Ruckus Wireless (RKUS) 10-Q 30 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 23, 2015
Entity [Abstract]
Entity Registrant Name	RUCKUS WIRELESS INC
Entity Central Index Key	1,294,016
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		88,689,570

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 75,615	$ 56,083
Short-term investments	145,570	142,706
Accounts receivable, net of allowance for doubtful accounts of $800 as of September 30, 2015 and December 31, 2014	76,648	59,553
Inventories	24,382	21,064
Deferred costs	4,450	4,414
Deferred tax assets	6,345	6,205
Prepaid expenses and other current assets	6,318	5,367
Total current assets	339,328	295,392
Property and equipment, net	17,955	13,636
Goodwill	9,945	9,945
Intangible assets, net	5,236	7,351
Non-current deferred tax asset	24,278	21,166
Restricted cash	5,000	5,000
Other assets	1,622	1,504
Total assets	403,364	353,994
Current liabilities:
Accounts payable	25,891	23,538
Accrued compensation	13,943	13,765
Accrued liabilities	7,193	5,282
Deferred revenue	45,094	39,231
Total current liabilities	92,121	81,816
Non-current deferred revenue	13,145	10,554
Non-current deferred tax liabilities	410	596
Other non-current liabilities	1,468	1,379
Total liabilities	$ 107,144	$ 94,345
Commitments and contingencies (Note 6)
Stockholders’ equity:
Common stock, $0.001 par value; 250,000 shares authorized as of September 30, 2015 and December 31, 2014; 88,393 and 85,110 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 88	$ 85
Additional paid-in capital	307,863	273,276
Accumulated other comprehensive income (loss)	14	(97)
Accumulated deficit	(11,745)	(13,615)
Total stockholders’ equity	296,220	259,649
Total liabilities and stockholders’ equity	$ 403,364	$ 353,994

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 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	250,000,000	250,000,000
Common Stock, Shares, Issued	88,393,000	85,110,000
Common stock, shares outstanding	88,393,000	85,110,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Product	$ 91,426	$ 78,810	$ 251,763	$ 224,237
Service	7,526	6,191	21,497	16,816
Total revenue	98,952	85,001	273,260	241,053
Cost of revenue:
Product	27,491	23,193	77,442	66,898
Service	3,558	3,379	10,783	9,070
Total cost of revenue	31,049	26,572	88,225	75,968
Gross profit	67,903	58,429	185,035	165,085
Operating expenses:
Research and development	24,244	19,614	68,383	56,707
Sales and marketing	27,433	24,720	81,207	72,402
General and administrative	12,212	8,017	31,567	24,812
Total operating expenses	63,889	52,351	181,157	153,921
Operating income	4,014	6,078	3,878	11,164
Interest income	181	41	478	133
Other expense, net	(172)	(200)	(344)	(310)
Income before income taxes	4,023	5,919	4,012	10,987
Income tax expense	2,339	2,365	2,142	5,721
Net income	$ 1,684	$ 3,554	$ 1,870	$ 5,266
Net income per share:
Basic (USD per share)	$ 0.02	$ 0.04	$ 0.02	$ 0.06
Diluted (USD per share)	$ 0.02	$ 0.04	$ 0.02	$ 0.06
Weighted average number of shares outstanding, basic (in shares)	88,002	83,388	86,894	82,334
Weighted average number of shares outstanding, diluted (in shares)	95,886	94,142	95,319	93,406

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 1,684	$ 3,554	$ 1,870	$ 5,266
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on short-term investments	72	(13)	111	(26)
Comprehensive income	$ 1,756	$ 3,541	$ 1,981	$ 5,240

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income	$ 1,870	$ 5,266
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	8,512	6,884
Provision for doubtful accounts	0	600
Stock-based compensation	21,312	18,869
Amortization of investment premiums, net of accretion of purchase discounts	1,790	863
Deferred income taxes	796	4,896
Excess tax benefit from employee stock incentive plans	(4,286)	(5,099)
Other	10	0
Changes in operating assets and liabilities:
Accounts receivable	(17,095)	(8,690)
Inventories	(3,318)	(1,383)
Deferred costs	(36)	1,240
Prepaid expenses and other current assets	(1,126)	(513)
Other assets	(20)	(131)
Accounts payable	2,443	4,681
Accrued compensation	178	2,777
Accrued liabilities	2,000	(475)
Deferred revenue	8,454	1,718
Net cash provided by operating activities	21,484	31,503
Cash flows from investing activities
Purchase of investments	(79,438)	(86,123)
Proceeds from the maturity of investments	75,122	73,965
Purchase of property and equipment	(10,816)	(6,765)
Change in facility lease deposits	(98)	50
Net cash used in investing activities	(15,230)	(18,873)
Cash flows from financing activities:
Proceeds from exercise of stock options	6,632	5,792
Proceeds from employee stock purchase plan	2,360	2,033
Excess tax benefit from employee stock incentive plans	4,286	5,099
Net cash provided by financing activities	13,278	12,924
Net increase in cash and cash equivalents	19,532	25,554
Cash and cash equivalents at beginning of period	56,083	91,282
Cash and cash equivalents at end of period	75,615	116,836
Supplemental Cash Flow Information [Abstract]
Cash paid for income taxes	831	728
Non-cash investing and financing activities
Purchases of property and equipment recorded in accounts payable and accrued liabilities	$ 1,002	$ 1,465

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 Wi-Fi solutions. Ruckus’ solutions, which are called Smart Wi-Fi, 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 Wi-Fi 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 Wi-Fi-related cloud services, such as location-based positioning (“LBS”). 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 valuation, 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 July 2015, the Financial Accounting Standard Board (“FASB”) issued accounting standards update ("ASU") 2015-11, Simplifying the Measurement of Inventory. The update replaces the concept of "lower of cost or market" with that of "lower of cost and net realizable value", which requires companies to measure certain inventory at the lower of cost and net realizable value. This accounting guidance does not apply to inventories measured by using the last-in, first-out inventory method. This accounting guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those years on a prospective basis. Early application is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial position, results of operations and cash flows and does not expect the impact to be material. In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its financial statements. In May 2014, the FASB issued 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 issued ASU 2015-14 to affirm 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 Nine Months Ended 2015 2014 2015 2014 Channel partner A 14.7 % 15.7 % 14.9 % 15.5 % Channel partner B 13.8 % 11.3 % 12.7 % 12.7 % Channel partner C * 12.0 % * 11.9 % * Less than 10% The percentage of receivables from individual customers totaling greater than 10% of total consolidated accounts receivable were as follows: September 30, December 31, 2015 2014 Channel partner C 18.5 % 12.5 % Channel partner D 10.4 % * * Less than 10% No single end-customer accounted for more than 10% of total consolidated revenue or total consolidated accounts receivable.

FAIR VALUE DISCLOSURE

FAIR VALUE DISCLOSURE	9 Months Ended
	Sep. 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): September 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash equivalents: Money market funds $ 3,333 $ 3,333 $ — $ — Short-term investments: Corporate debt securities 107,806 — 107,806 — U.S. government agency securities 37,764 — 37,764 — Total assets measured and recorded at fair value $ 148,903 $ 3,333 $ 145,570 $ — 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	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	SHORT-TERM INVESTMENTS Short-term investments consisted of the following (in thousands): September 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 107,826 $ 22 $ (42 ) $ 107,806 U.S. government agency securities 37,736 28 — 37,764 Total short-term investments $ 145,562 $ 50 $ (42 ) $ 145,570 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 nine months ended September 30, 2015. The cost basis and fair value of the short-term investments by contractual maturity consist of the following (in thousands): September 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 108,726 $ 108,721 $ 114,231 $ 114,113 Over one year and less than two years 36,836 36,849 28,631 28,593 Total short-term investments $ 145,562 $ 145,570 $ 142,862 $ 142,706 Short-term investments in an unrealized loss position consisted of the following (in thousands): September 30, 2015 December 31, 2014 Less Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 74,396 $ (42 ) $ 105,187 $ (147 ) U.S. government agency securities — — 15,773 (13 ) Total short-term investments $ 74,396 $ (42 ) $ 120,960 $ (160 ) As of September 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	9 Months Ended
	Sep. 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 September 30, 2015 Purchased technology $ 12,600 $ (7,364 ) $ 5,236 2.2 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 September 30, 2015 (in thousands): Year ending December 31, Amount 2015 (remaining three months) $ 705 2016 2,531 2017 1,500 2018 500 Total amortization $ 5,236 The Company had goodwill of $9.9 million as of September 30, 2015 and December 31, 2014 . No impairment has been recognized related to the goodwill balance.

DEFERRED REVENUE

DEFERRED REVENUE	9 Months Ended
	Sep. 30, 2015
Deferred Revenue Disclosure [Abstract]
DEFERRED REVENUE	DEFERRED REVENUE Deferred revenue consisted of the following (in thousands): September 30, December 31, 2015 2014 Product $ 24,970 $ 22,900 Service 33,269 26,885 Total deferred revenue $ 58,239 $ 49,785 Reported as: Current $ 45,094 $ 39,231 Non-current 13,145 10,554 Total deferred revenue $ 58,239 $ 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 where revenue is recognized ratably over the service period, typically one to five years .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 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 three months) $ 1,205 2016 4,738 2017 4,205 2018 3,336 2019 2,566 Thereafter 7,489 Operating lease obligations $ 23,539 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. The Company paid a total of $1.6 million in settlement of patent litigation for the three months ended September 30, 2015. For the nine months ended September 30, 2014, the Company settled several patent litigation claims for a net gain of $0.8 million . Gains or losses from litigation settlements are included in general and administrative expense in the condensed consolidated statements of operations. Purchase Commitments — As of September 30, 2015 , the Company had current purchase commitments of $12.4 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 September 30, 2015 and December 31, 2014 . Reimbursement of Penalties — As of September 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 primarily 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 Nine Months Ended 2015 2014 2015 2014 Balance at beginning of period $ 940 $ 847 $ 803 $ 1,038 Changes in existing warranty 56 39 (4 ) (75 ) Warranty expense 156 196 716 750 Obligations fulfilled (163 ) (179 ) (526 ) (810 ) Balance at end of period $ 989 $ 903 $ 989 $ 903

EQUITY AWARD PLANS

EQUITY AWARD PLANS	9 Months Ended
	Sep. 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 311 11.12 Options exercised (2,418) 2.74 Options forfeited (583) 10.48 Balance, September 30, 2015 14,352 $ 6.01 6.1 $ 94,032 Options exercisable as of September 30, 2015 11,333 $ 4.60 5.6 $ 87,645 Options vested and expected to vest as of September 30, 2015 14,257 $ 6.00 6.1 $ 93,932 The weighted average grant date fair value of stock options was approximately $5.85 and $7.41 per share for the three months ended September 30, 2015 and 2014, respectively, and $5.69 and $6.88 for the nine months ended September 30, 2015 and 2014, respectively. The total intrinsic value of options exercised was approximately $6.9 million and $15.0 million for the three months ended September 30, 2015 and 2014, respectively, and $21.1 million and $31.7 million for the nine months ended September 30, 2015 and 2014, respectively. 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 Vesting Period (Years) Aggregate Intrinsic Value Balance, December 31, 2014 2,825 $ 13.65 1.7 $ 33,955 RSUs granted 881 10.97 RSUs vested (612 ) 14.00 RSUs forfeited (273 ) 13.73 Balance, September 30, 2015 2,821 $ 12.79 1.6 $ 33,503 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 September 30, 2015 (in thousands): Number of Balance, December 31, 2014 9,398 Additional shares reserved for issuance 4,256 Options granted (311 ) Options forfeited 583 RSUs granted (881 ) RSUs forfeited 273 Balance, September 30, 2015 13,318 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 Nine Months Ended 2015 2014 2015 2014 Volatility 54.8 % 62.2 % 55.0 % 63.7 % Expected term (years) 6.1 6.1 5.7 6.1 Risk-free interest rate 1.7 % 2.0 % 1.8 % 1.9 % Dividend yield — — — — Employee Stock Purchase Plan The following table summarizes the assumptions relating to the Company's ESPP: Three and Nine Months Ended September 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 Nine Months Ended 2015 2014 2015 2014 Cost of revenue $ 247 $ 266 $ 812 $ 764 Research and development 2,357 2,124 7,427 6,346 Sales and marketing 1,739 1,799 5,222 5,124 General and administrative 2,562 1,994 7,851 6,635 Total stock-based compensation $ 6,905 $ 6,183 $ 21,312 $ 18,869 At September 30, 2015 , the total unrecognized stock-based compensation expense under the Company's stock plans was $48.0 million , net of estimated forfeitures. The unamortized expense will be recognized over a weighted-average period of 2 years.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 1,684 $ 3,554 $ 1,870 $ 5,266 Denominator: Weighted-average shares used in computing basic net income per share 88,002 83,388 86,894 82,334 Weighted-average effect of potentially dilutive shares: Stock options 7,642 10,491 8,114 10,882 RSUs and ESPP 242 263 311 190 Diluted 95,886 94,142 95,319 93,406 Net income per share: Basic $ 0.02 $ 0.04 $ 0.02 $ 0.06 Diluted $ 0.02 $ 0.04 $ 0.02 $ 0.06 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options 3,389 2,401 3,509 2,356 RSUs and ESPP 1,051 418 1,892 714 Total 4,440 2,819 5,401 3,070

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense was $2.3 million and $2.4 million for the three months ended September 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 expense was $2.1 million and $5.7 million for the nine months ended September 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. 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	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Americas: United States $ 49,740 $ 41,165 $ 135,761 $ 119,307 Other Americas 2,602 1,312 7,275 5,598 Total Americas 52,342 42,477 143,036 124,905 EMEA: Total EMEA 26,717 21,524 71,024 62,995 APAC: Total APAC 19,893 21,000 59,200 53,153 Total revenue $ 98,952 $ 85,001 $ 273,260 $ 241,053 As of September 30, 2015 , the Company had property and equipment, net of $13.1 million , $4.3 million and $0.6 million located in the Americas, APAC and EMEA respectively.

SUBSEQUENT EVENTS (Notes)

SUBSEQUENT EVENTS (Notes)	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On October 21, 2015, the Company completed the acquisition of Cloudpath Networks, Inc. (“Cloudpath”), a privately-held company providing secure Wi-Fi onboarding software and certificate-based Wi-Fi security, pursuant to which the Company acquired all of the outstanding capital stock of Cloudpath for $9.0 million in cash, subject to certain adjustments. As a result of the acquisition, the Company will offer Cloudpath's secure Wi-Fi onboarding software with its Smart Wi-Fi portfolio to securely onboard all new devices. As of the date of this Form 10-Q, the Company is still in the process of determining the purchase price allocation and the initial accounting for the business combination. The Company expects to disclose the preliminary purchase accounting in Form 10-K for the year ended December 31, 2015. Based on the evaluation of the significance of the acquisition, the Company determined that the acquisition does not meet the conditions needed to file separate financial statements and related pro-forma financial statements. The purchase agreement also included additional cash consideration of up to $9.0 million, which is contingent upon continued employment of a founder with the Company. The Company will recognize this consideration as post-acquisition expense over the requisite service period of two years from the date of acquisition. The Company will provide $0.9 million in cash incentives to continuing Cloudpath employees that will be earned over a two-year period and grant 195,705 RSUs under the Company’s Amended and Restated 2012 Equity Incentive Plan. The fair value of the equity awards will be recognized over a four-year requisite service period. As the cash incentives and RSUs are subject to continued employment, they will be recorded as post-acquisition compensation expense.

DESCRIPTION OF BUSINESS AND S18

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 Wi-Fi solutions. Ruckus’ solutions, which are called Smart Wi-Fi, 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 Wi-Fi 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 Wi-Fi-related cloud services, such as location-based positioning (“LBS”). 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 valuation, 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 July 2015, the Financial Accounting Standard Board (“FASB”) issued accounting standards update ("ASU") 2015-11, Simplifying the Measurement of Inventory. The update replaces the concept of "lower of cost or market" with that of "lower of cost and net realizable value", which requires companies to measure certain inventory at the lower of cost and net realizable value. This accounting guidance does not apply to inventories measured by using the last-in, first-out inventory method. This accounting guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those years on a prospective basis. Early application is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial position, results of operations and cash flows and does not expect the impact to be material. In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its financial statements. In May 2014, the FASB issued 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 issued ASU 2015-14 to affirm 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 Nine Months Ended 2015 2014 2015 2014 Channel partner A 14.7 % 15.7 % 14.9 % 15.5 % Channel partner B 13.8 % 11.3 % 12.7 % 12.7 % Channel partner C * 12.0 % * 11.9 % * Less than 10% The percentage of receivables from individual customers totaling greater than 10% of total consolidated accounts receivable were as follows: September 30, December 31, 2015 2014 Channel partner C 18.5 % 12.5 % Channel partner D 10.4 % * * Less than 10% No single end-customer accounted for more than 10% of total consolidated revenue or total consolidated accounts receivable.

DESCRIPTION OF BUSINESS AND S19

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended 2015 2014 2015 2014 Channel partner A 14.7 % 15.7 % 14.9 % 15.5 % Channel partner B 13.8 % 11.3 % 12.7 % 12.7 % Channel partner C * 12.0 % * 11.9 % * Less than 10% The percentage of receivables from individual customers totaling greater than 10% of total consolidated accounts receivable were as follows: September 30, December 31, 2015 2014 Channel partner C 18.5 % 12.5 % Channel partner D 10.4 % * * Less than 10% No single end-customer accounted for more than 10% of total consolidated revenue or total consolidated accounts receivable.

FAIR VALUE DISCLOSURE (Tables)

FAIR VALUE DISCLOSURE (Tables)	9 Months Ended
	Sep. 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): September 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash equivalents: Money market funds $ 3,333 $ 3,333 $ — $ — Short-term investments: Corporate debt securities 107,806 — 107,806 — U.S. government agency securities 37,764 — 37,764 — Total assets measured and recorded at fair value $ 148,903 $ 3,333 $ 145,570 $ — 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)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale investments	Short-term investments consisted of the following (in thousands): September 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 107,826 $ 22 $ (42 ) $ 107,806 U.S. government agency securities 37,736 28 — 37,764 Total short-term investments $ 145,562 $ 50 $ (42 ) $ 145,570 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): September 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 108,726 $ 108,721 $ 114,231 $ 114,113 Over one year and less than two years 36,836 36,849 28,631 28,593 Total short-term investments $ 145,562 $ 145,570 $ 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): September 30, 2015 December 31, 2014 Less Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 74,396 $ (42 ) $ 105,187 $ (147 ) U.S. government agency securities — — 15,773 (13 ) Total short-term investments $ 74,396 $ (42 ) $ 120,960 $ (160 )

GOODWILL AND INTANGIBLES ASSE22

GOODWILL AND INTANGIBLES ASSETS (Tables)	9 Months Ended
	Sep. 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 September 30, 2015 Purchased technology $ 12,600 $ (7,364 ) $ 5,236 2.2 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 September 30, 2015 (in thousands): Year ending December 31, Amount 2015 (remaining three months) $ 705 2016 2,531 2017 1,500 2018 500 Total amortization $ 5,236

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	9 Months Ended
	Sep. 30, 2015
Deferred Revenue Disclosure [Abstract]
Schedule of deferred revenue	Deferred revenue consisted of the following (in thousands): September 30, December 31, 2015 2014 Product $ 24,970 $ 22,900 Service 33,269 26,885 Total deferred revenue $ 58,239 $ 49,785 Reported as: Current $ 45,094 $ 39,231 Non-current 13,145 10,554 Total deferred revenue $ 58,239 $ 49,785

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 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 three months) $ 1,205 2016 4,738 2017 4,205 2018 3,336 2019 2,566 Thereafter 7,489 Operating lease obligations $ 23,539
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 Nine Months Ended 2015 2014 2015 2014 Balance at beginning of period $ 940 $ 847 $ 803 $ 1,038 Changes in existing warranty 56 39 (4 ) (75 ) Warranty expense 156 196 716 750 Obligations fulfilled (163 ) (179 ) (526 ) (810 ) Balance at end of period $ 989 $ 903 $ 989 $ 903

EQUITY AWARD PLANS (Tables)

EQUITY AWARD PLANS (Tables)	9 Months Ended
	Sep. 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 311 11.12 Options exercised (2,418) 2.74 Options forfeited (583) 10.48 Balance, September 30, 2015 14,352 $ 6.01 6.1 $ 94,032 Options exercisable as of September 30, 2015 11,333 $ 4.60 5.6 $ 87,645 Options vested and expected to vest as of September 30, 2015 14,257 $ 6.00 6.1 $ 93,932
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 Vesting Period (Years) Aggregate Intrinsic Value Balance, December 31, 2014 2,825 $ 13.65 1.7 $ 33,955 RSUs granted 881 10.97 RSUs vested (612 ) 14.00 RSUs forfeited (273 ) 13.73 Balance, September 30, 2015 2,821 $ 12.79 1.6 $ 33,503
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 September 30, 2015 (in thousands): Number of Balance, December 31, 2014 9,398 Additional shares reserved for issuance 4,256 Options granted (311 ) Options forfeited 583 RSUs granted (881 ) RSUs forfeited 273 Balance, September 30, 2015 13,318
Summary of stock options, valuation assumptions	The following table summarizes the assumptions relating to the Company's ESPP: Three and Nine Months Ended September 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 — — The following table summarizes the weighted average assumptions relating to the Company's stock options: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Volatility 54.8 % 62.2 % 55.0 % 63.7 % Expected term (years) 6.1 6.1 5.7 6.1 Risk-free interest rate 1.7 % 2.0 % 1.8 % 1.9 % 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 Nine Months Ended 2015 2014 2015 2014 Cost of revenue $ 247 $ 266 $ 812 $ 764 Research and development 2,357 2,124 7,427 6,346 Sales and marketing 1,739 1,799 5,222 5,124 General and administrative 2,562 1,994 7,851 6,635 Total stock-based compensation $ 6,905 $ 6,183 $ 21,312 $ 18,869

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 1,684 $ 3,554 $ 1,870 $ 5,266 Denominator: Weighted-average shares used in computing basic net income per share 88,002 83,388 86,894 82,334 Weighted-average effect of potentially dilutive shares: Stock options 7,642 10,491 8,114 10,882 RSUs and ESPP 242 263 311 190 Diluted 95,886 94,142 95,319 93,406 Net income per share: Basic $ 0.02 $ 0.04 $ 0.02 $ 0.06 Diluted $ 0.02 $ 0.04 $ 0.02 $ 0.06
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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options 3,389 2,401 3,509 2,356 RSUs and ESPP 1,051 418 1,892 714 Total 4,440 2,819 5,401 3,070

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Americas: United States $ 49,740 $ 41,165 $ 135,761 $ 119,307 Other Americas 2,602 1,312 7,275 5,598 Total Americas 52,342 42,477 143,036 124,905 EMEA: Total EMEA 26,717 21,524 71,024 62,995 APAC: Total APAC 19,893 21,000 59,200 53,153 Total revenue $ 98,952 $ 85,001 $ 273,260 $ 241,053

DESCRIPTION OF BUSINESS AND S28

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concentration of Credit Risk and Significant Customers) (Details) - customer	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue, Major Customer
Number of single end-customers	0		0
Revenues | Channel Partner A
Revenue, Major Customer
Significant customer, as a percentage	14.70%	15.70%	14.90%	15.50%
Revenues | Channel Partner B
Revenue, Major Customer
Significant customer, as a percentage	13.80%	11.30%	12.70%	12.70%
Revenues | Channel Partner C
Revenue, Major Customer
Significant customer, as a percentage		12.00%		11.90%
Accounts Receivables | Channel Partner C
Revenue, Major Customer
Significant customer, as a percentage			18.50%	12.50%
Accounts Receivables | Channel Partner D
Revenue, Major Customer
Significant customer, as a percentage			10.40%

FAIR VALUE DISCLOSURE (Details)

FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Total assets measured and recorded at fair value	$ 148,903	$ 148,477
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	107,806	118,323
U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	37,764	24,383
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value	3,333	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	3,333	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 | U.S. government agency securities
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	3,333	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	145,570	145,706
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	107,806	118,323
Level 2 | U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	37,764	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 | U.S. government agency securities
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	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities
Amortized Cost	$ 145,562	$ 142,862
Unrealized Gains	50	4
Unrealized Losses	(42)	(160)
Fair Value	145,570	142,706
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	108,726	114,231
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	108,721	114,113
Available-for-sale Securities, Debt Maturities, Year Two, Amortized Cost Basis	36,836	28,631
Available-for-sale Securities, Debt Maturities, Year Two, Fair Value	36,849	28,593
Corporate debt securities
Schedule of Available-for-sale Securities
Amortized Cost	107,826	118,470
Unrealized Gains	22	0
Unrealized Losses	(42)	(147)
Fair Value	107,806	118,323
U.S. government agency securities
Schedule of Available-for-sale Securities
Amortized Cost	37,736	24,392
Unrealized Gains	28	4
Unrealized Losses	0	(13)
Fair Value	$ 37,764	$ 24,383

INVESTMENTS (Continuous Unreali

INVESTMENTS (Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	$ 74,396	$ 120,960
Less than 12 months, Unrealized Loss	(42)	(160)
Corporate debt securities
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	74,396	105,187
Less than 12 months, Unrealized Loss	(42)	(147)
U.S. government agency securities
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 ASSE32

GOODWILL AND INTANGIBLES ASSETS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	$ 5,236,000
Goodwill	9,945,000	$ 9,945,000
Impairment		0
Purchased technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,600,000	12,600,000
Accumulated amortization	(7,364,000)	(5,249,000)
Finite-lived intangible assets, net	$ 5,236,000	$ 7,351,000
Weighted average remaining useful life	2 years 2 months 5 days	2 years 10 months

GOODWILL AND INTANGIBLES ASSE33

GOODWILL AND INTANGIBLES ASSETS (Future Amortization Expense) (Details) $ in Thousands	Sep. 30, 2015USD ($)
Estimated Future Amortization Expense By Fiscal Year Maturity
2015 (remaining three months)	$ 705
2,016	2,531
2,017	1,500
2,018	500
Finite-lived intangible assets, net	$ 5,236

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 58,239	$ 49,785
Current	45,094	39,231
Noncurrent	13,145	10,554
Product
Deferred Revenue Arrangement [Line Items]
Deferred revenue	24,970	22,900
Services
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 33,269	$ 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 CONTINGENCIES35

COMMITMENTS AND CONTINGENCIES (Operating Leases, Purchase Commitments, and Litigation) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Leases, Future Minimum Payments [Abstract]
2015 (remaining three months)	$ 1,205
2,016	4,738
2,017	4,205
2,018	3,336
2,019	2,566
Thereafter	7,489
Operating lease obligation	23,539
Patent litigation settlement	1,600
Gain on settlement of several patent litigation claims		$ 800
Current purchase commitments	$ 12,400

COMMITMENTS AND CONTINGENCIES36

COMMITMENTS AND CONTINGENCIES (Product Liabilities) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 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		940	$ 847	803	$ 1,038
Changes in existing warranty		56	39	(4)	(75)
Warranty expense		156	196	716	750
Obligations fulfilled		(163)	(179)	(526)	(810)
Ending warranty liability		$ 989	$ 903	$ 989	$ 903
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		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Number of Shares
Beginning balance (shares)			17,042
Options granted (shares)			311
Options exercised (shares)			(2,418)
Options forfeited (shares)			(583)
Ending balance (shares)	14,352		14,352		17,042
Options exercisable (shares)	11,333		11,333
Options vested and expected to vest (shares)	14,257		14,257
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)			2.74
Options forfeited (in dollars per share)			10.48
Ending balance (in dollars per share)	$ 6.01		6.01		$ 5.60
Options exercisable (in dollars per share)	4.60		4.60
Options vested and expected to vest (in dollars per share)	$ 6		$ 6
Weighted Average Remaining Contractual Life
Weighted Average Remaining Contractual Life	6 years 1 month				6 years 7 months 43 days
Options exercisable	5 years 6 months 25 days
Options vested and expected to vest	6 years 25 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 94,032		$ 94,032		$ 119,782
Options exercisable	87,645		87,645
Options vested and expected to vest	$ 93,932		$ 93,932
Weighted average grant date fair value (in dollars per share)	$ 5.85	$ 7.41	$ 5.69	$ 6.88
Total intrinsic value of options exercised	$ 6,900	$ 15,000	$ 21,100	$ 31,700

EQUITY AWARD PLANS (Restricted

EQUITY AWARD PLANS (Restricted Stock Units Activity) (Details) - RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Number of Shares
Beginning balance (shares)	2,825
RSUs granted (shares)	881
RSUs exercised (shares)	(612)
RSUs forfeited (shares)	(273)
Ending balance (shares)	2,821	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)	10.97
RSUs vested (in dollars per share)	14
RSUs forfeited (in dollars per share)	13.73
Ending balance (in dollars per share)	$ 12.79	$ 13.65
RSU, Weighted Average Remaining Contractual Life	1 year 7 months	1 year 8 months 12 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 33,503	$ 33,955

EQUITY AWARD PLANS (Stock Activ

EQUITY AWARD PLANS (Stock Activity and Number of Shares Available for Grant) (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2015shares
Shares Available for Grant
Beginning balance (shares)	9,398
Additional shares reserved for issuance (shares)	4,256
Ending balance (shares)	13,318
RSU
Shares Available for Grant
RSUs granted (shares)	(881)
RSUs forfeited (shares)	273
Stock Options
Shares Available for Grant
Options granted (shares)	(311)
Options forfeited (shares)	583

EQUITY AWARD PLANS (Assumptions

EQUITY AWARD PLANS (Assumptions) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Volatility	54.80%	62.20%	55.00%	63.70%
Expected term (years)	6 years 28 days	6 years 28 days	5 years 8 months	6 years 28 days
Risk-free interest rate	1.70%	2.00%	1.80%	1.90%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Employee Stock Purchase Plan
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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	$ 6,905	$ 6,183	$ 21,312	$ 18,869
Compensation cost not yet recognized	48,000		$ 48,000
Compensation cost not yet recognized, period for recognition			2 years
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	247	266	$ 812	764
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	2,357	2,124	7,427	6,346
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	1,739	1,799	5,222	5,124
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	$ 2,562	$ 1,994	$ 7,851	$ 6,635

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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net income	$ 1,684	$ 3,554	$ 1,870	$ 5,266
Denominator:
Weighted-average shares used in computing basic net income per share	88,002	83,388	86,894	82,334
Weighted-average effect of potentially dilutive shares:
Stock options	7,642	10,491	8,114	10,882
RSUs and ESPP	242	263	311	190
Diluted (in shares)	95,886	94,142	95,319	93,406
Net income per share of common stock:
Basic (USD per share)	$ 0.02	$ 0.04	$ 0.02	$ 0.06
Diluted (USD per share)	$ 0.02	$ 0.04	$ 0.02	$ 0.06

EARNINGS PER SHARE (Antidilutiv

EARNINGS PER SHARE (Antidilutive Securities) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	4,440	2,819	5,401	3,070
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	3,389	2,401	3,509	2,356
RSUs and ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	1,051	418	1,892	714

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Income tax expense	$ 2,339	$ 2,365	$ 2,142	$ 5,721

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segmentactivityemployee	Sep. 30, 2014USD ($)
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	$ 98,952	$ 85,001	$ 273,260	$ 241,053
Americas
Revenues from External Customers
Revenue	52,342	42,477	143,036	124,905
United States
Revenues from External Customers
Revenue	49,740	41,165	135,761	119,307
Other Americas
Revenues from External Customers
Revenue	2,602	1,312	7,275	5,598
EMEA
Revenues from External Customers
Revenue	26,717	21,524	71,024	62,995
APAC
Revenues from External Customers
Revenue	$ 19,893	$ 21,000	$ 59,200	$ 53,153

SEGMENT INFORMATION (Property,

SEGMENT INFORMATION (Property, Plant, and Equipment by Geographic Region) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Segment Reporting Information
Property and equipment, net	$ 17,955	$ 13,636
Americas
Segment Reporting Information
Property and equipment, net	13,100
APAC
Segment Reporting Information
Property and equipment, net	4,300
EMEA
Segment Reporting Information
Property and equipment, net	$ 600

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Cloudpath Networks - Subsequent Event - USD ($)	Oct. 21, 2015	Dec. 31, 2015
Subsequent Event [Line Items]
Cash, subject to adjustment	$ 9
Cash consideration	9
Cash to Cloudpath employees	$ 0.9
Restated 2012 Equity Incentive Plan | RSU
Subsequent Event [Line Items]
RSUs granted		195,705