Ruckus Wireless (RKUS) 10-K 24 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 17, 2016	Jun. 30, 2015
Entity [Abstract]
Entity Registrant Name	RUCKUS WIRELESS INC
Entity Central Index Key	1,294,016
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		89,722,741
Entity Public Float			$ 860
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 69,687	$ 56,083
Short-term investments	160,791	142,706
Accounts receivable, net of allowance for doubtful accounts of $800 as of December 31, 2015 and 2014	70,649	59,553
Inventories	26,591	21,064
Deferred costs	3,669	4,414
Deferred tax assets	0	6,205
Restricted Cash and Cash Equivalents, Current	5,000
Prepaid expenses and other current assets	6,168	5,367
Total current assets	342,555	295,392
Property and equipment, net	19,411	13,636
Goodwill	16,390	9,945
Intangible assets, net	8,625	7,351
Non-current deferred tax asset	30,217	21,166
Restricted cash		5,000
Other assets	1,623	1,504
Total assets	418,821	353,994
Current liabilities:
Accounts payable	30,360	23,538
Accrued compensation	14,902	13,765
Accrued liabilities	7,748	5,282
Deferred revenue	36,602	39,231
Total current liabilities	89,612	81,816
Non-current deferred revenue	14,524	10,554
Non-current deferred tax liabilities	111	596
Other non-current liabilities	3,041	1,379
Total liabilities	$ 107,288	$ 94,345
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.001 par value; 250,000 shares authorized as of December 31, 2015 and 2014; 89,345 and 85,110 shares issued and outstanding at December 31, 2015 and 2014, respectively	$ 89	$ 85
Additional paid-in capital	320,561	273,276
Accumulated other comprehensive loss	(192)	(97)
Accumulated deficit	(8,925)	(13,615)
Total stockholders’ equity	311,533	259,649
Total liabilities and stockholders’ equity	$ 418,821	$ 353,994

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 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	89,345,000	85,110,000
Common stock, shares outstanding	89,345,000	85,110,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue:
Product	$ 343,659	$ 303,446	$ 245,935
Service	29,717	23,473	17,132
Total revenue	373,376	326,919	263,067
Cost of revenue:
Product	105,314	90,651	78,344
Service	14,741	12,454	9,844
Total cost of revenue	120,055	103,105	88,188
Gross profit	253,321	223,814	174,879
Operating expenses:
Research and development	94,234	77,164	61,783
Sales and marketing	109,864	98,634	79,185
General and administrative	41,799	33,622	33,752
Total operating expenses	245,897	209,420	174,720
Operating income (loss)	7,424	14,394	159
Interest income	701	199	187
Other expense, net	524	463	456
Income (loss) before income taxes	7,601	14,130	(110)
Income tax expense (benefit)	2,911	5,940	(1,899)
Net income	$ 4,690	$ 8,190	$ 1,789
Net income per share:
Basic (USD per share)	$ 0.05	$ 0.10	$ 0.02
Diluted (USD per share)	$ 0.05	$ 0.09	$ 0.02
Weighted average number of shares outstanding, basic (in shares)	87,418	82,908	76,744
Weighted average number of shares outstanding, diluted (in shares)	95,851	93,668	93,361

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 4,690	$ 8,190	$ 1,789
Other comprehensive loss, net of tax:
Unrealized loss on short-term investments	(95)	(95)	(2)
Comprehensive income	$ 4,595	$ 8,095	$ 1,787

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Common Stock [Member]Warrant [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares, Outstanding		74,166,000
Stockholders' Equity Attributable to Parent	$ 170,211	$ 74		$ 193,731	$ 0	$ (23,594)
Share-based Compensation	18,701			18,701
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		5,903,000
Stock Issued During Period, Value, Stock Options Exercised	7,236	$ 6		7,230
Stock Issued During Period, Shares, Employee Stock Purchase Plans		345,000
Stock Issued During Period, Value, Employee Stock Purchase Plan	3,860	$ 1		3,859
Vesting of early exercised stock options	35			35
Stock Repurchased During Period, Shares		(1,000)
Stock Repurchased During Period, Value	0
Common Stock, Shares Issued From Exercise Of Stock Warrants			278,000
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	2,019			2,019
Other Comprehensive Income (Loss), Net of Tax	(2)				(2)
Net Income (Loss) Attributable to Parent	1,789					1,789
Shares, Outstanding		80,691,000
Stockholders' Equity Attributable to Parent	203,849	$ 81		225,575	(2)	(21,805)
Share-based Compensation	26,594			26,594
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		3,618,000
Stock Issued During Period, Value, Stock Options Exercised	7,632	$ 4		7,628
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		319,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans		482,000
Stock Issued During Period, Value, Employee Stock Purchase Plan	4,296			4,296
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	9,183			9,183
Other Comprehensive Income (Loss), Net of Tax	(95)				(95)
Net Income (Loss) Attributable to Parent	8,190					8,190
Shares, Outstanding		85,110,000
Stockholders' Equity Attributable to Parent	259,649	$ 85		273,276	(97)	(13,615)
Share-based Compensation	28,793			28,824
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		2,888,000
Stock Issued During Period, Value, Stock Options Exercised	7,881	$ 3		7,878
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		874,000
Restricted Stock or Unit Expense	$ 1			(1)
Stock Issued During Period, Shares, Employee Stock Purchase Plans	473,000	473,000
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 4,414			4,414
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	6,170			6,170
Other Comprehensive Income (Loss), Net of Tax	(95)				(95)
Net Income (Loss) Attributable to Parent	4,690
Shares, Outstanding		89,345,000
Stockholders' Equity Attributable to Parent	$ 311,533	$ 89		$ 320,561	$ (192)	$ (8,925)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities
Net income	$ 4,690	$ 8,190	$ 1,789
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	11,550	9,616	6,591
Stock-based compensation	28,793	26,594	18,701
Amortization of investment premiums, net of accretion of purchase discounts	2,376	1,278	1,071
Deferred income taxes	1,075	4,644	(2,909)
Excess tax benefit from employee stock incentive plans	(6,170)	(9,183)	(2,019)
Other	294	400	1,086
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed from acquisitions:
Accounts receivable	(10,959)	(15,315)	(4,253)
Inventories	(5,527)	(4,316)	2,293
Deferred costs	745	(207)	981
Prepaid expenses and other current assets	(866)	62	(2,459)
Other assets	86	(286)	134
Accounts payable	5,187	4,426	2,792
Accrued compensation	1,203	2,006	2,304
Accrued liabilities	2,556	(731)	2,715
Deferred revenue	831	9,548	(249)
Net cash provided by operating activities	35,864	36,726	28,568
Cash flows from investing activities
Purchase of investments	(153,556)	(174,710)	(83,442)
Proceeds from the maturity of investments	128,014	88,237	8,324
Proceeds from the sale of investments	5,048	3,012	13,128
Purchase of property, equipment and internal use software	(12,814)	(9,479)	(7,776)
Increase in facility lease deposits	(199)	(96)	(300)
Cash used in acquisition, net of cash acquired	(7,218)		(7,882)
Increase in restricted cash			(5,000)
Net cash used in investing activities	(40,725)	(93,036)	(82,948)
Cash flows from financing activities:
Proceeds from exercise of stock options	7,881	7,632	7,236
Proceeds from employee stock purchase plan	4,414	4,296	3,860
Excess tax benefit from employee stock incentive plans	6,170	9,183	2,019
Initial public offering costs			(839)
Net cash provided by financing activities	18,465	21,111	12,276
Net increase (decrease) in cash and cash equivalents	13,604	(35,199)	(42,104)
Cash and cash equivalents at beginning of year	56,083	91,282	133,386
Cash and cash equivalents at end of year	69,687	56,083	91,282
Supplemental disclosure of cash flow information
Income taxes paid	1,612	740	915
Non-cash investing and financing activities
Purchases of property and equipment recorded in accounts payable	$ 2,652	$ 1,091	$ 1,111

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 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 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 vast network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality such as enhanced reliability, consistent performance, extended range and massive scalability. Ruckus' products include high capacity, controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions including reporting and analytics and unique Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices. These hardware and software products and services incorporate various elements of the Company's proprietary technologies, including Smart Radio, SmartCast, SmartMesh, and Smart Scaling, to enable high performance in a variety of challenging operating environments. Principles of Consolidation —The consolidated 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 generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions made by management include the determination of revenue recognition, valuation of inventory, goodwill and intangible assets, accounting for income taxes and stock-based compensation. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Actual results could materially differ from those estimates. 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 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 not to be collectible. The percentages of revenue from individual customers totaling greater than 10% of total consolidated Company revenue were as follows: Years Ended December 31, 2015 2014 2013 Distributor A 14.4 % 14.8 % 15.2 % Distributor B 12.3 % 12.5 % 12.4 % Distributor C * 10.9 % * * Less than 10% Each of the Company’s greater than 10% customers are third-party distributors, and in 2015, 2014 and 2013, no single value added reseller or end customer accounted for more than 10% of the Company's total consolidated revenue. The percentage of receivables from individual customers totaling greater than 10% of total consolidated Company accounts receivable, net, were as follows: December 31, 2015 2014 Distributor C 20.3 % 12.5 % Cash and Cash Equivalents —The Company considers all highly liquid financial instruments with original maturities of 90 days or less from date of purchase to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value. The Company’s cash equivalents included interest-bearing bank accounts, money market funds and corporate debt securities. Restricted Cash —As of December 31, 2015, 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”). In the second quarter of 2016, the escrow will expire, but the indemnification agreement will continue. Refer to “Reimbursement of Penalties” in Note 8. Fair Value of Financial Instruments —The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, due to their short-term nature. Short-Term Investments —The Company’s short-term investments consist primarily of corporate debt securities, U.S. government agency securities and U.S. government treasury bills. The Company classifies investments as available-for-sale at the time of purchase. As the Company views these securities as available to support current operations, the Company classifies securities with maturities beyond 12 months as current assets. The Company's policy is to protect the value of its investment portfolio and minimize principal risk by earning returns based on current interest rates. Available-for-sale investments are initially recorded at cost and periodically adjusted to fair value in the consolidated balance sheets. Unrealized gains and losses on these investments are reported as a separate component of accumulated other comprehensive income (loss). Realized gains and losses are reported in the consolidated statements of operations. A specific identification method is used to determine the cost basis of the short-term investments sold. The effects of reclassifications from accumulated other comprehensive income (loss) to the income statement were insignificant for all periods presented. The investments are adjusted for the amortization of premiums and discounts until maturity and such amortization is included in interest income. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. The Company consults with its investment managers and considers available quantitative and qualitative evidence in evaluating potential impairment of the investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and the Company’s intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, the Company will record an impairment charge and establish a new cost basis in the investment. During the year ended December 31, 2015 and 2014, the Company did not consider any of its investments to be other-than-temporarily impaired. Allowance for Doubtful Accounts —The Company records an allowance for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs and the credit-worthiness of each customer. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the accounts receivable could be reduced by a material amount. Activity in the allowance for doubtful accounts was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 800 $ 400 $ 140 Charged to expense 227 400 911 Write-offs (227 ) — (651 ) Balance at end of year $ 800 $ 800 $ 400 Inventories —Inventories are carried at the lower of cost or market, on a first-in, first-out basis. The Company evaluates inventory for excess and obsolete products, based on management’s assessment of future demand, market conditions and technical obsolescence. The Company subcontracts manufacturing of substantially all of its products. At December 31, 2015 and 2014, inventories were predominately comprised of finished goods. Deferred Costs —When the Company’s products have been delivered, but the product revenue associated with the arrangement has been deferred as a result of not meeting the revenue recognition criteria (see “ Revenue Recognition ” below), the related product costs are also deferred if the inventory is deemed recoverable. The deferred costs are recognized in cost of revenues when the related deferred revenue is recognized or when the inventory is deemed unrecoverable. Property and Equipment —Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the leasehold improvements or the term of the related lease. Goodwill— Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. The Company evaluates goodwill for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. The Company performs the impairment testing by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs a two-step impairment test. The first step requires the identification of the reporting units and comparison of the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the second step of the impairment test is performed to compute the amount of the impairment. Under the second step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The Company has determined that it has only one reporting unit. For the years ended December 31, 2015 and 2014, no impairment has been recognized related to the goodwill balance. Intangible Assets— Intangible assets consist primarily of purchased technology and acquired customer relationships resulting from acquisitions. Intangible assets are recorded at fair value and are amortized on a straight-line basis over their estimated useful lives, which ranges from four to five years. Software Development Costs— Capitalization of software development costs for software to be sold, leased, or otherwise marketed begins upon the establishment of technological feasibility. To date, software development costs incurred between completion of a working model and general release of the related product have not been material. Accordingly, the Company has charged all such costs to research and development expense in the period incurred. Internal Use Software— The Company capitalizes development costs associated with customized internal-use software systems that have reached the application development stage. Such capitalized costs include internal and external costs associated with the development of the applications. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. The Company amortizes the capitalized costs on a straight-line basis over the estimated useful life, generally five years. For the year ended December 31, 2015, $3.9 million of software development costs were capitalized. The Company has not amortized the capitalized costs for the periods presented. Impairment of Long-Lived Assets —Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, significant underperformance relative to estimated results, significant changes in the manner of the Company's use of the acquired assets or the strategy for its overall business and significant negative industry or economic trends. Determination of recoverability of long-lived assets is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If intangible assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds the assets fair market value. The Company did not record any impairment charges in the periods presented. Revenue Recognition —The Company generates revenue from sales of its products and services through a direct sales force and indirect relationships with its channel partners. Revenue is recognized when all of the following criteria are met: • Persuasive evidence of an arrangement exists. The Company relies upon sales contracts and purchase orders to determine the existence of an arrangement. • Delivery has occurred. Delivery is deemed to have occurred when title has transferred. The Company uses shipping documents to verify transfer of title. • The fee is fixed or determinable. The Company assesses whether the fee is fixed or determinable based on the terms associated with the transaction. • Collectability is reasonably assured. The Company assesses collectability as sales occur, based on an analysis of the customer's credit and payment history. Certain of the Company's arrangements are multiple-element arrangements and may include hardware, post-contract support (“PCS”), stand-alone software and software as a service. All of its products and services qualify as separate units of accounting. For multiple-element arrangements, the Company allocates revenue to each unit of accounting based on an estimated selling price at the inception of the arrangement. The total arrangement consideration is allocated to each separate unit of accounting using the relative estimated selling prices of each unit. The Company limits the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services. To determine the estimated selling price in multiple-element arrangements, the Company first looks to establish vendor specific objective evidence (“VSOE”) of the selling price using the prices charged for a deliverable when sold separately. If VSOE of the selling price cannot be established for a deliverable, the Company looks to establish third-party evidence (“TPE”) of the selling price by evaluating the pricing of similar and interchangeable competitor products or services in stand-alone arrangements. However, as the Company's products contain a significant element of proprietary technology and offer substantially different features and functionality from its competitors, the Company has been unable to obtain comparable pricing information with respect to its competitors’ products. Therefore, the Company has not been able to obtain reliable evidence of TPE of the selling price. If neither VSOE nor TPE of the selling price can be established for a deliverable, the Company establishes best estimate selling price (“BESP”) by reviewing historical transaction information and considering several other internal factors, including discounting and margin objectives. The Company regularly reviews estimated selling price of the product offerings and maintain internal controls over the establishment and updates of these estimates. The Company currently does not expect a material impact in the near term from changes in estimated selling prices, including VSOE of selling price. Product Revenue . The Company's product revenue consists of revenue from sales of its hardware and stand-alone software licenses and is net of allowances for estimated sales returns, product rebates, stock rotations, and other programs based on historical experience. The Company's hardware deliverables typically include proprietary operating system software, which together deliver the essential functionality of its products. Therefore, the Company's hardware appliances are considered non-software elements and are not subject to the industry-specific software revenue recognition guidance. The Company generates revenue through a direct sales force and indirect relationships with its channel partners. For sales to direct end customers and certain channel partners, the Company recognizes product revenue at the time of the title transfer, assuming all other revenue recognition criteria are met. Certain of the Company's distributors that stock its products are granted significant rebates for sales of the Company's products. Therefore, the arrangement fee for this group of distributors is not fixed and determinable when products are shipped to these distributors and revenue is deferred until the Company's products are shipped to the distributors’ customer. The Company's product revenue also includes revenue from the sale of stand-alone software products. Sales of stand-alone software generally include a perpetual license. Stand-alone software products may operate in conjunction with the Company's hardware products but are not considered essential to the functionality of the hardware. For sales of stand-alone software, the Company recognizes revenue based on software revenue recognition guidance. Under the software revenue recognition guidance, the Company uses the residual method to recognize revenue when a product agreement includes one or more elements to be delivered at a future date and VSOE of the fair value of all undelivered elements exists. In the majority of the Company's contracts, the only element that remains undelivered at the time of delivery of the product is PCS. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the contract fee is recognized as product revenue. If evidence of the fair value of one or more undelivered elements does not exist, all revenue is generally deferred and recognized when delivery of those elements occurs or when fair value can be established. When the only undelivered element for which the Company does not have VSOE of selling price is PCS, revenue for the entire arrangement is bundled and recognized ratably over the support period. Service Revenue . The Company's service revenue consists of revenue from PCS and software as a service. PCS includes software updates on an “if and when available” basis, expedited replacement for defective access points and controllers, telephone and internet access to technical support personnel and hardware support. PCS and software as a service are typically sold in one, three or five year terms and the Company recognizes the revenue ratably over the contractual service period. Sales Tax and Shipping . Revenue is reported net of sales taxes. Shipping charges billed to channel partners are included in revenue and related costs are included in cost of revenue. To date, shipping charges have not been significant. Stock-Based Compensation —The Company measures compensation expense for all stock-based payment awards granted to employees, including stock options, restricted stock units (“RSUs”), performance awards and stock purchase rights under the Company's Employee Stock Purchase Plan (“ESPP”), based on the estimated fair value on the date of the grant. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The fair value of each RSU granted represents the closing price of the Company's common stock on the date of grant. The fair value of stock purchase rights under the Company’s ESPP is calculated based on the closing price of the Company's common stock on the date of grant and the value of put and call options estimated using the Black-Scholes option pricing model. Stock-based compensation is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. The forfeiture rate is based on an analysis of the Company’s actual historical forfeitures. Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities at the foreign subsidiary are re-measured using the current exchange rate at the balance sheet date. Non-monetary assets and liabilities and capital accounts are presented using historical exchange rates. Revenues and expenses are presented using the average exchange rates in effect during the period. Foreign currency re-measurement gains and losses and foreign currency transaction gains and losses have not been material for any periods presented. Income Taxes —The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company records a valuation allowance when necessary to reduce its deferred tax assets to the amount that is more likely than not to be realized. In order for the Company to realize its deferred tax assets, the Company must be able to generate sufficient taxable income in those jurisdictions where the deferred tax assets are located. In determining the need for a valuation allowance, the Company considers future growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions in which it operates, historical earnings, taxable income in prior years, if carryback is permitted under the law, carry-forward periods, and prudent and feasible tax planning strategies. In the event the Company were to determine that not all or part of its net deferred tax assets are not more likely than not to be realized in the future, an adjustment to the deferred tax assets valuation allowance would be charged to earnings in the period in which it makes such a determination, or goodwill would be adjusted if the valuation allowance related to deferred tax assets acquired in a business combination and the adjustment is within the measurement period. If the Company later determines that it is more likely than not that the deferred tax assets would be realized, it would reverse the previously provided valuation allowance as an adjustment to earnings at such time. The amount of income tax the Company pays is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. The Company records uncertain tax positions in accordance with accounting standards on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold the Company recognizes the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to uncertain tax positions in its provision for income taxes line in the accompanying consolidated statements of operations. Loss Contingencies —The Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. The Company considers the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as the Company's ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If the Company determines that a loss is possible and the range of the loss can be reasonably determined, then the Company discloses the range of the possible loss. The Company regularly evaluates available current information to determine whether an accrual is required, an accrual should be adjusted or a range of possible loss should be disclosed. Recent Accounting Pronouncements — In November 2015, the Financial Accounting Standard Board ("FASB") issued accounting standards update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of $6.3 million net current deferred tax asset to the net non-current deferred tax asset in the consolidated balance sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments. The guidance eliminates the requirement for an acquirer in a business combination to retrospectively account for measurement-period adjustments. Instead, acquirers must recognize measurement-period adjustments during the reporting period in which the adjustment amounts are determined, and the effect of the adjustments on the income statement must be calculated as if the accounting had been completed at the acquisition date. In addition, the update requires an entity to present separately on the face of the income statement or in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public entities, the guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date, with earlier application permitted for financial statements that have not been issued. 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 July 2015, the FASB issued 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 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 this accounting standard update on its consolidated financial position, results of operations and cash flows. 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 stand-alone 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.

FAIR VALUE DISCLOSURE

FAIR VALUE DISCLOSURE	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURE	FAIR VALUE DISCLOSURE Assets and liabilities recorded at fair value in the 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. There were no transfers between levels during the years ended December 31, 2015 and 2014. 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’s assets that were measured at fair value by level within the fair value hierarchy were as follows (in thousands): December 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 13,073 $ 13,073 $ — $ — Short-term investments: Corporate debt securities 99,747 — 99,747 — U.S. government agency securities 22,055 — 22,055 — U.S. government treasury bills 38,989 38,989 — — Total assets measured and recorded at fair value $ 173,864 $ 52,062 $ 121,802 $ — 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	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	SHORT-TERM INVESTMENTS Short-term investments consisted of the following (in thousands): December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 99,916 $ 2 $ (171 ) $ 99,747 U.S. government agency securities 22,100 — (45 ) 22,055 U.S. government treasury bills 39,075 — (86 ) 38,989 Total short-term investments $ 161,091 $ 2 $ (302 ) $ 160,791 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 gross realized losses related to the Company’s short-term investments were not material for the years ended December 31, 2015, 2014, and 2013. The cost basis and fair value of the short-term investments by contractual maturity consist of the following (in thousands): December 31, 2015 Amortized Cost Fair Value One year or less $ 105,266 $ 105,150 Over one year and less than two years 55,825 55,641 Total short-term investments $ 161,091 $ 160,791 December 31, 2014 Amortized Cost Fair Value One year or less $ 114,231 $ 114,113 Over one year and less than two years 28,631 28,593 Total short-term investments $ 142,862 $ 142,706 Investments in an unrealized loss position consisted of the following (in thousands): December 31, 2015 December 31, 2014 Less Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 80,369 $ (171 ) $ 105,187 $ (147 ) U.S. government agency securities 22,055 (45 ) 15,773 (13 ) U.S. government treasury bills 38,989 (86 ) — — Total short-term investments $ 141,413 $ (302 ) $ 120,960 $ (160 ) The Company reviews the individual securities in its portfolio to determine whether a decline in a security’s fair value below the amortized cost basis is other-than-temporary. The Company determined that as of December 31, 2015 and 2014 there were no investments in its portfolio that were other-than-temporarily impaired. 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.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATION On October 21, 2015, the Company completed the acquisition of Cloudpath Networks, Inc. (“Cloudpath”), a privately-held company providing secure device onboarding software and certificate-based Wi-Fi security. The Company acquired all of the outstanding capital stock of Cloudpath for $ 9.0 million in cash, of which $1.4 million , subject to certain adjustments, will be paid following the second anniversary of the acquisition date. As a result of the acquisition, the Company offers Cloudpath's secure device onboarding software or software as a service to onboard all new devices simply and securely. The Company allocated the total purchase price consideration to the net assets acquired, including identifiable intangible assets, based on their respective fair values at the acquisition date. The excess purchase price over the fair value of the net assets acquired was recorded as goodwill. There are a number of factors contributing to the amount of goodwill, including Cloudpath's workforce and the expectation that the acquisition will create synergies, which will provide future value to the Company. The goodwill is not expected to be deductible for income tax purposes. The purchase allocation for Cloudpath is summarized as follows (in thousands): Fair Value Cash and cash equivalents $ 431 Other tangible assets 416 Purchased technology 2,300 Customer relationships 1,600 Trade name 360 Goodwill 6,445 Non-current deferred tax liabilities (1,813 ) Deferred revenue (510 ) Other liabilities assumed (229 ) Total purchase consideration $ 9,000 In connection with the acquisition, the Company may pay additional cash compensation of up to $ 9.0 million . The cash compensation is contingent upon the continued employment of a founder with the Company. $ 7.5 million of this cash compensation will vest and be paid in installments every six months over a period of two years from the date of acquisition. Up to $ 1.5 million is contingent upon certain billing targets of Cloudpath products and services as well as the founder providing continuous service and is expected to be paid in the first quarter of 2018. To retain the services of former Cloudpath employees who became employees of the Company, the Company agreed to $ 0.9 million in cash incentives, which vest and are paid over a two -year period, and granted 195,705 RSUs under the Company’s Amended and Restated 2012 Equity Incentive Plan. The fair value of the equity awards of $2.3 million will be recognized over a four -year requisite service period. As the cash incentives are subject to continued employment, they will be recorded as post-acquisition compensation expense. The Company recorded post-acquisition compensation expense of $1.3 million related to Cloudpath founders and former employees for the year ended December 31, 2015 . Acquisition related costs were not material for the year ended December 31, 2015. Pro forma results of operations for the Cloudpath acquisition have not been presented because they are not material to the consolidated statements of operations.

GOODWILL AND INTANGIBLES ASSETS

GOODWILL AND INTANGIBLES ASSETS	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Goodwill consisted of the following (in thousands): Amount December 31, 2014 and 2013 $ 9,945 Goodwill from the acquisition of Cloudpath 6,445 December 31, 2015 $ 16,390 Intangible assets consisted of the following (in thousands, except years): Gross Carrying Accumulated Net Weighted December 31, 2015 Purchased technology $ 14,900 $ (8,159 ) $ 6,741 2.9 Customer relationships 1,600 (62 ) 1,538 4.8 Trade name 360 (14 ) 346 4.8 Total $ 16,860 $ (8,235 ) $ 8,625 December 31, 2014 Purchased technology $ 12,600 $ (5,249 ) $ 7,351 2.8 On October 21, 2015, the Company recorded the fair value of intangible assets of $4.3 million related to acquisition of Cloudpath, including purchased technology of $2.3 million , customer relationships of $1.6 million and trade name of $0.4 million . Amortization expense related to intangible assets were $ 3.0 million , $ 2.3 million and $ 1.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization expense is primarily included as a component of cost of revenue in the accompanying consolidated statements of operations. The following table presents the estimated future amortization expense of intangible assets as of December 31, 2015 (in thousands): Year ending December 31, Amount 2016 $ 3,383 2017 2,352 2018 1,352 2019 852 2020 686 Total amortization $ 8,625

PROPERTY AND EQUIPMENT (Notes)

PROPERTY AND EQUIPMENT (Notes)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands, except estimated useful lives): December 31, Estimated Useful Lives 2015 2014 Computer hardware 3 years $ 15,310 $ 11,167 Computer software 3 years 7,839 4,070 Machinery, equipment and tooling 2 to 3 years 13,661 10,800 Furniture and fixtures 7 years 1,934 1,584 Leasehold improvements 3 to 10 years 5,201 3,911 Total property and equipment 43,945 31,532 Less: accumulated depreciation and amortization (24,534 ) (17,896 ) Total property and equipment, net $ 19,411 $ 13,636 Computer software includes capitalized development costs for internal use software of $4.1 million as of December 31, 2015. For the years ended December 31, 2015, 2014 and 2013, expense related to depreciation and amortization of property and equipment was $8.6 million , $7.3 million and $5.3 million , respectively.

DEFERRED REVENUE

DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2015
Deferred Revenue Disclosure [Abstract]
DEFERRED REVENUE	DEFERRED REVENUE Deferred revenue consisted of the following (in thousands): December 31, 2015 2014 Product $ 15,170 $ 22,900 Service 35,956 26,885 Total deferred revenue $ 51,126 $ 49,785 Reported as: Current $ 36,602 $ 39,231 Non-current 14,524 10,554 Total deferred revenue $ 51,126 $ 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 as a service contracts billed in advance and revenue is recognized ratably over the service period, typically one to five years .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Operating Leases —The Company’s primary facilities are located in Sunnyvale, California, Taipei, Taiwan, Bangalore, India, Shenzhen, China, Singapore and Wooburn Green, United Kingdom, and are leased under non-cancelable operating lease arrangements. Rent expense was $ 4.9 million , $4.7 million and $4.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum lease payments under non-cancelable operating leases are as follows (in thousands): Years ending December 31, Amount 2016 $ 4,942 2017 4,418 2018 3,476 2019 2,570 2020 2,496 Thereafter 4,993 Operating lease obligations $ 22,895 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 year ended December 31, 2015, the Company paid a total of $1.6 million in settlement of patent litigation. For the year ended December 31, 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 consolidated statements of operations. Purchase Commitments — As of December 31, 2015, the Company had current purchase commitments of $10.3 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 December 31, 2015 and 2014. Reimbursement of Penalties — As of December 30, 2015 and 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 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. In the second quarter of 2016, the escrow will expire, but the indemnification agreement will continue. To date no claims have been made under the IT Act, for which the Company would be potentially liable. Warranties — The Company generally 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 consolidated balance sheets. Changes in the warranty liability were as follows (in thousands): Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 803 $ 1,038 $ 725 Changes in existing warranty 80 (216 ) (41 ) Warranty expense 892 955 1,528 Obligations fulfilled (691 ) (974 ) (1,174 ) Balance at end of year $ 1,084 $ 803 $ 1,038

EQUITY AWARD PLAN

EQUITY AWARD PLAN	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY AWARD PLAN	EQUITY AWARD PLAN Stock Incentive Plan —The Company's 2012 Stock Incentive Plan ("2012 Plan") provides for the granting of stock options, restricted stock awards ("RSUs"), stock appreciation rights and performance awards to employees, directors and consultants. Awards granted under the 2012 Plan vest over the periods determined by the board of directors, generally one to four years, beginning from the vesting commencement date, and expire no more than 10 years from the date of grant. The maximum number of shares of common stock that may be issued under the Company’s 2012 Plan is 32.0 million . Each year on January 1, starting in January 2013, the maximum number of shares that may be issued increases by the lesser of, 5% of the total number of shares of the Company's capital stock outstanding on December 31 of the preceding year, or a lesser number of shares as determined by the board of directors. As of December 31, 2015 and 2014, 29.8 million and 29.3 million shares were authorized for issuance under this plan, respectively. Employee Stock Purchase Plan —Under the Company's ESPP, the Company can grant stock purchase rights to all eligible employees during a one year offering period with purchase dates at the end of each six -month purchase period. Each six month purchase period will begin on the first trading date on or after May 16 and November 16 of each year. Shares are purchased through the accumulation of employees' payroll deductions, up to a maximum of 15% of employees' compensation for each purchase period, at purchase prices equal to 85% of the lesser of the closing price of the Company’s common stock on the first trading day of the applicable offering period or the purchase date. No participant may purchase more than $25,000 worth of common stock or 2,000 shares of common stock in any one year offering period. The ESPP is compensatory and results in compensation expense. The number of shares of common stock reserved for issuance under the ESPP increases automatically each year on January 1, starting in January 2013, continuing through and including January 1, 2022, by the lesser of (i) 2% of the total number of shares of the common stock outstanding on December 31 of the preceding calendar year; (ii) 3,000,000 shares of common stock; or (iii) such lesser number of shares as determined by the board of directors. Shares subject to purchase rights granted under the ESPP that terminate without having been exercised in full will not reduce the number of shares available. As of December 31, 2015 and 2014, approximately 5.0 million and 3.8 million shares were authorized for issuance under the ESPP. Employees purchased approximately 0.5 million shares of common stock at an average exercise price of $9.34 and 0.5 million shares of common stock at an average exercise price of $8.91 , during the years ended December 31, 2015 and 2014, respectively. Stock Option Activity The following table summarizes the outstanding stock option activity (in thousands, except per share amounts and years): Options Outstanding Number of Weighted Weighted Aggregate Balance, December 31, 2014 17,042 $ 5.60 6.7 $ 119,782 Options granted 340 11.17 Options exercised (2,888) 2.73 Options forfeited (747) 10.50 Balance, December 31, 2015 13,747 $ 6.08 5.7 $ 76,742 Options exercisable as of December 31, 2015 11,467 $ 4.87 5.2 $ 74,238 Options vested and expected to vest as of December 31, 2015 13,679 $ 6.04 5.7 $ 76,715 The weighted average fair value of stock options granted was $5.73 , $7.42 and $10.33 for the years ended December 31, 2015, 2014 and 2013, respectively. The total intrinsic value of options exercised was approximately $25.3 million , $39.0 million and $74.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. RSU Activity The following table summarizes the outstanding activity of RSUs (in thousands, except per share amounts and years): RSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Aggregate Intrinsic Value Balance, December 31, 2014 2,825 $ 13.65 1.7 $ 33,955 RSUs granted 2,749 11.41 RSUs vested (874 ) 13.94 RSUs forfeited (423 ) 13.37 Balance, December 31, 2015 4,277 $ 12.17 1.7 $ 45,794 The weighted average fair value of RSUs granted was $ 11.41 , $12.70 and $17.10 for the years ended December 31, 2015, 2014 and 2013, respectively. The aggregate fair value of RSUs vested as of the respective vesting dates, was approximately $ 12.2 million and $4.2 million for the year ended December 31, 2015 and December 31, 2014, respectively. No RSUs vested during the year ended December 31, 2013. Shares Available for Grant The following table summarizes the stock activity and the total number of shares available for grant under the 2012 Plan as of December 31, 2015 (in thousands): Number of Balance, December 31, 2014 9,398 Additional shares reserved for issuance 4,256 Options granted (340 ) Options forfeited 747 RSUs granted (2,749 ) RSUs forfeited 423 Balance, December 31, 2015 11,735 Fair Value Disclosures The stock-based payment awards include stock options, RSUs, performance awards and stock purchase rights under the Company's ESPP. Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense, net of estimated forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The fair value of each RSU and performance award granted represents the closing price of the Company’s common stock on the date of grant. The fair value of stock purchase rights under the Company’s ESPP is calculated based on the closing price of the Company’s stock on the date of grant and the value of put and call options estimated using the Black-Scholes option pricing model. The forfeiture rate is based on an analysis of the Company’s actual historical forfeitures. The determination of the grant date fair value of options using the Black-Scholes option pricing model is affected by the following assumptions: • Expected Term . The Company's expected term represents the period that its stock-based awards are expected to be outstanding and was calculated as the average of the option vesting and contractual terms, based on the simplified method provided by the Securities and Exchange Commission’s Staff Accounting Bulletin No. 110. The simplified method is used due to the lack of a sufficient amount of historical exercise data. The expected term for the ESPP is based on the duration of the purchase period, typically six to twelve months. • Volatility . Given the limited trading history for the Company's common stock, the expected stock price volatility for the Company's common stock was estimated by taking a combination of its historical common stock price volatility and an average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of several public companies within the Company's industry and are similar in size, stage of life cycle and financial leverage. The Company did not rely on implied volatilities of traded options in its common stock or these industry peers’ common stock because the volume of activity was relatively low. The Company intends to continue to consistently apply this process until a sufficient amount of historical information regarding the volatility of its own common stock share price over a period equivalent to the expected term of the stock option grants becomes available, or until circumstances change such that the identified companies are no longer similar to the Company, in which case more suitable companies whose share prices are publicly available would be utilized in the calculation. • Risk-free Rate . The risk-free interest rate is based on the U.S. Treasury zero coupon issues with remaining terms similar to the expected term of the stock option grants. • Dividend Yield . The Company has never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. Employee Stock Options The following table summarizes the weighted average assumptions relating to the Company’s stock options: Years Ended December 31, 2015 2014 2013 Volatility 54.9 % 60.7 % 67.4 % Expected term (years) 5.7 6.1 6.1 Risk-free interest rate 1.8 % 1.9 % 1.9 % Dividend yield — — — Employee Stock Purchase Plan The following table summarizes the weighted average assumptions relating to the Company’s ESPP: Years Ended December 31, 2015 2014 Volatility 45.3 % 40.2 % Expected term (years) 0.7 0.7 Risk-free interest rate 0.4 % 0.1 % Dividend yield — — Stock-based Compensation Expense The following table summarizes the stock-based compensation expense recorded in the consolidated statements of operations (in thousands): Years Ended December 31, 2015 2014 2013 Cost of revenue $ 1,097 $ 1,092 $ 818 Research and development 9,759 9,099 6,738 Sales and marketing 7,252 7,180 4,922 General and administrative 10,685 9,223 6,637 Total stock-based compensation expense 28,793 26,594 19,115 Tax benefit from stock-based compensation (618 ) (688 ) (1,535 ) Total stock-based compensation expense, net of tax effect $ 28,175 $ 25,906 $ 17,580 At December 31, 2015 the total unrecognized stock-based compensation expense under the Company’s stock plans was $ 60.9 million , net of estimated forfeitures. The unamortized expense will be recognized over a weighted-average period of 2.7 years.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 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): Years Ended December 31, 2015 2014 2013 Numerator: Net income $ 4,690 $ 8,190 $ 1,789 Denominator: Weighted-average shares used in computing basic net income per share 87,418 82,908 76,744 Weighted-average effect of potentially dilutive shares: Stock options 7,944 10,538 16,442 RSUs and ESPP 489 222 175 Diluted 95,851 93,668 93,361 Net income per share: Basic $ 0.05 $ 0.10 $ 0.02 Diluted $ 0.05 $ 0.09 $ 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): Years Ended December 31, 2015 2014 2013 Stock options 3,505 2,649 1,134 RSUs and ESPP 993 977 233 Total 4,498 3,626 1,367

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The domestic and foreign components of income (loss) before the provision for income taxes for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands): Years Ended December 31, 2015 2014 2013 Domestic $ 5,900 $ 13,107 $ (1,015 ) Foreign 1,701 1,023 905 Total $ 7,601 $ 14,130 $ (110 ) During the years ended December 31, 2015, 2014 and 2013, the Company’s income tax expense (benefit) was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Current expense: Federal $ 6,994 $ 8,224 $ 1,880 State 58 999 143 Foreign 1,341 1,257 1,006 Total current expense 8,393 10,480 3,029 Deferred benefit: Federal (4,527 ) (2,936 ) (3,445 ) State (734 ) (1,259 ) (1,172 ) Foreign (221 ) (345 ) (311 ) Total deferred benefit (5,482 ) (4,540 ) (4,928 ) Total income tax expense (benefit) $ 2,911 $ 5,940 $ (1,899 ) The difference between the income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate to the income (loss) before income taxes is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Federal statutory rate $ 2,660 $ 4,945 $ (38 ) State taxes, net of federal income tax benefit 378 602 86 Non-deductible expenses 363 246 209 Stock-based compensation 1,498 2,209 1,535 Acquisition cost 104 — 110 Foreign tax deduction (142 ) (153 ) (101 ) Tax credits (2,246 ) (2,502 ) (4,020 ) Foreign tax rate differential 407 393 324 Deferred rent (219 ) — — Other items not individually material 108 200 (4 ) Total income tax expense (benefit) $ 2,911 $ 5,940 $ (1,899 ) On December 18, 2015, the President signed into law the Protecting Americans from Tax Hikes (“PATH”) Act, which retroactively extended the expired research and development credit and made it permanent going forward. As a result of the retroactive extension, the Company recognized a tax benefit of $1.2 million for the year ended December 31, 2015. The Company records deferred tax assets if the realization of such assets is more likely than not. Significant management judgment is required in determining whether a valuation allowance against the Company’s deferred tax assets is required. The Company has considered all available evidence, both positive and negative, such as historical levels of income and predictability of future forecasts of taxable income, in determining whether a valuation allowance is required. The Company is also required to forecast future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. As of December 31, 2015, the Company had cumulative net income before tax for the three years then ended. Based on its historical operating performance, as well as the Company’s expectation that its operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets, the Company has concluded that it was more likely than not that the Company would be able to realize the benefit of the U.S. federal and state deferred tax assets in the future. As a result, the Company did not record a valuation allowance against its net deferred tax assets during the year ended December 31, 2015. The Company will continue to assess the need for a valuation allowance on the deferred tax assets by evaluating both positive and negative evidence that may exist on a quarterly basis. Any adjustment to the deferred tax asset valuation allowance would be recorded in the statement of operations for the period that the adjustment is determined to be required. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of December 31, 2015 2014 Deferred tax assets: Accruals and reserves $ 4,056 $ 2,645 Tax credits 5,455 4,416 Fixed assets and intangibles, other than goodwill 851 3,913 Net operating losses 1,246 1,426 Stock-based compensation 13,850 11,023 Deferred revenue 3,606 2,560 Other 2,392 2,177 Total deferred tax assets 31,456 28,160 Deferred tax liabilities Intangible assets (595 ) (850 ) Goodwill (755 ) (535 ) Net deferred tax assets $ 30,106 $ 26,775 As reported: Current deferred tax asset $ — $ 6,205 Non-current deferred tax assets 30,217 21,166 Non-current deferred tax liabilities (111 ) (596 ) Net deferred tax assets $ 30,106 $ 26,775 In November 2015, the Financial Accounting Standard Board ("FASB") issued accounting standards update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of $6.3 million net current deferred tax asset to the net non-current deferred tax asset in the consolidated balance sheet as of December 31, 2015. No prior periods were retrospectively adjusted. As of December 31, 2015, the Company had net operating loss carryforwards of approximately $30.7 million for federal purposes, $52.2 million for state purposes and $ 3.2 million for foreign purposes. If not utilized, these carryforwards will begin to expire in 2033 for federal purposes and 2019 for state purposes. Foreign carryforwards will not expire. In addition, the Company has research credit carryforwards of approximately $5.5 million for federal purposes and $10.5 million for California purposes. If not utilized, the federal carryforward will begin to expire in 2024. The California credit carryforward will not expire. As a result of certain realization requirements of the accounting guidance for stock-based compensation, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets at December 31, 2015 and 2014 that arose directly from (or the use of which was postponed by) tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Approximately $30.7 million of federal net operating losses, $34.2 million of state net operating losses, and $ 1.9 million of foreign net operating losses relate to stock compensation deductions in excess of book expense, the tax effect of which would be to credit additional paid-in capital if realized. The Company uses the accounting guidance on a with and without approach under ASC Topic 740 Income Taxes, for the purpose of determining when excess tax benefits have been realized. In addition, approximately $5.5 million of the federal research credits and $ 0.1 million of the California research credits, when realized, will result in a credit to additional paid-in capital. The Company has foreign tax credit carryforwards of approximately $ 0.5 million for federal purposes. If not utilized, the foreign tax credit carryforward will begin to expire in 2019. The Tax Reform Act of 1986 limits the use of net operating loss and tax credit carryforwards in certain situations where stock ownership changes occur. In the event the Company has had a change in ownership, the future utilization of the Company’s net operating loss and tax credit carryforwards could be limited. The undistributed earnings from the Company’s foreign subsidiaries are not subject to a United States tax provision because it is management’s intention to permanently reinvest such undistributed earnings outside of the United States. The Company evaluates its circumstances and reassesses this determination on a periodic basis. As of December 31, 2015, the determination of the unrecorded deferred tax liability related to these earnings was immaterial. If circumstances change and it becomes apparent that some or all of the undistributed earnings of the Company’s foreign subsidiaries will be remitted in the foreseeable future, the Company will be required to recognize a deferred tax liability on those amounts. The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases and other information. As of December 31, 2015, 2014 and 2013, the Company’s total amount of unrecognized tax benefit was approximately $ 4.5 million , $ 3.3 million and $ 2.4 million , respectively. These amounts are primarily related to the Company’s research and development tax credits and tax accruals. If the unrecognized tax benefit of $ 4.5 million as of December 31, 2015 were recognized, approximately $3.7 million would impact the effective tax rate. The Company does not expect its unrecognized tax benefits to change materially over the next twelve months. A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 is as follows (in thousands): As of December 31, 2015 2014 2013 Balance at beginning of year $ 3,252 $ 2,397 $ 836 Additions related to current year tax positions 1,270 858 1,394 Additions related to prior year tax positions — — 167 Reductions related to prior year tax positions — (3 ) — Balance at end of year $ 4,522 $ 3,252 $ 2,397 During the year ended December 31, 2015 and cumulatively, the Company recognized an immaterial amount of interest and penalties associated with unrecognized tax benefits. The Company files income tax returns with the United States federal government, various states and certain foreign jurisdictions. The Company’s tax years ended December 31, 2003 through December 31, 2015 remain open to audit for federal and California purposes. These years are open due to net operating losses and tax credits unutilized from such years. The Company’s tax years ended December 31, 2009 through December 31, 2015 remain open to audits for its foreign subsidiaries.

EMPLOYEE SAVINGS AND RETIREMENT

EMPLOYEE SAVINGS AND RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE SAVINGS AND RETIREMENT PLAN	EMPLOYEE BENEFIT PLAN The Company sponsors a defined contribution plan under Internal Revenue Service Code 401(k) (the “401(k) Plan”). Most United States employees are eligible to participate following the start of their employment, at the beginning of each calendar month. Employees may contribute up to the lesser of 100% of their current compensation to the 401(k) Plan or an amount up to a statutorily prescribed annual limit. The Company matched one-time employee contributions to the 401(k) Plan for the year ended December 31, 2015.

WORKFORCE REORGANIZATION (Notes

WORKFORCE REORGANIZATION (Notes)	12 Months Ended
	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Workforce Reorganization	WORKFORCE REORGANIZATION In the third quarter of 2015, the Company initiated a workforce reorganization plan designed to increase the efficiency of engineering efforts by reallocating research and development projects and related resources geographically. As part of this plan, the Company reduced engineering personnel at certain research and development facilities and terminated an outsourced research and development service contract. To compensate for the loss of engineering resource, the Company continues to increase engineering personnel in conjunction with the reorganization plan at other research and development sites. The Company incurred workforce reorganization charges of $1.1 million during the year ended December 31, 2015, including $0.6 million of personnel reduction costs and $0.5 million related to contract termination. The Company expects to complete the workforce reorganization plan in the second quarter of 2016.

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company operates as one reportable and operating segment, selling 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 manager 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's chief executive officer evaluates 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): Years Ended December 31, 2015 2014 2013 Americas: United States $ 180,067 $ 159,548 $ 118,333 Other Americas 14,953 9,670 12,604 Total Americas 195,020 169,218 130,937 EMEA: United Kingdom 29,891 24,715 28,129 Other EMEA 67,565 59,351 43,884 Total EMEA 97,456 84,066 72,013 APAC: Total APAC 80,900 73,635 60,117 Total revenue $ 373,376 $ 326,919 $ 263,067 As of December 31, 2015, the Company had property and equipment, net, of $14.0 million , $4.8 million and $0.5 million located in the Americas, APAC and EMEA, respectively.

DESCRIPTION OF BUSINESS AND S22

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 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 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 vast network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality such as enhanced reliability, consistent performance, extended range and massive scalability. Ruckus' products include high capacity, controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions including reporting and analytics and unique Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices. These hardware and software products and services incorporate various elements of the Company's proprietary technologies, including Smart Radio, SmartCast, SmartMesh, and Smart Scaling, to enable high performance in a variety of challenging operating environments.
Principles of Consolidation	Principles of Consolidation —The consolidated 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 generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions made by management include the determination of revenue recognition, valuation of inventory, goodwill and intangible assets, accounting for income taxes and stock-based compensation. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Actual results could materially differ from those estimates.
Concentration Risk, Credit Risk, Policy	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 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 not to be collectible. The percentages of revenue from individual customers totaling greater than 10% of total consolidated Company revenue were as follows: Years Ended December 31, 2015 2014 2013 Distributor A 14.4 % 14.8 % 15.2 % Distributor B 12.3 % 12.5 % 12.4 % Distributor C * 10.9 % * * Less than 10% Each of the Company’s greater than 10% customers are third-party distributors, and in 2015, 2014 and 2013, no single value added reseller or end customer accounted for more than 10% of the Company's total consolidated revenue. The percentage of receivables from individual customers totaling greater than 10% of total consolidated Company accounts receivable, net, were as follows: December 31, 2015 2014 Distributor C 20.3 % 12.5 %
Cash and Cash Equivalents	Cash and Cash Equivalents —The Company considers all highly liquid financial instruments with original maturities of 90 days or less from date of purchase to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value. The Company’s cash equivalents included interest-bearing bank accounts, money market funds and corporate debt securities.
Restricted Cash	Restricted Cash —As of December 31, 2015, 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”). In the second quarter of 2016, the escrow will expire, but the indemnification agreement will continue. Refer to “Reimbursement of Penalties” in Note 8.
Fair Value of Financial Instruments	Fair Value of Financial Instruments —The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, due to their short-term nature.
Short-Term Investments	Short-Term Investments —The Company’s short-term investments consist primarily of corporate debt securities, U.S. government agency securities and U.S. government treasury bills. The Company classifies investments as available-for-sale at the time of purchase. As the Company views these securities as available to support current operations, the Company classifies securities with maturities beyond 12 months as current assets. The Company's policy is to protect the value of its investment portfolio and minimize principal risk by earning returns based on current interest rates. Available-for-sale investments are initially recorded at cost and periodically adjusted to fair value in the consolidated balance sheets. Unrealized gains and losses on these investments are reported as a separate component of accumulated other comprehensive income (loss). Realized gains and losses are reported in the consolidated statements of operations. A specific identification method is used to determine the cost basis of the short-term investments sold. The effects of reclassifications from accumulated other comprehensive income (loss) to the income statement were insignificant for all periods presented. The investments are adjusted for the amortization of premiums and discounts until maturity and such amortization is included in interest income. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. The Company consults with its investment managers and considers available quantitative and qualitative evidence in evaluating potential impairment of the investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and the Company’s intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, the Company will record an impairment charge and establish a new cost basis in the investment. During the year ended December 31, 2015 and 2014, the Company did not consider any of its investments to be other-than-temporarily impaired.
Allowance for doubtful accounts	Allowance for Doubtful Accounts —The Company records an allowance for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs and the credit-worthiness of each customer. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the accounts receivable could be reduced by a material amount. Activity in the allowance for doubtful accounts was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 800 $ 400 $ 140 Charged to expense 227 400 911 Write-offs (227 ) — (651 ) Balance at end of year $ 800 $ 800 $ 400
Inventories	Inventories —Inventories are carried at the lower of cost or market, on a first-in, first-out basis. The Company evaluates inventory for excess and obsolete products, based on management’s assessment of future demand, market conditions and technical obsolescence. The Company subcontracts manufacturing of substantially all of its products. At December 31, 2015 and 2014, inventories were predominately comprised of finished goods.
Deferred Costs	Deferred Costs —When the Company’s products have been delivered, but the product revenue associated with the arrangement has been deferred as a result of not meeting the revenue recognition criteria (see “ Revenue Recognition ” below), the related product costs are also deferred if the inventory is deemed recoverable. The deferred costs are recognized in cost of revenues when the related deferred revenue is recognized or when the inventory is deemed unrecoverable.
Property, Plant and Equipment, Net	Property and Equipment —Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the leasehold improvements or the term of the related lease.
Goodwill	Goodwill— Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. The Company evaluates goodwill for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. The Company performs the impairment testing by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs a two-step impairment test. The first step requires the identification of the reporting units and comparison of the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the second step of the impairment test is performed to compute the amount of the impairment. Under the second step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The Company has determined that it has only one reporting unit. For the years ended December 31, 2015 and 2014, no impairment has been recognized related to the goodwill balance.
Intangible Assets, Net	Intangible Assets— Intangible assets consist primarily of purchased technology and acquired customer relationships resulting from acquisitions. Intangible assets are recorded at fair value and are amortized on a straight-line basis over their estimated useful lives, which ranges from four to five years.
Software Development Costs	Software Development Costs— Capitalization of software development costs for software to be sold, leased, or otherwise marketed begins upon the establishment of technological feasibility. To date, software development costs incurred between completion of a working model and general release of the related product have not been material. Accordingly, the Company has charged all such costs to research and development expense in the period incurred.
Internal Use Software, Policy	Internal Use Software— The Company capitalizes development costs associated with customized internal-use software systems that have reached the application development stage. Such capitalized costs include internal and external costs associated with the development of the applications. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. The Company amortizes the capitalized costs on a straight-line basis over the estimated useful life, generally five years. For the year ended December 31, 2015, $3.9 million of software development costs were capitalized. The Company has not amortized the capitalized costs for the periods presented.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets —Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, significant underperformance relative to estimated results, significant changes in the manner of the Company's use of the acquired assets or the strategy for its overall business and significant negative industry or economic trends. Determination of recoverability of long-lived assets is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If intangible assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds the assets fair market value. The Company did not record any impairment charges in the periods presented.
Revenue Recognition	Revenue Recognition —The Company generates revenue from sales of its products and services through a direct sales force and indirect relationships with its channel partners. Revenue is recognized when all of the following criteria are met: • Persuasive evidence of an arrangement exists. The Company relies upon sales contracts and purchase orders to determine the existence of an arrangement. • Delivery has occurred. Delivery is deemed to have occurred when title has transferred. The Company uses shipping documents to verify transfer of title. • The fee is fixed or determinable. The Company assesses whether the fee is fixed or determinable based on the terms associated with the transaction. • Collectability is reasonably assured. The Company assesses collectability as sales occur, based on an analysis of the customer's credit and payment history. Certain of the Company's arrangements are multiple-element arrangements and may include hardware, post-contract support (“PCS”), stand-alone software and software as a service. All of its products and services qualify as separate units of accounting. For multiple-element arrangements, the Company allocates revenue to each unit of accounting based on an estimated selling price at the inception of the arrangement. The total arrangement consideration is allocated to each separate unit of accounting using the relative estimated selling prices of each unit. The Company limits the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services. To determine the estimated selling price in multiple-element arrangements, the Company first looks to establish vendor specific objective evidence (“VSOE”) of the selling price using the prices charged for a deliverable when sold separately. If VSOE of the selling price cannot be established for a deliverable, the Company looks to establish third-party evidence (“TPE”) of the selling price by evaluating the pricing of similar and interchangeable competitor products or services in stand-alone arrangements. However, as the Company's products contain a significant element of proprietary technology and offer substantially different features and functionality from its competitors, the Company has been unable to obtain comparable pricing information with respect to its competitors’ products. Therefore, the Company has not been able to obtain reliable evidence of TPE of the selling price. If neither VSOE nor TPE of the selling price can be established for a deliverable, the Company establishes best estimate selling price (“BESP”) by reviewing historical transaction information and considering several other internal factors, including discounting and margin objectives. The Company regularly reviews estimated selling price of the product offerings and maintain internal controls over the establishment and updates of these estimates. The Company currently does not expect a material impact in the near term from changes in estimated selling prices, including VSOE of selling price. Product Revenue . The Company's product revenue consists of revenue from sales of its hardware and stand-alone software licenses and is net of allowances for estimated sales returns, product rebates, stock rotations, and other programs based on historical experience. The Company's hardware deliverables typically include proprietary operating system software, which together deliver the essential functionality of its products. Therefore, the Company's hardware appliances are considered non-software elements and are not subject to the industry-specific software revenue recognition guidance. The Company generates revenue through a direct sales force and indirect relationships with its channel partners. For sales to direct end customers and certain channel partners, the Company recognizes product revenue at the time of the title transfer, assuming all other revenue recognition criteria are met. Certain of the Company's distributors that stock its products are granted significant rebates for sales of the Company's products. Therefore, the arrangement fee for this group of distributors is not fixed and determinable when products are shipped to these distributors and revenue is deferred until the Company's products are shipped to the distributors’ customer. The Company's product revenue also includes revenue from the sale of stand-alone software products. Sales of stand-alone software generally include a perpetual license. Stand-alone software products may operate in conjunction with the Company's hardware products but are not considered essential to the functionality of the hardware. For sales of stand-alone software, the Company recognizes revenue based on software revenue recognition guidance. Under the software revenue recognition guidance, the Company uses the residual method to recognize revenue when a product agreement includes one or more elements to be delivered at a future date and VSOE of the fair value of all undelivered elements exists. In the majority of the Company's contracts, the only element that remains undelivered at the time of delivery of the product is PCS. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the contract fee is recognized as product revenue. If evidence of the fair value of one or more undelivered elements does not exist, all revenue is generally deferred and recognized when delivery of those elements occurs or when fair value can be established. When the only undelivered element for which the Company does not have VSOE of selling price is PCS, revenue for the entire arrangement is bundled and recognized ratably over the support period. Service Revenue . The Company's service revenue consists of revenue from PCS and software as a service. PCS includes software updates on an “if and when available” basis, expedited replacement for defective access points and controllers, telephone and internet access to technical support personnel and hardware support. PCS and software as a service are typically sold in one, three or five year terms and the Company recognizes the revenue ratably over the contractual service period. Sales Tax and Shipping . Revenue is reported net of sales taxes. Shipping charges billed to channel partners are included in revenue and related costs are included in cost of revenue. To date, shipping charges have not been significant.
Share-based Compensation	Stock-Based Compensation —The Company measures compensation expense for all stock-based payment awards granted to employees, including stock options, restricted stock units (“RSUs”), performance awards and stock purchase rights under the Company's Employee Stock Purchase Plan (“ESPP”), based on the estimated fair value on the date of the grant. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The fair value of each RSU granted represents the closing price of the Company's common stock on the date of grant. The fair value of stock purchase rights under the Company’s ESPP is calculated based on the closing price of the Company's common stock on the date of grant and the value of put and call options estimated using the Black-Scholes option pricing model. Stock-based compensation is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. The forfeiture rate is based on an analysis of the Company’s actual historical forfeitures.
Foreign Currency	Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities at the foreign subsidiary are re-measured using the current exchange rate at the balance sheet date. Non-monetary assets and liabilities and capital accounts are presented using historical exchange rates. Revenues and expenses are presented using the average exchange rates in effect during the period. Foreign currency re-measurement gains and losses and foreign currency transaction gains and losses have not been material for any periods presented.
Income Tax	Income Taxes —The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company records a valuation allowance when necessary to reduce its deferred tax assets to the amount that is more likely than not to be realized. In order for the Company to realize its deferred tax assets, the Company must be able to generate sufficient taxable income in those jurisdictions where the deferred tax assets are located. In determining the need for a valuation allowance, the Company considers future growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions in which it operates, historical earnings, taxable income in prior years, if carryback is permitted under the law, carry-forward periods, and prudent and feasible tax planning strategies. In the event the Company were to determine that not all or part of its net deferred tax assets are not more likely than not to be realized in the future, an adjustment to the deferred tax assets valuation allowance would be charged to earnings in the period in which it makes such a determination, or goodwill would be adjusted if the valuation allowance related to deferred tax assets acquired in a business combination and the adjustment is within the measurement period. If the Company later determines that it is more likely than not that the deferred tax assets would be realized, it would reverse the previously provided valuation allowance as an adjustment to earnings at such time. The amount of income tax the Company pays is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. The Company records uncertain tax positions in accordance with accounting standards on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold the Company recognizes the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to uncertain tax positions in its provision for income taxes line in the accompanying consolidated statements of operations.
Loss Contingencies	Loss Contingencies —The Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. The Company considers the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as the Company's ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If the Company determines that a loss is possible and the range of the loss can be reasonably determined, then the Company discloses the range of the possible loss. The Company regularly evaluates available current information to determine whether an accrual is required, an accrual should be adjusted or a range of possible loss should be disclosed.
Recent Accounting Pronouncements	Recent Accounting Pronouncements — In November 2015, the Financial Accounting Standard Board ("FASB") issued accounting standards update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of $6.3 million net current deferred tax asset to the net non-current deferred tax asset in the consolidated balance sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments. The guidance eliminates the requirement for an acquirer in a business combination to retrospectively account for measurement-period adjustments. Instead, acquirers must recognize measurement-period adjustments during the reporting period in which the adjustment amounts are determined, and the effect of the adjustments on the income statement must be calculated as if the accounting had been completed at the acquisition date. In addition, the update requires an entity to present separately on the face of the income statement or in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public entities, the guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date, with earlier application permitted for financial statements that have not been issued. 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 July 2015, the FASB issued 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 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 this accounting standard update on its consolidated financial position, results of operations and cash flows. 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 stand-alone 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.

DESCRIPTION OF BUSINESS AND S23

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 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 Company revenue were as follows: Years Ended December 31, 2015 2014 2013 Distributor A 14.4 % 14.8 % 15.2 % Distributor B 12.3 % 12.5 % 12.4 % Distributor C * 10.9 % * * Less than 10% Each of the Company’s greater than 10% customers are third-party distributors, and in 2015, 2014 and 2013, no single value added reseller or end customer accounted for more than 10% of the Company's total consolidated revenue. The percentage of receivables from individual customers totaling greater than 10% of total consolidated Company accounts receivable, net, were as follows: December 31, 2015 2014 Distributor C 20.3 % 12.5 %
Allowance for doubtful accounts	Allowance for Doubtful Accounts —The Company records an allowance for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs and the credit-worthiness of each customer. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the accounts receivable could be reduced by a material amount. Activity in the allowance for doubtful accounts was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 800 $ 400 $ 140 Charged to expense 227 400 911 Write-offs (227 ) — (651 ) Balance at end of year $ 800 $ 800 $ 400

FAIR VALUE DISCLOSURE (Tables)

FAIR VALUE DISCLOSURE (Tables)	12 Months Ended
	Dec. 31, 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): December 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 13,073 $ 13,073 $ — $ — Short-term investments: Corporate debt securities 99,747 — 99,747 — U.S. government agency securities 22,055 — 22,055 — U.S. government treasury bills 38,989 38,989 — — Total assets measured and recorded at fair value $ 173,864 $ 52,062 $ 121,802 $ — 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)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of investment maturity	SHORT-TERM INVESTMENTS Short-term investments consisted of the following (in thousands): December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 99,916 $ 2 $ (171 ) $ 99,747 U.S. government agency securities 22,100 — (45 ) 22,055 U.S. government treasury bills 39,075 — (86 ) 38,989 Total short-term investments $ 161,091 $ 2 $ (302 ) $ 160,791 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 gross realized losses related to the Company’s short-term investments were not material for the years ended December 31, 2015, 2014, and 2013. The cost basis and fair value of the short-term investments by contractual maturity consist of the following (in thousands): December 31, 2015 Amortized Cost Fair Value One year or less $ 105,266 $ 105,150 Over one year and less than two years 55,825 55,641 Total short-term investments $ 161,091 $ 160,791 December 31, 2014 Amortized Cost Fair Value One year or less $ 114,231 $ 114,113 Over one year and less than two years 28,631 28,593 Total short-term investments $ 142,862 $ 142,706 Investments in an unrealized loss position consisted of the following (in thousands): December 31, 2015 December 31, 2014 Less Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 80,369 $ (171 ) $ 105,187 $ (147 ) U.S. government agency securities 22,055 (45 ) 15,773 (13 ) U.S. government treasury bills 38,989 (86 ) — — Total short-term investments $ 141,413 $ (302 ) $ 120,960 $ (160 ) The Company reviews the individual securities in its portfolio to determine whether a decline in a security’s fair value below the amortized cost basis is other-than-temporary. The Company determined that as of December 31, 2015 and 2014 there were no investments in its portfolio that were other-than-temporarily impaired. 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.

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Purchase price allocation	BUSINESS COMBINATION On October 21, 2015, the Company completed the acquisition of Cloudpath Networks, Inc. (“Cloudpath”), a privately-held company providing secure device onboarding software and certificate-based Wi-Fi security. The Company acquired all of the outstanding capital stock of Cloudpath for $ 9.0 million in cash, of which $1.4 million , subject to certain adjustments, will be paid following the second anniversary of the acquisition date. As a result of the acquisition, the Company offers Cloudpath's secure device onboarding software or software as a service to onboard all new devices simply and securely. The Company allocated the total purchase price consideration to the net assets acquired, including identifiable intangible assets, based on their respective fair values at the acquisition date. The excess purchase price over the fair value of the net assets acquired was recorded as goodwill. There are a number of factors contributing to the amount of goodwill, including Cloudpath's workforce and the expectation that the acquisition will create synergies, which will provide future value to the Company. The goodwill is not expected to be deductible for income tax purposes. The purchase allocation for Cloudpath is summarized as follows (in thousands): Fair Value Cash and cash equivalents $ 431 Other tangible assets 416 Purchased technology 2,300 Customer relationships 1,600 Trade name 360 Goodwill 6,445 Non-current deferred tax liabilities (1,813 ) Deferred revenue (510 ) Other liabilities assumed (229 ) Total purchase consideration $ 9,000 In connection with the acquisition, the Company may pay additional cash compensation of up to $ 9.0 million . The cash compensation is contingent upon the continued employment of a founder with the Company. $ 7.5 million of this cash compensation will vest and be paid in installments every six months over a period of two years from the date of acquisition. Up to $ 1.5 million is contingent upon certain billing targets of Cloudpath products and services as well as the founder providing continuous service and is expected to be paid in the first quarter of 2018. To retain the services of former Cloudpath employees who became employees of the Company, the Company agreed to $ 0.9 million in cash incentives, which vest and are paid over a two -year period, and granted 195,705 RSUs under the Company’s Amended and Restated 2012 Equity Incentive Plan. The fair value of the equity awards of $2.3 million will be recognized over a four -year requisite service period. As the cash incentives are subject to continued employment, they will be recorded as post-acquisition compensation expense. The Company recorded post-acquisition compensation expense of $1.3 million related to Cloudpath founders and former employees for the year ended December 31, 2015 . Acquisition related costs were not material for the year ended December 31, 2015. Pro forma results of operations for the Cloudpath acquisition have not been presented because they are not material to the consolidated statements of operations.

GOODWILL AND INTANGIBLES ASSE27

GOODWILL AND INTANGIBLES ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Goodwill consisted of the following (in thousands): Amount December 31, 2014 and 2013 $ 9,945 Goodwill from the acquisition of Cloudpath 6,445 December 31, 2015 $ 16,390
Schedule intangible assets	Intangible assets consisted of the following (in thousands, except years): Gross Carrying Accumulated Net Weighted December 31, 2015 Purchased technology $ 14,900 $ (8,159 ) $ 6,741 2.9 Customer relationships 1,600 (62 ) 1,538 4.8 Trade name 360 (14 ) 346 4.8 Total $ 16,860 $ (8,235 ) $ 8,625 December 31, 2014 Purchased technology $ 12,600 $ (5,249 ) $ 7,351 2.8
Estimated future amortization of purchased intangible assets	The following table presents the estimated future amortization expense of intangible assets as of December 31, 2015 (in thousands): Year ending December 31, Amount 2016 $ 3,383 2017 2,352 2018 1,352 2019 852 2020 686 Total amortization $ 8,625

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment consisted of the following (in thousands, except estimated useful lives): December 31, Estimated Useful Lives 2015 2014 Computer hardware 3 years $ 15,310 $ 11,167 Computer software 3 years 7,839 4,070 Machinery, equipment and tooling 2 to 3 years 13,661 10,800 Furniture and fixtures 7 years 1,934 1,584 Leasehold improvements 3 to 10 years 5,201 3,911 Total property and equipment 43,945 31,532 Less: accumulated depreciation and amortization (24,534 ) (17,896 ) Total property and equipment, net $ 19,411 $ 13,636

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2015
Deferred Revenue Disclosure [Abstract]
Schedule of deferred revenue	Deferred revenue consisted of the following (in thousands): December 31, 2015 2014 Product $ 15,170 $ 22,900 Service 35,956 26,885 Total deferred revenue $ 51,126 $ 49,785 Reported as: Current $ 36,602 $ 39,231 Non-current 14,524 10,554 Total deferred revenue $ 51,126 $ 49,785

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum lease payment under non-cancelable operating leases	Future minimum lease payments under non-cancelable operating leases are as follows (in thousands): Years ending December 31, Amount 2016 $ 4,942 2017 4,418 2018 3,476 2019 2,570 2020 2,496 Thereafter 4,993 Operating lease obligations $ 22,895
Schedule of changes in warranty liability	The warranty liability is included as a component of accrued liabilities in the accompanying consolidated balance sheets. Changes in the warranty liability were as follows (in thousands): Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 803 $ 1,038 $ 725 Changes in existing warranty 80 (216 ) (41 ) Warranty expense 892 955 1,528 Obligations fulfilled (691 ) (974 ) (1,174 ) Balance at end of year $ 1,084 $ 803 $ 1,038

EQUITY AWARD PLAN (Tables)

EQUITY AWARD PLAN (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock options outstanding	The following table summarizes the outstanding stock option activity (in thousands, except per share amounts and years): Options Outstanding Number of Weighted Weighted Aggregate Balance, December 31, 2014 17,042 $ 5.60 6.7 $ 119,782 Options granted 340 11.17 Options exercised (2,888) 2.73 Options forfeited (747) 10.50 Balance, December 31, 2015 13,747 $ 6.08 5.7 $ 76,742 Options exercisable as of December 31, 2015 11,467 $ 4.87 5.2 $ 74,238 Options vested and expected to vest as of December 31, 2015 13,679 $ 6.04 5.7 $ 76,715
Summary of restricted stock units outstanding	The following table summarizes the outstanding activity of RSUs (in thousands, except per share amounts and years): RSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Aggregate Intrinsic Value Balance, December 31, 2014 2,825 $ 13.65 1.7 $ 33,955 RSUs granted 2,749 11.41 RSUs vested (874 ) 13.94 RSUs forfeited (423 ) 13.37 Balance, December 31, 2015 4,277 $ 12.17 1.7 $ 45,794
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 2012 Plan as of December 31, 2015 (in thousands): Number of Balance, December 31, 2014 9,398 Additional shares reserved for issuance 4,256 Options granted (340 ) Options forfeited 747 RSUs granted (2,749 ) RSUs forfeited 423 Balance, December 31, 2015 11,735
Summary of stock options, valuation assumptions	The following table summarizes the weighted average assumptions relating to the Company’s stock options: Years Ended December 31, 2015 2014 2013 Volatility 54.9 % 60.7 % 67.4 % Expected term (years) 5.7 6.1 6.1 Risk-free interest rate 1.8 % 1.9 % 1.9 % Dividend yield — — —
Summary of Employee Stock Purchase Plan, valuation assumptions	The following table summarizes the weighted average assumptions relating to the Company’s ESPP: Years Ended December 31, 2015 2014 Volatility 45.3 % 40.2 % Expected term (years) 0.7 0.7 Risk-free interest rate 0.4 % 0.1 % Dividend yield — —
Schedule of allocation of stock-based compensation expense	The following table summarizes the stock-based compensation expense recorded in the consolidated statements of operations (in thousands): Years Ended December 31, 2015 2014 2013 Cost of revenue $ 1,097 $ 1,092 $ 818 Research and development 9,759 9,099 6,738 Sales and marketing 7,252 7,180 4,922 General and administrative 10,685 9,223 6,637 Total stock-based compensation expense 28,793 26,594 19,115 Tax benefit from stock-based compensation (618 ) (688 ) (1,535 ) Total stock-based compensation expense, net of tax effect $ 28,175 $ 25,906 $ 17,580

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of calculation of basic and diluted net income (loss) per share	Years Ended December 31, 2015 2014 2013 Numerator: Net income $ 4,690 $ 8,190 $ 1,789 Denominator: Weighted-average shares used in computing basic net income per share 87,418 82,908 76,744 Weighted-average effect of potentially dilutive shares: Stock options 7,944 10,538 16,442 RSUs and ESPP 489 222 175 Diluted 95,851 93,668 93,361 Net income per share: Basic $ 0.05 $ 0.10 $ 0.02 Diluted $ 0.05 $ 0.09 $ 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): Years Ended December 31, 2015 2014 2013 Stock options 3,505 2,649 1,134 RSUs and ESPP 993 977 233 Total 4,498 3,626 1,367

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of domestic and foreign components of income (loss) before provision for income taxes	The domestic and foreign components of income (loss) before the provision for income taxes for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands): Years Ended December 31, 2015 2014 2013 Domestic $ 5,900 $ 13,107 $ (1,015 ) Foreign 1,701 1,023 905 Total $ 7,601 $ 14,130 $ (110 )
Schedule of provision (benefit) for income taxes	During the years ended December 31, 2015, 2014 and 2013, the Company’s income tax expense (benefit) was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Current expense: Federal $ 6,994 $ 8,224 $ 1,880 State 58 999 143 Foreign 1,341 1,257 1,006 Total current expense 8,393 10,480 3,029 Deferred benefit: Federal (4,527 ) (2,936 ) (3,445 ) State (734 ) (1,259 ) (1,172 ) Foreign (221 ) (345 ) (311 ) Total deferred benefit (5,482 ) (4,540 ) (4,928 ) Total income tax expense (benefit) $ 2,911 $ 5,940 $ (1,899 )
Schedule of effective income tax rate reconciliation	The difference between the income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate to the income (loss) before income taxes is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Federal statutory rate $ 2,660 $ 4,945 $ (38 ) State taxes, net of federal income tax benefit 378 602 86 Non-deductible expenses 363 246 209 Stock-based compensation 1,498 2,209 1,535 Acquisition cost 104 — 110 Foreign tax deduction (142 ) (153 ) (101 ) Tax credits (2,246 ) (2,502 ) (4,020 ) Foreign tax rate differential 407 393 324 Deferred rent (219 ) — — Other items not individually material 108 200 (4 ) Total income tax expense (benefit) $ 2,911 $ 5,940 $ (1,899 )
Schedule of components of deferred tax assets and liabilities	Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of December 31, 2015 2014 Deferred tax assets: Accruals and reserves $ 4,056 $ 2,645 Tax credits 5,455 4,416 Fixed assets and intangibles, other than goodwill 851 3,913 Net operating losses 1,246 1,426 Stock-based compensation 13,850 11,023 Deferred revenue 3,606 2,560 Other 2,392 2,177 Total deferred tax assets 31,456 28,160 Deferred tax liabilities Intangible assets (595 ) (850 ) Goodwill (755 ) (535 ) Net deferred tax assets $ 30,106 $ 26,775 As reported: Current deferred tax asset $ — $ 6,205 Non-current deferred tax assets 30,217 21,166 Non-current deferred tax liabilities (111 ) (596 ) Net deferred tax assets $ 30,106 $ 26,775
Schedule of unrecognized tax benefits roll forward	A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 is as follows (in thousands): As of December 31, 2015 2014 2013 Balance at beginning of year $ 3,252 $ 2,397 $ 836 Additions related to current year tax positions 1,270 858 1,394 Additions related to prior year tax positions — — 167 Reductions related to prior year tax positions — (3 ) — Balance at end of year $ 4,522 $ 3,252 $ 2,397

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of total revenue by geographic region	The following presents total revenue by geographic region (in thousands): Years Ended December 31, 2015 2014 2013 Americas: United States $ 180,067 $ 159,548 $ 118,333 Other Americas 14,953 9,670 12,604 Total Americas 195,020 169,218 130,937 EMEA: United Kingdom 29,891 24,715 28,129 Other EMEA 67,565 59,351 43,884 Total EMEA 97,456 84,066 72,013 APAC: Total APAC 80,900 73,635 60,117 Total revenue $ 373,376 $ 326,919 $ 263,067

DESCRIPTION OF BUSINESS AND S35

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concentration of Credit Risk and Significant Customers) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues | Distributor A
Revenue, Major Customer
Significant customer, as a percentage	14.40%	14.80%	15.20%
Revenues | Distributor B
Revenue, Major Customer
Significant customer, as a percentage	12.30%	12.50%	12.40%
Revenues | Distributor C
Revenue, Major Customer
Significant customer, as a percentage		10.90%
Accounts Receivables | Distributor C
Revenue, Major Customer
Significant customer, as a percentage	20.30%	12.50%

DESCRIPTION OF BUSINESS AND S36

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of the year	$ 800	$ 400	$ 140
Provision for doubtful accounts	227	400	911
Write-offs	(227)	0	(651)
Balance at end of the year	$ 800	$ 800	$ 400

DESCRIPTION OF BUSINESS AND S37

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Accounting Policies [Abstract]
Capitalized Computer Software, Gross	$ 3.9

FAIR VALUE DISCLOSURE (Details)

FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Total assets measured and recorded at fair value	$ 173,864	$ 148,477
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	99,747	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	22,055	24,383
US Treasury Bill Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	38,989
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value	13,073	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	52,062	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 | US Treasury Bill Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	38,989
Level 1 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents, at fair value	13,073	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	121,802	145,706
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	99,747	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	22,055	24,383
Level 2 | US Treasury Bill Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	0
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 | US Treasury Bill Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments, at fair value	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	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities
Amortized Cost	$ 161,091	$ 142,862
Unrealized Gains	2	4
Unrealized Losses	(302)	(160)
Fair Value	160,791	142,706
Corporate debt securities
Schedule of Available-for-sale Securities
Amortized Cost	99,916	118,470
Unrealized Gains	2
Unrealized Losses	(171)	(147)
Fair Value	99,747	118,323
US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities
Amortized Cost	22,100	24,392
Unrealized Gains		4
Unrealized Losses	(45)	(13)
Fair Value	22,055	$ 24,383
US Treasury Bill Securities
Schedule of Available-for-sale Securities
Amortized Cost	39,075
Unrealized Losses	(86)
Fair Value	$ 38,989

INVESTMENTS (Investment Maturit

INVESTMENTS (Investment Maturities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Amortized cost, one year or less	$ 105,266	$ 114,231
Amortized Cost, over one year and less than two years	55,825	28,631
Amortized Cost	161,091	142,862
Fair value, one year or less	105,150	114,113
Fair value. over one year and less than two years	55,641	28,593
Fair Value	$ 160,791	$ 142,706

INVESTMENTS (Continuous Unreali

INVESTMENTS (Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	$ 141,413	$ 120,960
Less than 12 months, Unrealized Loss	(302)	(160)
Corporate debt securities
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	80,369	105,187
Less than 12 months, Unrealized Loss	(171)	(147)
US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	22,055	15,773
Less than 12 months, Unrealized Loss	(45)	(13)
US Treasury Bill Securities
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	38,989	0
Less than 12 months, Unrealized Loss	$ (86)	$ 0

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	Oct. 21, 2015	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Post business combination contingent cash compensation	$ 9,000
Restricted Stock or Unit Expense		$ 1
Purchase Allocation
Goodwill		$ 16,390	$ 9,945
Noncurrent deferred tax liabilities	(1,813)
Other liabilities assumed	(510)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	4,260
Minimum
Business Acquisition [Line Items]
Vesting period for equity awards		1 year
Maximum
Business Acquisition [Line Items]
Vesting period for equity awards		4 years
Cloudpath Networks, Inc. [Member]
Business Acquisition [Line Items]
Consideration transferred subject to adjustments	$ 1,400
Vesting and payout frequency for additional consideration	6 months
Vesting and payout period for additional consideration	2 years
Post business combination cash incentive	$ 900
Period to earn cash incentive	2 years
Restricted Stock or Unit Expense	$ 2,300
Compensation costs related to acquisition		$ 1,300
Purchase Allocation
Cash and cash equivalents	431
Other tangible assets	416
Other liabilities assumed	(229)
Total purchase consideration	$ 9,000
Cloudpath Networks, Inc. [Member] | Restricted Stock Units (RSUs)
Business Acquisition [Line Items]
Business combination, Restricted Stock Units	195,705
Requisite period	4 years
Developed Technology Rights [Member]
Purchase Allocation
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	$ 2,300
Customer Relationships [Member]
Purchase Allocation
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	1,600
Trade Names [Member]
Purchase Allocation
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	360
Goodwill [Member]
Purchase Allocation
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	6,445
Services [Member]
Business Acquisition [Line Items]
Post business combination contingent cash compensation	7,500
Cloudpath Networks, Inc. [Member]
Business Acquisition [Line Items]
Post business combination contingent cash compensation	$ 1,500

GOODWILL AND INTANGIBLES ASSE43

GOODWILL AND INTANGIBLES ASSETS (Goodwill) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Goodwill [Roll Forward]
Goodwill, beginning	$ 9,945
Goodwill from the acquisition of Cloudpath	6,445
Goodwill, ending	$ 16,390

GOODWILL AND INTANGIBLES ASSE44

GOODWILL AND INTANGIBLES ASSETS (Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Oct. 21, 2015
Schedule of Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 16,860
Accumulated amortization	(8,235)
Finite-lived intangible assets, net	8,625
Intangible assets, net	8,625	$ 7,351
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets				$ 4,260
Developed Technology Rights [Member]
Schedule of Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets				2,300
Purchased technology
Schedule of Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	14,900	12,600
Accumulated amortization	(8,159)	(5,249)
Finite-lived intangible assets, net	$ 6,741	$ 7,351
Weighted average remaining useful life	2 years 10 months 24 days	2 years 9 months 18 days
Amortization of Intangible Assets	$ 3,000	$ 2,300	$ 1,300
Customer Relationships [Member]
Schedule of Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,600
Accumulated amortization	(62)
Finite-lived intangible assets, net	$ 1,538
Weighted average remaining useful life	4 years 9 months 18 days
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets				1,600
Trade Names [Member]
Schedule of Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 360
Accumulated amortization	(14)
Finite-lived intangible assets, net	$ 346
Weighted average remaining useful life	4 years 9 months 18 days
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets				$ 360

GOODWILL AND INTANGIBLES ASSE45

GOODWILL AND INTANGIBLES ASSETS (Future Amortization Expense) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Estimated Future Amortization Expense By Fiscal Year Maturity
2,016	$ 3,383
2,017	2,352
2,018	1,352
2,019	852
2,020	686
Finite-lived intangible assets, net	$ 8,625

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment
Property and equipment, gross	$ 43,945	$ 31,532
Less: accumulated depreciation and amortization	(24,534)	(17,896)
Property and equipment, net	$ 19,411	13,636
Computer hardware
Property and Equipment
Property, Plant and Equipment, Useful Life	3 years
Property and equipment, gross	$ 15,310	11,167
Computer software
Property and Equipment
Property, Plant and Equipment, Useful Life	3 years
Property and equipment, gross	$ 7,839	4,070
Machinery, equipment and tooling
Property and Equipment
Property and equipment, gross	$ 13,661	10,800
Furniture and fixtures
Property and Equipment
Property, Plant and Equipment, Useful Life	7 years
Property and equipment, gross	$ 1,934	1,584
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 5,201	$ 3,911
Minimum | Machinery, equipment and tooling
Property and Equipment
Property, Plant and Equipment, Useful Life	2 years
Minimum | Leasehold improvements
Property and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum | Machinery, equipment and tooling
Property and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum | Leasehold improvements
Property and Equipment
Property, Plant and Equipment, Useful Life	10 years

PROPERTY AND EQUIPMENT (Deprec

PROPERTY AND EQUIPMENT (Depreciation) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation and amortization of property and equipment	$ 8.6	$ 7.3	$ 5.3

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 51,126	$ 49,785
Current	36,602	39,231
Noncurrent	14,524	10,554
Product
Deferred Revenue Arrangement [Line Items]
Deferred revenue	15,170	22,900
Services
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 35,956	$ 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 CONTINGENCIES49

COMMITMENTS AND CONTINGENCIES (Operating Leases, Purchase Commitments, and Litigation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Rent Expense	$ 4,900	$ 4,700	$ 4,400
Operating Leases, Future Minimum Payments [Abstract]
2,016	4,942
2,017	4,418
2,018	3,476
2,019	2,570
2,020	2,496
Thereafter	4,993
Operating lease obligation	22,895
Gain on settlement of several patent litigation claims	1,600	$ 800
Current purchase commitments	$ 10,300

COMMITMENTS AND CONTINGENCIES50

COMMITMENTS AND CONTINGENCIES (Product Liabilities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning warranty liability	$ 803	$ 1,038	$ 725
Changes in existing warranty	80	(216)	(41)
Warranty expense	892	955	1,528
Obligations fulfilled	691	(974)	(1,174)
Ending warranty liability	$ 1,084	$ 803	$ 1,038
Hardware other than Indoor WLAN Products
Product Liability Contingency [Line Items]
Standard product warranty term	1 year

EQUITY AWARD PLAN (Stock Option

EQUITY AWARD PLAN (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Beginning balance (shares)	17,042
Options granted (shares)	340
Options exercised (shares)	(2,888)
Options forfeited (shares)	(747)
Ending balance (shares)	13,747	17,042
Options exercisable (shares)	11,467
Options vested and expected to vest (shares)	13,679
Weighted Average Exercise Price
Options outstanding (in dollars per share)	$ 6.08	$ 5.60
Options granted (in dollars per share)	11.17
Options exercised (in dollars per share)	2.73
Options forfeited (in dollars per share)	10.50
Options exercisable (in dollars per share)	4.87
Options vested and expected to vest (in dollars per share)	$ 6.04
Weighted Average Remaining Contractual Life
Weighted Average Remaining Contractual Life	5 years 8 months 12 days	6 years 7 months 43 days
Options exercisable	5 years 2 months 12 days
Options vested and expected to vest	5 years 8 months 12 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 76,742	$ 119,782
Options exercisable	74,238
Options vested and expected to vest	$ 76,715
Weighted average grant date fair value (in dollars per share)	$ 5.73	$ 7.42	$ 10.33
Total intrinsic value of options exercised	$ 25,300	$ 39,000	$ 74,100

EQUITY AWARD PLAN (Restricted S

EQUITY AWARD PLAN (Restricted Stock Units Activity) (Details) - RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Beginning balance (shares)	2,825
RSUs granted (shares)	2,749
RSUs exercised (shares)	(874)
RSUs forfeited (shares)	(423)
Ending balance (shares)	4,277	2,825
Weighted-Average Grant- Date Fair Value Per Share
RSUs outstanding (in dollars per share)	$ 13.65
RSUs granted (in dollars per share)	11.41	$ 12.70	$ 17.10
RSUs vested (in dollars per share)	13.94
RSUs forfeited (in dollars per share)	13.37
RSUs outstanding (in dollars per share)	$ 12.17	$ 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	$ 45,794	$ 33,955
Fair value of RSUs vested	$ 12,200	$ 4,200	$ 0

EQUITY AWARD PLAN (Stock Activi

EQUITY AWARD PLAN (Stock Activity and Number of Shares Available for Grant) (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2015shares
Shares Available for Grant
Beginning balance (shares)	9,398
Additional shares reserved for issuance (shares)	4,256
Ending balance (shares)	11,735
Stock Options
Shares Available for Grant
Options granted (shares)	(340)
Options forfeited (shares)	747
RSU
Shares Available for Grant
RSUs granted (shares)	(2,749)
RSUs forfeited (shares)	423

EQUITY AWARD PLAN (Assumptions)

EQUITY AWARD PLAN (Assumptions) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Volatility	54.90%	60.70%	67.40%
Expected term (years)	5 years 8 months 12 days	6 years 28 days	6 years 28 days
Risk-free interest rate	1.80%	1.90%	1.90%
Dividend yield	0.00%	0.00%	0.00%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award
Volatility	45.30%	40.20%
Expected term (years)	8 months 12 days	8 months 12 days
Risk-free interest rate	0.40%	0.10%
Dividend yield	0.00%	0.00%

EQUITY AWARD PLAN (Stock-based

EQUITY AWARD PLAN (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	$ 28,793	$ 26,594	$ 19,115
Tax benefit from stock-based compensation	(618)	(688)	(1,535)
Total stock-based compensation, net of tax effect	28,175	25,906	17,580
Compensation cost not yet recognized	$ 60,900
Compensation cost not yet recognized, period for recognition	2 years 8 months 12 days
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	$ 1,097	1,092	818
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	9,759	9,099	6,738
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	7,252	7,180	4,922
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Total stock-based compensation	$ 10,685	$ 9,223	$ 6,637

EQUITY AWARD PLAN (Additional I

EQUITY AWARD PLAN (Additional Information) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award
Shares reserved for future issuance	29,800,000	29,300,000
Offering period	1 year
Purchase period	6 months
rkus:ShareBasedCompensationArrangementByShare BasedPaymentAwardMaximumSharesPerEmployeeValue	$ 25,000
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee	2,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans	473,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period for equity awards	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period for equity awards	4 years
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Expiration period	10 years
Shares reserved for future issuance	32,000,000
Increase in number of shares reserved for issuance on the first day of fiscal year, as a percentage of shares of common stock on the last day of preceding fiscal year	5.00%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award
Share based payment award, maximum percentage of employees' compensation	15.00%
Purchase price of common stock, as a percent	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	5,000,000	3,800,000
Average exercise price	$ 9.34	$ 8.91
ESPP | Scenario One [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Increase in number of shares reserved for issuance on the first day of fiscal year, as a percentage of shares of common stock on the last day of preceding fiscal year	2.00%
ESPP | Scenario Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Common Stock, Increase In Capital Shares Reserved For Future Issuance In Period, Shares	3,000,000

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	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net income	$ 4,690	$ 8,190	$ 1,789
Denominator:
Basic (in shares)	87,418	82,908	76,744
Weighted-average effect of potentially dilutive shares:
Employee stock options	7,944	10,538	16,442
RSUs and ESPP	489	222	175
Diluted (in shares)	95,851	93,668	93,361
Net income per share of common stock:
Basic (USD per share)	$ 0.05	$ 0.10	$ 0.02
Diluted (USD per share)	$ 0.05	$ 0.09	$ 0.02

EARNINGS PER SHARE (Antidilutiv

EARNINGS PER SHARE (Antidilutive Securities) (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	4,498	3,626	1,367
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	3,505	2,649	1,134
RSUs and ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares excluded from the diluted per share calculation	993	977	233

INCOME TAXES (Domestic and Fore

INCOME TAXES (Domestic and Foreign Components of Income (Loss)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Domestic and Foreign Components of Income (Loss) Before Provision for Income Taxes
Domestic	$ 5,900	$ 13,107	$ (1,015)
Foreign	1,701	1,023	905
Total	$ 7,601	$ 14,130	$ (110)

INCOME TAXES (Provision (Benefi

INCOME TAXES (Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current expense:
Federal	$ 6,994	$ 8,224	$ 1,880
State	58	999	143
Foreign	1,341	1,257	1,006
Total current expense	8,393	10,480	3,029
Deferred (benefit) expense:
Federal	(4,527)	(2,936)	(3,445)
State	(734)	(1,259)	(1,172)
Foreign	(221)	(345)	(311)
Total deferred (benefit) expense	(5,482)	(4,540)	(4,928)
Total income tax expense (benefit)	$ 2,911	$ 5,940	$ (1,899)
Total income tax expense (benefit)	1.2

INCOME TAXES (Effective Income

INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal statutory rate	$ 2,660	$ 4,945	$ (38)
State taxes, net of federal income tax benefit	378	602	86
Non-deductible expenses	363	246	209
Stock-based compensation	1,498	2,209	1,535
Acquisition cost	104	0	110
Foreign tax deduction	(142)	(153)	(101)
Tax credits	(2,246)	(2,502)	(4,020)
Foreign tax rate differential	407	393	324
Deferred rent	(219)	0	0
Other items not individually material	108	200	(4)
Total income tax expense (benefit)	$ 2,911	$ 5,940	$ (1,899)

INCOME TAXES (Components of Def

INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Accruals and reserves	$ 4,056	$ 2,645
Tax credits	5,455	4,416
Fixed assets and intangibles, other than goodwill	851	3,913
Net operating losses	1,246	1,426
Stock-based compensation	13,850	11,023
Deferred revenue	3,606	2,560
Other	2,392	2,177
Total deferred tax assets	31,456	28,160
Deferred tax liabilities
Intangible other than goodwill	(595)	(850)
Goodwill	(755)	(535)
Net deferred tax assets	30,106	26,775
As reported:
Current deferred tax asset	0	6,205
Non-current deferred tax assets	30,217	21,166
Non-current deferred tax liabilities	(111)	(596)
Net deferred tax assets	$ 30,106	$ 26,775

INCOME TAXES (Operating Loss Ca

INCOME TAXES (Operating Loss Carryforwards) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operating Loss Carryforwards [Line Items]
Non-current deferred tax asset	$ 30,217	$ 21,166
Unrecognized tax benefits	4,522	$ 3,252	$ 2,397	$ 836
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	30,700
Federal | Additional Paid-in Capital [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	30,700
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	52,200
State | Additional Paid-in Capital [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	34,200
Tax Credit Carryforward, Amount	100
Foreign
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	3,200
Foreign | Additional Paid-in Capital [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	1,900
Research Tax Credit Carryforward | Federal
Operating Loss Carryforwards [Line Items]
Tax Credit Carryforward, Amount	5,500
Research Tax Credit Carryforward | State
Operating Loss Carryforwards [Line Items]
Tax Credit Carryforward, Amount	10,500
Research Tax Credit Carryforward | Foreign
Operating Loss Carryforwards [Line Items]
Tax Credit Carryforward, Amount	$ 500

INCOME TAXES (Tax Credit Carryf

INCOME TAXES (Tax Credit Carryforwards and Income Tax Uncertainties) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Tax Credit Carryforward [Line Items]
Unrecognized tax benefits	$ 4,522	$ 3,252	$ 2,397	$ 836
Unrecognized tax benefits that would impact effective tax rate	3,700
Federal | Research Tax Credit Carryforward
Tax Credit Carryforward [Line Items]
Tax Credit Carryforward, Amount	5,500
State | Research Tax Credit Carryforward
Tax Credit Carryforward [Line Items]
Tax Credit Carryforward, Amount	10,500
Foreign | Research Tax Credit Carryforward
Tax Credit Carryforward [Line Items]
Tax Credit Carryforward, Amount	$ 500

INCOME TAXES (Unrecognized Tax

INCOME TAXES (Unrecognized Tax Benefits Roll Forward) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Balance at beginning of year	$ 3,252	$ 2,397	$ 836
Increases related to current year tax positions	1,270	858	1,394
Increases related to prior year tax positions	0	0	167
Reductions related to prior year tax positions	0	(3)	0
Balance at end of year	$ 4,522	$ 3,252	$ 2,397

EMPLOYEE SAVINGS AND RETIREME66

EMPLOYEE SAVINGS AND RETIREMENT PLAN (Details)	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Maximum Annual Contribution per Employee	100.00%

WORKFORCE REORGANIZATION (Detai

WORKFORCE REORGANIZATION (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Restructuring Cost and Reserve
Restructuring Costs	$ 1.1
Contract Termination
Restructuring Cost and Reserve
Restructuring Costs	0.5
Special Termination Benefits
Restructuring Cost and Reserve
Restructuring Costs	$ 0.6

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)segmentemployeeactivity	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
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 and Long-Lived Assets
Revenue	$ 373,376	$ 326,919	$ 263,067
United States
Revenues from External Customers and Long-Lived Assets
Revenue	180,067	159,548	118,333
Other Americas
Revenues from External Customers and Long-Lived Assets
Revenue	14,953	9,670	12,604
Americas
Revenues from External Customers and Long-Lived Assets
Revenue	195,020	169,218	130,937
United Kingdom
Revenues from External Customers and Long-Lived Assets
Revenue	29,891	24,715	28,129
Other EMEA
Revenues from External Customers and Long-Lived Assets
Revenue	67,565	59,351	43,884
EMEA
Revenues from External Customers and Long-Lived Assets
Revenue	97,456	84,066	72,013
APAC
Revenues from External Customers and Long-Lived Assets
Revenue	$ 80,900	$ 73,635	$ 60,117

SEGMENT INFORMATION (Property,

SEGMENT INFORMATION (Property, Plant, and Equipment by Geographic Region) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information
Property and equipment, net	$ 19,411	$ 13,636
Americas
Segment Reporting Information
Property and equipment, net	$ 14,000
APAC
Segment Reporting Information
Property and equipment, net		$ 4,800
EMEA
Segment Reporting Information
Property and equipment, net			$ 500