Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | NPTN | |
Entity Registrant Name | NEOPHOTONICS CORP | |
Entity Central Index Key | 1,227,025 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,945,300 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 58,528,000 | $ 82,500,000 |
Short-term investments | 12,281,000 | 19,015,000 |
Restricted cash | 2,917,000 | 4,085,000 |
Accounts receivable, net of allowance for doubtful accounts | 67,003,000 | 80,610,000 |
Inventories | 82,809,000 | 48,237,000 |
Assets held for sale | 0 | 13,953,000 |
Prepaid expenses and other current assets | 34,568,000 | 22,396,000 |
Total current assets | 258,106,000 | 270,796,000 |
Property, plant and equipment, net | 127,316,000 | 106,867,000 |
Purchased intangible assets, net | 4,594,000 | 5,562,000 |
Goodwill | 1,115,000 | 1,115,000 |
Other long-term assets | 6,858,000 | 6,547,000 |
Total assets | 397,989,000 | 390,887,000 |
Current liabilities: | ||
Accounts payable | 69,771,000 | 84,766,000 |
Notes payable and short-term borrowing | 19,630,000 | 30,190,000 |
Current portion of long-term debt | 5,740,000 | 747,000 |
Accrued and other current liabilities | 44,743,000 | 30,625,000 |
Total current liabilities | 139,884,000 | 146,328,000 |
Long-term debt, net of current portion | 41,029,000 | 10,215,000 |
Other noncurrent liabilities | 14,959,000 | 8,939,000 |
Total liabilities | 195,872,000 | 165,482,000 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0025 par value, 10,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.0025 par value, 100,000 shares authorized; At September 30, 2017, 43,909 shares issued and and outstanding; at December 31, 2016, 42,526 shares issued and outstanding | 110,000 | 106,000 |
Additional paid-in capital | 542,029,000 | 532,378,000 |
Accumulated other comprehensive loss | (2,294,000) | (8,401,000) |
Accumulated deficit | (337,728,000) | (298,678,000) |
Total stockholders’ equity | 202,117,000 | 225,405,000 |
Total liabilities and stockholders’ equity | $ 397,989,000 | $ 390,887,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 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 | 43,909 | 42,526 |
Common stock, shares outstanding | 43,909 | 42,526 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 71,121 | $ 103,312 | $ 216,023 | $ 301,586 |
Cost of goods sold | 60,608 | 75,863 | 170,230 | 215,486 |
Gross profit | 10,513 | 27,449 | 45,793 | 86,100 |
Operating expenses: | ||||
Research and development | 14,662 | 17,474 | 44,412 | 42,206 |
Sales and marketing | 4,071 | 5,936 | 12,913 | 13,674 |
General and administrative | 7,637 | 9,822 | 26,792 | 26,747 |
Amortization of purchased intangible assets | 119 | 462 | 355 | 1,375 |
Acquisition and asset sale related costs | 78 | 148 | 229 | 923 |
Restructuring charges | 2,829 | 0 | 3,550 | 0 |
Gain on asset sale | 0 | 0 | (2,000) | 0 |
Total operating expenses | 29,396 | 33,842 | 86,251 | 84,925 |
Income (loss) from operations | (18,883) | (6,393) | (40,458) | 1,175 |
Interest income | 37 | 95 | 141 | 227 |
Interest expense | (495) | (103) | (743) | (304) |
Other income (expense), net | (41) | 18 | 197 | (828) |
Total interest and other income (expense), net | (499) | 10 | (405) | (905) |
Income (loss) before income taxes | (19,382) | (6,383) | (40,863) | 270 |
Income tax (provision) benefit | 1,195 | (804) | 1,813 | (2,471) |
Net loss | $ (18,187) | $ (7,187) | $ (39,050) | $ (2,201) |
Basic net loss per share (USD per share) | $ (0.42) | $ (0.17) | $ (0.90) | $ (0.05) |
Diluted net loss per share (USD per share) | $ (0.42) | $ (0.17) | $ (0.90) | $ (0.05) |
Weighted average shares used to compute basic net loss per share (in shares) | 43,790 | 42,038 | 43,212 | 41,589 |
Weighted average shares used to compute diluted net loss per share (in shares) | 43,790 | 42,038 | 43,212 | 41,589 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (18,187) | $ (7,187) | $ (39,050) | $ (2,201) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 2,177 | (22) | 6,090 | 292 |
Unrealized gains on available-for-sale securities, net of zero tax | 1 | 0 | 17 | 33 |
Total other comprehensive income (loss) | 2,178 | (22) | 6,107 | 325 |
Comprehensive loss | $ (16,009) | $ (7,209) | $ (32,943) | $ (1,876) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gains on available-for-sale securities, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (39,050,000) | $ (2,201,000) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 20,630,000 | 16,921,000 |
Stock-based compensation expense | 5,692,000 | 14,445,000 |
Deferred taxes | 673,000 | (1,162,000) |
Amortization of investment, debt and other | 158,000 | 125,000 |
Gain on sale of assets and other write-offs | (1,623,000) | (18,000) |
Gain on foreign currency hedges | (1,501,000) | 0 |
Allowance for doubtful accounts | 76,000 | (415,000) |
Write-down of inventories | 7,083,000 | 1,995,000 |
Asset impairment charge | 275,000 | 0 |
Foreign currency remeasurement and other, net | 1,576,000 | (556,000) |
Change in assets and liabilities, net of effects of asset sale: | ||
Accounts receivable | 13,755,000 | (12,169,000) |
Inventories | (36,466,000) | 4,518,000 |
Prepaid expenses and other assets | (12,002,000) | (3,439,000) |
Accounts payable | (9,424,000) | 12,610,000 |
Accrued and other liabilities | 8,937,000 | (3,937,000) |
Net cash (used in) provided by operating activities | (41,211,000) | 26,717,000 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (41,461,000) | (29,962,000) |
Proceeds from sale of property, plant and equipment and other assets | 21,806,000 | 139,000 |
Purchase of marketable securities | (52,031,000) | (69,520,000) |
Proceeds from sale of marketable securities | 52,272,000 | 48,979,000 |
Proceeds from maturity of marketable securities | 6,458,000 | 15,373,000 |
Change in restricted cash | 1,316,000 | (226,000) |
Settlement of foreign currency hedges | 1,553,000 | 0 |
Net cash used in investing activities | (10,087,000) | (35,217,000) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options and issuance of stock under ESPP | 3,568,000 | 5,083,000 |
Tax withholding on restricted stock units | (973,000) | (570,000) |
Payments for public stock offering | (117,000) | (25,000) |
Proceeds from bank loans, net of debt issuance costs | 96,039,000 | 71,400,000 |
Repayment of bank loans | (68,270,000) | (72,090,000) |
Proceeds from issuance of notes payable | 5,842,000 | 13,144,000 |
Repayment of notes payable | (9,789,000) | (14,069,000) |
Proceeds from government grants | 0 | 608,000 |
Net cash provided by financing activities | 26,300,000 | 3,481,000 |
Effect of exchange rates on cash and cash equivalents | 1,026,000 | 556,000 |
Net decrease in cash and cash equivalents | (23,972,000) | (4,463,000) |
Cash and cash equivalents at the beginning of the period | 82,500,000 | 76,088,000 |
Cash and cash equivalents at the end of the period | 58,528,000 | 71,625,000 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Decrease (increase) in unpaid property, plant and equipment | 6,430,000 | (12,494,000) |
Asset retirement obligations | 2,146,000 | 0 |
Unpaid deferred offering costs | $ 0 | $ 76,000 |
Basis of presentation and signi
Basis of presentation and significant accounting policies | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and significant accounting policies | 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 September 30, 2017 and for the three and nine months ended September 30, 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 and nine months ended September 30, 2017 are not necessarily indicative of the results expected for the entire fiscal year. All intercompany accounts and transactions have been eliminated. Going Concern Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, requires an entity to disclose information about its potential inability to continue as a going concern when conditions and events indicate that it is probable that the entity may be unable to meet its obligations as they become due within one year. Management has assessed the Company’s ability to continue as a going concern within one year of the filing date of this Quarterly Report on Form 10-Q with the SEC in November 2017. The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of September 30, 2017 , the Company’s working capital was $118.2 million , including available cash, cash equivalents, short-term investments and restricted cash of approximately $73.7 million . In the first nine months of 2017, the Company had operating losses of $40.5 million and negative cash flows from operations of $41.2 million . It had an accumulated deficit of approximately $337.7 million as of September 30, 2017 . The Company's operating results and cash flows during the first nine months of 2017 have been negatively affected by reduced demand in China stemming from delayed provincial deployments and a buildup of inventory at one or more of our leading customers, which is expected to continue into early 2018. In response, the Company implemented restructuring plans in May and September 2017 that included a reduction in force and consolidation of facilities, which are expected to reduce quarterly expenses by approximately $2.6 million when fully realized in the first quarter of 2018. The Company has also reduced or delayed certain product development projects and capital expenditures, aggressively pursued collections and continued to closely manage production and inventory levels. In September 2017, the Company entered into a revolving line of credit agreement with Wells Fargo Bank, National Association ("Wells Fargo") which provides for borrowings under an accounts receivable based formula up to a maximum of $50.0 million . At September 30, 2017, $30.0 million was outstanding under this line, of which $20.0 million was used to pay the amount due under the Comerica facility. The remaining borrowing capacity at September 30, 2017 was $19.8 million , of which $5.0 million is required to be maintained as unused borrowing capacity. Borrowings under the Wells Fargo line are not due until June 30, 2022 as long as the borrowing base is not less than the outstanding amount (See Note 8). The Company also has approximately $21.6 million available for short-term borrowings under two line of credit agreements in with Pudong Bank in China that expire in July 2019. A third, $39.2 million line of credit agreement with CITIC Bank in China expired in September 2017 and the Company is currently discussing a potential renewal of the line with the bank. As of September 30, 2017, $17.0 million is outstanding under the CITIC Bank line, which is due on January 2, 2018. If the Company is not successful in renewing the CITIC bank line, its intention is to repay the $17.0 million using the amount available under its other existing lines of credit available in China. Additionally, the Company has $5.7 million of current portion of long-term debt as of September 30, 2017 , which it plans to pay out of its existing available cash. The Company currently believes it will have sufficient resources to fund its currently planned operations and expenditures over the next twelve months without additional financing or other actions. In addition, the Company believes there are a number of ongoing and potential actions that may further strengthen its projected cash and projected financial position. The Company operates in an industry that makes its prospects difficult to evaluate with certainty. Future declines in China market demand or other changes to the Company’s forecasts could adversely affect the Company’s results of operations, financial position and cash flows. As a result, the Company may need to raise additional debt or equity capital to fund its operations. Any additional debt arrangements may likely require regular interest and principal payments which could adversely affect the Company’s operations. There can be no assurance that additional debt or equity capital will be available on acceptable terms, or at all. The accompanying unaudited condensed financial statements do not include any adjustments that may result from the outcome of these uncertainties. 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 September 30, 2017 , Huawei Technologies Co. Ltd. and their affiliate HiSilicon Technologies (together with Huawei Technologies Co. Ltd., "Huawei"), Ciena Corporation ("Ciena") and Fiberhome Technologies Co, Ltd ("Fiberhome") accounted for approximately 39% , 14% and 11% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 79% of the Company’s total revenue. In the three months ended September 30, 2016 , Huawei and Ciena accounted for approximately 48% and 15% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 79% of the Company’s total revenue. In the nine months ended September 30, 2017 , Huawei and Ciena accounted for 39% and 16% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 76% of its total revenue. In the nine months ended September 30, 2016 , Huawei and Ciena accounted for 49% and 15% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 79% of its total revenue. As of September 30, 2017 , two customers accounted for approximately 45% and 10% 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. Accounting Standards Update Recently Adopted Effective January 1, 2017, the Company adopted ASU 2016-9, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-9”). ASU 2016-9 simplifies certain aspects of the accounting for shared-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. It eliminates the requirement to delay the recognition of excess tax benefits until current taxes payable are reduced. 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 in the statements of cash flows prospectively and elected to continue to account for estimated forfeitures over the vesting period of the share-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 inventories “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. Effective December 31, 2016, the Company adopted ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. (“ASU 2014-15”). Under the new standard, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. This ASU requires management to perform an analysis of the Company’s ability to continue as a going concern as of the issue date of the financial statements. See above – Basis of Presentation and Significant Accounting Policies for the discussion of the Company’s ability to continue as a going concern. There have been no other changes in the Company’s significant accounting policies in the nine months ended September 30, 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 Standards Update Not Yet Effective In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-9, Compensation — Stock Compensation (718)—Scope of Modification Accounting (ASU 2017-9”). This guidance redefines which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting for a share-based payment. ASU 2017-9 is effective for interim and annual periods after December 15, 2017 and early adoption is permitted in any interim period. The Company has not yet determined whether it will elect early adoption and has determined that the adoption of this standard will no t have a significant impact on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU No. 2017-7, Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-7”). This guidance revises the presentation of employer-sponsored defined benefit pension and other postretirement plans for the net periodic benefit cost in the statement of operations and requires that the service cost component of net periodic benefit be presented in the same income statement line items as other employee compensation costs for services rendered during the period. The other components of the net benefit costs are required to be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. This guidance allows only the service cost component of net periodic benefit costs to be eligible for capitalization. ASU 2017-7 is effective for interim and annual periods after December 15, 2018 and early adoption is permitted as of the beginning of an annual reporting period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-4, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-4”). 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 2017-4 is effective prospectively for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-1”). This standard provides a framework in determining when a set of assets and activities is a business. ASU 2017-1 is effective for interim and annual periods beginning after December 15, 2017 on a prospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. 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 the 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 the 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 date practicable if retrospective application is impracticable. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. 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 the adoption on its consolidated financial statements and related disclosure. In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) (“ASU 2016-2”). ASU 2016-2 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 the adoption on its consolidated financial statements and related disclosure. In January 2016, the FASB issued ASU 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-1”). ASU 2016-1 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 adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers (“ASU 2014-9”). 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. ASU 2014-9 is required to be adopted, using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-9; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-9 recognized at the date of initial application and providing certain additional disclosures. 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. The Company will adopt this standard in the first quarter of 2018. The Company is in the process of assessing the impact that implementation of this new standard will have on its consolidated financial statements, including evaluation of the disclosure requirements. Although its evaluation is ongoing, the Company currently believes that the impact will not be significant, as most revenue will continue to be recognized at a point-in-time when control transfers which is similar to the current revenue recognition model. The Company will continue to assess the impact, including potential changes to its accounting policies, business processes, systems and internal controls over financial reporting and its current assessment is subject to change. |
Net loss per share
Net loss per share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net loss per share | Net loss per share The following table sets forth the computation of the basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator: Net loss $ (18,187 ) $ (7,187 ) $ (39,050 ) $ (2,201 ) Denominator: Weighted average shares used to compute per share amount: Basic 43,790 42,038 43,212 41,589 Dilutive effect of equity awards — — — — Diluted 43,790 42,038 43,212 41,589 Basic net loss per share $ (0.42 ) $ (0.17 ) $ (0.90 ) $ (0.05 ) Diluted net loss per share $ (0.42 ) $ (0.17 ) $ (0.90 ) $ (0.05 ) The Company has excluded the impact of the following outstanding employee stock options and restricted stock units as well as the shares expected to be issued under its employee stock purchase plan from the computation of diluted net loss per share, as their effect would have been antidilutive (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Employee stock options 4,227 4,344 4,227 4,344 Restricted stock units 2,504 2,044 2,504 2,044 Employee stock purchase plan 245 151 245 151 6,976 6,539 6,976 6,539 |
Cash, cash equivalents, short-t
Cash, cash equivalents, short-term investments, and restricted cash | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents, short-term investments and restricted cash | 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): September 30, December 31, Cash and cash equivalents: Cash $ 53,716 $ 58,691 Cash equivalents 4,812 23,809 Cash and cash equivalents $ 58,528 $ 82,500 Short-term investments $ 12,281 $ 19,015 Restricted cash $ 2,917 $ 4,085 As of September 30, 2017 and December 31, 2016 , restricted cash included approximately $2.0 million pursuant to an asset purchase agreement with Optoelectronics Components Co., 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 September 30, 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 funds $ 11,530 $ — $ — $ 11,530 $ 199 $ — $ — $ 199 Money market accounts 4,812 — — 4,812 23,809 — — 23,809 Corporate debt securities — — — — 9,438 4 (3 ) 9,439 Government agency securities — — — — 3,767 — (10 ) 3,757 U.S. government securities 753 — (2 ) 751 5,008 — (10 ) 4,998 Sovereign government bonds — — — — 622 — — 622 Total $ 17,095 $ — $ (2 ) $ 17,093 $ 42,843 $ 4 $ (23 ) $ 42,824 Reported as: Cash equivalents $ 4,812 $ — $ — $ 4,812 $ 23,809 $ — $ — $ 23,809 Short-term investments 12,283 — (2 ) 12,281 19,034 4 (23 ) 19,015 Total $ 17,095 $ — $ (2 ) $ 17,093 $ 42,843 $ 4 $ (23 ) $ 42,824 As of September 30, 2017 and December 31, 2016 , maturities of marketable securities were as follows (in thousands): September 30, December 31, Less than 1 year $ 17,093 $ 36,054 Due in 1 to 2 years — 6,468 Due in 3 to 5 years — 302 Total $ 17,093 $ 42,824 Realized gains and losses on the sale of marketable securities during the three and nine months ended September 30, 2017 and 2016 were insignificant. The Company did not recognize any impairment losses on its marketable securities during the three and nine months ended September 30, 2017 or 2016 . As of September 30, 2017 , 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 | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value disclosures | 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 September 30, 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 $ 11,530 $ — $ — $ 11,530 $ 199 $ — $ — $ 199 U.S. government securities 751 — — 751 4,998 — — 4,998 Money market accounts — 4,812 — 4,812 — 23,809 — 23,809 Corporate debt securities — — — — — 9,439 — 9,439 Government agency securities — — — — — 3,757 — 3,757 Sovereign government bonds — — — — — 622 — 622 Total $ 12,281 $ 4,812 $ — $ 17,093 $ 5,197 $ 37,627 $ — $ 42,824 Foreign currency forward contracts* $ — $ — $ — $ — $ — $ — $ — $ — Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 927 $ — $ — $ 927 $ 622 $ — $ — $ 622 ________________________________________________________ *The fair value of the Company’s foreign currency forward contract was immaterial as of September 30, 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 September 30, 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 September 30, 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 September 30, 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 the Company’s foreign currency exchange contract as of September 30, 2017 was $19.2 million for Chinese Yuan offshore or CNH that approximates the RMB. The following table presents the Company's liabilities that are measured at fair value on a recurring basis (in thousands): As of September 30, 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 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis As of September 30, 2017 and December 31, 2016 the Company had no assets or liabilities required to be measured at fair value on a nonrecurring basis. 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. This liability was measured using the Company's best estimate of the likelihood of payment based on circumstances the Company identified as having a significant impact on its fair value during the period, which is considered to be a level 3 fair value measurement. 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 estimated fair value of the Company's long-term debt approximated its carrying value as of September 30, 2017 and December 31, 2016 , as the interest rates approximated rates currently available to the Company on the issuance of liabilities with a similar maturity. This estimate is considered to be a level 2 fair value measurement. |
Asset sale
Asset sale | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset sale | 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 transition service arrangement were $13.0 million and $12.6 million , respectively, as of September 30, 2017 . As of December 31, 2016 , the balance in assets held for sale was $13.9 million , consisting 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. As of September 30, 2017 , the Company has a reserve of $7.0 million within accrued and other current liabilities for warranty claims and an estimated $0.2 million in additional property, plant and equipment purchases. The indemnification warranties expired on June 30, 2017 and resulted in no change to the gain on the sale that was recorded in the first quarter of 2017 . The Company recognized a $2.0 million gain on the sale of these assets within operating loss in the nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance sheet components | Balance sheet components Accounts receivable, net Accounts receivable, net consists of the following (in thousands): September 30, 2017 December 31, 2016 Accounts receivable $ 65,980 $ 78,143 Trade notes receivable 1,148 2,892 Allowance for doubtful accounts (125 ) (425 ) $ 67,003 $ 80,610 Inventories, net Inventories, net consist of the following (in thousands): September 30, 2017 December 31, 2016 Raw materials $ 38,617 $ 23,348 Work in process 14,746 10,996 Finished goods (1) 29,446 13,893 $ 82,809 $ 48,237 ________________________________________________________ (1) Finished goods inventory at customer vendor managed inventory locations was $8.7 million and $8.3 million as of September 30, 2017 and December 31, 2016 , respectively. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2017 December 31, 2016 Prepaid taxes and taxes receivable $ 15,234 $ 16,102 Transition services agreement receivable (Note 5) 13,006 — Deposits and other prepaid expenses 4,162 3,571 Other receivable 2,166 2,723 $ 34,568 $ 22,396 Purchased intangible assets Purchased intangible assets consist of the following (in thousands): September 30, 2017 December 31, 2016 Gross Assets Accumulated Amortization Net Assets Gross Accumulated Net Technology and patents $ 37,415 $ (34,458 ) $ 2,957 $ 36,918 $ (33,316 ) $ 3,602 Customer relationships 15,302 (14,595 ) 707 15,039 (13,990 ) 1,049 Leasehold interest 1,280 (350 ) 930 1,226 (315 ) 911 $ 53,997 $ (49,403 ) $ 4,594 $ 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 Nine Months Ended 2017 2016 2017 2016 Cost of goods sold $ 202 $ 853 $ 667 $ 2,542 Operating expenses 119 462 355 1,375 Total $ 321 $ 1,315 $ 1,022 $ 3,917 The estimated future amortization expense of purchased intangible assets as of September 30, 2017 , is as follows (in thousands): 2017 (remaining three months) $ 321 2018 1,209 2019 807 2020 689 2021 689 Thereafter 879 $ 4,594 Accrued and other current liabilities Accrued and other current liabilities consist of the following (in thousands): September 30, 2017 December 31, 2016 Transition services agreement payables (Note 5) $ 12,603 $ — Employee-related 12,103 18,654 Asset sale related contingent liabilities (Note 5) 6,977 — Accrued warranty 1,402 678 Deferred revenue, current 809 956 Income and other taxes payable 305 3,956 Rusnano payment derivative — 389 Other accrued expenses 10,544 5,992 $ 44,743 $ 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 Nine Months Ended 2017 2016 2017 2016 Beginning balance $ 528 $ 669 $ 678 $ 1,175 Warranty accruals 1,047 126 1,019 25 Settlements (173 ) (110 ) (295 ) (515 ) Ending balance $ 1,402 $ 685 $ 1,402 $ 685 Other noncurrent liabilities Other noncurrent liabilities consist of the following (in thousands): September 30, 2017 December 31, 2016 Pension and other employee-related $ 5,535 $ 5,045 Deferred rent 2,856 1,509 Deferred revenue 916 136 Government grant 743 1,048 Rusnano payment derivative 389 — Deferred income tax liabilities 64 46 Asset retirement obligations and other 4,456 1,155 $ 14,959 $ 8,939 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the six months ended June 30, 2017, the Company initiated restructuring actions consisting primarily of workforce reductions in order to reduce its operating costs. During the three months ended September 30, 2017, the Company initiated further restructuring actions in order to focus on key growth initiatives and a lower break even revenue level through lower operating expenses and manufacturing costs. Actions included a reduction in force, facilities consolidation and certain asset-related adjustments. These actions are expected to reduce quarterly operating expenses and costs of goods sold by approximately $2.0 million and $0.6 million , respectively, when fully realized in the first quarter of 2018. The Company recorded $3.1 million and $4.1 million in restructuring charges within cost of goods sold and operating expenses in the three and nine months ended September 30, 2017 , respectively. Additionally, the Company recorded a charge of $2.0 million to cost of goods sold in the three months ended September 30, 2017 for discontinued product inventory write-downs related the Company's decisions to end-of-life certain products. Restructuring activities for the nine months ended September 30, 2017 were as follows (in thousands): Employee Severance Facilities Consolidation Asset-Related Total Restructuring obligations December 31, 2016 $ — $ — $ — $ — Charges 1,790 1,930 394 4,114 Cash payments (902 ) — — (902 ) Non-cash settlements and other — (149 ) (323 ) (472 ) Restructuring obligations September 30, 2017 $ 888 $ 1,781 $ 71 $ 2,740 The current restructuring liability reported in Accrued and other current liabilities in the Condensed Consolidated Balance Sheets as of September 30, 2017 was $1.7 million . The non-current restructuring liability reported in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets as of September 30, 2017 was $1.0 million . The Company expects to incur additional costs of approximately $0.7 million in severance charges in connection with its restructuring activities in the three months ending December 31, 2017 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the carrying amount and weighted average interest rate of the Company’s debt (in thousands, except percentages): September 30, 2017 December 31, 2016 Carrying Amount Interest Rate Carrying Interest Note payable to financial institution $ 17,000 4.06 % $ — — Notes payable to suppliers 2,630 — 6,390 Short-term borrowing under Comerica Bank Credit Facility — — 23,800 3.37 % Total notes payable and short-term borrowing $ 19,630 $ 30,190 Long-term debt, current and non-current: Borrowing under Wells Fargo Credit Facility $ 30,018 3.16 % $ — Mitsubishi Bank loans 17,168 1.44 % 11,253 1.43 % Unaccreted discount and issuance costs within current portion of long-term debt (103 ) (108 ) Unaccreted discount and issuance costs within long-term debt, net of current portion (314 ) (183 ) Total long-term debt, net of unaccreted discount and issuance costs $ 46,769 $ 10,962 Reported as: Current portion of long-term debt $ 5,740 $ 747 Long-term debt, net of current portion 41,029 10,215 Total long-term debt, net of unaccreted discount and issuance costs $ 46,769 $ 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 September 30, 2017 , the Company’s subsidiary in China had two line of credit facilities with Pudong Bank: • Under the first line of credit facility, the Company can borrow up to RMB 120.0 million ( $18.0 million ) for short-term loans at varying interest rates, or up to approximately RMB 171.4 million ( $25.8 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 July 2019, the Company can borrow up to RMB 30.0 million ( $4.5 million ) for short-term loans at varying interest rates, or up to approximately RMB 42.9 million ( $6.4 million ) for bank acceptance drafts (with a 30% compensating balance requirement). A third line of credit facility with CITIC Bank in China expired during September 2017. In July 2017, the Company borrowed $17.0 million under this line which bears interest at LIBOR plus 2.55% and will mature on January 2, 2018. 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 $2.6 million and $6.4 million as of September 30, 2017 and December 31, 2016 , respectively. In addition to the outstanding notes payable, three letters of credit totaling $1.6 million were issued to its suppliers in 2016 for equipment purchases delivered by December 2016. These letters of credit required a 30% compensating balance. As of December 31, 2016 , the outstanding balance of these letters of credit was immaterial and was fully repaid as of September 30, 2017 . The total amount available for short-term borrowings under these line of credit facilities as of September 30, 2017 was $21.6 million . As of September 30, 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 $0.8 million and $2.1 million , respectively. Compensating balances are classified as restricted cash on the Company’s condensed consolidated balance sheets. Credit Facilities The Company had 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 January 2017, the Company amended the Comerica Bank Credit Facility to extend the maturity to April 30, 2017 and to remove the covenant related to EBITDA. In April 2017, the Company amended the Comerica Bank Credit Facility to extend the maturity date to July 31, 2017 and to add a financial covenant that required maintenance of a modified EBITDA. In June 2017, the Company amended the Comerica Bank Credit Facility to extend the maturity to August 31, 2017, to allow NeoPhotonics China to borrow up to $17.0 million , to limit the indebtedness under the facility to $20.0 million and to modify the EBITDA requirement. In August 2017, the Credit Facility was further amended to extend the maturity to September 30, 2017. As of 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 the year end. Borrowings under the Comerica Bank Credit Facility bore interest at an interest rate option of a base rate as defined in the agreement plus 1.75% or LIBOR plus 2.75% . The base rate was 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 December 31, 2016 , the rate on the LIBOR option was 3.37% and the outstanding balance was $23.8 million . In September 2017 the Company entered into a revolving line of credit agreement with Wells Fargo Bank, National Association ("Wells Fargo") as the administrative agent for a lender group (the "Wells Fargo Credit Facility" or "Credit Facility"), and the amount outstanding under the Comerica Bank Credit Facility was paid in full. The Wells Fargo Credit Facility provides for borrowings equal to the lower of (a) a maximum revolver amount of $50.0 million , or (b) an amount equal to 80% - 85% of eligible accounts receivable plus 100% of qualified cash balances up to $15.0 million , less certain discretionary adjustments ("Borrowing Base"). The maximum revolver amount may be increased by up to $25.0 million , subject to certain conditions. At closing, $50.0 million was available, of which $30.0 million was drawn. The Company used $20.0 million of this amount to pay the principal and interest due under the Comerica Bank Credit Facility, which has since been terminated. The Credit Facility matures on June 30, 2022 and borrowings bear interest at an interest rate option of either (a) the LIBOR rate, plus an applicable margin ranging from 1.50% to 1.75% per annum, or (b) the prime lending rate, plus an applicable margin ranging from 0.50% to 0.75% per annum. The Company is also required to pay a commitment fee equal to 0.25% of the unused portion of the Credit Facility. The Credit Facility agreement ("Agreement") requires prepayment of the borrowings to the extent the outstanding balance is greater than the lesser of (a) the most recently calculated Borrowing Base, or (b) the maximum revolver amount. The Company is required to maintain a combination of certain defined cash balances and unused borrowing capacity under the Credit Facility of at least $20.0 million , of which at least $5.0 million shall include unused borrowing capacity. The Agreement also restricts the Company's ability to dispose of assets, permit change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments and make certain restricted payments. Borrowings under the Credit Facility are collateralized by substantially all of the Company's assets. The Company was in compliance with the covenants of this Credit Facility as of September 30, 2017 . As of September 30, 2017 , the outstanding balance under the Credit Facility was $30.0 million and the weighted average rate under the LIBOR option was 3.16% . The remaining borrowing capacity as of September 30, 2017 was $19.8 million , of which $5.0 million is required to be maintained as unused borrowing capacity. Mitsubishi Bank loans 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 ( $4.4 million ) (the “Term Loan A”) and (ii) a term loan in the aggregate principal amount of one billion JPY ( $8.9 million ) (the “Term Loan B” and together with the Term Loan A, the “2015 Mitsubishi Bank Loans”). The Mitsubishi Bank Loans are secured by a mortgage on certain real property and buildings owned by the Company’s Japanese subsidiary. Interest on the 2015 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 ( $0.4 million ). The 2015 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 2015 Mitsubishi Bank Loans contain financial covenants relating to minimum net assets, maximum ordinary loss and a dividends covenant. Outstanding principal balance under the 2015 Mitsubishi Bank Loans and unamortized debt issuance costs were approximately 1.2 billion JPY (approximately $4.4 million for Term Loan A and $6.6 million for Term Loan B) and 46.9 million JPY (approximately $0.4 million ), respectively, as of September 30, 2017 . The Company was in compliance with the related covenants as of September 30, 2017 and December 31, 2016 . 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 $6.1 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 690 million JPY (approximately $6.1 million ) under this loan was drawn as of September 30, 2017 . As of September 30, 2017 , maturities of total long-term debt were as follows (in thousands): 2017 (remaining three months) $ 222 2018 6,099 2019 1,911 2020 1,911 2021 1,911 Thereafter 35,132 $ 47,186 |
Japan pension plans
Japan pension plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Japan pension plans | Japan pension plan The pension liability related to the Company’s Retirement Allowance Plan (“RAP”) in Japan as of September 30, 2017 and December 31, 2016 was $4.7 million and $4.8 million , respectively, of which $0.1 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 and nine months ended September 30, 2017 and 2016 . |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 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. The Company is unable to predict with certainty the outcome of this matter, but is seeking to resolve the matter 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. Discovery is currently in process. Because the purchase orders in question were an assumed liability of the Low Speed Transceiver Products’ assets that were 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. APAT Arbitration On June 16, 2017, APAT Optoelectronics Components Co., Ltd. filed an arbitration claim against NeoPhotonics (China) Co., Ltd. (the Company’s China subsidiary), claiming that approximately $1.5 million of the inventory that was sold to APAT OE by NeoChina in an Asset Purchase Agreement executed between the parties on December 14, 2016 was aged inventory and of no value. The arbitration was heard in the Shenzhen Court of International Arbitration on August 2, 2017. On October 25, 2017, NeoPhotonics (China) Co., Ltd. was informed that it was successful in the defense of the dispute and was also successful in its counterclaim against APAT Optoelectronics Components Co., Ltd. NeoPhotonics (China) Co. Ltd. was awarded approximately RMB 700,000 (USD $100,000 ) in compensatory damages and attorney fees as well as having the approximately $1.5 million claim against it rejected in its entirety. 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. In November 2016 Oyster Communications, Inc. filed nine patent lawsuits against several defendants in the U.S. District Court for the Eastern District of Texas, including one against Cisco Systems, Inc. One defendant has successfully transferred their case to the U.S. District Court for the Northern District of California. Additional defendant requested venue changes are still pending. The Company was not named as a defendant in any of the lawsuits. In July 2017, however, Cisco notified the Company that it would be seeking indemnification from the Company for claims against Cisco arising from the lawsuits. The Company is investigating the matter but is currently unable to predict the outcome of this matter and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. Leases The Company leases various facilities under non-cancelable operating leases expiring through 2027. As of September 30, 2017 , future minimum payments under these operating leases totaled approximately $32.4 million and future minimum sublease receipts were approximately $0.8 million . Rent expense was $1.3 million and $3.5 million in the three and nine months ended September 30, 2017 , respectively, and $0.6 million and $1.7 million in the three and nine months ended September 30, 2016 respectively. On June 13, 2017, the Company entered into an office lease for approximately 39,000 square feet for the Company’s current headquarters in San Jose (the “Lease”) with a commencement date of June 1, 2017. The Company’s existing office lease for the facility was terminated and replaced by the new Lease. Upon commencement, the Lease had an initial term of one hundred and twenty-three ( 123 ) months, ending September 30, 2027, (the “Initial Term”) with a monthly rental rate of $41,388 , escalating annually to a maximum monthly rental rate of approximately $72,525 in the last year of the Initial Term. Upon termination of the Lease, the Company anticipates a restoration cost of approximately $0.7 million . 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, 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 $21.0 million in cash and assets to its subsidiaries in Russia as of December 31, 2016 . Therefore, no amounts of the Rusnano Payment were due as of December 31, 2016 or September 30, 2017 . As of September 30, 2017, the remaining Investment Commitment was approximately $9.0 million to be invested at any time on or before December 31, 2019. At any point between September 30, 2017 and December 31, 2019, the Company may elect to pay a $2.0 million exit fee to terminate any remaining obligations associated with the Investment Commitment. . 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 may 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 are recorded in other income (expense), net. The estimated fair value of this derivative was $0.4 million as of each of September 30, 2017 and December 31, 2016 . As of September 30, 2017 , the derivative was reported within other noncurrent liabilities and as of December 31, 2016 the derivative was reported within accrued and other current liabilities on the Company’s condensed consolidated balance sheets. See Note 4. |
Stockholders' equity
Stockholders' equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ equity | Stockholders’ equity Common Stock As of September 30, 2017 , the Company had reserved 7,464,041 common stock for issuance under its equity incentive plans and 426,840 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 as of December 31, 2016 $ (8,235 ) $ (19 ) $ (147 ) $ (8,401 ) Other comprehensive income, net of taxes of zero and reclassifications 6,090 17 — 6,107 Balance as of September 30, 2017 $ (2,145 ) $ (2 ) $ (147 ) $ (2,294 ) No material amounts were reclassified out of accumulated other comprehensive income during the three and nine months ended September 30, 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 as of 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 | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based compensation The following table summarizes the stock-based compensation expense recognized in the three and nine months ended September 30, 2017 and 2016 (in thousands): September 30, 2017 September 30, 2016 2017 2016 2017 2016 Cost of goods sold $ 340 $ 297 $ 811 $ 1,605 Research and development 606 2,981 1,779 4,508 Sales and marketing 393 2,352 1,170 3,604 General and administrative 595 3,146 1,932 4,728 $ 1,934 $ 8,776 $ 5,692 $ 14,445 Stock-based compensation expense in the three and nine months ended September 31, 2016 included a net amount of approximately $5.8 million associated with the accelerated 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. In September 2016, 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 was equal to or exceeded $15.00 per share and the recipients remained in 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 with the following assumptions: Three Months Ended Nine Months Ended Stock options 2017 2016 2017 2016 Weighted-average expected term (years) 6.0 5.9 6.0 5.8 Weighted-average volatility 65% 65% 65% 65% Risk-free interest rate 2.02% 1.01%-1.15% 2.02%-2.08% 1.01%-1.76% Expected dividends —% —% —% —% Stock appreciation units Weighted-average expected term (years) 2.2 2.6 2.3 2.8 Weighted-average volatility 71% 62% 71% 62% Risk-free interest rate 1.03%-1.55% 0.45%-0.71% 0.51%-1.55% 0.45%-1.47% Expected dividends —% —% —% —% ESPP Weighted-average expected term (years) 0 0 0.67 0.70 Weighted-average volatility —% —% 55% 70% Risk-free interest rate —% —% 0.45%-0.91% 0.08%-0.39% Expected dividends —% —% —% —% Stock Options and Restricted Stock Units (RSUs) The following table summarizes the Company’s stock option and RSU activity during the nine months ended September 30, 2017 : Stock Options Restricted Stock Units Number of Shares Weighted Average Exercise Price Number of Units Weighted Average Grant Date Fair Value Balance as of December 31, 2016 4,301,340 $ 5.18 2,089,473 $ 10.15 Granted 502,746 7.37 1,351,071 7.91 Exercised/Converted (515,988 ) 3.80 (789,123 ) 9.40 Cancelled/Forfeited (61,106 ) 8.71 (147,783 ) 10.50 Balance as of September 30, 2017 4,226,992 $ 5.56 2,503,638 $ 9.15 Stock appreciation units SAUs are liability classified share-based awards. The Company did not grant any SAUs during the three and nine months ended September 30, 2017 or 2016 . As of September 30, 2017 and December 31, 2016 , there were 259,704 and 286,768 SAUs outstanding, respectively, and related SAU liabilities were $0.7 million and $2.0 million , respectively. Employee Stock Purchase Plan (“ESPP”) As of September 30, 2017 , there was $0.1 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 | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The income tax (provision) benefit for income taxes in the periods presented is based upon the income (loss) before income taxes (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Income tax (provision) benefit 1,195 (804 ) 1,813 (2,471 ) The Company’s income tax (provision) benefit in the three and nine months ended September 30, 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 in China 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 and nine months ended September 30, 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 September 30, 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 . |
Basis of presentation and sig21
Basis of presentation and significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The condensed consolidated financial statements of NeoPhotonics Corporation (“NeoPhotonics” or the “Company”) as of September 30, 2017 and for the three and nine months ended September 30, 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 and nine months ended September 30, 2017 are not necessarily indicative of the results expected for the entire fiscal year. All intercompany accounts and transactions have been eliminated. |
Going Concern | Going Concern Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, requires an entity to disclose information about its potential inability to continue as a going concern when conditions and events indicate that it is probable that the entity may be unable to meet its obligations as they become due within one year. Management has assessed the Company’s ability to continue as a going concern within one year of the filing date of this Quarterly Report on Form 10-Q with the SEC in November 2017. The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of September 30, 2017 , the Company’s working capital was $118.2 million , including available cash, cash equivalents, short-term investments and restricted cash of approximately $73.7 million . In the first nine months of 2017, the Company had operating losses of $40.5 million and negative cash flows from operations of $41.2 million . It had an accumulated deficit of approximately $337.7 million as of September 30, 2017 . The Company's operating results and cash flows during the first nine months of 2017 have been negatively affected by reduced demand in China stemming from delayed provincial deployments and a buildup of inventory at one or more of our leading customers, which is expected to continue into early 2018. In response, the Company implemented restructuring plans in May and September 2017 that included a reduction in force and consolidation of facilities, which are expected to reduce quarterly expenses by approximately $2.6 million when fully realized in the first quarter of 2018. The Company has also reduced or delayed certain product development projects and capital expenditures, aggressively pursued collections and continued to closely manage production and inventory levels. In September 2017, the Company entered into a revolving line of credit agreement with Wells Fargo Bank, National Association ("Wells Fargo") which provides for borrowings under an accounts receivable based formula up to a maximum of $50.0 million . At September 30, 2017, $30.0 million was outstanding under this line, of which $20.0 million was used to pay the amount due under the Comerica facility. The remaining borrowing capacity at September 30, 2017 was $19.8 million , of which $5.0 million is required to be maintained as unused borrowing capacity. Borrowings under the Wells Fargo line are not due until June 30, 2022 as long as the borrowing base is not less than the outstanding amount (See Note 8). The Company also has approximately $21.6 million available for short-term borrowings under two line of credit agreements in with Pudong Bank in China that expire in July 2019. A third, $39.2 million line of credit agreement with CITIC Bank in China expired in September 2017 and the Company is currently discussing a potential renewal of the line with the bank. As of September 30, 2017, $17.0 million is outstanding under the CITIC Bank line, which is due on January 2, 2018. If the Company is not successful in renewing the CITIC bank line, its intention is to repay the $17.0 million using the amount available under its other existing lines of credit available in China. Additionally, the Company has $5.7 million of current portion of long-term debt as of September 30, 2017 , which it plans to pay out of its existing available cash. The Company currently believes it will have sufficient resources to fund its currently planned operations and expenditures over the next twelve months without additional financing or other actions. In addition, the Company believes there are a number of ongoing and potential actions that may further strengthen its projected cash and projected financial position. The Company operates in an industry that makes its prospects difficult to evaluate with certainty. Future declines in China market demand or other changes to the Company’s forecasts could adversely affect the Company’s results of operations, financial position and cash flows. As a result, the Company may need to raise additional debt or equity capital to fund its operations. Any additional debt arrangements may likely require regular interest and principal payments which could adversely affect the Company’s operations. There can be no assurance that additional debt or equity capital will be available on acceptable terms, or at all. The accompanying unaudited condensed financial statements do not include any adjustments that may result from the outcome of these uncertainties. |
Certain Significant Risks And Uncertainties | 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 | Concentration In the three months ended September 30, 2017 , Huawei Technologies Co. Ltd. and their affiliate HiSilicon Technologies (together with Huawei Technologies Co. Ltd., "Huawei"), Ciena Corporation ("Ciena") and Fiberhome Technologies Co, Ltd ("Fiberhome") accounted for approximately 39% , 14% and 11% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 79% of the Company’s total revenue. In the three months ended September 30, 2016 , Huawei and Ciena accounted for approximately 48% and 15% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 79% of the Company’s total revenue. In the nine months ended September 30, 2017 , Huawei and Ciena accounted for 39% and 16% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 76% of its total revenue. In the nine months ended September 30, 2016 , Huawei and Ciena accounted for 49% and 15% of the Company’s total revenue, respectively, and the Company’s top five customers represented approximately 79% of its total revenue. As of September 30, 2017 , two customers accounted for approximately 45% and 10% 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 | 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. |
Recent Accounting Standards Update Adopted and Not Yet Effective | Accounting Standards Update Recently Adopted Effective January 1, 2017, the Company adopted ASU 2016-9, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-9”). ASU 2016-9 simplifies certain aspects of the accounting for shared-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. It eliminates the requirement to delay the recognition of excess tax benefits until current taxes payable are reduced. 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 in the statements of cash flows prospectively and elected to continue to account for estimated forfeitures over the vesting period of the share-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 inventories “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. Effective December 31, 2016, the Company adopted ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. (“ASU 2014-15”). Under the new standard, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. This ASU requires management to perform an analysis of the Company’s ability to continue as a going concern as of the issue date of the financial statements. See above – Basis of Presentation and Significant Accounting Policies for the discussion of the Company’s ability to continue as a going concern. There have been no other changes in the Company’s significant accounting policies in the nine months ended September 30, 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 Standards Update Not Yet Effective In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-9, Compensation — Stock Compensation (718)—Scope of Modification Accounting (ASU 2017-9”). This guidance redefines which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting for a share-based payment. ASU 2017-9 is effective for interim and annual periods after December 15, 2017 and early adoption is permitted in any interim period. The Company has not yet determined whether it will elect early adoption and has determined that the adoption of this standard will no t have a significant impact on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU No. 2017-7, Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-7”). This guidance revises the presentation of employer-sponsored defined benefit pension and other postretirement plans for the net periodic benefit cost in the statement of operations and requires that the service cost component of net periodic benefit be presented in the same income statement line items as other employee compensation costs for services rendered during the period. The other components of the net benefit costs are required to be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. This guidance allows only the service cost component of net periodic benefit costs to be eligible for capitalization. ASU 2017-7 is effective for interim and annual periods after December 15, 2018 and early adoption is permitted as of the beginning of an annual reporting period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-4, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-4”). 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 2017-4 is effective prospectively for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-1”). This standard provides a framework in determining when a set of assets and activities is a business. ASU 2017-1 is effective for interim and annual periods beginning after December 15, 2017 on a prospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. 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 the 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 the 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 date practicable if retrospective application is impracticable. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. 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 the adoption on its consolidated financial statements and related disclosure. In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) (“ASU 2016-2”). ASU 2016-2 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 the adoption on its consolidated financial statements and related disclosure. In January 2016, the FASB issued ASU 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-1”). ASU 2016-1 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 adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers (“ASU 2014-9”). 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. ASU 2014-9 is required to be adopted, using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-9; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-9 recognized at the date of initial application and providing certain additional disclosures. 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. The Company will adopt this standard in the first quarter of 2018. The Company is in the process of assessing the impact that implementation of this new standard will have on its consolidated financial statements, including evaluation of the disclosure requirements. Although its evaluation is ongoing, the Company currently believes that the impact will not be significant, as most revenue will continue to be recognized at a point-in-time when control transfers which is similar to the current revenue recognition model. The Company will continue to assess the impact, including potential changes to its accounting policies, business processes, systems and internal controls over financial reporting and its current assessment is subject to change. |
Net loss per share (Tables)
Net loss per share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income per Share | The following table sets forth the computation of the basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator: Net loss $ (18,187 ) $ (7,187 ) $ (39,050 ) $ (2,201 ) Denominator: Weighted average shares used to compute per share amount: Basic 43,790 42,038 43,212 41,589 Dilutive effect of equity awards — — — — Diluted 43,790 42,038 43,212 41,589 Basic net loss per share $ (0.42 ) $ (0.17 ) $ (0.90 ) $ (0.05 ) Diluted net loss per share $ (0.42 ) $ (0.17 ) $ (0.90 ) $ (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 outstanding employee stock options and restricted stock units as well as the shares expected to be issued under its employee stock purchase plan from the computation of diluted net loss per share, as their effect would have been antidilutive (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Employee stock options 4,227 4,344 4,227 4,344 Restricted stock units 2,504 2,044 2,504 2,044 Employee stock purchase plan 245 151 245 151 6,976 6,539 6,976 6,539 |
Cash, cash equivalents, short23
Cash, cash equivalents, short-term investments, and restricted cash (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
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): September 30, December 31, Cash and cash equivalents: Cash $ 53,716 $ 58,691 Cash equivalents 4,812 23,809 Cash and cash equivalents $ 58,528 $ 82,500 Short-term investments $ 12,281 $ 19,015 Restricted cash $ 2,917 $ 4,085 |
Summary of Unrealized Gains and Losses Related to Cash Equivalents and Investments in Marketable Securities | 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 September 30, 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 funds $ 11,530 $ — $ — $ 11,530 $ 199 $ — $ — $ 199 Money market accounts 4,812 — — 4,812 23,809 — — 23,809 Corporate debt securities — — — — 9,438 4 (3 ) 9,439 Government agency securities — — — — 3,767 — (10 ) 3,757 U.S. government securities 753 — (2 ) 751 5,008 — (10 ) 4,998 Sovereign government bonds — — — — 622 — — 622 Total $ 17,095 $ — $ (2 ) $ 17,093 $ 42,843 $ 4 $ (23 ) $ 42,824 Reported as: Cash equivalents $ 4,812 $ — $ — $ 4,812 $ 23,809 $ — $ — $ 23,809 Short-term investments 12,283 — (2 ) 12,281 19,034 4 (23 ) 19,015 Total $ 17,095 $ — $ (2 ) $ 17,093 $ 42,843 $ 4 $ (23 ) $ 42,824 |
Maturities of Marketable Securities | As of September 30, 2017 and December 31, 2016 , maturities of marketable securities were as follows (in thousands): September 30, December 31, Less than 1 year $ 17,093 $ 36,054 Due in 1 to 2 years — 6,468 Due in 3 to 5 years — 302 Total $ 17,093 $ 42,824 |
Fair value disclosures (Tables)
Fair value disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
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 September 30, 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 $ 11,530 $ — $ — $ 11,530 $ 199 $ — $ — $ 199 U.S. government securities 751 — — 751 4,998 — — 4,998 Money market accounts — 4,812 — 4,812 — 23,809 — 23,809 Corporate debt securities — — — — — 9,439 — 9,439 Government agency securities — — — — — 3,757 — 3,757 Sovereign government bonds — — — — — 622 — 622 Total $ 12,281 $ 4,812 $ — $ 17,093 $ 5,197 $ 37,627 $ — $ 42,824 Foreign currency forward contracts* $ — $ — $ — $ — $ — $ — $ — $ — Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 927 $ — $ — $ 927 $ 622 $ — $ — $ 622 ________________________________________________________ *The fair value of the Company’s foreign currency forward contract was immaterial as of September 30, 2017 and December 31, 2016. |
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 September 30, 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 |
Balance sheet components (Table
Balance sheet components (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, Net | Accounts receivable, net consists of the following (in thousands): September 30, 2017 December 31, 2016 Accounts receivable $ 65,980 $ 78,143 Trade notes receivable 1,148 2,892 Allowance for doubtful accounts (125 ) (425 ) $ 67,003 $ 80,610 |
Inventories, net | Inventories, net consist of the following (in thousands): September 30, 2017 December 31, 2016 Raw materials $ 38,617 $ 23,348 Work in process 14,746 10,996 Finished goods (1) 29,446 13,893 $ 82,809 $ 48,237 ________________________________________________________ (1) Finished goods inventory at customer vendor managed inventory locations was $8.7 million and $8.3 million as of September 30, 2017 and December 31, 2016 , respectively. |
Prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2017 December 31, 2016 Prepaid taxes and taxes receivable $ 15,234 $ 16,102 Transition services agreement receivable (Note 5) 13,006 — Deposits and other prepaid expenses 4,162 3,571 Other receivable 2,166 2,723 $ 34,568 $ 22,396 |
Purchased intangible assets | Purchased intangible assets consist of the following (in thousands): September 30, 2017 December 31, 2016 Gross Assets Accumulated Amortization Net Assets Gross Accumulated Net Technology and patents $ 37,415 $ (34,458 ) $ 2,957 $ 36,918 $ (33,316 ) $ 3,602 Customer relationships 15,302 (14,595 ) 707 15,039 (13,990 ) 1,049 Leasehold interest 1,280 (350 ) 930 1,226 (315 ) 911 $ 53,997 $ (49,403 ) $ 4,594 $ 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 Nine Months Ended 2017 2016 2017 2016 Cost of goods sold $ 202 $ 853 $ 667 $ 2,542 Operating expenses 119 462 355 1,375 Total $ 321 $ 1,315 $ 1,022 $ 3,917 |
Estimated future amortization expense of purchased intangible assets | The estimated future amortization expense of purchased intangible assets as of September 30, 2017 , is as follows (in thousands): 2017 (remaining three months) $ 321 2018 1,209 2019 807 2020 689 2021 689 Thereafter 879 $ 4,594 |
Accrued and other current liabilities | Accrued and other current liabilities consist of the following (in thousands): September 30, 2017 December 31, 2016 Transition services agreement payables (Note 5) $ 12,603 $ — Employee-related 12,103 18,654 Asset sale related contingent liabilities (Note 5) 6,977 — Accrued warranty 1,402 678 Deferred revenue, current 809 956 Income and other taxes payable 305 3,956 Rusnano payment derivative — 389 Other accrued expenses 10,544 5,992 $ 44,743 $ 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 Nine Months Ended 2017 2016 2017 2016 Beginning balance $ 528 $ 669 $ 678 $ 1,175 Warranty accruals 1,047 126 1,019 25 Settlements (173 ) (110 ) (295 ) (515 ) Ending balance $ 1,402 $ 685 $ 1,402 $ 685 |
Other noncurrent liabilities | Other noncurrent liabilities consist of the following (in thousands): September 30, 2017 December 31, 2016 Pension and other employee-related $ 5,535 $ 5,045 Deferred rent 2,856 1,509 Deferred revenue 916 136 Government grant 743 1,048 Rusnano payment derivative 389 — Deferred income tax liabilities 64 46 Asset retirement obligations and other 4,456 1,155 $ 14,959 $ 8,939 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring activities for the nine months ended September 30, 2017 were as follows (in thousands): Employee Severance Facilities Consolidation Asset-Related Total Restructuring obligations December 31, 2016 $ — $ — $ — $ — Charges 1,790 1,930 394 4,114 Cash payments (902 ) — — (902 ) Non-cash settlements and other — (149 ) (323 ) (472 ) Restructuring obligations September 30, 2017 $ 888 $ 1,781 $ 71 $ 2,740 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
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): September 30, 2017 December 31, 2016 Carrying Amount Interest Rate Carrying Interest Note payable to financial institution $ 17,000 4.06 % $ — — Notes payable to suppliers 2,630 — 6,390 Short-term borrowing under Comerica Bank Credit Facility — — 23,800 3.37 % Total notes payable and short-term borrowing $ 19,630 $ 30,190 Long-term debt, current and non-current: Borrowing under Wells Fargo Credit Facility $ 30,018 3.16 % $ — Mitsubishi Bank loans 17,168 1.44 % 11,253 1.43 % Unaccreted discount and issuance costs within current portion of long-term debt (103 ) (108 ) Unaccreted discount and issuance costs within long-term debt, net of current portion (314 ) (183 ) Total long-term debt, net of unaccreted discount and issuance costs $ 46,769 $ 10,962 Reported as: Current portion of long-term debt $ 5,740 $ 747 Long-term debt, net of current portion 41,029 10,215 Total long-term debt, net of unaccreted discount and issuance costs $ 46,769 $ 10,962 |
Maturities of Long-term Debt | As of September 30, 2017 , maturities of total long-term debt were as follows (in thousands): 2017 (remaining three months) $ 222 2018 6,099 2019 1,911 2020 1,911 2021 1,911 Thereafter 35,132 $ 47,186 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
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 as of December 31, 2016 $ (8,235 ) $ (19 ) $ (147 ) $ (8,401 ) Other comprehensive income, net of taxes of zero and reclassifications 6,090 17 — 6,107 Balance as of September 30, 2017 $ (2,145 ) $ (2 ) $ (147 ) $ (2,294 ) |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Based Compensation Expense | The following table summarizes the stock-based compensation expense recognized in the three and nine months ended September 30, 2017 and 2016 (in thousands): September 30, 2017 September 30, 2016 2017 2016 2017 2016 Cost of goods sold $ 340 $ 297 $ 811 $ 1,605 Research and development 606 2,981 1,779 4,508 Sales and marketing 393 2,352 1,170 3,604 General and administrative 595 3,146 1,932 4,728 $ 1,934 $ 8,776 $ 5,692 $ 14,445 |
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 with the following assumptions: Three Months Ended Nine Months Ended Stock options 2017 2016 2017 2016 Weighted-average expected term (years) 6.0 5.9 6.0 5.8 Weighted-average volatility 65% 65% 65% 65% Risk-free interest rate 2.02% 1.01%-1.15% 2.02%-2.08% 1.01%-1.76% Expected dividends —% —% —% —% Stock appreciation units Weighted-average expected term (years) 2.2 2.6 2.3 2.8 Weighted-average volatility 71% 62% 71% 62% Risk-free interest rate 1.03%-1.55% 0.45%-0.71% 0.51%-1.55% 0.45%-1.47% Expected dividends —% —% —% —% ESPP Weighted-average expected term (years) 0 0 0.67 0.70 Weighted-average volatility —% —% 55% 70% Risk-free interest rate —% —% 0.45%-0.91% 0.08%-0.39% 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 nine months ended September 30, 2017 : Stock Options Restricted Stock Units Number of Shares Weighted Average Exercise Price Number of Units Weighted Average Grant Date Fair Value Balance as of December 31, 2016 4,301,340 $ 5.18 2,089,473 $ 10.15 Granted 502,746 7.37 1,351,071 7.91 Exercised/Converted (515,988 ) 3.80 (789,123 ) 9.40 Cancelled/Forfeited (61,106 ) 8.71 (147,783 ) 10.50 Balance as of September 30, 2017 4,226,992 $ 5.56 2,503,638 $ 9.15 |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) before Income Taxes | The income tax (provision) benefit for income taxes in the periods presented is based upon the income (loss) before income taxes (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Income tax (provision) benefit 1,195 (804 ) 1,813 (2,471 ) |
Basis of presentation and sig31
Basis of presentation and significant accounting policies - (Details) ¥ in Millions | Jan. 02, 2018USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2017JPY (¥)debt_instrument | Sep. 30, 2017USD ($)debt_instrument | Jan. 01, 2017USD ($) |
Concentration Risk [Line Items] | |||||||||||
Working capital | $ 118,200,000 | ||||||||||
Cash, cash equivalents, short-term investments and restricted cash | 73,700,000 | ||||||||||
Operating losses | $ 18,883,000 | $ 6,393,000 | $ 40,458,000 | $ (1,175,000) | |||||||
Negative cash flows from operations | $ 41,211,000 | $ (26,717,000) | |||||||||
Accumulated deficit | $ 298,678,000 | 337,728,000 | |||||||||
Current portion of long-term debt | $ 747,000 | 5,740,000 | |||||||||
Line of Credit | China | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Unused part of credit facility | $ 21,600,000 | ||||||||||
Number of debt instruments | debt_instrument | 2 | 2 | |||||||||
Accounting Standards Update 2016-09 | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Previously unrecognized tax benefits | $ 8,600,000 | ||||||||||
Huawei Technologies | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration of credit risk | 39.00% | 48.00% | 39.00% | 49.00% | |||||||
Ciena Corporation | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration of credit risk | 14.00% | 15.00% | 16.00% | 15.00% | |||||||
Fiberhome Technologies | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration of credit risk | 11.00% | ||||||||||
Top Five Customers | Revenue | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration of credit risk | 79.00% | 79.00% | 76.00% | 79.00% | |||||||
Customer One | Accounts receivable | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration of credit risk | 45.00% | 42.00% | |||||||||
Customer Two | Accounts receivable | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration of credit risk | 10.00% | 12.00% | |||||||||
Customer three | Accounts receivable | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of concentration of credit risk | 12.00% | ||||||||||
Wells Fargo Bank, National Association | Revolving Credit Facility | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Credit facility, maximum borrowing amount | $ 50,000,000 | ||||||||||
Line of credit facility, outstanding | 30,000,000 | ||||||||||
CITIC Bank | Line of Credit | China | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Line of credit facility, outstanding | 17,000,000 | ||||||||||
Expired borrowing capacity | 39,200,000 | ||||||||||
Scenario, Forecast | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Decrease in expenses as a result of restructuring plan | $ 2,600,000 | ||||||||||
Scenario, Forecast | CITIC Bank | Line of Credit | China | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Repayments of lines of credit | $ 17,000,000 | ||||||||||
Comerica Bank Term Loan | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Repayments of lines of credit | $ 20,000,000 | ||||||||||
Wells Fargo Credit Facility | Line of Credit | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Credit facility, maximum borrowing amount | 50,000,000 | ||||||||||
Line of credit facility, outstanding | 30,000,000 | ||||||||||
Unused part of credit facility | 19,800,000 | ||||||||||
Minimum required unused borrowing capacity | 5,000,000 | ||||||||||
2017 Mitsubishi Bank Loan | Notes Payable to Banks | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Line of credit facility, outstanding | ¥ 690 | $ 6,100,000 |
Net loss per share - Computatio
Net 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net loss | $ (18,187) | $ (7,187) | $ (39,050) | $ (2,201) |
Weighted average shares used to compute per share amount: | ||||
Basic (in shares) | (43,790) | (42,038) | (43,212) | (41,589) |
Dilutive effect of equity awards (in shares) | 0 | 0 | 0 | 0 |
Diluted (in shares) | 43,790 | 42,038 | 43,212 | 41,589 |
Basic net loss per share (USD per share) | $ (0.42) | $ (0.17) | $ (0.90) | $ (0.05) |
Diluted net loss per share (USD per share) | $ (0.42) | $ (0.17) | $ (0.90) | $ (0.05) |
Net loss per share - Potentiall
Net 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 6,976 | 6,539 | 6,976 | 6,539 |
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 | 4,227 | 4,344 | 4,227 | 4,344 |
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 | 2,504 | 2,044 | 2,504 | 2,044 |
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 | 245 | 151 | 245 | 151 |
Cash, cash equivalents, short34
Cash, cash equivalents, short-term investments and restricted cash - Short term investments and restricted cash and investments (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents: | ||||
Cash | $ 53,716,000 | $ 58,691,000 | ||
Cash equivalents | 4,812,000 | 23,809,000 | ||
Cash and cash equivalents | 58,528,000 | 82,500,000 | $ 71,625,000 | $ 76,088,000 |
Short-term investments | 12,281,000 | 19,015,000 | ||
Restricted cash | $ 2,917,000 | $ 4,085,000 |
Cash, cash equivalents, short35
Cash, cash equivalents, short-term investments, and restricted cash - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)investment | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)investment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash | $ 2,917,000 | $ 2,917,000 | $ 4,085,000 | ||
Impairment losses on marketable securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of marketable securities in an unrealized loss position | investment | 0 | 0 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Cash, cash equivalents, short36
Cash, cash equivalents, short-term investments and restricted cash - Summary of unrealized gains and losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 17,095 | $ 42,843 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Loss | (2) | (23) |
Fair Value | 17,093 | 42,824 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,530 | 199 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 11,530 | 199 |
Money market accounts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,812 | 23,809 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 4,812 | 23,809 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 9,438 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Loss | 0 | (3) |
Fair Value | 0 | 9,439 |
Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 3,767 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | (10) |
Fair Value | 0 | 3,757 |
U.S. government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 753 | 5,008 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | (2) | (10) |
Fair Value | 751 | 4,998 |
Sovereign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 622 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 0 | 622 |
Cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,812 | 23,809 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 4,812 | 23,809 |
Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,283 | 19,034 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Loss | (2) | (23) |
Fair Value | $ 12,281 | $ 19,015 |
Cash, cash equivalents, short37
Cash, cash equivalents, short-term investments and restricted cash - Maturities of marketable securities and additional information (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Less than 1 year | $ 17,093,000 | $ 36,054,000 |
Due in 1 to 2 years | 0 | 6,468,000 |
Due in 3 to 5 years | 0 | 302,000 |
Total | $ 17,093,000 | $ 42,824,000 |
Fair value disclosures - Assets
Fair value disclosures - Assets and liabilities measured at fair value on recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | $ 17,093,000 | $ 42,824,000 |
Foreign currency forward contracts | 0 | 0 |
Rusnano payment derivative | 389,000 | 389,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 12,281,000 | 5,197,000 |
Foreign currency forward contracts | 0 | 0 |
Rusnano payment derivative | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 4,812,000 | 37,627,000 |
Foreign currency forward contracts | 0 | 0 |
Rusnano payment derivative | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Rusnano payment derivative | 389,000 | 389,000 |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 11,530,000 | 199,000 |
Money market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 11,530,000 | 199,000 |
Money market funds | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
U.S. government securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 751,000 | 4,998,000 |
U.S. government securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 751,000 | 4,998,000 |
U.S. government securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
U.S. government securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Money market accounts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 4,812,000 | 23,809,000 |
Money market accounts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Money market accounts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 4,812,000 | 23,809,000 |
Money market accounts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 9,439,000 |
Corporate debt securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 9,439,000 |
Corporate debt securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Government agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 3,757,000 |
Government agency securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Government agency securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 3,757,000 |
Government agency securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Sovereign government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 622,000 |
Sovereign government bonds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Sovereign government bonds | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 622,000 |
Sovereign government bonds | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents and short-term investments | 0 | 0 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mutual funds held in Rabbi Trust, recorded in other long-term assets | 927,000 | 622,000 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mutual funds held in Rabbi Trust, recorded in other long-term assets | 927,000 | 622,000 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mutual funds held in Rabbi Trust, recorded in other long-term assets | 0 | 0 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mutual funds held in Rabbi Trust, recorded in other long-term assets | $ 0 | $ 0 |
Fair value disclosures - Hedgin
Fair value disclosures - Hedging Program (Details) - Foreign exchange contracts $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Average maturities of monthly foreign exchange contracts | 1 month |
China, Yuan Renminbi | |
Notional value of derivatives related to economic hedges | $ 19.2 |
Fair value disclosures - Liabil
Fair value disclosures - Liabilities measured at fair value on non-recurring basis (Details) - Other current liabilities - Indemnification agreement - USD ($) $ in Millions | Sep. 30, 2017 | Mar. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent liability in connection with contingent indemnification commitments | $ 7 | |
Level 3 | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent liability in connection with contingent indemnification commitments | $ 6.7 |
Asset sale (Details)
Asset sale (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transition services agreement receivable (Note 5) | $ 13,006 | $ 13,006 | $ 0 | |||
Transition services agreement payables (Note 5) | 12,603 | 12,603 | 0 | |||
Assets held for sale | 0 | 0 | 13,953 | |||
Gain within operating income | 0 | $ 0 | 2,000 | $ 0 | ||
Property, plant and equipment | Indemnification agreement | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contingent liability | 200 | 200 | ||||
Other current liabilities | Indemnification agreement | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contingent liability | $ 7,000 | $ 7,000 | ||||
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 | 13,900 | |||||
Reclassification from assets held-for-sale | $ 3,400 | |||||
Assets sold | 12,800 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Inventories | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale, other | 13,100 | |||||
Assets sold | 12,100 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Property, plant and equipment | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale, other | $ 800 | |||||
Assets sold | 700 | |||||
APAT OE | 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 | |||||
Proceeds from post-closing transaction services fees under transition services agreement | 1,400 | |||||
Disposal group consideration adjustment | 21,600 | |||||
Consideration adjustment for potential indemnification claims | $ 10,000 |
Balance sheet components - Acco
Balance sheet components - Accounts receivable, net (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 65,980 | $ 78,143 |
Trade notes receivable | 1,148 | 2,892 |
Allowance for doubtful accounts | (125) | (425) |
Account and trade note receivables, net | $ 67,003 | $ 80,610 |
Balance sheet components - Inve
Balance sheet components - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 38,617 | $ 23,348 |
Work in process | 14,746 | 10,996 |
Finished goods | 29,446 | 13,893 |
Inventories | 82,809 | 48,237 |
Finished goods, at vendor managed inventory locations | $ 8,700 | $ 8,300 |
Balance sheet components - Prep
Balance sheet components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid taxes and taxes receivable | $ 15,234 | $ 16,102 |
Transition services agreement receivable (Note 5) | 13,006 | 0 |
Deposits and other prepaid expenses | 4,162 | 3,571 |
Other receivable | 2,166 | 2,723 |
Prepaid expenses and other current assets | $ 34,568 | $ 22,396 |
Balance sheet components - Purc
Balance sheet components - Purchased intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 53,997 | $ 53,183 |
Accumulated Amortization | (49,403) | (47,621) |
Net Assets | 4,594 | 5,562 |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 37,415 | 36,918 |
Accumulated Amortization | (34,458) | (33,316) |
Net Assets | 2,957 | 3,602 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 15,302 | 15,039 |
Accumulated Amortization | (14,595) | (13,990) |
Net Assets | 707 | 1,049 |
Leasehold interest | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 1,280 | 1,226 |
Accumulated Amortization | (350) | (315) |
Net Assets | $ 930 | $ 911 |
Balance sheet components - Amor
Balance sheet components - Amortization expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Cost of goods sold | $ 202 | $ 853 | $ 667 | $ 2,542 |
Operating expenses | 119 | 462 | 355 | 1,375 |
Total | $ 321 | $ 1,315 | $ 1,022 | $ 3,917 |
Balance sheet components - Esti
Balance sheet components - Estimated future amortization expense of purchased intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
2017 (remaining three months) | $ 321 | |
2,018 | 1,209 | |
2,019 | 807 | |
2,020 | 689 | |
2,021 | 689 | |
Thereafter | 879 | |
Net Assets | $ 4,594 | $ 5,562 |
Balance sheet components - Accr
Balance sheet components - Accrued and other current liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||||||
Transition services agreement payables (Note 5) | $ 12,603 | $ 0 | ||||
Employee-related | 12,103 | 18,654 | ||||
Asset sale related contingent liabilities (Note 5) | 6,977 | 0 | ||||
Accrued warranty | 1,402 | $ 528 | 678 | $ 685 | $ 669 | $ 1,175 |
Deferred revenue, current | 809 | 956 | ||||
Income and other taxes payable | 305 | 3,956 | ||||
Rusnano payment derivative | 0 | 389 | ||||
Other accrued expenses | 10,544 | 5,992 | ||||
Accrued and other current liabilities | $ 44,743 | $ 30,625 |
Balance sheet components - Warr
Balance sheet components - Warranty accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Beginning balance | $ 528 | $ 669 | $ 678 | $ 1,175 |
Warranty accruals | 1,047 | 126 | 1,019 | 25 |
Settlements | (173) | (110) | (295) | (515) |
Ending balance | $ 1,402 | $ 685 | $ 1,402 | $ 685 |
Balance sheet components - Othe
Balance sheet components - Other noncurrent liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Pension and other employee-related | $ 5,535 | $ 5,045 |
Deferred rent | 2,856 | 1,509 |
Deferred revenue | 916 | 136 |
Government grant | 743 | 1,048 |
Rusnano payment derivative | 389 | 0 |
Deferred income tax liabilities | 64 | 46 |
Asset retirement obligations and other | 4,456 | 1,155 |
Other noncurrent liabilities | $ 14,959 | $ 8,939 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | $ 3,100 | $ 4,114 | |
Write-down of inventories | 7,083 | $ 1,995 | |
Restructuring reserve recorded in accrued and other current liabilities | 1,700 | 1,700 | |
Restructuring reserve recorded in other noncurrent liabilities | 1,000 | 1,000 | |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 1,790 | ||
Expected remaning restructuring costs to be incurred | 700 | 700 | |
Operating Income (Loss) | |||
Restructuring Cost and Reserve [Line Items] | |||
Decrease in expenses as a result of restructuring plan | 2,000 | ||
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Decrease in expenses as a result of restructuring plan | $ 600 | ||
Write-down of inventories | $ 2,000 |
Restructuring - Reserve Rollfor
Restructuring - Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring obligations December 31, 2016 | $ 0 | |
Charges | $ 3,100 | 4,114 |
Cash payments | (902) | |
Non-cash settlements and other | (472) | |
Restructuring obligations September 30, 2017 | 2,740 | 2,740 |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring obligations December 31, 2016 | 0 | |
Charges | 1,790 | |
Cash payments | (902) | |
Non-cash settlements and other | 0 | |
Restructuring obligations September 30, 2017 | 888 | 888 |
Facilities Consolidation | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring obligations December 31, 2016 | 0 | |
Charges | 1,930 | |
Cash payments | 0 | |
Non-cash settlements and other | (149) | |
Restructuring obligations September 30, 2017 | 1,781 | 1,781 |
Asset-Related | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring obligations December 31, 2016 | 0 | |
Charges | 394 | |
Cash payments | 0 | |
Non-cash settlements and other | (323) | |
Restructuring obligations September 30, 2017 | $ 71 | $ 71 |
Debt - Components of Debt Oblig
Debt - Components of Debt Obligations and Weighted Average Interest Rate (Details) $ in Thousands, ¥ in Billions | Sep. 30, 2017JPY (¥) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Short-term debt | $ 19,630 | $ 30,190 | |
Unaccreted discount and issuance costs within current portion of long-term debt | (103) | (108) | |
Unaccreted discount and issuance costs within long-term debt, net of current portion | (314) | (183) | |
Total long-term debt, net of unaccreted discount and issuance costs | 46,769 | 10,962 | |
Current portion of long-term debt | 5,740 | 747 | |
Long-term debt, net of current portion | 41,029 | 10,215 | |
Line of Credit | Wells Fargo Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 30,018 | 0 | |
Weighted average interest rate | 3.16% | 3.16% | |
Notes Payable to Banks | Mitsubishi Bank Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 17,168 | $ 11,253 | |
Total long-term debt, net of unaccreted discount and issuance costs | ¥ | ¥ 1.2 | ||
Weighted average interest rate | 1.44% | 1.44% | 1.43% |
Notes Payable to Banks | Notes Payable CITIC Bank | |||
Debt Instrument [Line Items] | |||
Short-term debt | $ 17,000 | $ 0 | |
Weighted average interest rate | 4.06% | 4.06% | |
Notes payable to suppliers | Loans With Suppliers | |||
Debt Instrument [Line Items] | |||
Short-term debt | $ 2,630 | 6,390 | |
Line of Credit | Amended Comerica Bank Credit Facility | |||
Debt Instrument [Line Items] | |||
Short-term debt | $ 0 | $ 23,800 | |
Weighted average interest rate | 3.37% |
Debt - Narrative (Details)
Debt - Narrative (Details) ¥ in Millions | Feb. 25, 2015JPY (¥) | Feb. 25, 2015USD ($) | Sep. 30, 2017USD ($) | Jul. 31, 2017USD ($) | Mar. 31, 2017JPY (¥) | Sep. 30, 2017JPY (¥)debt_instrument | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)debt_instrument | Sep. 30, 2017CNY (¥)debt_instrument | Sep. 30, 2017USD ($)debt_instrument | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Feb. 25, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Short-term debt | $ 30,190,000 | $ 19,630,000 | ||||||||||||
Repayment of notes payable | $ 9,789,000 | $ 14,069,000 | ||||||||||||
Long-term debt | $ 10,962,000 | 46,769,000 | ||||||||||||
Wells Fargo Credit Facility | Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, outstanding | 30,000,000 | |||||||||||||
Unused part of credit facility | 19,800,000 | |||||||||||||
Minimum required unused borrowing capacity | 5,000,000 | |||||||||||||
Credit facility, maximum borrowing amount | 50,000,000 | |||||||||||||
Line of credit fair value outstanding | 30,000,000 | |||||||||||||
Cash balance for borrowing | 100.00% | |||||||||||||
Cash balance max borrowing | $ 15,000,000 | |||||||||||||
Line of credit facility increase | 25,000,000 | |||||||||||||
Repayment of notes payable | $ 20,000,000 | |||||||||||||
Line of credit facility, collateral | 20 | |||||||||||||
Unused borrowing capacity | $ 5,000,000 | |||||||||||||
Weighted average interest rate | 3.16% | 3.16% | 3.16% | |||||||||||
Wells Fargo Credit Facility | Line of Credit | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum Revolver Accounts Receivable | 80.00% | |||||||||||||
Wells Fargo Credit Facility | Line of Credit | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum Revolver Accounts Receivable | 85.00% | |||||||||||||
Wells Fargo Credit Facility | Credit Facility Base Rate | Line of Credit | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.50% | |||||||||||||
Wells Fargo Credit Facility | Credit Facility Base Rate | Line of Credit | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.75% | |||||||||||||
Wells Fargo Credit Facility | Prime Rate | Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Commitment Fee | 0.25% | |||||||||||||
Wells Fargo Credit Facility | Prime Rate | Line of Credit | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 0.50% | |||||||||||||
Wells Fargo Credit Facility | Prime Rate | Line of Credit | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 0.75% | |||||||||||||
Mitsubishi Bank Term Loan A | Notes Payable to Banks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, aggregate principal amount | ¥ 500,000,000 | $ 4,400,000 | ||||||||||||
Long-term debt | $ 4,400,000 | |||||||||||||
Mitsubishi Bank Term Loan B | Notes Payable to Banks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, aggregate principal amount | 1,000,000,000 | $ 8,900,000 | ||||||||||||
Debt, periodic principal payments | ¥ | 8,333,000 | |||||||||||||
Debt, lump sum payment on the maturity date | ¥ | ¥ 8,373,000 | |||||||||||||
Long-term debt | $ 6,600,000 | |||||||||||||
Mitsubishi Bank Term Loan B | Tokyo interbank offer rate | Notes Payable to Banks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.40% | 1.40% | ||||||||||||
Mitsubishi Bank Loans | Notes Payable to Banks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted average interest rate | 1.44% | 1.43% | 1.44% | 1.44% | ||||||||||
Loan structuring fee including consumption tax | ¥ 40,500,000 | $ 400,000 | ||||||||||||
Unamortized debt issuance costs | ¥ 46,900,000 | $ 400,000 | ||||||||||||
Long-term debt | ¥ | 1,200,000,000 | |||||||||||||
Mitsubishi Bank Loans | Tokyo interbank offer rate | Notes Payable to Banks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.40% | 1.40% | ||||||||||||
2017 Mitsubishi Bank Loan | Notes Payable to Banks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, term | 72 months | |||||||||||||
Line of credit facility, outstanding | ¥ 690,000,000 | 6,100,000 | ||||||||||||
Debt, aggregate principal amount | ¥ 690,000,000 | $ 6,100,000 | ||||||||||||
2017 Mitsubishi Bank Loan | Tokyo interbank offer rate | Notes Payable to Banks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.00% | |||||||||||||
Notes payable to suppliers | Loans With Suppliers | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term debt | $ 6,390,000 | 2,630,000 | ||||||||||||
Notes payable to suppliers | Loans With Suppliers | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, term | 3 months | |||||||||||||
Notes payable to suppliers | Loans With Suppliers | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, term | 6 months | |||||||||||||
Line of Credit | Capital Expenditures Credit Facility Expires April 30, 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility, maximum borrowing amount | 30,000,000 | |||||||||||||
Line of Credit | Amended Comerica Bank Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Current borrowing capacity | $ 17,000,000 | |||||||||||||
Short-term debt | 23,800,000 | 0 | ||||||||||||
Maximum indebtedness under debt covenant | $ 20,000,000 | |||||||||||||
Line of credit fair value outstanding | $ 23,800,000 | |||||||||||||
Weighted average interest rate | 3.37% | |||||||||||||
Line of Credit | Amended Comerica Bank Credit Facility | Credit Facility Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.75% | |||||||||||||
Line of Credit | Amended Comerica Bank Credit Facility | Libor Plus Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 2.75% | |||||||||||||
Line of Credit | Amended Comerica Bank Credit Facility | Federal funds effective rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.00% | |||||||||||||
Line of Credit | Amended Comerica Bank Credit Facility | Daily adjusting LIBOR rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, basis spread | 1.00% | |||||||||||||
Line of credit facility, interest rate | 3.37% | |||||||||||||
Loans Payable | First Credit Facility Expires July 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Current borrowing capacity | ¥ 120 | 18,000,000 | ||||||||||||
Loans Payable | Second Line Of Credit, Expires July 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Current borrowing capacity | 30 | 4,500,000 | ||||||||||||
Bankers Acceptance | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Restricted cash and investments, current | $ 2,100,000 | 800,000 | ||||||||||||
Bankers Acceptance | Loans With Suppliers | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term debt | 6,400,000 | 2,600,000 | ||||||||||||
Bankers Acceptance | First Credit Facility Expires July 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Current borrowing capacity | 171.4 | 25,800,000 | ||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | |||||||||||||
Bankers Acceptance | Second Line Of Credit, Expires July 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | |||||||||||||
Short Term Loans | Second Line Of Credit, Expires July 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Current borrowing capacity | ¥ 42.9 | 6,400,000 | ||||||||||||
Notes Payable to Banks | Notes Payable CITIC Bank | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from Lines of Credit | $ 17,000,000 | |||||||||||||
Debt instrument, basis spread | 2.55% | |||||||||||||
Short-term debt | $ 0 | $ 17,000,000 | ||||||||||||
Weighted average interest rate | 4.06% | 4.06% | 4.06% | |||||||||||
Letter of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of debt instruments | debt_instrument | 3 | |||||||||||||
Letter of Credit | Loans With Suppliers | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | |||||||||||||
Short-term line of credit facility | $ 1,600,000 | |||||||||||||
China | Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of debt instruments | debt_instrument | 2 | 2 | 2 | |||||||||||
Unused part of credit facility | $ 21,600,000 |
Debt - Maturities of Long-Term
Debt - Maturities of Long-Term debt (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2017 (remaining three months) | $ 222 |
2,018 | 6,099 |
2,019 | 1,911 |
2,020 | 1,911 |
2,021 | 1,911 |
Thereafter | 35,132 |
Total long-term debt, current and non-current | $ 47,186 |
Japan pension plans - (Details)
Japan pension plans - (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Compensation and Retirement Disclosure [Abstract] | ||
Pension liability | $ 4.7 | $ 4.8 |
Pension liability included in accrued and other current liabilities | $ 0.1 | $ 0.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ft² in Thousands, € in Millions, ¥ in Millions | Oct. 25, 2017CNY (¥) | Oct. 25, 2017USD ($) | Jun. 16, 2017USD ($) | Jun. 13, 2017USD ($)ft² | Dec. 27, 2016USD ($) | Mar. 23, 2015USD ($) | Mar. 23, 2015EUR (€) | Sep. 16, 2013USD ($) | Apr. 30, 2017USD ($) | Sep. 30, 2016ft² | Aug. 31, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2010claimdefendant | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2012USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Number of defendants | defendant | 4 | ||||||||||||||||||||
Operating leases, future minimum payments due | $ 32,400,000 | $ 32,400,000 | |||||||||||||||||||
Operating leases, future minimum, sublease receipts | 800,000 | 800,000 | |||||||||||||||||||
Rent expense | 1,300,000 | $ 600,000 | $ 3,500,000 | $ 1,700,000 | |||||||||||||||||
Area of office lease | ft² | 39 | 64 | |||||||||||||||||||
Office lease term, months | 123 months | 129 months | |||||||||||||||||||
Asset Retirement Obligations, Noncurrent | 4,456,000 | $ 4,456,000 | $ 1,155,000 | ||||||||||||||||||
Office and laboratory lease period free of charge | 9 months | ||||||||||||||||||||
Asset Retirement Obligation | 3,100,000 | $ 3,100,000 | |||||||||||||||||||
Amount of contribution | 21,000,000 | ||||||||||||||||||||
Expected costs to transfer product line | $ 100,000 | ||||||||||||||||||||
Penalty payment derivative | 400,000 | 400,000 | $ 400,000 | ||||||||||||||||||
Rusnano | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Other non-current liability | 0 | 0 | |||||||||||||||||||
Minimum | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Office lease, monthly rental rate | $ 41,388 | 144,000 | |||||||||||||||||||
Maximum | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Office lease, monthly rental rate | $ 72,525 | 194,000 | |||||||||||||||||||
Embedded derivative financial instruments | Maximum | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Other non-current liability | $ 5,000,000 | ||||||||||||||||||||
Finisar Corp | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Pending claims | claim | 2 | ||||||||||||||||||||
Lestina International Ltd. litigation | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Damages sought, value | $ 3,000,000 | ||||||||||||||||||||
Laser 2000 case | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Payment for legal settlement | $ 250,000 | ||||||||||||||||||||
Laser 2000 case | Pending litigation | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Partial settlement of claims | $ 492,000 | ||||||||||||||||||||
Accrual for estimated net litigation expense | $ 1,100,000 | € 1 | |||||||||||||||||||
Litigation liability accrued | $ 300,000 | ||||||||||||||||||||
APAT Arbitration | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Damages sought, value | $ 1,500,000 | ||||||||||||||||||||
Indemnification agreement | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Payment for legal settlement | 0 | ||||||||||||||||||||
Lease termination | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Asset Retirement Obligations, Noncurrent | 700,000 | 700,000 | |||||||||||||||||||
Performance guarantee | Private Placement | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Other non-current liability | $ 9,000,000 | $ 9,000,000 | $ 30,000,000 | ||||||||||||||||||
Subsequent Event | APAT Arbitration | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Damages awarded to company | ¥ 0.7 | $ 100,000 | |||||||||||||||||||
Scenario, Forecast | Russian federation | |||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||||||
Exit fees for future | $ 2,000,000 |
Stockholders' equity - Narrativ
Stockholders' equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||
Reclassified out of accumulated other comprehensive loss for realized gains or losses on available for sale securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Accumulated deficit subject to restriction | $ 8.7 | ||||
Minimum | |||||
Class of Stock [Line Items] | |||||
Accumulated profits | 10.00% | ||||
Employee stock options | |||||
Class of Stock [Line Items] | |||||
Common stock reserved for future issuance (in shares) | 7,464,041 | 7,464,041 | |||
Employee stock purchase plan | |||||
Class of Stock [Line Items] | |||||
Common stock reserved for future issuance (in shares) | 426,840 | 426,840 |
Stockholders' equity - Accumula
Stockholders' equity - Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2016 | $ 225,405,000 | |||
Other comprehensive income, net of taxes of zero and reclassifications | $ 2,178,000 | $ (22,000) | 6,107,000 | $ 325,000 |
Balance as of September 30, 2017 | 202,117,000 | 202,117,000 | ||
Other comprehensive income, tax | 0 | |||
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2016 | (8,401,000) | |||
Balance as of September 30, 2017 | (2,294,000) | (2,294,000) | ||
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2016 | (8,235,000) | |||
Other comprehensive income, net of taxes of zero and reclassifications | 6,090,000 | |||
Balance as of September 30, 2017 | (2,145,000) | (2,145,000) | ||
Unrealized Gain (Loss) on Available-For-Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2016 | (19,000) | |||
Other comprehensive income, net of taxes of zero and reclassifications | 17,000 | |||
Balance as of September 30, 2017 | (2,000) | (2,000) | ||
Defined Benefit Pension Plan Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2016 | (147,000) | |||
Other comprehensive income, net of taxes of zero and reclassifications | 0 | |||
Balance as of September 30, 2017 | $ (147,000) | $ (147,000) |
Stock-based compensation - Summ
Stock-based compensation - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | $ 1,934 | $ 8,776 | $ 5,692 | $ 14,445 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | 340 | 297 | 811 | 1,605 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | 606 | 2,981 | 1,779 | 4,508 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | 393 | 2,352 | 1,170 | 3,604 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation | $ 595 | $ 3,146 | $ 1,932 | $ 4,728 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock compensation expense due to accelerated vesting | $ 5.8 | |||||
Stock Appreciation Units (SAUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, accelerated vesting (shares) | 1,100,000 | |||||
Awards granted in the period (in shares) | 0 | 0 | 0 | 0 | ||
Shares outstanding (in shares) | 259,704 | 259,704 | 286,768 | |||
SAU-related liabilities | $ 0.7 | $ 0.7 | $ 2 | |||
Market based awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, accelerated vesting (shares) | 200,000 | |||||
Market based awards vesting, threshold consecutive trading days | 20 days | |||||
Share price (USD per share) | $ 15 | $ 15 | $ 15 | |||
Employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense | $ 0.1 | $ 0.1 |
Stock-based compensation - Esti
Stock-based compensation - Estimated fair vale of stock-based awards (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average expected term (years) | 6 years | 5 years 10 months 24 days | 6 years | 5 years 9 months 18 days |
Weighted-average volatility | 65.00% | 65.00% | 65.00% | 65.00% |
Risk-free interest rate | 2.02% | |||
Risk-free interest rate minimum | 1.01% | 2.02% | 1.01% | |
Risk-free interest rate maximum | 1.15% | 2.08% | 1.76% | |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Stock Appreciation Units (SAUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average expected term (years) | 2 years 2 months 12 days | 2 years 7 months 6 days | 2 years 3 months 18 days | 2 years 9 months 18 days |
Weighted-average volatility | 71.00% | 62.00% | 71.00% | 62.00% |
Risk-free interest rate minimum | 1.03% | 0.45% | 0.51% | 0.45% |
Risk-free interest rate maximum | 1.55% | 0.71% | 1.55% | 1.47% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average expected term (years) | 0 years | 0 years | 8 months 1 day | 8 months 12 days |
Weighted-average volatility | 55.00% | 70.00% | ||
Risk-free interest rate | 0.00% | 0.00% | ||
Risk-free interest rate minimum | 0.45% | 0.08% | ||
Risk-free interest rate maximum | 0.91% | 0.39% | ||
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-based compensation - Stoc
Stock-based compensation - Stock Options and RSUs (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Employee stock options | |
Number of Shares | |
Beginning Balance (in shares) | shares | 4,301,340 |
Granted (in shares) | shares | 502,746 |
Exercised/Converted (in shares) | shares | (515,988) |
Cancelled/Forfeited (in shares) | shares | (61,106) |
Ending Balance (in shares) | shares | 4,226,992 |
Weighted Average Exercise Price | |
Beginning Balance (in USD per share) | $ / shares | $ 5.18 |
Granted (in USD per share) | $ / shares | 7.37 |
Exercised/Converted (in USD per share) | $ / shares | 3.80 |
Cancelled/Forfeited (in USD per share) | $ / shares | 8.71 |
Ending Balance (in USD per share) | $ / shares | $ 5.56 |
Restricted stock units | |
Number of Units | |
Beginning Balance (in shares) | shares | 2,089,473 |
Granted (in shares) | shares | 1,351,071 |
Exercised/Converted (in shares) | shares | (789,123) |
Cancelled/Forfeited (in shares) | shares | (147,783) |
Ending Balance (in shares) | shares | 2,503,638 |
Weighted Average Exercise Price | |
Beginning Balance (in USD per share) | $ / shares | $ 10.15 |
Granted (in USD per share) | $ / shares | 7.91 |
Exercised/Converted (in USD per share) | $ / shares | 9.40 |
Cancelled/Forfeited (in USD per share) | $ / shares | 10.50 |
Ending Balance (in USD per share) | $ / shares | $ 9.15 |
Stock-based compensation - St64
Stock-based compensation - Stock appreciation units (Details) - Stock Appreciation Units (SAUs) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | 0 | 0 | 0 | |
Shares outstanding (in shares) | 259,704 | 259,704 | 286,768 | ||
SAU-related liabilities | $ 0.7 | $ 0.7 | $ 2 | ||
Share-based compensation arrangement by share-based payment award, accelerated vesting (shares) | 1,100,000 |
Income taxes - Provision for in
Income taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (provision) benefit | $ 1,195 | $ (804) | $ 1,813 | $ (2,471) |
Income taxes - Additional infor
Income taxes - Additional information (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Income Taxes [Line Items] | |
Changes to the amounts of uncertain tax positions previously determined | $ 0 |
Foreign Tax Authority | |
Income Taxes [Line Items] | |
Preferential rate | 15.00% |
Income tax statutory rate | 25.00% |