Document and Entity Information
Document and Entity Information | 9 Months Ended |
Oct. 31, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Oct. 31, 2015 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | AMBA |
Entity Registrant Name | AMBARELLA INC |
Entity Central Index Key | 1,280,263 |
Current Fiscal Year End Date | --01-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 32,049,374 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 236,465 | $ 170,291 |
Marketable securities | 40,255 | 37,703 |
Accounts receivable, net | 46,282 | 40,180 |
Inventories | 22,788 | 21,693 |
Restricted cash | 8 | 8 |
Deferred tax assets, current | 1,990 | 1,990 |
Prepaid expenses and other current assets | 3,591 | 3,506 |
Total current assets | 351,379 | 275,371 |
Property and equipment, net | 3,215 | 3,075 |
Deferred tax assets, non-current | 3,955 | 3,936 |
Intangible assets, net | 4,124 | 0 |
Goodwill | 26,601 | 0 |
Other assets | 2,018 | 1,902 |
Total assets | 391,292 | 284,284 |
Current liabilities: | ||
Accounts payable | 22,621 | 21,036 |
Accrued liabilities | 18,324 | 18,699 |
Income taxes payable | 1,555 | 748 |
Deferred tax liabilities, current | 85 | 92 |
Deferred revenue, current | 6,944 | 4,907 |
Total current liabilities | 49,529 | 45,482 |
Deferred revenue, non-current | 0 | 198 |
Other long-term liabilities | 9,394 | 1,393 |
Total liabilities | 58,923 | 47,073 |
Commitments and contingencies (Note 13) | 0 | 0 |
Shareholders' equity: | ||
Preference shares, $0.00045 par value per share, 20,000,000 shares authorized and no shares issued and outstanding at October 31, 2015 and January 31, 2015, respectively | 0 | 0 |
Ordinary shares, $0.00045 par value per share, 200,000,000 shares authorized at October 31, 2015 and January 31, 2015, respectively; 32,049,374 shares issued and outstanding at October 31, 2015; 30,837,529 shares issued and outstanding at January 31, 2015 | 14 | 14 |
Additional paid-in capital | 164,324 | 140,564 |
Accumulated other comprehensive loss | (15) | (1) |
Retained earnings | 168,046 | 96,634 |
Total shareholders’ equity | 332,369 | 237,211 |
Total liabilities and shareholders' equity | $ 391,292 | $ 284,284 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 31, 2015 | Jan. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Preference shares, par value | $ 0.00045 | $ 0.00045 |
Preference shares, shares authorized | 20,000,000 | 20,000,000 |
Preference shares, shares issued | 0 | 0 |
Preference shares, shares outstanding | 0 | 0 |
Ordinary shares, par value | $ 0.00045 | $ 0.00045 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 32,049,374 | 30,837,529 |
Ordinary shares, shares outstanding | 32,049,374 | 30,837,529 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 93,200 | $ 65,689 | $ 248,406 | $ 153,578 |
Cost of revenue | 31,938 | 24,130 | 86,378 | 55,887 |
Gross profit | 61,262 | 41,559 | 162,028 | 97,691 |
Operating expenses: | ||||
Research and development | 22,062 | 15,584 | 59,485 | 41,995 |
Selling, general and administrative | 8,873 | 7,324 | 26,970 | 20,954 |
Total operating expenses | 30,935 | 22,908 | 86,455 | 62,949 |
Income from operations | 30,327 | 18,651 | 75,573 | 34,742 |
Other income | 169 | 40 | 323 | 128 |
Income before income taxes | 30,496 | 18,691 | 75,896 | 34,870 |
Provision for income taxes | 1,035 | 364 | 4,484 | 1,973 |
Net income | $ 29,461 | $ 18,327 | $ 71,412 | $ 32,897 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | $ 0.93 | $ 0.61 | $ 2.27 | $ 1.12 |
Diluted | $ 0.87 | $ 0.57 | $ 2.12 | $ 1.03 |
Weighted-average shares used to compute net income per share attributable to ordinary shareholders: | ||||
Basic | 31,815,588 | 30,006,896 | 31,476,668 | 29,467,178 |
Diluted | 33,899,202 | 32,382,526 | 33,758,541 | 32,014,373 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 29,461 | $ 18,327 | $ 71,412 | $ 32,897 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on investments | 9 | 7 | (15) | (14) |
Other comprehensive income (loss), net of tax | 9 | 7 | (15) | (14) |
Comprehensive income | $ 29,470 | $ 18,334 | $ 71,397 | $ 32,883 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 71,412 | $ 32,897 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property and equipment | 1,164 | 963 |
Amortization/accretion of marketable securities | 415 | 475 |
Loss on disposal of long-lived assets | 12 | 16 |
Stock-based compensation | 19,548 | 10,107 |
Excess income tax benefits associated with stock-based compensation | 0 | (451) |
Other non-cash items, net | 127 | (20) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,612) | (22,128) |
Inventories | (994) | (4,387) |
Prepaid expenses and other current assets | 13 | 740 |
Deferred tax assets | (19) | (789) |
Other assets | (18) | 226 |
Accounts payable | 1,566 | 12,509 |
Accrued liabilities | 2,820 | 3,494 |
Income taxes payable | 1,012 | 1,801 |
Deferred tax liabilities | (7) | 0 |
Deferred revenue | 1,806 | 347 |
Net cash provided by operating activities | 93,245 | 35,800 |
Cash flows from investing activities: | ||
Acquisition, net of cash acquired | (29,905) | 0 |
Investment in a private company | 0 | (290) |
Purchase of investments | (45,957) | (47,417) |
Sales of investments | 17,732 | 657 |
Maturities of investments | 25,118 | 6,340 |
Purchase of property and equipment | (1,289) | (1,117) |
Net cash used in investing activities | (34,301) | (41,827) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options and employee stock purchase plan | 7,230 | 8,759 |
Excess income tax benefits associated with stock-based compensation | 0 | 451 |
Net cash provided by financing activities | 7,230 | 9,210 |
Net increase (decrease) in cash and cash equivalents | 66,174 | 3,183 |
Cash and cash equivalents at beginning of period | 170,291 | 143,394 |
Cash and cash equivalents at end of period | 236,465 | 146,577 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 831 | 551 |
Supplemental disclosure of noncash investing activities: | ||
Increase in accrued liabilities related to non-monetary assets purchases | $ 109 | $ 49 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization Ambarella, Inc. (the “Company”) was incorporated in the Cayman Islands on January 15, 2004. The Company is a developer of semiconductor processing solutions for video that enable high-definition video capture, sharing and display. The Company combines its processor design capabilities with its expertise in video and image processing, algorithms and software to provide a technology platform that is designed to be easily scalable across multiple applications and enable rapid and efficient product development. The Company’s system-on-a-chip, or SoC, designs fully integrate high-definition video processing, image processing, audio processing and system functions onto a single chip, delivering exceptional video and image quality, differentiated functionality and low power consumption. The Company sells its solutions to leading original design manufacturers, or ODMs, and original equipment manufacturers, or OEMs, globally. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. The accounting policies are described in the “Notes to Consolidated Financial Statements” in the Annual Report on Form 10-K for the 2015 fiscal year filed with the SEC on March 30, 2015 (the “Form 10-K”) and updated, as necessary, in this Form 10-Q. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair statement have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Form 10-K. Basis of Consolidation The Company’s fiscal year ends on January 31. The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in conformity with U.S. GAAP. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Actual results could differ from those estimates. On an ongoing basis, management evaluates its estimates and assumptions, including those related to (i) the collectability of accounts receivable; (ii) write down of excess and obsolete inventories; (iii) intangible assets and goodwill; (iv) the estimated useful lives of long-lived assets; (v) impairment of long-lived assets and financial instruments; (vi) warranty obligations; (vii) the valuation of stock-based compensation awards and financial instruments; (viii) the probability of performance objectives achievement; (ix) the realization of tax assets and estimates of tax liabilities, including reserves for uncertain tax positions; and (x) the recognition and disclosure of contingent liabilities. These estimates and assumptions are based on historical experience and on various other factors which the Company believes to be reasonable under the circumstances. The company may engage third-party valuation specialists to assist with estimates related to the valuation of financial instruments and assets associated with various contractual arrangements. Such estimates often require the selection of appropriate valuation methodologies and significant judgment. Actual results could differ from these estimates under different assumptions or circumstances. Concentration of Risk The Company’s products are manufactured, assembled and tested by third-party contractors located primarily in Asia. The Company does not have long-term agreements with these contractors. A significant disruption in the operations of one or more of these contractors would impact the production of the Company’s products which could have a material adverse effect on its business, financial condition and results of operations. A substantial portion of the Company’s revenue is derived from sales through its logistics provider, Wintech Microelectronics Co., Ltd., or Wintech, which serves as its non-exclusive sales representative in Asia other than Japan, and through one large direct ODM customer, Chicony Electronics Co., Ltd., or Chicony. Termination of the relationship with Wintech could result in a temporary or permanent loss of revenue and obligation to repurchase unsold product. Furthermore, any credit issues from these two customers could impair their abilities to make timely payment to the Company. See Note 14 for additional information regarding concentration with these two customers. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company maintains its cash primarily in checking and money market accounts with reputable financial institutions. Cash deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. The Company has not experienced any material losses on deposits of its cash. The cash equivalents and marketable securities consist primarily of money market funds, asset-backed securities, commercial paper, U.S. government securities, agency bonds and debt securities of corporations which management assesses to be highly liquid, in order to limit the exposure of each investment. The Company does not hold or issue financial instruments for trading purposes. The Company performs ongoing credit evaluations for each of its customers and adjusts credit limits based upon payment history and the customer’s credit worthiness. The Company regularly monitors collections and payments from its customers. Cash Equivalents and Marketable Securities The Company considers all highly liquid investments with original maturities of less than three months at the time of purchase to be cash equivalents. Investments that are highly liquid with original maturities at the time of purchase greater than three months are considered as marketable securities. The Company classifies these investments as “available-for-sale” securities carried at fair value, based on quoted market prices of similar assets, with the unrealized gains or losses reported, net of tax, as a separate component of shareholders’ equity and included in accumulated other comprehensive income (loss) in the condensed consolidated balance sheets. The amortization of security premiums and accretion of discounts and the realized gains and losses are both recorded in other income (loss), net in the condensed consolidated statements of operations. The Company reviews its investments for possible other-than-temporary impairments on a regular basis. If any loss on investment is believed to be other-than-temporary, a charge will be recorded and a new cost basis in the investment will be established. In evaluating whether a loss on a security is other-than-temporary, the Company considers the following factors: 1) general market conditions, 2) the duration and extent to which the fair value is less than cost, 3) the Company’s intent and ability to hold the investment. For securities in an unrealized loss position which is deemed to be other-than-temporary, the difference between the security’s then-current amortized cost basis and fair value is separated into (i) the amount of the impairment related to the credit loss (i.e., the credit loss component) and (ii) the amount of the impairment related to all other factors (i.e., the non-credit loss component). The credit loss component is recognized in earnings. The non-credit loss component is recognized in accumulated other comprehensive loss. Due to the relative short term nature of the investments, there have been no other-than-temporary impairments recorded to date. Inventories The Company records inventories at the lower of cost or market. The cost includes materials and other production costs and is computed using standard cost on a first-in, first-out basis. Inventory reserves are recorded for estimated obsolescence or unmarketable inventories based on forecast of future demand and market conditions. If actual market conditions are less favorable than projected, or if future demand for the Company’s products decrease, additional inventory write-downs may be required. Once inventory is written down, a new accounting cost basis is established and, accordingly, any associated reserve is not reversed until the inventory is sold or scrapped. There have been no material inventory losses recognized to date. Business Combinations and Intangible Assets The Company allocates the fair value of purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets, management makes significant estimates and assumptions. Critical estimates in valuing certain intangible assets include, but are not limited to, replacement cost. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Goodwill and In-Process Research and Development Goodwill and in-process research and development (IPR&D) are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. The Company has a single reporting unit for goodwill impairment test purposes based on its business and reporting structure. The Company does not amortize goodwill. Acquired IPR&D is capitalized at fair value as an intangible asset and amortization commences upon completion of the underlying projects. . Revenue Recognition The Company generates revenue from the sales of its SoCs to OEMs or ODMs, either directly or through logistics providers. Revenue from sales directly to OEMs and ODMs is recognized upon shipment provided persuasive evidence of an arrangement exists, legal title to the products and risk of ownership have transferred, the fee is fixed or determinable, and collection of the resulting receivable is reasonably assured. The Company provides its logistics providers with the rights to return excess levels of inventory and to future price adjustments. Given the inability to reasonably estimate these price changes and returns, revenue and costs related to shipments to logistics providers are deferred until the Company has received notification from its logistics providers that they have sold the Company’s products. Information reported by the Company’s logistics providers includes product resale price, quantity and end customer shipment information as well as remaining inventory on hand. At the time of shipment to a logistics provider, the Company records a trade receivable as there is a legally enforceable right to receive payment, reduces inventory for the value of goods shipped as legal title has passed to the logistics provider and defers the related margin as deferred revenue in the condensed consolidated balance sheets. Any price adjustments are recorded as a change to deferred revenue at the time the adjustments are agreed upon. Arrangements with certain OEM customers provide for pricing that is dependent upon the end products into which the Company’s SoCs are used. These arrangements may also entitle the Company to a share of the product margin ultimately realized by the OEM. The minimum guaranteed amount of revenue related to the sale of products subject to these arrangements is recognized when all other elements of revenue recognition are met. Any amounts at the date of shipment invoiced in excess of the minimum guaranteed contract price are deferred until the additional amounts the Company is entitled to are fixed or determinable. Additional amounts earned by the Company resulting from margin sharing arrangements and determination of the end products into which the products are ultimately incorporated are recognized when end customer sales volume is reported to the Company. The Company also enters into engineering service agreements with certain customers. These agreements may include multiple deliverables, such as software development services, licensing for intellectual properties and post-contract customer support, or PCS. The Company does not sell separately any of these components and does not have Vendor Specific Objective Evidence, or VSOE, for the deliverables. Accordingly, revenues from these agreements are deferred for any amounts billed until delivery of all the elements. If the agreements include PCS, the revenues are recognized ratably over the estimated supporting periods. Cost of Revenue Cost of revenue includes cost of materials, cost associated with packaging and assembly, testing and shipping, cost of personnel, stock-based compensation, logistics and quality assurance, warranty cost, royalty expense, write-downs of inventories and allocation of overhead. Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company applies authoritative guidance for the accounting for uncertainty in income taxes. The guidance requires that tax effects of a position be recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. Upon estimating the Company’s tax positions and tax benefits, the Company considered and evaluated numerous factors, which may require periodic adjustments and which may not reflect the final tax liabilities. The Company adjusts its financial statements to reflect only those tax positions that are more likely than not to be sustained under examination. As part of the process of preparing condensed consolidated financial statements, the Company is required to estimate its taxes in each of the jurisdictions in which it operates. The Company estimates actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets, which are included in the condensed consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the condensed consolidated statements of operations become deductible expenses under applicable income tax laws, or loss or credit carryforwards are utilized. In assessing whether deferred tax assets may be realized, management considers whether it is more likely than not that some portion or all of deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The Company makes estimates and judgments about its future taxable income based on assumptions that are consistent with its plans and estimates. Should the actual amounts differ from estimates, the amount of valuation allowance could be materially impacted. Any adjustment to the deferred tax asset valuation allowance would be recorded in the income statement for the periods in which the adjustment is determined to be required. Net Income Per Ordinary Share The Company applies the two-class method to calculate and present net income per ordinary share. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Participating securities are defined as securities that may participate in undistributed earnings with ordinary shares, whether that participation is conditioned upon the occurrence of a specified event or not. Basic net income per ordinary share is computed by dividing net income allocable to ordinary shares by the weighted-average number of ordinary shares outstanding for the period. Diluted net income per ordinary share is computed by dividing net income allocable to ordinary shares and income allocable to participating securities, to the extent they are dilutive, by the weighted-average number of ordinary shares outstanding, including the dilutive effects of participating securities on an if-converted basis plus the dilutive effects of ordinary shares. The Company’s potential dilutive ordinary share equivalents consist of incremental ordinary shares issuable upon the exercise of options, upon the issuance of shares pursuant to the Employee Stock Purchase Plan, or ESPP, and upon release of vested restricted stock units. The Company performs an assessment as to whether instruments granted in stock-based payment transactions are participating securities. Stock-based payment awards that have not yet vested meet the definition of a participating security provided the right to receive the dividend is non-forfeitable and non-contingent. These participating securities should be included in the computation of basic net income per ordinary share under the two-class method. The Company has concluded that its non-vested early-exercised options meet the definition of a participating security and should be included in the computation of basic net income per ordinary share. Comprehensive Income (Loss) Comprehensive income (loss) includes unrealized gains or losses from available-for-sale securities that are excluded from net income. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance clarifies the principles and develops a common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (the “IFRS”). Under the new guidance, an entity is required to recognize an amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In connection with each annual and interim period, management is required to assess whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance date, and to provide related footnote disclosures in certain circumstances. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. This ASU is not expected to have an impact on the Company’s financial statements or disclosures. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU No. 2015-05 provides the guidance of the accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a license to internal-use software, then the entity should account for the software license consistent with the acquisition of internal-use software. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract. The new guidance is effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. An entity can elect to adopt the guidance either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. This ASU is not expected to have an impact on the Company’s financial statements or disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. The new guidance changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. It applies to entities that measure inventory using a method other than last-in, first-out (LIFO) and the retail inventory method (RIM). The new guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adoption on its financial position, results of operations and disclosures. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. To simplify the presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction – that is, companies are still prohibited j . |
Financial Instruments and Fair
Financial Instruments and Fair Value | 9 Months Ended |
Oct. 31, 2015 | |
Investments All Other Investments [Abstract] | |
Financial Instruments and Fair Value | 2. Financial Instruments and Fair Value Beginning in fiscal year 2015, the Company invested a portion of its cash in debt securities that are denominated in United States dollars. The investment portfolio consists of money market funds, asset-backed securities, commercial paper, U.S. government securities, agency bonds and debt securities of corporations. All of the investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets. The following table summarizes the investments as of October 31, 2015 and January 31, 2015: As of October 31, 2015 Amortized Unrealized Unrealized Losses Fair Value (in thousands) Money market funds $ 41 $ — $ — $ 41 Commercial paper 2,145 — — 2,145 Corporate bonds 28,549 6 (17 ) 28,538 Asset-backed securities 4,596 — (1 ) 4,595 U.S. government securities 2,911 — (3 ) 2,908 Agency bonds 2,069 — — 2,069 Total cash equivalents and marketable securities $ 40,311 $ 6 $ (21 ) $ 40,296 As of January 31, 2015 Amortized Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 2,427 $ — $ — $ 2,427 Commercial paper 1,497 — — 1,497 Corporate bonds 32,356 9 (10 ) 32,355 Asset-backed securities 3,851 — — 3,851 Total cash equivalents and marketable securities $ 40,131 $ 9 $ (10 ) $ 40,130 As of October 31, January (in thousands) Included in cash equivalents $ 41 $ 2,427 Included in marketable securities 40,255 37,703 Total cash equivalents and marketable securities $ 40,296 $ 40,130 The contractual maturities of the investments at October 31, 2015 and January 31, 2015 were as follows: As of October 31, January (in thousands) Due within one year $ 30,540 $ 37,559 Due within one to two years 9,756 2,571 Total cash equivalents and marketable securities $ 40,296 $ 40,130 The unrealized losses on the available-for-sale securities were caused by fluctuations in market value and interest rates as a result of the economic environment. As the decline in market value was attributable to changes in market conditions and not credit quality, and because the Company neither intended to sell nor was it more likely than not that it would be required to sell these investments prior to a recovery of par value, the Company did not consider these investments to be other-than temporarily impaired as of October 31, 2015. The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3—Unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The Company measures the fair value of money market funds using quoted prices in active markets for identical assets and classifies them within Level 1. The fair value of the Company’s investments in other debt securities are obtained based on quoted prices for similar asserts in active markets, or model driven valuations using significant inputs derived from or corroborated by observable market data and are classified within Level 2. The following table presents the fair value of the financial instruments measured on a recurring basis as of October 31, 2015 and January 31, 2015: As of October 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 41 $ 41 $ — $ — Commercial paper 2,145 — 2,145 — Corporate bonds 28,538 — 28,538 — Asset-backed securities 4,595 — 4,595 — U.S. government securities 2,908 — 2,908 — Agency bonds 2,069 — 2,069 — Total cash equivalents and marketable securities $ 40,296 $ 41 $ 40,255 $ — As of January 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 2,427 $ 2,427 $ — $ — Commercial paper 1,497 — 1,497 — Corporate bonds 32,355 — 32,355 — Asset-backed securities 3,851 — 3,851 — Total cash equivalents and marketable securities $ 40,130 $ 2,427 $ 37,703 $ — |
Inventories
Inventories | 9 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventory at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Work-in-progress $ 12,696 $ 13,805 Finished goods 10,092 7,888 Total $ 22,788 $ 21,693 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net Depreciation expense was approximately $0.4 million and $0.3 million for the three months ended October 31, 2015 and 2014, respectively. Depreciation expense was approximately $1.2 million and $1.0 million for the nine months ended October 31, 2015 and 2014, respectively. Property and equipment at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Computer equipment and software $ 6,166 $ 5,310 Machinery and equipment 2,599 2,234 Furniture and fixtures 473 456 Leasehold improvements 1,249 1,215 Construction in progress 155 64 10,642 9,279 Less: accumulated depreciation and amortization (7,427 ) (6,204 ) Total property and equipment, net $ 3,215 $ 3,075 |
Acquisition
Acquisition | 9 Months Ended |
Oct. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | 5. Acquisition On June 25, 2015, the Company completed the acquisition of VisLab S.r.l. (“VisLab”), a privately held Italian company that develops computer vision and intelligent control systems for automotive and other commercial applications, including Advanced Driver Assistance Systems and several generations of autonomous vehicle driving systems, for $30.0 million in cash. This acquisition will enable extensive and robust computer vision support in future solutions targeting the Company's core markets, including automotive, IP security, wearable, and flying cameras. Of the total purchase price of $30.0 million, $4.1 million was attributed to intangible assets, $25.3 million was attributed to goodwill, and $0.6 million was attributed to net assets acquired. The goodwill represents the excess value of the purchase price over the aggregate fair value of the tangible and intangible assets acquired. The goodwill primarily represents the intangible assets that do not qualify for separate recognition and the future development initiatives of the assembled workforces. Goodwill is not expected to be deductible for tax purposes. Pro forma result of operations for this acquisition has not been presented because it is not material to the consolidated results of operations, either individually or in aggregate. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Oct. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets On June 25, 2015, the Company completed the acquisition of VisLab. As a result, there were $25.3 million of goodwill and $4.1 million of intangible assets recorded in the condensed consolidated balance sheet. A deferred tax liability of $1.3 million related to the intangible assets was recorded to account for the difference between financial reporting and tax basis at the acquisition date, with an addition to goodwill. The Company does not amortize goodwill. The intangible assets primarily consist of IPR&D. Acquired IPR&D is capitalized at fair value as an intangible asset and amortization commences upon completion of the underlying projects. When a project underlying reported IPR&D is completed, the corresponding amount of IPR&D is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life . |
Accrued Liabilities and Other L
Accrued Liabilities and Other Long-Term Liabilities | 9 Months Ended |
Oct. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities And Other Long Term Liabilities | 7. Accrued Liabilities and Other Long-Term Liabilities Accrued liabilities at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Accrued employee compensation $ 12,329 $ 11,318 Accrued warranty 143 203 Accrued rebates 657 254 Accrued product development costs 3,683 5,004 Other accrued liabilities 1,512 1,920 Total accrued liabilities $ 18,324 $ 18,699 During the nine months ended October 31, 2015, the Company recorded a deferred tax liability of $1.3 million related to acquired intangible assets and a liability for unrecognized tax benefits of $6.7 million. As of October 31, 2015 and January 31, 2015, total other long-term liabilities were approximately $9.4 million and $1.4 million, respectively. |
Deferred Revenue and Deferred C
Deferred Revenue and Deferred Cost | 9 Months Ended |
Oct. 31, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue and Deferred Cost | 8. Deferred Revenue and Deferred Cost Deferred revenue and related cost at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Deferred revenue on product shipments $ 5,932 $ 4,663 Deferred revenue from licenses & services 2,865 1,610 Deferred cost of revenue on product shipments (1,853 ) (1,168 ) Total deferred revenue, net $ 6,944 $ 5,105 |
Capital Stock
Capital Stock | 9 Months Ended |
Oct. 31, 2015 | |
Capital [Abstract] | |
Capital Stock | 9. Capital Stock Preference shares After completion of the Company’s initial public offering, or IPO, a total of 20,000,000 preference shares, with a $0.00045 par value per share, were authorized. There were no preference shares issued and outstanding as of October 31, 2015 and January 31, 2015, respectively. Ordinary shares As of October 31, 2015 and January 31, 2015, a total of 200,000,000 ordinary shares were authorized. On February 1, 2015, the Company added 1,387,689 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the 2012 Equity Incentive Plan, or EIP. Pursuant to such provision, on February 1st of each fiscal year, the number of ordinary shares reserved for issuance under the EIP is automatically increased by a number equal to the lesser of (i) 3,500,000 ordinary shares, (ii) four and one half percent (4.5%) of the aggregate number of ordinary shares outstanding on January 31st of the preceding fiscal year, or (iii) a lesser number of shares that may be determined by the Company’s Board of Directors. On February 1, 2015, the Company added 385,469 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the 2012 Employee Stock Purchase Plan, or ESPP. Pursuant to such provision, on February 1st of each fiscal year, the number of ordinary shares reserved for issuance under the ESPP is automatically increased by a number equal to the lesser of (i) 1,500,000 ordinary shares, (ii) one and one quarter percent (1.25%) of the aggregate number of ordinary shares outstanding on such date, or (iii) an amount determined by the Company’s Board of Directors or a duly authorized committee of the Board of Directors. As of October 31, 2015 and January 31, 2015, the following ordinary shares were reserved for future issuance under the EIP and ESPP: As of October 31, 2015 January 31, 2015 Shares reserved for options and restricted stock units 5,311,460 5,055,845 Shares reserved for employee stock purchase plan 974,273 667,990 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 10. Stock-based Compensation The following table presents the classification of stock-based compensation for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) Stock-based compensation: Cost of revenue $ 157 $ 97 $ 408 $ 214 Research and development 5,201 2,363 11,966 5,582 Selling, general and administrative 2,587 1,824 7,174 4,311 Total stock-based compensation $ 7,945 $ 4,284 $ 19,548 $ 10,107 During the three months ended October 31, 2015, the Company granted 84,239 shares of restricted stock awards. As of October 31, 2015, total unrecognized compensation cost related to unvested stock options was $12.4 million and is expected to be recognized over a weighted-average period of 2.59 years. Total unrecognized compensation cost related to unvested restricted stock units was $111.4 million and is expected to be recognized over a weighted-average period of 3.33 years. Total unrecognized compensation cost related to unvested restricted stock awards was $4.7 million and is expected to be recognized over a weighted-average period of 3.87 years. The following table sets forth the weighted-average assumptions used to estimate the fair value of stock options and employee stock purchase plan awards for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 Stock Options: Volatility 55 % 63 % 57 % 64 % Risk-free interest rate 1.70 % 1.94 % 1.73 % 1.94 % Expected term (years) 6.08 5.97 6.08 6.00 Dividend yield 0 % 0 % 0 % 0 % Employee stock purchase plan awards: Volatility 63 % 40 % 63 % 40 % Risk-free interest rate 0.27 % 0.05 % 0.21 % 0.05 % Expected term (years) 0.5 0.5 0.5 0.5 Dividend yield 0 % 0 % 0 % 0 % The following table summarizes stock option activities for the nine months ended October 31, 2015: Option Outstanding Weighted- Total Average Weighted- Value of Remaining Aggregate Weighted- Average options Contractual Intrinsic Average Grant-date Exercised Term Value Shares Exercise Fair Value (in (in years) (in Outstanding at January 31, 2015 2,281,909 $ 13.00 Granted 163,200 73.06 $ 39.79 Exercised (509,933 ) 9.28 $ 35,157 Forfeited (31,081 ) 28.91 Outstanding at October 31, 2015 1,904,095 18.89 6.08 $ 62,057 Exercisable at October 31, 2015 1,363,586 $ 9.41 5.04 $ 54,587 Vested and expected to vest at October 31, 2015 1,868,541 $ 18.32 6.03 $ 61,700 Exercisable shares include options with early exercise rights. The vested and expected-to-vest options are calculated based on vesting schedule of each grant as of the reporting date. The intrinsic value of options outstanding, exercisable and expected-to-vest options are calculated based on the difference between the fair market value of the Company’s ordinary shares on the reporting date and the exercise price. The closing price of the Company’s ordinary shares was $49.44 on October 31, 2015, as reported by The NASDAQ Global Market. The intrinsic value of exercised options is calculated based on the difference between the fair market value of the Company’s ordinary shares on the exercise date and the exercise price. The following table summarizes restricted stock activities for the periods indicated: Weighted- Average Grant-Date Shares Fair Value Unvested at January 31, 2015 1,980,448 $ 26.82 Granted 1,264,079 66.57 Vested (538,487 ) 25.20 Forfeited (24,439 ) 38.44 Unvested at October 31, 2015 2,681,601 $ 45.78 As of October 31, 2015, the aggregate intrinsic value of unvested restricted stock was $132.6 million. Non-employee Stock-based Compensation The fair value of awards granted to non-employees is determined on the date of grant and remeasured at the end of each reporting period until such awards vest. The non-employee stock-based compensation was not material for the nine months ended October 31, 2015 and 2014, respectively. |
Net Income Per Ordinary Share
Net Income Per Ordinary Share | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Ordinary Share | 11. Net Income Per Ordinary Share The following table sets forth the computation of basic and diluted net income per ordinary share for the periods indicated: Three Nine October 31, October 31, 2015 2014 2015 2014 (in thousands, except share and per share data) Numerator: Net income $ 29,461 $ 18,327 $ 71,412 $ 32,897 Less: amount allocable to unvested early exercised options — (1 ) — (8 ) Net income allocable to ordinary shareholders - basic $ 29,461 $ 18,326 $ 71,412 $ 32,889 Undistributed earnings reallocated to ordinary shareholders — — — 1 Net income allocable to ordinary shareholders - diluted $ 29,461 $ 18,326 $ 71,412 $ 32,890 Denominator: Weighted-average ordinary shares outstanding 31,815,588 30,009,218 31,476,724 29,474,364 Less: weighted-average unvested early exercised options subject to repurchase — (2,322 ) (56 ) (7,186 ) Weighted-average ordinary shares - basic 31,815,588 30,006,896 31,476,668 29,467,178 Effect of potentially dilutive securities: Employee stock options 1,199,065 1,719,140 1,316,228 1,902,988 Restricted stock 881,605 646,661 957,263 633,799 Employee stock purchase plan 2,944 9,829 8,382 10,408 Weighted-average ordinary shares - diluted 33,899,202 32,382,526 33,758,541 32,014,373 Net income per ordinary share: Basic $ 0.93 $ 0.61 $ 2.27 $ 1.12 Diluted $ 0.87 $ 0.57 $ 2.12 $ 1.03 Earnings per share (EPS) of ordinary shares was calculated using the two-class method required for participating securities. Net income has been allocated to the ordinary shares and participating securities based on their respective rights to share in net income and weighted-average outstanding during the periods. The following weighted-average potentially dilutive securities were excluded from the computation of diluted net income per ordinary share as their effect would have been antidilutive: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 Options to purchase ordinary shares 135,617 316,208 73,377 209,769 Restricted stock 237,285 586,474 110,096 223,602 Employee stock purchase plan 22,865 50,111 12,098 48,147 Early exercised options subject to repurchase — 2,322 56 7,186 395,767 955,115 195,627 488,704 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The following table provides details of income taxes for the periods indicated: Three Months Ended Nine Months Ended October 31, October 31, 2015 2014 2015 2014 (in thousands) Income before income taxes $ 30,496 $ 18,691 $ 75,896 $ 34,870 Provision for income taxes 1,035 364 4,484 1,973 Effective tax rate 3.4 % 2.0 % 5.9 % 5.7 % The Company files federal and state income tax returns in the United States and in various foreign jurisdictions. The tax years 2013 to 2015 remain open to examination by U.S. federal tax authorities. The tax years 2004 to 2015 remain open to examination by U.S. state tax authorities. The tax years 2010 to 2015 remain open to examination by material foreign tax authorities. The Company is subject to ongoing tax examinations of its tax returns by the Internal Revenue Service and other tax authorities in various jurisdictions. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of October 31, 2015, the gross amount of unrecognized tax benefits was approximately $24.1 million. If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities could result in tax benefits being recognized in the period in which the Company determines the liabilities are no longer necessary. The Company does not anticipate changes to its uncertain tax positions during the next twelve months. On July 27, 2015, in Altera Corp. v. Commissioner |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies In August 2015, the Company entered into an amendment to the lease agreement for its headquarters located in Santa Clara, California to extend the term to May 2020, among other things. The Company leases its principal facilities and has time-based software licenses under operating leases. Net operating lease expenses for the three months ended October 31, 2015 and 2014 were approximately $1.6 million and $1.5 million, respectively. Net operating lease expenses for the nine months ended October 31, 2015 and 2014 were approximately $5.2 million and $4.3 million, respectively. Future annual minimum payments under these operating leases with initial lease terms in excess of one year are as follows: As of October 31, 2015 Fiscal Year (in thousands) 2016 $ 2,106 2017 5,678 2018 2,016 2019 1,461 2020 1,536 Total future annual minimum lease payments $ 12,797 Contract Manufacturer Commitments The Company’s components and products are procured and built by independent contract manufacturers based on sales forecasts. These forecasts include estimates of future demand, historical trends, analysis of sales and marketing activities, and adjustment of overall market conditions. The Company regularly issues purchase orders to independent contract manufacturers which are cancelable only upon the agreement between the Company and the third-party. As of October 31, 2015 and January 31, 2015, total manufacturing purchase commitments were approximately $23.4 million and $27.5 million, respectively. Indemnification The Company, from time to time, in the normal course of business, indemnifies certain vendors with whom it enters into contractual relationships. The Company has agreed to hold the other party harmless against third-party claims in connection with the Company’s products. The Company also indemnifies certain customers against third party claims related to certain intellectual property matters. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the unique facts and circumstances that are likely to be involved in each particular claim. The Company has not made payments under these obligations and no liabilities have been recorded for these obligations on the condensed consolidated balance sheets as of October 31, 2015 and January 31, 2015, respectively. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. Segment Reporting The Company operates in one reportable segment related to the development and sales of low-power, high-definition video products. The Chief Executive Officer of the Company has been identified as the Chief Operating Decision Maker (the “CODM”) and manages the Company’s operations as a whole and for the purpose of evaluating financial performance and allocating resources, the CODM reviews financial information presented on a consolidated basis accompanied by information by customer and geographic region. Geographic Revenue The following table sets forth the Company’s revenue by geographic region for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) Hong Kong $ 84,053 $ 61,134 $ 228,371 $ 138,527 Asia Pacific 1,015 420 2,331 1,638 United States 2,190 1,328 4,756 5,196 North America other than United States 3,682 1,046 6,985 3,762 Europe 2,260 1,761 5,963 4,455 Total revenue $ 93,200 $ 65,689 $ 248,406 $ 153,578 As of October 31, 2015, substantially all of the Company’s property and equipment, net were located in the United States and Asia Pacific region with approximate net amount of $1.7 million and $1.2 million, respectively. Major Customers The customers representing 10% or more of revenue and accounts receivable were Wintech, the Company’s logistic provider, and Chicony, a direct ODM customer, which combined accounted for approximately 89% and 92% of total revenue for the three months ended October 31, 2015 and 2014, respectively, and approximately 90% and 89% of total revenue for the nine months ended October 31, 2015 and 2014, respectively. Accounts receivable with these two customers combined accounted for approximately $42.9 million and $36.2 million as of October 31, 2015 and January 31, 2015, respectively. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 15. Related-Party Transactions The Company considers an entity to be a related party if it owns more than 10% of the Company’s total voting stock at the end of each reporting period or if an officer or employee of an entity also serves on the Company’s board of directors or if it is a significant shareholder and has material business transactions with the Company. In fiscal year 2015, the Company added additional software license commitments to its existing software license agreement with Cadence Design Systems, Inc. (“Cadence”). A member of the Company’s Board of Directors is also the Chief Executive Officer, President and a Director of Cadence. Under these license commitments, the Company committed to pay an aggregate amount of $7.5 million payable through January 2017. The Company paid $0.7 million and $0.6 million under these agreements for the three months ended October 31, 2015 and 2014, respectively. The Company paid $2.1 million and $1.6 million under these agreements for the nine months ended October 31, 2015 and 2014, respectively. License expenses related to these agreements included in research and development cost were approximately $0.6 million for the three months ended October 31, 2015 and 2014, respectively. License expenses related to these agreements included in research and development cost were approximately $2.0 million and $1.3 million for the nine months ended October 31, 2015 and 2014, respectively. In addition to the related party transactions noted above, the Company recognized revenue from sales to Wintech, the Company’s logistics provider. Wintech, along with an affiliate, owned approximately 4.6% of the Company’s voting stock as of January 31, 2013, but is no longer a significant shareholder of the Company. The Company recognized revenue from sales to Wintech of approximately $63.1 million and $33.6 million for the three months ended October 31, 2015 and 2014, respectively. The Company recognized revenue from sales to Wintech of approximately $168.2 million and $92.1 million for the nine months ended October 31, 2015 and 2014, respectively. As of October 31, 2015 and January 31, 2015, the Company had receivables from Wintech of approximately $23.6 million and $12.1 million, respectively. |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization | Organization Ambarella, Inc. (the “Company”) was incorporated in the Cayman Islands on January 15, 2004. The Company is a developer of semiconductor processing solutions for video that enable high-definition video capture, sharing and display. The Company combines its processor design capabilities with its expertise in video and image processing, algorithms and software to provide a technology platform that is designed to be easily scalable across multiple applications and enable rapid and efficient product development. The Company’s system-on-a-chip, or SoC, designs fully integrate high-definition video processing, image processing, audio processing and system functions onto a single chip, delivering exceptional video and image quality, differentiated functionality and low power consumption. The Company sells its solutions to leading original design manufacturers, or ODMs, and original equipment manufacturers, or OEMs, globally. |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. The accounting policies are described in the “Notes to Consolidated Financial Statements” in the Annual Report on Form 10-K for the 2015 fiscal year filed with the SEC on March 30, 2015 (the “Form 10-K”) and updated, as necessary, in this Form 10-Q. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair statement have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Form 10-K. |
Basis of Consolidation | Basis of Consolidation The Company’s fiscal year ends on January 31. The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in conformity with U.S. GAAP. All intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Actual results could differ from those estimates. On an ongoing basis, management evaluates its estimates and assumptions, including those related to (i) the collectability of accounts receivable; (ii) write down of excess and obsolete inventories; (iii) intangible assets and goodwill; (iv) the estimated useful lives of long-lived assets; (v) impairment of long-lived assets and financial instruments; (vi) warranty obligations; (vii) the valuation of stock-based compensation awards and financial instruments; (viii) the probability of performance objectives achievement; (ix) the realization of tax assets and estimates of tax liabilities, including reserves for uncertain tax positions; and (x) the recognition and disclosure of contingent liabilities. These estimates and assumptions are based on historical experience and on various other factors which the Company believes to be reasonable under the circumstances. The company may engage third-party valuation specialists to assist with estimates related to the valuation of financial instruments and assets associated with various contractual arrangements. Such estimates often require the selection of appropriate valuation methodologies and significant judgment. Actual results could differ from these estimates under different assumptions or circumstances. |
Concentration of Risk | Concentration of Risk The Company’s products are manufactured, assembled and tested by third-party contractors located primarily in Asia. The Company does not have long-term agreements with these contractors. A significant disruption in the operations of one or more of these contractors would impact the production of the Company’s products which could have a material adverse effect on its business, financial condition and results of operations. A substantial portion of the Company’s revenue is derived from sales through its logistics provider, Wintech Microelectronics Co., Ltd., or Wintech, which serves as its non-exclusive sales representative in Asia other than Japan, and through one large direct ODM customer, Chicony Electronics Co., Ltd., or Chicony. Termination of the relationship with Wintech could result in a temporary or permanent loss of revenue and obligation to repurchase unsold product. Furthermore, any credit issues from these two customers could impair their abilities to make timely payment to the Company. See Note 14 for additional information regarding concentration with these two customers. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company maintains its cash primarily in checking and money market accounts with reputable financial institutions. Cash deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. The Company has not experienced any material losses on deposits of its cash. The cash equivalents and marketable securities consist primarily of money market funds, asset-backed securities, commercial paper, U.S. government securities, agency bonds and debt securities of corporations which management assesses to be highly liquid, in order to limit the exposure of each investment. The Company does not hold or issue financial instruments for trading purposes. The Company performs ongoing credit evaluations for each of its customers and adjusts credit limits based upon payment history and the customer’s credit worthiness. The Company regularly monitors collections and payments from its customers. |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities The Company considers all highly liquid investments with original maturities of less than three months at the time of purchase to be cash equivalents. Investments that are highly liquid with original maturities at the time of purchase greater than three months are considered as marketable securities. The Company classifies these investments as “available-for-sale” securities carried at fair value, based on quoted market prices of similar assets, with the unrealized gains or losses reported, net of tax, as a separate component of shareholders’ equity and included in accumulated other comprehensive income (loss) in the condensed consolidated balance sheets. The amortization of security premiums and accretion of discounts and the realized gains and losses are both recorded in other income (loss), net in the condensed consolidated statements of operations. The Company reviews its investments for possible other-than-temporary impairments on a regular basis. If any loss on investment is believed to be other-than-temporary, a charge will be recorded and a new cost basis in the investment will be established. In evaluating whether a loss on a security is other-than-temporary, the Company considers the following factors: 1) general market conditions, 2) the duration and extent to which the fair value is less than cost, 3) the Company’s intent and ability to hold the investment. For securities in an unrealized loss position which is deemed to be other-than-temporary, the difference between the security’s then-current amortized cost basis and fair value is separated into (i) the amount of the impairment related to the credit loss (i.e., the credit loss component) and (ii) the amount of the impairment related to all other factors (i.e., the non-credit loss component). The credit loss component is recognized in earnings. The non-credit loss component is recognized in accumulated other comprehensive loss. Due to the relative short term nature of the investments, there have been no other-than-temporary impairments recorded to date. |
Inventories | Inventories The Company records inventories at the lower of cost or market. The cost includes materials and other production costs and is computed using standard cost on a first-in, first-out basis. Inventory reserves are recorded for estimated obsolescence or unmarketable inventories based on forecast of future demand and market conditions. If actual market conditions are less favorable than projected, or if future demand for the Company’s products decrease, additional inventory write-downs may be required. Once inventory is written down, a new accounting cost basis is established and, accordingly, any associated reserve is not reversed until the inventory is sold or scrapped. There have been no material inventory losses recognized to date. |
Business Combinations and Intangible Assets | Business Combinations and Intangible Assets The Company allocates the fair value of purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets, management makes significant estimates and assumptions. Critical estimates in valuing certain intangible assets include, but are not limited to, replacement cost. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. |
Goodwill and In-Process Research and Development | Goodwill and In-Process Research and Development Goodwill and in-process research and development (IPR&D) are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. The Company has a single reporting unit for goodwill impairment test purposes based on its business and reporting structure. The Company does not amortize goodwill. Acquired IPR&D is capitalized at fair value as an intangible asset and amortization commences upon completion of the underlying projects. . |
Revenue Recognition | Revenue Recognition The Company generates revenue from the sales of its SoCs to OEMs or ODMs, either directly or through logistics providers. Revenue from sales directly to OEMs and ODMs is recognized upon shipment provided persuasive evidence of an arrangement exists, legal title to the products and risk of ownership have transferred, the fee is fixed or determinable, and collection of the resulting receivable is reasonably assured. The Company provides its logistics providers with the rights to return excess levels of inventory and to future price adjustments. Given the inability to reasonably estimate these price changes and returns, revenue and costs related to shipments to logistics providers are deferred until the Company has received notification from its logistics providers that they have sold the Company’s products. Information reported by the Company’s logistics providers includes product resale price, quantity and end customer shipment information as well as remaining inventory on hand. At the time of shipment to a logistics provider, the Company records a trade receivable as there is a legally enforceable right to receive payment, reduces inventory for the value of goods shipped as legal title has passed to the logistics provider and defers the related margin as deferred revenue in the condensed consolidated balance sheets. Any price adjustments are recorded as a change to deferred revenue at the time the adjustments are agreed upon. Arrangements with certain OEM customers provide for pricing that is dependent upon the end products into which the Company’s SoCs are used. These arrangements may also entitle the Company to a share of the product margin ultimately realized by the OEM. The minimum guaranteed amount of revenue related to the sale of products subject to these arrangements is recognized when all other elements of revenue recognition are met. Any amounts at the date of shipment invoiced in excess of the minimum guaranteed contract price are deferred until the additional amounts the Company is entitled to are fixed or determinable. Additional amounts earned by the Company resulting from margin sharing arrangements and determination of the end products into which the products are ultimately incorporated are recognized when end customer sales volume is reported to the Company. The Company also enters into engineering service agreements with certain customers. These agreements may include multiple deliverables, such as software development services, licensing for intellectual properties and post-contract customer support, or PCS. The Company does not sell separately any of these components and does not have Vendor Specific Objective Evidence, or VSOE, for the deliverables. Accordingly, revenues from these agreements are deferred for any amounts billed until delivery of all the elements. If the agreements include PCS, the revenues are recognized ratably over the estimated supporting periods. |
Cost of Revenue | Cost of Revenue Cost of revenue includes cost of materials, cost associated with packaging and assembly, testing and shipping, cost of personnel, stock-based compensation, logistics and quality assurance, warranty cost, royalty expense, write-downs of inventories and allocation of overhead. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company applies authoritative guidance for the accounting for uncertainty in income taxes. The guidance requires that tax effects of a position be recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. Upon estimating the Company’s tax positions and tax benefits, the Company considered and evaluated numerous factors, which may require periodic adjustments and which may not reflect the final tax liabilities. The Company adjusts its financial statements to reflect only those tax positions that are more likely than not to be sustained under examination. As part of the process of preparing condensed consolidated financial statements, the Company is required to estimate its taxes in each of the jurisdictions in which it operates. The Company estimates actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets, which are included in the condensed consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the condensed consolidated statements of operations become deductible expenses under applicable income tax laws, or loss or credit carryforwards are utilized. In assessing whether deferred tax assets may be realized, management considers whether it is more likely than not that some portion or all of deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The Company makes estimates and judgments about its future taxable income based on assumptions that are consistent with its plans and estimates. Should the actual amounts differ from estimates, the amount of valuation allowance could be materially impacted. Any adjustment to the deferred tax asset valuation allowance would be recorded in the income statement for the periods in which the adjustment is determined to be required. |
Net Income Per Ordinary Share | Net Income Per Ordinary Share The Company applies the two-class method to calculate and present net income per ordinary share. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Participating securities are defined as securities that may participate in undistributed earnings with ordinary shares, whether that participation is conditioned upon the occurrence of a specified event or not. Basic net income per ordinary share is computed by dividing net income allocable to ordinary shares by the weighted-average number of ordinary shares outstanding for the period. Diluted net income per ordinary share is computed by dividing net income allocable to ordinary shares and income allocable to participating securities, to the extent they are dilutive, by the weighted-average number of ordinary shares outstanding, including the dilutive effects of participating securities on an if-converted basis plus the dilutive effects of ordinary shares. The Company’s potential dilutive ordinary share equivalents consist of incremental ordinary shares issuable upon the exercise of options, upon the issuance of shares pursuant to the Employee Stock Purchase Plan, or ESPP, and upon release of vested restricted stock units. The Company performs an assessment as to whether instruments granted in stock-based payment transactions are participating securities. Stock-based payment awards that have not yet vested meet the definition of a participating security provided the right to receive the dividend is non-forfeitable and non-contingent. These participating securities should be included in the computation of basic net income per ordinary share under the two-class method. The Company has concluded that its non-vested early-exercised options meet the definition of a participating security and should be included in the computation of basic net income per ordinary share. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes unrealized gains or losses from available-for-sale securities that are excluded from net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance clarifies the principles and develops a common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (the “IFRS”). Under the new guidance, an entity is required to recognize an amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In connection with each annual and interim period, management is required to assess whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance date, and to provide related footnote disclosures in certain circumstances. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. This ASU is not expected to have an impact on the Company’s financial statements or disclosures. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU No. 2015-05 provides the guidance of the accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a license to internal-use software, then the entity should account for the software license consistent with the acquisition of internal-use software. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract. The new guidance is effective for the Company beginning in its first quarter of fiscal year 2017. Early adoption is permitted. An entity can elect to adopt the guidance either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. This ASU is not expected to have an impact on the Company’s financial statements or disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. The new guidance changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. It applies to entities that measure inventory using a method other than last-in, first-out (LIFO) and the retail inventory method (RIM). The new guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adoption on its financial position, results of operations and disclosures. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. To simplify the presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction – that is, companies are still prohibited j . |
Financial Instruments and Fai23
Financial Instruments and Fair Value (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Investments All Other Investments [Abstract] | |
Schedule of Available-for-Sale Securities at Fair Value | The following table summarizes the investments as of October 31, 2015 and January 31, 2015: As of October 31, 2015 Amortized Unrealized Unrealized Losses Fair Value (in thousands) Money market funds $ 41 $ — $ — $ 41 Commercial paper 2,145 — — 2,145 Corporate bonds 28,549 6 (17 ) 28,538 Asset-backed securities 4,596 — (1 ) 4,595 U.S. government securities 2,911 — (3 ) 2,908 Agency bonds 2,069 — — 2,069 Total cash equivalents and marketable securities $ 40,311 $ 6 $ (21 ) $ 40,296 As of January 31, 2015 Amortized Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 2,427 $ — $ — $ 2,427 Commercial paper 1,497 — — 1,497 Corporate bonds 32,356 9 (10 ) 32,355 Asset-backed securities 3,851 — — 3,851 Total cash equivalents and marketable securities $ 40,131 $ 9 $ (10 ) $ 40,130 |
Schedule of Cash Equivalents and Marketable Securities | As of October 31, January (in thousands) Included in cash equivalents $ 41 $ 2,427 Included in marketable securities 40,255 37,703 Total cash equivalents and marketable securities $ 40,296 $ 40,130 |
Summary of Contractual Maturities of Investments | The contractual maturities of the investments at October 31, 2015 and January 31, 2015 were as follows: As of October 31, January (in thousands) Due within one year $ 30,540 $ 37,559 Due within one to two years 9,756 2,571 Total cash equivalents and marketable securities $ 40,296 $ 40,130 |
Schedule of Fair Value of Financial Instruments Measured on Recurring Basis | The following table presents the fair value of the financial instruments measured on a recurring basis as of October 31, 2015 and January 31, 2015: As of October 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 41 $ 41 $ — $ — Commercial paper 2,145 — 2,145 — Corporate bonds 28,538 — 28,538 — Asset-backed securities 4,595 — 4,595 — U.S. government securities 2,908 — 2,908 — Agency bonds 2,069 — 2,069 — Total cash equivalents and marketable securities $ 40,296 $ 41 $ 40,255 $ — As of January 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 2,427 $ 2,427 $ — $ — Commercial paper 1,497 — 1,497 — Corporate bonds 32,355 — 32,355 — Asset-backed securities 3,851 — 3,851 — Total cash equivalents and marketable securities $ 40,130 $ 2,427 $ 37,703 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Work-in-progress $ 12,696 $ 13,805 Finished goods 10,092 7,888 Total $ 22,788 $ 21,693 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Computer equipment and software $ 6,166 $ 5,310 Machinery and equipment 2,599 2,234 Furniture and fixtures 473 456 Leasehold improvements 1,249 1,215 Construction in progress 155 64 10,642 9,279 Less: accumulated depreciation and amortization (7,427 ) (6,204 ) Total property and equipment, net $ 3,215 $ 3,075 |
Accrued Liabilities and Other26
Accrued Liabilities and Other Long-Term Liabilities (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Accrued employee compensation $ 12,329 $ 11,318 Accrued warranty 143 203 Accrued rebates 657 254 Accrued product development costs 3,683 5,004 Other accrued liabilities 1,512 1,920 Total accrued liabilities $ 18,324 $ 18,699 |
Deferred Revenue and Deferred27
Deferred Revenue and Deferred Cost (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of Deferred Revenue and Related Cost | Deferred revenue and related cost at October 31, 2015 and January 31, 2015 consisted of the following: As of October 31, 2015 January (in thousands) Deferred revenue on product shipments $ 5,932 $ 4,663 Deferred revenue from licenses & services 2,865 1,610 Deferred cost of revenue on product shipments (1,853 ) (1,168 ) Total deferred revenue, net $ 6,944 $ 5,105 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Capital [Abstract] | |
Schedule of Ordinary Shares Reserved for Future Issuance under EIP and ESPP | As of October 31, 2015 and January 31, 2015, the following ordinary shares were reserved for future issuance under the EIP and ESPP: As of October 31, 2015 January 31, 2015 Shares reserved for options and restricted stock units 5,311,460 5,055,845 Shares reserved for employee stock purchase plan 974,273 667,990 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Classification of Stock-based Compensation | The following table presents the classification of stock-based compensation for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) Stock-based compensation: Cost of revenue $ 157 $ 97 $ 408 $ 214 Research and development 5,201 2,363 11,966 5,582 Selling, general and administrative 2,587 1,824 7,174 4,311 Total stock-based compensation $ 7,945 $ 4,284 $ 19,548 $ 10,107 |
Weighted-Average Assumptions Used to Estimate Fair Value | The following table sets forth the weighted-average assumptions used to estimate the fair value of stock options and employee stock purchase plan awards for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 Stock Options: Volatility 55 % 63 % 57 % 64 % Risk-free interest rate 1.70 % 1.94 % 1.73 % 1.94 % Expected term (years) 6.08 5.97 6.08 6.00 Dividend yield 0 % 0 % 0 % 0 % Employee stock purchase plan awards: Volatility 63 % 40 % 63 % 40 % Risk-free interest rate 0.27 % 0.05 % 0.21 % 0.05 % Expected term (years) 0.5 0.5 0.5 0.5 Dividend yield 0 % 0 % 0 % 0 % |
Stock Option Activities | The following table summarizes stock option activities for the nine months ended October 31, 2015: Option Outstanding Weighted- Total Average Weighted- Value of Remaining Aggregate Weighted- Average options Contractual Intrinsic Average Grant-date Exercised Term Value Shares Exercise Fair Value (in (in years) (in Outstanding at January 31, 2015 2,281,909 $ 13.00 Granted 163,200 73.06 $ 39.79 Exercised (509,933 ) 9.28 $ 35,157 Forfeited (31,081 ) 28.91 Outstanding at October 31, 2015 1,904,095 18.89 6.08 $ 62,057 Exercisable at October 31, 2015 1,363,586 $ 9.41 5.04 $ 54,587 Vested and expected to vest at October 31, 2015 1,868,541 $ 18.32 6.03 $ 61,700 |
Restricted Stock Activities | The following table summarizes restricted stock activities for the periods indicated: Weighted- Average Grant-Date Shares Fair Value Unvested at January 31, 2015 1,980,448 $ 26.82 Granted 1,264,079 66.57 Vested (538,487 ) 25.20 Forfeited (24,439 ) 38.44 Unvested at October 31, 2015 2,681,601 $ 45.78 |
Net Income Per Ordinary Share (
Net Income Per Ordinary Share (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Ordinary Share | The following table sets forth the computation of basic and diluted net income per ordinary share for the periods indicated: Three Nine October 31, October 31, 2015 2014 2015 2014 (in thousands, except share and per share data) Numerator: Net income $ 29,461 $ 18,327 $ 71,412 $ 32,897 Less: amount allocable to unvested early exercised options — (1 ) — (8 ) Net income allocable to ordinary shareholders - basic $ 29,461 $ 18,326 $ 71,412 $ 32,889 Undistributed earnings reallocated to ordinary shareholders — — — 1 Net income allocable to ordinary shareholders - diluted $ 29,461 $ 18,326 $ 71,412 $ 32,890 Denominator: Weighted-average ordinary shares outstanding 31,815,588 30,009,218 31,476,724 29,474,364 Less: weighted-average unvested early exercised options subject to repurchase — (2,322 ) (56 ) (7,186 ) Weighted-average ordinary shares - basic 31,815,588 30,006,896 31,476,668 29,467,178 Effect of potentially dilutive securities: Employee stock options 1,199,065 1,719,140 1,316,228 1,902,988 Restricted stock 881,605 646,661 957,263 633,799 Employee stock purchase plan 2,944 9,829 8,382 10,408 Weighted-average ordinary shares - diluted 33,899,202 32,382,526 33,758,541 32,014,373 Net income per ordinary share: Basic $ 0.93 $ 0.61 $ 2.27 $ 1.12 Diluted $ 0.87 $ 0.57 $ 2.12 $ 1.03 |
Weighted-Average Potentially Dilutive Securities Excluded from Computation of Diluted Net Income Per Ordinary Share | The following weighted-average potentially dilutive securities were excluded from the computation of diluted net income per ordinary share as their effect would have been antidilutive: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 Options to purchase ordinary shares 135,617 316,208 73,377 209,769 Restricted stock 237,285 586,474 110,096 223,602 Employee stock purchase plan 22,865 50,111 12,098 48,147 Early exercised options subject to repurchase — 2,322 56 7,186 395,767 955,115 195,627 488,704 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Details Income Taxes | The following table provides details of income taxes for the periods indicated: Three Months Ended Nine Months Ended October 31, October 31, 2015 2014 2015 2014 (in thousands) Income before income taxes $ 30,496 $ 18,691 $ 75,896 $ 34,870 Provision for income taxes 1,035 364 4,484 1,973 Effective tax rate 3.4 % 2.0 % 5.9 % 5.7 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Annual Minimum Lease Payments | Future annual minimum payments under these operating leases with initial lease terms in excess of one year are as follows: As of October 31, 2015 Fiscal Year (in thousands) 2016 $ 2,106 2017 5,678 2018 2,016 2019 1,461 2020 1,536 Total future annual minimum lease payments $ 12,797 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Company's Revenue by Geographic Region | The following table sets forth the Company’s revenue by geographic region for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) Hong Kong $ 84,053 $ 61,134 $ 228,371 $ 138,527 Asia Pacific 1,015 420 2,331 1,638 United States 2,190 1,328 4,756 5,196 North America other than United States 3,682 1,046 6,985 3,762 Europe 2,260 1,761 5,963 4,455 Total revenue $ 93,200 $ 65,689 $ 248,406 $ 153,578 |
Financial Instruments and Fai34
Financial Instruments and Fair Value - Schedule of Available-for-Sale Securities at Fair Value (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 40,311 | $ 40,131 |
Unrealized Gains | 6 | 9 |
Unrealized Losses | (21) | (10) |
Fair Value | 40,296 | 40,130 |
Money market funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 41 | 2,427 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 41 | 2,427 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,145 | 1,497 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 2,145 | 1,497 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,549 | 32,356 |
Unrealized Gains | 6 | 9 |
Unrealized Losses | (17) | (10) |
Fair Value | 28,538 | 32,355 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,596 | 3,851 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | 0 |
Fair Value | 4,595 | $ 3,851 |
U.S. government securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,911 | |
Unrealized Gains | 0 | |
Unrealized Losses | (3) | |
Fair Value | 2,908 | |
Agency bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,069 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | $ 2,069 |
Financial Instruments and Fai35
Financial Instruments and Fair Value - Schedule of Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents and marketable securities | $ 40,296 | $ 40,130 |
Included in cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents and marketable securities | 41 | 2,427 |
Included in marketable securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents and marketable securities | $ 40,255 | $ 37,703 |
Financial Instruments and Fai36
Financial Instruments and Fair Value - Summary of Contractual Maturities of Investments (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Available For Sale Securities Debt Maturities Fair Value [Abstract] | ||
Due within one year | $ 30,540 | $ 37,559 |
Due within one to two years | 9,756 | 2,571 |
Total cash equivalents and marketable securities | $ 40,296 | $ 40,130 |
Financial Instruments and Fai37
Financial Instruments and Fair Value - Schedule of Fair Value of Financial Instruments Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | $ 40,296 | $ 40,130 |
Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 41 | 2,427 |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,145 | 1,497 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 28,538 | 32,355 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 4,595 | 3,851 |
U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,908 | |
Agency bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,069 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 41 | 2,427 |
Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 41 | 2,427 |
Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 1 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 1 [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | |
Level 1 [Member] | Agency bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 40,255 | 37,703 |
Level 2 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,145 | 1,497 |
Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 28,538 | 32,355 |
Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 4,595 | 3,851 |
Level 2 [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,908 | |
Level 2 [Member] | Agency bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,069 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 3 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 3 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 3 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | $ 0 |
Level 3 [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | |
Level 3 [Member] | Agency bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Work-in-progress | $ 12,696 | $ 13,805 |
Finished goods | 10,092 | 7,888 |
Total | $ 22,788 | $ 21,693 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation of property and equipment | $ 400 | $ 300 | $ 1,164 | $ 963 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 10,642 | $ 9,279 |
Less: accumulated depreciation and amortization | (7,427) | (6,204) |
Total property and equipment, net | 3,215 | 3,075 |
Computer equipment and software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,166 | 5,310 |
Machinery and equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,599 | 2,234 |
Furniture and fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 473 | 456 |
Leasehold improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,249 | 1,215 |
Construction in progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 155 | $ 64 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 25, 2015 | Oct. 31, 2015 | Jan. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 26,601 | $ 0 | |
Vis Lab S R L | |||
Business Acquisition [Line Items] | |||
Business acquisition date | Jun. 25, 2015 | ||
Cash paid for business acquisition | $ 30,000 | 30,000 | |
Intangible assets acquired | 4,100 | 4,100 | |
Goodwill | 25,300 | 25,300 | |
Net assets acquired | $ 600 | $ 600 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | Jun. 25, 2015 | Oct. 31, 2015 | Jan. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | |||
Goodwill | $ 26,601,000 | $ 0 | |
Deferred tax liabilities, intangible assets | 1,300,000 | ||
Impairment of goodwill or intangible assets | 0 | ||
Vis Lab S R L | |||
Finite Lived Intangible Assets [Line Items] | |||
Business acquisition date | Jun. 25, 2015 | ||
Goodwill | $ 25,300,000 | 25,300,000 | |
Intangible assets acquired | 4,100,000 | 4,100,000 | |
Deferred tax liabilities, intangible assets | $ 1,300,000 | $ 1,300,000 |
Accrued Liabilities and Other43
Accrued Liabilities and Other Long-Term Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued employee compensation | $ 12,329 | $ 11,318 |
Accrued warranty | 143 | 203 |
Accrued rebates | 657 | 254 |
Accrued product development costs | 3,683 | 5,004 |
Other accrued liabilities | 1,512 | 1,920 |
Total accrued liabilities | $ 18,324 | $ 18,699 |
Accrued Liabilities and Other44
Accrued Liabilities and Other Long-Term Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Jan. 31, 2015 | |
Payables And Accruals [Abstract] | ||
Deferred tax liabilities, intangible assets | $ 1,300 | |
Increase in unrecognized tax benefits | 6,700 | |
Other long-term liabilities | $ 9,394 | $ 1,393 |
Deferred Revenue and Deferred45
Deferred Revenue and Deferred Cost - Schedule of Deferred Revenue and Related Cost (Detail) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred revenue on product shipments | $ 5,932 | $ 4,663 |
Deferred revenue from licenses & services | 2,865 | 1,610 |
Deferred cost of revenue on product shipments | (1,853) | (1,168) |
Total deferred revenue, net | $ 6,944 | $ 5,105 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - $ / shares | Feb. 01, 2015 | Oct. 31, 2015 | Jan. 31, 2015 |
Class Of Stock [Line Items] | |||
Preference shares, shares authorized | 20,000,000 | 20,000,000 | |
Preference shares, par value | $ 0.00045 | $ 0.00045 | |
Preference shares, shares issued | 0 | 0 | |
Preference shares, shares outstanding | 0 | 0 | |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | |
2012 Equity Incentive Plan [Member] | |||
Class Of Stock [Line Items] | |||
Additional ordinary shares reserved for issuance | 1,387,689 | ||
2012 Equity Incentive Plan [Member] | Scenario, plan automatically increased by the lessor of [Member] | |||
Class Of Stock [Line Items] | |||
Annual increase in ordinary shares for available for future issuance | 3,500,000 | ||
Annual shares increase for future issuance by percentage under 2012 equity incentive plan | 4.50% | ||
2012 Employee Stock Purchase Plan [Member] | |||
Class Of Stock [Line Items] | |||
Additional ordinary shares reserved for issuance | 385,469 | ||
2012 Employee Stock Purchase Plan [Member] | Scenario, plan automatically increased by the lessor of [Member] | |||
Class Of Stock [Line Items] | |||
Annual increase in ordinary shares for available for future issuance | 1,500,000 | ||
Annual shares increase for future issuance by percentage under 2012 employee stock purchase plan | 1.25% |
Capital Stock - Schedule of Ord
Capital Stock - Schedule of Ordinary Shares Reserved for Future Issuance under EIP and ESPP (Detail) - shares | Oct. 31, 2015 | Jan. 31, 2015 |
Equity Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares reserved | 5,311,460 | 5,055,845 |
Employee stock purchase plan awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares reserved | 974,273 | 667,990 |
Stock-based Compensation - Clas
Stock-based Compensation - Classification of Stock-based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Stock-based compensation: | ||||
Total stock-based compensation | $ 7,945 | $ 4,284 | $ 19,548 | $ 10,107 |
Cost of revenue [Member] | ||||
Stock-based compensation: | ||||
Total stock-based compensation | 157 | 97 | 408 | 214 |
Research and development [Member] | ||||
Stock-based compensation: | ||||
Total stock-based compensation | 5,201 | 2,363 | 11,966 | 5,582 |
Selling, general and administrative [Member] | ||||
Stock-based compensation: | ||||
Total stock-based compensation | $ 2,587 | $ 1,824 | $ 7,174 | $ 4,311 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2015USD ($)$ / sharesshares | Oct. 31, 2015USD ($)$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock awards shares | shares | 84,239 | |
Closing price of ordinary shares | $ / shares | $ 49.44 | $ 49.44 |
Stock options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total unrecognized compensation cost, stock options | $ 12.4 | $ 12.4 |
Weighted average recognition period | 2 years 7 months 2 days | |
Restricted stock units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total unrecognized compensation cost, restricted stock units | 111.4 | $ 111.4 |
Weighted average recognition period | 3 years 3 months 29 days | |
Restricted Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average recognition period | 3 years 10 months 13 days | |
Total unrecognized compensation cost, restricted stock awards | 4.7 | $ 4.7 |
Restricted stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Aggregate intrinsic value of unvested restricted stock | $ 132.6 | $ 132.6 |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value (Detail) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Stock options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Volatility | 55.00% | 63.00% | 57.00% | 64.00% |
Risk-free interest rate | 1.70% | 1.94% | 1.73% | 1.94% |
Expected term (years) | 6 years 29 days | 5 years 11 months 19 days | 6 years 29 days | 6 years |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee stock purchase plan awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Volatility | 63.00% | 40.00% | 63.00% | 40.00% |
Risk-free interest rate | 0.27% | 0.05% | 0.21% | 0.05% |
Expected term (years) | 6 months | 6 months | 6 months | 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activities (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Oct. 31, 2015USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares, Outstanding | shares | 2,281,909 |
Shares, Granted | shares | 163,200 |
Shares, Exercised | shares | (509,933) |
Shares, Forfeited | shares | (31,081) |
Shares, Outstanding | shares | 1,904,095 |
Shares, Exercisable | shares | 1,363,586 |
Shares, Vested and expected to vest | shares | 1,868,541 |
Weighted-Average Exercise Price, Outstanding | $ 13 |
Weighted-Average Exercise Price, Granted | 73.06 |
Weighted-Average Exercise Price, Exercised | 9.28 |
Weighted-Average Exercise Price, Forfeited | 28.91 |
Weighted-Average Exercise Price, Outstanding | 18.89 |
Weighted-Average Exercise Price, Exercisable | 9.41 |
Weighted-Average Exercise Price, Vested and expected to vest | 18.32 |
Weighted-Average Grant-date Fair Value, Granted | $ 39.79 |
Total Intrinsic Value of options Exercised | $ | $ 35,157 |
Weighted-Average Remaining Contractual Term, Outstanding | 6 years 29 days |
Weighted-Average Remaining Contractual Term, Exercisable | 5 years 15 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 6 years 11 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 62,057 |
Aggregate Intrinsic Value, Exercisable | $ | 54,587 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 61,700 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Activities (Detail) - Restricted stock [Member] | 9 Months Ended |
Oct. 31, 2015$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Unvested, beginning balance | shares | 1,980,448 |
Shares, Granted | shares | 1,264,079 |
Shares, Vested | shares | (538,487) |
Shares, Forfeited | shares | (24,439) |
Shares, Unvested, ending balance | shares | 2,681,601 |
Weighted-Average Grant-Date Fair Value, Unvested, beginning balance | $ / shares | $ 26.82 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 66.57 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 25.20 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 38.44 |
Weighted-Average Grant-Date Fair Value, Unvested, ending balance | $ / shares | $ 45.78 |
Net Income Per Ordinary Share -
Net Income Per Ordinary Share - Computation of Basic and Diluted Net Income Per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Numerator: | ||||
Net income | $ 29,461 | $ 18,327 | $ 71,412 | $ 32,897 |
Less: amount allocable to unvested early exercised options | 0 | (1) | 0 | (8) |
Net income allocable to ordinary shareholders - basic | 29,461 | 18,326 | 71,412 | 32,889 |
Undistributed earnings reallocated to ordinary shareholders | 0 | 0 | 0 | 1 |
Net income allocable to ordinary shareholders - diluted | $ 29,461 | $ 18,326 | $ 71,412 | $ 32,890 |
Denominator: | ||||
Weighted-average ordinary shares outstanding | 31,815,588 | 30,009,218 | 31,476,724 | 29,474,364 |
Less: weighted-average unvested early exercised options subject to repurchase | 0 | (2,322) | (56) | (7,186) |
Weighted-average ordinary shares - basic | 31,815,588 | 30,006,896 | 31,476,668 | 29,467,178 |
Effect of potentially dilutive securities: | ||||
Employee stock options | 1,199,065 | 1,719,140 | 1,316,228 | 1,902,988 |
Restricted stock | 881,605 | 646,661 | 957,263 | 633,799 |
Employee stock purchase plan | 2,944 | 9,829 | 8,382 | 10,408 |
Weighted-average ordinary shares - diluted | 33,899,202 | 32,382,526 | 33,758,541 | 32,014,373 |
Net income per ordinary share: | ||||
Basic | $ 0.93 | $ 0.61 | $ 2.27 | $ 1.12 |
Diluted | $ 0.87 | $ 0.57 | $ 2.12 | $ 1.03 |
Net Income Per Ordinary Share54
Net Income Per Ordinary Share - Weighted-Average Potentially Dilutive Securities Excluded from Computation of Diluted Net Income Per Ordinary Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 395,767 | 955,115 | 195,627 | 488,704 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 135,617 | 316,208 | 73,377 | 209,769 |
Restricted stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 237,285 | 586,474 | 110,096 | 223,602 |
Employee stock purchase plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 22,865 | 50,111 | 12,098 | 48,147 |
Early exercised options subject to repurchase [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 0 | 2,322 | 56 | 7,186 |
Income Taxes - Summary of Repor
Income Taxes - Summary of Reported Income Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 30,496 | $ 18,691 | $ 75,896 | $ 34,870 |
Provision for income taxes | $ 1,035 | $ 364 | $ 4,484 | $ 1,973 |
Effective tax rate | 3.40% | 2.00% | 5.90% | 5.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | Oct. 31, 2015USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 24.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2015 | |
Loss Contingencies [Line Items] | |||||
Net operating lease expenses | $ 1,600,000 | $ 1,500,000 | $ 5,200,000 | $ 4,300,000 | |
Total manufacturing purchase commitments | 23,400,000 | 23,400,000 | $ 27,500,000 | ||
Indemnification agreement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Payments under indemnification obligations | 0 | 0 | |||
Liabilities recorded under indemnification obligations | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies58
Commitments and Contingencies - Future Annual Minimum Lease Payments (Detail) $ in Thousands | Oct. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 2,106 |
2,017 | 5,678 |
2,018 | 2,016 |
2,019 | 1,461 |
2,020 | 1,536 |
Total future annual minimum lease payments | $ 12,797 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015USD ($) | Oct. 31, 2014 | Oct. 31, 2015USD ($)Segment | Oct. 31, 2014 | Jan. 31, 2015USD ($) | |
Concentration Risk [Line Items] | |||||
Number of reportable segment | Segment | 1 | ||||
Property and equipment, net | $ 3,215 | $ 3,215 | $ 3,075 | ||
Accounts receivable | 46,282 | 46,282 | 40,180 | ||
Wintech And Chicony [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 42,900 | $ 42,900 | $ 36,200 | ||
Wintech And Chicony [Member] | Sales revenue, net [Member] | Customer concentration risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue | 89.00% | 92.00% | 90.00% | 89.00% | |
Wintech And Chicony [Member] | Sales revenue, net [Member] | Customer concentration risk [Member] | Minimum [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue or accounts receivable | 10.00% | 10.00% | 10.00% | 10.00% | |
Wintech And Chicony [Member] | Accounts receivable [Member] | Credit concentration risk [Member] | Minimum [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue or accounts receivable | 10.00% | 10.00% | 10.00% | 10.00% | |
United States [Member] | |||||
Concentration Risk [Line Items] | |||||
Property and equipment, net | $ 1,700 | $ 1,700 | |||
Asia Pacific [Member] | |||||
Concentration Risk [Line Items] | |||||
Property and equipment, net | $ 1,200 | $ 1,200 |
Segment Reporting - Company's R
Segment Reporting - Company's Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 93,200 | $ 65,689 | $ 248,406 | $ 153,578 |
Hong Kong [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 84,053 | 61,134 | 228,371 | 138,527 |
Asia Pacific [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,015 | 420 | 2,331 | 1,638 |
United States [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 2,190 | 1,328 | 4,756 | 5,196 |
North America other than United States [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 3,682 | 1,046 | 6,985 | 3,762 |
Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 2,260 | $ 1,761 | $ 5,963 | $ 4,455 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 33 Months Ended | ||||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2017 | Jan. 31, 2015 | Jan. 31, 2013 | |
Related Party Transaction [Line Items] | |||||||
Percentage of entity's voting stock owned by related party | 10.00% | 10.00% | 10.00% | ||||
Other Entity [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payment for license fees | $ 0.7 | $ 0.6 | $ 2.1 | $ 1.6 | |||
License expenses included in research and development cost | 0.6 | 0.6 | 2 | 1.3 | |||
Other Entity [Member] | Scenario, Forecast [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Commitment to make license payment | $ 7.5 | ||||||
Investor [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of investor own voting stock | 4.60% | ||||||
Recognized revenue from related party | 63.1 | $ 33.6 | 168.2 | $ 92.1 | |||
Account receivables from related party | $ 23.6 | $ 23.6 | $ 12.1 |