Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CASA | |
Entity Registrant Name | Casa Systems Inc | |
Entity Central Index Key | 0001333835 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-38324 | |
Entity Tax Identification Number | 75-3108867 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 100 Old River Road | |
Entity Address, City or Town | Andover | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01810 | |
City Area Code | 978 | |
Local Phone Number | 688-6706 | |
Entity Common Stock, Shares Outstanding | 83,040,053 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 134,752 | $ 113,638 |
Accounts receivable, net of provision for doubtful accounts of $22 and $20 as of March 31, 2020 and December 31, 2019, respectively | 55,013 | 93,100 |
Inventory | 81,014 | 93,604 |
Prepaid expenses and other current assets | 7,239 | 4,884 |
Prepaid income taxes | 9,663 | 3,217 |
Total current assets | 287,681 | 308,443 |
Property and equipment, net | 34,231 | 35,910 |
Accounts receivable, net of current portion | 522 | 575 |
Deferred tax assets | 319 | 69 |
Goodwill | 50,347 | 50,347 |
Intangible assets, net | 39,721 | 41,148 |
Other assets | 6,037 | 7,820 |
Total assets | 418,858 | 444,312 |
Current liabilities: | ||
Accounts payable | 17,622 | 25,890 |
Accrued expenses and other current liabilities | 26,120 | 34,567 |
Accrued income taxes | 110 | |
Deferred revenue | 18,850 | 25,485 |
Current portion of long-term debt, net of unamortized debt issuance costs | 8,449 | 8,524 |
Total current liabilities | 71,151 | 94,466 |
Accrued income taxes, net of current portion | 10,667 | 12,381 |
Deferred tax liabilities | 9,166 | 8,993 |
Deferred revenue, net of current portion | 4,149 | 4,583 |
Long-term debt, net of current portion and unamortized debt issuance costs | 284,282 | 284,756 |
Other liabilities, net of current portion | 522 | 569 |
Total liabilities | 379,937 | 405,748 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized as of March 31, 2020 and December 31, 2019; no shares issued and outstanding as of March 31, 2020 and December 31, 2019 | ||
Common stock, $0.001 par value; 500,000 shares authorized as of March 31, 2020 and December 31, 2019; 84,726 and 84,333 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 85 | 84 |
Treasury stock, at cost; 1,711 and 495 shares at March 31, 2020 and December 31, 2019, respectively | (4,793) | (1,795) |
Additional paid-in capital | 171,914 | 169,561 |
Accumulated other comprehensive loss | (2,383) | (2,222) |
Accumulated deficit | (125,902) | (127,064) |
Total stockholders’ equity | 38,921 | 38,564 |
Total liabilities and stockholders’ equity | $ 418,858 | $ 444,312 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Provision for doubtful accounts | $ 22 | $ 20 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 84,726,000 | 84,333,000 |
Common stock, shares outstanding | 84,726,000 | 84,333,000 |
Treasury stock, shares | 1,711,000 | 495,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 83,623 | $ 35,486 |
Cost of revenue: | ||
Total cost of revenue | 40,970 | 10,989 |
Gross profit | 42,653 | 24,497 |
Operating expenses: | ||
Research and development | 21,211 | 18,405 |
Selling, general and administrative | 24,991 | 20,193 |
Total operating expenses | 46,202 | 38,598 |
Loss from operations | (3,549) | (14,101) |
Other income (expense): | ||
Interest income | 406 | 1,652 |
Interest expense | (4,628) | (5,197) |
Gain (loss) on foreign currency, net | 152 | (92) |
Other income, net | 62 | 229 |
Total other income (expense), net | (4,008) | (3,408) |
Loss before benefit from income taxes | (7,557) | (17,509) |
Benefit from income taxes | (8,719) | (2,170) |
Net income (loss) | 1,162 | (15,339) |
Other comprehensive income (loss)—foreign currency translation adjustment, net of tax | (516) | 713 |
Other comprehensive income (loss)—gain on foreign currency hedge, net of tax | 356 | |
Comprehensive income (loss) | 1,002 | (14,626) |
Net income (loss) attributable to common stockholders: | ||
Basic and diluted | $ 1,162 | $ (15,339) |
Net income (loss) per share attributable to common stockholders: | ||
Basic | $ 0.01 | $ (0.18) |
Diluted | $ 0.01 | $ (0.18) |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: | ||
Basic | 83,990 | 83,323 |
Diluted | 85,009 | 83,323 |
Product | ||
Revenue: | ||
Total revenue | $ 73,758 | $ 26,653 |
Cost of revenue: | ||
Total cost of revenue | 39,644 | 9,429 |
Service | ||
Revenue: | ||
Total revenue | 9,865 | 8,833 |
Cost of revenue: | ||
Total cost of revenue | $ 1,326 | $ 1,560 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Balances at Dec. 31, 2018 | $ 74,856 | $ 83 | $ 156,939 | $ (1,158) | $ (81,008) | |
Balances, shares at Dec. 31, 2018 | 82,961 | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | 494 | $ 1 | 493 | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 773 | |||||
Foreign currency translation adjustment, net of tax | 713 | 713 | ||||
Effect of adopted accounting standards | 2,150 | 2,150 | ||||
Stock-based compensation | 2,560 | 2,560 | ||||
Net income (loss) | (15,339) | (15,339) | ||||
Balances at Mar. 31, 2019 | 65,434 | $ 84 | 159,992 | (445) | (94,197) | |
Balances, shares at Mar. 31, 2019 | 83,734 | |||||
Balances at Dec. 31, 2019 | $ 38,564 | $ 84 | 169,561 | (2,222) | (127,064) | |
Balances, shares at Dec. 31, 2019 | 84,333 | |||||
Balance Treasury, shares at Dec. 31, 2019 | 495 | 495 | ||||
Balance Treasury at Dec. 31, 2019 | $ 1,795 | $ (1,795) | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (147) | $ 1 | (148) | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 393 | |||||
Unrealized gain on cash flow hedges | 356 | 356 | ||||
Foreign currency translation adjustment, net of tax | (517) | (517) | ||||
Repurchases of treasury shares | (2,998) | $ (2,998) | ||||
Repurchases of treasury shares, shares | 1,216 | |||||
Stock-based compensation | 2,501 | 2,501 | ||||
Net income (loss) | 1,162 | 1,162 | ||||
Balances at Mar. 31, 2020 | $ 38,921 | $ 85 | $ 171,914 | $ (2,383) | $ (125,902) | |
Balances, shares at Mar. 31, 2020 | 84,726 | |||||
Balance Treasury, shares at Mar. 31, 2020 | 1,711 | 1,711 | ||||
Balance Treasury at Mar. 31, 2020 | $ 4,793 | $ (4,793) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Foreign currency translation adjustment, tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash flows provided by (used in) operating activities: | |||
Net income (loss) | $ 1,162 | $ (15,339) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,768 | 2,396 | |
Stock-based compensation | 2,437 | 1,900 | |
Deferred income taxes | (75) | (2,700) | |
Increase in provision for doubtful accounts | 2 | 1,255 | |
Excess and obsolete inventory valuation adjustment | 519 | (613) | |
Gain on disposal of assets | 10 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 38,021 | 25,289 | |
Inventory | 11,873 | (16,986) | |
Prepaid expenses and other assets | (231) | (1,721) | |
Prepaid income taxes | (6,446) | (1,245) | |
Accounts payable | (9,128) | 1,165 | |
Accrued expenses and other current liabilities | (8,204) | (8,171) | |
Accrued income taxes | (1,609) | 812 | |
Deferred revenue | (7,030) | 109 | |
Net cash provided by (used in) operating activities | 26,069 | (13,849) | |
Cash flows used in investing activities: | |||
Purchases of property and equipment | (390) | (1,835) | |
Net cash used in investing activities | (390) | (1,835) | |
Cash flows used in financing activities: | |||
Principal repayments of debt | (830) | (828) | |
Proceeds from exercise of stock options | 312 | 1,498 | |
Employee taxes paid related to net share settlement of equity awards | (459) | (1,004) | |
Payments of dividends and equitable adjustments | (176) | (761) | |
Repurchases of common stock | (2,998) | ||
Net cash used in financing activities | (4,151) | (1,095) | |
Effect of exchange rate changes on cash and cash equivalents | (408) | 609 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 21,120 | (16,170) | |
Cash, cash equivalents and restricted cash at beginning of period | 114,657 | 281,606 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 135,777 | 265,436 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 4,194 | 4,682 | |
Cash paid for income taxes | 189 | 683 | |
Supplemental disclosures of non-cash operating, investing and financing activities: | |||
Purchases of property and equipment included in accounts payable | 1,879 | 858 | |
Unpaid equitable adjustments included in accrued expenses and other current liabilities | 555 | 2,575 | |
Release of customer incentives included in accounts receivable and accrued expenses and other current liabilities | $ 5,389 | ||
Fair value of cash flow hedges | $ 356 | ||
[1] | See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these condensed consolidated statements of cash flows. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Casa Systems, Inc. (the “Company”) was incorporated under the laws of the State of Delaware on February 28, 2003. The Company is a global communications technology company headquartered in Andover, Massachusetts and has wholly owned subsidiaries in China, France, Canada, Ireland, Spain, Colombia, the Netherlands, Hong Kong, Australia, Germany, the United Kingdom and New Zealand. The Company offers converged solutions for next-generation centralized, distributed and virtualized architectures for cable broadband, fixed-line broadband and wireless networks. The Company’s solutions enable customers to cost-effectively and dynamically increase network speed, add bandwidth capacity and new services for consumers and enterprises, reduce network complexity and reduce operating and capital expenditures. The Company is subject to a number of risks similar to other companies of comparable size and other companies selling and providing services to the communications industry. These risks include, but are not limited to, the level of capital spending by the communications industry, a lengthy sales cycle, dependence on the development of new products and services, unfavorable economic and market conditions, risks associated with coronavirus (COVID-19), competition from larger and more established companies, limited management resources, dependence on a limited number of contract manufacturers and suppliers, the rapidly changing nature of the technology used by the communications industry and reliance on resellers and sales agents. Failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer or supplier requirements, changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of products could have a material adverse effect on the Company’s operating results, financial condition and cash flows. On July 1, 2019, the Company acquired 100% of the equity interests in NetComm Wireless Limited (“NetComm”) for cash consideration of $161,963 Australian dollars (“AUD”) ($112,674 United States dollars (“USD”)), based on an exchange rate of USD $0.700 per AUD $1.00 on July 1, 2019) (the “Acquisition”) The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the initial public offering, subject to specified conditions. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected not to “opt out” of such extended transition period, which means that when a standard is issued or revised, and it has different application dates for public or private companies, the Company will adopt the new or revised standard at the time private companies adopt the new or revised standard, provided that the Company continues to be an emerging growth company. The JOBS Act provides that the decision to take advantage of the extended transition period for complying with new or revised accounting standards is irrevocable. The accompanying condensed consolidated balance sheet as of March 31, 2020, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2020 and 2019, the condensed consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 and the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2020 and 2019 are unaudited. The financial data and other information disclosed in these notes related to the three months ended March 31, 2020 and 2019 are also unaudited. The accompanying condensed consolidated balance sheet as of December 31, 2019 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020 (the “Annual Report on Form 10-K”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K. There have been no material changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K that would have a material impact on the Company’s condensed consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and, in the opinion of management, include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations and cash flows to be anticipated for the full year ending December 31, 2020 or any future period. The accompanying condensed consolidated financial statements include the accounts and results of operations of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these condensed consolidated financial statements include revenue recognition, provision for doubtful accounts, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, recoverability of net deferred tax assets, valuations of uncertain tax positions, benefit from income taxes, warranty allowances, the valuation of equity instruments and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances existing at the time such estimates are made. The emergence of COVID-19 around the world, and particularly in the United States and China, presents various risks to the Company, not all of which the Company is able to fully evaluate or even to foresee at the current time, and could have a material effect upon the estimates and judgments relied upon by management in preparing these condensed consolidated financial statements. While the COVID-19 pandemic did not materially adversely affect the Company’s financial results and business operations in the quarter ended March 31, 2020, economic and health conditions in the United States and across most of the globe have changed rapidly since the end of the quarter. Globally, all aspects of the Company’s business remain fully operational, and it is working with its supply chain to ensure continued availability of all anticipated inventory requirements. The Company will continue to monitor its business very closely for any effects of COVID-19 for as long as necessary on an ongoing basis. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of March 31, 2020 and December 31, 2019, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash as of March 31, 2020 and December 31, 2019 consisted of a certificate of deposit of $1,025 and $1,019, respectively, pledged as collateral for a stand-by letter of credit required to support a contractual obligation. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2020 March 31, 2019 Cash and cash equivalents $ 134,752 $ 264,411 Restricted cash included in other assets 1,025 1,025 $ 135,777 $ 265,436 Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for customer contracts with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. In limited instances, for certain customers and/or for certain transactions, the Company provides extended payment terms that are considered significant financing components. These extended payment terms allow the customer to pay for the purchased equipment in monthly, other periodic or lump-sum payments over a period of one to five years. In certain circumstances, the receivables may be collateralized by the underlying assets over the payment period. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. Accounts receivable as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Current portion of accounts receivable, net: Accounts receivable, net $ 53,390 $ 91,273 Accounts receivable, extended payment terms 1,623 1,827 55,013 93,100 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 522 575 $ 55,535 $ 93,675 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customers, customer payment history, and other specific customer and transaction information. The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). As of March 31, 2020 and December 31, 2019, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2020 and 2019, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment terms. Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts, money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2020 2019 2020 2019 Customer A * 25 % * 11 % Customer B * * * 14 % Customer C * 12 % * * Customer D 12 % * 17 % 19 % Customer E 23 % * * * * Less than 10% of total Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. In addition, the Company primarily relies on two third parties to manufacture certain components of its products. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. Goodwill and Acquired Intangible Assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. Goodwill has been recorded in connection with the acquisition of NetComm on July 1, 2019 (refer to Note 3). The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. As of March 31, 2020, the Company considered potential impairment indicators of goodwill and noted no indicators of impairment. The Company performs its annual goodwill impairment test during its fourth quarter. For its annual goodwill impairment test, the Company operates under one reporting unit and the fair value of its reporting unit has been determined based on the Company’s enterprise value. As part of the annual goodwill impairment test, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary. Examples of events and circumstances that might indicate that the reporting unit’s fair value is less than its carrying amount include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of its qualitative assessment, it is more likely than not (i.e., greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from three to ten years. The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. The Company considered potential impairment indicators of acquired intangible assets at March 31, 2020 and noted no indicators of impairment. Derivative Instruments The Company has transactions and balances denominated in currencies other than the U.S. dollar. Most of these transactions or balances are denominated in Euros and Australian dollars. The Company has historically entered into foreign exchange contracts to reduce its exposure to currency fluctuations. Historically, these transactions have not qualified for hedge accounting. However, beginning in March 2020, the Company entered into two forward contracts to hedge against the impact of foreign currency fluctuations on certain forecasted operating expenses. These instruments qualified for hedge accounting as cash flow hedges, and were appropriately designated as such, thus permitting the application of special hedge accounting under ASC 815, Derivatives and Hedging, Impact In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) Impact of Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Codification Improvements to Topic 842: Leases Leases (Topic 842), Targeted Improvements Leases (Topic 842) – Narrow-Scope Improvements for Lessors . In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance intended to provide more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The main provisions include presenting financial assets measured at amortized cost at the amount expected to be collected, which is net of an allowance for expected credit losses, and recording credit losses related to available-for-sale securities through an allowance for credit losses. The effective dates for the amendments in ASU 2016-13 were updated in ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Other For further information with regard to the Company’s significant accounting policies, please refer to Note 2 “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019. |
Business Acquisition
Business Acquisition | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisition | 3. Business Acquisition On July 1, 2019, the Company acquired 100% of the equity interests in NetComm for cash consideration of $161,963 AUD ($112,674 USD, based on an exchange rate of USD $0.700 per AUD $1.00 on July 1, 2019) NetComm is a global leader in the development of fixed wireless and distribution point broadband solutions. With the Acquisition, the Company now offers a broad, highly competitive product portfolio for new 4G and 5G fixed wireless access products and customer premise equipment for vDSL2 and G.fast services for service providers. This factor contributed to a purchase price in excess of fair value of NetComm’s net tangible and intangible assets, leading to the recognition of goodwill. The total purchase price was preliminarily allocated to NetComm’s net tangible and intangible assets based upon their estimated fair values as of the date of Acquisition. NetComm’s cash and cash equivalents balance at the Acquisition date was $3,243; as such, total consideration net of cash acquired is $109,431. NetComm’s existing debt of approximately $3,507 as of the Acquisition date has been accounted for as an assumed liability. As of July 1, 2019, all contractual amounts receivable, which totaled $ 18,142 Preliminary Purchase Price Allocation Assets acquired Fair value of tangible assets: Accounts receivable $ 18,142 Inventory 24,138 Prepaid expenses and other current assets 2,240 Property, plant and equipment 8,010 Deferred tax assets 365 Other assets 13 Goodwill 50,347 Identifiable intangible assets 44,000 Total assets acquired $ 147,255 Liabilities assumed Accounts payable $ (9,719 ) Accrued expenses (13,178 ) Accrued income taxes (140 ) Deferred tax liabilities (10,791 ) Current portion of long-term debt (3,507 ) Other liabilities (489 ) Total liabilities assumed $ (37,824 ) Net assets acquired $ 109,431 The preliminary allocation of the purchase price and the estimated useful lives associated with certain assets is as follows : Amount Estimated Useful Life Net tangible assets $ 15,084 — Identifiable intangible assets: Developed technology 25,000 7 years Customer relationships 18,000 10 years Trade name 1,000 3 years Goodwill 50,347 — Total purchase price $ 109,431 Intangible assets of $44,000 have been allocated to identifiable intangible assets consisting of developed technology, amortized over seven years using a straight-line amortization method; customer relationships, amortized over ten years using a straight-line amortization method; and a trade name, amortized over three years using a straight-line amortization method. The weighted average life of the identifiable intangible assets recognized from the Acquisition was 8.2 years. The Acquisition accounting has resulted in goodwill of $50,347. Various factors contributed to the establishment of the goodwill, including: the strategic benefit of expanding the breadth of the Company’s product offerings; the value of NetComm’s highly trained work force; the expected revenue growth over time that is attributable to increased market penetration from future products and customers, and cross-selling by the sales force; and the synergies expected to result from reducing redundant infrastructure such as corporate costs and field operations. The goodwill acquired in the Acquisition is not deductible for tax purposes. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets There were no changes to goodwill during the three months ended March 31, 2020. Intangible assets, net consisted of the following at March 31, 2020 and December 31, 2019: Cost Accumulated amortization Net Balance Developed Technology $ 25,000 $ (2,679 ) $ 22,321 Customer Relationships 18,000 (1,350 ) 16,650 Trade Name 1,000 (250 ) 750 Totals as of March 31, 2020 $ 44,000 $ (4,279 ) $ 39,721 Cost Accumulated amortization Net Balance Developed Technology $ 25,000 $ (1,786 ) $ 23,214 Customer Relationships 18,000 (900 ) 17,100 Trade Name 1,000 (166 ) 834 Totals as of December 31, 2019 $ 44,000 $ (2,852 ) $ 41,148 As of March 31, 2020, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, 2020 $ 4,279 2021 5,704 2022 5,538 2023 5,371 2024 5,371 Thereafter 13,458 $ 39,721 The Company recorded amortization expense of $893 and $533 related to intangible assets, which were included in product cost of revenue and selling, general and administrative expense, respectively, for the three months ended March 31, 2020 in the condensed consolidated statements of operations and comprehensive income (loss). The Company recorded no amortization expense related to intangible assets for the three months ended March 31, 2019. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory as of March 31, 2020 and December 31, 2019 March 31, 2020 December 31, 2019 Raw materials $ 28,455 $ 24,000 Work in process — 17 Finished goods: Manufactured finished goods 57,838 70,923 Deferred inventory costs 836 4,263 87,129 99,203 Valuation allowance for excess and obsolete inventory (6,115 ) (5,599 ) $ 81,014 $ 93,604 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6 . Property and Equipment Property and equipment as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Computers and purchased software $ 22,127 $ 22,294 Leasehold improvements 4,384 4,380 Furniture and fixtures 2,965 2,794 Machinery and equipment 40,592 40,002 Land 3,091 3,091 Building 4,765 4,765 Building improvements 7,231 6,776 Trial systems at customers’ sites 5,816 6,039 90,971 90,141 Less: Accumulated depreciation and amortization (56,740 ) (54,231 ) $ 34,231 $ 35,910 During the three months ended March 31, 2020 and 2019, the Company transferred trial systems to inventory from property and equipment with values of $237 and $109, respectively, net of transfers of trial systems to cost of revenue. In addition, the Company transferred $9 and $(411) of equipment from (to) inventory into (from) property and equipment during the three months ended March 31, 2020 and 2019, respectively. D epreciation and amortization expense on property and equipment totaled $3,347 and $2,396 for the three months ended March 31, 2020 and 2019, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 7. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Accrued compensation and related taxes $ 12,735 $ 18,540 Accrued warranty 2,234 2,448 Dividends and equitable adjustments payable (see Note 12) 555 750 Accrued customer incentives 11 233 Other accrued expenses 10,585 12,596 $ 26,120 $ 34,567 Accrued Warranty Substantially all of the Company’s products are covered by warranties for software and hardware for periods ranging from 90 days to one year. In addition, in conjunction with customers’ renewals of maintenance and support contracts, the Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. In the event of a failure of a hardware product or software covered by these warranties, the Company must repair or replace the software or hardware or, if those remedies are insufficient, and at the discretion of the Company, provide a refund. The Company’s warranty reserve, which is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets, reflects estimated material, labor and other costs related to potential or actual software and hardware warranty claims for which the Company expects to incur an obligation. The Company’s estimates of anticipated rates of warranty claims and the costs associated therewith are primarily based on historical information and future forecasts. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. A summary of changes in the amount reserved for warranty costs for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31, 2020 2019 Warranty reserve at beginning of period $ 2,448 $ 926 Provisions 550 525 Charges (764 ) (574 ) Warranty reserve at end of period $ 2,234 $ 877 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1— Quoted prices in active markets for identical assets and liabilities. Level 2— Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities at the measurement date; quoted prices in markets that are not active for identical or similar assets and liabilities; or other inputs that are observable or can be corroborated by observable market data. Level 3— Unobservable inputs that involve management judgment and are supported by little or no market activity, including pricing models, discounted cash flow methodologies and similar techniques. The following tables present information about the fair value of the Company’s financial assets and liabilities as of March 31, 2020 and December 31, 2019 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,025 $ — $ 1,025 Money market mutual funds 60,735 — — 60,735 Foreign currency forward contracts — 356 — 356 $ 60,735 $ 1,381 $ — $ 62,116 Liabilities: SARs $ — $ — $ 199 $ 199 $ — $ — $ 199 $ 199 Fair Value Measurements as of December 31, 2019 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 10,933 $ — $ 10,933 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 53,763 — — 53,763 Foreign currency forward contracts — 23 — 23 $ 53,763 $ 11,975 $ — $ 65,738 Liabilities: SARs $ — $ — $ 264 $ 264 Foreign currency forward contracts — 50 — 50 $ — $ 50 $ 264 $ 314 During the three months ended March 31, 2020 and 2019, there were no There were no changes to the valuation techniques used to measure asset and liability fair values on a recurring basis during the three months ended March 31, 2020 from those included in the Company’s consolidated financial statements for the year ended December 31, 2019. The following table provides a summary of changes in the fair values of the Company’s stock appreciation rights (“SARs”) liability, for which fair value is determined by Level 3 inputs: Three Months Ended March 31, 2020 2019 Fair value at beginning of period $ 264 $ 1,387 Change in fair value (65 ) (660 ) Exercises — — Fair value at end of period $ 199 $ 727 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 9 . Derivative Instruments The Company has certain international customers that are billed in foreign currencies. To mitigate the volatility related to fluctuations in the foreign exchange rates for accounts receivable denominated in foreign currencies, the Company enters into foreign currency forward contracts. As of March 31, 2020, no foreign currency forward contracts were outstanding. As of December 31, 2019, the Company had foreign currency forward contracts outstanding with notional amounts totaling 500 Euros and 900 USD related to the Company’s Australian subsidiary which matured during the first quarter of 2020. The Company’s foreign currency forward contracts describe above economically hedged certain risks but were not designated as hedges for financial reporting purposes, and accordingly, all changes in the fair value of this derivative instrument were recorded as unrealized foreign currency transaction gains or losses and were included in the condensed consolidated statements of operations and comprehensive income (loss) as a component of other income (expense). The Company records derivative instruments in the condensed consolidated balance sheet at their fair values. As of March 31, 2020, the Company recorded no asset relating to outstanding foreign currency forward contracts and as of December 31, 2019, had recorded an asset of $23 which was included in prepaid expenses and other current assets in the condensed consolidated balance sheets. As of March 31, 2020, the Company recorded no liability relating to outstanding foreign currency forward contracts and as of December 31, 2019, had recorded a liability of $50, related to outstanding foreign currency forward contracts, which was included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. The Company also faces exposure to foreign currency exchange rate fluctuations, as a certain portion of its expenses are denominated in currencies other than U.S. Dollars. In certain instances, we utilize forward contracts to hedge against foreign currency fluctuations. These contracts are used to minimize foreign gains or losses, as the gains or losses on the derivative are intended to offset the losses or gains on the underlying exposure. We do not engage in foreign currency speculation. The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company may enter into cash flow hedges which utilize foreign currency forward contracts to hedge specific forecasted transactions of the Company's foreign subsidiaries with the goal of protecting our budgeted expenses against foreign currency exchange rate changes compared to our budgeted rates. As of March 31, 2020, the company had entered into two cash flow hedges with notional amounts totaling 7,883 AUD to hedge certain Australian Dollar cash flows during the second and third quarters of 2020. These contracts mature in the second and third quarters of 2020, respectively. Accordingly, as of March 31, 2020, the company recorded an asset for the fair value of the hedges of $356, which is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets as of March 31, 2020. As the cash flows being hedged had not yet occurred, the full amount of the fair value at March 31, 2020 has been recognized as accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets as of March 31, 2020. The Company did not have any cash flow hedges as of December 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company’s effective income tax rate was 115.4% and 12.4% for the three months ended March 31, 2020 and 2019, respectively. The benefit from income taxes was $8,719 and $2,170 for the three months ended March 31, 2020 and 2019, respectively. The Company determines its estimated annual effective tax rate at the end of each interim period based on estimated pre-tax income (loss) and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income (loss) at the end of each interim period with certain adjustments. The tax effects of significant unusual or extraordinary items are reflected as discrete adjustments in the periods in which they occur. The Company’s estimated annual effective tax rate can change based on the mix of jurisdictional pre-tax income (loss) and other factors. However, if a company is unable to make a reliable estimate of its annual effective tax rate, then the actual effective tax rate for the year-to-date period may be the best estimate. For the three months ended March 31, 2020, the Company determined that its annual effective tax rate approach would provide for a reliable estimate and therefore used this method to calculate its first quarter tax provision. Due to US deferred tax assets requiring a full valuation allowance, the Company determined that best estimates would be made using separate annual effective tax rates for the United States and the rest of the world. The effective income tax rate for the three months ended March 31, 2020 and 2019 differed from the federal statutory rate due to geographical mix of earnings and related foreign tax rate differential, permanent differences, research and development tax credits, foreign tax credits, valuation allowance and withholding taxes. Permanent differences primarily included global intangible low-taxed income, Australian research and development expenditures claim and excess tax benefit from stock-based transactions. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. Accordingly, applicable provisions of the CARES Act have been reflected in the tax provision for the quarter ended March 31, 2020. The CARES Act, among other things, permits net operating loss (“NOL”) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company is currently evaluating certain aspects of these provisions, but has determined that the NOL it incurred in 2019 may be carried back, and accordingly has recognized a benefit of approximately $9,310 in the three months ended March 31, 2020, which is included in prepaid income taxes in the condensed consolidated balance sheet as of March 31, 2020. Of this amount, approximately $7,627 related to release of valuation allowances due to the conversion of certain deferred tax assets to NOLs available for carryback. As of December 31, 2019, the Company had recorded a full valuation allowance against its deferred tax assets in the United States. The change in the benefit from income taxes for the three months ended March 31, 2020 compared to the three months ended March 31, 2019 was primarily due to the pre-tax net loss for the three months ended March 31, 2020 of $7,557 coupled with the recognition of the benefit from the CARES Act provisions concerning NOL carrybacks compared to the pre-tax net loss for the three months ended March 31, 2019 of $17,509. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt The aggregate principal amount of debt outstanding as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, December 31, 2020 2019 Term loans $ 290,250 $ 291,000 Mortgage loan 6,564 6,644 Total principal amount of debt outstanding $ 296,814 $ 297,644 Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, December 31, 2020 2019 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 6,564 6,644 Current portion of principal payment obligations 9,564 9,644 Unamortized debt issuance costs, current portion (1,115 ) (1,120 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 8,449 $ 8,524 Non-current liabilities: Term loans $ 287,250 $ 288,000 Non-current portion of principal payment obligations 287,250 288,000 Unamortized debt issuance costs, non-current portion (2,968 ) (3,244 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 284,282 $ 284,756 Term Loan and Revolving Credit Facilities On December 20, 2016, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, various lenders and JPMorgan Chase Bank, N.A. and Barclays Bank PLC providing for (i) a term loan facility of $300,000 and (ii) a revolving credit facility of up to $25,000 in revolving credit loans and letters of credit. As of March 31, 2020 and December 31, 2019, $290,250 and $291,000 in principal amount, respectively, was outstanding under the term loan facility (the “Term Loans”) and the Company did not have any outstanding borrowings under the revolving credit facility; however, as of March 31, 2020 and December 31, 2019, the Company had used $1,295 and $1,343 of availability under the revolving credit facility for two stand-by letters of credit, one which serves as collateral to one of the Company’s customers pursuant to a contractual performance guarantee and one which serves as collateral for operating leases in Australia. In addition, the Company may, subject to certain conditions, including the consent of the administrative agent and the institutions providing such increases, increase the facilities by an unlimited amount so long as the Company is in compliance with specified leverage ratios, or otherwise by up to $70,000. Borrowings under the facilities bear interest at a floating rate, which can be either a Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin. The applicable margin for borrowings under the term loan facility is 4.00% per annum for Eurodollar rate loans (subject to a 1.00% per annum interest rate floor) and 3.00% per annum for base rate loans. As a result of the completion of the Company’s IPO in December 2017, the applicable margin for borrowings under the revolving credit facility is 1.75% per annum for Eurodollar rate loans and 0.75% per annum for base rate loans, subject to reduction based on the Company’s maintaining of specified net leverage ratios. The interest rates payable under the facilities are subject to an increase of 2.00% per annum during the continuance of any payment default. For Eurodollar rate loans, the Company may select interest periods of one, three or six months or, with the consent of all relevant affected lenders, twelve months. Interest will be payable at the end of the selected interest period, but no less frequently than every three months within the selected interest period. Interest on any base rate loan is not set for any specified period and is payable quarterly. The Company has the right to convert Eurodollar rate loans into base rate loans and the right to convert base rate loans into Eurodollar rate loans at its option, subject, in the case of Eurodollar rate loans, to breakage costs if the conversion is effected prior to the end of the applicable interest period. As of March 31, 2020, the interest rate on the Term Loans was 5.00% per annum, which was based on a one-month Eurodollar rate at the applicable floor of 1.00% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2019, the interest rate on the Term Loans was 5.80% per annum, which was based on a one-month Eurodollar rate of 1.80% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. Upon entering into the term loan facility, the Company incurred debt issuance costs of $7,811, which were initially recorded as a reduction of the debt liability and are amortized to interest expense using the effective interest method from the issuance date of the Term Loan until the maturity date. Principal payments of $750 were made under the term loan facility during each of the three months ended March 31, 2020 and 2019. Interest expense, including the amortization of debt issuance costs, totaled $4,448 and $4,958 for the three months ended March 31, 2020 and 2019, respectively. The revolving credit facility also requires payment of quarterly commitment fees at a rate of 0.25% per annum on the difference between committed amounts and amounts actually borrowed under the facility and customary letter of credit fees. For the three months ended March 31, 2020 and 2019, interest expense related to the fee for the unused amount of the revolving credit facility totaled $15 and $16, respectively. The Term Loans mature on December 20, 2023, and the revolving credit facility matures on December 20, 2021. The Term Loans are subject to amortization in equal quarterly installments, which commenced on March 31, 2017, of principal in an annual aggregate amount equal to 1.0% of the original principal amount of the Term Loans of $300,000, with the remaining outstanding balance payable at the date of maturity. Voluntary prepayments of principal amounts outstanding under the term loan facility are permitted at any time; however, if a prepayment of principal is made with respect to a Eurodollar loan on a date other than the last day of the applicable interest period, the Company is required to compensate the lenders for any funding losses and expenses incurred as a result of the prepayment. Prior to the revolving credit facility maturity date, funds borrowed under the revolving credit facility may be borrowed, repaid and reborrowed, without premium or penalty. In addition, the Company is required to make mandatory prepayments under the facilities with respect to (i) 100% of the net cash proceeds from certain asset dispositions (including casualty and condemnation events) by the Company or certain of its subsidiaries, subject to certain exceptions and reinvestment provisions, (ii) 100% of the net cash proceeds from the issuance or incurrence of any additional debt by the Company or certain of its subsidiaries, subject to certain exceptions, and (iii) 50% of the Company’s excess cash flow, as defined in the credit agreement, subject to reduction upon its achievement of specified performance targets. The facilities are secured by, among other things, a first priority security interest, subject to permitted liens, in substantially all of the Company’s assets and all of the assets of certain of its subsidiaries and a pledge of certain of the stock of certain of its subsidiaries, in each case subject to specified exceptions. The facilities contain customary affirmative and negative covenants, including certain restrictions on the Company’s ability to pay dividends, and, with respect to the revolving credit facility, a financial covenant requiring the Company to maintain a specified total net leverage ratio in the event that on the last day of any fiscal quarter the Company has utilized more than 30% of its borrowing capacity under the facility. The Company’s net leverage ratio exceeded the maximum on March 31, 2020 and December 31, 2019; however, as the Company’s utilization of the revolving credit facility did not exceed the 30% testing threshold on either March 31, 2020 or December 31, 2019, the Company was not in default of the revolving credit facility as a result of the Company’s net leverage ratio exceeding the maximum permitted amount. The Company was in compliance with all other applicable covenants of the facilities as of March 31, 2020 and December 31, 2019. Commercial Mortgage Loan On July 1, 2015, the Company entered into a commercial mortgage loan agreement in the amount of $7,950 (the “Mortgage Loan”). Borrowings under the Mortgage Loan bear interest at a rate of 3.5% per annum and are repayable in 60 monthly installments of $46, consisting of principal and interest based on a 20-year amortization schedule. The remaining amount of unpaid principal under the Mortgage Loan is due on the maturity date of July 1, 2020. Upon entering into the Mortgage Loan, the Company incurred debt issuance cost of $45, which was initially recorded as a direct deduction from the debt liability and is amortized to interest expense using the effective interest method from issuance date of the loan until the maturity date. The Company made principal payments under the Mortgage Loan of $80 and $78 during the three months ended March 31, 2020 and 2019, respectively. Interest expense, including the amortization of debt issuance costs, totaled $60 and $63 during the three months ended March 31, 2020 and 2019, respectively. The Mortgage Loan is secured by the land and building purchased in March 2015 and subjects the Company to various affirmative, negative and financial covenants, including maintenance of a minimum debt service ratio. The Company was in compliance with all covenants of the Mortgage Loan as of March 31, 2020 and December 31, 2019. As of March 31, 2020, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2020 $ 8,814 2021 3,000 2022 3,000 2023 3,000 2024 279,000 Thereafter — $ 296,814 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Special Dividends to Holders of Common and Preferred Stock The board of directors, on five separate occasions, declared a special dividend to the holders of common stock and preferred stock of record at that time. The below table details the cash dividends declared to stockholders of each share type for each of the five special dividends, as well as the amount of dividends the Company paid in each of the three months ended March 31, 2020 and 2019, respectively: Cash Dividend Declared Dividends Paid per Share Type Three months ended Dividend Declaration Date Common Series B and Series C Convertible Preferred March 31, 2020 March 31, 2019 November 30, 2017 $ 0.5802 $ 5.8020 $ — $ 865 May 10, 2017 1.1774 11.7744 — — December 27, 2016 2.3306 23.3058 — — June 17, 2016 0.5891 5.8910 — — November 30, 2014 0.3835 3.8346 — — Total dividends paid $ — $ 865 No dividend payments were payable as of March 31, 2020 and December 31, 2019. In connection with these special dividends, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and restricted stock units (“RSUs”) as equitable adjustments to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. These equitable adjustment payments are equal to an amount per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The below table provides details of these equitable adjustment payments: Equitable Adjustment Payments Equitable Adjustment Liability(1) Three months ended Dividend Declaration Dates Equitable Adjustment per share Year of Final Vesting March 31, 2020 March 31, 2019 As of March 31, 2020 As of December 31, 2019 November 30, 2017 $ 0.5802 2021 $ 38 $ 122 $ 139 $ 177 May 10, 2017 1.1774 2021 33 170 149 182 December 27, 2016 2.3306 2020 93 391 242 335 June 17, 2016 0.5891 2020 12 77 25 37 November 30, 2014 0.3835 2018 — 1 — — Total $ 176 $ 761 $ 555 $ 731 (1) Net of estimated forfeitures. Amounts are included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. Stock Repurchase Program On February 21, 2019, the Company announced a stock repurchase program authorizing it to repurchase up to $75,000 of the Company’s common stock. During the three months ended March 31, 2020, the Company repurchased 1,216 shares for a total cost of $2,998. During the three months ended March 31, 2019, the Company did not repurchase any shares. As of March 31, 2020, $70,241 remained authorized for repurchases of the Company’s common stock under the stock repurchase program. The stock repurchase program has no expiration date and does not require us to purchase a minimum number of shares, and the Company may suspend, modify or discontinue the stock repurchase program at any time without prior notice. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 13. Stock-based Compensation 2017 Stock Incentive Plan The Company’s 2017 Stock Incentive Plan (the “2017 Plan”) provides for the Company to sell or issue common stock or restricted common stock, or to grant qualified incentive stock options, nonqualified stock options, SARs, performance-based stock units (“PSUs”), RSUs or other stock-based awards to the Company’s employees, officers, directors, advisers and outside consultants. The total number of shares authorized for issuance under the 2017 Plan was 17,143 shares as of , of which 11,225 shares remained available for future grant. Stock Options The following table summarizes the outstanding stock option activity and a summary of information related to stock options as of and for the three months ended March 31, 2020 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2020 8,250 $ 7.73 5.65 $ 4,235 Granted 18 2.23 Exercised (150 ) 2.08 Forfeited (400 ) 8.32 Outstanding at March 31, 2020 7,718 $ 7.80 5.43 $ 2,901 Options exercisable at March 31, 2020 6,668 $ 6.88 5.03 $ 2,878 Vested or expected to vest at March 31, 2020 7,668 $ 7.77 5.41 $ 2,898 The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended March 31, 2020 2019 Risk-free interest rate 0.7% 2.5% Expected term (in years) 6.1 6.1–6.2 Expected volatility 29.3% 30.5%–30.6% Expected dividend yield 0.0% 0.0% The weighted-average grant-date fair value of options granted during the three months ended March 31, 2020 and 2019 was $0.66 and $3.33 per share, respectively. Cash proceeds received upon the exercise of options were $312 and $1,498 during the three months ended March 31, 2020 and 2019, respectively. The intrinsic value of stock options exercised during the three months ended March 31, 2020 and 2019 was $273 and $4,770, respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. Restricted Stock Units A summary of RSU activity under the Company’s 2011 Stock Incentive Plan (the “2011 Plan”) and the 2017 Plan for the three months ended March 31, 2020 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2020 1,653 $ 11.38 Granted 3,435 3.23 Vested (353 ) 12.16 $ 1,453 Forfeited (94 ) 11.88 Unvested balance at March 31, 2020 4,641 $ 5.83 The Company withheld 111 and 76 Stock Appreciation Rights Over time, the Company has granted SARs that allow the holder the right, upon exercise, to receive in cash the amount of the difference between the fair value of the Company’s common stock at the date of exercise and the price of the underlying common stock at the date of grant of each SAR. The SARs vest over a four-year period from the date of grant and expire ten years from the date of grant. As of March 31, 2020, 220 SARs were outstanding and none were unvested. As of March 31, 2020, there were 220 SARs exercisable and the weighted-average fair value was $0.90 per SAR. The fair value of the SAR liability as of March 31, 2020 and December 31, 2019 was $199 and $264, respectively, (see Note 8) and was included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. Performance-Based Stock Units The Company granted 983 PSUs in February 2020 to certain employees that vest over a three-year period based on the achievement of performance goals and continued performance of services. The performance goals consist solely of market-based vesting conditions, determined by the Company’s level of achievement of pre-established parameters relating to the performance of the Company’s stock price as set by the Board of Directors. Vesting may occur at any time during the three-year period. Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition, both of which were estimated based on a Monte Carlo simulation model applying the following key assumptions: For the Three Months Ended March 31, 2020 Risk-free interest rate 1.2% Volatility 70.0% Dividend yield 0.0% Cost of equity 11.0% The actual number of shares earned upon vesting will range up to a maximum of 983 shares if all targets are achieved. For the three months ended March 31, 2020, no shares vested. Stock-Based Compensation Expense Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three months ended March 31, 2020 and 2019 was classified in the condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended March 31, 2020 2019 Cost of revenue $ 31 $ 71 Research and development expenses 437 141 Selling, general and administrative expenses 1,969 1,688 $ 2,437 $ 1,900 As of March 31, 2020, there was $25,143 of unrecognized compensation cost related to outstanding stock options, RSUs, SARs and PSUs, which is expected to be recognized over a weighted-average period of 2.82 years. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | 14. Net Income (Loss) per Share Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2020 2019 Numerator: Net (loss) income attributable to common stockholders, basic and diluted $ 1,162 $ (15,339 ) Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 83,990 83,323 Dilutive effect of stock options 885 — Dilutive effect of restricted stock units 134 — Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 85,009 83,323 Net (loss) income per share attributable to common stockholders: Basic $ 0.01 $ (0.18 ) Diluted $ 0.01 $ (0.18 ) The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2020 2019 Options to purchase common stock 5,941 8,957 Unvested restricted stock units 2,527 1,440 Unvested performance-based stock units 983 — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 15. Revenue from Contracts with Customers Disaggregation of revenue The Company disaggregates its revenue by product and service in the condensed consolidated statements of operations and comprehensive income (loss). Performance obligations related to product revenue are recognized at a point in time, while performance obligations related to service revenue are recognized over time. The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address, summarized as follows: Three Months Ended March 31, 2020 2019 North America: United States $ 29,440 $ 14,558 Other 4,512 3,873 Total North America 33,952 18,431 Europe, Middle East and Africa 14,098 7,366 Asia-Pacific: Australia 21,704 — Other 11,484 4,724 Total Asia-Pacific 33,188 4,724 Latin America 2,385 4,965 Total revenue (1) $ 83,623 $ 35,486 (1) Other than the United States and Australia, no individual countries represented 10% or more of the Company’s total revenue for any of the periods presented. The Company also disaggregates its revenue based on product line summarized as follows: Three Months Ended March 31, 2020 2019 Product revenue: Wireless $ 20,657 $ 228 Fixed telecom 17,932 44 Cable 35,169 26,381 Total product revenue 73,758 26,653 Service revenue 9,865 8,833 Total revenue $ 83,623 $ 35,486 Costs to Obtain or Fulfill a Contract As of March 31, 2020 and December 31, 2019, the Company had short-term capitalized contract costs of $305 and $585, respectively, which are included in prepaid expenses and other current assets and had long-term capitalized contract costs of $97 and $70, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2020 and 2019, amortization expense associated with capitalized contract costs was $253 and $66, respectively, which were recorded to selling, general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue when the Company satisfies its performance obligations, consistent with the above methodology. For the three months ended March 31, 2020, the Company recognized $14,940 of revenue that was included in deferred revenue as of December 31, 2019. For the three months ended March 31, 2019, the Company recognized $7,269 of revenue that was included in deferred revenue as of January 1, 2019. The Company receives payments from customers based upon contractual billing terms. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. As of March 31, 2020 and December 31, 2019, the Company included contract assets of $110 and $50, respectively, which is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. Transaction price allocated to the remaining performance obligations As of March 31, 2020, the aggregate remaining amount of revenue expected to be recognized related to unsatisfied or partially unsatisfied performance obligations is $23,000. The Company expects approximately 82% of this amount to be recognized in the next twelve months with the remaining to be recognized over the next two to five years. Other Revenue Recognition Policies The Company’s customary payment terms are generally one year or less. If the Company provides extended payment terms that represent a significant financing component, the Company adjusts the amount of promised consideration for the time value of money using its discounted rate and recognizes interest income separate from the revenue recognized on contracts with customers. During the three months ended March 31, 2020 and 2019, the Company recorded $34 and $26, respectively, in interest income in the condensed consolidated statements of operations and comprehensive income (loss). When a customer contract includes future trade-in rights, which are distinct performance obligations, the Company accounts for the customer contract by recognizing the revenue on the products transferred, deferring revenue allocated to the future product based on a relative standalone selling price, and an asset for the value of the trade-in product to be recovered from the customer upon delivery of the future product. The Company assesses and updates these estimates each reporting period, and updates to these estimates may result in either an increase or decrease in the amount of the future product liability and product return asset. The Company recognizes revenue allocated to the future product when the product has shipped or been delivered and control has transferred. As of March 31, 2020 and December 31, 2019, there were no future product liabilities or product return assets. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 16. Segment Information The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the Company’s chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company has determined that its chief operating decision maker is its President and Chief Executive Officer. The Company’s chief operating decision maker reviews the Company’s financial information on a consolidated basis for purposes of allocating resources and assessing financial performance. Since the Company operates as one operating segment, all required financial segment information can be found in these condensed consolidated financial statements. The Company’s property and equipment, net by location was as follows: March 31, 2020 December 31, 2019 United States $ 24,721 $ 25,583 China 3,311 3,277 Australia 3,611 4,041 Other 2,588 3,009 Total property and equipment, net $ 34,231 $ 35,910 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | 17. Related Parties Employment of Rongke Xie Rongke Xie, who serves as Deputy General Manager of Guangzhou Casa Communication Technology LTD (“Casa China”), a subsidiary of the Company, is the sister of Lucy Xie, the Company’s Senior Vice President of Operations and a member of the Company’s board of directors. Casa China paid Rongke Xie $22 and $23 in total compensation in the three months ended March 31, 2020 and 2019, respectively, for her services as an employee. In March 2020, February 2019 and June 2018, the Company granted to Rongke Xie 90, 8 and 5 RSUs, respectively, which vest over four annual periods. The grant-date fair value of the awards totaled $400, which will be recorded as stock-based compensation expense over the vesting period of the awards. During the three months ended March 31, 2020 and 2019, the Company recognized selling, general and administrative expenses of $13 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Operating Leases The Company leases manufacturing, warehouse and office space in the United States, China, Hong Kong, Spain, Australia and the United Kingdom under non-cancelable operating leases that expire through 2023. The Company also has a lease in Ireland that expires in 2026, but provides the Company the right to terminate in 2021. Rent expense for the three months ended March 31, 2020 and 2019 was $757 and $327, respectively. Rent expense is recorded on a straight-line basis, and, as a result, as of March 31, 2020 and December 31, 2019, the Company had a deferred rent liability of $177 and $212, respectively, which is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. Future minimum lease payments under non-cancelable operating leases as of March 31, 2020 were as follows: Year Ending December 31, 2020 $ 1,823 2021 1,422 2022 112 2023 5 2024 — Thereafter — $ 3,362 Indemnification The Company has, in the ordinary course of business, agreed to defend and indemnify certain customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets. As permitted under Delaware law, the Company indemnifies its officers, directors and employees for certain events or occurrences that happen by reason of their relationship with or position held at the Company. As of March 31, 2020 and December 31, 2019, the Company had not experienced any losses related to these indemnification obligations and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related liabilities were recorded in its condensed consolidated financial statements. Litigation On May 29, 2019 and July 3, 2019, two putative class action lawsuits, Shen v. Chen et al. and Baig v. Chen et al., were filed in the Massachusetts Superior Court against the Company, certain of its current and former executive officers and directors, Summit Partners, the Company’s largest investor, and the underwriters from the Company’s December 15, 2017 initial public offering (the “IPO”) (collectively, the “defendants”). These complaints purport to be brought on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO. The complaints generally allege that (i) each of the defendants violated Section 11 and/or Section 12(a)(2) of the Securities Act of 1933, as amended, (the “Securities Act”), because documents related to the Company’s IPO including its registration statement and prospectus were materially misleading by containing untrue statements of material fact and/or omitting to state material facts necessary to make such statements not misleading and (ii) the individual defendants and Summit Partners acted as controlling persons within the meaning and in violation of Section 15 of the Securities Act. On August 13, 2019, the Court consolidated these actions and referred the consolidated actions to the Business Litigation Session of the Massachusetts Superior Court (the “BLS”). On September 3, 2019, the BLS accepted the consolidated action into its session for further proceedings. On November 12, 2019, the plaintiffs filed an amended shareholder class action complaint, purportedly on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO, which contains substantially similar allegations and asserts the same claims as the two initial complaints, described above. Plaintiffs seek compensatory damages, costs and expenses, including counsel and expert fees, rescission or a rescissory measure of damages, and equitable and injunctive relief. On January 14, 2020, the defendants served motions to dismiss the amended complaint, which remain pending. On August 9, 2019, a third putative class action lawsuit, Donald Hook v. Casa Systems, Inc. et al., was filed in the Supreme Court of New York, New York County, against the Company, certain of its current and former executive officers and directors, Summit Partners, and the underwriters from the IPO. The complaint purports to be brought on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO and generally alleges that (i) each of the defendants violated Section 11 and/or Section 12(a)(2) of the Securities Act of 1933, as amended, or the Securities Act, because documents related to the IPO including its registration statement and prospectus were materially misleading by containing untrue statements of material fact and/or omitting to state material facts necessary to make such statements not misleading and (ii) the individual defendants and Summit Partners acted as controlling persons within the meaning and in violation of Section 15 of the Securities Act. On November 22, 2019, the plaintiff filed an amended complaint, purportedly on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO, which contains substantially similar allegations as the initial complaint, described above, and asserts claims for violations of Sections 11 and 15 of the Securities Act. The plaintiff seeks compensatory damages, costs and expenses, including counsel and expert fees, rescission or a rescissory measure of damages, disgorgement, and equitable and injunctive relief. On January 21, 2020, the defendants served motions to dismiss the amended complaint, which remain pending. On August 13, 2019, a fourth putative class action lawsuit, Panther Partners, Inc. v. Guo et al., was filed in the Supreme Court of New York, New York County, against the Company, certain of its current and former executive officers and directors, and the underwriters from the Company’s April 30, 2018 follow-on offering of common stock, (the “Follow-on Offering”). The complaint purports to be brought on behalf of all purchasers of the Company’s common stock in the Follow-on Offering and generally alleges that (i) each of the defendants, other than Abraham Pucheril, violated Section 11 of the Securities Act, and each of the defendants violated Section 12(a)(2) of the Securities Act, because documents related to the Company’s Follow-on Offering, including its registration statement and prospectus, were materially misleading by containing untrue statements of material fact and/or omitting to state material facts necessary to make such statements not misleading and (ii) the individual defendants acted as controlling persons within the meaning and in violation of Section 15 of the Securities Act. On November 22, 2019, the plaintiff filed an amended class action complaint, purportedly on behalf of all purchasers of the Company’s common stock in the Follow-on Offering, which contains substantially similar allegations and asserts the same claims as the initial complaint, described above. The plaintiff seeks compensatory damages, costs and expenses, including counsel and expert fees, rescission or a rescissory measure of damages, and equitable and injunctive relief. On January 21, 2020, the defendants served motions to dismiss the amended complaint, which remain pending. No amounts have been accrued for any of the putative class action lawsuits referenced above as of March 31, 2020 as the Company does not believe the likelihood of a material loss is probable. Although the ultimate outcome of these matters cannot be predicted with certainty, the resolution of any of these matters could have a material impact on the Company’s results of operations if a material loss becomes probable and estimable in a future period. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these condensed consolidated financial statements include revenue recognition, provision for doubtful accounts, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, recoverability of net deferred tax assets, valuations of uncertain tax positions, benefit from income taxes, warranty allowances, the valuation of equity instruments and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances existing at the time such estimates are made. The emergence of COVID-19 around the world, and particularly in the United States and China, presents various risks to the Company, not all of which the Company is able to fully evaluate or even to foresee at the current time, and could have a material effect upon the estimates and judgments relied upon by management in preparing these condensed consolidated financial statements. While the COVID-19 pandemic did not materially adversely affect the Company’s financial results and business operations in the quarter ended March 31, 2020, economic and health conditions in the United States and across most of the globe have changed rapidly since the end of the quarter. Globally, all aspects of the Company’s business remain fully operational, and it is working with its supply chain to ensure continued availability of all anticipated inventory requirements. The Company will continue to monitor its business very closely for any effects of COVID-19 for as long as necessary on an ongoing basis. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of March 31, 2020 and December 31, 2019, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash as of March 31, 2020 and December 31, 2019 consisted of a certificate of deposit of $1,025 and $1,019, respectively, pledged as collateral for a stand-by letter of credit required to support a contractual obligation. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2020 March 31, 2019 Cash and cash equivalents $ 134,752 $ 264,411 Restricted cash included in other assets 1,025 1,025 $ 135,777 $ 265,436 |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for customer contracts with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. In limited instances, for certain customers and/or for certain transactions, the Company provides extended payment terms that are considered significant financing components. These extended payment terms allow the customer to pay for the purchased equipment in monthly, other periodic or lump-sum payments over a period of one to five years. In certain circumstances, the receivables may be collateralized by the underlying assets over the payment period. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. Accounts receivable as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Current portion of accounts receivable, net: Accounts receivable, net $ 53,390 $ 91,273 Accounts receivable, extended payment terms 1,623 1,827 55,013 93,100 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 522 575 $ 55,535 $ 93,675 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customers, customer payment history, and other specific customer and transaction information. The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). As of March 31, 2020 and December 31, 2019, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2020 and 2019, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment terms. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts, money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2020 2019 2020 2019 Customer A * 25 % * 11 % Customer B * * * 14 % Customer C * 12 % * * Customer D 12 % * 17 % 19 % Customer E 23 % * * * * Less than 10% of total Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. In addition, the Company primarily relies on two third parties to manufacture certain components of its products. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. Goodwill has been recorded in connection with the acquisition of NetComm on July 1, 2019 (refer to Note 3). The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. As of March 31, 2020, the Company considered potential impairment indicators of goodwill and noted no indicators of impairment. The Company performs its annual goodwill impairment test during its fourth quarter. For its annual goodwill impairment test, the Company operates under one reporting unit and the fair value of its reporting unit has been determined based on the Company’s enterprise value. As part of the annual goodwill impairment test, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary. Examples of events and circumstances that might indicate that the reporting unit’s fair value is less than its carrying amount include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of its qualitative assessment, it is more likely than not (i.e., greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from three to ten years. The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. The Company considered potential impairment indicators of acquired intangible assets at March 31, 2020 and noted no indicators of impairment. |
Derivative Instruments | Derivative Instruments The Company has transactions and balances denominated in currencies other than the U.S. dollar. Most of these transactions or balances are denominated in Euros and Australian dollars. The Company has historically entered into foreign exchange contracts to reduce its exposure to currency fluctuations. Historically, these transactions have not qualified for hedge accounting. However, beginning in March 2020, the Company entered into two forward contracts to hedge against the impact of foreign currency fluctuations on certain forecasted operating expenses. These instruments qualified for hedge accounting as cash flow hedges, and were appropriately designated as such, thus permitting the application of special hedge accounting under ASC 815, Derivatives and Hedging, |
Impact of Recently Adopted and Issued Accounting Standards | Impact In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) Impact of Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Codification Improvements to Topic 842: Leases Leases (Topic 842), Targeted Improvements Leases (Topic 842) – Narrow-Scope Improvements for Lessors . In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance intended to provide more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The main provisions include presenting financial assets measured at amortized cost at the amount expected to be collected, which is net of an allowance for expected credit losses, and recording credit losses related to available-for-sale securities through an allowance for credit losses. The effective dates for the amendments in ASU 2016-13 were updated in ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Other For further information with regard to the Company’s significant accounting policies, please refer to Note 2 “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019. |
Other | Other For further information with regard to the Company’s significant accounting policies, please refer to Note 2 “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets | The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2020 March 31, 2019 Cash and cash equivalents $ 134,752 $ 264,411 Restricted cash included in other assets 1,025 1,025 $ 135,777 $ 265,436 |
Schedule of Accounts Receivable | Accounts receivable as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Current portion of accounts receivable, net: Accounts receivable, net $ 53,390 $ 91,273 Accounts receivable, extended payment terms 1,623 1,827 55,013 93,100 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 522 575 $ 55,535 $ 93,675 |
Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable | Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2020 2019 2020 2019 Customer A * 25 % * 11 % Customer B * * * 14 % Customer C * 12 % * * Customer D 12 % * 17 % 19 % Customer E 23 % * * * * Less than 10% of total |
Business Acquisition (Tables)
Business Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Preliminarily Purchase Price and Valuation, Allocation of Total Purchase Price | Based upon the purchase price and the valuation, the allocation of the total purchase price is as follows: Preliminary Purchase Price Allocation Assets acquired Fair value of tangible assets: Accounts receivable $ 18,142 Inventory 24,138 Prepaid expenses and other current assets 2,240 Property, plant and equipment 8,010 Deferred tax assets 365 Other assets 13 Goodwill 50,347 Identifiable intangible assets 44,000 Total assets acquired $ 147,255 Liabilities assumed Accounts payable $ (9,719 ) Accrued expenses (13,178 ) Accrued income taxes (140 ) Deferred tax liabilities (10,791 ) Current portion of long-term debt (3,507 ) Other liabilities (489 ) Total liabilities assumed $ (37,824 ) Net assets acquired $ 109,431 |
Schedule of Preliminary Purchase Price and Estimated Useful Lives Associated with Certain Assets | The preliminary allocation of the purchase price and the estimated useful lives associated with certain assets is as follows : Amount Estimated Useful Life Net tangible assets $ 15,084 — Identifiable intangible assets: Developed technology 25,000 7 years Customer relationships 18,000 10 years Trade name 1,000 3 years Goodwill 50,347 — Total purchase price $ 109,431 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Net | Intangible assets, net consisted of the following at March 31, 2020 and December 31, 2019: Cost Accumulated amortization Net Balance Developed Technology $ 25,000 $ (2,679 ) $ 22,321 Customer Relationships 18,000 (1,350 ) 16,650 Trade Name 1,000 (250 ) 750 Totals as of March 31, 2020 $ 44,000 $ (4,279 ) $ 39,721 Cost Accumulated amortization Net Balance Developed Technology $ 25,000 $ (1,786 ) $ 23,214 Customer Relationships 18,000 (900 ) 17,100 Trade Name 1,000 (166 ) 834 Totals as of December 31, 2019 $ 44,000 $ (2,852 ) $ 41,148 |
Schedule of Amortization Expense on Existing Intangible Assets | As of March 31, 2020, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, 2020 $ 4,279 2021 5,704 2022 5,538 2023 5,371 2024 5,371 Thereafter 13,458 $ 39,721 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of March 31, 2020 and December 31, 2019 March 31, 2020 December 31, 2019 Raw materials $ 28,455 $ 24,000 Work in process — 17 Finished goods: Manufactured finished goods 57,838 70,923 Deferred inventory costs 836 4,263 87,129 99,203 Valuation allowance for excess and obsolete inventory (6,115 ) (5,599 ) $ 81,014 $ 93,604 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Components of Property and Equipment | Property and equipment as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Computers and purchased software $ 22,127 $ 22,294 Leasehold improvements 4,384 4,380 Furniture and fixtures 2,965 2,794 Machinery and equipment 40,592 40,002 Land 3,091 3,091 Building 4,765 4,765 Building improvements 7,231 6,776 Trial systems at customers’ sites 5,816 6,039 90,971 90,141 Less: Accumulated depreciation and amortization (56,740 ) (54,231 ) $ 34,231 $ 35,910 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Accrued compensation and related taxes $ 12,735 $ 18,540 Accrued warranty 2,234 2,448 Dividends and equitable adjustments payable (see Note 12) 555 750 Accrued customer incentives 11 233 Other accrued expenses 10,585 12,596 $ 26,120 $ 34,567 |
Summary of Changes in Amount Reserved for Warranty Costs | A summary of changes in the amount reserved for warranty costs for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31, 2020 2019 Warranty reserve at beginning of period $ 2,448 $ 926 Provisions 550 525 Charges (764 ) (574 ) Warranty reserve at end of period $ 2,234 $ 877 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The following tables present information about the fair value of the Company’s financial assets and liabilities as of March 31, 2020 and December 31, 2019 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,025 $ — $ 1,025 Money market mutual funds 60,735 — — 60,735 Foreign currency forward contracts — 356 — 356 $ 60,735 $ 1,381 $ — $ 62,116 Liabilities: SARs $ — $ — $ 199 $ 199 $ — $ — $ 199 $ 199 Fair Value Measurements as of December 31, 2019 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 10,933 $ — $ 10,933 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 53,763 — — 53,763 Foreign currency forward contracts — 23 — 23 $ 53,763 $ 11,975 $ — $ 65,738 Liabilities: SARs $ — $ — $ 264 $ 264 Foreign currency forward contracts — 50 — 50 $ — $ 50 $ 264 $ 314 |
Summary of Changes in Fair Values of Stock Appreciation Rights (SARs) Liability | The following table provides a summary of changes in the fair values of the Company’s stock appreciation rights (“SARs”) liability, for which fair value is determined by Level 3 inputs: Three Months Ended March 31, 2020 2019 Fair value at beginning of period $ 264 $ 1,387 Change in fair value (65 ) (660 ) Exercises — — Fair value at end of period $ 199 $ 727 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Principal Amount of Debt Outstanding | The aggregate principal amount of debt outstanding as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, December 31, 2020 2019 Term loans $ 290,250 $ 291,000 Mortgage loan 6,564 6,644 Total principal amount of debt outstanding $ 296,814 $ 297,644 |
Schedule of Current and Non-Current Debt Obligations | Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 consisted of the following: March 31, December 31, 2020 2019 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 6,564 6,644 Current portion of principal payment obligations 9,564 9,644 Unamortized debt issuance costs, current portion (1,115 ) (1,120 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 8,449 $ 8,524 Non-current liabilities: Term loans $ 287,250 $ 288,000 Non-current portion of principal payment obligations 287,250 288,000 Unamortized debt issuance costs, non-current portion (2,968 ) (3,244 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 284,282 $ 284,756 |
Schedule of Aggregate Minimum Future Principal Payments of Debt | As of March 31, 2020, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2020 $ 8,814 2021 3,000 2022 3,000 2023 3,000 2024 279,000 Thereafter — $ 296,814 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Cash Dividends Declared and Paid to Stockholders for Special Dividends | The below table details the cash dividends declared to stockholders of each share type for each of the five special dividends, as well as the amount of dividends the Company paid in each of the three months ended March 31, 2020 and 2019, respectively: Cash Dividend Declared Dividends Paid per Share Type Three months ended Dividend Declaration Date Common Series B and Series C Convertible Preferred March 31, 2020 March 31, 2019 November 30, 2017 $ 0.5802 $ 5.8020 $ — $ 865 May 10, 2017 1.1774 11.7744 — — December 27, 2016 2.3306 23.3058 — — June 17, 2016 0.5891 5.8910 — — November 30, 2014 0.3835 3.8346 — — Total dividends paid $ — $ 865 |
Schedule of Equitable Adjustment Payments | The below table provides details of these equitable adjustment payments: Equitable Adjustment Payments Equitable Adjustment Liability(1) Three months ended Dividend Declaration Dates Equitable Adjustment per share Year of Final Vesting March 31, 2020 March 31, 2019 As of March 31, 2020 As of December 31, 2019 November 30, 2017 $ 0.5802 2021 $ 38 $ 122 $ 139 $ 177 May 10, 2017 1.1774 2021 33 170 149 182 December 27, 2016 2.3306 2020 93 391 242 335 June 17, 2016 0.5891 2020 12 77 25 37 November 30, 2014 0.3835 2018 — 1 — — Total $ 176 $ 761 $ 555 $ 731 (1) Net of estimated forfeitures. Amounts are included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Outstanding Stock Option and Information Related to Stock Options Activity | The following table summarizes the outstanding stock option activity and a summary of information related to stock options as of and for the three months ended March 31, 2020 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2020 8,250 $ 7.73 5.65 $ 4,235 Granted 18 2.23 Exercised (150 ) 2.08 Forfeited (400 ) 8.32 Outstanding at March 31, 2020 7,718 $ 7.80 5.43 $ 2,901 Options exercisable at March 31, 2020 6,668 $ 6.88 5.03 $ 2,878 Vested or expected to vest at March 31, 2020 7,668 $ 7.77 5.41 $ 2,898 |
Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model | The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended March 31, 2020 2019 Risk-free interest rate 0.7% 2.5% Expected term (in years) 6.1 6.1–6.2 Expected volatility 29.3% 30.5%–30.6% Expected dividend yield 0.0% 0.0% |
Summary of RSU Activity | A summary of RSU activity under the Company’s 2011 Stock Incentive Plan (the “2011 Plan”) and the 2017 Plan for the three months ended March 31, 2020 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2020 1,653 $ 11.38 Granted 3,435 3.23 Vested (353 ) 12.16 $ 1,453 Forfeited (94 ) 11.88 Unvested balance at March 31, 2020 4,641 $ 5.83 |
Assumptions of Estimated Based on Monte Carlo Simulation Model | Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition, both of which were estimated based on a Monte Carlo simulation model applying the following key assumptions: For the Three Months Ended March 31, 2020 Risk-free interest rate 1.2% Volatility 70.0% Dividend yield 0.0% Cost of equity 11.0% |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three months ended March 31, 2020 and 2019 was classified in the condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended March 31, 2020 2019 Cost of revenue $ 31 $ 71 Research and development expenses 437 141 Selling, general and administrative expenses 1,969 1,688 $ 2,437 $ 1,900 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders | Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2020 2019 Numerator: Net (loss) income attributable to common stockholders, basic and diluted $ 1,162 $ (15,339 ) Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 83,990 83,323 Dilutive effect of stock options 885 — Dilutive effect of restricted stock units 134 — Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 85,009 83,323 Net (loss) income per share attributable to common stockholders: Basic $ 0.01 $ (0.18 ) Diluted $ 0.01 $ (0.18 ) |
Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders | The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2020 2019 Options to purchase common stock 5,941 8,957 Unvested restricted stock units 2,527 1,440 Unvested performance-based stock units 983 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address | The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address, summarized as follows: Three Months Ended March 31, 2020 2019 North America: United States $ 29,440 $ 14,558 Other 4,512 3,873 Total North America 33,952 18,431 Europe, Middle East and Africa 14,098 7,366 Asia-Pacific: Australia 21,704 — Other 11,484 4,724 Total Asia-Pacific 33,188 4,724 Latin America 2,385 4,965 Total revenue (1) $ 83,623 $ 35,486 (1) Other than the United States and Australia, no individual countries represented 10% or more of the Company’s total revenue for any of the periods presented. |
Summary of Disaggregates of Revenue Based on Product Line | The Company also disaggregates its revenue based on product line summarized as follows: Three Months Ended March 31, 2020 2019 Product revenue: Wireless $ 20,657 $ 228 Fixed telecom 17,932 44 Cable 35,169 26,381 Total product revenue 73,758 26,653 Service revenue 9,865 8,833 Total revenue $ 83,623 $ 35,486 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment, Net by Location | The Company’s property and equipment, net by location was as follows: March 31, 2020 December 31, 2019 United States $ 24,721 $ 25,583 China 3,311 3,277 Australia 3,611 4,041 Other 2,588 3,009 Total property and equipment, net $ 34,231 $ 35,910 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of March 31, 2020 were as follows: Year Ending December 31, 2020 $ 1,823 2021 1,422 2022 112 2023 5 2024 — Thereafter — $ 3,362 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Details) - NetComm | Jul. 01, 2019USD ($) | Jul. 01, 2019AUD ($) |
Nature Of Business And Basis Of Presentation [Line Items] | ||
Business combination acquisition of equity interests percentage | 100.00% | 100.00% |
Cash consideration | $ 112,674,000 | $ 161,963,000 |
Exchange rate | 0.700 | 0.700 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)DerivativeInstrument | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||
Percentage of fair value of reporting unit | 50.00% | ||
Intangible assets amortization method | straight-line method | ||
Number of forward contracts | DerivativeInstrument | 2 | ||
Accounts Receivable, Extended Payment Terms | |||
Significant Accounting Policies [Line Items] | |||
Reserve for credit losses | $ 0 | $ 0 | |
Write off of uncollectible receivables | $ 0 | $ 0 | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Extended payment period for certain customers and/or for certain transactions | 1 year | ||
Intangible assets, estimated useful lives | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Extended payment period for certain customers and/or for certain transactions | 5 years | ||
Intangible assets, estimated useful lives | 10 years | ||
Certificates of Deposit | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 1,025,000 | $ 1,019,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 134,752 | $ 113,638 | $ 264,411 | |||
Restricted cash included in other assets | $ 1,025 | $ 1,025 | ||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||||
Cash and cash equivalents, restricted cash | $ 135,777 | [1] | $ 114,657 | $ 265,436 | [1] | $ 281,606 |
[1] | See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these condensed consolidated statements of cash flows. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 55,013 | $ 93,100 |
Accounts receivable, net of current portion: | ||
Accounts receivable, net of current portion | 522 | 575 |
Accounts receivable | 55,535 | 93,675 |
Accounts Receivable, Net | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 53,390 | 91,273 |
Accounts Receivable, Extended Payment Terms | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 1,623 | $ 1,827 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.00% | ||
Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Revenue | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Revenue | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 23.00% | ||
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | ||
Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.00% | 19.00% |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) | Jul. 01, 2019USD ($) | Jul. 01, 2019AUD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 50,347,000 | $ 50,347,000 | ||
NetComm | ||||
Business Acquisition [Line Items] | ||||
Business combination acquisition of equity interests percentage | 100.00% | |||
Cash consideration | $ 112,674,000 | $ 161,963,000 | ||
Exchange rate | 0.700 | |||
Cash and cash equivalents balance | $ 3,243,000 | |||
Consideration net of cash acquired | 109,431,000 | |||
Existing debt | 3,507,000 | |||
Fair value of receivables acquired | 18,142,000 | |||
Identifiable intangible assets | $ 44,000,000 | |||
Weighted average life of identifiable intangible assets | 8 years 2 months 12 days | 8 years 2 months 12 days | ||
Goodwill | $ 50,347,000 | |||
NetComm | Developed Technology | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 25,000,000 | |||
Intangible assets, estimated useful lives | 7 years | 7 years | ||
NetComm | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 18,000,000 | |||
Intangible assets, estimated useful lives | 10 years | 10 years | ||
NetComm | Trade Name | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 1,000,000 | |||
Intangible assets, estimated useful lives | 3 years | 3 years |
Business Acquisition - Schedule
Business Acquisition - Schedule of Preliminarily Purchase Price and Valuation, Allocation of Total Purchase Price (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2019 |
Fair value of tangible assets: | |||
Goodwill | $ 50,347 | $ 50,347 | |
NetComm | |||
Fair value of tangible assets: | |||
Accounts receivable | $ 18,142 | ||
Inventory | 24,138 | ||
Prepaid expenses and other current assets | 2,240 | ||
Property, plant and equipment | 8,010 | ||
Deferred tax assets | 365 | ||
Other assets | 13 | ||
Goodwill | 50,347 | ||
Identifiable intangible assets | 44,000 | ||
Total assets acquired | 147,255 | ||
Liabilities assumed | |||
Accounts payable | (9,719) | ||
Accrued expenses | (13,178) | ||
Accrued income taxes | (140) | ||
Deferred tax liabilities | (10,791) | ||
Current portion of long-term debt | (3,507) | ||
Other liabilities | (489) | ||
Total liabilities assumed | (37,824) | ||
Net assets acquired | $ 109,431 |
Business Acquisition - Schedu_2
Business Acquisition - Schedule of Preliminary Purchase Price and Estimated Useful Lives Associated with Certain Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Identifiable intangible assets: | |||
Goodwill | $ 50,347 | $ 50,347 | |
NetComm | |||
Business Acquisition [Line Items] | |||
Net tangible assets | $ 15,084 | ||
Identifiable intangible assets: | |||
Identifiable intangible assets | 44,000 | ||
Goodwill | 50,347 | ||
Net assets acquired | 109,431 | ||
Developed Technology | NetComm | |||
Identifiable intangible assets: | |||
Identifiable intangible assets | $ 25,000 | ||
Estimated Useful Life | 7 years | ||
Customer Relationships | NetComm | |||
Identifiable intangible assets: | |||
Identifiable intangible assets | $ 18,000 | ||
Estimated Useful Life | 10 years | ||
Trade Name | NetComm | |||
Identifiable intangible assets: | |||
Identifiable intangible assets | $ 1,000 | ||
Estimated Useful Life | 3 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill And Intangible Assets [Line Items] | ||
Changes to goodwill | $ 0 | |
Amortization expense | $ 0 | |
Cost of Revenue | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | 893,000 | |
Selling, General and Administrative Expenses | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | $ 533,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 44,000 | $ 44,000 |
Accumulated amortization | (4,279) | (2,852) |
Net Balance | 39,721 | 41,148 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 25,000 | 25,000 |
Accumulated amortization | (2,679) | (1,786) |
Net Balance | 22,321 | 23,214 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 18,000 | 18,000 |
Accumulated amortization | (1,350) | (900) |
Net Balance | 16,650 | 17,100 |
Trade Name | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,000 | 1,000 |
Accumulated amortization | (250) | (166) |
Net Balance | $ 750 | $ 834 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense on Existing Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 4,279 | |
2021 | 5,704 | |
2022 | 5,538 | |
2023 | 5,371 | |
2024 | 5,371 | |
Thereafter | 13,458 | |
Net Balance | $ 39,721 | $ 41,148 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 28,455 | $ 24,000 |
Work in process | 17 | |
Finished goods: | ||
Manufactured finished goods | 57,838 | 70,923 |
Deferred inventory costs | 836 | 4,263 |
Total finished goods | 87,129 | 99,203 |
Valuation allowance for excess and obsolete inventory | (6,115) | (5,599) |
Total inventory | $ 81,014 | $ 93,604 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 90,971 | $ 90,141 |
Less: Accumulated depreciation and amortization | (56,740) | (54,231) |
Property and equipment, net | 34,231 | 35,910 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 22,127 | 22,294 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,384 | 4,380 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,965 | 2,794 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 40,592 | 40,002 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,091 | 3,091 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,765 | 4,765 |
Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 7,231 | 6,776 |
Trial Systems at Customers' Sites | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 5,816 | $ 6,039 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization expense on property and equipment | $ 3,347 | $ 2,396 |
Trial Systems | ||
Property Plant And Equipment [Line Items] | ||
Transfers from (to) inventory into (from) property and equipment | 237 | 109 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Transfers from (to) inventory into (from) property and equipment | $ 9 | $ (411) |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued compensation and related taxes | $ 12,735 | $ 18,540 |
Accrued warranty | 2,234 | 2,448 |
Dividends and equitable adjustments payable (see Note 12) | 555 | 750 |
Accrued customer incentives | 11 | 233 |
Other accrued expenses | 10,585 | 12,596 |
Total accrued expenses and other current liabilities | $ 26,120 | $ 34,567 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Standard product warranty description | The Company's products are covered by warranties for software and hardware for periods ranging from 90 days to one year. |
Extended product warranty description | The Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. |
Minimum | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Product warranties period for software and hardware | 90 days |
Extended product warranty period for renewals of maintenance and support contracts | 1 year |
Maximum | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Product warranties period for software and hardware | 1 year |
Extended product warranty period for renewals of maintenance and support contracts | 3 years |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Summary of Changes in Amount Reserved for Warranty Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | ||
Warranty reserve at beginning of period | $ 2,448 | $ 926 |
Provisions | 550 | 525 |
Charges | (764) | (574) |
Warranty reserve at end of period | $ 2,234 | $ 877 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Assets fair value | $ 62,116 | $ 65,738 |
Liabilities: | ||
Liabilities fair value | 199 | 314 |
Certificates of Deposit—Restricted Cash | ||
Assets: | ||
Assets fair value | 1,025 | 1,019 |
Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 60,735 | 53,763 |
Certificates of Deposit | ||
Assets: | ||
Assets fair value | 10,933 | |
Foreign Currency Forward Contracts | Derivative Financial Instruments, Assets | ||
Assets: | ||
Assets fair value | 356 | 23 |
Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 50 | |
SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | 199 | 264 |
Level 1 | ||
Assets: | ||
Assets fair value | 60,735 | 53,763 |
Level 1 | Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 60,735 | 53,763 |
Level 2 | ||
Assets: | ||
Assets fair value | 1,381 | 11,975 |
Liabilities: | ||
Liabilities fair value | 50 | |
Level 2 | Certificates of Deposit—Restricted Cash | ||
Assets: | ||
Assets fair value | 1,025 | 1,019 |
Level 2 | Certificates of Deposit | ||
Assets: | ||
Assets fair value | 10,933 | |
Level 2 | Foreign Currency Forward Contracts | Derivative Financial Instruments, Assets | ||
Assets: | ||
Assets fair value | 356 | 23 |
Level 2 | Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 50 | |
Level 3 | ||
Liabilities: | ||
Liabilities fair value | 199 | 264 |
Level 3 | SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | $ 199 | $ 264 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, transfers from Level 1 to Level 2 | $ 0 | $ 0 |
Fair value, assets, transfers from Level 2 to Level 1 | 0 | 0 |
Fair value, liabilities, transfers from Level 1 to Level 2 | 0 | 0 |
Fair value, liabilities, transfers from Level 2 to Level 1 | 0 | 0 |
Fair value, assets, transfers into Level 3 | 0 | 0 |
Fair value, assets, transfers out of Level 3 | 0 | 0 |
Fair value, liabilities, transfers into Level 3 | 0 | 0 |
Fair value, liabilities, transfers out of Level 3 | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Values of Stock Appreciation Rights (SARs) Liability (Details) - Level 3 - SARs - Share Based Compensation Liability - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of period | $ 264 | $ 1,387 |
Change in fair value | (65) | (660) |
Fair value at end of period | $ 199 | $ 727 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Thousands | Mar. 31, 2020USD ($) | Mar. 31, 2020AUD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) |
Australian Subsidiary | Cash Flow Hedges | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount | $ 7,883 | ||||
Australian Subsidiary | Cash Flow Hedges | Accumulated Other Comprehensive (Loss) Income | |||||
Derivatives Fair Value [Line Items] | |||||
Fair value of cash flow hedges | $ 0 | $ 0 | |||
Australian Subsidiary | Prepaid Expenses and Other Current Assets | Cash Flow Hedges | |||||
Derivatives Fair Value [Line Items] | |||||
Derivative asset | 356,000 | ||||
Foreign Currency Forward Contracts | Prepaid Expenses and Other Current Assets | |||||
Derivatives Fair Value [Line Items] | |||||
Derivatives asset fair value | 0 | 23,000 | |||
Foreign Currency Forward Contracts | Accrued Expenses And Other Current Liabilities | |||||
Derivatives Fair Value [Line Items] | |||||
Liability derivatives | 0 | 50,000 | |||
Foreign Currency Forward Contracts | Australian Subsidiary | |||||
Derivatives Fair Value [Line Items] | |||||
Outstanding notional amounts | $ 0 | € 0 | $ 900,000 | € 500,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 115.40% | 12.40% |
Benefit from income taxes | $ 8,719 | $ 2,170 |
Percentage of taxable income offset by NOL carryovers and carrybacks | 100.00% | |
Recognized tax benefit included in prepaid expenses | $ 9,310 | |
Deferred tax assets valuation allowance | 7,627 | |
Pre-tax net loss | $ 7,557 | $ 17,509 |
Debt - Schedule of Aggregate Pr
Debt - Schedule of Aggregate Principal Amount of Debt Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 296,814 | $ 297,644 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | 290,250 | 291,000 |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 6,564 | $ 6,644 |
Debt - Schedule of Current and
Debt - Schedule of Current and Non-Current Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current liabilities: | ||
Current portion of principal payment obligations | $ 9,564 | $ 9,644 |
Unamortized debt issuance costs, current portion | (1,115) | (1,120) |
Current portion of long-term debt, net of unamortized debt issuance costs | 8,449 | 8,524 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 287,250 | 288,000 |
Unamortized debt issuance costs, non-current portion | (2,968) | (3,244) |
Long-term debt, net of current portion and unamortized debt issuance costs | 284,282 | 284,756 |
Term Loans | ||
Current liabilities: | ||
Current portion of principal payment obligations | 3,000 | 3,000 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 287,250 | 288,000 |
Mortgage Loan | ||
Current liabilities: | ||
Current portion of principal payment obligations | $ 6,564 | $ 6,644 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 20, 2016USD ($) | Jul. 01, 2015USD ($)Installment | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 296,814,000 | $ 297,644,000 | ||||
JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount of increase in facilities | $ 70,000,000 | |||||
JPMorgan Chase Bank, N. A. | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate description | Borrowings under the facilities bear interest at a floating rate, which can be either a Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin. The applicable margin for borrowings under the term loan facility is 4.00% per annum for Eurodollar rate loans (subject to a 1.00% per annum interest rate floor) and 3.00% per annum for base rate loans. As a result of the completion of the Company’s IPO in December 2017, the applicable margin for borrowings under the revolving credit facility is 1.75% per annum for Eurodollar rate loans and 0.75% per annum for base rate loans, subject to reduction based on the Company’s maintaining of specified net leverage ratios. The interest rates payable under the facilities are subject to an increase of 2.00% per annum during the continuance of any payment default. | |||||
Debt instrument prepayment description | In addition, the Company is required to make mandatory prepayments under the facilities with respect to (i) 100% of the net cash proceeds from certain asset dispositions (including casualty and condemnation events) by the Company or certain of its subsidiaries, subject to certain exceptions and reinvestment provisions, (ii) 100% of the net cash proceeds from the issuance or incurrence of any additional debt by the Company or certain of its subsidiaries, subject to certain exceptions, and (iii) 50% of the Company’s excess cash flow, as defined in the credit agreement, subject to reduction upon its achievement of specified performance targets. | |||||
Percentage of net proceeds from asset dispositions to be used for mandatory prepayment | 100.00% | |||||
Percentage of net cash proceeds from issuances or incurrence of additional Debt to be used for mandatory prepayment | 100.00% | |||||
Percentage on excess cash flow for mandatory prepayments of debt | 50.00% | |||||
JPMorgan Chase Bank, N. A. | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility borrowing capacity utilized percentage | 30.00% | |||||
Line of credit facility borrowing capacity not utilized percentage | 30.00% | 30.00% | ||||
Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 290,250,000 | $ 291,000,000 | ||||
Term Loan Facility | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing amount under facility | $ 300,000,000 | |||||
Outstanding borrowings | $ 290,250,000 | $ 291,000,000 | ||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 4.00% | |||||
Debt instrument, interest rate description | As of March 31, 2020, the interest rate on the Term Loans was 5.00% per annum, which was based on a one-month Eurodollar rate at the applicable floor of 1.00% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2019, the interest rate on the Term Loans was 5.80% per annum, which was based on a one-month Eurodollar rate of 1.80% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. | |||||
Debt instrument, effective interest rate percentage | 5.00% | 5.80% | ||||
Debt issuance costs | $ 7,811,000 | |||||
Debt instrument, principal payment | $ 750,000 | $ 750,000 | ||||
Interest expense, including amortization of debt issuance costs | $ 4,448,000 | 4,958,000 | ||||
Debt instrument, maturity date | Dec. 20, 2023 | |||||
Original principal amount of term loan amortization percentage | 1.00% | |||||
Principal amount of loan | $ 300,000,000 | |||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate percentage | 4.00% | 4.00% | ||||
Debt instrument, effective interest rate percentage | 1.00% | 1.80% | ||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Floor Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 1.00% | |||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 3.00% | |||||
Commercial Mortgage Loan | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 6,564,000 | $ 6,644,000 | ||||
Debt instrument, interest rate stated percentage | 3.50% | |||||
Debt instrument, principal payment | 80,000 | 78,000 | ||||
Interest expense, including amortization of debt issuance costs | $ 60,000 | 63,000 | ||||
Debt instrument, maturity date | Jul. 1, 2020 | |||||
Principal amount of loan | $ 7,950,000 | |||||
Debt instrument, number of periodic payment installments | Installment | 60 | |||||
Debt instrument, principal and interest payment | $ 46,000 | |||||
Debt instrument payment, amortization period | 20 years | |||||
Debt issuance cost | $ 45,000 | |||||
Debt instrument, Covenant description | The Mortgage Loan is secured by the land and building purchased in March 2015 and subjects the Company to various affirmative, negative and financial covenants, including maintenance of a minimum debt service ratio. The Company was in compliance with all covenants of the Mortgage Loan as of March 31, 2020 and December 31, 2019. | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing amount under facility | $ 25,000,000 | |||||
Outstanding borrowings | $ 0 | 0 | ||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate increase | 2.00% | |||||
Payment of quarterly commitment fees percentage | 0.25% | |||||
Interest expense related to the fee for the unused amount | $ 15,000 | $ 16,000 | ||||
Debt instrument, maturity date | Dec. 20, 2021 | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Federal Funds Effective Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate percentage | 0.50% | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate percentage | 1.00% | |||||
Debt instrument, interest rate stated percentage | 1.75% | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 0.75% | |||||
Stand-by Letter of Credit | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, used as collateral amount | $ 1,295,000 | $ 1,343,000 |
Debt - Schedule of Aggregate Mi
Debt - Schedule of Aggregate Minimum Future Principal Payments of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2020 | $ 8,814 | |
2021 | 3,000 | |
2022 | 3,000 | |
2023 | 3,000 | |
2024 | 279,000 | |
Aggregate minimum future principal payments of debt | $ 296,814 | $ 297,644 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Cash Dividends Declared and Paid to Stockholders for Special Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2017 | May 10, 2017 | Dec. 27, 2016 | Jun. 17, 2016 | Nov. 30, 2014 | Mar. 31, 2019 |
Class Of Stock [Line Items] | ||||||
Dividends Paid | $ 865 | |||||
November 30, 2017 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Dividend Declaration Date | Nov. 30, 2017 | |||||
Dividends Paid | $ 865 | |||||
November 30, 2017 Special Dividend | Series B and Series C Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 5.8020 | |||||
May 10, 2017 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Dividend Declaration Date | May 10, 2017 | |||||
May 10, 2017 Special Dividend | Series B and Series C Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 11.7744 | |||||
December 27, 2016 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Dividend Declaration Date | Dec. 27, 2016 | |||||
December 27, 2016 Special Dividend | Series B and Series C Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 23.3058 | |||||
June 17, 2016 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Dividend Declaration Date | Jun. 17, 2016 | |||||
June 17, 2016 Special Dividend | Series B and Series C Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 5.8910 | |||||
November 30, 2014 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Dividend Declaration Date | Nov. 30, 2014 | |||||
November 30, 2014 Special Dividend | Series B and Series C Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 3.8346 | |||||
Common Stock | November 30, 2017 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 0.5802 | |||||
Common Stock | May 10, 2017 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 1.1774 | |||||
Common Stock | December 27, 2016 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 2.3306 | |||||
Common Stock | June 17, 2016 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 0.5891 | |||||
Common Stock | November 30, 2014 Special Dividend | ||||||
Class Of Stock [Line Items] | ||||||
Cash Dividend Declared per Share | $ 0.3835 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Feb. 21, 2019 | |
Class Of Stock [Line Items] | ||||
Dividends to be paid | $ 0 | $ 0 | ||
Common Stock | ||||
Class Of Stock [Line Items] | ||||
Stock repurchase program, common stock remaining authorized to be repurchased | $ 70,241,000 | |||
Stock repurchase program, stock repurchased, shares | 1,216,000 | 0 | ||
Stock repurchase program, stock repurchased, value | $ 2,998,000 | |||
Common Stock | Maximum | ||||
Class Of Stock [Line Items] | ||||
Stock repurchase program, common stock authorized to be repurchased | $ 75,000,000 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Equitable Adjustment Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2017 | May 10, 2017 | Dec. 27, 2016 | Jun. 17, 2016 | Nov. 30, 2014 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||||||||
Equitable Adjustment Payments | $ 865 | |||||||
Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable Adjustment Payments | $ 176 | 761 | ||||||
Vested Equity Awards | Accrued Expenses And Other Current Liabilities | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable Adjustment Liability | 555 | $ 731 | ||||||
November 30, 2017 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Nov. 30, 2017 | |||||||
Equitable Adjustment Payments | 865 | |||||||
November 30, 2017 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Nov. 30, 2017 | |||||||
Equitable Adjustment per share | $ 0.5802 | |||||||
Year of Final Vesting | 2021 | |||||||
Equitable Adjustment Payments | 38 | 122 | ||||||
November 30, 2017 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable Adjustment Liability | 139 | 177 | ||||||
May 10, 2017 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | May 10, 2017 | |||||||
May 10, 2017 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | May 10, 2017 | |||||||
Equitable Adjustment per share | $ 1.1774 | |||||||
Year of Final Vesting | 2021 | |||||||
Equitable Adjustment Payments | 33 | 170 | ||||||
May 10, 2017 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable Adjustment Liability | 149 | 182 | ||||||
December 27, 2016 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Dec. 27, 2016 | |||||||
December 27, 2016 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Dec. 27, 2016 | |||||||
Equitable Adjustment per share | $ 2.3306 | |||||||
Year of Final Vesting | 2020 | |||||||
Equitable Adjustment Payments | 93 | 391 | ||||||
December 27, 2016 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable Adjustment Liability | 242 | 335 | ||||||
June 17, 2016 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Jun. 17, 2016 | |||||||
June 17, 2016 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Jun. 17, 2016 | |||||||
Equitable Adjustment per share | $ 0.5891 | |||||||
Year of Final Vesting | 2020 | |||||||
Equitable Adjustment Payments | 12 | 77 | ||||||
June 17, 2016 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable Adjustment Liability | $ 25 | $ 37 | ||||||
November 30, 2014 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Nov. 30, 2014 | |||||||
November 30, 2014 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend Declaration Date | Nov. 30, 2014 | |||||||
Equitable Adjustment per share | $ 0.3835 | |||||||
Year of Final Vesting | 2018 | |||||||
Equitable Adjustment Payments | $ 1 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash proceeds received upon the exercise of options | $ 312 | $ 1,498 | |
Fair value of SAR liability | 199 | $ 314 | |
Unrecognized compensation cost | $ 25,143 | ||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 9 months 25 days | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares earned upon vesting | 983,000 | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value per share of options | $ 0.66 | $ 3.33 | |
Cash proceeds received upon the exercise of options | $ 312 | $ 1,498 | |
Intrinsic value of stock options exercised | $ 273 | $ 4,770 | |
Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Award expiration period | 10 years | ||
Number of award outstanding | 220,000 | ||
Number of award unvested | 0 | ||
Number of award exercisable | 220,000 | ||
Fair value of SAR | $ 0.90 | ||
Stock Appreciation Rights | Accrued Expenses And Other Current Liabilities | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of SAR liability | $ 199 | $ 264 | |
Performance-Based Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Number of shares granted | 983,000 | ||
Number of shares vested | 0 | ||
2017 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for grant | 17,143,000 | ||
Number of remaining shares available for grant | 11,225,000 | ||
2011 and 2017 Stock Incentive Plan | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of award outstanding | 4,641,000 | 1,653,000 | |
Number of shares granted | 3,435,000 | ||
Number of shares vested | 353,000 | ||
2011 and 2017 Stock Incentive Plan | Restricted Stock Units | Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of common stock in settlement of employee tax withholding obligations | 111,000 | 76,000 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Outstanding Stock Option and Information Related to Stock Options Activity (Details) - 2017 Stock Incentive Plan - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 8,250 | |
Number of Shares, Granted | 18 | |
Number of Shares, Exercised | (150) | |
Number of Shares, Forfeited | (400) | |
Number of Shares, Outstanding, Ending Balance | 7,718 | 8,250 |
Number of Shares, Options exercisable at March 31, 2020 | 6,668 | |
Number of Shares, Vested or expected to vest at March 31, 2020 | 7,668 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 7.73 | |
Weighted-Average Exercise Price, Granted | 2.23 | |
Weighted-Average Exercise Price, Exercised | 2.08 | |
Weighted-Average Exercise Price, Forfeited | 8.32 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 7.80 | $ 7.73 |
Weighted-Average Exercise Price, Options exercisable at March 31, 2020 | 6.88 | |
Weighted-Average Exercise Price, Vested or expected to vest at March 31, 2020 | $ 7.77 | |
Weighted-Average Remaining Contractual Term, Outstanding | 5 years 5 months 4 days | 5 years 7 months 24 days |
Weighted-Average Remaining Contractual Term, Options exercisable at March 31, 2020 | 5 years 10 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at March 31, 2020 | 5 years 4 months 28 days | |
Aggregate Intrinsic Value, Outstanding | $ 2,901 | $ 4,235 |
Aggregate Intrinsic Value, Options exercisable at March 31, 2020 | 2,878 | |
Aggregate Intrinsic Value, Vested or expected to vest at March 31, 2020 | $ 2,898 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.70% | 2.50% |
Expected term (in years) | 6 years 1 month 6 days | |
Expected volatility | 29.30% | |
Expected volatility, Minimum | 30.50% | |
Expected volatility, Maximum | 30.60% | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 1 month 6 days | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 2 months 12 days |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of RSU Activity (Details) - 2011 and 2017 Stock Incentive Plan - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 1,653 |
Number of Shares, Granted | shares | 3,435 |
Number of Shares, Vested | shares | (353) |
Number of Shares, Forfeited | shares | (94) |
Number of Shares, Unvested, Ending Balance | shares | 4,641 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 11.38 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 3.23 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 12.16 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 11.88 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 5.83 |
Aggregate Fair Value, Vested | $ | $ 1,453 |
Stock-based Compensation - As_2
Stock-based Compensation - Assumptions of Estimated Based on Monte Carlo Simulation Model (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.70% | 2.50% |
Expected volatility | 29.30% | |
Expected dividend yield | 0.00% | 0.00% |
Performance-Based Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.20% | |
Expected volatility | 70.00% | |
Expected dividend yield | 0.00% | |
Cost of equity | 11.00% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2,437 | $ 1,900 |
Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 31 | 71 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 437 | 141 |
Selling, General and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,969 | $ 1,688 |
Net Income (Loss) per Share - S
Net Income (Loss) per Share - Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net (loss) income attributable to common stockholders, basic and diluted | $ 1,162 | $ (15,339) |
Denominator: | ||
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic | 83,990 | 83,323 |
Dilutive effect of stock options | 885 | |
Dilutive effect of restricted stock units | 134 | |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted | 85,009 | 83,323 |
Net (loss) income per share attributable to common stockholders: | ||
Basic | $ 0.01 | $ (0.18) |
Diluted | $ 0.01 | $ (0.18) |
Net Income (Loss) per Share -_2
Net Income (Loss) per Share - Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from computation of diluted net income per share | 5,941 | 8,957 |
Unvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from computation of diluted net income per share | 2,527 | 1,440 |
Unvested Performance-Based Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from computation of diluted net income per share | 983 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 83,623 | $ 35,486 |
North America - United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 29,440 | 14,558 |
North America | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 33,952 | 18,431 |
Europe, Middle East and Africa | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 14,098 | 7,366 |
North America - Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 4,512 | 3,873 |
Asia-Pacific - Australia | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 21,704 | |
Asia-Pacific - Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 11,484 | 4,724 |
Asia-Pacific | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 33,188 | 4,724 |
Latin America | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 2,385 | $ 4,965 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2020Country | |
Other than United States and Australia | |
Disaggregation Of Revenue [Line Items] | |
Number of countries represents 10% or more of total revenue | 0 |
Revenue | Geographic Concentration Risk | |
Disaggregation Of Revenue [Line Items] | |
Concentration risk percentage | 10.00% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Disaggregates of Revenue Based on Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 83,623 | $ 35,486 |
Wireless | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 20,657 | 228 |
Fixed Telecom | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 17,932 | 44 |
Cable | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 35,169 | 26,381 |
Product | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 73,758 | 26,653 |
Service | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 9,865 | $ 8,833 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue remaining performance obligation amount | $ 23,000 | ||
Prepaid Expenses and Other Current Assets | |||
Disaggregation Of Revenue [Line Items] | |||
Short-term capitalized contract costs | 305 | $ 585 | |
Contract assets | 110 | 50 | |
Other Assets | |||
Disaggregation Of Revenue [Line Items] | |||
Long-term capitalized contract costs | 97 | $ 70 | |
Deferred revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 14,940 | $ 7,269 | |
Selling, General and Administrative Expenses | |||
Disaggregation Of Revenue [Line Items] | |||
Amortization of capitalized contract costs | 253 | 66 | |
Interest Income | |||
Disaggregation Of Revenue [Line Items] | |||
Other revenue | $ 34 | $ 26 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details1) | Mar. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue remaining performance obligation, percentage | 82.00% |
Revenue, remaining performance obligation, expected timing of satisfaction period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 2 years |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 5 years |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Property and Equipment, Net by Location (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 34,231 | $ 35,910 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 24,721 | 25,583 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,311 | 3,277 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,611 | 4,041 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 2,588 | $ 3,009 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - Rongke Xie - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2020 | Feb. 28, 2019 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Compensation paid | $ 22 | $ 23 | |||
Restricted Stock Units | |||||
Related Party Transaction [Line Items] | |||||
Number of shares granted | 90 | 8 | 5 | ||
Vesting period | 4 years | ||||
Aggregate fair value vested | $ 400 | ||||
Selling, general and administrative expenses recognized | $ 13 | $ 9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | ||
Jul. 03, 2019lawsuit | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||||
Rent expense | $ 757,000 | $ 327,000 | ||
Deferred rent liability | 177,000 | $ 212,000 | ||
Indemnification obligations material claims, outstanding | 0 | $ 0 | ||
Number of lawsuits | lawsuit | 2 | |||
Accrued contingency | $ 0 | |||
United States | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
China | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Hong Kong | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Spain | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Australia | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
United Kingdom | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Ireland | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2026 | |||
Termination period of lease | 2021 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 1,823 |
2021 | 1,422 |
2022 | 112 |
2023 | 5 |
Total | $ 3,362 |