Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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 | 86,006,357 | |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 156,460 | $ 157,455 |
Accounts receivable, net of provision for doubtful accounts of $121 and $58 as of September 30, 2021 and December 31, 2020, respectively | 80,863 | 94,124 |
Inventory | 91,853 | 101,204 |
Prepaid expenses and other current assets | 4,485 | 3,864 |
Prepaid income taxes | 19,956 | 14,087 |
Total current assets | 353,617 | 370,734 |
Property and equipment, net | 24,647 | 28,880 |
Accounts receivable, net of current portion | 143 | |
Deferred tax assets | 1,704 | 1,150 |
Goodwill | 50,177 | 50,177 |
Intangible assets, net | 32,661 | 35,844 |
Other assets | 7,435 | 6,038 |
Total assets | 470,241 | 492,966 |
Current liabilities: | ||
Accounts payable | 22,841 | 41,203 |
Accrued expenses and other current liabilities | 33,368 | 39,793 |
Accrued income taxes | 4,020 | 7,463 |
Deferred revenue | 15,857 | 15,531 |
Current portion of long-term debt, net of unamortized debt issuance costs | 8,421 | 15,171 |
Total current liabilities | 84,507 | 119,161 |
Accrued income taxes, net of current portion | 11,359 | 9,520 |
Deferred tax liabilities | 6,504 | 7,282 |
Deferred revenue, net of current portion | 5,072 | 3,520 |
Long-term debt, net of current portion and unamortized debt issuance costs | 274,672 | 276,085 |
Other liabilities, net of current portion | 1,582 | 1,024 |
Total liabilities | 383,696 | 416,592 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized as of September 30, 2021 and December 31, 2020; no shares issued and outstanding as of September 30, 2021 and December 31, 2020 | ||
Common stock, $0.001 par value; 500,000 shares authorized; 87,678 and 85,329 shares issued as of September 30, 2021 and December 31, 2020, respectively; 85,956 and 83,607 shares outstanding as of September 30, 2021 and December 31, 2020, respectively | 88 | 85 |
Treasury stock, at cost; 1,722 shares | (4,826) | (4,826) |
Additional paid-in capital | 191,399 | 183,041 |
Accumulated other comprehensive income | 467 | 337 |
Accumulated deficit | (100,583) | (102,263) |
Total stockholders’ equity | 86,545 | 76,374 |
Total liabilities and stockholders’ equity | $ 470,241 | $ 492,966 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Provision for doubtful accounts | $ 121 | $ 58 |
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 | 87,678,000 | 85,329,000 |
Common stock, shares outstanding | 85,956,000 | 83,607,000 |
Treasury stock, shares | 1,722,000 | 1,722,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 99,219 | $ 105,747 | $ 296,226 | $ 272,720 |
Cost of revenue: | ||||
Total cost of revenue | 58,595 | 53,153 | 154,047 | 134,343 |
Gross profit | 40,624 | 52,594 | 142,179 | 138,377 |
Operating expenses: | ||||
Research and development | 21,578 | 21,823 | 63,479 | 63,722 |
Selling, general and administrative | 21,029 | 21,630 | 64,492 | 67,731 |
Total operating expenses | 42,607 | 43,453 | 127,971 | 131,453 |
(Loss) income from operations | (1,983) | 9,141 | 14,208 | 6,924 |
Other income (expense): | ||||
Interest income | 80 | 170 | 297 | 847 |
Interest expense | (3,969) | (3,771) | (11,886) | (12,706) |
(Loss) gain on foreign currency, net | (375) | (6) | (1,353) | 674 |
Other income, net | 83 | 338 | 634 | 435 |
Total other income (expense), net | (4,181) | (3,269) | (12,308) | (10,750) |
(Loss) income before (benefit from) provision for income taxes | (6,164) | 5,872 | 1,900 | (3,826) |
(Benefit from) provision for income taxes | (5,288) | 2,399 | 220 | (5,433) |
Net (loss) income | (876) | 3,473 | 1,680 | 1,607 |
Other comprehensive (loss) income—foreign currency translation adjustment, net of tax | (127) | 1,334 | 130 | 916 |
Other comprehensive loss—gain on foreign currency hedge net of tax | (527) | |||
Comprehensive (loss) income | $ (1,003) | $ 4,280 | $ 1,810 | $ 2,523 |
Net (loss) income per share attributable to common stockholders: | ||||
Basic | $ (0.01) | $ 0.04 | $ 0.02 | $ 0.02 |
Diluted | $ (0.01) | $ 0.04 | $ 0.02 | $ 0.02 |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders: | ||||
Basic | 85,660 | 83,302 | 84,985 | 83,437 |
Diluted | 85,660 | 85,466 | 88,948 | 85,370 |
Product | ||||
Revenue: | ||||
Total revenue | $ 87,752 | $ 93,741 | $ 262,019 | $ 239,627 |
Cost of revenue: | ||||
Total cost of revenue | 57,372 | 51,947 | 150,515 | 130,602 |
Service | ||||
Revenue: | ||||
Total revenue | 11,467 | 12,006 | 34,207 | 33,093 |
Cost of revenue: | ||||
Total cost of revenue | $ 1,223 | $ 1,206 | $ 3,532 | $ 3,741 |
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 Income (Loss) | Accumulated Deficit |
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 | |||||
Balance Treasury at Dec. 31, 2019 | $ (1,795) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | 317 | $ 1 | 316 | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 912 | |||||
Foreign currency translation adjustment, net of tax | 916 | 916 | ||||
Repurchases of treasury shares | (3,031) | $ (3,031) | ||||
Repurchases of treasury shares, shares | 1,227 | |||||
Stock-based compensation | 9,505 | 9,505 | ||||
Net income (loss) | 1,607 | 1,607 | ||||
Balances at Sep. 30, 2020 | 47,878 | $ 85 | 179,382 | (1,306) | (125,457) | |
Balances, shares at Sep. 30, 2020 | 85,245 | |||||
Balance Treasury, shares at Sep. 30, 2020 | 1,722 | |||||
Balance Treasury at Sep. 30, 2020 | $ (4,826) | |||||
Balances at Jun. 30, 2020 | 39,712 | $ 85 | 175,496 | (2,113) | (128,930) | |
Balances, shares at Jun. 30, 2020 | 84,856 | |||||
Balance Treasury, shares at Jun. 30, 2020 | 1,722 | |||||
Balance Treasury at Jun. 30, 2020 | $ (4,826) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | 390 | 390 | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 389 | |||||
Cash flow hedges | (527) | (527) | ||||
Foreign currency translation adjustment, net of tax | 1,334 | 1,334 | ||||
Stock-based compensation | 3,496 | 3,496 | ||||
Net income (loss) | 3,473 | 3,473 | ||||
Balances at Sep. 30, 2020 | 47,878 | $ 85 | 179,382 | (1,306) | (125,457) | |
Balances, shares at Sep. 30, 2020 | 85,245 | |||||
Balance Treasury, shares at Sep. 30, 2020 | 1,722 | |||||
Balance Treasury at Sep. 30, 2020 | $ (4,826) | |||||
Balances at Dec. 31, 2020 | $ 76,374 | $ 85 | 183,041 | 337 | (102,263) | |
Balances, shares at Dec. 31, 2020 | 85,329 | |||||
Balance Treasury, shares at Dec. 31, 2020 | 1,722 | 1,722 | ||||
Balance Treasury at Dec. 31, 2020 | $ 4,826 | $ (4,826) | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (2,784) | $ 3 | (2,787) | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 2,349 | |||||
Foreign currency translation adjustment, net of tax | 130 | 130 | ||||
Stock-based compensation | 11,145 | 11,145 | ||||
Net income (loss) | 1,680 | 1,680 | ||||
Balances at Sep. 30, 2021 | $ 86,545 | $ 88 | 191,399 | 467 | (100,583) | |
Balances, shares at Sep. 30, 2021 | 87,678 | |||||
Balance Treasury, shares at Sep. 30, 2021 | 1,722 | 1,722 | ||||
Balance Treasury at Sep. 30, 2021 | $ 4,826 | $ (4,826) | ||||
Balances at Jun. 30, 2021 | 81,957 | $ 87 | 185,809 | 594 | (99,707) | |
Balances, shares at Jun. 30, 2021 | 87,116 | |||||
Balance Treasury, shares at Jun. 30, 2021 | 1,722 | |||||
Balance Treasury at Jun. 30, 2021 | $ (4,826) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | 1,705 | $ 1 | 1,704 | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 562 | |||||
Foreign currency translation adjustment, net of tax | (127) | (127) | ||||
Stock-based compensation | 3,886 | 3,886 | ||||
Net income (loss) | (876) | (876) | ||||
Balances at Sep. 30, 2021 | $ 86,545 | $ 88 | $ 191,399 | $ 467 | $ (100,583) | |
Balances, shares at Sep. 30, 2021 | 87,678 | |||||
Balance Treasury, shares at Sep. 30, 2021 | 1,722 | 1,722 | ||||
Balance Treasury at Sep. 30, 2021 | $ 4,826 | $ (4,826) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows provided by operating activities: | |||
Net income (loss) | $ 1,680 | $ 1,607 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,986 | 13,660 | |
Stock-based compensation | 11,245 | 9,498 | |
Deferred income taxes | (1,322) | (1,834) | |
Increase in provision for doubtful accounts | 63 | 18 | |
Change in provision for excess and obsolete inventory | (98) | 1,290 | |
Gain on disposal of assets | 29 | 11 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 13,194 | 27,537 | |
Inventory | 9,302 | (6,617) | |
Prepaid expenses and other assets | (1,648) | 3,004 | |
Prepaid income taxes | (5,873) | (9,763) | |
Accounts payable | (17,553) | 13,764 | |
Accrued expenses and other current liabilities | (6,074) | 973 | |
Accrued income taxes | (1,601) | 2,467 | |
Deferred revenue | 1,867 | (3,971) | |
Net cash provided by operating activities | 15,197 | 51,644 | |
Cash flows used in investing activities: | |||
Purchases of property and equipment | (2,979) | (4,102) | |
Purchases of software licenses | (1,425) | ||
Net cash used in investing activities | (4,404) | (4,102) | |
Cash flows used in financing activities: | |||
Principal repayments of debt | (9,025) | (8,893) | |
Borrowings on revolving credit facility | 6,500 | ||
Proceeds from exercise of stock options | 3,532 | 957 | |
Employee taxes paid related to net share settlement of equity awards | (6,315) | (639) | |
Payments of dividends and equitable adjustments | (97) | (661) | |
Repurchases of treasury stock | (3,031) | ||
Net cash used in financing activities | (11,905) | (5,767) | |
Effect of exchange rate changes on cash and cash equivalents | 111 | 763 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,001) | 42,538 | |
Cash, cash equivalents and restricted cash at beginning of period | 158,461 | 114,657 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 157,460 | 157,195 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 12,167 | 9,226 | |
Cash paid for income taxes | 8,288 | 2,306 | |
Supplemental disclosures of non-cash operating, investing and financing activities: | |||
Purchases of property and equipment included in accounts payable | 179 | 673 | |
Unpaid equitable adjustments included in accrued expenses and other current liabilities | $ 1 | $ 85 | |
[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 unaudited condensed consolidated statements of cash flows. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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 physical, virtual and cloud-native 5G broadband and customer premise networking equipment for public and private high-speed data and multi-service communications networks. The Company’s core and edge broadband technology enables communications service providers and enterprises to cost-effectively and dynamically increase data network speed, add bandwidth capacity and new services, 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 service provider (“CSP”) industry. These risks include, but are not limited to, the level of capital spending by the CSPs, a lengthy sales cycle, dependence on the development of new products and services, unfavorable economic and market conditions, 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 CSPs 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. 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 Company’s 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 is required to adopt the new or revised standard at or prior to the time private companies are required to 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 September 30, 2021, the condensed consolidated statements of operations and comprehensive (loss) income for the three and nine months ended September 30, 2021 and 2020, the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020 and the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2021 and 2020 are unaudited. The financial data and other information disclosed in these notes related to the three and nine months ended September 30, 2021 and 2020 are also unaudited. The accompanying condensed consolidated balance sheet as of December 31, 2020 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2021 (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 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, 2021 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 | 9 Months Ended |
Sep. 30, 2021 | |
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, the recoverability of net deferred tax assets, valuations of uncertain tax positions, 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 COVID-19 pandemic 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 which could have a material effect upon the estimates and judgments relied upon by management in preparing these condensed consolidated financial statements. While the Company remains fully operational, during the three and nine months ended September 30, 2021, the effects of the COVID-19 pandemic on the global supply chain had a significant adverse effect on the Company’s financial results. In particular, certain of the Company’s products utilize components, for which there has been increased global demand. As a result, throughout 2021, and increasingly during the three months ended September 30, 2021, the Company began to see shortages of supply that resulted in the Company’s inability to fulfill certain customer orders within normal lead times. This adversely impacted the Company’s revenue and operating results for the three and nine months ended September 30, 2021. While the Company continues to work with its supply chain, contract manufacturers, and customers to minimize the extent of such impacts, the Company expects the effects of global supply chain issues to continue and cannot predict when such effects will subside. This may prevent the Company from being able to fulfill its customers’ orders in a timely manner or at all, which could lead to one or more of its customers cancelling their orders. At this time the Company is neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. The Company intends to continue to monitor its business very closely for any effects of COVID-19 for as long as necessary. 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 September 30, 2021 and December 31, 2020, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash as of September 30, 2021 and December 31, 2020 consisted of a certificate of deposit of $1,000 and $1,006, 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: September 30, 2021 September 30, 2020 Cash and cash equivalents $ 156,460 $ 156,191 Restricted cash included in other assets 1,000 1,004 $ 157,460 $ 157,195 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 may, in limited circumstances, grant payment terms longer than one year. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. 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. Accounts receivable as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Current portion of accounts receivable, net: Accounts receivable, net $ 80,719 $ 93,480 Accounts receivable, extended payment terms 144 644 80,863 94,124 Accounts receivable, net of current portion: Accounts receivable, extended payment terms — 143 $ 80,863 $ 94,267 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 customer, 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 (loss) income. As of September 30, 2021 and December 31, 2020, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the nine months ended September 30, 2021 and 2020, 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 Revenue Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Customer A 24 % 13 % 20 % * Customer B * 27 % * 23 % Customer C * * 11 % * Accounts Receivable, Net September 30, 2021 December 31, 2020 Customer A 21 % * Customer D * 17 % * 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. Although the Company seeks to reduce dependence on those single or limited source suppliers, 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. Stock-Based Compensation The Company measures stock options and other stock-based awards granted to employees and directors based on the fair value on the date of grant and recognizes compensation expense of those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. Generally, the Company issues stock options with only service-based vesting conditions and records the expense for these awards using the straight-line method. The Company classifies stock-based compensation expense in its consolidated statements of operations and comprehensive (loss) income in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. The Company recognizes compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, the Company has considered its historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from the Company’s estimate, the Company may be required to record adjustments to stock-based compensation expense in future periods. The Company estimates the fair value of each stock option grant on the date of grant using the Black-Scholes option pricing model. The Company was a private company until December 14, 2017 and lacks sufficient company-specific historical and implied volatility information for its stock. Therefore, for all options granted in 2020 or before, the Company estimated its expected stock volatility based on the historical volatility of publicly traded peer companies. Beginning with options granted in 2021, the Company estimates its expected stock volatility using a weighted-average calculation based on the historical volatility of the Company and publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company does not have a history of declaring or paying cash dividends, except for the special cash dividends declared in November 2014, June 2016, December 2016, May 2017 and November 2017, and in those circumstances the board of directors approved cash dividends to be paid to holders of the Company’s stock options, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”) upon vesting as an equitable adjustment to the holders of such instruments. The Company has also granted SARs to certain employees, which require the Company to pay in cash upon exercise an amount equal to the product of the excess of the per share fair market value of the Company’s common stock on the date of exercise over the exercise price, multiplied by the number of shares of common stock with respect to which the SAR is exercised. Because these awards may require the Company to settle the awards in cash, the Company accounts for them as a liability in the Company’s consolidated balance sheets. The Company recognizes the liability related to these awards, as well as related compensation expense over the period during which services are rendered until completed. As all SARs are now fully vested, the Company continues to remeasure the fair market value of the liability until the award is either exercised or canceled, with changes in the fair value of the liability recorded in the consolidated statements of operations and comprehensive (loss) income. Impact of Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Impact of Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Amendments to FASB Accounting Standards Codification In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Other Other than the disclosures above, there have been no changes to the significant accounting policies disclosed in 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, 2020. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Intangible assets, net consisted of the following at September 30, 2021 and December 31, 2020, respectively: Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (8,037 ) $ 16,963 Customer Relationships 18,000 (4,050 ) 13,950 Trade Name 1,000 (747 ) 253 Purchased software 1,817 (322 ) 1,495 Totals as of September 30, 2021 $ 45,817 $ (13,156 ) $ 32,661 Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (5,358 ) $ 19,642 Customer Relationships 18,000 (2,700 ) 15,300 Trade Name 1,000 (498 ) 502 Purchased software 432 (32 ) 400 Totals as of December 31, 2020 $ 44,432 $ (8,588 ) $ 35,844 As of September 30, 2021, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, Remainder of 2021 $ 1,532 2022 5,958 2023 5,760 2024 5,656 2025 5,651 Thereafter 8,104 $ 32,661 A summary of amortization expense recorded during the three and nine months ended September 30, 2021 and 2020 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Product cost of revenue $ 893 $ 893 $ 2,679 $ 2,679 Research and development 105 — 290 — Selling, general and administrative 533 533 1,599 1,600 Totals $ 1,531 $ 1,426 $ 4,568 $ 4,279 The Company’s goodwill is the result of its acquisition of NetComm on July 1, 2019 and represents the excess of purchase price over the estimated fair value of net assets acquired. There has been no change to the $50,177 carrying amount of goodwill since December 31, 2020. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory as of September 30, 2021 and December 31, 2020 September 30, 2021 December 31, 2020 Raw materials $ 49,297 $ 50,904 Work in process — 19 Finished goods: Manufactured finished goods 41,730 49,764 Deferred inventory costs 826 517 $ 91,853 $ 101,204 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5 . Property and Equipment Property and equipment as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Computers and purchased software $ 25,284 $ 24,865 Leasehold improvements 4,185 4,148 Furniture and fixtures 2,670 2,644 Machinery and equipment 37,427 36,701 Land 3,091 3,091 Building 4,765 4,765 Building improvements 7,282 7,244 Trial systems at customers’ sites 4,232 5,300 88,936 88,758 Less: Accumulated depreciation and amortization (64,289 ) (59,878 ) $ 24,647 $ 28,880 During the nine months ended September 30, 2021 and 2020, the Company transferred trial systems into inventory from property and equipment with values of $1,145 and $690, respectively, net of transfers of trial systems to cost of revenue. In addition, the Company transferred $325 and $766 of equipment into inventory from property and equipment during the nine months ended September 30, 2021 and 2020, respectively. D epreciation and amortization expense on property and equipment totaled $2,258 and $2,968 for the three months ended September 30, 2021 and 2020, respectively, and $7,418 and $9,370 for the nine months ended September 30, 2021 and 2020, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Accrued compensation and related taxes $ 16,919 $ 22,785 Inventory-related accruals 4,619 855 Accrued warranty 2,483 2,354 Other accrued expenses 9,347 13,799 $ 33,368 $ 39,793 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 nine months ended September 30, 2021 and 2020 is as follows: Nine Months Ended September 30, 2021 2020 Warranty reserve at beginning of period $ 2,354 $ 2,448 Provisions 2,015 2,054 Charges (1,886 ) (2,103 ) Warranty reserve at end of period $ 2,483 $ 2,399 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The following tables present information about the fair value of the Company’s financial assets and liabilities as of September 30, 2021 and December 31, 2020 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of September 30, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,000 $ — $ 1,000 Money market mutual funds 127,221 — — 127,221 Foreign currency forward contracts — 24 — 24 $ 127,221 $ 1,024 $ — $ 128,245 Liabilities: SARs $ — $ — $ 458 $ 458 $ — $ — $ 458 $ 458 Fair Value Measurements as of December 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,006 $ — $ 1,006 Money market mutual funds 114,404 — — 114,404 $ 114,404 $ 1,006 $ — $ 115,410 Liabilities: SARs $ — $ — $ 493 $ 493 $ — $ — $ 493 $ 493 During the nine months ended September 30, 2021 and 2020, 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 nine months ended September 30, 2021 from those included in the Company’s consolidated financial statements for the year ended December 31, 2020. The following table provides a summary of changes in the fair values of the Company’s SARs liability, for which fair value is determined by Level 3 inputs: Nine Months Ended September 30, 2021 2020 Fair value at beginning of period $ 493 $ 264 Change in fair value 100 (7 ) Exercises (135 ) — Fair value at end of period $ 458 $ 257 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 8 . 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 September 30, 2021, the Company had foreign currency forward contracts outstanding with notional amounts totaling 1,379 Euros maturing in the fourth quarter of 2021 and the first quarter of 2022. As of December 31, 2020, The Company’s foreign currency forward contracts described above economically hedged certain risks but were not designated as hedges for financial reporting purposes, and accordingly, all changes in the fair value of the derivative instruments were recorded as unrealized foreign currency transaction gains or losses and were included in the condensed consolidated statements of operations and comprehensive (loss) income as a component of other income (expense). The Company records derivative instruments in the condensed consolidated balance sheet at their fair values. As of September 30, 2021, the Company recorded an asset of $24 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, the Company utilizes 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. The Company does not engage in foreign currency speculation. The Company designed its foreign currency risk management strategy principally 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 that utilize foreign currency forward contracts to hedge specific forecasted transactions of its foreign subsidiaries with the goal of protecting its budgeted expenses against foreign currency exchange rate changes compared to its budgeted rates. During the three months ended September 30, 2020, the Company settled one cash flow hedge with a notional amount of 5,000 AUD to hedge certain Australian dollar cash flows incurred during the period. The amount of gain reclassified from other comprehensive (loss) income for the three months ended September 30, 2020 was $527. The full amount of the fair value of the derivatives on the settlement date of $725 was recognized as $57 cost of goods sold, $353 research and development expense and $315 selling, general and administrative expense in the condensed consolidated statement of comprehensive (loss) income for the three months ended September 30, 2020. During the nine months ended September 30, 2020 The Company did not have any cash flow hedges outstanding as of September 30, 2021 and December 31, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company’s effective income tax rate was 85.8% and 40.9% for the three months ended September 30, 2021 and 2020, respectively. The (benefit from) provision for income taxes was $(5,288) and $2,399 for the three months ended September 30, 2021 and 2020, respectively. The change in the (benefit from) provision for income taxes was primarily due to a discrete benefit of ($7,097) recorded in the three months ended September 30, 2021 related to a change in estimate of the Company’s prior year net operating loss that is able to be carried back as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The change in the (benefit from) provision for income taxes was also impacted by changes in the jurisdictional mix of earnings period over period. The Company’s effective income tax rate was 11.6% and 142.0% for the nine months ended September 30, 2021 and 2020, respectively. The provision for (benefit from) income taxes was $220 and $(5,433) for the nine months ended September 30, 2021 and 2020, respectively. The change in the provision for (benefit from) income taxes was primarily due to a discrete tax benefit of $ (9,310) recorded during the nine months ended September 30, 2020 associated with the enactment of the CARES Act, partially offset by a discrete benefit of ($7,097) recorded during the nine months ended September 30, 2021 associated with a change in estimate of the Company’s prior year net operating loss that is able to be carried back as part of the CARES Act. The change in the provision for (benefit from) income taxes was also impacted by changes in the jurisdictional mix of earnings period over period. The (benefit from) provision for income taxes for the three and nine months ended September 30, 2021 and 2020 differed from the federal statutory rate primarily due to the geographical mix of earnings and related foreign tax rate differential, permanent differences, research and development tax credits, foreign tax credits, the valuation allowance maintained against certain deferred tax assets and withholding taxes. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt The aggregate principal amount of debt outstanding as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, December 31, 2021 2020 Term loan $ 278,975 $ 288,000 Revolving credit facility 6,500 6,500 Total principal amount of debt outstanding $ 285,475 $ 294,500 Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, December 31, 2021 2020 Current liabilities: Term loan $ 3,000 $ 9,775 Revolving credit facility 6,500 6,500 Current portion of principal payment obligations 9,500 16,275 Unamortized debt issuance costs, current portion (1,079 ) (1,104 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 8,421 $ 15,171 Non-current liabilities: Term loan $ 275,975 $ 278,225 Unamortized debt issuance costs, non-current portion (1,303 ) (2,140 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 274,672 $ 276,085 As of September 30, 2021, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, Remainder of 2021 $ 7,250 2022 3,000 2023 275,225 Thereafter — $ 285,475 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 September 30, 2021 and December 31, 2020, $278,975 and $288,000 in principal amount, respectively, were outstanding under the term loan facility (the “Term Loan”). As of September 30, 2021 and December 31, 2020, the Company had outstanding borrowings under the revolving credit facility of $6,500 Subsequent Events 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. 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 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 September 30, 2021 and December 31, 2020, the interest rate on the Term Loans was 5.00% per annum, which was based on a one-month and six-month Eurodollar rate, respectively, at the applicable floor of 1.00% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of September 30, 2021, the interest rate on the revolving credit facility was 1.83% per annum, which was based on a one-month Eurodollar rate of 0.08% per annum plus the applicable margin of 1.75% per annum for Eurodollar rate loans. As of December 31, 2020, the interest rate on the revolving credit facility was 2.12% per annum, which was based on the six-month Eurodollar rate of 0.37% per annum plus the applicable margin of 1.75% 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. The Company made principal payments of $750 during each of the three months ended September 30, 2021 and 2020, and $9,025 and $2,250 during the nine months ended September 30, 2021 and 2020, respectively, under the term loan facility. No principal payments were made under the revolving credit facility during the three and nine months ended September 30, 2021 and 2020. Interest expense for the Term Loan and revolving credit facility, including the amortization of debt issuance costs, totaled $3,870 and $3,892 for the three months ended September 30, 2021 and 2020, respectively, and totaled $11,672 and $12,366 for the nine months ended September 30, 2021 and 2020, 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 each of the three months ended September 30, 2021 and 2020, interest expense related to the fee for the unused amount of the revolving credit facility totaled $11 and for the nine months ended September 30, 2021 and 2020, interest expense related to the fee for the unused amount of the revolving credit facility totaled $ 33 The Term Loan matures 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. In accordance with these provisions, a mandatory early prepayment of $6,775 was paid by the Company on April 2, 2021. This amount was included in the current portion of long-term debt, net of unamortized debt issuance costs on the condensed consolidated balance sheet as of December 31, 2020. 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 was in compliance with all covenants as of September 30, 2021 and December 31, 2020. 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 bore interest at a rate of 3.5% per annum and were 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 was paid on the maturity date of July 1, 2020 utilizing the Company’s revolving credit facility. 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 was amortized to interest expense using the effective interest method from the issuance date of the loan until the maturity date. The Mortgage Loan was paid on the maturity date of July 1, 2020, utilizing the Company’s revolving credit facility. The Company made principal payments under the Mortgage Loan of |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity In connection with special dividends previously declared, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and 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 Nine Months Ended Equitable Adjustment Liability(1) Dividend Declaration Dates Equitable Adjustment per share Year of Final Vesting September 30, 2021 September 30, 2020 As of September 30, 2021 As of December 31, 2020 November 30, 2017 $ 0.5802 2021 $ 42 $ 136 $ 1 $ 30 May 10, 2017 1.1774 2021 53 176 — 31 December 27, 2016 2.3306 2020 2 295 — 2 June 17, 2016 0.5891 2020 — 54 — — Total $ 97 $ 661 $ 1 $ 63 (1) Net of estimated forfeitures. Actual payouts may vary based on actual 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. There were no repurchases made during the three and nine months ended September 30, 2021. There were no repurchases during the three months ended September 30, 2020. During the nine months ended September 30, 2020, the Company repurchased 1,227 shares, at a cost of $3,031, including commissions. As of September 30, 2021, $70,208 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 the Company 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 | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 12. 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 restricted stock units (“PSUs”), RSUs or other stock-based awards to the Company’s employees, officers, directors, advisors and outside consultants. The total number of shares authorized for issuance under the 2017 Plan was 20,617 shares as of , of which 9,755 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 nine months ended September 30, 2021 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2021 7,120 $ 8.01 4.88 $ 9,367 Granted 116 8.23 Exercised (904 ) 2.26 Forfeited (292 ) 10.70 Outstanding at September 30, 2021 6,040 $ 8.74 4.53 $ 7,200 Options exercisable at September 30, 2021 5,665 $ 8.69 4.28 $ 6,924 Vested or expected to vest at September 30, 2021 6,032 $ 8.74 4.52 $ 7,182 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Risk-free interest rate 1.0% 0.4% 1.0% 0.4%-0.7% Expected term (in years) 6.1 6.1 6.1 6.1 Expected volatility 38.6% 31.8% 38.2%-38.6% 29.3%-31.8% Expected dividend yield 0.0% 0.0% 0.0% 0.0% The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2021 and 2020 was $3.15 and $0.98 per share, respectively. Cash proceeds received upon the exercise of options were $3,532 and $955 during the nine months ended September 30, 2021 and 2020, respectively. The intrinsic value of stock options exercised during the nine months ended September 30, 2021 and 2020 was $5,182 and $1,480, 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 nine months ended September 30, 2021 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2021 4,231 $ 5.43 Granted 1,660 8.26 Vested (1,241 ) 6.15 $ 10,149 Forfeited (270 ) 4.68 Unvested balance at September 30, 2021 4,380 $ 6.34 The Company withheld 779 and 150 Performance-Based Stock Units During the nine months ended September 30, 2021 and 2020, the Company granted PSUs to certain employees that vest over a three-year three-year 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: Nine Months Ended September 30, 2021 2020 Risk-free interest rate 0.2% 1.2% Volatility 78.6% 70.0% Dividend yield 0.0% 0.0% Cost of equity 12.0% 11.0% A summary of PSU activity for the nine months ended September 30, 2021 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2021 737 $ 3.22 Granted 442 7.89 Vested (737 ) 3.22 $ 6,449 Forfeited — — Unvested balance at September 30, 2021 442 $ 7.89 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 vested over a four-year Stock-Based Compensation Expense Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three and nine months ended September 30, 2021 and 2020 was classified in the condensed consolidated statements of operations and comprehensive (loss) income as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 29 $ 45 $ 95 $ 115 Research and development expenses 557 592 1,971 1,679 Selling, general and administrative expenses 3,112 2,845 9,179 7,704 Total stock-based compensation $ 3,698 $ 3,482 $ 11,245 $ 9,498 The Company recognized stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 in the condensed consolidated balance sheet as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Change in fair value of SAR Liability $ (188 ) $ (14 ) $ 100 $ (7 ) Recognized as additional paid-in capital 3,886 3,496 11,145 9,505 Total stock-based compensation $ 3,698 $ 3,482 $ 11,245 $ 9,498 As of September 30, 2021, there was $25,442 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 2.67 years. |
Net (Loss) Income per Share
Net (Loss) Income per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Share | 13. Net (Loss) Income per Share Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net (loss) income attributable to common stockholders, basic and diluted $ (876 ) $ 3,473 $ 1,680 $ 1,607 Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 85,660 83,302 84,985 83,437 Dilutive effect of stock options — 1,125 1,765 1,207 Dilutive effect of restricted stock units — 1,039 2,198 726 Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 85,660 85,466 88,948 85,370 Net (loss) income per share attributable to common stockholders: Basic $ (0.01 ) $ 0.04 $ 0.02 $ 0.02 Diluted $ (0.01 ) $ 0.04 $ 0.02 $ 0.02 The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net (loss) income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Options to purchase common stock 6,040 4,156 3,459 4,156 Unvested restricted stock units 4,380 1,001 723 1,001 Unvested performance-based stock units 442 983 — 983 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 14. 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 (loss) income. 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America: United States $ 40,671 $ 32,036 $ 101,534 $ 90,825 Canada 11,087 6,428 61,875 15,170 Total North America 51,758 38,464 163,409 105,995 Europe, Middle East and Africa: 6,547 6,047 19,478 27,493 Asia-Pacific: Australia 24,329 38,889 68,527 86,848 Other 8,832 10,014 24,526 31,884 Total Asia-Pacific 33,161 48,903 93,053 118,732 Latin America 7,753 12,333 20,286 20,500 Total revenue (1) $ 99,219 $ 105,747 $ 296,226 $ 272,720 (1) Other than the United States, Canada and Australia, no individual countries represented 10% or mor The Company also disaggregates its revenue based on product line summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Product revenue: Wireless $ 43,070 $ 26,825 $ 116,081 $ 62,992 Fixed telco 20,187 34,005 51,209 75,756 Cable 24,495 32,911 94,729 100,879 Total product revenue 87,752 93,741 262,019 239,627 Service revenue: Wireless 1,141 2,396 3,416 5,244 Fixed telco 825 441 3,474 992 Cable 9,501 9,169 27,317 26,857 Total service revenue 11,467 12,006 34,207 33,093 Total revenue $ 99,219 $ 105,747 $ 296,226 $ 272,720 Costs to Obtain or Fulfill a Contract As of September 30, 2021 and December 31, 2020, the Company had short-term capitalized contract costs of $96 and $95, respectively, which are included in prepaid expenses and other current assets and had long-term capitalized contract costs of $67 and $70, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. During the three months ended September 30, 2021 and 2020, amortization expense associated with capitalized contract costs was $23 and $76, respectively, 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 and nine months ended September 30, 2021, the Company recognized $1,726 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 September 30, 2021 and December 31, 2020, the Company included contract assets of $781 and $771, respectively, which is netted with deferred revenue in the accompanying condensed consolidated balance sheets. Transaction price allocated to the remaining performance obligations As of September 30, 2021, the aggregate remaining amount of revenue expected to be recognized related to unsatisfied or partially unsatisfied performance obligations was $20,929, which consists of deferred revenue. The Company expects approximately 76% of this amount to be recognized in the next twelve months with the remaining amount to be recognized over the next two to five years. Other Revenue Recognition Policies The Company’s customary payment terms are generally 90 days 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 an appropriate discount rate and recognizes interest income separate from the revenue recognized on contracts with customers. During the three months ended September 30, 2021 and 2020, the Company recorded interest income of $6 and $10, |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 15. 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: September 30, 2021 December 31, 2020 United States $ 17,431 $ 20,988 China 3,144 2,986 Australia 2,236 2,849 Other 1,836 2,057 Total property and equipment, net $ 24,647 $ 28,880 |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | 16. 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 $187 and $153 in total compensation during the nine months ended September 30, 2021 and 2020, respectively, for her services as an employee. To date, the Company has granted to Rongke Xie 116 RSUs which vest over four annual periods. The grant-date fair value of the awards totaled $500, which is recorded as stock-based compensation expense over the vesting period of the awards. During the three months ended September 30, 2021 and 2020, the Company recognized selling, general and administrative expenses of $28 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Indemnification The Company has, in the ordinary course of business, agreed to defend and indemnify certain customers against third-party claims asserting (i) infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and (ii) certain other harms caused by the acts or omissions of the Company. 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 September 30, 2021 and December 31, 2020, the Company had not experienced any material losses related to these indemnification obligations and no material claims were outstanding where a contingent loss was considered to be probable or reasonably estimable. 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 The complete response to this section regarding legal proceedings is incorporated by reference herein to Part II Item I in this 10-Q. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events Revolving Credit Facility On October 25, 2021, the Company repaid all outstanding borrowings under the revolving credit facility utilizing funds held in cash and cash equivalents in the condensed consolidated balance sheets as of September 30, 2021. Repayment of the revolving credit facility included $6,500 of outstanding principal and $7 of outstanding interest on the payoff date. As noted in Note 10, Debt |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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, the recoverability of net deferred tax assets, valuations of uncertain tax positions, 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 COVID-19 pandemic 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 which could have a material effect upon the estimates and judgments relied upon by management in preparing these condensed consolidated financial statements. While the Company remains fully operational, during the three and nine months ended September 30, 2021, the effects of the COVID-19 pandemic on the global supply chain had a significant adverse effect on the Company’s financial results. In particular, certain of the Company’s products utilize components, for which there has been increased global demand. As a result, throughout 2021, and increasingly during the three months ended September 30, 2021, the Company began to see shortages of supply that resulted in the Company’s inability to fulfill certain customer orders within normal lead times. This adversely impacted the Company’s revenue and operating results for the three and nine months ended September 30, 2021. While the Company continues to work with its supply chain, contract manufacturers, and customers to minimize the extent of such impacts, the Company expects the effects of global supply chain issues to continue and cannot predict when such effects will subside. This may prevent the Company from being able to fulfill its customers’ orders in a timely manner or at all, which could lead to one or more of its customers cancelling their orders. At this time the Company is neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. The Company intends to continue to monitor its business very closely for any effects of COVID-19 for as long as necessary. |
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 September 30, 2021 and December 31, 2020, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash as of September 30, 2021 and December 31, 2020 consisted of a certificate of deposit of $1,000 and $1,006, 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: September 30, 2021 September 30, 2020 Cash and cash equivalents $ 156,460 $ 156,191 Restricted cash included in other assets 1,000 1,004 $ 157,460 $ 157,195 |
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 may, in limited circumstances, grant payment terms longer than one year. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. 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. Accounts receivable as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Current portion of accounts receivable, net: Accounts receivable, net $ 80,719 $ 93,480 Accounts receivable, extended payment terms 144 644 80,863 94,124 Accounts receivable, net of current portion: Accounts receivable, extended payment terms — 143 $ 80,863 $ 94,267 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 customer, 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 (loss) income. As of September 30, 2021 and December 31, 2020, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the nine months ended September 30, 2021 and 2020, 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 Revenue Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Customer A 24 % 13 % 20 % * Customer B * 27 % * 23 % Customer C * * 11 % * Accounts Receivable, Net September 30, 2021 December 31, 2020 Customer A 21 % * Customer D * 17 % * 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. Although the Company seeks to reduce dependence on those single or limited source suppliers, 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. |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock options and other stock-based awards granted to employees and directors based on the fair value on the date of grant and recognizes compensation expense of those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. Generally, the Company issues stock options with only service-based vesting conditions and records the expense for these awards using the straight-line method. The Company classifies stock-based compensation expense in its consolidated statements of operations and comprehensive (loss) income in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. The Company recognizes compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, the Company has considered its historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from the Company’s estimate, the Company may be required to record adjustments to stock-based compensation expense in future periods. The Company estimates the fair value of each stock option grant on the date of grant using the Black-Scholes option pricing model. The Company was a private company until December 14, 2017 and lacks sufficient company-specific historical and implied volatility information for its stock. Therefore, for all options granted in 2020 or before, the Company estimated its expected stock volatility based on the historical volatility of publicly traded peer companies. Beginning with options granted in 2021, the Company estimates its expected stock volatility using a weighted-average calculation based on the historical volatility of the Company and publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company does not have a history of declaring or paying cash dividends, except for the special cash dividends declared in November 2014, June 2016, December 2016, May 2017 and November 2017, and in those circumstances the board of directors approved cash dividends to be paid to holders of the Company’s stock options, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”) upon vesting as an equitable adjustment to the holders of such instruments. The Company has also granted SARs to certain employees, which require the Company to pay in cash upon exercise an amount equal to the product of the excess of the per share fair market value of the Company’s common stock on the date of exercise over the exercise price, multiplied by the number of shares of common stock with respect to which the SAR is exercised. Because these awards may require the Company to settle the awards in cash, the Company accounts for them as a liability in the Company’s consolidated balance sheets. The Company recognizes the liability related to these awards, as well as related compensation expense over the period during which services are rendered until completed. As all SARs are now fully vested, the Company continues to remeasure the fair market value of the liability until the award is either exercised or canceled, with changes in the fair value of the liability recorded in the consolidated statements of operations and comprehensive (loss) income. |
Impact of Recently Adopted and Issued Accounting Standards | Impact of Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Impact of Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Amendments to FASB Accounting Standards Codification In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) |
Other | Other Other than the disclosures above, there have been no changes to the significant accounting policies disclosed in 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, 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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: September 30, 2021 September 30, 2020 Cash and cash equivalents $ 156,460 $ 156,191 Restricted cash included in other assets 1,000 1,004 $ 157,460 $ 157,195 |
Schedule of Accounts Receivable | Accounts receivable as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Current portion of accounts receivable, net: Accounts receivable, net $ 80,719 $ 93,480 Accounts receivable, extended payment terms 144 644 80,863 94,124 Accounts receivable, net of current portion: Accounts receivable, extended payment terms — 143 $ 80,863 $ 94,267 |
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 Revenue Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Customer A 24 % 13 % 20 % * Customer B * 27 % * 23 % Customer C * * 11 % * Accounts Receivable, Net September 30, 2021 December 31, 2020 Customer A 21 % * Customer D * 17 % * Less than 10% of total |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Net | Intangible assets, net consisted of the following at September 30, 2021 and December 31, 2020, respectively: Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (8,037 ) $ 16,963 Customer Relationships 18,000 (4,050 ) 13,950 Trade Name 1,000 (747 ) 253 Purchased software 1,817 (322 ) 1,495 Totals as of September 30, 2021 $ 45,817 $ (13,156 ) $ 32,661 Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (5,358 ) $ 19,642 Customer Relationships 18,000 (2,700 ) 15,300 Trade Name 1,000 (498 ) 502 Purchased software 432 (32 ) 400 Totals as of December 31, 2020 $ 44,432 $ (8,588 ) $ 35,844 |
Schedule of Amortization Expense on Existing Intangible Assets | As of September 30, 2021, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, Remainder of 2021 $ 1,532 2022 5,958 2023 5,760 2024 5,656 2025 5,651 Thereafter 8,104 $ 32,661 |
Summary of Amortization Expense | A summary of amortization expense recorded during the three and nine months ended September 30, 2021 and 2020 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Product cost of revenue $ 893 $ 893 $ 2,679 $ 2,679 Research and development 105 — 290 — Selling, general and administrative 533 533 1,599 1,600 Totals $ 1,531 $ 1,426 $ 4,568 $ 4,279 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of September 30, 2021 and December 31, 2020 September 30, 2021 December 31, 2020 Raw materials $ 49,297 $ 50,904 Work in process — 19 Finished goods: Manufactured finished goods 41,730 49,764 Deferred inventory costs 826 517 $ 91,853 $ 101,204 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Components of Property and Equipment | Property and equipment as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Computers and purchased software $ 25,284 $ 24,865 Leasehold improvements 4,185 4,148 Furniture and fixtures 2,670 2,644 Machinery and equipment 37,427 36,701 Land 3,091 3,091 Building 4,765 4,765 Building improvements 7,282 7,244 Trial systems at customers’ sites 4,232 5,300 88,936 88,758 Less: Accumulated depreciation and amortization (64,289 ) (59,878 ) $ 24,647 $ 28,880 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Accrued compensation and related taxes $ 16,919 $ 22,785 Inventory-related accruals 4,619 855 Accrued warranty 2,483 2,354 Other accrued expenses 9,347 13,799 $ 33,368 $ 39,793 |
Summary of Changes in Amount Reserved for Warranty Costs | A summary of changes in the amount reserved for warranty costs for the nine months ended September 30, 2021 and 2020 is as follows: Nine Months Ended September 30, 2021 2020 Warranty reserve at beginning of period $ 2,354 $ 2,448 Provisions 2,015 2,054 Charges (1,886 ) (2,103 ) Warranty reserve at end of period $ 2,483 $ 2,399 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of September 30, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,000 $ — $ 1,000 Money market mutual funds 127,221 — — 127,221 Foreign currency forward contracts — 24 — 24 $ 127,221 $ 1,024 $ — $ 128,245 Liabilities: SARs $ — $ — $ 458 $ 458 $ — $ — $ 458 $ 458 Fair Value Measurements as of December 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,006 $ — $ 1,006 Money market mutual funds 114,404 — — 114,404 $ 114,404 $ 1,006 $ — $ 115,410 Liabilities: SARs $ — $ — $ 493 $ 493 $ — $ — $ 493 $ 493 |
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 SARs liability, for which fair value is determined by Level 3 inputs: Nine Months Ended September 30, 2021 2020 Fair value at beginning of period $ 493 $ 264 Change in fair value 100 (7 ) Exercises (135 ) — Fair value at end of period $ 458 $ 257 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Principal Amount of Debt Outstanding | The aggregate principal amount of debt outstanding as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, December 31, 2021 2020 Term loan $ 278,975 $ 288,000 Revolving credit facility 6,500 6,500 Total principal amount of debt outstanding $ 285,475 $ 294,500 |
Schedule of Current and Non-Current Debt Obligations | Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, December 31, 2021 2020 Current liabilities: Term loan $ 3,000 $ 9,775 Revolving credit facility 6,500 6,500 Current portion of principal payment obligations 9,500 16,275 Unamortized debt issuance costs, current portion (1,079 ) (1,104 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 8,421 $ 15,171 Non-current liabilities: Term loan $ 275,975 $ 278,225 Unamortized debt issuance costs, non-current portion (1,303 ) (2,140 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 274,672 $ 276,085 |
Schedule of Aggregate Minimum Future Principal Payments of Debt | As of September 30, 2021, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, Remainder of 2021 $ 7,250 2022 3,000 2023 275,225 Thereafter — $ 285,475 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Equitable Adjustment Payments | The below table provides details of these equitable adjustment payments: Equitable Adjustment Payments Nine Months Ended Equitable Adjustment Liability(1) Dividend Declaration Dates Equitable Adjustment per share Year of Final Vesting September 30, 2021 September 30, 2020 As of September 30, 2021 As of December 31, 2020 November 30, 2017 $ 0.5802 2021 $ 42 $ 136 $ 1 $ 30 May 10, 2017 1.1774 2021 53 176 — 31 December 27, 2016 2.3306 2020 2 295 — 2 June 17, 2016 0.5891 2020 — 54 — — Total $ 97 $ 661 $ 1 $ 63 (1) Net of estimated forfeitures. Actual payouts may vary based on actual 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) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2021 7,120 $ 8.01 4.88 $ 9,367 Granted 116 8.23 Exercised (904 ) 2.26 Forfeited (292 ) 10.70 Outstanding at September 30, 2021 6,040 $ 8.74 4.53 $ 7,200 Options exercisable at September 30, 2021 5,665 $ 8.69 4.28 $ 6,924 Vested or expected to vest at September 30, 2021 6,032 $ 8.74 4.52 $ 7,182 |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Risk-free interest rate 1.0% 0.4% 1.0% 0.4%-0.7% Expected term (in years) 6.1 6.1 6.1 6.1 Expected volatility 38.6% 31.8% 38.2%-38.6% 29.3%-31.8% Expected dividend yield 0.0% 0.0% 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 nine months ended September 30, 2021 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2021 4,231 $ 5.43 Granted 1,660 8.26 Vested (1,241 ) 6.15 $ 10,149 Forfeited (270 ) 4.68 Unvested balance at September 30, 2021 4,380 $ 6.34 |
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: Nine Months Ended September 30, 2021 2020 Risk-free interest rate 0.2% 1.2% Volatility 78.6% 70.0% Dividend yield 0.0% 0.0% Cost of equity 12.0% 11.0% |
Summary of PSU Activity | A summary of PSU activity for the nine months ended September 30, 2021 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2021 737 $ 3.22 Granted 442 7.89 Vested (737 ) 3.22 $ 6,449 Forfeited — — Unvested balance at September 30, 2021 442 $ 7.89 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three and nine months ended September 30, 2021 and 2020 was classified in the condensed consolidated statements of operations and comprehensive (loss) income as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 29 $ 45 $ 95 $ 115 Research and development expenses 557 592 1,971 1,679 Selling, general and administrative expenses 3,112 2,845 9,179 7,704 Total stock-based compensation $ 3,698 $ 3,482 $ 11,245 $ 9,498 The Company recognized stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 in the condensed consolidated balance sheet as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Change in fair value of SAR Liability $ (188 ) $ (14 ) $ 100 $ (7 ) Recognized as additional paid-in capital 3,886 3,496 11,145 9,505 Total stock-based compensation $ 3,698 $ 3,482 $ 11,245 $ 9,498 |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common Stockholders | Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net (loss) income attributable to common stockholders, basic and diluted $ (876 ) $ 3,473 $ 1,680 $ 1,607 Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 85,660 83,302 84,985 83,437 Dilutive effect of stock options — 1,125 1,765 1,207 Dilutive effect of restricted stock units — 1,039 2,198 726 Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 85,660 85,466 88,948 85,370 Net (loss) income per share attributable to common stockholders: Basic $ (0.01 ) $ 0.04 $ 0.02 $ 0.02 Diluted $ (0.01 ) $ 0.04 $ 0.02 $ 0.02 |
Schedule of Potential Common Shares Excluded from the Computation of Diluted Net (Loss) Income 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 (loss) income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Options to purchase common stock 6,040 4,156 3,459 4,156 Unvested restricted stock units 4,380 1,001 723 1,001 Unvested performance-based stock units 442 983 — 983 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America: United States $ 40,671 $ 32,036 $ 101,534 $ 90,825 Canada 11,087 6,428 61,875 15,170 Total North America 51,758 38,464 163,409 105,995 Europe, Middle East and Africa: 6,547 6,047 19,478 27,493 Asia-Pacific: Australia 24,329 38,889 68,527 86,848 Other 8,832 10,014 24,526 31,884 Total Asia-Pacific 33,161 48,903 93,053 118,732 Latin America 7,753 12,333 20,286 20,500 Total revenue (1) $ 99,219 $ 105,747 $ 296,226 $ 272,720 (1) Other than the United States, Canada and Australia, no individual countries represented 10% or mor |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Product revenue: Wireless $ 43,070 $ 26,825 $ 116,081 $ 62,992 Fixed telco 20,187 34,005 51,209 75,756 Cable 24,495 32,911 94,729 100,879 Total product revenue 87,752 93,741 262,019 239,627 Service revenue: Wireless 1,141 2,396 3,416 5,244 Fixed telco 825 441 3,474 992 Cable 9,501 9,169 27,317 26,857 Total service revenue 11,467 12,006 34,207 33,093 Total revenue $ 99,219 $ 105,747 $ 296,226 $ 272,720 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment, Net by Location | The Company’s property and equipment, net by location was as follows: September 30, 2021 December 31, 2020 United States $ 17,431 $ 20,988 China 3,144 2,986 Australia 2,236 2,849 Other 1,836 2,057 Total property and equipment, net $ 24,647 $ 28,880 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | ||||
Change in accounting principle accounting standards update adopted | true | |||
Change in accounting principle, accounting standards update, early adoption [true false] | true | |||
Change in accounting principle accounting standards update immaterial effect | true | |||
Accounting standards update description | ASU 2020-06 | |||
Accounts Receivable, Extended Payment Terms | ||||
Significant Accounting Policies [Line Items] | ||||
Reserve for credit losses | $ 0 | $ 0 | ||
Write off of uncollectible receivables | 0 | $ 0 | ||
Certificates of Deposit | ||||
Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 1,000,000 | $ 1,006,000 |
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 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 156,460 | $ 157,455 | $ 156,191 | |||
Restricted cash included in other assets | $ 1,000 | $ 1,004 | ||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | ||||
Cash and cash equivalents, restricted cash | $ 157,460 | [1] | $ 158,461 | $ 157,195 | [1] | $ 114,657 |
[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 unaudited condensed consolidated statements of cash flows. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 80,863 | $ 94,124 |
Accounts receivable, net of current portion: | ||
Accounts receivable, net of current portion | 143 | |
Accounts receivable | 80,863 | 94,267 |
Accounts Receivable, Net | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 80,719 | 93,480 |
Accounts Receivable, Extended Payment Terms | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 144 | $ 644 |
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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Customer A | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 24.00% | 13.00% | 20.00% | ||
Customer A | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 21.00% | ||||
Customer B | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 27.00% | 23.00% | |||
Customer C | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.00% | ||||
Customer D | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 17.00% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 45,817 | $ 44,432 |
Accumulated Amortization | (13,156) | (8,588) |
Net Balance | 32,661 | 35,844 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 25,000 | 25,000 |
Accumulated Amortization | (8,037) | (5,358) |
Net Balance | 16,963 | 19,642 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 18,000 | 18,000 |
Accumulated Amortization | (4,050) | (2,700) |
Net Balance | 13,950 | 15,300 |
Trade Name | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,000 | 1,000 |
Accumulated Amortization | (747) | (498) |
Net Balance | 253 | 502 |
Purchased Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,817 | 432 |
Accumulated Amortization | (322) | (32) |
Net Balance | $ 1,495 | $ 400 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Amortization Expense on Existing Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 1,532 | |
2022 | 5,958 | |
2023 | 5,760 | |
2024 | 5,656 | |
2025 | 5,651 | |
Thereafter | 8,104 | |
Net Balance | $ 32,661 | $ 35,844 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 1,531 | $ 1,426 | $ 4,568 | $ 4,279 |
Product Cost of Revenue | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 893 | 893 | 2,679 | 2,679 |
Research and Development | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 105 | 290 | ||
Selling, General and Administrative Expenses | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 533 | $ 533 | $ 1,599 | $ 1,600 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 50,177 | $ 50,177 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 49,297 | $ 50,904 |
Work in process | 19 | |
Finished goods: | ||
Manufactured finished goods | 41,730 | 49,764 |
Deferred inventory costs | 826 | 517 |
Total inventory | $ 91,853 | $ 101,204 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 88,936 | $ 88,758 |
Less: Accumulated depreciation and amortization | (64,289) | (59,878) |
Property and equipment, net | 24,647 | 28,880 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 25,284 | 24,865 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,185 | 4,148 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,670 | 2,644 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 37,427 | 36,701 |
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 | 7,282 | 7,244 |
Trial Systems at Customers' Sites | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,232 | $ 5,300 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization expense on property and equipment | $ 2,258 | $ 2,968 | $ 7,418 | $ 9,370 |
Trial Systems | ||||
Property Plant And Equipment [Line Items] | ||||
Transfers to inventory from property and equipment | 1,145 | 690 | ||
Equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Transfers to inventory from property and equipment | $ 325 | $ 766 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued compensation and related taxes | $ 16,919 | $ 22,785 |
Inventory-related accruals | 4,619 | 855 |
Accrued warranty | 2,483 | 2,354 |
Other accrued expenses | 9,347 | 13,799 |
Total accrued expenses and other current liabilities | $ 33,368 | $ 39,793 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
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 | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | ||
Warranty reserve at beginning of period | $ 2,354 | $ 2,448 |
Provisions | 2,015 | 2,054 |
Charges | (1,886) | (2,103) |
Warranty reserve at end of period | $ 2,483 | $ 2,399 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Assets fair value | $ 128,245 | $ 115,410 |
Liabilities: | ||
Liabilities fair value | 458 | 493 |
Certificates of Deposit - Restricted Cash | ||
Assets: | ||
Assets fair value | 1,000 | 1,006 |
Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 127,221 | 114,404 |
Foreign Currency Forward Contracts | ||
Assets: | ||
Assets fair value | 24 | |
Level 1 | ||
Assets: | ||
Assets fair value | 127,221 | 114,404 |
Level 1 | Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 127,221 | 114,404 |
Level 2 | ||
Assets: | ||
Assets fair value | 1,024 | 1,006 |
Level 2 | Certificates of Deposit - Restricted Cash | ||
Assets: | ||
Assets fair value | 1,000 | 1,006 |
Level 2 | Foreign Currency Forward Contracts | ||
Assets: | ||
Assets fair value | 24 | |
Level 3 | ||
Liabilities: | ||
Liabilities fair value | 458 | 493 |
SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | 458 | 493 |
SARs | Level 3 | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | $ 458 | $ 493 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
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 | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of period | $ 493 | $ 264 |
Change in fair value | 100 | (7) |
Exercises | (135) | |
Fair value at end of period | $ 458 | $ 257 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020AUD ($) | Sep. 30, 2020AUD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Sep. 30, 2021AUD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020AUD ($) | |
Cash Flow Hedges | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Derivative notional amount outstanding | $ 0 | $ 0 | ||||||
Australian Subsidiary | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Fair value of derivative amount recognized | $ 725 | $ 1,613 | ||||||
Australian Subsidiary | Product Cost of Revenue | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Fair value of derivative amount recognized | 57 | 124 | ||||||
Australian Subsidiary | Research and Development | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Fair value of derivative amount recognized | 353 | 890 | ||||||
Australian Subsidiary | Selling, General and Administrative Expense | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Fair value of derivative amount recognized | 315 | 599 | ||||||
Australian Subsidiary | Cash Flow Hedges | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Amount of gain reclassified from other comprehensive (loss) income | 527 | 752 | ||||||
Foreign Currency Forward Contracts | Prepaid Expenses and Other Current Assets | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Derivatives asset fair value | $ 24 | $ 0 | ||||||
Foreign Currency Forward Contracts | Accrued Expenses And Other Current Liabilities | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Liability derivatives | $ 0 | $ 0 | ||||||
Foreign Currency Forward Contracts | Australian Subsidiary | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Outstanding notional amounts | € | € 1,379,000 | € 0 | ||||||
Foreign Currency Forward Contracts One | Australian Subsidiary | Cash Flow Hedges | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Derivative notional amounts settled | $ 5,000 | 8,500 | ||||||
Foreign Currency Forward Contracts Two | Australian Subsidiary | Cash Flow Hedges | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Derivative notional amounts settled | $ 5,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 85.80% | 40.90% | 11.60% | 142.00% |
(Benefit from) provision for income taxes | $ (5,288) | $ 2,399 | $ 220 | $ (5,433) |
Discrete tax benefit | $ (7,097) | $ (7,097) | $ (9,310) |
Debt - Schedule of Aggregate Pr
Debt - Schedule of Aggregate Principal Amount of Debt Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 285,475 | $ 294,500 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | 6,500 | 6,500 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 278,975 | $ 288,000 |
Debt - Schedule of Current and
Debt - Schedule of Current and Non-Current Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current liabilities: | ||
Current portion of principal payment obligations | $ 9,500 | $ 16,275 |
Revolving credit facility | 6,500 | 6,500 |
Unamortized debt issuance costs, current portion | (1,079) | (1,104) |
Current portion of long-term debt, net of unamortized debt issuance costs | 8,421 | 15,171 |
Non-current liabilities: | ||
Unamortized debt issuance costs, non-current portion | (1,303) | (2,140) |
Long-term debt, net of current portion and unamortized debt issuance costs | 274,672 | 276,085 |
Term Loan | ||
Current liabilities: | ||
Current portion of principal payment obligations | 3,000 | 9,775 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | $ 275,975 | $ 278,225 |
Debt - Schedule of Aggregate Mi
Debt - Schedule of Aggregate Minimum Future Principal Payments of Debt (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2021 | $ 7,250 |
2022 | 3,000 |
2023 | 275,225 |
Aggregate minimum future principal payments of debt | $ 285,475 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 20, 2016USD ($) | Jul. 01, 2015USD ($)Installment | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | $ 285,475,000 | $ 285,475,000 | |||||
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. 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 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% | ||||||
Debt instrument, mandatory prepayment of debt payable | $ 6,775 | ||||||
JPMorgan Chase Bank, N. A. | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity utilized percentage | 30.00% | 30.00% | 30.00% | ||||
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 | $ 278,975,000 | $ 278,975,000 | $ 288,000,000 | ||||
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 September 30, 2021 and December 31, 2020, the interest rate on the Term Loans was 5.00% per annum, which was based on a one-month and six-month Eurodollar rate, respectively, at the applicable floor of 1.00% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. | ||||||
Debt instrument, effective interest rate percentage | 5.00% | 5.00% | 5.00% | ||||
Debt issuance costs | $ 7,811,000 | ||||||
Debt instrument, principal payment | $ 750,000 | $ 750,000 | $ 9,025,000 | $ 2,250,000 | |||
Interest expense, including amortization of debt issuance costs | $ 3,870,000 | 3,892,000 | $ 11,672,000 | 12,366,000 | |||
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% | 1.00% | 1.00% | ||||
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] | |||||||
Debt instrument, interest rate stated percentage | 3.50% | ||||||
Debt instrument, principal payment | 6,483,000 | 6,643,000 | |||||
Interest expense, including amortization of debt issuance costs | 0 | 120,000 | |||||
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 | ||||||
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 | $ 6,500,000 | $ 6,500,000 | $ 6,500,000 | ||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate increase | 2.00% | ||||||
Line of credit facility, interest rate | 1.83% | 1.83% | 2.12% | ||||
Line of credit facility, interest rate description | As of September 30, 2021, the interest rate on the revolving credit facility was 1.83% per annum, which was based on a one-month Eurodollar rate of 0.08% per annum plus the applicable margin of 1.75% per annum for Eurodollar rate loans. As of December 31, 2020, the interest rate on the revolving credit facility was 2.12% per annum, which was based on the six-month Eurodollar rate of 0.37% per annum plus the applicable margin of 1.75% per annum for Eurodollar rate loans | ||||||
Payment of quarterly commitment fees percentage | 0.25% | ||||||
Interest expense related to the fee for the unused amount | $ 11,000 | $ 11,000 | $ 33,000 | $ 41,000 | |||
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% | 1.75% | 1.75% | ||||
Debt instrument, interest rate stated percentage | 1.75% | ||||||
Line of credit facility, interest rate | 0.08% | 0.08% | 0.37% | ||||
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 | $ 1,450,000 | $ 1,450,000 | $ 1,454,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Equitable Adjustment Payments (Details) - Vested Equity Awards - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2017 | May 10, 2017 | Dec. 27, 2016 | Jun. 17, 2016 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Class Of Stock [Line Items] | |||||||
Equitable Adjustment Payments | $ 97 | $ 661 | |||||
Accrued Expenses And Other Current Liabilities | |||||||
Class Of Stock [Line Items] | |||||||
Equitable Adjustment Liability | 1 | $ 63 | |||||
November 30, 2017 Special Dividend | |||||||
Class Of Stock [Line Items] | |||||||
Dividend Declaration Dates | Nov. 30, 2017 | ||||||
Equitable Adjustment per share | $ 0.5802 | ||||||
Year of Final Vesting | 2021 | ||||||
Equitable Adjustment Payments | 42 | 136 | |||||
November 30, 2017 Special Dividend | Accrued Expenses And Other Current Liabilities | |||||||
Class Of Stock [Line Items] | |||||||
Equitable Adjustment Liability | 1 | 30 | |||||
May 10, 2017 Special Dividend | |||||||
Class Of Stock [Line Items] | |||||||
Dividend Declaration Dates | May 10, 2017 | ||||||
Equitable Adjustment per share | $ 1.1774 | ||||||
Year of Final Vesting | 2021 | ||||||
Equitable Adjustment Payments | 53 | 176 | |||||
May 10, 2017 Special Dividend | Accrued Expenses And Other Current Liabilities | |||||||
Class Of Stock [Line Items] | |||||||
Equitable Adjustment Liability | 31 | ||||||
December 27, 2016 Special Dividend | |||||||
Class Of Stock [Line Items] | |||||||
Dividend Declaration Dates | Dec. 27, 2016 | ||||||
Equitable Adjustment per share | $ 2.3306 | ||||||
Year of Final Vesting | 2020 | ||||||
Equitable Adjustment Payments | $ 2 | 295 | |||||
December 27, 2016 Special Dividend | Accrued Expenses And Other Current Liabilities | |||||||
Class Of Stock [Line Items] | |||||||
Equitable Adjustment Liability | $ 2 | ||||||
June 17, 2016 Special Dividend | |||||||
Class Of Stock [Line Items] | |||||||
Dividend Declaration Dates | Jun. 17, 2016 | ||||||
Equitable Adjustment per share | $ 0.5891 | ||||||
Year of Final Vesting | 2020 | ||||||
Equitable Adjustment Payments | $ 54 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - Common Stock - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 21, 2019 | |
Class Of Stock [Line Items] | |||||
Stock repurchase program, common stock remaining authorized to be repurchased | $ 70,208,000 | $ 70,208,000 | |||
Stock repurchase program, stock repurchased, shares | 0 | 0 | 0 | 1,227,000 | |
Stock repurchase program, stock repurchased, value | $ 3,031,000 | ||||
Maximum | |||||
Class Of Stock [Line Items] | |||||
Stock repurchase program, common stock authorized to be repurchased | $ 75,000,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash proceeds received upon the exercise of options | $ 3,532 | $ 957 | |
Fair value of liability | 458 | $ 493 | |
Unrecognized compensation cost | $ 25,442 | ||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 8 months 1 day | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value per share of options | $ 3.15 | $ 0.98 | |
Cash proceeds received upon the exercise of options | $ 3,532 | $ 955 | |
Intrinsic value of stock options exercised | $ 5,182 | $ 1,480 | |
Performance-Based Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 3 years | 3 years | |
Number of award outstanding | 442,000 | 737,000 | |
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 | 200,000 | ||
Exercised fair value of SAR | $ 6.75 | ||
Number of SAR exercised | 20,000 | ||
Fair value of SAR | $ 2.29 | ||
Stock Appreciation Rights | Accrued Expenses And Other Current Liabilities | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of liability | $ 458 | $ 493 | |
2017 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for grant | 20,617,000 | ||
Number of remaining shares available for grant | 9,755,000 | ||
2011 and 2017 Stock Incentive Plan | RSUs and PSUs | Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of common stock in settlement of employee tax withholding obligations | 779,000 | 150,000 |
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 $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | shares | 7,120 | |
Number of Shares, Granted | shares | 116 | |
Number of Shares, Exercised | shares | (904) | |
Number of Shares, Forfeited | shares | (292) | |
Number of Shares, Outstanding, Ending Balance | shares | 6,040 | 7,120 |
Number of Shares, Options exercisable at June 30, 2021 | shares | 5,665 | |
Number of Shares, Vested or expected to vest at June 30, 2021 | shares | 6,032 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 8.01 | |
Weighted-Average Exercise Price, Granted | $ / shares | 8.23 | |
Weighted-Average Exercise Price, Exercised | $ / shares | 2.26 | |
Weighted-Average Exercise Price, Forfeited | $ / shares | 10.70 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 8.74 | $ 8.01 |
Weighted-Average Exercise Price, Options exercisable at June 30, 2021 | $ / shares | 8.69 | |
Weighted-Average Exercise Price, Vested or expected to vest at June 30, 2021 | $ / shares | $ 8.74 | |
Weighted-Average Remaining Contractual Term, Outstanding | 4 years 6 months 10 days | 4 years 10 months 17 days |
Weighted-Average Remaining Contractual Term, Options exercisable at June 30, 2021 | 4 years 3 months 10 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at June 30, 2021 | 4 years 6 months 7 days | |
Aggregate Intrinsic Value, Outstanding | $ | $ 7,200 | $ 9,367 |
Aggregate Intrinsic Value, Options exercisable at June 30, 2021 | $ | 6,924 | |
Aggregate Intrinsic Value, Vested or expected to vest at June 30, 2021 | $ | $ 7,182 |
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) - Stock Options | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.00% | 0.40% | 1.00% | |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected volatility | 38.60% | 31.80% | ||
Expected volatility, Minimum | 38.20% | 29.30% | ||
Expected volatility, Maximum | 38.60% | 31.80% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.40% | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.70% |
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 | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 4,231 |
Number of Shares, Granted | shares | 1,660 |
Number of Shares, Vested | shares | (1,241) |
Number of Shares, Forfeited | shares | (270) |
Number of Shares, Unvested, Ending Balance | shares | 4,380 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 5.43 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 8.26 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 6.15 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 4.68 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 6.34 |
Aggregate Fair Value, Vested | $ | $ 10,149 |
Stock-based Compensation - As_2
Stock-based Compensation - Assumptions of Estimated Based on Monte Carlo Simulation Model (Details) - Performance-Based Stock Units | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.20% | 1.20% |
Expected volatility | 78.60% | 70.00% |
Expected dividend yield | 0.00% | 0.00% |
Cost of equity | 12.00% | 11.00% |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of PSU Activity (Details) - Performance-Based Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 737 |
Number of Shares, Granted | shares | 442 |
Number of Shares, Vested | shares | (737) |
Number of Shares, Unvested, Ending Balance | shares | 442 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 3.22 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 7.89 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 3.22 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 7.89 |
Aggregate Fair Value, Vested | $ | $ 6,449 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 3,698 | $ 3,482 | $ 11,245 | $ 9,498 |
Product Cost of Revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 29 | 45 | 95 | 115 |
Research and Development Expenses | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 557 | 592 | 1,971 | 1,679 |
Selling, General and Administrative Expenses | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 3,112 | $ 2,845 | $ 9,179 | $ 7,704 |
Stock-based Compensation - Su_4
Stock-based Compensation - Summary of Stock-based Compensation Expense Recognized in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Change in fair value of SAR Liability | $ (188) | $ (14) | $ 100 | $ (7) |
Recognized as additional paid-in capital | 3,886 | 3,496 | 11,145 | 9,505 |
Total stock-based compensation | $ 3,698 | $ 3,482 | $ 11,245 | $ 9,498 |
Net (Loss) Income per Share - S
Net (Loss) Income per Share - Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net (loss) income attributable to common stockholders, basic and diluted | $ (876) | $ 3,473 | $ 1,680 | $ 1,607 |
Denominator: | ||||
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic | 85,660 | 83,302 | 84,985 | 83,437 |
Dilutive effect of stock options | 1,125 | 1,765 | 1,207 | |
Dilutive effect of restricted stock units | 1,039 | 2,198 | 726 | |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted | 85,660 | 85,466 | 88,948 | 85,370 |
Net (loss) income per share attributable to common stockholders: | ||||
Basic | $ (0.01) | $ 0.04 | $ 0.02 | $ 0.02 |
Diluted | $ (0.01) | $ 0.04 | $ 0.02 | $ 0.02 |
Net (Loss) Income per Share -_2
Net (Loss) Income per Share - Schedule of Potential Common Shares Excluded from the Computation of Diluted Net (Loss) Income Per Share Attributable to Common Stockholders (Details) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
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 | 6,040 | 4,156 | 3,459 | 4,156 |
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 | 4,380 | 1,001 | 723 | 1,001 |
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 | 442 | 983 | 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 99,219 | $ 105,747 | $ 296,226 | $ 272,720 |
North America - United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 40,671 | 32,036 | 101,534 | 90,825 |
North America - Canada | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 11,087 | 6,428 | 61,875 | 15,170 |
North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 51,758 | 38,464 | 163,409 | 105,995 |
Europe, Middle East and Africa | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,547 | 6,047 | 19,478 | 27,493 |
Asia-Pacific - Australia | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 24,329 | 38,889 | 68,527 | 86,848 |
Asia-Pacific - Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 8,832 | 10,014 | 24,526 | 31,884 |
Asia-Pacific | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 33,161 | 48,903 | 93,053 | 118,732 |
Latin America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 7,753 | $ 12,333 | $ 20,286 | $ 20,500 |
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) - Other than United States and Australia | 9 Months Ended |
Sep. 30, 2021Country | |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 99,219 | $ 105,747 | $ 296,226 | $ 272,720 |
Product - Wireless | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 43,070 | 26,825 | 116,081 | 62,992 |
Product - Fixed Telco | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 20,187 | 34,005 | 51,209 | 75,756 |
Product - Cable | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 24,495 | 32,911 | 94,729 | 100,879 |
Product | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 87,752 | 93,741 | 262,019 | 239,627 |
Service - Wireless | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,141 | 2,396 | 3,416 | 5,244 |
Service - Fixed Telco | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 825 | 441 | 3,474 | 992 |
Service - Cable | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 9,501 | 9,169 | 27,317 | 26,857 |
Service | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 11,467 | $ 12,006 | $ 34,207 | $ 33,093 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenue remaining performance obligation amount | $ 20,929 | $ 20,929 | |||
Prepaid Expenses and Other Current Assets | |||||
Disaggregation Of Revenue [Line Items] | |||||
Short-term capitalized contract costs | 96 | 96 | $ 95 | ||
Contract assets | 781 | 781 | 771 | ||
Other Assets | |||||
Disaggregation Of Revenue [Line Items] | |||||
Long-term capitalized contract costs | 67 | 67 | $ 70 | ||
Deferred Revenue | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue | 1,726 | $ 9,857 | 13,706 | $ 20,194 | |
Selling, General and Administrative Expense | |||||
Disaggregation Of Revenue [Line Items] | |||||
Amortization of capitalized contract costs | 23 | 76 | 75 | 524 | |
Interest Income | |||||
Disaggregation Of Revenue [Line Items] | |||||
Other revenue | $ 6 | $ 10 | $ 14 | $ 57 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details1) | Sep. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue remaining performance obligation, percentage | 76.00% |
Revenue, remaining performance obligation, expected timing of satisfaction period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
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: 2022-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 5 years |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021Segment | |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 24,647 | $ 28,880 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 17,431 | 20,988 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,144 | 2,986 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 2,236 | 2,849 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 1,836 | $ 2,057 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - Rongke Xie - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Compensation paid | $ 187 | $ 153 | ||
Restricted Stock Units | ||||
Related Party Transaction [Line Items] | ||||
Number of shares granted | 116 | |||
Vesting period | 4 years | |||
Aggregate fair value vested | $ 500 | |||
Selling, general and administrative expenses recognized | $ 28 | $ 25 | $ 78 | $ 62 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
Indemnification obligations material claims, outstanding | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Oct. 25, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||
Outstanding principal | $ 6,500 | $ 6,500 | |
Net of unamortized debt issuance costs | $ 1,079 | $ 1,104 | |
Subsequent Event | Revolving Credit Facility | |||
Subsequent Event [Line Items] | |||
Outstanding principal | $ 6,500 | ||
Interest expense, including amortization of debt issuance costs | 7 | ||
Net of unamortized debt issuance costs | $ 6,500 |