Control4 (CTRL) 10-Q 4 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 28, 2017
Document and Entity Information
Entity Registrant Name	Control4 Corp
Entity Central Index Key	1,259,515
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		24,855,661
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 30,063	$ 34,813
Restricted cash	263	247
Short-term investments	32,707	22,970
Accounts receivable, net	26,373	24,727
Inventories	31,027	26,231
Prepaid expenses and other current assets	2,590	3,662
Total current assets	123,023	112,650
Property and equipment, net	6,876	6,463
Long-term investments	2,009	4,008
Intangible assets, net	26,984	23,120
Goodwill	21,793	16,809
Other assets	2,689	2,008
Total assets	183,374	165,058
Current liabilities:
Accounts payable	19,830	17,010
Accrued liabilities	8,321	8,912
Current portion of deferred revenue	1,829	1,553
Total current liabilities	29,980	27,475
Other long-term liabilities	2,026	701
Total liabilities	32,006	28,176
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.0001 par value; 500,000,000 shares authorized; 24,855,266 and 23,729,780 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	2	2
Additional paid-in capital	230,094	220,370
Accumulated deficit	(78,223)	(82,626)
Accumulated other comprehensive loss	(505)	(864)
Total stockholders' equity	151,368	136,882
Total liabilities and stockholders' equity	$ 183,374	$ 165,058

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	24,855,266	23,729,780
Common stock, shares outstanding	24,855,266	23,729,780

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 61,409	$ 53,215	$ 111,644	$ 96,250
Cost of revenue	29,993	27,188	55,052	49,737
Gross margin	31,416	26,027	56,592	46,513
Operating expenses:
Research and development	10,055	9,039	19,899	17,518
Sales and marketing	11,943	11,114	23,390	21,249
General and administrative	5,587	5,059	11,304	9,872
Litigation settlement				400
Total operating expenses	27,585	25,212	54,593	49,039
Income (loss) from operations	3,831	815	1,999	(2,526)
Other income (expense), net:
Interest, net	61		99	5
Other income (expense), net	248	(122)	104	(217)
Total other income (expense), net	309	(122)	203	(212)
Income (loss) before income taxes	4,140	693	2,202	(2,738)
Income tax expense (benefit)	247	169	(2,534)	(9,901)
Net income	$ 3,893	$ 524	$ 4,736	$ 7,163
Net income per common share:
Basic (in dollars per share)	$ 0.16	$ 0.02	$ 0.19	$ 0.31
Diluted (in dollars per share)	$ 0.15	$ 0.02	$ 0.18	$ 0.30
Weighted-average number of shares:
Basic (in shares)	24,587	23,162	24,298	23,248
Diluted (in shares)	26,388	23,930	26,024	23,958

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 3,893	$ 524	$ 4,736	$ 7,163
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	(87)	(366)	362	25
Net unrealized gains (losses) on available-for-sale investments, net of tax	1	(4)	(3)	70
Total other comprehensive income (loss)	(86)	(370)	359	95
Comprehensive income	$ 3,807	$ 154	$ 5,095	$ 7,258

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)
Operating activities
Net income	$ 4,736	$ 7,163
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	1,762	1,573
Amortization of intangible assets	2,551	2,172
Provision for doubtful accounts	264	167
Investment discount and premium amortization	(23)	216
Stock-based compensation	6,163	3,950
Tax benefit from business acquisition	(2,415)	(9,708)
Changes in assets and liabilities:
Accounts receivable	(1,186)	(1,600)
Inventories	(3,369)	(6,940)
Restricted cash	(3)
Prepaid expenses and other current assets	1,198	1,513
Other assets	(595)	(347)
Accounts payable	875	1,752
Accrued liabilities	(1,653)	514
Deferred revenue	269	212
Other long-term liabilities	252	(462)
Net cash provided by operating activities	8,826	175
Investing activities
Purchases of available-for-sale investments	(28,933)	(1,996)
Proceeds from sales of available-for-sale investments	950
Proceeds from maturities of available-for-sale investments	20,268	27,208
Purchases of property and equipment	(1,618)	(1,171)
Business acquisitions, net of cash acquired	(7,881)	(32,891)
Net cash used in investing activities	(17,214)	(8,850)
Financing activities
Proceeds from exercise of options for common stock	7,775	711
Payments for taxes related to net share settlement of equity awards	(2,596)
Repurchase of common stock	(1,821)	(3,242)
Repayment of notes payable		(387)
Proceeds from revolving credit facility		5,000
Payment of debt issuance costs		(89)
Net cash provided by financing activities	3,358	1,993
Effect of exchange rate changes on cash and cash equivalents	280	(41)
Net change in cash and cash equivalents	(4,750)	(6,723)
Cash and cash equivalents at beginning of period	34,813	29,530
Cash and cash equivalents at end of period	30,063	22,807
Supplemental disclosure of cash flow information
Cash paid for interest	63	104
Cash paid for taxes	834	622
Supplemental schedule of non-cash investing and financing activities
Business acquisitions holdback liability	1,068
Purchases of property and equipment financed by accounts payable	178
Net unrealized (losses) gains on available-for-sale investments	$ (3)	$ 70

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Description of Business and Summary of Significant Accounting Policies
Description of Business and Summary of Significant Accounting Policies	1. Description of Business and Summary of Significant Accounting Policies Control4 Corporation (‘‘Control4’’ or the ‘‘Company’’) is a leading provider of smart home and business solutions that are designed to personalize and enhance how consumers engage with an ever-changing connected world. Our entertainment, smart lighting, comfort and convenience, safety and security, and networking solutions unlock the potential of connected devices, making entertainment systems easier to use and more accessible, homes and businesses more comfortable and energy efficient, and individuals more secure . The Company was incorporated in the state of Delaware on March 27, 2003. Unaudited Interim Financial Statements The accompanying condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’) on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any other future interim or annual period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2017. The December 31, 2016 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the unaudited condensed consolidated financial statements. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, the Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one operating segment. Concentrations of Risk The Company’s accounts receivable are derived from revenue earned from its worldwide network of independent dealers and distributors. The Company’s sales to dealers and distributors located outside the United States are generally denominated in U.S. dollars, except for sales to dealers and distributors located in the United Kingdom, Canada, Australia, and the European Union, which are generally denominated in pounds sterling, Canadian dollars, Australian dollars, and euros, respectively. There were no individual account balances greater than 10% of total accounts receivable as of June 30, 2017 and December 31, 2016. No dealer or distributor accounted for more than 10% of total revenue for the three and six months ended June 30, 2017 and 2016. While the Company partners with many manufacturers, in many cases one manufacturer is our sole source for a particular product or product family. A significant disruption in the operations of one of these manufacturers would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations. Geographic Information The Company’s revenue includes amounts earned through sales to dealers and distributors located outside of the United States. There was no single foreign country that accounted for more than 10% of total revenue for the three and six months ended June 30, 2017 and 2016. The following table sets forth revenue from U.S., Canadian and all other international dealers and distributors combined (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Revenue-United States $ 42,968 $ 37,461 $ 78,154 $ 68,836 Revenue-Canada 5,259 4,164 9,508 7,109 Revenue-all other international sources 13,182 11,590 23,982 20,305 Total revenue $ 61,409 $ 53,215 $ 111,644 $ 96,250 International revenue (excluding Canada) as a percent of total revenue % % % % Use of Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, sales returns, provisions for doubtful accounts, product warranty, inventory obsolescence, litigation, determination of fair value of stock options, deferred tax asset valuation allowances and income taxes. Actual results may differ from those estimates. Limited Product Warranties The Company provides its customers a limited product warranty of two, three, or ten years depending on product type and brand. The limited product warranties require the Company, at its option, to repair or replace defective products during the warranty period at no cost to the customer or refund the purchase price. The Company estimates the costs that may be incurred to replace, repair or issue a refund for defective products and records a reserve at the time revenue is recognized. Factors that affect the Company’s warranty liability include the cost of the products sold, the Company’s historical experience, and management’s judgment regarding anticipated rates of product warranty returns, net of refurbished products. The Company assesses the adequacy of its recorded warranty liability each period and makes adjustments to the liability as necessary. Warranty costs accrued include amounts accrued for products at the time of shipment, adjustments for changes in estimated costs for warranties on products shipped in the period, and changes in estimated costs for warranties on products shipped in prior periods. It is not practicable for the Company to determine the amounts applicable to each of these components. The following table presents the changes in the product warranty liability for the six months ended June 30, 2017 (in thousands): Warranty Liability Balance at December 31, 2016 $ 1,945 Warranty costs accrued 1,552 Warranty claims (1,323) Balance at June 30, 2017 $ 2,174 Net Income Per Share Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period that have a dilutive effect on net income per share. Potentially dilutive common shares result from the assumed exercise of outstanding stock options and settlement of restricted stock units. The following table presents the reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net income $ 3,893 $ 524 $ 4,736 $ 7,163 Denominator: Weighted average common stock outstanding for basic net income per common share 24,587 23,162 24,298 23,248 Effect of dilutive securities—stock options and restricted stock units 1,801 768 1,726 710 Weighted average common shares and dilutive securities outstanding 26,388 23,930 26,024 23,958 Potentially dilutive securities, including common equivalent shares, in which the assumed proceeds exceed the average market price of common stock for the applicable period, were not included in the calculation of diluted net income per share as their impact would be anti-dilutive. The following weighted-average common stock equivalents were anti-dilutive and therefore were excluded from the calculation of diluted net income per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Options to purchase common stock 1,096 2,553 1,310 2,624 Restricted stock units 15 2 9 35 Total 1,111 2,555 1,319 2,659 Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, “ Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment”. The amendments in this update simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. This update is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 31, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing after January 1, 2017. The Company notes that this guidance applies to its reporting requirements and will implement the new guidance accordingly in performing goodwill impairment testing; however, the Company does not believe this update will have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business, ” which revises the definition of a business. This update is effective for annual periods beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company notes that this guidance will impact its acquisitions beginning January 1, 2018. In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash ,” which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. Early adoption is permitted. Upon the adoption of this standard, the Company will combine restricted cash with unrestricted cash and cash and cash equivalents in the statement of cash flows. In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory .” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ,” which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This standard is effective for fiscal periods beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted and the guidance must be applied using a retrospective transition method. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of this update on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ” The amendments in this update simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted the new guidance on January 1, 2017. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital. Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital of $5.8 million for the six months ended June 30, 2017. However, as the Company has a full valuation allowance against its domestic net deferred tax asset, a corresponding adjustment was recorded to increase the valuation allowance by $5.8 million. As of December 31, 2016, the Company had $20.6 million and $17.6 million of gross federal and state net operating losses (“NOLs”) attributable to excess windfall benefits from share-based compensation. As a result of the adoption of this new standard, on January 1, 2017, the Company increased its net deferred tax asset for NOL carryforwards, with an offsetting cumulative effect of adoption adjustment to accumulated deficit, in the amount of $7.7 million. A corresponding adjustment was recorded to increase the valuation allowance by $7.7 million with an offsetting adjustment to accumulated deficit, resulting in no net impact to the financial statements. In addition, the Company has elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively which had no impact on the statement of cash flows for the six months ended June 30, 2016. Further, under the provisions of ASU 2016-09, the Company has elected to recognize forfeitures as they occur to determine the amount of compensation cost to be recognized in each period. This resulted in an increase of $0.3 million to accumulated deficit with a corresponding increase to additional paid-in capital on January 1, 2017. The amendment related to the accounting for minimum statutory withholding requirements had no impact on retained earnings as of January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842 ) ,” which supersedes the guidance in ASC 840, “Leases .” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Modified retrospective application is required. Early adoption is permitted. The Company is evaluating the impact of adopting this guidance. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which amends the guidance in ASC 605, “Revenue Recognition.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, deferring the effective date of this standard for one year, and is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The deferred standard allows early adoption of the standard on the original effective date which would be effective for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018. The Company is currently evaluating the impact of the new standard on the sale of the Company’s products to dealers, retailers and distributors and has defined what constitutes a contract for these revenue streams. The Company has identified its performance obligations for these revenue streams and is currently evaluating which of these performance obligations are material within the context of the contract. Depending on the results of this analysis, there could be changes to the timing of recognition of revenue and expenses. The Company is still in the initial stages of assessing the impact of this ASU as it relates to other ancillary revenue streams such as software license, services, and third-party products sold through our online dealer portal. In addition, the Company is still evaluating the adoption method it will elect upon implementation. The final determination of the adoption method will depend on a number of factors including the significance of the new standard on the Company’s financial results. The Company is also in the process of implementing appropriate changes to its business processes, systems and controls to support recognition and disclosures under the new standard.

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2017
Balance Sheet Components
Balance Sheet Components	2. Balance Sheet Components Inventories consisted of the following (in thousands): June 30, December 31, 2017 2016 Finished goods $ 27,455 $ 24,138 Component parts 3,424 1,880 Work-in-process 148 213 $ 31,027 $ 26,231 Property and equipment, net consisted of the following (in thousands): June 30, December 31, 2017 2016 Computer equipment and software $ 4,589 $ 3,855 Manufacturing tooling and test equipment 4,655 4,216 Lab and warehouse equipment 4,124 3,649 Leasehold improvements 3,731 3,438 Furniture and fixtures 3,614 3,254 Other 856 753 21,569 19,165 Less: accumulated depreciation (14,693) (12,702) $ 6,876 $ 6,463 Accrued liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 Sales returns and current portion of warranty accruals $ 3,088 $ 2,892 Compensation accruals 3,768 4,445 Other accrued liabilities 1,465 1,575 $ 8,321 $ 8,912

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2017
Financial Instruments
Financial Instruments	3. Financial Instruments Fair Value Measurements The Company’s financial assets that are measured at fair value on a recurring basis consist of money market funds and available-for-sale investments. The following three levels of inputs are used to measure the fair value of financial instruments: Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs are used when little or no market data is available. The fair values for substantially all of the Company’s financial assets are based on quoted prices in active markets or observable inputs. For Level 2 securities, the Company uses a third-party pricing service which provides documentation on an ongoing basis that includes, among other things, pricing information with respect to reference data, methodology, inputs summarized by asset class, pricing application and corroborative information. Cash, Cash Equivalents and Marketable Securities The Company determines realized gains or losses on the sale of marketable securities on a specific identification method. During the three and six months ended June 30, 2017 and 2016, the Company did not record significant realized gains or losses on the sales of available-for-sale investments. The following tables show the Company’s cash and available-for-sale investments’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category, recorded as cash and cash equivalents or short- or long-term investments as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 22,467 $ — $ — $ 22,467 $ 22,467 $ — $ — Level 1: Money market funds 5,098 — — 5,098 5,098 — — U.S. government notes 5,099 — (9) 5,090 — 5,090 — Subtotal 10,197 — (9) 10,188 5,098 5,090 — Level 2: Asset-backed securities 1,002 — (1) 1,001 — — 1,001 Corporate bonds 13,818 — (8) 13,810 — 12,802 1,008 Commercial paper 14,815 — — 14,815 — 14,815 — U.S. agency securities 2,498 — — 2,498 2,498 — — Subtotal 32,133 — (9) 32,124 2,498 27,617 2,009 Total $ 64,797 $ — $ (18) $ 64,779 $ 30,063 $ 32,707 $ 2,009 December 31, 2016 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 24,708 $ — $ — $ 24,708 $ 24,708 $ — $ — Level 1: Money market funds 10,105 — — 10,105 10,105 — — U.S. government notes 2,001 — (1) 2,000 — 2,000 — Subtotal 12,106 — (1) 12,105 10,105 2,000 — Level 2: Asset-backed securities 4,008 — — 4,008 — — 4,008 Corporate bonds 13,902 — (14) 13,888 — 13,888 — Commercial paper 7,082 — — 7,082 — 7,082 — Subtotal 24,992 — (14) 24,978 — 20,970 4,008 Total $ 61,806 $ — $ (15) $ 61,791 $ 34,813 $ 22,970 $ 4,008 As of June 30, 2017, the Company considers the declines in market value of its investment portfolio to be temporary in nature and does not consider any of its investments other-than-temporarily impaired. During the three and six months ended June 30, 2017 and 2016, the Company did not recognize any significant impairment charges. The Company invests in highly-rated securities, and its investment policy limits the amount of credit exposure to any one issuer. The policy requires investments to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. The maturities of the Company’s long-term investments range from one to two years. When evaluating an investment for other-than-temporary impairment the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, as well as the fact it is not more likely than not that the Company will be required to sell the investment before recovery of the investment’s cost basis, which may be maturity. Fair Value of Other Financial Instruments The carrying amounts reported in the accompanying condensed consolidated financial statements for cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their fair value because of the short term nature of the accounts. Derivative Financial Instruments The Company has foreign currency exposure related to the operations in the United Kingdom, Canada, Australia, as well as other foreign locations. The Company has entered into forward contracts to help offset the exposure to movements in foreign currency exchange rates in relation to certain U.S. dollar denominated balance sheet accounts of its subsidiaries in the United Kingdom and Australia. The foreign currency derivatives are not designated as accounting hedges. The Company recognizes these derivative instruments as either assets or liabilities in the accompanying Condensed Consolidated Balance Sheets at fair value. The Company records changes in the fair value (i.e. gains or losses) of these derivative instruments in the accompanying Condensed Consolidated Statements of Operations as Other income (expense), net. The Company settles its foreign exchange contracts on the last day of every month and enters into a new forward contract for the next month. As a result, there are no assets or liabilities recorded in the accompanying Condensed Consolidated Balance Sheets related to derivative instruments as of June 30, 2017. However, the notional principal of foreign exchange contracts for July 2017 was $15.1 million as of June 30, 2017. The following table shows the pre-tax losses of the Company’s derivative instruments not designated as hedging instruments (in thousands): Three Months Ended Six Months Ended June 30, June 30, Income Statement Location 2017 2016 2017 2016 Foreign exchange forward contracts Other income (expense), net $ (405) $ 359 $ (932) $ 43

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2017
Acquisitions
Acquisitions	4. Acquisitions Acquisition of Triad Holdings, Inc. On February 27, 2017, the Company entered into a definitive agreement to acquire Triad Holdings, Inc., (“Triad Holdings”), along with its wholly owned subsidiary Triad Speakers, Inc. (“Triad Speakers” and together with Triad Holdings “Triad”) through the purchase of all the outstanding shares of common stock of Triad for a purchase price of $9.6 million (the “Triad Purchase Agreement”), which included cash acquired of $0.3 million. In accordance with the purchase agreement, $1.4 million of the purchase price will be held for up to 18 months from the acquisition date (the “Holdback”), to cover any of the sellers’ post-closing obligations, including without limitation any indemnification obligations that may arise. Due to customary net working capital adjustments, the purchase price of Triad was reduced to $9.2 million during the three months ended June 30, 2017, resulting in a reduction to the Holdback and goodwill. The Company has classified the remaining $1.1 million Holdback in other long-term liabilities. Total consideration transferred for the Triad acquisition was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values at the acquisition date as set forth below. Management estimated the fair values of tangible and intangible assets and liabilities in accordance with the applicable accounting guidance for business combinations. The preliminary amount of consideration transferred is subject to potential adjustments due to tax-related matters that could have a material impact on the condensed consolidated financial statements. Due to new information obtained related to net working capital and based on facts that existed at the acquisition date, the Company recorded measurement period adjustments to cash, goodwill, accounts payable and other liabilities. The Company expects the allocation of the consideration transferred to be final within the measurement period (up to one year from the acquisition date). The following reflects the Company’s preliminary allocation of consideration transferred for the Triad acquisition (in thousands): Triad Acquisition Cash $ 269 Accounts receivable 516 Inventory 1,078 Other assets acquired 430 Intangible assets 6,271 Goodwill 4,785 Total assets acquired 13,349 Accounts payable 878 Deferred tax liability 2,415 Warranty liability 237 Other liabilities assumed 601 Total net assets acquired $ 9,218 Identifiable Intangible Assets The Company acquired intangible assets that consisted of customer relationships, trademarks/trade names, and developed technology, which had estimated fair values of $2.5 million, $2.4 million, and $1.4 million, respectively. The intangible assets were measured at fair value reflecting the highest and best use of nonfinancial assets in combination with other assets and liabilities. The customer relationships and trademarks/trade names were valued using an income approach that discounts expected future cash flows to present value. The estimated net cash flows were discounted using discount rates between 15% and 16%, based on the estimated internal rate of return for the acquisition and represent the rates that market participants might use to value the intangible assets based on the risk profile of the asset. The projected cash flows were determined using key assumptions such as: estimates of revenues and operating profits; capital expense investments; royalty rates; and tax savings. The acquired technology was valued using a cost savings approach that calculates the asset’s reproduction cost by estimating all the costs associated with creating the technology. The Company will amortize the intangible assets on a straight-line basis over their estimated useful lives of 10 years for the customer relationships, 12 years for the trademark/trade name, and 12 years for the developed technology. The amortization of these intangible assets is not deductible for income tax purposes. Goodwill Goodwill of $4.8 million represents the excess of consideration transferred over the fair value of assets acquired and liabilities assumed and is attributable to Triad’s assembled workforce, synergies and the projected profits from new products and dealers. This goodwill is not deductible for income tax purposes. The Company determined the Triad acquisition was not a significant acquisition under Rule 3-05 of Regulation S‑X. Australia Expansion On April 1, 2016, the Company began working directly with home automation integrators in Australia to better serve and support customers in that country. As part of the shift from its distribution model in Australia, Control4 Corporation, through its wholly owned subsidiary, Control4 Australia Holdings Pty., Ltd, acquired customer lists and inventory from the Company’s Australian distributor for $0.7 million. The Company determined this acquisition was not a significant acquisition under Rule 3-05 of Regulation S-X. Acquisition of Pakedge Device and Software Inc. On January 29, 2016, the Company entered into a definitive agreement to acquire Pakedge Device and Software Inc. (“Pakedge”) through the purchase of all of the outstanding shares of common stock of Pakedge for a price of $33.0 million, which included cash acquired of $0.8 million. In accordance with the purchase agreement, $5.0 million was deposited in escrow, and will be held for up to 18 months from the acquisition date, to cover any of the sellers’ post-closing obligations, including without limitation any indemnification obligations that may arise. The $5.0 million being held in escrow is scheduled for release in August 2017.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	5. Goodwill and Intangible Assets Goodwill Changes in the carrying amount of goodwill consisted of the following (in thousands): Amount Balance at December 31, 2016 $ 16,809 Current period acquisitions 4,785 Foreign currency translation adjustment 199 Balance at June 30, 2017 $ 21,793 Goodwill represents the excess of consideration transferred over the fair value of assets acquired and liabilities assumed. Amortizable Intangible Assets The Company’s intangible assets and related accumulated amortization consisted of the following as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 18,169 $ (7,321) $ 10,848 Customer relationships 11,714 (1,838) 9,876 Trademark/trade name 6,776 (586) 6,190 Non-competition agreements 295 (225) 70 Total intangible assets $ 36,954 $ (9,970) $ 26,984 December 31, 2016 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 16,618 $ (5,738) $ 10,880 Customer relationships 9,196 (1,160) 8,036 Trademark/trade name 4,410 (337) 4,073 Non-competition agreements 295 (164) 131 Total intangible assets $ 30,519 $ (7,399) $ 23,120 The weighted average amortization period for acquired technology, customer relationships, trademarks/trade names and non-competition agreements is 5.4 years, 8.3 years, 12.0 years, and 2.0 years, respectively; and 7.5 years for all amortizable intangible assets in total. The Company recorded amortization expense during the three and six month periods ended June 30, 2017 and 2016 for these intangible assets as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of revenue $ 791 $ 817 $ 1,565 $ 1,466 Research and development 47 50 95 90 Sales and marketing 483 371 891 616 Total amortization of intangible assets $ 1,321 $ 1,238 $ 2,551 $ 2,172 Amortization of finite lived intangible assets as of June 30, 2017 for the next five years is as follows (in thousands): Amount 2017 $ 2,654 2018 5,113 2019 4,971 2020 3,972 2021 2,196 Thereafter 8,078 $ 26,984

Long-Term Obligations

Long-Term Obligations	6 Months Ended
	Jun. 30, 2017
Long-Term Obligations
Long-Term Obligations	6. Long-Term Obligations Loan and Security Agreement On January 29, 2016, Control4 entered into the Second Loan Modification Agreement (the “2016 Loan Amendment”) with Silicon Valley Bank, a California corporation (“SVB”), which amends the Amended and Restated Loan and Security Agreement dated as of June 17, 2013, between Control4 and SVB (the “2013 Loan Agreement”). In the 2016 Loan Amendment, Control4 established a revolving credit facility of $30.0 million under the terms of the 2013 Loan Agreement (the “New Credit Facility”). All borrowings under the New Credit Facility are collateralized by the general assets of the Company. Amounts borrowed under the New Credit Facility are due and payable in full on the maturity date, which is January 28, 2018. Advances made pursuant to the New Credit Facility are, at Control4’s option, either: (i) Prime Rate Advances, which bear interest at the Prime Rate plus a Prime Rate Margin of either 0% or 0.25%, depending on Control4’s leverage ratio for the subject quarter, or (ii) LIBOR Rate Advances, which bear interest at the LIBOR Rate plus a LIBOR Rate Margin of either 2.50% or 2.75%, depending on Control4’s leverage ratio for the subject quarter. Control4 is assessed an unused facility fee of 0.25% in any quarter where the advances are less than $15.0 million. As of June 30, 2017, Control4 had no outstanding borrowings under the revolving credit facility. The 2016 Loan Amendment contains various restrictive and financial covenants, and the Company was in compliance with each of these covenants as of June 30, 2017.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Taxes
Income Taxes	7. Income Taxes In order to determine the quarterly provision for income taxes, the Company considers the estimated annual effective tax rate, which is based on expected annual taxable income and statutory tax rates in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. Income tax expense was $0.2 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively, or approximately 6% and 24% of income (loss) before income taxes, respectively. Income tax benefit was $2.5 million and $9.9 million for the six months ended June 30, 2017 and 2016, respectively, or approximately 115% and 362% of income (loss) before income taxes, respectively. The effective tax rate for the three and six months ended June 30, 2017 differs from the U.S. federal statutory rate of 34% primarily due to the domestic valuation allowance offsetting most of the statutory rate, offset by the partial reversal of the Company’s valuation allowance due to the deferred tax liability that was recorded as part of the Triad acquisition, primarily due to the differences between the book and tax basis of the acquired intangible assets. The rate is further increased by foreign income taxes, state income taxes or taxes in states for which net operating loss carryforwards are not available, the U.S. federal alternative minimum tax and the impact of incentive stock options as well as other permanent differences. As of December 31, 2016, the Company’s NOL carryforward amounts for U.S. federal income and state tax purposes were $59.5 million and $61.0 million, respectively. The NOL carryforwards will expire between 2017 and 2034. In addition to the NOL carryforwards, as of December 31, 2016, the Company had U.S. federal and state research and development credit carryforwards of $7.1 million and $2.8 million, respectively, which will expire between 2017 and 2034. Significant judgment is required in determining the Company’s provision for income taxes, recording valuation allowances against deferred tax assets and evaluating the Company’s uncertain tax positions. In evaluating the ability to recover its deferred tax assets, in full or in part, the Company considers all available positive and negative evidence, including past operating results, forecast of future market growth, forecasted earnings, future taxable income and prudent and feasible tax planning strategies. Due to historical net losses incurred and the uncertainty of realizing the deferred tax assets, for all the periods presented, the Company has a full valuation allowance against domestic deferred tax assets. To the extent that the Company generates positive income and expects, with reasonable certainty, to continue to generate positive domestic income, the Company may release the valuation allowance in a future period. This release would result in the recognition of certain deferred tax assets, resulting in a decrease to income tax expense for the period such release is made. In addition, the effective tax rate in subsequent periods would increase, and more closely approximate the federal statutory rate of 34%, after giving consideration to state income taxes, foreign income taxes, tax credits, the effect of stock-based compensation windfalls or shortfalls, and exercising incentive stock options. The Company files income tax returns in the United States, including various state and local jurisdictions. The Company’s subsidiaries file income tax returns in the United Kingdom, Australia, China, Germany, India and Serbia. We are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. We are no longer subject to income tax examinations for the following jurisdictions and years: federal, for years before 2013; state and local, for years before 2012; or foreign; for years before 2010. However, federal net operating loss and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which the attributes are used.

Equity Compensation

Equity Compensation	6 Months Ended
	Jun. 30, 2017
Equity Compensation
Equity Compensation	8. Equity Compensation Stock Options In 2003, the Board of Directors adopted the 2003 Equity Incentive Plan (the “2003 Plan”), which provided for the granting of nonqualified and incentive stock options, stock appreciation rights, stock awards, restricted stock units and restricted stock awards. Under the 2003 Plan, the Company was able to grant nonqualified and incentive stock options to directors, employees and non-employees providing services to the Company. On June 11, 2013, the Company’s Board of Directors adopted the 2013 Stock Option and Incentive Plan (the “2013 Plan”), which was subsequently approved by the Company’s stockholders. The 2013 Plan became effective as of the closing of the Company’s initial public offering. To the extent that any awards outstanding under the 2003 Plan are forfeited or lapse unexercised after August 1, 2013, the shares of common stock subject to such awards will become available for issuance under the 2013 Plan. The 2013 Plan provides for annual increases in the number of reserved shares of 5% of the outstanding number of shares of the Company’s Common Stock as of the preceding December 31. On January 1, 2017, the number of reserved shares was increased by 1,186,489 in accordance with the provisions of the 2013 Plan. A summary of stock option activity for the six months ended June 30, 2017 is presented below: Weighted Average Shares Subject Weighted Remaining to Options Average Contractual Outstanding Exercise Price Life (Years) Balance at December 31, 2016 3,776,405 11.55 Exercised (873,523) 8.90 Expired (54,401) 17.52 Forfeited (23,670) 16.73 Balance at June 30, 2017 2,824,811 12.20 Exercisable options at June 30, 2017 2,356,503 11.73 5.4 Vested and expected to vest at June 30, 2017 2,824,811 12.20 5.7 The following table summarizes information about stock options outstanding and exercisable at June 30, 2017: Options Outstanding Options Exercisable Weighted- Weighted- Weighted Average Average Average Number of Remaining Number of Remaining Exercise Underlying Contractual Underlying Contractual Range of Exercise Prices Price Shares Life (in years) Shares Life (in years) $ - 5.97 904,662 3.9 904,662 3.9 $ - 8.45 391,363 6.0 310,753 5.3 $ - 13.91 892,486 6.8 605,003 6.7 $ - 20.98 636,300 6.5 536,085 6.5 2,824,811 2,356,503 For the stock option awards vested during the three and six months ended June 30, 2017, the total fair value was $1.1 million and $2.2 million, respectively. The following table summarizes the aggregate intrinsic-value of options exercised, exercisable and vested and expected to vest (in thousands): For the Six Months Ended and as of June 30, 2017 2016 Options Exercised $ 6,734 $ 585 Options Exercisable 19,345 4,553 Options Vested and Expected to Vest 21,817 4,574 The Company did not award stock options during the three and six months ended June 30, 2017. The fair value of each option awarded during the three and six months ended June 30, 2016, was estimated using an expected volatility of 62%, no expected dividends, an expected term of 6.1 years, and a risk-free rate of 1.1%. Restricted stock units A summary of restricted stock unit activity for the six months ended June 30, 2017 is presented below: Number of Weighted Average Shares Grant Date Fair Value Non-vested balance at December 31, 2016 1,396,387 7.60 Awarded 781,010 11.23 Vested (500,389) 7.45 Forfeited (53,317) 8.62 Non-vested balance at June 30, 2017 1,623,691 9.36 During the six months ended June 30, 2017, 500,389 restricted stock units vested of which 170,673 shares were withheld for tax purposes resulting in the issuance of 329,716 shares of common stock. Company Matching Contribution to our 401(k) Plan The Company offers a 401(k) Plan and in November of 2016, our Board of Directors authorized a matching contribution by the Company starting in 2017. Matching contributions are as follows: the Company will match 100% of the first 1% of salary contributed by a participant, and 50% of the next 5% of salary contributed by a participant, for a maximum matching contribution of 3.5% of the salary of a participant up to the limit on contributions imposed by the IRS . Currently, the Company funds its match in contribution with shares of Control4’s common stock. During the six months ended June 30, 2017, the Company contributed 41,253 shares of stock to employees under this plan and recorded $0.7 million of expenses associated with this contribution. Stock-based compensation expense Total stock-based compensation expense has been classified as follows in the accompanying Condensed Consolidated Statements of Operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of revenue $ 61 $ 47 $ 119 $ 90 Research and development 1,050 890 2,179 1,704 Sales and marketing 884 600 1,948 1,109 General and administrative 914 590 1,917 1,047 Total stock-based compensation expense $ 2,909 $ 2,127 $ 6,163 $ 3,950 At June 30, 2017, there was $4.2 million of total unrecognized compensation cost related to non-vested stock option awards that will be recognized over a weighted-average period of 1.3 years. At June 30, 2017, there was $11.9 million of total unrecognized compensation cost related to non-vested restricted stock units that will be recognized over a weighted-average period of 2.1 years.

Share Repurchases

Share Repurchases	6 Months Ended
	Jun. 30, 2017
Share Repurchases
Share Repurchases	9. Share Repurchases In May 2015, the Company’s Board of Directors authorized the repurchase of up to $20.0 million in Control4 common stock from time to time on the open market. In February 2017, the Board of Directors authorized an extension to this repurchase program to May 31, 2018, unless terminated earlier. During the six months ended June 30, 2017, the Company repurchased 119,007 shares for $1.8 million compared to 427,646 shares for $3.2 million in the same period in 2016. As of June 30, 2017, the Company has $5.9 million remaining to repurchase shares of common stock under this share repurchase program.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	10. Commitments and Contingencies Operating Leases The Company leases office and warehouse space under operating leases that expire between 2017 and 2021. The terms of the leases include periods of free rent, options for the Company to extend the leases (three to five years) and increasing rental rates over time. The Company recognizes rental expense under these operating leases on a straight-line basis over the lives of the leases and has accrued for rental expense recorded but not paid. Rental expense was approximately $0.7 million and $0.6 million for the three months ended June 30, 2017 and 2016, respectively, and $1.4 million and $1.2 million for the six months ended June 30, 2017 and 2016, respectively. Future minimum rental payments required under non-cancelable operating leases with initial or remaining terms in excess of one year consist of the following as of June 30, 2017 (in thousands): 2017 $ 1,707 2018 2,258 2019 628 2020 196 2021 30 $ 4,819 The Company vacated one of the Pakedge facilities during 2016 which resulted in a loss of $0.4 million recorded to general and administrative expenses. The Company recorded an additional loss of $0.1 million associated with this lease during the six months ended June 30, 2017, due to changes in the estimated timing of subleasing the facility. The Company is in the process of marketing the space, but additional losses will be incurred if the Company is unable to sublease this facility or renegotiate the terms of the lease. Purchase Commitments The Company had non-cancellable purchase commitments for the purchase of inventory, which extend through June 2018 totaling approximately $44.3 million at June 30, 2017. Indemnification The Company has agreed to indemnify its officers and directors for certain events or occurrences while the officer or director is or was serving at the Company’s request in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company has a directors’ and officers’ insurance policy that provides corporate reimbursement coverage that limits its exposure and enables it to recover a portion of any future amounts paid. The Company has no liabilities recorded for these agreements as of June 30, 2017, as there were no outstanding claims. Legal Matters From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not presently a party to any legal proceedings, that if determined adversely to us, we believe would individually or in the aggregate have a material adverse effect on our business, results of operations, financial condition or cash flows.

Description of Business and S17

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Description of Business and Summary of Significant Accounting Policies
Unaudited Interim Financial Statements	Unaudited Interim Financial Statements The accompanying condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’) on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any other future interim or annual period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2017. The December 31, 2016 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date.
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the unaudited condensed consolidated financial statements.
Segment Reporting	Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, the Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one operating segment.
Concentrations of Risk	Concentrations of Risk The Company’s accounts receivable are derived from revenue earned from its worldwide network of independent dealers and distributors. The Company’s sales to dealers and distributors located outside the United States are generally denominated in U.S. dollars, except for sales to dealers and distributors located in the United Kingdom, Canada, Australia, and the European Union, which are generally denominated in pounds sterling, Canadian dollars, Australian dollars, and euros, respectively. There were no individual account balances greater than 10% of total accounts receivable as of June 30, 2017 and December 31, 2016. No dealer or distributor accounted for more than 10% of total revenue for the three and six months ended June 30, 2017 and 2016. While the Company partners with many manufacturers, in many cases one manufacturer is our sole source for a particular product or product family. A significant disruption in the operations of one of these manufacturers would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations.
Geographic Information	Geographic Information The Company’s revenue includes amounts earned through sales to dealers and distributors located outside of the United States. There was no single foreign country that accounted for more than 10% of total revenue for the three and six months ended June 30, 2017 and 2016. The following table sets forth revenue from U.S., Canadian and all other international dealers and distributors combined (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Revenue-United States $ 42,968 $ 37,461 $ 78,154 $ 68,836 Revenue-Canada 5,259 4,164 9,508 7,109 Revenue-all other international sources 13,182 11,590 23,982 20,305 Total revenue $ 61,409 $ 53,215 $ 111,644 $ 96,250 International revenue (excluding Canada) as a percent of total revenue % % % %
Use of Accounting Estimates	Use of Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, sales returns, provisions for doubtful accounts, product warranty, inventory obsolescence, litigation, determination of fair value of stock options, deferred tax asset valuation allowances and income taxes. Actual results may differ from those estimates.
Limited Product Warranties	Limited Product Warranties The Company provides its customers a limited product warranty of two, three, or ten years depending on product type and brand. The limited product warranties require the Company, at its option, to repair or replace defective products during the warranty period at no cost to the customer or refund the purchase price. The Company estimates the costs that may be incurred to replace, repair or issue a refund for defective products and records a reserve at the time revenue is recognized. Factors that affect the Company’s warranty liability include the cost of the products sold, the Company’s historical experience, and management’s judgment regarding anticipated rates of product warranty returns, net of refurbished products. The Company assesses the adequacy of its recorded warranty liability each period and makes adjustments to the liability as necessary. Warranty costs accrued include amounts accrued for products at the time of shipment, adjustments for changes in estimated costs for warranties on products shipped in the period, and changes in estimated costs for warranties on products shipped in prior periods. It is not practicable for the Company to determine the amounts applicable to each of these components. The following table presents the changes in the product warranty liability for the six months ended June 30, 2017 (in thousands): Warranty Liability Balance at December 31, 2016 $ 1,945 Warranty costs accrued 1,552 Warranty claims (1,323) Balance at June 30, 2017 $ 2,174
Net Income Per Share	Net Income Per Share Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period that have a dilutive effect on net income per share. Potentially dilutive common shares result from the assumed exercise of outstanding stock options and settlement of restricted stock units. The following table presents the reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net income $ 3,893 $ 524 $ 4,736 $ 7,163 Denominator: Weighted average common stock outstanding for basic net income per common share 24,587 23,162 24,298 23,248 Effect of dilutive securities—stock options and restricted stock units 1,801 768 1,726 710 Weighted average common shares and dilutive securities outstanding 26,388 23,930 26,024 23,958 Potentially dilutive securities, including common equivalent shares, in which the assumed proceeds exceed the average market price of common stock for the applicable period, were not included in the calculation of diluted net income per share as their impact would be anti-dilutive. The following weighted-average common stock equivalents were anti-dilutive and therefore were excluded from the calculation of diluted net income per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Options to purchase common stock 1,096 2,553 1,310 2,624 Restricted stock units 15 2 9 35 Total 1,111 2,555 1,319 2,659
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, “ Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment”. The amendments in this update simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. This update is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 31, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing after January 1, 2017. The Company notes that this guidance applies to its reporting requirements and will implement the new guidance accordingly in performing goodwill impairment testing; however, the Company does not believe this update will have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business, ” which revises the definition of a business. This update is effective for annual periods beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company notes that this guidance will impact its acquisitions beginning January 1, 2018. In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash ,” which provides amendments to current guidance to address the classifications and presentation of changes in restricted cash in the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. Early adoption is permitted. Upon the adoption of this standard, the Company will combine restricted cash with unrestricted cash and cash and cash equivalents in the statement of cash flows. In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory .” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ,” which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This standard is effective for fiscal periods beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted and the guidance must be applied using a retrospective transition method. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of this update on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ” The amendments in this update simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted the new guidance on January 1, 2017. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital. Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital of $5.8 million for the six months ended June 30, 2017. However, as the Company has a full valuation allowance against its domestic net deferred tax asset, a corresponding adjustment was recorded to increase the valuation allowance by $5.8 million. As of December 31, 2016, the Company had $20.6 million and $17.6 million of gross federal and state net operating losses (“NOLs”) attributable to excess windfall benefits from share-based compensation. As a result of the adoption of this new standard, on January 1, 2017, the Company increased its net deferred tax asset for NOL carryforwards, with an offsetting cumulative effect of adoption adjustment to accumulated deficit, in the amount of $7.7 million. A corresponding adjustment was recorded to increase the valuation allowance by $7.7 million with an offsetting adjustment to accumulated deficit, resulting in no net impact to the financial statements. In addition, the Company has elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively which had no impact on the statement of cash flows for the six months ended June 30, 2016. Further, under the provisions of ASU 2016-09, the Company has elected to recognize forfeitures as they occur to determine the amount of compensation cost to be recognized in each period. This resulted in an increase of $0.3 million to accumulated deficit with a corresponding increase to additional paid-in capital on January 1, 2017. The amendment related to the accounting for minimum statutory withholding requirements had no impact on retained earnings as of January 1, 2017. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842 ) ,” which supersedes the guidance in ASC 840, “Leases .” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Modified retrospective application is required. Early adoption is permitted. The Company is evaluating the impact of adopting this guidance. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which amends the guidance in ASC 605, “Revenue Recognition.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, deferring the effective date of this standard for one year, and is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The deferred standard allows early adoption of the standard on the original effective date which would be effective for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018. The Company is currently evaluating the impact of the new standard on the sale of the Company’s products to dealers, retailers and distributors and has defined what constitutes a contract for these revenue streams. The Company has identified its performance obligations for these revenue streams and is currently evaluating which of these performance obligations are material within the context of the contract. Depending on the results of this analysis, there could be changes to the timing of recognition of revenue and expenses. The Company is still in the initial stages of assessing the impact of this ASU as it relates to other ancillary revenue streams such as software license, services, and third-party products sold through our online dealer portal. In addition, the Company is still evaluating the adoption method it will elect upon implementation. The final determination of the adoption method will depend on a number of factors including the significance of the new standard on the Company’s financial results. The Company is also in the process of implementing appropriate changes to its business processes, systems and controls to support recognition and disclosures under the new standard.

Description of Business and S18

Description of Business and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Description of Business and Summary of Significant Accounting Policies
Schedule of revenue from United States, Canada and all other international dealers and distributors combined	The following table sets forth revenue from U.S., Canadian and all other international dealers and distributors combined (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Revenue-United States $ 42,968 $ 37,461 $ 78,154 $ 68,836 Revenue-Canada 5,259 4,164 9,508 7,109 Revenue-all other international sources 13,182 11,590 23,982 20,305 Total revenue $ 61,409 $ 53,215 $ 111,644 $ 96,250 International revenue (excluding Canada) as a percent of total revenue % % % %
Schedule of changes in the product warranty liability	The following table presents the changes in the product warranty liability for the six months ended June 30, 2017 (in thousands): Warranty Liability Balance at December 31, 2016 $ 1,945 Warranty costs accrued 1,552 Warranty claims (1,323) Balance at June 30, 2017 $ 2,174
Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share	The following table presents the reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net income $ 3,893 $ 524 $ 4,736 $ 7,163 Denominator: Weighted average common stock outstanding for basic net income per common share 24,587 23,162 24,298 23,248 Effect of dilutive securities—stock options and restricted stock units 1,801 768 1,726 710 Weighted average common shares and dilutive securities outstanding 26,388 23,930 26,024 23,958
Schedule of anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share	The following weighted-average common stock equivalents were anti-dilutive and therefore were excluded from the calculation of diluted net income per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Options to purchase common stock 1,096 2,553 1,310 2,624 Restricted stock units 15 2 9 35 Total 1,111 2,555 1,319 2,659

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2017
Balance Sheet Components
Schedule of inventories	Inventories consisted of the following (in thousands): June 30, December 31, 2017 2016 Finished goods $ 27,455 $ 24,138 Component parts 3,424 1,880 Work-in-process 148 213 $ 31,027 $ 26,231
Schedule of property and equipment, net	Property and equipment, net consisted of the following (in thousands): June 30, December 31, 2017 2016 Computer equipment and software $ 4,589 $ 3,855 Manufacturing tooling and test equipment 4,655 4,216 Lab and warehouse equipment 4,124 3,649 Leasehold improvements 3,731 3,438 Furniture and fixtures 3,614 3,254 Other 856 753 21,569 19,165 Less: accumulated depreciation (14,693) (12,702) $ 6,876 $ 6,463
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 Sales returns and current portion of warranty accruals $ 3,088 $ 2,892 Compensation accruals 3,768 4,445 Other accrued liabilities 1,465 1,575 $ 8,321 $ 8,912

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Financial Instruments
Schedule of cash and available-for-sale investments' adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- or long-term investments	The following tables show the Company’s cash and available-for-sale investments’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category, recorded as cash and cash equivalents or short- or long-term investments as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 22,467 $ — $ — $ 22,467 $ 22,467 $ — $ — Level 1: Money market funds 5,098 — — 5,098 5,098 — — U.S. government notes 5,099 — (9) 5,090 — 5,090 — Subtotal 10,197 — (9) 10,188 5,098 5,090 — Level 2: Asset-backed securities 1,002 — (1) 1,001 — — 1,001 Corporate bonds 13,818 — (8) 13,810 — 12,802 1,008 Commercial paper 14,815 — — 14,815 — 14,815 — U.S. agency securities 2,498 — — 2,498 2,498 — — Subtotal 32,133 — (9) 32,124 2,498 27,617 2,009 Total $ 64,797 $ — $ (18) $ 64,779 $ 30,063 $ 32,707 $ 2,009 December 31, 2016 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 24,708 $ — $ — $ 24,708 $ 24,708 $ — $ — Level 1: Money market funds 10,105 — — 10,105 10,105 — — U.S. government notes 2,001 — (1) 2,000 — 2,000 — Subtotal 12,106 — (1) 12,105 10,105 2,000 — Level 2: Asset-backed securities 4,008 — — 4,008 — — 4,008 Corporate bonds 13,902 — (14) 13,888 — 13,888 — Commercial paper 7,082 — — 7,082 — 7,082 — Subtotal 24,992 — (14) 24,978 — 20,970 4,008 Total $ 61,806 $ — $ (15) $ 61,791 $ 34,813 $ 22,970 $ 4,008

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2017
Acquisitions
Payments to acquire businesses modified by measurement period adjustments	The following reflects the Company’s preliminary allocation of consideration transferred for the Triad acquisition (in thousands): Triad Acquisition Cash $ 269 Accounts receivable 516 Inventory 1,078 Other assets acquired 430 Intangible assets 6,271 Goodwill 4,785 Total assets acquired 13,349 Accounts payable 878 Deferred tax liability 2,415 Warranty liability 237 Other liabilities assumed 601 Total net assets acquired $ 9,218

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets
Schedule of changes in carrying amount of goodwill	Changes in the carrying amount of goodwill consisted of the following (in thousands): Amount Balance at December 31, 2016 $ 16,809 Current period acquisitions 4,785 Foreign currency translation adjustment 199 Balance at June 30, 2017 $ 21,793
Schedule of company's intangible assets and related accumulated amortization	The Company’s intangible assets and related accumulated amortization consisted of the following as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 18,169 $ (7,321) $ 10,848 Customer relationships 11,714 (1,838) 9,876 Trademark/trade name 6,776 (586) 6,190 Non-competition agreements 295 (225) 70 Total intangible assets $ 36,954 $ (9,970) $ 26,984 December 31, 2016 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 16,618 $ (5,738) $ 10,880 Customer relationships 9,196 (1,160) 8,036 Trademark/trade name 4,410 (337) 4,073 Non-competition agreements 295 (164) 131 Total intangible assets $ 30,519 $ (7,399) $ 23,120
Schedule of amortization expense during the respective periods	The Company recorded amortization expense during the three and six month periods ended June 30, 2017 and 2016 for these intangible assets as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of revenue $ 791 $ 817 $ 1,565 $ 1,466 Research and development 47 50 95 90 Sales and marketing 483 371 891 616 Total amortization of intangible assets $ 1,321 $ 1,238 $ 2,551 $ 2,172
Schedule of amortization of finite lived intangible assets	Amortization of finite lived intangible assets as of June 30, 2017 for the next five years is as follows (in thousands): Amount 2017 $ 2,654 2018 5,113 2019 4,971 2020 3,972 2021 2,196 Thereafter 8,078 $ 26,984

Equity Compensation (Tables)

Equity Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Equity Compensation
Summary of stock option activity	Weighted Average Shares Subject Weighted Remaining to Options Average Contractual Outstanding Exercise Price Life (Years) Balance at December 31, 2016 3,776,405 11.55 Exercised (873,523) 8.90 Expired (54,401) 17.52 Forfeited (23,670) 16.73 Balance at June 30, 2017 2,824,811 12.20 Exercisable options at June 30, 2017 2,356,503 11.73 5.4 Vested and expected to vest at June 30, 2017 2,824,811 12.20 5.7
Summary of stock options outstanding and exercisable	Weighted Average Shares Subject Weighted Remaining to Options Average Contractual Outstanding Exercise Price Life (Years) Balance at December 31, 2016 3,776,405 11.55 Exercised (873,523) 8.90 Expired (54,401) 17.52 Forfeited (23,670) 16.73 Balance at June 30, 2017 2,824,811 12.20 Exercisable options at June 30, 2017 2,356,503 11.73 5.4 Vested and expected to vest at June 30, 2017 2,824,811 12.20 5.7 The following table summarizes information about stock options outstanding and exercisable at June 30, 2017: Options Outstanding Options Exercisable Weighted- Weighted- Weighted Average Average Average Number of Remaining Number of Remaining Exercise Underlying Contractual Underlying Contractual Range of Exercise Prices Price Shares Life (in years) Shares Life (in years) $ - 5.97 904,662 3.9 904,662 3.9 $ - 8.45 391,363 6.0 310,753 5.3 $ - 13.91 892,486 6.8 605,003 6.7 $ - 20.98 636,300 6.5 536,085 6.5 2,824,811 2,356,503
Summary of aggregate intrinsic-value of options exercised, exercisable, and vested and expected to vest	The following table summarizes the aggregate intrinsic-value of options exercised, exercisable and vested and expected to vest (in thousands): For the Six Months Ended and as of June 30, 2017 2016 Options Exercised $ 6,734 $ 585 Options Exercisable 19,345 4,553 Options Vested and Expected to Vest 21,817 4,574
Summary of restricted stock unit activity	Number of Weighted Average Shares Grant Date Fair Value Non-vested balance at December 31, 2016 1,396,387 7.60 Awarded 781,010 11.23 Vested (500,389) 7.45 Forfeited (53,317) 8.62 Non-vested balance at June 30, 2017 1,623,691 9.36
Schedule of total stock-based compensation expense classified in Statements of Operations	Total stock-based compensation expense has been classified as follows in the accompanying Condensed Consolidated Statements of Operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of revenue $ 61 $ 47 $ 119 $ 90 Research and development 1,050 890 2,179 1,704 Sales and marketing 884 600 1,948 1,109 General and administrative 914 590 1,917 1,047 Total stock-based compensation expense $ 2,909 $ 2,127 $ 6,163 $ 3,950

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Schedule of future minimum rental payments required under non-cancelable operating leases	Future minimum rental payments required under non-cancelable operating leases with initial or remaining terms in excess of one year consist of the following as of June 30, 2017 (in thousands): 2017 $ 1,707 2018 2,258 2019 628 2020 196 2021 30 $ 4,819

Description of Business and S25

Description of Business and Summary of Significant Accounting Policies (Concentration) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)
Revenue from U.S., Canadian and all other international dealers and distributors combined
Total revenue	$ 61,409	$ 53,215	$ 111,644	$ 96,250
International revenue (excluding Canada) as a percent of total revenue	21.00%	22.00%	21.00%	21.00%
Segment Reporting
Number of operating segments | item			1
United States
Revenue from U.S., Canadian and all other international dealers and distributors combined
Total revenue	$ 42,968	$ 37,461	$ 78,154	$ 68,836
Canada
Revenue from U.S., Canadian and all other international dealers and distributors combined
Total revenue	5,259	4,164	9,508	7,109
All other international sources
Revenue from U.S., Canadian and all other international dealers and distributors combined
Total revenue	$ 13,182	$ 11,590	$ 23,982	$ 20,305

Description of Business and S26

Description of Business and Summary of Significant Accounting Policies (Warranties) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Changes in the product warranty liability
Balance at the beginning of the period	$ 1,945
Warranty costs accrued	1,552
Warranty claims	(1,323)
Balance at the end of the period	$ 2,174
Alternate
Product Warranty
Product warranty period	3 years
Minimum
Product Warranty
Product warranty period	2 years
Maximum
Product Warranty
Product warranty period	10 years

Description of Business and S27

Description of Business and Summary of Significant Accounting Policies (EPS) (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net income	$ 3,893	$ 524	$ 4,736	$ 7,163
Denominator:
Weighted average common stock outstanding for basic net income per common share (in shares)	24,587	23,162	24,298	23,248
Effect of dilutive securities—stock options and restricted stock units (in shares)	1,801	768	1,726	710
Weighted average common shares and dilutive securities outstanding (in shares)	26,388	23,930	26,024	23,958

Description of Business and S28

Description of Business and Summary of Significant Accounting Policies (AntiDilutive) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share
Total (in shares)	1,111	2,555	1,319	2,659
Options | Common Stock
Anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share
Total (in shares)	1,096	2,553	1,310	2,624
Restricted stock units
Anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share
Total (in shares)	15	2	9	35

Description of Business and S29

Description of Business and Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) $ in Millions	Jan. 01, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounting Standards Update 2016-09 | Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Recognition of excess tax benefits		$ 5.8
Increase in net valuation allowance		$ 5.8
Accumulated Deficit | Accounting Standards Update 2016-09 | Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New accounting pronouncement, cumulative effect of change, accumulated deficit increase (decrease)	$ 0.3
State
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Unrecorded tax benefits for stock-based compensation			$ 17.6
Domestic | Accounting Standards Update 2016-09 | Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax assets, operating loss carryforwards	7.7
Domestic | Accounting Standards Update 2016-09 | Valuation allowance, operating loss carryforwards | Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase in net valuation allowance	7.7
Domestic | Accumulated Deficit | Accounting Standards Update 2016-09 | Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New accounting pronouncement, cumulative effect of change, accumulated deficit increase (decrease)	(7.7)
Domestic | Accumulated Deficit | Accounting Standards Update 2016-09 | Valuation allowance, operating loss carryforwards | Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New accounting pronouncement, cumulative effect of change, accumulated deficit increase (decrease)	$ 7.7
Federal
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Unrecorded tax benefits for stock-based compensation			$ 20.6

Balance Sheet Components (Inven

Balance Sheet Components (Inventories, Property and Equipment) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventories
Finished goods	$ 27,455	$ 24,138
Component parts	3,424	1,880
Work-in-process	148	213
Total inventories	31,027	26,231
Property and equipment, net
Property and equipment, gross	21,569	19,165
Less: accumulated depreciation	(14,693)	(12,702)
Property and equipment, net	6,876	6,463
Computer equipment and software
Property and equipment, net
Property and equipment, gross	4,589	3,855
Manufacturing tooling and test equipment
Property and equipment, net
Property and equipment, gross	4,655	4,216
Lab and warehouse equipment
Property and equipment, net
Property and equipment, gross	4,124	3,649
Leasehold improvements
Property and equipment, net
Property and equipment, gross	3,731	3,438
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	3,614	3,254
Other
Property and equipment, net
Property and equipment, gross	$ 856	$ 753

Balance Sheet Components (Other

Balance Sheet Components (Other assets and Accrued liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accrued liabilities
Sales returns and current portion of warranty accruals	$ 3,088	$ 2,892
Compensation accruals	3,768	4,445
Other accrued liabilities	1,465	1,575
Total accrued liabilities	$ 8,321	$ 8,912

Financial Instruments (Details)

Financial Instruments (Details) - Measured on a recurring basis - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Measurements
Adjusted Cost, assets	$ 64,797	$ 61,806
Unrealized Losses, available-for-sale securities	(18)	(15)
Fair Value, assets	64,779	61,791
Cash and Cash Equivalents
Fair Value Measurements
Fair Value, available-for-sale investments	30,063	34,813
Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	32,707	22,970
Long-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	2,009	4,008
Cash
Fair Value Measurements
Fair value, cash and cash equivalents	22,467	24,708
Cash | Cash and Cash Equivalents
Fair Value Measurements
Fair value, cash and cash equivalents	22,467	24,708
Level 1
Fair Value Measurements
Adjusted Cost, assets	10,197	12,106
Unrealized Losses, available-for-sale securities	(9)	(1)
Fair Value, assets	10,188	12,105
Level 1 | Cash and Cash Equivalents
Fair Value Measurements
Fair Value, available-for-sale investments	5,098	10,105
Level 1 | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	5,090	2,000
Level 1 | Money market funds
Fair Value Measurements
Fair value, cash and cash equivalents	5,098	10,105
Level 1 | Money market funds | Cash and Cash Equivalents
Fair Value Measurements
Fair value, cash and cash equivalents	5,098	10,105
Level 1 | U.S. government notes
Fair Value Measurements
Adjusted Cost, available-for-sale securities	5,099	2,001
Unrealized Losses, available-for-sale securities	(9)	(1)
Fair Value, available-for-sale investments	5,090	2,000
Level 1 | U.S. government notes | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	5,090	2
Level 2 | Available-for-sale investments
Fair Value Measurements
Adjusted Cost, available-for-sale securities	32,133	24,992
Unrealized Losses, available-for-sale securities	(9)	(14)
Fair Value, available-for-sale investments	32,124	24,978
Level 2 | Available-for-sale investments | Cash and Cash Equivalents
Fair Value Measurements
Fair Value, available-for-sale investments	2,498
Level 2 | Available-for-sale investments | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	27,617	20,970
Level 2 | Available-for-sale investments | Long-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	2,009	4,008
Level 2 | Asset-backed securities
Fair Value Measurements
Adjusted Cost, available-for-sale securities	1,002	4,008
Unrealized Losses, available-for-sale securities	(1)
Fair Value, available-for-sale investments	1,001	4,008
Level 2 | Asset-backed securities | Long-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	1,001	4,008
Level 2 | Corporate bonds
Fair Value Measurements
Adjusted Cost, available-for-sale securities	13,818	13,902
Unrealized Losses, available-for-sale securities	(8)	(14)
Fair Value, available-for-sale investments	13,810	13,888
Level 2 | Corporate bonds | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	12,802	13,888
Level 2 | Corporate bonds | Long-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	1,008
Level 2 | Commercial paper
Fair Value Measurements
Adjusted Cost, available-for-sale securities	14,815	7,082
Fair Value, available-for-sale investments	14,815	7,082
Level 2 | Commercial paper | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	14,815	$ 7,082
Level 2 | U.S. agency securities
Fair Value Measurements
Adjusted Cost, available-for-sale securities	2,498
Fair Value, available-for-sale investments	2,498
Level 2 | U.S. agency securities | Cash and Cash Equivalents
Fair Value Measurements
Fair Value, available-for-sale investments	$ 2,498

Financial Instruments (Investme

Financial Instruments (Investment and Derivative Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Foreign exchange contracts
Fair Value Measurements
Assets related to derivative instruments	$ 0		$ 0
Liabilities related to derivative instruments	0		0
Notional principal amount of foreign exchange contracts	15,100		15,100
Foreign exchange contracts | Other income (expense), net | Not designated as hedging instrument
Fair Value Measurements
Foreign exchange forward contracts	$ (405)	$ 359	$ (932)	$ 43
Minimum
Fair Value Measurements
Maturity period of long-term investments			1 year
Maximum
Fair Value Measurements
Maturity period of long-term investments			2 years

Acquisitions (Triad Holdings, I

Acquisitions (Triad Holdings, Inc.) (Details) - USD ($) $ in Thousands	Feb. 27, 2017	Jun. 30, 2017
Business Acquisition [Line Items]
Business acquisitions holdback liability	$ 1,400	$ 1,068
Triad Holdings, Inc.
Business Acquisition [Line Items]
Purchase price to acquire common stock	9,600
Cash acquired in acquisition	$ 269
Payments to acquire businesses modified by measurement period adjustments		$ 9,200
Purchase agreement, portion of purchase price held, period from acquisition date (in months)	18 months

Acquisition (Allocation) (Detai

Acquisition (Allocation) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Feb. 27, 2017	Dec. 31, 2016
Payments to acquire businesses modified by measurement period adjustments
Goodwill	$ 21,793		$ 16,809
Triad Holdings, Inc.
Payments to acquire businesses modified by measurement period adjustments
Cash		$ 269
Accounts receivable		516
Inventory		1,078
Other assets acquired		430
Intangible assets		6,271
Goodwill		4,785
Total assets acquired		13,349
Accounts payable		878
Deferred tax liability		2,415
Warranty liability		237
Other liabilities assumed		601
Total net assets acquired		$ 9,218

Acquisitions (Identifiable Inta

Acquisitions (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands	Feb. 27, 2017	Jun. 30, 2017	Dec. 31, 2016
Goodwill
Goodwill		$ 21,793	$ 16,809
Triad Holdings, Inc.
Goodwill
Goodwill	$ 4,785
Triad Holdings, Inc. | Minimum
Identifiable Intangible Assets
Discount rate used	15.00%
Triad Holdings, Inc. | Maximum
Identifiable Intangible Assets
Discount rate used	16.00%
Triad Holdings, Inc. | Customer relationships
Identifiable Intangible Assets
Acquired intangible assets	$ 2,500
Weighted average amortization period	10 years
Triad Holdings, Inc. | Trademark/trade name
Identifiable Intangible Assets
Acquired intangible assets	$ 2,400
Weighted average amortization period	12 years
Triad Holdings, Inc. | Developed technology
Identifiable Intangible Assets
Acquired intangible assets	$ 1,400
Weighted average amortization period	12 years

Acquisitions (Australia Expansi

Acquisitions (Australia Expansion) (Details) $ in Millions	Apr. 01, 2016USD ($)
Australia Expansion
Purchase Agreement
Total consideration transferred	$ 0.7

Acquisitions (Pakedge Device an

Acquisitions (Pakedge Device and Software Inc.) (Details) - Pakedge Device And Software Inc. $ in Millions	Jan. 29, 2016USD ($)
Purchase Agreement
Purchase price per purchase agreement	$ 33
Cash acquired in acquisition	0.8
Escrow deposit	$ 5
Period of escrow deposit	18 months

Goodwill and Intangible Asset39

Goodwill and Intangible Assets (Goodwill) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Business Combination - Goodwill
Balance at beginning of the period	$ 16,809
Current period acquisitions	4,785
Foreign currency translation adjustment	199
Balance at end of the period	$ 21,793

Goodwill and Intangible Asset40

Goodwill and Intangible Assets (Intangible assets) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Intangible assets
Gross Carrying Amount	$ 36,954	$ 30,519
Accumulated Amortization	(9,970)	(7,399)
Intangible assets, net	$ 26,984	23,120
Weighted average amortization period	7 years 6 months
Developed technology
Intangible assets
Gross Carrying Amount	$ 18,169	16,618
Accumulated Amortization	(7,321)	(5,738)
Intangible assets, net	$ 10,848	10,880
Weighted average amortization period	5 years 4 months 24 days
Customer relationships
Intangible assets
Gross Carrying Amount	$ 11,714	9,196
Accumulated Amortization	(1,838)	(1,160)
Intangible assets, net	$ 9,876	8,036
Weighted average amortization period	8 years 3 months 18 days
Trademark/trade name
Intangible assets
Gross Carrying Amount	$ 6,776	4,410
Accumulated Amortization	(586)	(337)
Intangible assets, net	$ 6,190	4,073
Weighted average amortization period	12 years
Non-competition agreements
Intangible assets
Gross Carrying Amount	$ 295	295
Accumulated Amortization	(225)	(164)
Intangible assets, net	$ 70	$ 131
Weighted average amortization period	2 years

Goodwill and Intangible Asset41

Goodwill and Intangible Assets (Amortization expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Amortization expense
Amortization of intangible assets	$ 1,321	$ 1,238	$ 2,551	$ 2,172
Cost of revenue
Amortization expense
Amortization of intangible assets	791	817	1,565	1,466
Research and development
Amortization expense
Amortization of intangible assets	47	50	95	90
Sales and marketing
Amortization expense
Amortization of intangible assets	$ 483	$ 371	$ 891	$ 616

Goodwill and Intangible Asset42

Goodwill and Intangible Assets (Amortization) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Amortization of finite-lived intangible assets
2,017	$ 2,654
2,018	5,113
2,019	4,971
2,020	3,972
2,021	2,196
Thereafter	8,078
Intangible assets, net	$ 26,984	$ 23,120

Long-Term Obligations (Details)

Long-Term Obligations (Details) - Revolving credit facility $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)
Long-Term Obligations
Outstanding borrowings	$ 0
Commitment fee for quarterly unused capacity (as a percent)	0.25%
Unused line of credit fee threshold	$ 15
Prime Rate
Long-Term Obligations
Variable interest rate basis	Prime Rate
LIBOR
Long-Term Obligations
Variable interest rate basis	LIBOR
2016 Loan Agreement
Long-Term Obligations
Maximum borrowing capacity	$ 30
Minimum | Prime Rate
Long-Term Obligations
Basis spread on variable rate (as a percent)	0.00%
Minimum | LIBOR
Long-Term Obligations
Basis spread on variable rate (as a percent)	2.50%
Maximum | Prime Rate
Long-Term Obligations
Basis spread on variable rate (as a percent)	0.25%
Maximum | LIBOR
Long-Term Obligations
Basis spread on variable rate (as a percent)	2.75%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income tax expense (benefit)	$ 247	$ 169	$ (2,534)	$ (9,901)
Effective income tax rate (as a percent)	6.00%	24.00%	115.00%	362.00%
U.S. federal statutory rate (as a percent)			34.00%
State
Net operating losses					$ 61,000
Tax credit carryforwards					2,800
Federal
Net operating losses					59,500
Tax credit carryforwards					$ 7,100

Equity Compensation (Activity)

Equity Compensation (Activity) (Details) - Stock options - $ / shares	Jan. 01, 2017	Jun. 30, 2017	Jun. 11, 2013
Shares Subject to Options Outstanding
Balance at the beginning of the period (in shares)	3,776,405	3,776,405
Exercised (in shares)		(873,523)
Expired (in shares)		(54,401)
Forfeited (in shares)		(23,670)
Balance at the end of the period (in shares)		2,824,811
Exercisable options (in shares)		2,356,503
Vested and expected to vest at the end of the period (in shares)		2,824,811
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 11.55	$ 11.55
Exercised (in dollars per share)		8.90
Expired (in dollars per share)		17.52
Forfeited (in dollars per share)		16.73
Balance at the end of the period (in dollars per share)		12.20
Exercisable options at the end of the period (in dollars per share)		11.73
Vested and expected to vest (in dollars per share)		$ 12.20
Weighted-Average Remaining Contractual Life
Exercisable options		5 years 4 months 24 days
Vested and expected to vest		5 years 8 months 12 days
2013 Plan
Stock options
Potential annual increase in shares authorized for issuance as a percentage of shares outstanding as of the preceding December 31			5.00%
Increase in number of shares authorized for issuance	1,186,489

Equity Compensation (Range) (De

Equity Compensation (Range) (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Options Outstanding
Number of Underlying Shares | shares	2,824,811
Options Exercisable
Number of Underlying Shares | shares	2,356,503
3.59-6.14
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 3.59
Range of Exercise Price, high end of range (in dollars per share)	6.14
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 5.97
Number of Underlying Shares | shares	904,662
Weighted-Average Remaining Contractual Life	3 years 10 months 24 days
Options Exercisable
Number of Underlying Shares | shares	904,662
Weighted-Average Remaining Contractual Life	3 years 10 months 24 days
6.34-9.93
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 6.34
Range of Exercise Price, high end of range (in dollars per share)	9.93
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 8.45
Number of Underlying Shares | shares	391,363
Weighted-Average Remaining Contractual Life	6 years
Options Exercisable
Number of Underlying Shares | shares	310,753
Weighted-Average Remaining Contractual Life	5 years 3 months 18 days
11.28-16.97
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 11.28
Range of Exercise Price, high end of range (in dollars per share)	16.97
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 13.91
Number of Underlying Shares | shares	892,486
Weighted-Average Remaining Contractual Life	6 years 9 months 18 days
Options Exercisable
Number of Underlying Shares | shares	605,003
Weighted-Average Remaining Contractual Life	6 years 8 months 12 days
17.66-22.92
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 17.66
Range of Exercise Price, high end of range (in dollars per share)	22.92
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 20.98
Number of Underlying Shares | shares	636,300
Weighted-Average Remaining Contractual Life	6 years 6 months
Options Exercisable
Number of Underlying Shares | shares	536,085
Weighted-Average Remaining Contractual Life	6 years 6 months

Equity Compensation (Fair Value

Equity Compensation (Fair Value) (Details) - Stock options - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock options
Total fair value for the awards vested during the period	$ 1,100		$ 2,200
Stock options granted (in shares)	0		0
Intrinsic-value
Options Exercised			$ 6,734	$ 585
Options Exercisable	$ 19,345	$ 4,553	19,345	4,553
Options Vested and Expected to Vest	$ 21,817	$ 4,574	$ 21,817	$ 4,574
Assumptions used to estimate fair value of stock options
Expected volatility (as a percent)		62.00%		62.00%
Expected dividends (as a percent)		0.00%		0.00%
Expected term		6 years 1 month 6 days		6 years 1 month 6 days
Risk-free rate (as a percent)		1.10%		1.10%

Equity Compensation (Restricted

Equity Compensation (Restricted Stock Units) (Details) - Restricted stock units	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Restricted stock units
Non-vested balance at beginning of period (in shares)	1,396,387
Awarded	781,010
Vested	(500,389)
Forfeited	(53,317)
Non-vested balance at end of period (in shares)	1,623,691
Weighted Average Grant Date Fair Value
Non-vested balance at beginning of period (in dollars per share) | $ / shares	$ 7.60
Awarded (in dollars per share) | $ / shares	11.23
Vested (in dollars per share) | $ / shares	7.45
Forfeited (in dollars per share) | $ / shares	8.62
Non-vested balance at end of period (in dollars per share) | $ / shares	$ 9.36
Shares withheld for tax purposes (in shares)	170,673
Issuance of shares net of shares withheld (in shares)	329,716

Equity Compensation (401(k) Pla

Equity Compensation (401(k) Plan) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)shares
Defined Contribution Plan Disclosure [Line Items]
Maximum amount of employees' gross pay the employee may contribute (as a percent)	3.50%
Shares contributed (in shares) | shares	41,253
Expenses associated with contribution | $	$ 0.7
First 1% of employees' salary
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution (as a percent)	100.00%
Employees' gross pay for which the employer contributes a matching contribution (as a percent)	1.00%
Second 5% of employees' salary
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution (as a percent)	50.00%
Employees' gross pay for which the employer contributes a matching contribution (as a percent)	5.00%

Equity Compensation (Expense) (

Equity Compensation (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock options
Total stock-based compensation expense
Total stock-based compensation expense	$ 2,909	$ 2,127	$ 6,163	$ 3,950
Total unrecognized compensation cost related to non-vested stock option awards	4,200		$ 4,200
Weighted-average period over which unrecognized compensation cost will be recognized			1 year 3 months 18 days
Stock options | Cost of revenue
Total stock-based compensation expense
Total stock-based compensation expense	61	47	$ 119	90
Stock options | Research and development
Total stock-based compensation expense
Total stock-based compensation expense	1,050	890	2,179	1,704
Stock options | Sales and marketing
Total stock-based compensation expense
Total stock-based compensation expense	884	600	1,948	1,109
Stock options | General and administrative
Total stock-based compensation expense
Total stock-based compensation expense	914	$ 590	1,917	$ 1,047
Restricted stock units
Total stock-based compensation expense
Total unrecognized compensation cost related to non-vested restricted stock units	$ 11,900		$ 11,900
Weighted-average period over which unrecognized compensation cost will be recognized			2 years 1 month 6 days

Share Repurchases (Details)

Share Repurchases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	May 31, 2015
Equity, Class of Treasury Stock [Line Items]
Common stock authorized for repurchase	$ 5,900
Number of common stock repurchased (in shares)	119,007	427,646
Value of common stock repurchased	$ 1,821	$ 3,242
Maximum
Equity, Class of Treasury Stock [Line Items]
Common stock authorized for repurchase			$ 20,000

Commitments and Contingencies52

Commitments and Contingencies (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)claim	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)claim	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Operating Leases
Rental expense	$ 700,000	$ 600,000	$ 1,400,000	$ 1,200,000
Future minimum rental payments
2,017	1,707,000		1,707,000
2,018	2,258,000		2,258,000
2,019	628,000		628,000
2,020	196,000		196,000
2,021	30,000		30,000
Total	4,819,000		4,819,000
Purchase Commitments
Non-cancellable purchase commitments	44,300,000		44,300,000
Indemnification agreements
Indemnification
Accrued liability	$ 0		$ 0
Number of outstanding claims | claim	0		0
Minimum
Operating Leases
Extension term of leases			P3Y
Maximum
Operating Leases
Extension term of leases			P5Y
Pakedge Device And Software Inc. | General and administrative
Future minimum rental payments
Expense due to loss on vacated facility			$ 100,000		$ 400,000