Ruckus Wireless (RKUS) 10-Q 30 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2015	Jul. 24, 2015
Entity [Abstract]
Entity Registrant Name	RUCKUS WIRELESS INC
Entity Central Index Key	1,294,016
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		87,596,785

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 63,379	$ 56,083
Short-term investments	148,478	142,706
Accounts receivable, net of allowance for doubtful accounts of $800 as of June 30, 2015 and December 31, 2014	67,692	59,553
Inventories	24,059	21,064
Deferred costs	3,122	4,414
Deferred tax assets	6,094	6,205
Prepaid expenses and other current assets	6,250	5,367
Total current assets	319,074	295,392
Property and equipment, net	18,275	13,636
Goodwill	9,945	9,945
Intangible assets, net	5,941	7,351
Non-current deferred tax asset	24,568	21,166
Restricted cash	5,000	5,000
Other assets	1,414	1,504
Total assets	384,217	353,994
Current liabilities:
Accounts payable	28,527	23,538
Accrued compensation	14,554	13,765
Accrued liabilities	7,654	5,282
Deferred revenue	36,228	39,231
Total current liabilities	86,963	81,816
Non-current deferred revenue	11,870	10,554
Non-current deferred tax liabilities	410	596
Other non-current liabilities	1,438	1,379
Total liabilities	$ 100,681	$ 94,345
Commitments and contingencies (Note 6)
Stockholders’ equity:
Common stock, $0.001 par value; 250,000 shares authorized as of June 30, 2015 and December 31, 2014; 87,524 and 85,110 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	$ 88	$ 85
Additional paid-in capital	296,935	273,276
Accumulated other comprehensive loss	(58)	(97)
Accumulated deficit	(13,429)	(13,615)
Total stockholders’ equity	283,536	259,649
Total liabilities and stockholders’ equity	$ 384,217	$ 353,994

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 800	$ 800
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	250,000	250,000
Common Stock, Shares, Issued	87,524	85,110
Common stock, shares outstanding	87,524	85,110

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Product	$ 85,040	$ 75,352	$ 160,337	$ 145,427
Service	7,190	5,648	13,971	10,625
Total revenue	92,230	81,000	174,308	156,052
Cost of revenue:
Product	26,720	22,209	49,951	43,705
Service	3,683	2,932	7,225	5,691
Total cost of revenue	30,403	25,141	57,176	49,396
Gross profit	61,827	55,859	117,132	106,656
Operating expenses:
Research and development	22,843	18,954	44,139	37,093
Sales and marketing	27,696	24,412	53,774	47,682
General and administrative	9,921	8,358	19,355	16,795
Total operating expenses	60,460	51,724	117,268	101,570
Operating income (loss)	1,367	4,135	(136)	5,086
Interest income	156	46	297	92
Other expense, net	(94)	(84)	(172)	(110)
Income (loss) before income taxes	1,429	4,097	(11)	5,068
Income tax expense (benefit)	670	2,658	(197)	3,356
Net income	$ 759	$ 1,439	$ 186	$ 1,712
Net income per share:
Basic (USD per share)	$ 0.01	$ 0.02	$ 0	$ 0.02
Diluted (USD per share)	$ 0.01	$ 0.02	$ 0	$ 0.02
Weighted average number of shares outstanding, basic (in shares)		82,315		81,799
Weighted average number of shares outstanding, diluted (in shares)	95,465	92,358	95,001	92,967

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 759	$ 1,439	$ 186	$ 1,712
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on short-term investments	(46)	(7)	39	(13)
Comprehensive income	$ 713	$ 1,432	$ 225	$ 1,699

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net income	$ 186	$ 1,712
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	5,891	4,261
Provision for doubtful accounts	0	400
Stock-based compensation	14,407	12,686
Amortization of investment premiums, net of accretion of purchase discounts	1,165	580
Deferred income taxes	(1,038)	2,812
Excess tax benefit from employee stock incentive plans	(2,491)	(2,226)
Other	10	0
Changes in operating assets and liabilities:
Accounts receivable	(8,139)	(14,464)
Inventories	(2,995)	139
Deferred costs	1,292	(105)
Prepaid expenses and other current assets	(940)	(379)
Other assets	106	(226)
Accounts payable	4,345	(67)
Accrued compensation	789	2,292
Accrued liabilities	2,431	1,175
Deferred revenue	(1,687)	7,269
Net cash provided by operating activities	13,332	15,859
Cash flows from investing activities
Purchase of investments	(62,741)	(66,335)
Proceeds from the maturity of investments	55,952	49,321
Purchase of property and equipment	(8,486)	(4,523)
Increase in facility lease deposits	(16)	(15)
Net cash used in investing activities	(15,291)	(21,552)
Cash flows from financing activities:
Proceeds from exercise of stock options	4,404	3,169
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	2,360	2,033
Excess tax benefit from employee stock incentive plans	2,491	2,226
Net cash provided by financing activities	9,255	7,428
Net increase in cash and cash equivalents	7,296	1,735
Cash and cash equivalents at beginning of period	56,083	91,282
Cash and cash equivalents at end of period	63,379	93,017
Supplemental Cash Flow Information [Abstract]
Income Taxes Paid	506	426
Non-cash investing and financing activities
Purchases of property and equipment recorded in accounts payable and accrued liabilities	$ 1,735	$ 832

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business — Ruckus Wireless, Inc. (“Ruckus”) is a global supplier of advanced, carrier-class WiFi solutions. Ruckus’ solutions, which are called Smart WiFi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with increasing wireless traffic demands created by the growth in the number of users equipped with more powerful smart wireless devices using increasingly data rich applications and services. Ruckus markets and sells its products and technology directly and indirectly through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart WiFi solutions offer carrier-class features and functionality such as enhanced reliability, consistent performance, extended range and massive scalability. Ruckus’ products include high capacity, high-speed hardware gateways, controllers, wireless bridges and indoor and outdoor access points, software platforms providing gateway, controller and reporting, analytics and management solutions, and unique WiFi-related cloud services, such as location-based positioning (“LBS”) and public access. These hardware and software products and cloud services incorporate various elements of Ruckus’ proprietary technologies, including Smart Radio, SmartCast, SmartMesh, SmartCell and Smart Scaling, to enable high performance in a variety of challenging operating environments. Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in Ruckus’ Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 25, 2015. The condensed consolidated balance sheet as of December 31, 2014, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2015 or any future period. Principles of Consolidation — The condensed financial statements include the accounts of Ruckus and its wholly owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by management include the determination of revenue recognition, inventory, goodwill and intangible asset valuation, accounting for income taxes, stock-based compensation and warranty liability. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Actual results could materially differ from those estimates. Summary of Significant Accounting Policies — There have been no material changes to our significant accounting policies as compared to those described in our Annual Report on Form 10-K for the year ended December 31, 2014. Recent Accounting Pronouncements — In May 2014, the Financial Accounting Standard Board (“FASB”) and International Accounting Standards Board (“IASB”) issued accounting standards update (“ASU”) 2014-09, Revenue from Contracts with Customers, a converged standard on revenue recognition. Some of the main areas of transition to the new standard include, among others, transfer of control (revenue is recognized when a customer obtains control of a good or service), allocation of transaction price based on relative standalone selling price (entities that sell multiple goods or services in a single arrangement must allocate the consideration to each of those goods or services), contract costs (entities sometimes incur costs, such as sales commissions or mobilization activities, to obtain or fulfill a contract), and disclosures (extensive disclosures are required to provide greater insight into both revenue that has been recognized, and revenue that is expected to be recognized in the future from existing contracts). In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The accounting standard will be effective for the Company beginning in its first quarter of 2018, with early adoption permitted, but not before the original effective date of annual periods beginning after December 15, 2016, using one of two methods of adoption: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients as defined within the standard; or (ii) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application inclusive of certain additional disclosures. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial position, results of operations and cash flows. Concentrations of Credit Risk and Significant Customers — Financial instruments that subject the Company to significant concentrations of credit risk primarily consist of cash, cash equivalents, short-term investments and accounts receivable. The Company invests only in high credit quality instruments and maintains its cash, cash equivalents and short-term investments in fixed income securities. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company’s accounts receivable are primarily derived from distributors and service providers located in the Americas, Europe, and Asia Pacific. The Company generally does not require its customers to provide collateral to support accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. The Company has recorded an allowance for doubtful accounts for those receivables management has determined to not be collectible. The percentages of revenue from individual customers totaling greater than 10% of total consolidated revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Channel partner A 16.7 % 15.8 % 15.1 % 15.3 % Channel partner B 13.8 % 14.0 % 12.1 % 13.5 % Channel partner C 11.3 % 11.8 % * 11.8 % * Less than 10% No single end-customer accounted for more than 10% of total consolidated revenue. The percentage of receivables from individual customers totaling greater than 10% of total consolidated accounts receivable were as follows: June 30, December 31, 2015 2014 Channel partner C 22.4 % 12.5 %

FAIR VALUE DISCLOSURE

FAIR VALUE DISCLOSURE	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURE	FAIR VALUE DISCLOSURE Assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The Company categorizes its financial instruments into a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Hierarchical levels that are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical 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 did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. The Company’s assets that were measured at fair value by level within the fair value hierarchy were as follows (in thousands): June 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash equivalents: Money market funds $ 367 $ 367 $ — $ — Short-term investments: Corporate debt securities 122,232 — 122,232 — U.S. government agency securities 26,246 — 26,246 — Total assets measured and recorded at fair value $ 148,845 $ 367 $ 148,478 $ — December 31, 2014 Fair Value Level 1 Level 2 Level 3 Assets: Cash equivalents: Money market funds $ 2,771 $ 2,771 $ — $ — Corporate debt securities 3,000 — 3,000 — Short-term investments: Corporate debt securities 118,323 — 118,323 — U.S. government agency securities 24,383 — 24,383 — Total assets measured and recorded at fair value $ 148,477 $ 2,771 $ 145,706 $ —

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	SHORT-TERM INVESTMENTS Short-term investments consisted of the following (in thousands): June 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 122,309 $ 11 $ (88 ) $ 122,232 U.S. government agency securities 26,234 12 — 26,246 Total short-term investments $ 148,543 $ 23 $ (88 ) $ 148,478 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 118,470 $ — $ (147 ) $ 118,323 U.S. government agency securities 24,392 4 (13 ) 24,383 Total short-term investments $ 142,862 $ 4 $ (160 ) $ 142,706 The gross realized gains and losses related to the Company’s short-term investments were not material for the six months ended June 30, 2015. The cost basis and fair value of the short-term investments by contractual maturity consist of the following (in thousands): June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 111,553 $ 111,503 $ 114,231 $ 114,113 Over one year and less than two years 36,990 36,975 28,631 28,593 Total short-term investments $ 148,543 $ 148,478 $ 142,862 $ 142,706 Short-term investments in an unrealized loss position consisted of the following (in thousands): June 30, 2015 December 31, 2014 Less Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 99,219 $ (88 ) $ 105,187 $ (147 ) U.S. government agency securities — — 15,773 (13 ) Total short-term investments $ 99,219 $ (88 ) $ 120,960 $ (160 ) As of June 30, 2015 and December 31, 2014, no short-term investments were in a continuous unrealized loss position for more than twelve months. The Company does not intend to sell any of these investments, and it is not more likely than not, that the Company would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity.

GOODWILL AND INTANGIBLES ASSETS

GOODWILL AND INTANGIBLES ASSETS	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Intangible assets consisted of the following (in thousands, except years): Gross Carrying Accumulated Net Carrying Weighted Average June 30, 2015 Purchased technology $ 12,600 $ (6,659 ) $ 5,941 2.4 years December 31, 2014 Purchased technology $ 12,600 $ (5,249 ) $ 7,351 2.8 years The following table presents the estimated future amortization expense of intangible assets as of June 30, 2015 (in thousands): Year ending December 31, Amount 2015 (remaining six months) $ 1,410 2016 2,531 2017 1,500 2018 500 Total amortization $ 5,941 The Company had goodwill of $9.9 million as of June 30, 2015 and December 31, 2014 . No impairment has been recognized related to the goodwill balance.

DEFERRED REVENUE

DEFERRED REVENUE	6 Months Ended
	Jun. 30, 2015
Deferred Revenue Disclosure [Abstract]
DEFERRED REVENUE	DEFERRED REVENUE Deferred revenue consisted of the following (in thousands): June 30, December 31, 2015 2014 Product $ 17,410 $ 22,900 Service 30,688 26,885 Total deferred revenue $ 48,098 $ 49,785 Reported as: Current $ 36,228 $ 39,231 Non-current 11,870 10,554 Total deferred revenue $ 48,098 $ 49,785 Deferred product revenue relates to arrangements where not all revenue recognition criteria have been met. Deferred service revenue represents support contracts and software licensed as a service (“SaaS”) billed in advance and revenue is recognized ratably over the service period, typically one to 5 years .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Operating Leases —The Company’s primary facilities are located in Sunnyvale, California, Shenzhen, China, Singapore, Taipei, Taiwan, Bangalore, India and Woodburn Green, United Kingdom and are leased under non-cancelable operating lease arrangements. Future minimum lease payments under non-cancelable operating leases were as follows (in thousands): Years ending December 31, Amount 2015 (remaining six months) $ 2,044 2016 3,994 2017 3,620 2018 3,266 2019 2,567 Thereafter 7,489 Operating lease obligations $ 22,980 Litigation — The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business. Management is not currently aware of any matters that it expects will have a material adverse effect on the consolidated financial position, results of operations, or cash flows of the Company. For the three months ended June 30, 2015 and 2014, and six months ended June 30, 2015 , the Company did not have any material legal settlements. For the six months ended June 30, 2014, the Company settled several patent litigation claims for a net gain of $0.8 million , which is included in general and administrative expense in the condensed consolidated statements of operations. Purchase Commitments — As of June 30, 2015 , the Company had current purchase commitments of $13.4 million for inventory and specific contractual services. Indemnification Agreements — The Company indemnifies its directors for certain events or occurrences, subject to certain limits, while the director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the director’s term of service. The Company may terminate the indemnification agreements with its directors upon the termination of their services as directors of the Company, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited; however, the Company has a director insurance liability policy that limits its exposure. The Company believes the fair value of these indemnification agreements is minimal. The Company has also entered into customary indemnification agreements with each of its officers. The Company indemnifies its channel partners against certain claims alleging that the Company’s products (excluding custom products and/or custom support) infringe a patent, copyright, trade secret, or trademark, provided that a channel partner promptly notifies the Company in writing of the claim and such channel partner cooperates with the Company and grants the Company the authority to control the defense and any related settlement. The Company has not recorded any liabilities for these agreements as of June 30, 2015 and December 31, 2014 . Reimbursement of Penalties — As of June 30, 2015 and December 31, 2014 , the Company held $5.0 million in escrow to secure an indemnification agreement. If triggered, the Company will indemnify a channel partner for reimbursement of penalties assessed under the Information Technology Act of India (“IT Act”). The IT Act specifies penalties for network service providers in the event of illegal or unauthorized use of computers, computer systems and data stored therein. In the event that Ruckus equipment is the cause of a network service provider breach, the Company is required to indemnify the channel partner, without limitation to the amount, for penalties reimbursed by the channel partner to the network service provider under the IT Act. The indemnification period is six years beginning from April 2013. To date no claims have been made under the IT Act, for which the Company would be potentially liable. Warranties — The Company offers a limited lifetime hardware warranty on its indoor WLAN products and a limited warranty for all other hardware products for a period of up to one year . The Company estimates the costs that may be incurred under its warranties and records a liability for products sold as a charge to cost of revenue. Estimates of future warranty costs are largely based on historical experience of product failure rates and material usage incurred in correcting product failures. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. The warranty liability is included as a component of accrued liabilities in the accompanying condensed consolidated balance sheets. Changes in the warranty liability were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period $ 924 $ 896 $ 803 $ 1,038 Changes in existing warranty 22 (207 ) (60 ) (114 ) Warranty expense 170 298 560 554 Obligations fulfilled (176 ) (140 ) (363 ) (631 ) Balance at end of period $ 940 $ 847 $ 940 $ 847

EQUITY AWARD PLANS

EQUITY AWARD PLANS	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY AWARD PLANS	EQUITY AWARD PLANS Stock Option Activity The following table summarizes the outstanding stock option activity and a summary of information related to stock options (in thousands, except per share amounts and years): Common Stock Options Outstanding Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance, December 31, 2014 17,042 $ 5.60 6.7 $ 119,782 Options granted 279 11.12 Options exercised (1,645) 2.68 Options forfeited (496) 9.84 Balance, June 30, 2015 15,180 $ 5.88 6.2 $ 82,680 Options exercisable as of June 30, 2015 11,415 $ 4.28 5.6 $ 75,610 Options vested and expected to vest as of June 30, 2015 15,054 $ 5.83 6.2 $ 82,544 The weighted average grant date fair value of stock options was approximately $5.65 and $6.26 per share for the three months ended June 30, 2015 and 2014, respectively, and $5.68 and $6.84 for the six months ended June 30, 2015 and 2014. The total intrinsic value of options exercised was approximately $4.3 million and $3.4 million for the three months ended June 30, 2015 and 2014, respectively and $14.2 million and $16.7 million for the six months ended June 30, 2015 and 2014. Restricted Stock Unit Activity The following table summarizes the outstanding activity of Restricted Stock Units (“RSUs”) and a summary of information related to RSUs (in thousands, except per share amounts and years): Restricted Stock Units Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance, December 31, 2014 2,825 $ 13.65 1.7 $ 33,955 RSUs granted 676 10.83 RSUs vested (517 ) 14.09 RSUs forfeited (214 ) 13.99 Balance, June 30, 2015 2,770 $ 12.85 1.7 $ 28,641 The following table summarizes the stock activity and the total number of shares available for grant under the Company's Amended & Restated 2012 Equity Incentive Plan as of June 30, 2015 (in thousands): Number of Balance, December 31, 2014 9,398 Additional shares reserved for issuance 4,256 Options granted (279 ) Options forfeited 496 RSUs granted (676 ) RSUs forfeited 214 Balance, June 30, 2015 13,409 Fair Value Disclosures Employee Stock Options The fair value of each option is estimated on the date of grant using the Black-Scholes model. The following table summarizes the weighted average assumptions relating to the Company's stock options: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Volatility 54.6 % 63.5 % 55.0 % 63.8 % Expected term (years) 5.6 6.1 5.6 6.1 Risk-free interest rate 1.8 % 1.9 % 1.8 % 1.9 % Dividend yield — — — — Employee Stock Purchase Plan The following table summarizes the assumptions relating to the Company's ESPP: Three and Six Months Ended June 30, 2015 2014 Volatility 42.9 % 45.8 % Expected term (years) 0.5 0.5 Risk-free interest rate 0.1 % 0.1 % Dividend yield — — Stock-based Compensation Expense The following table summarizes the stock-based compensation expense recorded in the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of revenue $ 249 $ 253 $ 565 $ 498 Research and development 2,348 2,126 5,070 4,222 Sales and marketing 1,866 1,710 3,483 3,325 General and administrative 2,622 2,251 5,289 4,641 Total stock-based compensation $ 7,085 $ 6,340 $ 14,407 $ 12,686 At June 30, 2015 , the total unrecognized stock-based compensation expense under the Company's stock plans was $53.5 million , net of estimated forfeitures. The unamortized expense will be recognized over a weighted-average period of 2.1 years .

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, including potential dilutive common shares assuming the dilutive effect of outstanding stock awards using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock awards, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible, are collectively assumed to be used to repurchase shares. The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income $ 759 $ 1,439 $ 186 $ 1,712 Denominator: Weighted-average shares used in computing basic net income per share 87,017 82,315 86,331 81,799 Weighted-average effect of potentially dilutive shares: Employee stock options 8,115 9,994 8,351 11,032 RSUs and ESPP 333 49 319 136 Diluted 95,465 92,358 95,001 92,967 Net income per share: Basic $ 0.01 $ 0.02 $ 0.00 $ 0.02 Diluted $ 0.01 $ 0.02 $ 0.00 $ 0.02 The following table summarizes the weighted-average outstanding stock awards that were excluded from the diluted per share calculation because to include them would have been anti-dilutive for the period (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Stock options 3,341 2,419 3,493 2,333 RSUs and ESPP 404 946 1,699 772 Total 3,745 3,365 5,192 3,105

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense was $0.7 million and $2.7 million for the three months ended June 30, 2015 and 2014, respectively. The effective tax rate exceeded the statutory rate for the periods primarily due to certain non-deductible stock-based compensation expenses and certain foreign taxes. Income tax benefit was $0.2 million for the six months ended June 30, 2015 and income tax expense was $3.4 million for the six months ended June 30, 2014. The effective tax rate exceeded the statutory rate for the periods primarily due to certain non-deductible stock-based compensation expenses and certain foreign taxes. The Company evaluates the realization of its deferred tax assets based on the expiration period of the asset, projections of future taxable income in the relevant tax jurisdiction, the effect of tax planning strategies, and other factors. Both positive and negative evidence is weighed using significant judgment. Based on an evaluation of these factors, the Company believes that the realization of its deferred tax assets is more likely than not and, therefore, a valuation allowance against its deferred tax assets is not required. In future periods, positive and negative evidence can change due to revised projections of future taxable income in the relevant jurisdictions and other factors listed above. If future circumstances require a valuation allowance to be recorded, there would be an increase in tax expense in the consolidated statements of operations without any change in net cash provided by operating activities in the consolidated statements of cash flows.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company operates in one industry segment selling gateways, controllers and access points along with related software and services. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its chief executive officer. The Company’s chief executive officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company has one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment. The Company and its chief executive officer evaluate performance based primarily on revenue in the geographic locations in which the Company operates. Revenue is attributed by geographic location based on the bill-to location of the Company’s customers. The following presents total revenue by geographic region (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Americas: United States $ 47,055 $ 39,667 $ 86,021 $ 78,142 Other Americas 2,900 2,274 4,673 4,286 Total Americas 49,955 41,941 90,694 82,428 EMEA: Total EMEA 22,334 21,419 44,307 41,471 APAC: Total APAC 19,941 17,640 39,307 32,153 Total revenue $ 92,230 $ 81,000 $ 174,308 $ 156,052 As of June 30, 2015 , the Company had property and equipment, net of $13.3 million , $0.6 million and $4.4 million located in the Americas, EMEA, and APAC respectively.

DESCRIPTION OF BUSINESS AND S17

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business — Ruckus Wireless, Inc. (“Ruckus”) is a global supplier of advanced, carrier-class WiFi solutions. Ruckus’ solutions, which are called Smart WiFi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with increasing wireless traffic demands created by the growth in the number of users equipped with more powerful smart wireless devices using increasingly data rich applications and services. Ruckus markets and sells its products and technology directly and indirectly through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart WiFi solutions offer carrier-class features and functionality such as enhanced reliability, consistent performance, extended range and massive scalability. Ruckus’ products include high capacity, high-speed hardware gateways, controllers, wireless bridges and indoor and outdoor access points, software platforms providing gateway, controller and reporting, analytics and management solutions, and unique WiFi-related cloud services, such as location-based positioning (“LBS”) and public access. These hardware and software products and cloud services incorporate various elements of Ruckus’ proprietary technologies, including Smart Radio, SmartCast, SmartMesh, SmartCell and Smart Scaling, to enable high performance in a variety of challenging operating environments.
Basis of Presentation	Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in Ruckus’ Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 25, 2015. The condensed consolidated balance sheet as of December 31, 2014, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2015 or any future period.
Principles of Consolidation	Principles of Consolidation — The condensed financial statements include the accounts of Ruckus and its wholly owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by management include the determination of revenue recognition, inventory, goodwill and intangible asset valuation, accounting for income taxes, stock-based compensation and warranty liability. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Actual results could materially differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements — In May 2014, the Financial Accounting Standard Board (“FASB”) and International Accounting Standards Board (“IASB”) issued accounting standards update (“ASU”) 2014-09, Revenue from Contracts with Customers, a converged standard on revenue recognition. Some of the main areas of transition to the new standard include, among others, transfer of control (revenue is recognized when a customer obtains control of a good or service), allocation of transaction price based on relative standalone selling price (entities that sell multiple goods or services in a single arrangement must allocate the consideration to each of those goods or services), contract costs (entities sometimes incur costs, such as sales commissions or mobilization activities, to obtain or fulfill a contract), and disclosures (extensive disclosures are required to provide greater insight into both revenue that has been recognized, and revenue that is expected to be recognized in the future from existing contracts). In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The accounting standard will be effective for the Company beginning in its first quarter of 2018, with early adoption permitted, but not before the original effective date of annual periods beginning after December 15, 2016, using one of two methods of adoption: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients as defined within the standard; or (ii) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application inclusive of certain additional disclosures. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial position, results of operations and cash flows.
Concentrations of Credit Risk and Significant Customers	Concentrations of Credit Risk and Significant Customers — Financial instruments that subject the Company to significant concentrations of credit risk primarily consist of cash, cash equivalents, short-term investments and accounts receivable. The Company invests only in high credit quality instruments and maintains its cash, cash equivalents and short-term investments in fixed income securities. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company’s accounts receivable are primarily derived from distributors and service providers located in the Americas, Europe, and Asia Pacific. The Company generally does not require its customers to provide collateral to support accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. The Company has recorded an allowance for doubtful accounts for those receivables management has determined to not be collectible. The percentages of revenue from individual customers totaling greater than 10% of total consolidated revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Channel partner A 16.7 % 15.8 % 15.1 % 15.3 % Channel partner B 13.8 % 14.0 % 12.1 % 13.5 % Channel partner C 11.3 % 11.8 % * 11.8 % * Less than 10% No single end-customer accounted for more than 10% of total consolidated revenue. The percentage of receivables from individual customers totaling greater than 10% of total consolidated accounts receivable were as follows: June 30, December 31, 2015 2014 Channel partner C 22.4 % 12.5 %

DESCRIPTION OF BUSINESS AND S18

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of Revenue from Individual Customers	The percentages of revenue from individual customers totaling greater than 10% of total consolidated revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Channel partner A 16.7 % 15.8 % 15.1 % 15.3 % Channel partner B 13.8 % 14.0 % 12.1 % 13.5 % Channel partner C 11.3 % 11.8 % * 11.8 % * Less than 10% No single end-customer accounted for more than 10% of total consolidated revenue. The percentage of receivables from individual customers totaling greater than 10% of total consolidated accounts receivable were as follows: June 30, December 31, 2015 2014 Channel partner C 22.4 % 12.5 %

FAIR VALUE DISCLOSURE (Tables)

FAIR VALUE DISCLOSURE (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Assets measured at fair value	The Company’s assets that were measured at fair value by level within the fair value hierarchy were as follows (in thousands): June 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash equivalents: Money market funds $ 367 $ 367 $ — $ — Short-term investments: Corporate debt securities 122,232 — 122,232 — U.S. government agency securities 26,246 — 26,246 — Total assets measured and recorded at fair value $ 148,845 $ 367 $ 148,478 $ — December 31, 2014 Fair Value Level 1 Level 2 Level 3 Assets: Cash equivalents: Money market funds $ 2,771 $ 2,771 $ — $ — Corporate debt securities 3,000 — 3,000 — Short-term investments: Corporate debt securities 118,323 — 118,323 — U.S. government agency securities 24,383 — 24,383 — Total assets measured and recorded at fair value $ 148,477 $ 2,771 $ 145,706 $ —

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale investments	Short-term investments consisted of the following (in thousands): June 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 122,309 $ 11 $ (88 ) $ 122,232 U.S. government agency securities 26,234 12 — 26,246 Total short-term investments $ 148,543 $ 23 $ (88 ) $ 148,478 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 118,470 $ — $ (147 ) $ 118,323 U.S. government agency securities 24,392 4 (13 ) 24,383 Total short-term investments $ 142,862 $ 4 $ (160 ) $ 142,706
Investments classified by contractual maturity date	The cost basis and fair value of the short-term investments by contractual maturity consist of the following (in thousands): June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 111,553 $ 111,503 $ 114,231 $ 114,113 Over one year and less than two years 36,990 36,975 28,631 28,593 Total short-term investments $ 148,543 $ 148,478 $ 142,862 $ 142,706
Schedule of available-for-sale investments in unrealized loss position	Short-term investments in an unrealized loss position consisted of the following (in thousands): June 30, 2015 December 31, 2014 Less Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 99,219 $ (88 ) $ 105,187 $ (147 ) U.S. government agency securities — — 15,773 (13 ) Total short-term investments $ 99,219 $ (88 ) $ 120,960 $ (160 )

GOODWILL AND INTANGIBLES ASSE21

GOODWILL AND INTANGIBLES ASSETS (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule intangible assets	Intangible assets consisted of the following (in thousands, except years): Gross Carrying Accumulated Net Carrying Weighted Average June 30, 2015 Purchased technology $ 12,600 $ (6,659 ) $ 5,941 2.4 years December 31, 2014 Purchased technology $ 12,600 $ (5,249 ) $ 7,351 2.8 years
Estimated future amortization of purchased intangible assets	The following table presents the estimated future amortization expense of intangible assets as of June 30, 2015 (in thousands): Year ending December 31, Amount 2015 (remaining six months) $ 1,410 2016 2,531 2017 1,500 2018 500 Total amortization $ 5,941

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	6 Months Ended
	Jun. 30, 2015
Deferred Revenue Disclosure [Abstract]
Schedule of deferred revenue	Deferred revenue consisted of the following (in thousands): June 30, December 31, 2015 2014 Product $ 17,410 $ 22,900 Service 30,688 26,885 Total deferred revenue $ 48,098 $ 49,785 Reported as: Current $ 36,228 $ 39,231 Non-current 11,870 10,554 Total deferred revenue $ 48,098 $ 49,785

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments under non-cancellable operating leases	Future minimum lease payments under non-cancelable operating leases were as follows (in thousands): Years ending December 31, Amount 2015 (remaining six months) $ 2,044 2016 3,994 2017 3,620 2018 3,266 2019 2,567 Thereafter 7,489 Operating lease obligations $ 22,980
Schedule of changes in warranty liability	The warranty liability is included as a component of accrued liabilities in the accompanying condensed consolidated balance sheets. Changes in the warranty liability were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period $ 924 $ 896 $ 803 $ 1,038 Changes in existing warranty 22 (207 ) (60 ) (114 ) Warranty expense 170 298 560 554 Obligations fulfilled (176 ) (140 ) (363 ) (631 ) Balance at end of period $ 940 $ 847 $ 940 $ 847

EQUITY AWARD PLANS (Tables)

EQUITY AWARD PLANS (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock options outstanding	The following table summarizes the outstanding stock option activity and a summary of information related to stock options (in thousands, except per share amounts and years): Common Stock Options Outstanding Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance, December 31, 2014 17,042 $ 5.60 6.7 $ 119,782 Options granted 279 11.12 Options exercised (1,645) 2.68 Options forfeited (496) 9.84 Balance, June 30, 2015 15,180 $ 5.88 6.2 $ 82,680 Options exercisable as of June 30, 2015 11,415 $ 4.28 5.6 $ 75,610 Options vested and expected to vest as of June 30, 2015 15,054 $ 5.83 6.2 $ 82,544
Summary of restricted stock units outstanding	The following table summarizes the outstanding activity of Restricted Stock Units (“RSUs”) and a summary of information related to RSUs (in thousands, except per share amounts and years): Restricted Stock Units Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance, December 31, 2014 2,825 $ 13.65 1.7 $ 33,955 RSUs granted 676 10.83 RSUs vested (517 ) 14.09 RSUs forfeited (214 ) 13.99 Balance, June 30, 2015 2,770 $ 12.85 1.7 $ 28,641
Summary of stock activity and number of shares available for grant	The following table summarizes the stock activity and the total number of shares available for grant under the Company's Amended & Restated 2012 Equity Incentive Plan as of June 30, 2015 (in thousands): Number of Balance, December 31, 2014 9,398 Additional shares reserved for issuance 4,256 Options granted (279 ) Options forfeited 496 RSUs granted (676 ) RSUs forfeited 214 Balance, June 30, 2015 13,409
Summary of stock options, valuation assumptions	The following table summarizes the weighted average assumptions relating to the Company's stock options: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Volatility 54.6 % 63.5 % 55.0 % 63.8 % Expected term (years) 5.6 6.1 5.6 6.1 Risk-free interest rate 1.8 % 1.9 % 1.8 % 1.9 % Dividend yield — — — — The following table summarizes the assumptions relating to the Company's ESPP: Three and Six Months Ended June 30, 2015 2014 Volatility 42.9 % 45.8 % Expected term (years) 0.5 0.5 Risk-free interest rate 0.1 % 0.1 % Dividend yield — —
Schedule of allocation of stock-based compensation expense	The following table summarizes the stock-based compensation expense recorded in the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of revenue $ 249 $ 253 $ 565 $ 498 Research and development 2,348 2,126 5,070 4,222 Sales and marketing 1,866 1,710 3,483 3,325 General and administrative 2,622 2,251 5,289 4,641 Total stock-based compensation $ 7,085 $ 6,340 $ 14,407 $ 12,686

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of calculation of basic and diluted net income (loss) per share	The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income $ 759 $ 1,439 $ 186 $ 1,712 Denominator: Weighted-average shares used in computing basic net income per share 87,017 82,315 86,331 81,799 Weighted-average effect of potentially dilutive shares: Employee stock options 8,115 9,994 8,351 11,032 RSUs and ESPP 333 49 319 136 Diluted 95,465 92,358 95,001 92,967 Net income per share: Basic $ 0.01 $ 0.02 $ 0.00 $ 0.02 Diluted $ 0.01 $ 0.02 $ 0.00 $ 0.02
Summary of the outstanding redeemable convertible preferred stock, employee stock, employee stock options, RSUs and warrants excluded from the diluted per share calculation	The following table summarizes the weighted-average outstanding stock awards that were excluded from the diluted per share calculation because to include them would have been anti-dilutive for the period (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Stock options 3,341 2,419 3,493 2,333 RSUs and ESPP 404 946 1,699 772 Total 3,745 3,365 5,192 3,105

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of total revenue by geographic region	The following presents total revenue by geographic region (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Americas: United States $ 47,055 $ 39,667 $ 86,021 $ 78,142 Other Americas 2,900 2,274 4,673 4,286 Total Americas 49,955 41,941 90,694 82,428 EMEA: Total EMEA 22,334 21,419 44,307 41,471 APAC: Total APAC 19,941 17,640 39,307 32,153 Total revenue $ 92,230 $ 81,000 $ 174,308 $ 156,052

DESCRIPTION OF BUSINESS AND S27

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concentration of Credit Risk and Significant Customers) (Details) - customer	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue, Major Customer
Number of single end-customers	0		0
Revenues | Channel Partner A
Revenue, Major Customer
Significant customer, as a percentage	16.70%	15.80%	15.10%	15.30%
Revenues | Channel Partner B
Revenue, Major Customer
Significant customer, as a percentage	13.80%	14.00%	12.10%	13.50%
Revenues | Channel Partner C
Revenue, Major Customer
Significant customer, as a percentage	11.30%	11.80%		11.80%
Accounts Receivables | Channel Partner C
Revenue, Major Customer
Significant customer, as a percentage			22.40%	12.50%

FAIR VALUE DISCLOSURE (Details)

FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Total assets measured and recorded at fair value	$ 148,845	$ 148,477
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	122,232	118,323
US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	26,246	24,383
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value	367	2,771
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value		3,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Total assets measured and recorded at fair value	367	2,771
Level 1 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	0	0
Level 1 | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	0	0
Level 1 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value	367	2,771
Level 1 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Total assets measured and recorded at fair value	148,478	145,706
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	122,232	118,323
Level 2 | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	26,246	24,383
Level 2 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value	0	0
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value		3,000
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Total assets measured and recorded at fair value	0	0
Level 3 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	0	0
Level 3 | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	0	0
Level 3 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value	$ 0	0
Level 3 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value		$ 0

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 111,553	$ 114,231
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	111,503	114,113
Available-for-sale Securities, Debt Maturities, Year Two, Amortized Cost Basis	36,990	28,631
Available-for-sale Securities, Debt Maturities, Year Two, Fair Value	36,975	28,593
Amortized Cost	148,543	142,862
Unrealized Gains	23	4
Unrealized Losses	(88)	(160)
Fair Value	148,478	142,706
Corporate debt securities
Schedule of Available-for-sale Securities
Amortized Cost	122,309	118,470
Unrealized Gains	11	0
Unrealized Losses	(88)	(147)
Fair Value	122,232	118,323
US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities
Amortized Cost	26,234	24,392
Unrealized Gains	12	4
Unrealized Losses	0	(13)
Fair Value	$ 26,246	$ 24,383

INVESTMENTS (Continuous Unreali

INVESTMENTS (Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	$ 99,219	$ 120,960
Less than 12 months, Unrealized Loss	(88)	(160)
Corporate debt securities
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	99,219	105,187
Less than 12 months, Unrealized Loss	(88)	(147)
US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	0	15,773
Less than 12 months, Unrealized Loss	$ 0	$ (13)

GOODWILL AND INTANGIBLES ASSE31

GOODWILL AND INTANGIBLES ASSETS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	$ 5,941
Goodwill	9,945	$ 9,945
Purchased technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,600	12,600
Accumulated amortization	(6,659)	(5,249)
Finite-lived intangible assets, net	$ 5,941	$ 7,351
Weighted average remaining useful life	2 years 4 months 25 days	2 years 10 months

GOODWILL AND INTANGIBLES ASSE32

GOODWILL AND INTANGIBLES ASSETS (Future Amortization Expense) (Details) $ in Thousands	Jun. 30, 2015USD ($)
Estimated Future Amortization Expense By Fiscal Year Maturity
2015 (remaining six months)	$ 1,410
2,016	2,531
2,017	1,500
2,018	500
Finite-lived intangible assets, net	$ 5,941

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 48,098	$ 49,785
Current	36,228	39,231
Noncurrent	11,870	10,554
Product
Deferred Revenue Arrangement [Line Items]
Deferred revenue	17,410	22,900
Services
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 30,688	$ 26,885
Services | Minimum
Deferred Revenue Arrangement [Line Items]
Typical service support period, minimum	1 year
Services | Maximum
Deferred Revenue Arrangement [Line Items]
Typical service support period, minimum	5 years

COMMITMENTS AND CONTINGENCIES34

COMMITMENTS AND CONTINGENCIES (Operating Leases, Purchase Commitments, and Litigation) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015
Operating Leases, Future Minimum Payments [Abstract]
2015 (remaining six months)		$ 2,044
2,016		3,994
2,017		3,620
2,018		3,266
2,019		2,567
Thereafter		7,489
Operating lease obligation		22,980
Gain on settlement of several patent litigation claims	$ 800
Current purchase commitments		$ 13,400

COMMITMENTS AND CONTINGENCIES35

COMMITMENTS AND CONTINGENCIES (Product Liabilities) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Product Liability
Restricted cash for indemnity obligation		$ 5,000		$ 5,000		$ 5,000
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning warranty liability		924	$ 896	803	$ 1,038
Changes in existing warranty		22	(207)	(60)	(114)
Warranty expense		170	298	560	554
Obligations fulfilled		(176)	(140)	(363)	(631)
Ending warranty liability		$ 940	$ 847	$ 940	$ 847
Hardware other than Indoor WLAN Products
Product Liability
Standard product warranty term				1 year
Indemnification Agreement
Product Liability
Indemnification Period	6 years

EQUITY AWARD PLANS (Stock Optio

EQUITY AWARD PLANS (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Number of Shares
Beginning balance (shares)			17,042
Options granted (shares)			279
Options exercised (shares)			(1,645)
Options forfeited (shares)			(496)
Ending balance (shares)	15,180		15,180		17,042
Options exercisable (shares)	11,415		11,415
Options vested and expected to vest (shares)	15,054		15,054
Weighted Average Exercise Price
Beginning balance (in dollars per share)			$ 5.60
Options granted (in dollars per share)			11.12
Options exercised (in dollars per share)			2.68
Options forfeited (in dollars per share)			9.84
Ending balance (in dollars per share)	$ 5.88		5.88		$ 5.60
Options exercisable (in dollars per share)	4.28		4.28
Options vested and expected to vest (in dollars per share)	$ 5.83		$ 5.83
Weighted Average Remaining Contractual Life
Weighted Average Remaining Contractual Life	6 years 2 months 23 days				6 years 7 months 43 days
Options exercisable	5 years 7 months 10 days
Options vested and expected to vest	6 years 2 months 16 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 82,680		$ 82,680		$ 119,782
Options exercisable	75,610		75,610
Options vested and expected to vest	$ 82,544		$ 82,544
Weighted average grant date fair value (in dollars per share)	$ 5.65	$ 6.26	$ 5.68	$ 6.84
Total intrinsic value of options exercised	$ 4,300	$ 3,400	$ 14,200	$ 16,700

EQUITY AWARD PLANS (Restricted

EQUITY AWARD PLANS (Restricted Stock Units Activity) (Details) - RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Number of Shares
Beginning balance (shares)	2,825
RSUs granted (shares)	676
RSUs exercised (shares)	(517)
RSUs forfeited (shares)	(214)
Ending balance (shares)	2,770	2,825
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value Roll Forward
Beginning balance (in dollars per share)	$ 13.65
RSUs granted (in dollars per share)	10.83
RSUs vested (in dollars per share)	14.09
RSUs forfeited (in dollars per share)	13.99
Ending balance (in dollars per share)	$ 12.85	$ 13.65
RSU, Weighted Average Remaining Contractual Life	1 year 8 months 12 days	1 year 8 months 12 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 28,641	$ 33,955

EQUITY AWARD PLANS (Stock Activ

EQUITY AWARD PLANS (Stock Activity and Number of Shares Available for Grant) (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2015shares
Shares Available for Grant
Beginning balance (shares)	9,398
Additional shares reserved for issuance (shares)	4,256
Ending balance (shares)	13,409
RSU
Shares Available for Grant
RSUs granted (shares)	(676)
RSUs forfeited (shares)	214
Stock Options
Shares Available for Grant
Options granted (shares)	(279)
Options forfeited (shares)	496

EQUITY AWARD PLANS (Assumptions

EQUITY AWARD PLANS (Assumptions) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Volatility	54.60%	63.50%	55.00%	63.80%
Expected term (years)	5 years 7 months 6 days	6 years 1 month 6 days	5 years 7 months 6 days	6 years 1 month 6 days
Risk-free interest rate	1.80%	1.90%	1.80%	1.90%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Volatility			42.90%	45.80%
Expected term (years)			6 months	6 months
Risk-free interest rate			0.10%	0.10%
Dividend yield			0.00%	0.00%

EQUITY AWARD PLANS (Stock-based

EQUITY AWARD PLANS (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	$ 7,085	$ 6,340	$ 14,407	$ 12,686
Compensation cost not yet recognized	53,500		$ 53,500
Compensation cost not yet recognized, period for recognition			2 years 1 month 7 days
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	249	253	$ 565	498
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	2,348	2,126	5,070	4,222
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	1,866	1,710	3,483	3,325
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	$ 2,622	$ 2,251	$ 5,289	$ 4,641

EARNINGS PER SHARE (Calculation

EARNINGS PER SHARE (Calculation of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net income	$ 759	$ 1,439	$ 186	$ 1,712
Denominator:
Weighted Average Number of Shares Issued, Basic	87,017	82,315	86,331	81,799
Weighted-average effect of potentially dilutive shares:
Employee stock options	8,115	9,994	8,351	11,032
RSUs and ESPP	333	49	319	136
Diluted (in shares)	95,465	92,358	95,001	92,967
Net income per share of common stock:
Basic (USD per share)	$ 0.01	$ 0.02	$ 0	$ 0.02
Diluted (USD per share)	$ 0.01	$ 0.02	$ 0	$ 0.02

EARNINGS PER SHARE (Antidilutiv

EARNINGS PER SHARE (Antidilutive Securities) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	3,745	3,365	5,192	3,105
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	3,341	2,419	3,493	2,333
RSUs and ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	404	946	1,699	772

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 670	$ 2,658	$ (197)	$ 3,356

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segmentactivityemployee	Jun. 30, 2014USD ($)
Segment Reporting [Abstract]
Number of industry segments | segment			1
Number of business activities | activity			1
Number of segment managers | employee			0
Revenues from External Customers
Revenue	$ 92,230	$ 81,000	$ 174,308	$ 156,052
Americas
Revenues from External Customers
Revenue	49,955	41,941	90,694	82,428
United States
Revenues from External Customers
Revenue	47,055	39,667	86,021	78,142
Other Americas
Revenues from External Customers
Revenue	2,900	2,274	4,673	4,286
EMEA
Revenues from External Customers
Revenue	22,334	21,419	44,307	41,471
APAC
Revenues from External Customers
Revenue	$ 19,941	$ 17,640	$ 39,307	$ 32,153

SEGMENT INFORMATION (Property,

SEGMENT INFORMATION (Property, Plant, and Equipment by Geographic Region) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Segment Reporting Information
Property and equipment, net	$ 18,275	$ 13,636
Americas
Segment Reporting Information
Property and equipment, net	13,300
EMEA
Segment Reporting Information
Property and equipment, net	600
APAC
Segment Reporting Information
Property and equipment, net	$ 4,400