |
Fair Value | $ 622 |
Cash, cash equivalents, short36
Cash, cash equivalents, short-term investments and restricted cash - Maturities of marketable securities and additional information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)item | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)item | |
Cash, cash equivalents, short-term investments, and restricted cash | |||
Less than 1 year | $ 26,115 | $ 36,054 | |
Due in 1 to 2 years | 3,741 | 6,468 | |
Due in 3 to 5 years | 302 | ||
Total | 29,856 | $ 42,824 | |
Impairment losses on its marketable securities | $ 0 | $ 0 | |
Investments in marketable securities in unrealized loss position in excess of 12 months | item | 0 | 0 |
Fair value measurements- Assets
Fair value measurements- Assets and liabilities measured at fair value on recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | $ 393 | $ 430 |
Assets, fair value | 29,856 | 42,824 |
Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 3,804 | 5,197 |
Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 4 | 41 |
Assets, fair value | 26,052 | 37,627 |
Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 389 | 389 |
Money Market Funds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 2,306 | 199 |
Money Market Funds | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 2,306 | 199 |
U.S. government securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 1,498 | 4,998 |
U.S. government securities | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 1,498 | 4,998 |
Money market accounts | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 23,809 | 23,809 |
Money market accounts | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 23,809 | 23,809 |
Sovereign government bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 622 | |
Sovereign government bonds | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 622 | |
Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 9,439 | |
Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 9,439 | |
Government-sponsored enterprise obligations | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 2,243 | 3,757 |
Government-sponsored enterprise obligations | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 2,243 | 3,757 |
Mutual Funds Held in Rabbi Trust [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 814 | 622 |
Mutual Funds Held in Rabbi Trust [Member] | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 814 | 622 |
Rusnano Payment Derivative | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 389 | 389 |
Rusnano Payment Derivative | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 389 | 389 |
Foreign currency forward contracts | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 4 | 41 |
Foreign currency forward contracts | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | $ 4 | $ 41 |
Fair value measurements - Hedgi
Fair value measurements - Hedging Program (Details) - Foreign exchange contracts $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Average maturities of monthly foreign exchange contracts | 1 month |
China, Yuan Renminbi | |
Notional value of derivatives related to economic hedges | $ 26.4 |
Fair value measurements - Liabi
Fair value measurements - Liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent liability in connection with contingent indemnification commitments | $ (6,700) | |
Other current liabilities | Indemnification agreement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent liability in connection with contingent indemnification commitments | 6,700 | |
Fair Value, Measurements, Recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 393 | $ 430 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 4 | 41 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 389 | 389 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Other current liabilities | Indemnification agreement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent liability in connection with contingent indemnification commitments | 6,700 | |
Rusnano Payment Derivative | Fair Value, Measurements, Recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 389 | 389 |
Rusnano Payment Derivative | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 389 | 389 |
Foreign currency forward contracts | Fair Value, Measurements, Recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | 4 | 41 |
Foreign currency forward contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Liabilities Fair Value disclosure | $ 4 | $ 41 |
Asset sale (Details)
Asset sale (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 13,953 | ||
Reclassification from assets held-for-sale | $ 3,400 | ||
Contingent liability | (6,700) | ||
Gain within operating income | 2,000 | ||
Inventories | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Assets held for sale, other | 13,100 | ||
Property, plant and equipment | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Assets held for sale, other | $ 800 | ||
Optoelectronics Components Co. Ltd. | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Proceeds from post-closing transaction services fees under transition services agreement | $ 1,400 | ||
Optoelectronics Components Co. Ltd. | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Consideration received pursuant to asset purchase agreement | 25,000 | ||
Optoelectronics Components Co. Ltd. | Adjusted consideration | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Disposal group consideration adjustment | 21,600 | ||
Optoelectronics Components Co. Ltd. | Other adjustments to consideration for potential indemnification claims | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Disposal group consideration adjustment | 10,000 | ||
Optoelectronics Components Co. Ltd. | Assets held for sale | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Assets sold | 12,800 | ||
Optoelectronics Components Co. Ltd. | Inventories | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Consideration received pursuant to asset purchase agreement | 12,100 | ||
Optoelectronics Components Co. Ltd. | Inventories | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Assets sold | 12,100 | ||
Optoelectronics Components Co. Ltd. | Property, plant and equipment | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Assets sold | $ 700 | ||
Other current liabilities | Indemnification agreement | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Contingent liability | 6,700 | ||
Property, plant and equipment | Indemnification agreement | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Contingent liability | $ 200 |
Balance sheet components - Acco
Balance sheet components - Accounts receivable, net (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance sheet components | ||
Accounts receivable | $ 67,734 | $ 78,143 |
Trade notes receivable | 3,273 | 2,892 |
Allowance for doubtful accounts | (130) | (425) |
Accounts receivable, Net ,Total | $ 70,877 | $ 80,610 |
Balance sheet components - Inve
Balance sheet components - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance sheet components | ||
Raw materials | $ 31,759 | $ 23,348 |
Work in process | 12,495 | 10,996 |
Finished goods | 24,905 | 13,893 |
Inventories | 69,159 | 48,237 |
Finished goods, at vendor managed inventory locations | $ 8,000 | $ 8,300 |
Balance sheet components - Prep
Balance sheet components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance sheet components | ||
Prepaid taxes and taxes receivable | $ 8,641 | $ 16,102 |
Deposits and other prepaid expenses | 3,665 | 3,571 |
Transition service agreement related (Note 5) | 11,785 | |
Other receivable | 2,706 | 2,723 |
Prepaid expenses and other current assets | $ 26,797 | $ 22,396 |
Balance sheet components - Purc
Balance sheet components - Purchased intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 53,363 | $ 53,183 |
Accumulated Amortization | (48,159) | (47,621) |
Net Assets | 5,204 | 5,562 |
Technology and Patents [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 37,007 | 36,918 |
Accumulated Amortization | (33,660) | (33,316) |
Net Assets | 3,347 | 3,602 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 15,121 | 15,039 |
Accumulated Amortization | (14,175) | (13,990) |
Net Assets | 946 | 1,049 |
Leasehold Interest [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 1,235 | 1,226 |
Accumulated Amortization | (324) | (315) |
Net Assets | $ 911 | $ 911 |
Balance sheet components - Amor
Balance sheet components - Amortization expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Balance sheet components | ||
Cost of goods sold | $ 262 | $ 841 |
Operating expenses | 118 | 453 |
Total | $ 380 | $ 1,294 |
Balance sheet components - Esti
Balance sheet components - Estimated future amortization expense of purchased intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance sheet components | ||
2017 (remaining nine months) | $ 960 | |
2,018 | 1,209 | |
2,019 | 806 | |
2,020 | 688 | |
2,021 | 688 | |
Thereafter | 853 | |
Net Assets | $ 5,204 | $ 5,562 |
Balance sheet components - Accr
Balance sheet components - Accrued and other current liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Balance sheet components | ||||
Employee-related | $ 13,564 | $ 18,654 | ||
Income and other taxes payable | 1,304 | 3,956 | ||
Deferred revenue, current | 1,065 | 956 | ||
Accrued warranty | 582 | 678 | $ 1,143 | $ 1,175 |
Rusnano payment derivative | 389 | 389 | ||
Asset sale related contingent liabilities (Note 5) | 6,700 | |||
Transition service agreement related payables (Note 5) | 7,742 | |||
Other accrued expenses | 6,293 | 5,992 | ||
Accrued and other current liabilities | $ 37,639 | $ 30,625 |
Balance sheet components - Warr
Balance sheet components - Warranty accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Balance sheet components | ||
Beginning balance | $ 678 | $ 1,175 |
Warranty accruals | (62) | 102 |
Settlements | (34) | (134) |
Ending balance | $ 582 | $ 1,143 |
Balance sheet components - Othe
Balance sheet components - Other noncurrent liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance sheet components | ||
Pension and other employee-related | $ 5,444 | $ 5,045 |
Deferred rent | 1,952 | 1,509 |
Deferred revenue | 2,055 | 1,184 |
Deferred income tax liabilities | 52 | 46 |
Asset retirement obligations and other | 3,333 | 1,155 |
Other noncurrent liabilities | $ 12,836 | $ 8,939 |
Restructuring (Details)
Restructuring (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Restructuring | |||
Restructuring costs incurred | $ 300,000 | $ 0 | |
Restructuring liabilities | $ 0 |
Debt - Components of Debt Oblig
Debt - Components of Debt Obligations and Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Notes payable | $ 5,684 | $ 6,390 |
Total notes payable and short-term borrowing | 29,484 | 30,190 |
Total long-term debt, current and non-current | 11,567 | |
Total long-term debt, net of unaccreted discount and issuance costs | 11,291 | 10,962 |
Current portion of long-term debt | 5,263 | 747 |
Long-term debt, net of current portion | 6,028 | 10,215 |
Comerica Bank Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Bank borrowings-Comerica Bank | $ 23,800 | $ 23,800 |
Short-term Debt Weighted Average Interest Rate | 3.53% | 3.37% |
Mitsubishi Bank [Member] | ||
Debt Instrument [Line Items] | ||
Bank borrowings-Mitsubishi Bank | $ 11,567 | $ 11,253 |
Long-term Debt Weighted Average Interest Rate | 1.43% | 1.43% |
Long Term Debt Current [Member] | ||
Debt Instrument [Line Items] | ||
Unaccreted discount within long-term debt, net of current portion | $ (106) | $ (108) |
Long Term Debt Non Current [Member] | ||
Debt Instrument [Line Items] | ||
Unaccreted discount within long-term debt, net of current portion | $ (170) | $ (183) |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Thousands, ¥ in Millions | Feb. 25, 2015JPY (¥) | Feb. 25, 2015USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2017USD ($)item | Mar. 31, 2016USD ($) | Mar. 31, 2017JPY (¥) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 25, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||
Repayment of notes payable | $ 3,722 | $ 5,047 | |||||||
Mitsubishi Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility | ¥ 1,300,000,000 | $ 11,600 | |||||||
Unamortized debt issuance costs | ¥ 30,900,000 | 300 | |||||||
Libor Plus Rate [Member] | Comerica | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility | $ 23,800 | $ 23,800 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||
Line of credit facility, interest rate | 3.53% | 3.53% | 3.53% | 3.37% | |||||
Credit Facility Base Rate [Member] | Comerica | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||
Federal Funds Effective Rate [Member] | Comerica | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||
Daily Adjusting LIBOR Rate [member] | Comerica | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||
Second Credit Facility Expires September 2017 | Subsidiary in China | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | ||||||||
Term Loan B [Member] | Mitsubishi Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, aggregate principal amount | ¥ 1,000,000,000 | $ 8,400 | |||||||
Debt, periodic principal payments | ¥ | 8,333,000 | ||||||||
Debt, lump sum payment on the maturity date | ¥ | 8,373,000 | ||||||||
Loan structuring fee including consumption tax | ¥ 40,500,000 | $ 300 | |||||||
Term Loan B [Member] | Tokyo Interbank Offer Rate [Member] | Mitsubishi Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | 1.40% | |||||||
Term Loan A [Member] | Mitsubishi Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, aggregate principal amount | ¥ 500,000,000 | $ 4,200 | |||||||
Term Loan A [Member] | Tokyo Interbank Offer Rate [Member] | Mitsubishi Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | 1.40% | |||||||
Capital Expenditures Credit Facility Expires April 30, 2017 | Comerica | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 | ||||||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 62,000 | ||||||||
2017 Mitsubishi Bank Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility | ¥ 1,000,000 | 9 | |||||||
Debt Instrument, Term | 72 months | ||||||||
Debt, aggregate principal amount | ¥ 690,000,000 | 6,200 | |||||||
Debt Instrument, Maturity Date Range, Start | Apr. 1, 2018 | ||||||||
2017 Mitsubishi Bank Loan | Tokyo Interbank Offer Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||
Loans Payable | First Credit Facility Expires July 2019 | Subsidiary in China | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ 120 | 17,400 | |||||||
Loans Payable | Second Credit Facility Expires September 2017 | Subsidiary in China | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 266 | 38,600 | |||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | ||||||||
Bankers Acceptance | |||||||||
Debt Instrument [Line Items] | |||||||||
Restricted cash and investments, current | 1,700 | $ 2,100 | |||||||
Bankers Acceptance | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Term | 3 months | ||||||||
Bankers Acceptance | Subsidiary in China | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility | 5,700 | $ 6,400 | |||||||
Bankers Acceptance | Subsidiary in China | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Term | 6 months | ||||||||
Bankers Acceptance | First Credit Facility Expires July 2019 | Subsidiary in China | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 171.4 | 24,900 | |||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | ||||||||
Bankers Acceptance | Second Credit Facility Expires September 2017 | Subsidiary in China | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 380 | 55,100 | |||||||
Bankers Acceptance | Third Credit Facility Expires July 2019 | Subsidiary in China | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | ||||||||
Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of letters of credit | item | 3 | ||||||||
Short-term line of credit facility | 1,600 | ||||||||
China | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of short-term credit facilities | item | 3 | ||||||||
China | Loans Payable | Third Credit Facility Expires July 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30 | 4,400 | |||||||
China | Short Term Loans | Third Credit Facility Expires July 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ 42.9 | $ 6,200 |
Debt - Maturities of Long-Term
Debt - Maturities of Long-Term debt (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Debt | |
2017 (remaining nine months) | $ 671 |
2,018 | 5,370 |
2,019 | 896 |
2,020 | 896 |
2,021 | 896 |
Thereafter | 2,838 |
Total long-term debt, current and non-current | $ 11,567 |
Japan pension plans - (Details)
Japan pension plans - (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension liability | $ 5 | $ 4.8 |
Accrued and other current liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension liability included in accrued and other current liabilities | $ 0.4 | $ 0.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ft² in Thousands, € in Millions | Dec. 27, 2016USD ($) | Mar. 23, 2015EUR (€) | Mar. 23, 2015USD ($) | Sep. 16, 2013USD ($) | Apr. 30, 2017USD ($) | Sep. 30, 2016ft² | Aug. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2010claimdefendant | Mar. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Operating leases, future minimum payments due | $ 26,900,000 | |||||||||||
Rent expense | 1,000,000 | $ 600,000 | ||||||||||
Operating leases, future minimum, sublease receipts | $ 1,000,000 | |||||||||||
Number of defendants | defendant | 4 | |||||||||||
Area of office lease | ft² | 64 | |||||||||||
Office lease term, months | 129 months | |||||||||||
Office lease, monthly rental rate | $ 144,000 | |||||||||||
Office and laboratory lease period free of charge | 9 months | |||||||||||
Amount of contribution | $ 18,800,000 | |||||||||||
Expected Costs to Transfer Product Line | $ 100,000 | |||||||||||
Penalty payment derivative | $ 400,000 | 400,000 | ||||||||||
Revenue | 71,688,000 | $ 99,145,000 | ||||||||||
Additional paid-in capital | 535,292,000 | $ 532,378,000 | ||||||||||
Restoration Costs Upon Lease Termination | 3,100,000 | |||||||||||
Finisar Corp | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Loss Contingency, Pending Claims, Number | claim | 2 | |||||||||||
Lestina International Ltd. litigation | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Dispute related to purchase orders | $ 3,000,000 | |||||||||||
Maximum | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Office lease, monthly rental rate | 194,000 | |||||||||||
Pending Litigation | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Partial settlement of claims | $ 492,000 | |||||||||||
Accrual for estimated net litigation expense | € 1 | $ 1,100,000 | ||||||||||
Litigation liability accrued | $ 300,000 | |||||||||||
Embedded Derivative Financial Instruments [Member] | Maximum | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Other non-current liability | 5,000,000 | |||||||||||
RUSSIAN FEDERATION | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Exit fees for future | 2,000,000 | |||||||||||
Subsequent Event | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Payment for legal settlement | $ 250,000 | |||||||||||
Private Placement [Member] | Performance Guarantee [Member] | ||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||
Other non-current liability | $ 30,000,000 |
Stockholders' Equity - Common s
Stockholders' Equity - Common stock, resale registration statement, and follow-on public offering (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | |||
Common Stock Shares Authorized | 100,000,000 | 100,000,000 | |
Common stock, par value | $ 0.0025 | $ 0.0025 | |
Other offering expenses | $ 117 | ||
Reclassified out of accumulated other comprehensive loss for realized gains or losses on available for sale securities | 0 | $ 0 | |
Accumulated deficit subject to restriction | $ 8,700 | $ 8,700 | |
Minimum | |||
Class Of Stock [Line Items] | |||
Accumulated profits | 10.00% | 10.00% | |
Employee Stock Options | |||
Class Of Stock [Line Items] | |||
Common stock | 8,509,302 | ||
Sale of common stock upon the exercise of overallotment option | 133,287 | ||
Employee Stock Purchase Plan | |||
Class Of Stock [Line Items] | |||
Common stock | 627,848 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Balance | $ (8,401) | |
Other comprehensive income, net of taxes of zero and reclassifications | 2,471 | $ 2,093 |
Balance | (5,930) | |
Foreign Currency Translation Adjustments | ||
Balance | (8,235) | |
Other comprehensive income, net of taxes of zero and reclassifications | 2,468 | |
Balance | (5,767) | |
Unrealized (Loss) Gain on Available-For-Sale Securities | ||
Balance | (19) | |
Other comprehensive income, net of taxes of zero and reclassifications | 3 | |
Balance | (16) | |
Defined Benefit Pension Plan Adjustment | ||
Balance | (147) | |
Balance | $ (147) |
Stock-based compensation - Stoc
Stock-based compensation - Stock-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share Based Compensation | $ 1,872 | $ 3,439 |
Cost of Goods Sold [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share Based Compensation | 147 | 589 |
Research and Development Expense [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share Based Compensation | 662 | 971 |
Selling and Marketing Expense [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share Based Compensation | 464 | 887 |
General and Administrative Expense [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share Based Compensation | $ 599 | $ 992 |
Stock Appreciation Units (SAUs) [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 1.1 | |
Market Based Awards Member | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 0.2 | |
Market Based Awards Vesting, Threshold Consecutive Trading Days | 20 days | |
Share Price | $ 15 |
Stock-based compensation - Esti
Stock-based compensation - Estimated fair vale of stock-based awards (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.76% | ||
Employee Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 0 years | 4 years 11 months 16 days | |
Weighted-average volatility | 64.00% | ||
Risk-free interest rate Minimum | 1.76% | ||
Expected dividends | 0.00% | 0.00% | |
Stock Appreciation Units (SAUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 2 years 5 months 12 days | 3 years 11 days | |
Weighted-average volatility | 71.00% | 61.00% | |
Risk-free interest rate Minimum | 0.51% | 0.65% | |
Risk-free interest rate Maximum | 1.47% | 1.47% | |
Expected dividends | 0.00% | 0.00% | |
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 8 months 12 days | 8 months 12 days | |
Weighted-average volatility | 54.00% | 70.00% | |
Risk-free interest rate Minimum | 0.45% | 0.08% | |
Risk-free interest rate Maximum | 0.59% | 0.33% | |
Expected dividends | 0.00% | 0.00% |
Stock-based compensation - St60
Stock-based compensation - Stock Options and RSUs (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Employee Stock Options | |
Number of Shares | |
Beginning Balance | shares | 4,301,340 |
Exercised/Converted | shares | (133,287) |
Cancelled/Forfeited | shares | (6,666) |
Ending Balance | shares | 4,161,387 |
Weighted Average Exercise Price | |
Beginning Balance | $ / shares | $ 5.18 |
Exercised/Converted | $ / shares | 3.68 |
Cancelled/Forfeited | $ / shares | 11.61 |
Ending Balance | $ / shares | $ 5.22 |
Restricted stock units | |
Number of Units | |
Beginning Balance | shares | 2,089,473 |
Granted | shares | 101,082 |
Exercised/Converted | shares | (8,332) |
Cancelled/Forfeited | shares | (13,675) |
Ending Balance | shares | 2,168,548 |
Weighted Average Exercise Price | |
Beginning Balance | $ / shares | $ 10.15 |
Granted | $ / shares | 9.96 |
Exercised/Converted | $ / shares | 8.50 |
Cancelled/Forfeited | $ / shares | 10.93 |
Ending Balance | $ / shares | $ 10.14 |
Stock-based compensation - St61
Stock-based compensation - Stock appreciation units (Details) - Stock Appreciation Units (SAUs) [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Performance-based stock appreciation units | 0 | 0 |
Shares outstanding | 278,007 | 286,768 |
SAU-related liabilities | $ 1.6 | $ 2 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) $ in Millions | Mar. 31, 2017USD ($) |
Employee Stock Purchase Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 0.5 |
Income taxes - Provision for in
Income taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income taxes | ||
Income tax (provision) benefit | $ 167 | $ (1,041) |
Income taxes - Additional infor
Income taxes - Additional information (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income Taxes [Line Items] | |
Changes to the amounts of uncertain tax positions previously determined | $ 0 |
Foreign Country [Member] | Subsidiary in China | |
Income Taxes [Line Items] | |
Preferential rate | 15.00% |
Income tax statutory rate | 25.00% |
Corporate effective income tax rate | 25.00% |
Subsequent events (Details)
Subsequent events (Details) - Subsequent Event - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2017 | Jun. 30, 2017 | |
Minimum | ||
Subsequent Event [Line Items] | ||
Expected pre-tax restructuring costs | $ 0.7 | |
Maximum | ||
Subsequent Event [Line Items] | ||
Expected pre-tax restructuring costs | $ 1 | |
Comerica | ||
Subsequent Event [Line Items] | ||
Repayments of Lines of Credit | $ 23.8 |