Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | |
Class A Common Stock [Member] | Class B Common Stock [Member] | ||
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'MAXLINEAR INC | ' | ' |
Trading Symbol | 'MXL | ' | ' |
Entity Central Index Key | '0001288469 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 30,267,492 | 7,007,333 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $34,055 | $26,450 |
Short-term investments, available-for-sale | 47,740 | 35,494 |
Accounts receivable, net | 20,455 | 20,058 |
Inventory | 9,576 | 10,032 |
Prepaid expenses and other current assets | 2,074 | 1,682 |
Total current assets | 113,900 | 93,716 |
Property and equipment, net | 10,125 | 5,511 |
Long-term investments, available-for-sale | 12,122 | 24,410 |
Intangible assets | 511 | 749 |
Other long-term assets | 542 | 543 |
Total assets | 137,200 | 124,929 |
Current liabilities: | ' | ' |
Accounts payable | 6,518 | 7,507 |
Deferred revenue and deferred profit | 4,885 | 2,651 |
Accrued price protection liability | 16,485 | 15,017 |
Accrued expenses and other current liabilities | 5,485 | 4,285 |
Accrued compensation | 6,318 | 7,698 |
Total current liabilities | 39,691 | 37,158 |
Other long-term liabilities | 1,475 | 1,097 |
Commitments and contingencies | ' | ' |
Stockholdersb equity: | ' | ' |
Preferred Stock, Value, Issued | 0 | 0 |
Common stock | 0 | 0 |
Additional paid-in capital | 172,433 | 158,360 |
Accumulated other comprehensive income | 24 | 58 |
Accumulated deficit | -76,427 | -71,748 |
Total stockholdersb equity | 96,034 | 86,674 |
Total liabilities and stockholdersb equity | 137,200 | 124,929 |
Class A Common Stock [Member] | ' | ' |
Stockholdersb equity: | ' | ' |
Common stock | 3 | 3 |
Class B Common Stock [Member] | ' | ' |
Stockholdersb equity: | ' | ' |
Common stock | $1 | $1 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Preferred stock, par value (usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $0.00 | $0.00 |
Common stock, shares authorized (shares) | 550,000,000 | 550,000,000 |
Common stock, shares issued (shares) | 0 | 0 |
Common stock, shares outstanding (shares) | 0 | 0 |
Class A Common Stock [Member] | ' | ' |
Common stock, par value (usd per share) | $0.00 | $0.00 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 30,259,000 | 27,002,000 |
Common stock, shares outstanding (shares) | 30,259,000 | 27,002,000 |
Class B Common Stock [Member] | ' | ' |
Common stock, par value (usd per share) | $0.00 | $0.00 |
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (shares) | 7,016,000 | 8,338,000 |
Common stock, shares outstanding (shares) | 7,016,000 | 8,338,000 |
UNAUDITED_CONSOLIDATED_STATEME
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net revenue | $32,541 | $31,765 | $100,634 | $88,072 |
Cost of net revenue | 12,632 | 11,934 | 38,426 | 34,233 |
Gross profit | 19,909 | 19,831 | 62,208 | 53,839 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 14,957 | 14,569 | 41,944 | 38,395 |
Selling, general and administrative | 8,141 | 9,965 | 24,590 | 25,136 |
Total operating expenses | 23,098 | 24,534 | 66,534 | 63,531 |
Loss from operations | -3,189 | -4,703 | -4,326 | -9,692 |
Interest income | 61 | 53 | 182 | 170 |
Interest expense | 0 | 0 | 0 | -4 |
Other expense, net | -49 | -77 | -79 | -194 |
Loss before income taxes | -3,177 | -4,727 | -4,223 | -9,720 |
Provision for income taxes | 28 | 155 | 456 | 366 |
Net loss | ($3,205) | ($4,882) | ($4,679) | ($10,086) |
Net loss per share: | ' | ' | ' | ' |
Basic (usd per share) | ($0.09) | ($0.14) | ($0.13) | ($0.30) |
Diluted (usd per share) | ($0.09) | ($0.14) | ($0.13) | ($0.30) |
Shares used to compute net loss per share: | ' | ' | ' | ' |
Basic (shares) | 36,901 | 34,506 | 36,127 | 33,698 |
Diluted (shares) | 36,901 | 34,506 | 36,127 | 33,698 |
UNAUDITED_CONSOLIDATED_STATEME1
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net loss | ($3,205) | ($4,882) | ($4,679) | ($10,086) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized gain (loss) on investments, net of tax of $0 and $5 for the three months ended September 30, 2014 and 2013, respectively, and $0 and $5 for the nine months ended September 30, 2014 and 2013, respectively | -22 | 54 | -26 | 9 |
Foreign currency translation adjustments, net of tax of $0 for the three and nine months ended September 30, 2014 and 2013, respectively | -8 | -1 | -8 | 8 |
Other comprehensive income (loss) | -30 | 53 | -34 | 17 |
Total comprehensive loss | ($3,235) | ($4,829) | ($4,713) | ($10,069) |
UNAUDITED_CONSOLIDATED_STATEME2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Other comprehensive income (loss), Unrealized Holding Gain (Loss) on Securities Arising During the Period, tax | $0 | $5 | $0 | $5 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $0 | $0 | $0 | $0 |
UNAUDITED_CONSOLIDATED_STATEME3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Activities | ' | ' |
Net loss | ($4,679) | ($10,086) |
Adjustments to reconcile net loss to cash provided by operating activities: | ' | ' |
Amortization and depreciation | 3,527 | 2,916 |
Amortization of investment premiums, net | 578 | 741 |
Stock-based compensation | 11,080 | 9,591 |
Deferred income tax expense (benefit) | 11 | 0 |
Impairment of long-lived assets | 8 | 1,229 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -397 | -4,316 |
Inventory | 456 | 216 |
Prepaid and other assets | -402 | -144 |
Accounts payable, accrued expenses and other current liabilities | 66 | -649 |
Accrued compensation | 3,670 | 5,001 |
Deferred revenue and deferred profits | 2,234 | 758 |
Accrued price protection liability | 1,468 | 4,617 |
Other long-term liabilities | 382 | 193 |
Net cash provided by operating activities | 18,002 | 10,067 |
Investing Activities | ' | ' |
Purchases of property and equipment | -7,767 | -2,633 |
Payments to acquire intangible assets | 0 | 955 |
Purchases of available-for-sale securities | -36,457 | -56,800 |
Maturities of available-for-sale securities | 35,895 | 55,000 |
Net cash used in investing activities | -8,329 | -5,388 |
Financing Activities | ' | ' |
Payments on capital leases | 0 | -2 |
Net proceeds from issuance of common stock | 1,584 | 1,246 |
Minimum tax withholding paid on behalf of employees for restricted stock units | -3,641 | -1,246 |
Net cash used in financing activities | -2,057 | -2 |
Effect of exchange rate changes on cash and cash equivalents | -11 | 13 |
Increase in cash and cash equivalents | 7,605 | 4,690 |
Cash and cash equivalents at beginning of period | 26,450 | 21,810 |
Cash and cash equivalents at end of period | 34,055 | 26,500 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Cash paid for income taxes | 133 | 126 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ' | ' |
Issuance of accrued share-based bonus plan | 5,050 | 4,836 |
Accrued purchases of property and equipment | $146 | $192 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business Description and Accounting Policies [Text Block] | ' |
1. Organization and Summary of Significant Accounting Policies | |
Description of Business | |
MaxLinear, Inc. (the Company) was incorporated in Delaware in September 2003. The Company is a provider of integrated, radio-frequency and mixed-signal integrated circuits for broadband communication applications whose customers include module makers, original equipment manufacturers, or OEMs, and original design manufacturers, or ODMs, who incorporate the Company’s products in a wide range of electronic devices including cable and terrestrial and satellite set top boxes, DOCSIS data and voice gateways, and hybrid analog and digital televisions. The Company is a fabless semiconductor company focusing its resources on the design, sales and marketing of its products. | |
Basis of Presentation and Principles of Consolidation | |
The unaudited consolidated financial statements include the accounts of MaxLinear, Inc. and its wholly owned subsidiaries. All intercompany transactions and investments have been eliminated in consolidation. | |
The functional currency of certain foreign subsidiaries is the local currency. Accordingly, assets and liabilities of these foreign subsidiaries are translated at the current exchange rate at the balance sheet date and historical rates for equity. Revenue and expense components are translated at weighted average exchange rates in effect during the period. Gains and losses resulting from foreign currency translation are included as a component of stockholders’ equity. Foreign currency transaction gains and losses are included in the results of operations and, to date, have not been significant. | |
The Company has prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements. In the opinion of management, all adjustments, which include only normal recurring adjustments, considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2013 included in the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission, or SEC, on February 6, 2014. | |
Use of Estimates | |
The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes of the unaudited consolidated financial statements. Actual results could differ from those estimates. | |
Revenue Recognition | |
Revenue is generated from sales of the Company’s integrated circuits. The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable and 4) collectability is reasonably assured. Title to product transfers to customers either when it is shipped to or received by the customer, based on the terms of the specific agreement with the customer. | |
Revenue is recorded based on the facts at the time of sale. Transactions for which the Company cannot reliably estimate the amount that will ultimately be collected at the time the product has shipped and title has transferred to the customer are deferred until the amount that is probable of collection can be determined. Items that are considered when determining the amounts that will be ultimately collected are: a customer’s overall creditworthiness and payment history; customer rights to return unsold product; customer rights to price protection; customer payment terms conditioned on sale or use of product by the customer; or extended payment terms granted to a customer. | |
A portion of the Company’s revenues are generated from sales made through distributors under agreements allowing for pricing credits and/or stock rotation rights of return. Revenues from the Company’s distributors accounted for 30% and 28% of net revenue for the three and nine months ended September 30, 2014. Revenues from the Company’s distributors accounted for 27% and 29% of net revenue for the three and nine months ended September 30, 2013. Pricing credits to the Company’s distributors may result from its price protection and unit rebate provisions, among other factors. These pricing credits and/or stock rotation rights prevent the Company from being able to reliably estimate the final sales price of the inventory sold and the amount of inventory that could be returned pursuant to these agreements. As a result, for sales through distributors, the Company has determined that it does not meet all of the required revenue recognition criteria at the time it delivers its products to distributors as the final sales price is not fixed or determinable. | |
For these distributor transactions, revenue is not recognized until product is shipped to the end customer and the amount that will ultimately be collected is fixed or determinable. Upon shipment of product to these distributors, title to the inventory transfers to the distributor and the distributor is invoiced, generally with 30 day terms. On shipments to the Company’s distributors where revenue is not recognized, the Company records a trade receivable for the selling price as there is a legally enforceable right to payment, relieving the inventory for the carrying value of goods shipped since legal title has passed to the distributor, and records the corresponding gross profit in the consolidated balance sheet as a component of deferred revenue and deferred profit, representing the difference between the receivable recorded and the cost of inventory shipped. Future pricing credits and/or stock rotation rights from the Company’s distributors may result in the realization of a different amount of profit included in the Company’s future consolidated statements of operations than the amount recorded as deferred profit in the Company’s consolidated balance sheets. | |
The Company records reductions in revenue for estimated pricing adjustments related to price protection agreements with the Company’s end customers in the same period that the related revenue is recorded. Price protection pricing adjustments are recorded at the time of sale as a reduction to revenue and an increase in the Company’s accrued liabilities. The amount of these reductions is based on specific criteria included in the agreements and other factors known at the time. The Company accrues 100% of potential price protection adjustments at the time of sale and does not apply a breakage factor. The Company reverses the accrual for unclaimed price protection amounts as specific programs contractually end or when the Company believes unclaimed amounts are no longer subject to payment and will not be paid. See Note 4 for a summary of the Company's price protection activity. | |
Litigation and Settlement Costs | |
Legal costs are expensed as incurred. The Company is involved in disputes, litigation and other legal actions in the ordinary course of business. The Company continually evaluates uncertainties associated with litigation and records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and (ii) the loss or range of loss can be reasonably estimated. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning in the first quarter of fiscal year 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. | |
In August 2014, the FASB issued new accounting guidance related to the disclosures around going concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance will be effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption is permitted. The Company does not expect the adoption of this standard to significantly impact its financial statements. |
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Loss Per Share | ' | |||||||||||||||
2. Net Loss Per Share | ||||||||||||||||
Net loss per share is computed as required by the accounting standard for earnings per share, or EPS. Basic EPS is calculated by dividing net loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net loss by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock options, restricted stock units and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive. | ||||||||||||||||
The Company has two classes of stock outstanding, Class A common stock and Class B common stock. The economic rights of the Class A common stock and Class B common stock, including rights in connection with dividends and payments upon a liquidation or merger are identical, and the Class A common stock and Class B common stock will be treated equally, identically and ratably, unless differential treatment is approved by the Class A common stock and Class B common stock, each voting separately as a class. The Company computes basic earnings per share by dividing net loss by the weighted average number of shares of Class A and Class B common stock outstanding during the period. For diluted earnings per share, the Company divides net loss by the sum of the weighted average number of shares of Class A and Class B common stock outstanding and the potential number of shares of dilutive Class A and Class B common stock outstanding during the period. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (3,205 | ) | $ | (4,882 | ) | $ | (4,679 | ) | $ | (10,086 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—basic | 36,901 | 34,506 | 36,127 | 33,698 | ||||||||||||
Dilutive common stock equivalents | — | — | — | — | ||||||||||||
Weighted average common shares outstanding—diluted | 36,901 | 34,506 | 36,127 | 33,698 | ||||||||||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.30 | ) | ||||
Diluted | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.30 | ) | ||||
The Company excluded 3.1 million and 3.2 million common stock equivalents for the three and nine months ended September 30, 2014, respectively, and 3.5 million and 3.1 million common stock equivalents for the three and nine months ended September 30, 2013, respectively, resulting from outstanding equity awards for the calculation of diluted net loss per share due to their anti-dilutive nature. |
Financial_Instruments
Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial Instruments | ' | |||||||||||||||
3. Financial Instruments | ||||||||||||||||
The composition of financial instruments is as follows: | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Money market funds | $ | 603 | $ | — | $ | — | $ | 603 | ||||||||
Government debt securities | 23,419 | 13 | — | 23,432 | ||||||||||||
Corporate debt securities | 36,451 | 6 | (27 | ) | 36,430 | |||||||||||
60,473 | 19 | (27 | ) | 60,465 | ||||||||||||
Less amounts included in cash and cash equivalents | (603 | ) | — | — | (603 | ) | ||||||||||
$ | 59,870 | $ | 19 | $ | (27 | ) | $ | 59,862 | ||||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Money market funds | $ | 406 | $ | — | $ | — | $ | 406 | ||||||||
Government debt securities | 26,532 | 10 | (5 | ) | 26,537 | |||||||||||
Corporate debt securities | 33,355 | 17 | (4 | ) | 33,368 | |||||||||||
60,293 | 27 | (9 | ) | 60,311 | ||||||||||||
Less amounts included in cash and cash equivalents | (406 | ) | — | — | (406 | ) | ||||||||||
$ | 59,887 | $ | 27 | $ | (9 | ) | $ | 59,905 | ||||||||
As of September 30, 2014, the Company held 16 corporate debt securities with an aggregate fair value of $21.2 million that were in an unrealized loss position for less than 12 months. The gross unrealized losses of $0.03 million at September 30, 2014 represent temporary impairments on corporate debt securities related to multiple issuers, and were primarily caused by fluctuations in U.S. interest rates. The Company evaluates securities for other-than-temporary impairment on a quarterly basis. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer; including changes in the financial condition of the security’s underlying collateral; any downgrades of the security by a rating agency; nonpayment of scheduled interest, or the reduction or elimination of dividends; as well as our intent and ability to hold the security in order to allow for an anticipated recovery in fair value. All of the Company’s long-term available-for-sale securities were due between 1 and 2 years as of September 30, 2014. | ||||||||||||||||
The fair values of the Company’s financial instruments are the amounts that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants and are recorded using a hierarchal disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The levels are described below: | ||||||||||||||||
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. | ||||||||||||||||
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | ||||||||||||||||
Level 3: Unobservable inputs are used when little or no market data is available. | ||||||||||||||||
The Company classifies its financial instruments within Level 1 or Level 2 of the fair value hierarchy on the basis of valuations using quoted market prices or alternate pricing sources and models utilizing market observable inputs, respectively. The Company’s money market funds were valued based on quoted prices for the specific securities in an active market and were therefore classified as Level 1. The government and corporate debt securities have been valued on the basis of valuations provided by third-party pricing services, as derived from such services’ pricing models. The pricing services may use a consensus price which is a weighted average price based on multiple sources or mathematical calculations to determine the valuation for a security, and have been classified as Level 2. The Company reviews Level 2 inputs and fair value for reasonableness and the values may be further validated by comparison to independent pricing sources. In addition, the Company reviews third-party pricing provider models, key inputs and assumptions and understands the pricing processes at its third-party providers in determining the overall reasonableness of the fair value of its Level 2 financial instruments. As of September 30, 2014 and December 31, 2013, the Company has not made any adjustments to the prices obtained from its third party pricing providers. The Company held no Level 3 financial instruments as of September 30, 2014 and December 31, 2013. | ||||||||||||||||
The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis: | ||||||||||||||||
Fair Value Measurements at September 30, 2014 | ||||||||||||||||
Balance at | Quoted Prices | Significant | Significant | |||||||||||||
30-Sep-14 | in Active | Other | Unobservable | |||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Money market funds | $ | 603 | $ | 603 | $ | — | $ | — | ||||||||
Government debt securities | 23,432 | — | 23,432 | — | ||||||||||||
Corporate debt securities | 36,430 | — | 36,430 | — | ||||||||||||
$ | 60,465 | $ | 603 | $ | 59,862 | $ | — | |||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Balance at | Quoted Prices | Significant | Significant | |||||||||||||
December 31, | in Active | Other | Unobservable | |||||||||||||
2013 | Markets for | Observable | Inputs | |||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Money market funds | $ | 406 | $ | 406 | $ | — | $ | — | ||||||||
Government debt securities | 26,537 | — | 26,537 | — | ||||||||||||
Corporate debt securities | 33,368 | — | 33,368 | — | ||||||||||||
$ | 60,311 | $ | 406 | $ | 59,905 | $ | — | |||||||||
There were no transfers between Level 1, Level 2 or Level 3 securities in the nine months ended September 30, 2014. |
Balance_Sheet_Details
Balance Sheet Details | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||||
Balance Sheet Details | ' | |||||||||
4. Balance Sheet Details | ||||||||||
Cash and cash equivalents and investments consist of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Cash and cash equivalents | $ | 34,055 | $ | 26,450 | ||||||
Short-term investments | 47,740 | 35,494 | ||||||||
Long-term investments | 12,122 | 24,410 | ||||||||
$ | 93,917 | $ | 86,354 | |||||||
Inventory consists of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Work-in-process | $ | 3,424 | $ | 4,384 | ||||||
Finished goods | 6,152 | 5,648 | ||||||||
$ | 9,576 | $ | 10,032 | |||||||
Property and equipment consist of the following: | ||||||||||
Useful Life | September 30, | December 31, | ||||||||
(in Years) | 2014 | 2013 | ||||||||
Furniture and fixtures | 5 | $ | 714 | $ | 346 | |||||
Machinery and equipment | 3 -5 | 12,520 | 9,488 | |||||||
Masks and production equipment | 2 | 7,441 | 4,764 | |||||||
Software | 3 | 798 | 743 | |||||||
Leasehold improvements | 4 -5 | 2,416 | 924 | |||||||
Construction in progress | N/A | 131 | 82 | |||||||
24,020 | 16,347 | |||||||||
Less accumulated depreciation and amortization | (13,895 | ) | (10,836 | ) | ||||||
$ | 10,125 | $ | 5,511 | |||||||
Intangible assets consist of the following: | ||||||||||
Weighted | September 30, | December 31, | ||||||||
Average | 2014 | 2013 | ||||||||
Amortization | ||||||||||
Period | ||||||||||
(in Years) | ||||||||||
Licensed technology | 3 | $ | 2,821 | $ | 2,821 | |||||
Less accumulated amortization | (2,310 | ) | (2,072 | ) | ||||||
$ | 511 | $ | 749 | |||||||
The following table presents future amortization of the Company’s intangible assets at September 30, 2014: | ||||||||||
Amortization | ||||||||||
2014 | $ | 81 | ||||||||
2015 | 319 | |||||||||
2016 | 111 | |||||||||
Total | $ | 511 | ||||||||
Deferred revenue and deferred profit consist of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Deferred revenue—rebates | $ | 10 | $ | 110 | ||||||
Deferred revenue—distributor transactions | 7,428 | 3,922 | ||||||||
Deferred cost of net revenue—distributor transactions | (2,553 | ) | (1,381 | ) | ||||||
$ | 4,885 | $ | 2,651 | |||||||
Accrued price protection liability consists of the following activity: | ||||||||||
Nine Months Ended | ||||||||||
September 30, | ||||||||||
2014 | 2013 | |||||||||
Beginning balance | $ | 15,017 | $ | 7,880 | ||||||
Charged as a reduction of revenue | 17,895 | 15,920 | ||||||||
Reversal of unclaimed rebates | (390 | ) | (27 | ) | ||||||
Payments | (16,037 | ) | (11,276 | ) | ||||||
Ending balance | $ | 16,485 | $ | 12,497 | ||||||
Accrued expenses and other current liabilities consist of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Accrued technology license payments | $ | 3,000 | $ | 3,000 | ||||||
Accrued professional fees | 564 | 390 | ||||||||
Accrued litigation costs | 306 | — | ||||||||
Other | 1,615 | 895 | ||||||||
$ | 5,485 | $ | 4,285 | |||||||
StockBased_Compensation_and_Em
Stock-Based Compensation and Employee Benefit Plans | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation and Employee Benefit Plans | ' | |||||||||||||||
5. Stock-Based Compensation and Employee Benefit Plans | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The Company uses the Black-Scholes valuation model to calculate the fair value of stock options and employee stock purchase rights granted to employees. The Company calculates the fair value of restricted stock units, or RSUs, and restricted stock awards, or RSAs, based on the fair market value of our Class A common stock on the grant date. The weighted-average grant date fair value per share of the RSUs and RSAs granted in the nine months ended September 30, 2014 was $9.04. The weighted-average grant date fair value per share of the RSUs and RSAs granted in the nine months ended September 30, 2013 was $6.39. | ||||||||||||||||
The fair values of stock options were estimated at their respective grant date using the following assumptions: | ||||||||||||||||
Stock Options | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Weighted-average grant date fair value per share | $ | 4.03 | $ | 3.24 | ||||||||||||
Risk-free interest rate | 1.7 | % | 0.71 | % | ||||||||||||
Dividend yield | — | — | ||||||||||||||
Expected life (years) | 4.56 | 4.75 | ||||||||||||||
Volatility | 51 | % | 56 | % | ||||||||||||
Employee Stock Purchase Rights | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Weighted-average grant date fair value per share | $ | 2.47 | $ | 1.85 | ||||||||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | ||||||||||||
Dividend yield | — | — | ||||||||||||||
Expected life (years) | 0.5 | 0.5 | ||||||||||||||
Volatility | 47.75 | % | 41.58 | % | ||||||||||||
The risk-free interest rate assumption was based on the United States Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The weighted-average expected life of options was calculated using the simplified method as prescribed by guidance provided by the SEC. This decision was based on the lack of historical data due to the Company’s limited number of stock option exercises under the 2010 Equity Incentive Plan. In addition, due to the Company’s limited historical data, the estimated volatility incorporates the historical volatility of comparable companies whose share prices are publicly available. Effective for the nine months ended September 30, 2014, the Company is no longer incorporating the historical volatility of comparable companies in determining estimated volatility. | ||||||||||||||||
The Company recognized stock-based compensation in the statements of operations as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of net revenue | $ | 35 | $ | 29 | $ | 96 | $ | 79 | ||||||||
Research and development | 2,574 | 2,183 | 7,152 | 6,095 | ||||||||||||
Selling, general and administrative | 1,393 | 1,251 | 3,832 | 3,417 | ||||||||||||
$ | 4,002 | $ | 3,463 | $ | 11,080 | $ | 9,591 | |||||||||
In the nine months ended September 30, 2014, the Company granted 0.7 million RSUs with a fair value of $6.4 million and 0.4 million stock options with a fair value of $1.7 million related to its annual equity compensation review program, which will be expensed over the next four years. In the nine months ended September 30, 2013, the Company granted 1.1 million RSUs with a fair value of $7.1 million and 0.6 million stock options with a fair value of $2.0 million related to its annual equity compensation review program, which will be expensed over the four years following the grants. | ||||||||||||||||
Employee Benefit Plans | ||||||||||||||||
At September 30, 2014, the Company had stock-based compensation awards outstanding under the following plans: the 2004 Stock Plan, the 2010 Equity Incentive Plan and the 2010 Employee Stock Purchase Plan. Upon the closing of the initial public offering in March 2010, all stock awards are issued under the 2010 Equity Incentive Plan and are no longer issued under the 2004 Stock Plan. | ||||||||||||||||
2010 Equity Incentive Plan | ||||||||||||||||
The 2010 Equity Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance-based stock awards, and other forms of equity compensation, or collectively, stock awards. The exercise price for an incentive or a non-statutory stock option cannot be less than 100% of the fair market value of the Company’s Class A common stock on the date of grant. Options granted will generally vest over a four-year period and the term can be from seven to ten years. | ||||||||||||||||
On January 1, 2014, 1.4 million shares of Class A common stock were automatically added to the shares authorized for issuance under the 2010 Equity Incentive Plan pursuant to an “evergreen” provision contained in the 2010 Equity Incentive Plan. | ||||||||||||||||
2010 Employee Stock Purchase Plan | ||||||||||||||||
The 2010 Employee Stock Purchase Plan, or ESPP, is implemented through a series of offerings of purchase rights to eligible employees. Generally, all regular employees, including executive officers, employed by the Company may participate in the ESPP and may contribute up to 15% of their earnings for the purchase of the Company’s common stock under the ESPP. Unless otherwise determined by the Company’s board of directors, Class A common stock will be purchased for accounts of employees participating in the ESPP at a price per share equal to the lower of (a) 85% of the fair market value of a share of the Company’s Class A common stock on the first date of an offering or (b) 85% of the fair market value of a share of the Company’s Class A common stock on the date of purchase. | ||||||||||||||||
On January 1, 2014, 0.4 million shares of Class A common stock were automatically added to the shares authorized for issuance under the ESPP pursuant to an “evergreen” provision contained in the ESPP. | ||||||||||||||||
Executive Incentive Bonus Plan | ||||||||||||||||
In April 2012, the Company's compensation committee amended its Executive Incentive Bonus Plan to, among other things, permit the settlement of awards under the plan in the form of shares of its Class A common stock. In May 2013, the Company's compensation committee amended its Executive Incentive Bonus Plan to permit the settlement of awards under the plan in any combination of cash or shares of its Class A common stock. For the 2013 and 2012 performance period, actual awards under the Executive Incentive Bonus Plan were settled in Class A common stock issued under its 2010 Equity Incentive Plan with the number of shares issuable to plan participants determined based on the closing sales price of the Company's Class A common stock as determined in trading on the New York Stock Exchange on May 9, 2014 and May 3, 2013, respectively. Additionally, the Company settled all bonus awards for all other employees for the 2013 and 2012 performance period in shares of its Class A common stock. The Company issued 0.6 million shares of its Class A common stock for the 2013 performance period upon settlement of the bonus awards on May 9, 2014. The Company issued 0.8 million shares of its Class A common stock for the 2012 performance period upon settlement of the bonus awards on May 3, 2013. | ||||||||||||||||
Common Stock | ||||||||||||||||
At September 30, 2014, the Company had 500 million authorized shares of Class A common stock and 500 million authorized shares of Class B common stock. Holders of the Company’s Class A and Class B common stock have identical voting rights, except that holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share with respect to transactions that would result in a change of control of the Company or that relate to the Company’s equity incentive plans. In addition, holders of Class B common stock have the exclusive right to elect two members of the Company’s Board of Directors, each referred to as a Class B Director. The shares of Class B common stock are not publicly traded. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock and in most instances automatically converts upon sale or other transfer. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
6. Income Taxes | |
In order to determine the quarterly provision for income taxes, the Company used an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates. The income tax provision consists primarily of income taxes related to the Company's operations in foreign jurisdictions as well as accruals for tax contingencies. Certain significant or unusual items are separately recognized in the quarter during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. | |
As the Company does not believe that it is more-likely-than-not that it will realize a benefit from its U.S. net deferred tax assets, including its U.S. net operating losses, the Company continues to provide a full valuation allowance against those assets and therefore does not incur significant U.S. income tax expense or benefit. Furthermore, the Company does not incur expense or benefit in certain tax free jurisdictions in which it operates. | |
The Company recorded a provision for income taxes of $0.03 million and $0.5 million for the three and nine months ended September 30, 2014. The Company recorded a provision for income taxes of $0.2 million and $0.4 million for the three and nine months ended September 30, 2013. The provision for income taxes for the three and nine months ended September 30, 2014 and 2013 primarily relates to income tax in certain foreign jurisdictions. | |
During the nine months ended September 30, 2014, the Company’s unrecognized tax benefits increased by $0.3 million. The Company does not anticipate its unrecognized tax benefits will change significantly over the next 12 months. Accrued interest and penalties associated with uncertain tax positions as of September 30, 2014 were $0.03 million and $0.02 million, respectively. | |
The Federal examination by the Internal Revenue Service for the years 2010 and 2011 was completed during the three months ended March 31, 2014. Any impact from the audit was included in the 2013 financial statements. The California examination of the 2008 and 2009 years was completed during the three months ended March 31, 2013 with no adjustment to taxable income. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
7. Commitments and Contingencies | |
CrestaTech Litigation | |
On January 21, 2014, CrestaTech Technology Corporation, or CrestaTech, filed a complaint for patent infringement against the Company in the United States District Court of Delaware (the “District Court Litigation”). In its complaint, CrestaTech alleges that the Company infringes U.S. Patent Nos. 7,075,585 and 7,265,792. In addition to asking for compensatory damages, CrestaTech alleges willful infringement and seeks a permanent injunction. CrestaTech also names Sharp Corporation, Sharp Electronics Corp. and VIZIO, Inc. as defendants based upon their alleged use of the Company's television tuners. On January 28, 2014, CrestaTech filed a complaint with the U.S. International Trade Commission, or ITC, alleging that the Company, Sharp, Sharp Electronics, and VIZIO, infringe the same patents asserted in the Delaware action. On May 16, 2014 the ITC granted CrestaTech’s motion to file an amended complaint adding six OEM Respondents, namely, SIO International, Inc., Hon Hai Precision Industry Co., Ltd., Wistron Corp., Wistron Infocomm Technology (America) Corp., Top Victory Investments Ltd. and TPV International (USA), Inc. CrestaTech filed the amended complaint on June 12, 2014, alleging that the Company’s accused products are imported into and sold within the United States by, or on behalf of, the Company, Sharp, Sharp Electronics, VIZIO and the six OEM Respondents. Through its ITC complaints, CrestaTech seeks an exclusion order preventing entry into the United States of certain of the Company's television tuners and televisions containing such tuners from Sharp, Sharp Electronics, and VIZIO. CrestaTech also seeks a cease and desist order prohibiting these defendants from engaging in the importation into, sale for importation into, the sale after importation of, or otherwise transferring within the United States certain of the Company's television tuners or televisions containing such tuners. The target date for completing the ITC investigation is June 29, 2015. The District Court litigation is currently stayed. | |
The Company's litigation with CrestaTech is in the preliminary stages, and it has not recorded an accrual for loss contingencies associated with the litigation; determined that an unfavorable outcome is probable or reasonably possible; or determined that the amount or range of any possible loss is reasonably estimable. | |
Silicon Labs Litigation | |
As previously disclosed in the three and nine months ended September 30, 2013, the Company entered into a settlement agreement with Silicon Laboratories, Inc., or Silicon Labs, that resolved all currently outstanding patent litigation between the Company and Silicon Labs. As a result, the Company recorded $1.25 million in selling, general and administrative expense in the three and nine months ended September 30, 2013. | |
Lease Commitments | |
The Company entered into a lease for approximately 45,000 square feet of office space in Carlsbad, California. The lease has a term of five years, six months, commencing on May 21, 2014. The Company relocated its current operations in Carlsbad, California to the new facility during the nine months ended September 30, 2014. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
8. Subsequent Event | |
On October 6, 2014, the Company announced that it had signed a definitive agreement to acquire Physpeed Co., Ltd., a privately held developer of high-speed physical layer interconnect products addressing enterprise and telecommunications infrastructure market applications. At the closing of the acquisition, the Company expects to pay approximately $11.0 million in cash in exchange for all outstanding shares of capital stock and equity of Physpeed. A portion of the consideration payable to the shareholders will be placed into escrow pursuant to the terms of the definitive merger agreement. In addition, the definitive merger agreement provides for potential earnout consideration of up to $750,000 for the achievement of certain 2015 and 2016 revenue milestones. In addition, the Company plans to enter into retention and performance-based agreements with Physpeed employees for up to $3.25 million to be paid in cash or Class A common stock of the Company based on the achievement of 2015 and 2016 revenue milestones. | |
The boards of directors of each of the companies have approved the merger. The closing, which is expected to occur during the three months ended December 31, 2014, remains subject to customary closing conditions, including the approval of Physpeed’s shareholders. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
MaxLinear, Inc. (the Company) was incorporated in Delaware in September 2003. The Company is a provider of integrated, radio-frequency and mixed-signal integrated circuits for broadband communication applications whose customers include module makers, original equipment manufacturers, or OEMs, and original design manufacturers, or ODMs, who incorporate the Company’s products in a wide range of electronic devices including cable and terrestrial and satellite set top boxes, DOCSIS data and voice gateways, and hybrid analog and digital televisions. The Company is a fabless semiconductor company focusing its resources on the design, sales and marketing of its products. | |
Basis of Presentation and Principles of Consolidation | ' |
Basis of Presentation and Principles of Consolidation | |
The unaudited consolidated financial statements include the accounts of MaxLinear, Inc. and its wholly owned subsidiaries. All intercompany transactions and investments have been eliminated in consolidation. | |
The functional currency of certain foreign subsidiaries is the local currency. Accordingly, assets and liabilities of these foreign subsidiaries are translated at the current exchange rate at the balance sheet date and historical rates for equity. Revenue and expense components are translated at weighted average exchange rates in effect during the period. Gains and losses resulting from foreign currency translation are included as a component of stockholders’ equity. Foreign currency transaction gains and losses are included in the results of operations and, to date, have not been significant. | |
The Company has prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements. In the opinion of management, all adjustments, which include only normal recurring adjustments, considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2013 included in the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission, or SEC, on February 6, 2014. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes of the unaudited consolidated financial statements. Actual results could differ from those estimates. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenue is generated from sales of the Company’s integrated circuits. The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable and 4) collectability is reasonably assured. Title to product transfers to customers either when it is shipped to or received by the customer, based on the terms of the specific agreement with the customer. | |
Revenue is recorded based on the facts at the time of sale. Transactions for which the Company cannot reliably estimate the amount that will ultimately be collected at the time the product has shipped and title has transferred to the customer are deferred until the amount that is probable of collection can be determined. Items that are considered when determining the amounts that will be ultimately collected are: a customer’s overall creditworthiness and payment history; customer rights to return unsold product; customer rights to price protection; customer payment terms conditioned on sale or use of product by the customer; or extended payment terms granted to a customer. | |
A portion of the Company’s revenues are generated from sales made through distributors under agreements allowing for pricing credits and/or stock rotation rights of return. Revenues from the Company’s distributors accounted for 30% and 28% of net revenue for the three and nine months ended September 30, 2014. Revenues from the Company’s distributors accounted for 27% and 29% of net revenue for the three and nine months ended September 30, 2013. Pricing credits to the Company’s distributors may result from its price protection and unit rebate provisions, among other factors. These pricing credits and/or stock rotation rights prevent the Company from being able to reliably estimate the final sales price of the inventory sold and the amount of inventory that could be returned pursuant to these agreements. As a result, for sales through distributors, the Company has determined that it does not meet all of the required revenue recognition criteria at the time it delivers its products to distributors as the final sales price is not fixed or determinable. | |
For these distributor transactions, revenue is not recognized until product is shipped to the end customer and the amount that will ultimately be collected is fixed or determinable. Upon shipment of product to these distributors, title to the inventory transfers to the distributor and the distributor is invoiced, generally with 30 day terms. On shipments to the Company’s distributors where revenue is not recognized, the Company records a trade receivable for the selling price as there is a legally enforceable right to payment, relieving the inventory for the carrying value of goods shipped since legal title has passed to the distributor, and records the corresponding gross profit in the consolidated balance sheet as a component of deferred revenue and deferred profit, representing the difference between the receivable recorded and the cost of inventory shipped. Future pricing credits and/or stock rotation rights from the Company’s distributors may result in the realization of a different amount of profit included in the Company’s future consolidated statements of operations than the amount recorded as deferred profit in the Company’s consolidated balance sheets. | |
The Company records reductions in revenue for estimated pricing adjustments related to price protection agreements with the Company’s end customers in the same period that the related revenue is recorded. Price protection pricing adjustments are recorded at the time of sale as a reduction to revenue and an increase in the Company’s accrued liabilities. The amount of these reductions is based on specific criteria included in the agreements and other factors known at the time. The Company accrues 100% of potential price protection adjustments at the time of sale and does not apply a breakage factor. The Company reverses the accrual for unclaimed price protection amounts as specific programs contractually end or when the Company believes unclaimed amounts are no longer subject to payment and will not be paid. See Note 4 for a summary of the Company's price protection activity. | |
Litigation and Settlement Costs | ' |
Litigation and Settlement Costs | |
Legal costs are expensed as incurred. The Company is involved in disputes, litigation and other legal actions in the ordinary course of business. The Company continually evaluates uncertainties associated with litigation and records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and (ii) the loss or range of loss can be reasonably estimated. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning in the first quarter of fiscal year 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. | |
In August 2014, the FASB issued new accounting guidance related to the disclosures around going concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance will be effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption is permitted. The Company does not expect the adoption of this standard to significantly impact its financial statements. |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Summary of Basic and Diluted Earnings Per Share(Table) | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (3,205 | ) | $ | (4,882 | ) | $ | (4,679 | ) | $ | (10,086 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—basic | 36,901 | 34,506 | 36,127 | 33,698 | ||||||||||||
Dilutive common stock equivalents | — | — | — | — | ||||||||||||
Weighted average common shares outstanding—diluted | 36,901 | 34,506 | 36,127 | 33,698 | ||||||||||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.30 | ) | ||||
Diluted | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.30 | ) |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis(Tables) | ' | |||||||||||||||
The composition of financial instruments is as follows: | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Money market funds | $ | 603 | $ | — | $ | — | $ | 603 | ||||||||
Government debt securities | 23,419 | 13 | — | 23,432 | ||||||||||||
Corporate debt securities | 36,451 | 6 | (27 | ) | 36,430 | |||||||||||
60,473 | 19 | (27 | ) | 60,465 | ||||||||||||
Less amounts included in cash and cash equivalents | (603 | ) | — | — | (603 | ) | ||||||||||
$ | 59,870 | $ | 19 | $ | (27 | ) | $ | 59,862 | ||||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
Money market funds | $ | 406 | $ | — | $ | — | $ | 406 | ||||||||
Government debt securities | 26,532 | 10 | (5 | ) | 26,537 | |||||||||||
Corporate debt securities | 33,355 | 17 | (4 | ) | 33,368 | |||||||||||
60,293 | 27 | (9 | ) | 60,311 | ||||||||||||
Less amounts included in cash and cash equivalents | (406 | ) | — | — | (406 | ) | ||||||||||
$ | 59,887 | $ | 27 | $ | (9 | ) | $ | 59,905 | ||||||||
Financial Instruments Measured on Recurring Basis(Tables) | ' | |||||||||||||||
The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis: | ||||||||||||||||
Fair Value Measurements at September 30, 2014 | ||||||||||||||||
Balance at | Quoted Prices | Significant | Significant | |||||||||||||
30-Sep-14 | in Active | Other | Unobservable | |||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Money market funds | $ | 603 | $ | 603 | $ | — | $ | — | ||||||||
Government debt securities | 23,432 | — | 23,432 | — | ||||||||||||
Corporate debt securities | 36,430 | — | 36,430 | — | ||||||||||||
$ | 60,465 | $ | 603 | $ | 59,862 | $ | — | |||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Balance at | Quoted Prices | Significant | Significant | |||||||||||||
December 31, | in Active | Other | Unobservable | |||||||||||||
2013 | Markets for | Observable | Inputs | |||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Money market funds | $ | 406 | $ | 406 | $ | — | $ | — | ||||||||
Government debt securities | 26,537 | — | 26,537 | — | ||||||||||||
Corporate debt securities | 33,368 | — | 33,368 | — | ||||||||||||
$ | 60,311 | $ | 406 | $ | 59,905 | $ | — | |||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||||
Cash, Cash Equivalents and Investments(Table) | ' | |||||||||
Cash and cash equivalents and investments consist of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Cash and cash equivalents | $ | 34,055 | $ | 26,450 | ||||||
Short-term investments | 47,740 | 35,494 | ||||||||
Long-term investments | 12,122 | 24,410 | ||||||||
$ | 93,917 | $ | 86,354 | |||||||
Inventory(Table) | ' | |||||||||
Inventory consists of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Work-in-process | $ | 3,424 | $ | 4,384 | ||||||
Finished goods | 6,152 | 5,648 | ||||||||
$ | 9,576 | $ | 10,032 | |||||||
Property and Equipment(Table) | ' | |||||||||
Property and equipment consist of the following: | ||||||||||
Useful Life | September 30, | December 31, | ||||||||
(in Years) | 2014 | 2013 | ||||||||
Furniture and fixtures | 5 | $ | 714 | $ | 346 | |||||
Machinery and equipment | 3 -5 | 12,520 | 9,488 | |||||||
Masks and production equipment | 2 | 7,441 | 4,764 | |||||||
Software | 3 | 798 | 743 | |||||||
Leasehold improvements | 4 -5 | 2,416 | 924 | |||||||
Construction in progress | N/A | 131 | 82 | |||||||
24,020 | 16,347 | |||||||||
Less accumulated depreciation and amortization | (13,895 | ) | (10,836 | ) | ||||||
$ | 10,125 | $ | 5,511 | |||||||
Intangible Assets(Table) | ' | |||||||||
Intangible assets consist of the following: | ||||||||||
Weighted | September 30, | December 31, | ||||||||
Average | 2014 | 2013 | ||||||||
Amortization | ||||||||||
Period | ||||||||||
(in Years) | ||||||||||
Licensed technology | 3 | $ | 2,821 | $ | 2,821 | |||||
Less accumulated amortization | (2,310 | ) | (2,072 | ) | ||||||
$ | 511 | $ | 749 | |||||||
Amortization of Company's Intangible Assets(Table) | ' | |||||||||
The following table presents future amortization of the Company’s intangible assets at September 30, 2014: | ||||||||||
Amortization | ||||||||||
2014 | $ | 81 | ||||||||
2015 | 319 | |||||||||
2016 | 111 | |||||||||
Total | $ | 511 | ||||||||
Deferred Revenue and Deferred Profit(Table) | ' | |||||||||
Deferred revenue and deferred profit consist of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Deferred revenue—rebates | $ | 10 | $ | 110 | ||||||
Deferred revenue—distributor transactions | 7,428 | 3,922 | ||||||||
Deferred cost of net revenue—distributor transactions | (2,553 | ) | (1,381 | ) | ||||||
$ | 4,885 | $ | 2,651 | |||||||
Price Protection Liability(Table) | ' | |||||||||
Accrued price protection liability consists of the following activity: | ||||||||||
Nine Months Ended | ||||||||||
September 30, | ||||||||||
2014 | 2013 | |||||||||
Beginning balance | $ | 15,017 | $ | 7,880 | ||||||
Charged as a reduction of revenue | 17,895 | 15,920 | ||||||||
Reversal of unclaimed rebates | (390 | ) | (27 | ) | ||||||
Payments | (16,037 | ) | (11,276 | ) | ||||||
Ending balance | $ | 16,485 | $ | 12,497 | ||||||
Accrued Expenses(Table) | ' | |||||||||
Accrued expenses and other current liabilities consist of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Accrued technology license payments | $ | 3,000 | $ | 3,000 | ||||||
Accrued professional fees | 564 | 390 | ||||||||
Accrued litigation costs | 306 | — | ||||||||
Other | 1,615 | 895 | ||||||||
$ | 5,485 | $ | 4,285 | |||||||
StockBased_Compensation_and_Em1
Stock-Based Compensation and Employee Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Fair Value of Stock Options(Table) | ' | |||||||||||||||
The fair values of stock options were estimated at their respective grant date using the following assumptions: | ||||||||||||||||
Stock Options | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Weighted-average grant date fair value per share | $ | 4.03 | $ | 3.24 | ||||||||||||
Risk-free interest rate | 1.7 | % | 0.71 | % | ||||||||||||
Dividend yield | — | — | ||||||||||||||
Expected life (years) | 4.56 | 4.75 | ||||||||||||||
Volatility | 51 | % | 56 | % | ||||||||||||
Fair Value of Employee Stock Purchase Rights(Table) | ' | |||||||||||||||
Employee Stock Purchase Rights | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Weighted-average grant date fair value per share | $ | 2.47 | $ | 1.85 | ||||||||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | ||||||||||||
Dividend yield | — | — | ||||||||||||||
Expected life (years) | 0.5 | 0.5 | ||||||||||||||
Volatility | 47.75 | % | 41.58 | % | ||||||||||||
Stock-Based Compensation (Table) | ' | |||||||||||||||
The Company recognized stock-based compensation in the statements of operations as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of net revenue | $ | 35 | $ | 29 | $ | 96 | $ | 79 | ||||||||
Research and development | 2,574 | 2,183 | 7,152 | 6,095 | ||||||||||||
Selling, general and administrative | 1,393 | 1,251 | 3,832 | 3,417 | ||||||||||||
$ | 4,002 | $ | 3,463 | $ | 11,080 | $ | 9,591 | |||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' |
Percentage of revenue from company's distributors | 30.00% | 27.00% | 28.00% | 29.00% |
Term of Invoice of the distributor | ' | ' | '30 days | ' |
Net_Income_Loss_Per_Share_Summ
Net Income (Loss) Per Share - Summary of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net loss | ($3,205) | ($4,882) | ($4,679) | ($10,086) |
Denominator: | ' | ' | ' | ' |
Weighted average common shares outstanding-basic (shares) | 36,901 | 34,506 | 36,127 | 33,698 |
Dilutive common stock equivalents (shares) | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding-diluted (shares) | 36,901 | 34,506 | 36,127 | 33,698 |
Net loss per share: | ' | ' | ' | ' |
Basic (usd per share) | ($0.09) | ($0.14) | ($0.13) | ($0.30) |
Diluted (usd per share) | ($0.09) | ($0.14) | ($0.13) | ($0.30) |
Net_Income_Loss_Per_Share_Addi
Net Income (Loss) Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
class | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Total number of class of stock outstanding | ' | ' | 2 | ' |
Common stock equivalents (shares) | 3.1 | 3.5 | 3.2 | 3.1 |
Financial_Instruments_Composit
Financial Instruments - Composition of Financial Instruments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $60,473 | $60,293 |
Available-for-sale Securities Gross Unrealized Gain Accumulated in Investments | 19 | 27 |
Available-for-sale Securities Gross Unrealized Loss Accumulated in Investments | 27 | 9 |
Fair Value | 60,465 | 60,311 |
Cash and cash equivalents [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 603 | 406 |
Available-for-sale Securities Gross Unrealized Gain Accumulated in Investments | 0 | 0 |
Available-for-sale Securities Gross Unrealized Loss Accumulated in Investments | 0 | 0 |
Fair Value | 603 | 406 |
Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 59,870 | 59,887 |
Available-for-sale Securities Gross Unrealized Gain Accumulated in Investments | 19 | 27 |
Available-for-sale Securities Gross Unrealized Loss Accumulated in Investments | 27 | 9 |
Fair Value | 59,862 | 59,905 |
US Government Agencies Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 23,419 | 26,532 |
Available-for-sale Securities Gross Unrealized Gain Accumulated in Investments | 13 | 10 |
Available-for-sale Securities Gross Unrealized Loss Accumulated in Investments | 0 | 5 |
Fair Value | 23,432 | 26,537 |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 36,451 | 33,355 |
Available-for-sale Securities Gross Unrealized Gain Accumulated in Investments | 6 | 17 |
Available-for-sale Securities Gross Unrealized Loss Accumulated in Investments | 27 | 4 |
Fair Value | 36,430 | 33,368 |
Money market funds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 603 | 406 |
Available-for-sale Securities Gross Unrealized Gain Accumulated in Investments | 0 | 0 |
Available-for-sale Securities Gross Unrealized Loss Accumulated in Investments | 0 | 0 |
Fair Value | $603 | $406 |
Financial_Instruments_Financia
Financial Instruments - Financial Instruments Measured on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | $60,465 | $60,311 |
Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 603 | 406 |
Fair Value Measurements Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 60,465 | 60,311 |
Fair Value Measurements Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 23,432 | 26,537 |
Fair Value Measurements Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 36,430 | 33,368 |
Fair Value Measurements Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 603 | 406 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 603 | 406 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 603 | 406 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 59,862 | 59,905 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 23,432 | 26,537 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 36,430 | 33,368 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, available-for-sale securities | $0 | $0 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
debt_security | ||
Debt Instrument [Line Items] | ' | ' |
Number of corporate debt securities | 16 | ' |
Fair value of debt | $21,200,000 | ' |
Available-for-sale Securities Gross Unrealized Loss Accumulated in Investments | 27,000 | 9,000 |
Transfer of securities, Level 1 | 0 | ' |
Transfer of securities, Level 2 | 0 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | $0 | ' |
Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Due date of company's long term available for sale securities | '1 year | ' |
Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Period of unrealized loss position | '12 months | ' |
Due date of company's long term available for sale securities | '2 years | ' |
Balance_Sheer_Details_Cash_and
Balance Sheer Details - Cash and Investments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Balance Sheet Related Disclosures [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents | $34,055 | $26,450 | $26,500 | $21,810 |
Short-term investments, available-for-sale | 47,740 | 35,494 | ' | ' |
Long-term investments, available-for-sale | 12,122 | 24,410 | ' | ' |
Investments and Cash | $93,917 | $86,354 | ' | ' |
Balance_Sheet_Details_Inventor
Balance Sheet Details - Inventory (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
Work-in-process | $3,424 | $4,384 |
Finished goods | 6,152 | 5,648 |
Inventory Total | $9,576 | $10,032 |
Balance_Sheet_Details_Property
Balance Sheet Details - Property and Equipment (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $24,020 | $16,347 |
Less accumulated depreciation and amortization | -13,895 | -10,836 |
Property and equipment, net | 10,125 | 5,511 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '5 years | ' |
Property and equipment, Gross | 714 | 346 |
Machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 12,520 | 9,488 |
Machinery and equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '3 years | ' |
Machinery and equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '5 years | ' |
Masks and production equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '2 years | ' |
Property and equipment, Gross | 7,441 | 4,764 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '3 years | ' |
Property and equipment, Gross | 798 | 743 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 2,416 | 924 |
Leasehold improvements [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '4 years | ' |
Leasehold improvements [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '5 years | ' |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $131 | $82 |
Balance_Sheet_Details_Intangib
Balance Sheet Details - Intangible Assets (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | $511 | $749 |
Licensed Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period in years | '3 years | ' |
Intangibles assets, Gross | 2,821 | 2,821 |
Less accumulated amortization | ($2,310) | ($2,072) |
Balance_Sheet_Details_Amortiza
Balance Sheet Details - Amortization of Company's Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
2014 | $81 | ' |
2015 | 319 | ' |
2016 | 111 | ' |
Total | $511 | $749 |
Balance_Sheet_Details_Deferred
Balance Sheet Details - Deferred Revenue and Deferred Profit (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
Deferred revenue-rebates | $10 | $110 |
Deferred revenue - distributor transactions | 7,428 | 3,922 |
Deferred cost of net revenue - distributor transactions | -2,553 | -1,381 |
Deferred revenue and deferred profit | $4,885 | $2,651 |
Balance_Sheet_Details_Balance_
Balance Sheet Details Balance Sheet Details- Accrued Price Protection Liability (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Accrued Price Protection Rebate Activity [Roll Forward] | ' | ' |
Begining Balance | $15,017 | $7,880 |
Price Protection Rebate Charges | 17,895 | 15,920 |
Reversal Of Unclaimed Rebates | -390 | -27 |
Price Protection payments | -16,037 | -11,276 |
Ending Balance | $16,485 | $12,497 |
Balance_Sheet_Details_Accrued_
Balance Sheet Details - Accrued Expenses (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
Accrued technology license payments | $3,000 | $3,000 |
Accrued professional fees | 564 | 390 |
Accrued litigation costs | 306 | 0 |
Other | 1,615 | 895 |
Total | $5,485 | $4,285 |
StockBased_Compensation_and_Em2
Stock-Based Compensation and Employee Benefit Plans Stock-Based Compensation and Employee Benefits Plan - Fair Value of Stock Options (Details) (Stock Option [Member], USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Stock Option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-average grant date fair value per share | $4.03 | $3.24 |
Risk-free interest rate | 1.70% | 0.71% |
Dividend yield | 0.00% | 0.00% |
Expected life (years) | '4 years 205 days | '4 years 275 days |
Volatility | 51.00% | 56.00% |
StockBased_Compensation_and_Em3
Stock-Based Compensation and Employee Benefit Plans Stock-Based Compensation and Employee Benefit Plans - Fair Value of Employee Stock Purchase Rights (Details) (Employee Stock Purchase Rights [Member], USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Employee Stock Purchase Rights [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-average grant date fair value per share | $2.47 | $1.85 |
Risk-free interest rate | 0.05% | 0.09% |
Dividend yield | 0.00% | 0.00% |
Expected life (years) | '0 years 182 days | '0 years 182 days |
Volatility | 47.75% | 41.58% |
StockBased_Compensation_and_Em4
Stock-Based Compensation and Employee Benefit Plans - Stock-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock based compensation | $4,002 | $3,463 | $11,080 | $9,591 |
Cost of net revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock based compensation | 35 | 29 | 96 | 79 |
Research and development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock based compensation | 2,574 | 2,183 | 7,152 | 6,095 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock based compensation | $1,393 | $1,251 | $3,832 | $3,417 |
StockBased_Compensation_and_Em5
Stock-Based Compensation and Employee Benefit Plans - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 02, 2014 | Sep. 30, 2014 | Jan. 02, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Class A Common Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Equity Incentive Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | RSU and RSA [Member] | RSU and RSA [Member] | ||||
vote | vote | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 700,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Unit, Grant Date Fair Value | $6.40 | $7.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.04 | $6.39 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 400,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payments Awards, Options, Grant Date Fair Value | $1.70 | $2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fair value market of common stock | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period for new restricted stock units | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of option granted, minimum | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of option granted, maximum | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | 400,000 | ' | ' |
Shares Issued upon Settlement of Executive Bonus Plan | 600,000 | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution of earnings by employees | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' |
Percentage of purchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' |
Percentage of common stock on the date of purchase | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' |
Common stock, shares authorized (shares) | 550,000,000 | ' | 550,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' |
Voting rights per share | ' | ' | ' | 1 | ' | 10 | ' | ' | ' | ' | ' | ' |
Number of convertible common stock | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $28,000 | $155,000 | $456,000 | $366,000 |
Unrecognized tax benefits | ' | ' | 300,000 | ' |
Period of change of unrecognized tax benefits | ' | ' | '12 months | ' |
Accrued interest on accrued penalties associated with uncertain tax positions | 30,000 | ' | 30,000 | ' |
Accrued penalties associated with uncertain tax position | 20,000 | ' | 20,000 | ' |
Taxable Income Adjustment from Tax Examination | ' | $0 | ' | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies-Additional Details (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
sqft | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Litigation Settlement, Amount | ' | $1.25 |
Area of Real Estate Property | 45,000 | ' |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | '5 years 6 months | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], Physpeed Acquisition[Member], USD $) | 0 Months Ended |
Oct. 06, 2014 | |
Subsequent Event [Member] | Physpeed Acquisition[Member] | ' |
Subsequent Event [Line Items] | ' |
Approximate cash outflow associated with the acquisition of a business | $11,000,000 |
Potential earnout consideration | 750,000 |
Cash or noncash consideration given in a transaction related to retention and/or performance based compensation | $3,250,000 |