Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 29, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'rvbd | ' |
Entity Registrant Name | 'Riverbed Technology, Inc. | ' |
Entity Central Index Key | '0001357326 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 160,542,961 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $244,899 | $208,022 |
Short-term investments | 229,292 | 251,339 |
Trade receivables, net of allowances of $1,709 and $1,996 as of March 31, 2014 and December 31, 2013, respectively | 99,096 | 93,836 |
Inventory | 21,218 | 25,025 |
Deferred tax assets | 10,434 | 7,222 |
Prepaid expenses and other current assets | 57,222 | 49,016 |
Total current assets | 662,161 | 634,460 |
Long-term investments | 85,461 | 72,675 |
Fixed assets, net | 68,612 | 57,810 |
Goodwill | 704,305 | 704,305 |
Intangibles, net | 382,457 | 404,467 |
Other assets | 22,324 | 23,881 |
Total assets | 1,925,320 | 1,897,598 |
Current liabilities: | ' | ' |
Accounts payable | 42,900 | 45,518 |
Accrued compensation and benefits | 50,344 | 51,988 |
Other accrued liabilities | 37,235 | 36,520 |
Current maturities of long-term borrowings | 15,000 | 15,000 |
Deferred revenue | 231,430 | 217,131 |
Total current liabilities | 376,909 | 366,157 |
Deferred revenue, non-current | 93,386 | 95,344 |
Long-term Debt | 506,250 | ' |
Borrowings, non-current, net of current maturities | ' | 510,000 |
Deferred tax liabilities, non-current | 45,881 | 48,548 |
Other long-term liabilities | 49,755 | 48,910 |
Total long-term liabilities | 695,272 | 702,802 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.0001 par value – 30,000 shares authorized, no shares outstanding | 0 | 0 |
Common stock and additional paid-in capital; $0.0001 par value – 600,000 shares authorized; 160,503 and 159,845 shares issued and outstanding as of March, 31, 2014 and December 31, 2013, respectively | 724,319 | 702,928 |
Retained earnings | 128,583 | 125,295 |
Accumulated other comprehensive income | 237 | 416 |
Total stockholders' equity | 853,139 | 828,639 |
Total liabilities and stockholders' equity | $1,925,320 | $1,897,598 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Trade receivables, allowances | $1,709 | $1,996 |
Preferred stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 30,000 | 30,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $0.00 | $0.00 |
Common stock, shares authorized | 600,000 | 600,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Product | $150,161 | $148,040 |
Support and services | 115,255 | 98,099 |
Total revenue | 265,416 | 246,139 |
Cost of revenue: | ' | ' |
Cost of product | 38,281 | 40,900 |
Cost of support and services | 31,631 | 28,042 |
Total cost of revenue | 69,912 | 68,942 |
Gross profit | 195,504 | 177,197 |
Operating expenses: | ' | ' |
Sales and marketing | 114,745 | 115,721 |
Research and development | 50,647 | 48,961 |
General and administrative | 19,125 | 19,114 |
Acquisition-related costs | 2,668 | 4,136 |
Total operating expenses | 187,185 | 187,932 |
Operating income (loss) | 8,319 | -10,735 |
Interest and other expense, net | -2,713 | -6,364 |
Income (loss) before provision for income taxes | 5,606 | -17,099 |
Provision (benefit) for income taxes | 2,318 | -8,989 |
Net income (loss) | $3,288 | ($8,110) |
Net income (loss) per common share: | ' | ' |
Basic (in usd per shares) | $0.02 | ($0.05) |
Diluted (in usd per shares) | $0.02 | ($0.05) |
Shares used in computing net income (loss) per common share: | ' | ' |
Basic (in shares) | 160,190 | 163,367 |
Diluted (in shares) | 165,313 | 163,367 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income (loss) | $3,288 | ($8,110) |
Unrealized gain (loss) on investments, net of tax | ' | -159 |
Foreign currency translation adjustment | ' | -633 |
Derivative instruments gain (loss), net of tax | ' | -713 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -179 | -1,505 |
Comprehensive income (loss) | $3,109 | ($9,615) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities: | ' | ' |
Net income (loss) | $3,288 | ($8,110) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 28,988 | 31,363 |
Stock-based compensation | 21,749 | 24,526 |
Deferred taxes | -5,802 | -895 |
Excess tax benefit from employee stock plans | -1,889 | -1,806 |
Other noncash items | 227 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Trade receivables | -5,260 | 12,148 |
Inventory | 3,807 | -2,547 |
Prepaid expenses and other assets | -6,514 | -8,668 |
Accounts payable | -5,094 | -12,186 |
Accrued and other liabilities | -84 | -17,265 |
Income taxes payable | -388 | 1,713 |
Deferred revenues | 12,341 | 24,998 |
Net cash provided by operating activities | 45,369 | 43,271 |
Investing Activities: | ' | ' |
Capital expenditures | -15,304 | -5,354 |
Purchase of available for sale securities | -94,194 | -132,178 |
Proceeds from maturities of available for sale securities | 94,245 | 90,695 |
Proceeds from sales of available for sale securities | 8,839 | 14,500 |
Acquisitions, net of cash and cash equivalents acquired | 0 | -1,000 |
Net cash used in investing activities | -6,414 | -33,337 |
Financing Activities: | ' | ' |
Proceeds from issuance of common stock under employee stock plans | 25,030 | 10,815 |
Payments for repurchases of common stock | -25,000 | -25,030 |
Payments of borrowings principle | -3,750 | -49,319 |
Excess tax benefit from employee stock plans | 1,889 | 1,806 |
Net cash used in financing activities | -1,831 | -61,728 |
Effect of exchange rate changes on cash and cash equivalents | -247 | -1,368 |
Net increase (decrease) in cash and cash equivalents | 36,877 | -53,162 |
Cash and cash equivalents at beginning of period | 208,022 | 280,509 |
Cash and cash equivalents at end of period | $244,899 | $227,347 |
Organization_And_Significant_A
Organization And Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
These accounting principles require us to make certain estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant estimates and assumptions made by management include the determination of the fair value of stock awards issued, inventory valuation, the accounting for income taxes, including the determination of the valuation allowance related to our deferred tax asset balances, goodwill and other intangible assets, reserves for uncertain tax positions, and the accounting for business combinations. We believe that the estimates and judgments upon which we rely are reasonable based upon information available to us at the time that these estimates and judgments were made. To the extent there are material differences between these estimates and actual results, our condensed consolidated financial statements will be affected. | |
Organization And Significant Accounting Policies | ' |
BASIS OF PRESENTATION | |
Basis of Presentation | |
The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. The accompanying condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of operations for the three months ended March 31, 2014 and 2013, the condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2014 and 2013, and the condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2013 are unaudited. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). They do not include all of the financial information and footnotes required by GAAP for complete financial statements. We believe the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary for the fair presentation of our balance sheet as of March 31, 2014, our results of operations, comprehensive income (loss) and our cash flows for the three months ended March 31, 2014 and 2013. All adjustments are of a normal recurring nature. The results for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2014. | |
During the three months ended March 31, 2014, there have been no significant changes in our significant accounting policies that were described in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Use of Estimates | |
These accounting principles require us to make certain estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant estimates and assumptions made by management include the determination of the fair value of stock awards issued, inventory valuation, the accounting for income taxes, including the determination of the valuation allowance related to our deferred tax asset balances, goodwill and other intangible assets, reserves for uncertain tax positions, and the accounting for business combinations. We believe that the estimates and judgments upon which we rely are reasonable based upon information available to us at the time that these estimates and judgments were made. To the extent there are material differences between these estimates and actual results, our condensed consolidated financial statements will be affected. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements (Notes) | 3 Months Ended | |
Mar. 31, 2014 | ||
Recent accounting pronouncements [Abstract] | ' | |
New Accounting Pronouncements | ' | |
2 | RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (FASB) released Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new standard requires that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss carryforward or other tax credit carryforward when settlement in this manner is available under the tax law. We are required to adopt this standard starting fiscal year 2015 and are currently in the process of determining the impact, if any, on its financial position. | ||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date (ASU No. 2013-04), which addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU No. 2013-04 will be effective for us in fiscal 2014. The adoption of this guidance did not have a significant impact to our condensed consolidated financial statements. | ||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU No. 2013-05), which addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU No. 2013-05 shall be effective prospectively beginning with fiscal 2014. The adoption of this guidance did not have a significant impact to our condensed consolidated financial statements. | ||
In July 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350)-Testing Indefinite-Lived Intangible Assets for Impairment (ASU No. 2012-02), to allow entities to use a qualitative approach to test indefinite-lived intangible assets for impairment. ASU No. 2012-02 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed quantitative impairment test by comparing the fair value of the indefinite-lived intangible asset with its carrying value. Otherwise, the quantitative impairment test is not required. ASU No. 2012-02 is effective for us in fiscal 2014 and earlier adoption was permitted. The adoption of this guidance in 2014 did not have a significant impact to our condensed consolidated financial statements. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income Per Common Share | ' | ||||||||
NET INCOME (LOSS) PER COMMON SHARE | |||||||||
Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by giving effect to all potential dilutive common shares, including stock awards. The following table sets forth the computation of net income (loss) per share: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands, except per share data) | 2014 | 2013 | |||||||
Net income (loss) | $ | 3,288 | $ | (8,110 | ) | ||||
Weighted average common shares outstanding - basic | 160,190 | 163,367 | |||||||
Dilutive effect of employee stock plans | 5,123 | — | |||||||
Weighted average common shares outstanding - diluted | 165,313 | 163,367 | |||||||
Basic net income (loss) per share | $ | 0.02 | $ | (0.05 | ) | ||||
Diluted net income (loss) per share | $ | 0.02 | $ | (0.05 | ) | ||||
Stock options outstanding with an exercise price higher than our average stock price for the periods presented, represent out-of-the-money awards and are excluded from the calculations of the diluted net income (loss) per common share since the effect would have been anti-dilutive under the treasury stock method. | |||||||||
In addition, stock options outstanding with an exercise price lower than our average stock price for the periods presented, representing in-the-money awards that would otherwise have a dilutive effect under the treasury stock method, are excluded from the calculations of the diluted loss per common share in periods with a loss since the effect in such periods would have been anti-dilutive. | |||||||||
The following weighted average outstanding options were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Total potential anti-dilutive shares of common stock | 7,370 | 17,355 | |||||||
Fair_Value_Of_Assets
Fair Value Of Assets | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Assets, Fair Value Disclosure [Abstract] | ' | ||||||||||||
Fair Value Of Assets | ' | ||||||||||||
4 | FAIR VALUE MEASUREMENTS | ||||||||||||
We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||||
A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: | |||||||||||||
Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. | |||||||||||||
Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data, for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. As of March 31, 2014 and December 31, 2013, we had no financial assets or liabilities categorized as Level 3. | |||||||||||||
The following table sets forth our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2014: | |||||||||||||
(in thousands) | Total | Level 1 | Level 2 | ||||||||||
Assets: | |||||||||||||
Corporate bonds and notes | $ | 39,383 | $ | — | $ | 39,383 | |||||||
U.S. government-sponsored enterprise obligations | 43,745 | — | 43,745 | ||||||||||
Money market funds | 38,680 | 38,680 | — | ||||||||||
Cash | 123,092 | — | — | ||||||||||
Total cash and cash equivalents | 244,900 | 38,680 | 83,128 | ||||||||||
Corporate bonds and notes | 68,955 | — | 68,955 | ||||||||||
U.S. government backed securities | 34,740 | 34,740 | — | ||||||||||
U.S. government-sponsored enterprise obligations | 195,035 | — | 195,035 | ||||||||||
FDIC-backed certificates of deposit | 16,023 | — | 16,023 | ||||||||||
Total investments | 314,753 | 34,740 | 280,013 | ||||||||||
Derivative assets | 134 | — | 134 | ||||||||||
Total assets | $ | 559,787 | $ | 73,420 | $ | 363,275 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 18 | $ | — | $ | 18 | |||||||
Borrowings | 521,250 | — | 521,250 | ||||||||||
Total liabilities | $ | 521,268 | $ | — | $ | 521,268 | |||||||
The following table sets forth our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||
(in thousands) | Total | Level 1 | Level 2 | ||||||||||
Assets: | |||||||||||||
Corporate bonds and notes | $ | 28,545 | $ | — | $ | 28,545 | |||||||
U.S. government-sponsored enterprise obligations | 18,775 | — | 18,775 | ||||||||||
Money market funds | 30,009 | 30,009 | — | ||||||||||
Cash | 130,693 | — | — | ||||||||||
Total cash and cash equivalents | 208,022 | $ | 30,009 | 47,320 | |||||||||
Corporate bonds and notes | 74,648 | $ | — | 74,648 | |||||||||
U.S. government backed securities | 23,210 | 23,210 | — | ||||||||||
U.S. government-sponsored enterprise obligations | 211,094 | — | 211,094 | ||||||||||
FDIC-backed certificates of deposit | 15,062 | — | 15,062 | ||||||||||
Total investments | 324,014 | 23,210 | 300,804 | ||||||||||
Derivative assets | 331 | — | 331 | ||||||||||
Total assets | $ | 532,367 | $ | 53,219 | $ | 348,455 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 103 | $ | — | $ | 103 | |||||||
Borrowings | 525,000 | $ | — | 525,000 | |||||||||
Total liabilities | $ | 525,103 | $ | — | $ | 525,103 | |||||||
Our primary financial instruments include its cash, cash equivalents, short-term and long-term investments, restricted cash, accounts receivable, accounts payable, short-term and long-term borrowings, and foreign currency related derivatives. Cash and cash equivalents consist primarily of highly liquid investments in money market mutual funds, government-sponsored enterprise obligations, treasury bills, commercial paper and corporate bonds and notes with remaining maturities at date of purchase of 90 days or less. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to the short period of time to their maturities. The estimated fair value of our investments is determined as the exit price in the principal market in which we would transact. The estimated fair value of the borrowings has been calculated using an estimate of the interest rate that we would be required to pay on the issuance of debt with similar terms and discounting the cash flows at that rate. Refer to Note 9 for the carrying value and additional disclosures on our borrowings. | |||||||||||||
The following tables present the gross unrealized gains and gross unrealized losses of available-for-sale securities as of March 31, 2014 and December 31, 2013: | |||||||||||||
(in thousands) | Fair Value | Unrealized | Unrealized | ||||||||||
Gains | Losses | ||||||||||||
Corporate bonds and notes | $ | 108,338 | $ | 3 | $ | (13 | ) | ||||||
U.S. government backed securities | 34,740 | 21 | (3 | ) | |||||||||
U.S. government-sponsored enterprise obligations | 238,780 | 71 | (44 | ) | |||||||||
FDIC-backed certificates of deposit | 16,023 | — | — | ||||||||||
Total available-for-sale securities at March 31, 2014 | $ | 397,881 | $ | 95 | $ | (60 | ) | ||||||
Corporate bonds and notes | $ | 103,193 | $ | 1 | $ | (24 | ) | ||||||
U.S. government backed securities | 23,210 | 7 | (2 | ) | |||||||||
U.S. government-sponsored enterprise obligations | 229,869 | 55 | (30 | ) | |||||||||
FDIC-backed certificates of deposit | 15,062 | 1 | — | ||||||||||
Total available-for-sale securities at December 31, 2013 | $ | 371,334 | $ | 64 | $ | (56 | ) | ||||||
The available-for-sale securities by classification in the condensed consolidated balance sheet is as follows: | |||||||||||||
(in thousands) | March 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Cash and cash equivalents | $ | 83,128 | $ | 47,320 | |||||||||
Short-term investments | 229,292 | 251,339 | |||||||||||
Long-term investments | 85,461 | 72,675 | |||||||||||
Total available-for-sale securities | $ | 397,881 | $ | 371,334 | |||||||||
Cash and cash equivalents in the table above excludes cash of $161.8 million and $160.7 million at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||
We regularly review our investment portfolio to determine if any security is other-than-temporarily impaired, which would require us to record an impairment charge in the period any such determination is made. In making this judgment, we evaluate, among other things, the duration and extent to which the fair value of a security is less than its cost; the financial condition of the issuer and any changes thereto; and our intent and ability to sell, or whether we will more likely than not be required to sell, the security before recovery of its amortized cost basis. We have evaluated our investments as of March 31, 2014 and have determined that no investments with unrealized losses are other-than-temporarily impaired. No investments have been in a continuous loss position greater than one year. |
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory, Gross [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
INVENTORY | |||||||||
Inventory consists primarily of hardware and related component parts and evaluation units located at customer locations, and are stated at the lower of cost (on a first-in, first-out basis) or market. Inventory is comprised of the following: | |||||||||
(in thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,997 | $ | 5,069 | |||||
Finished goods | 14,388 | 15,430 | |||||||
Evaluation units | 2,833 | 4,526 | |||||||
Total inventory | $ | 21,218 | $ | 25,025 | |||||
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2014 | |
Guarantees [Abstract] | ' |
Guarantees | ' |
GUARANTEES | |
Our agreements with customers, as well as our reseller agreements, generally include certain provisions for indemnifying customers and resellers and their affiliated parties against liabilities if our products infringe a third-party’s intellectual property rights. To date, we have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in our condensed consolidated financial statements. | |
As permitted or required under Delaware law and to the maximum extent allowable under that law, we have certain obligations to indemnify our officers, directors and certain key employees for certain events or occurrences while the officer, director or employee is or was serving at our request in such capacity. These indemnification obligations are valid as long as the director, officer or employee acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal proceeding, had no reasonable cause to believe his or her conduct was unlawful. The maximum potential amount of future payments we could be required to make under these indemnification obligations is unlimited; however, we have a director and officer insurance policy that mitigates our exposure and enables us to recover a portion of any future amounts paid. |
Lease_Commitments
Lease Commitments | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases [Abstract] | ' | ||||
Lease Commitments | ' | ||||
LEASE COMMITMENTS | |||||
We lease our facilities under non-cancelable operating lease agreements. Future minimum commitments for these operating leases in place as of March 31, 2014 with a remaining non-cancelable lease term in excess of one year are as follows: | |||||
Fiscal year | (in thousands) | ||||
2014 (remaining 9 months) | $ | 17,646 | |||
2015 | 28,585 | ||||
2016 | 27,105 | ||||
2017 | 25,157 | ||||
2018 | 23,411 | ||||
Thereafter | 93,658 | ||||
Total | $ | 215,562 | |||
The terms of certain lease agreements provide for rental payments on a graduated basis. We recognize rent expense on a straight-line basis over the lease period and have accrued for rent expense incurred but not paid. Rent expense under operating leases was $7.7 million and $5.1 million for the three months ended March 31, 2014 and 2013, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||
We use derivative instruments to partially offset our market exposures to fluctuations in certain foreign currency exchange rates, which exist as part of ongoing business operations. Our general practice is to hedge a majority of transaction exposures denominated in British pounds, Euros, Australian dollars and Singapore dollars. These instruments have maturities up to twelve months in the future. We do not enter into derivative instrument transactions for trading or speculative purposes. | |||||||||||||
Foreign currency contracts designated as cash flow hedges | |||||||||||||
We utilize foreign currency forward contracts to hedge certain forecasted foreign currency transactions relating to cost of service and operating expense. These contracts are designated and documented as cash flow hedges at their inception. All changes in time value are excluded from the cash flow hedge and recorded to Interest and other expense, net in the period incurred. The effective portion of derivative's gains or losses on these hedges is initially included in Accumulated other comprehensive income (loss) and is subsequently reclassified into the cost of service or operating expense, to which the hedged transaction relates, upon the occurrence of the forecasted transaction. We record any ineffectiveness of the hedging instruments in Interest and other expense, net in our condensed consolidated financial statements in the period incurred. No ineffectiveness was recorded during the three months ended March 31, 2014 and 2013. | |||||||||||||
The notional amount of these contracts was $54.2 million at March 31, 2014 and $49.0 million at December 31, 2013. Outstanding contracts are recognized as either assets or liabilities on the balance sheet at fair value. The amount remaining in Accumulated other comprehensive income (loss) is expected to be recognized into earnings within the next twelve months. As of March 31, 2014 the amount remaining in Accumulated other comprehensive income (loss) was a loss of $0.2 million. The amount remaining in Accumulated other comprehensive income (loss) as of December 31, 2013 was $0.5 million. | |||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||
We use foreign currency forward contracts to reduce the variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These hedges do not qualify for hedge accounting treatment. These derivatives are carried at fair value with gains and losses recognized as Interest and other expense, net. Changes in the fair value of the derivatives are largely offset within the condensed consolidated statement of operations by re-measurement of the underlying assets and liabilities. We had a notional value of $11.1 million and $11.7 million in derivative instruments that were non-designated hedges at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||
Fair Value of Derivative Instruments | |||||||||||||
The derivative assets and liabilities are recorded on a gross basis and included in Other current assets and Other accrued liabilities, respectively, in our condensed consolidated balance sheet. | |||||||||||||
The fair value of derivative instruments in our condensed consolidated balance sheets was as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||
(in thousands) | March 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Derivative assets: | |||||||||||||
Foreign currency contracts designated as cash flow hedges | $ | 74 | $ | 162 | |||||||||
Derivatives not designated as hedging instruments | 60 | 169 | |||||||||||
Total derivative assets | $ | 134 | $ | 331 | |||||||||
Derivative liabilities: | |||||||||||||
Foreign currency contracts designated as cash flow hedges | $ | 11 | $ | 57 | |||||||||
Derivatives not designated as hedging instruments | 7 | 46 | |||||||||||
Total derivative liabilities | $ | 18 | $ | 103 | |||||||||
The effects of derivatives designated as hedging instruments on our condensed consolidated statements of operations were as follows for the three months ended March 31, 2014 and 2013: | |||||||||||||
Three months ended | |||||||||||||
March 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Amount of gain (loss) recognized in Accumulated other comprehensive income (loss) on derivatives (effective portion) | $ | 111 | $ | (959 | ) | ||||||||
Amount and location of gain (loss) reclassified from Accumulated other comprehensive income (loss) into earnings (effective portion) | |||||||||||||
Cost of support and services | $ | (57 | ) | $ | 37 | ||||||||
Sales and marketing | (259 | ) | 127 | ||||||||||
Research and development | (59 | ) | 33 | ||||||||||
General and administrative | (15 | ) | 11 | ||||||||||
Total | $ | (390 | ) | $ | 208 | ||||||||
Amount and location of gain recognized in earnings on derivatives (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||
Interest and other expense, net | $ | 31 | $ | 15 | |||||||||
The effects of derivatives not designated as hedging instruments on our condensed consolidated statements of operations were as follows for the three months ended March 31, 2014 and 2013: | |||||||||||||
Three months ended | |||||||||||||
March 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Interest and other expense, net | $ | 76 | $ | (229 | ) | ||||||||
We enter into master netting arrangements with certain counterparties, which reduce credit risk by permitting net settlement of transactions with the same counterparty. A master netting arrangement may allow counterparties to net settle amounts owed to each other as a result of multiple, separate derivative transactions. These agreements also provide a right to offset corresponding amounts at the option of the non-defaulting party or non-affected party upon the early termination of these agreements by default, upon certain other termination events and a credit event upon merger. For presentation on the condensed consolidated balance sheets, it is our policy to not offset fair value amounts recognized for derivative instruments under master netting arrangements. As of March 31, 2014, we have posted no collateral for derivative instruments, therefore no amounts exist to offset the fair value amounts recognized for derivative instruments under master netting arrangements. |
Borrowings
Borrowings | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Borrowings | ' | ||||
BORROWINGS | |||||
In December 2013, we entered into a credit agreement, related security and other agreements for a $600.0 million credit facility (the 2013 Credit Facility) providing for a $300.0 million senior secured term credit facility and a $300.0 million senior secured revolving credit facility. The 2013 Credit Facility has a five year term. On December 20, 2013, we drew down $300.0 million in term loans and $225.0 million under the revolving credit facility. Pursuant to the issuance of the 2013 Credit Facility, we incurred debt issuance costs of approximately $4.2 million, which is recorded as a deferred asset and will be amortized to interest expense using the effective interest rate method. | |||||
Borrowings under the 2013 Credit Facility bear interest based on the daily balance outstanding at LIBOR (with no rate floor) plus an applicable margin (varying from 1.25% to 2.00%) or, in certain cases a base rate (based on a certain lending institution’s Prime Rate or as otherwise specified in the credit agreement, with no rate floor) plus an applicable margin (varying from 0.25% to 1.00%). The revolving credit facility also carries a commitment fee equal to the unused borrowings multiplied by an applicable margin (varying from 0.25% to 0.30%). The applicable margins are calculated quarterly and vary based on our leverage ratio as set forth in the credit agreement. The interest rate on both the term and revolving loans is LIBOR plus 175 basis points, or 2.0%, as of March 31, 2014 and December 31, 2013. Beginning in 2014, 5% of the initial term loan value is to be paid annually in quarterly installments. | |||||
The term loan contains various customary representations and warranties by us, which include customary use of materiality, material adverse effect and knowledge qualifiers. The 2013 Credit Facility also contains customary affirmative and negative covenants including, among other requirements, negative covenants that restrict our ability to dispose of assets, create liens, incur indebtedness, repurchase stock, pay dividends, make acquisitions and make investments. Further, the 2013 Credit Facility contains financial covenants that require the maintenance of minimum consolidated interest coverage and maximum consolidated leverage ratios. Specifically, we must maintain, as of the end of each fiscal quarter, an interest coverage ratio of (a) EBITDA (as defined in the 2013 Credit Facility) to (b) interest expense for the most recently ended period of four fiscal quarters of not less than 3.50 to 1.00. We must also maintain, at the end of each fiscal quarter, a consolidated leverage ratio of (x) consolidated funded debt to (y) consolidated EBITDA (as defined in the 2013 Credit Facility) as of the last day of any fiscal quarter of the Borrower as set forth in the table below: | |||||
We were in compliance with all covenants of the 2013 Credit Facility as of March 31, 2014. | |||||
As of March 31, 2014 the outstanding borrowings were $521.3 million. For the three months ended March 31, 2014, interest incurred pursuant to the term loan was $2.9 million. | |||||
The following table summarizes the future minimum principal payments on the 2013 Credit Facility outstanding as of December 31, 2013: | |||||
Fiscal year | (in thousands) | ||||
2014 (the nine months ending December 31, 2014) | $ | 11,250 | |||
2015 | 15,000 | ||||
2016 | 30,000 | ||||
2017 | 30,000 | ||||
2018 | 435,000 | ||||
Total | $ | 521,250 | |||
Common_Stock
Common Stock | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Share-based Compensation [Abstract] | ' | ||||||||
Common Stock | ' | ||||||||
COMMON STOCK | |||||||||
Stock-Based Compensation Expense | |||||||||
The following table summarizes stock-based compensation expense for stock options, RSUs and the 2006 Employee Stock Purchase Plan (the Purchase Plan) recorded in our condensed consolidated statement of operations for the three months ended March 31, 2014 and 2013: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Cost of product | $ | 331 | $ | 256 | |||||
Cost of support and services | 2,127 | 1,828 | |||||||
Sales and marketing | 9,503 | 10,864 | |||||||
Research and development | 6,787 | 7,547 | |||||||
General and administrative | 3,001 | 4,031 | |||||||
Total | $ | 21,749 | $ | 24,526 | |||||
Share Repurchase Program | |||||||||
On August 19, 2011, our Board of Directors authorized a Share Repurchase Program (the Program), which authorized us to repurchase up to $150.0 million of our outstanding common stock. On May 17, 2012, the Board of Directors approved a $150.0 million increase to the Program. On August 19, 2013, the Board of Directors announced a $200.0 million increase to the Program. On March 4, 2014, the Board of Directors announced a $250.0 million increase to the Program. The Program does not require us to purchase a minimum number of shares, and may be suspended, modified or discontinued at any time without prior notice. For the three months ended March 31, 2014, we repurchased 1,236,078 shares of common stock under the Program on the open market for an aggregate purchase price of $25.0 million, or a weighted average of $20.23 per share. The timing and amounts of these purchases were based on market conditions and other factors including price, regulatory requirements and capital availability. The share repurchases were financed by available cash balances and cash from operations. The maximum dollar value of shares of common stock that remain available for purchase under the Program is $362.7 million. | |||||||||
For the three months ended March 31, 2013, we repurchased 1,613,064 shares of common stock under the Program for an aggregate purchase price of $25.0 million, or weighted-average of $15.52 per share. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2014 | ||
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | |
Income Taxes | ' | |
INCOME TAXES | ||
Our provision for (benefit from) income taxes is based on our estimated annual effective tax rate, adjusted for discrete tax items recorded in the period. The effective tax rate was 41.3% and 52.6% for the three months ended March 31, 2014 and 2013, respectively. Our provision for (benefit from) income taxes consists of federal, foreign, and state income taxes. The provision for (benefit from) income taxes for the three months ended March 31, 2014 and 2013 was $2.3 million and $(9.0) million, respectively. | ||
For the three months ended March 31, 2014, our effective tax rate differs from the federal statutory rate due to state taxes and significant permanent differences. Significant permanent differences included taxes in foreign jurisdictions with a tax rate different than the U.S. federal statutory rate, nondeductible stock-based compensation expense, tax charges related to our intercompany transfer of intellectual property rights, and the domestic production activities deduction. | ||
Our effective tax rate for the three months ended March 31, 2013, differed from the federal statutory rate due to state taxes and significant permanent differences. Significant permanent differences included taxes in foreign jurisdictions with a tax rate different than the U.S. federal statutory rate, nondeductible stock-based compensation expense, tax charges related to our intercompany transfer of intellectual property rights, the domestic production activities deduction, and the federal R&D tax credit. The federal R&D tax credit was retroactively reinstated and extended to December 31, 2013 during the first quarter of 2013. As a result of the reinstatement, we recorded a discrete tax benefit of $4.3 million related to 2012 in the first quarter of 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||
Comprehensive Income (Loss) | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, at the end of the period, as well as the activity during the period were as follows: | ||||||||||||||||
(in thousands) | Unrealized gain (loss) on investments, net of tax | Foreign currency translation adjustment | Derivative instruments gain (loss), net of tax | Total | ||||||||||||
Balance as of December 31, 2013 | $ | (30 | ) | $ | (59 | ) | $ | 505 | $ | 416 | ||||||
Other comprehensive income (loss) before reclassifications | 54 | 31 | (655 | ) | (570 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | — | 390 | 391 | ||||||||||||
Net current-period other comprehensive income (loss) | 55 | 31 | (265 | ) | (179 | ) | ||||||||||
Balance as of March 31, 2014 | $ | 25 | $ | (28 | ) | $ | 240 | $ | 237 | |||||||
Amounts reclassified from Accumulated other comprehensive income (loss), net to Net income (loss) for unrealized gains or losses on investments are recorded in Interest and other expense, net. Amounts reclassified from Accumulated other comprehensive income (loss) to Net income (loss) for derivatives instrument gains or losses are recorded in Cost of support and services and Operating expenses. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our Chief Executive Officer. While our Chief Executive Officer evaluates the revenue for certain of our product lines, the information for all product lines is aggregated for analysis on a consolidated level as the primary basis for the allocation of resources and assessment of financial results. Accordingly, the consolidated business is considered to be one operating segment. | |||||||||
Revenue by Product Line | |||||||||
We have two product lines: Application Acceleration and Performance Management. Application Acceleration includes our wide area network (WAN) optimization products, including Steelhead and SteelFusion (formerly Granite), our Stingray virtual application delivery controllers (ADCs), and our Whitewater cloud storage delivery products. Performance Management includes application-aware network performance management (NPM) and application performance management (APM) products. The Performance Management product line combines our former Cascade products and the products acquired from OPNET Technologies, Inc. | |||||||||
The following table presents revenue by product line: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Revenue: | |||||||||
Application Acceleration | $ | 204,456 | $ | 184,962 | |||||
Performance Management | 60,960 | 61,177 | |||||||
Total revenue | $ | 265,416 | $ | 246,139 | |||||
Revenue by Geography | |||||||||
Revenue by geography is based on the billing address of the customer. The following table sets forth revenue by geographic area: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Americas | |||||||||
United States | $ | 152,962 | $ | 150,597 | |||||
Other Americas | 7,856 | 7,545 | |||||||
Total Americas | 160,818 | 158,142 | |||||||
Europe, Middle East and Africa | |||||||||
United Kingdom | 34,679 | 28,176 | |||||||
Other Europe, Middle East and Africa | 34,351 | 29,658 | |||||||
Total Europe, Middle East and Africa | 69,030 | 57,834 | |||||||
Asia Pacific | 35,568 | 30,163 | |||||||
Total revenue | $ | 265,416 | $ | 246,139 | |||||
Legal_Matters
Legal Matters | 3 Months Ended |
Mar. 31, 2014 | |
Loss Contingency [Abstract] | ' |
Legal Matters | ' |
LEGAL MATTERS | |
On June 1, 2011, we served Silver Peak Systems, Inc. with a lawsuit, filed in the United States District Court for the District of Delaware, alleging infringement of certain patents. The lawsuit seeks unspecified damages and injunctive relief. On July 22, 2011, Silver Peak Systems denied the allegations and requested declaratory judgments of invalidity and non-infringement. On December 21, 2011, we amended our lawsuit against Silver Peak Systems to allege infringement of an additional patent. Our lawsuit against Silver Peak Systems currently alleges infringement of three patents. Trial of our claims against Silver Peak Systems in this matter is currently stayed pending a separate U.S. Patent and Trademark Office proceeding. | |
On August 17, 2011, Silver Peak Systems amended its counterclaims against us, alleging infringement by Riverbed of three U.S. patents: 7,630,295, titled “Network Device Continuity”; 7,945,736, titled “Dynamic Load Management of Network Memory”; and 7,948,921, titled “Automatic Network Optimization.” Silver Peak subsequently dropped its claims with respect to U.S. patent 7,630,295, titled “Network Device Continuity.” The trial on the remaining two patents commenced on March 24, 2014. On April 1, 2014, the jury rendered a verdict of infringement on U.S. patents 7,948,921 and 7,945,736 based on certain features offered on Riverbed Steelhead products. We disagree with the verdict, and expect to prevail before the District Court on post-trial motions. In the event that we do not prevail on post-trial motions, we intend to appeal to the Federal Circuit. There has been no trial or discovery on damages, and such a trial and discovery would be scheduled only if we lose on appeal to the Federal Circuit. In addition to damages, Silver Peak is seeking an injunction prohibiting Riverbed from offering those features. | |
At this time we are unable to estimate any range of reasonably possible loss relating to these actions. | |
On June 28, 2013, we served Silver Peak Systems with an additional lawsuit, filed in the United States District Court for the Northern District of California, alleging infringement of two patents that are not covered by the lawsuit in Delaware. The California lawsuit seeks unspecified damages and injunctive relief. On July 22, 2013, Silver Peak Systems denied the allegations and requested declaratory judgments of invalidity and non-infringement. On August 12, 2013, Silver Peak Systems amended its counterclaims against us, alleging infringement by Riverbed of U.S. patent 8,392,684, titled “Data Encryption in a Network Memory Architecture for Providing Data Based on Local Accessibility”. On August 26, 2013 we denied Silver Peak Systems’ allegations and requested declaratory judgments of invalidity and non-infringement. These actions are currently stayed pending separate U.S. Patent and Trademark Office proceedings. At this time we are unable to estimate any range of reasonably possible loss relating to these actions. We believe that we have meritorious defenses to the counterclaims against us, and we intend to vigorously contest these counterclaims. | |
In connection with our July 2011 acquisition of the outstanding securities of Zeus Technology Limited (Zeus), the share purchase agreement provided for certain additional potential payments (acquisition-related contingent consideration) totaling up to $27.0 million in cash, based on achievement of certain bookings targets related to Zeus products for the period from July 20, 2011 through July 31, 2012 (the Zeus Earn-Out period). The share purchase agreement also provided for a potential $3.0 million payment as an incentive bonus to former employees of Zeus, based on achievement of certain bookings targets related to Zeus products for the Zeus Earn-Out period. | |
In October 2012 we served the representative of the Zeus shareholders, as lead defendant and proposed defendant class representative for all other similarly situated former shareholders of Zeus, with a lawsuit, filed in the Superior Court of the State of California, for declaratory relief. The lawsuit seeks declaratory judgment that, among other things, (a) Riverbed is not in breach of the share purchase agreement, and (b) Riverbed does not owe any acquisition-related contingent consideration under the share purchase agreement because the necessary conditions precedent to the payment of acquisition-related contingent consideration did not occur. In November 2012, the representative of the Zeus shareholders filed a cross-complaint against Riverbed and Riverbed Technology Limited in the Superior Court of the State of California. The cross-complaint claims breach of contract and breach of the covenant of good faith and fair dealing, and seeks declaratory judgment that Riverbed has breached the share purchase agreement and that the entire $27.0 million in contingent consideration is payable to Zeus shareholders. Discovery is ongoing, and the Court has approved a class treatment of the former shareholders, though several have declined to participate. The trial is currently scheduled for November 3, 2014. We believe that the contention of the representative of the Zeus shareholders, and the Court-appointed class representatives for shareholders, is without merit and intend to vigorously defend our determination. | |
In November 2012 we received a grand jury subpoena issued by the United States District Court for the Eastern District of Virginia. The subpoena requested documents related to certain federal government contracting matters, including $19 million transaction involving the sale of our products and services by a Riverbed reseller to an agency of the federal government in 2009. In January 2014 we received a notice that the Civil Division of the United States Attorney’s Office for the Eastern District of Virginia has opened a civil investigation into the same matters. | |
From time to time, we are subject to various legal proceedings, claims and litigation arising in the ordinary course of business. There are no currently pending legal proceedings at March 31, 2014 that, in the opinion of management, would have a material adverse effect on our financial position, results of operations or cash flows. There can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our financial position, results of operations, or cash flows. |
Organization_And_Significant_A1
Organization And Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. The accompanying condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of operations for the three months ended March 31, 2014 and 2013, the condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2014 and 2013, and the condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2013 are unaudited. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). They do not include all of the financial information and footnotes required by GAAP for complete financial statements. We believe the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary for the fair presentation of our balance sheet as of March 31, 2014, our results of operations, comprehensive income (loss) and our cash flows for the three months ended March 31, 2014 and 2013. All adjustments are of a normal recurring nature. The results for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2014. | |
During the three months ended March 31, 2014, there have been no significant changes in our significant accounting policies that were described in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Use Of Estimates | ' |
Use of Estimates | |
These accounting principles require us to make certain estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant estimates and assumptions made by management include the determination of the fair value of stock awards issued, inventory valuation, the accounting for income taxes, including the determination of the valuation allowance related to our deferred tax asset balances, goodwill and other intangible assets, reserves for uncertain tax positions, and the accounting for business combinations. We believe that the estimates and judgments upon which we rely are reasonable based upon information available to us at the time that these estimates and judgments were made. To the extent there are material differences between these estimates and actual results, our condensed consolidated financial statements will be affected. |
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation Of Net Income (Loss) Per Share | ' | ||||||||
The following table sets forth the computation of net income (loss) per share: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands, except per share data) | 2014 | 2013 | |||||||
Net income (loss) | $ | 3,288 | $ | (8,110 | ) | ||||
Weighted average common shares outstanding - basic | 160,190 | 163,367 | |||||||
Dilutive effect of employee stock plans | 5,123 | — | |||||||
Weighted average common shares outstanding - diluted | 165,313 | 163,367 | |||||||
Basic net income (loss) per share | $ | 0.02 | $ | (0.05 | ) | ||||
Diluted net income (loss) per share | $ | 0.02 | $ | (0.05 | ) | ||||
Antidilutive Securities Excluded From Computation Of Diluted Net Income Per Common Share | ' | ||||||||
: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Total potential anti-dilutive shares of common stock | 7,370 | 17,355 | |||||||
Fair_Value_Of_Assets_Tables
Fair Value Of Assets (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Assets, Fair Value Disclosure [Abstract] | ' | ||||||||||||
Fair Value Measurements Of Cash, Cash Equivalents And Investments | ' | ||||||||||||
s of March 31, 2014: | |||||||||||||
(in thousands) | Total | Level 1 | Level 2 | ||||||||||
Assets: | |||||||||||||
Corporate bonds and notes | $ | 39,383 | $ | — | $ | 39,383 | |||||||
U.S. government-sponsored enterprise obligations | 43,745 | — | 43,745 | ||||||||||
Money market funds | 38,680 | 38,680 | — | ||||||||||
Cash | 123,092 | — | — | ||||||||||
Total cash and cash equivalents | 244,900 | 38,680 | 83,128 | ||||||||||
Corporate bonds and notes | 68,955 | — | 68,955 | ||||||||||
U.S. government backed securities | 34,740 | 34,740 | — | ||||||||||
U.S. government-sponsored enterprise obligations | 195,035 | — | 195,035 | ||||||||||
FDIC-backed certificates of deposit | 16,023 | — | 16,023 | ||||||||||
Total investments | 314,753 | 34,740 | 280,013 | ||||||||||
Derivative assets | 134 | — | 134 | ||||||||||
Total assets | $ | 559,787 | $ | 73,420 | $ | 363,275 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 18 | $ | — | $ | 18 | |||||||
Borrowings | 521,250 | — | 521,250 | ||||||||||
Total liabilities | $ | 521,268 | $ | — | $ | 521,268 | |||||||
The following table sets forth our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||
(in thousands) | Total | Level 1 | Level 2 | ||||||||||
Assets: | |||||||||||||
Corporate bonds and notes | $ | 28,545 | $ | — | $ | 28,545 | |||||||
U.S. government-sponsored enterprise obligations | 18,775 | — | 18,775 | ||||||||||
Money market funds | 30,009 | 30,009 | — | ||||||||||
Cash | 130,693 | — | — | ||||||||||
Total cash and cash equivalents | 208,022 | $ | 30,009 | 47,320 | |||||||||
Corporate bonds and notes | 74,648 | $ | — | 74,648 | |||||||||
U.S. government backed securities | 23,210 | 23,210 | — | ||||||||||
U.S. government-sponsored enterprise obligations | 211,094 | — | 211,094 | ||||||||||
FDIC-backed certificates of deposit | 15,062 | — | 15,062 | ||||||||||
Total investments | 324,014 | 23,210 | 300,804 | ||||||||||
Derivative assets | 331 | — | 331 | ||||||||||
Total assets | $ | 532,367 | $ | 53,219 | $ | 348,455 | |||||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 103 | $ | — | $ | 103 | |||||||
Borrowings | 525,000 | $ | — | 525,000 | |||||||||
Total liabilities | $ | 525,103 | $ | — | $ | 525,103 | |||||||
Gross Unrealized Gains And Gross Unrealized Losses | ' | ||||||||||||
The following tables present the gross unrealized gains and gross unrealized losses of available-for-sale securities as of March 31, 2014 and December 31, 2013: | |||||||||||||
(in thousands) | Fair Value | Unrealized | Unrealized | ||||||||||
Gains | Losses | ||||||||||||
Corporate bonds and notes | $ | 108,338 | $ | 3 | $ | (13 | ) | ||||||
U.S. government backed securities | 34,740 | 21 | (3 | ) | |||||||||
U.S. government-sponsored enterprise obligations | 238,780 | 71 | (44 | ) | |||||||||
FDIC-backed certificates of deposit | 16,023 | — | — | ||||||||||
Total available-for-sale securities at March 31, 2014 | $ | 397,881 | $ | 95 | $ | (60 | ) | ||||||
Corporate bonds and notes | $ | 103,193 | $ | 1 | $ | (24 | ) | ||||||
U.S. government backed securities | 23,210 | 7 | (2 | ) | |||||||||
U.S. government-sponsored enterprise obligations | 229,869 | 55 | (30 | ) | |||||||||
FDIC-backed certificates of deposit | 15,062 | 1 | — | ||||||||||
Total available-for-sale securities at December 31, 2013 | $ | 371,334 | $ | 64 | $ | (56 | ) | ||||||
The available-for-sale securities by classification in the condensed consolidated balance sheet is as follows: | |||||||||||||
(in thousands) | March 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Cash and cash equivalents | $ | 83,128 | $ | 47,320 | |||||||||
Short-term investments | 229,292 | 251,339 | |||||||||||
Long-term investments | 85,461 | 72,675 | |||||||||||
Total available-for-sale securities | $ | 397,881 | $ | 371,334 | |||||||||
Cash and cash equivalents in the table above excludes cash of $161.8 million and $160.7 million at March 31, 2014 and December 31, 2013, respectively. |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory, Gross [Abstract] | ' | ||||||||
Components Of Inventory | ' | ||||||||
Inventory is comprised of the following: | |||||||||
(in thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,997 | $ | 5,069 | |||||
Finished goods | 14,388 | 15,430 | |||||||
Evaluation units | 2,833 | 4,526 | |||||||
Total inventory | $ | 21,218 | $ | 25,025 | |||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases [Abstract] | ' | ||||
Operating Leases, Future Minimum Commitments | ' | ||||
Future minimum commitments for these operating leases in place as of March 31, 2014 with a remaining non-cancelable lease term in excess of one year are as follows: | |||||
Fiscal year | (in thousands) | ||||
2014 (remaining 9 months) | $ | 17,646 | |||
2015 | 28,585 | ||||
2016 | 27,105 | ||||
2017 | 25,157 | ||||
2018 | 23,411 | ||||
Thereafter | 93,658 | ||||
Total | $ | 215,562 | |||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Schedule of Derivative Instruments in Condensed Consolidated Balance Sheet | ' | ||||||||||||
The fair value of derivative instruments in our condensed consolidated balance sheets was as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||
(in thousands) | March 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Derivative assets: | |||||||||||||
Foreign currency contracts designated as cash flow hedges | $ | 74 | $ | 162 | |||||||||
Derivatives not designated as hedging instruments | 60 | 169 | |||||||||||
Total derivative assets | $ | 134 | $ | 331 | |||||||||
Derivative liabilities: | |||||||||||||
Foreign currency contracts designated as cash flow hedges | $ | 11 | $ | 57 | |||||||||
Derivatives not designated as hedging instruments | 7 | 46 | |||||||||||
Total derivative liabilities | $ | 18 | $ | 103 | |||||||||
Schedule of Derivative Instruments Designated as Hedging Instruments on Statement of Operations | ' | ||||||||||||
The effects of derivatives designated as hedging instruments on our condensed consolidated statements of operations were as follows for the three months ended March 31, 2014 and 2013: | |||||||||||||
Three months ended | |||||||||||||
March 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Amount of gain (loss) recognized in Accumulated other comprehensive income (loss) on derivatives (effective portion) | $ | 111 | $ | (959 | ) | ||||||||
Amount and location of gain (loss) reclassified from Accumulated other comprehensive income (loss) into earnings (effective portion) | |||||||||||||
Cost of support and services | $ | (57 | ) | $ | 37 | ||||||||
Sales and marketing | (259 | ) | 127 | ||||||||||
Research and development | (59 | ) | 33 | ||||||||||
General and administrative | (15 | ) | 11 | ||||||||||
Total | $ | (390 | ) | $ | 208 | ||||||||
Amount and location of gain recognized in earnings on derivatives (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||
Interest and other expense, net | $ | 31 | $ | 15 | |||||||||
Schedule of Derivatives Not Designated as Hedging Instruments, Effect on Statement of Operations | ' | ||||||||||||
The effects of derivatives not designated as hedging instruments on our condensed consolidated statements of operations were as follows for the three months ended March 31, 2014 and 2013: | |||||||||||||
Three months ended | |||||||||||||
March 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Interest and other expense, net | $ | 76 | $ | (229 | ) | ||||||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Borrowings [Abstract] | ' | ||||
Schedule of Maturities of Long-term Debt | ' | ||||
The following table summarizes the future minimum principal payments on the 2013 Credit Facility outstanding as of December 31, 2013: | |||||
Fiscal year | (in thousands) | ||||
2014 (the nine months ending December 31, 2014) | $ | 11,250 | |||
2015 | 15,000 | ||||
2016 | 30,000 | ||||
2017 | 30,000 | ||||
2018 | 435,000 | ||||
Total | $ | 521,250 | |||
Common_Stock_Tables
Common Stock (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Share-based Compensation [Abstract] | ' | ||||||||
Summary Of Stock-Based Compensation Expense | ' | ||||||||
The following table summarizes stock-based compensation expense for stock options, RSUs and the 2006 Employee Stock Purchase Plan (the Purchase Plan) recorded in our condensed consolidated statement of operations for the three months ended March 31, 2014 and 2013: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Cost of product | $ | 331 | $ | 256 | |||||
Cost of support and services | 2,127 | 1,828 | |||||||
Sales and marketing | 9,503 | 10,864 | |||||||
Research and development | 6,787 | 7,547 | |||||||
General and administrative | 3,001 | 4,031 | |||||||
Total | $ | 21,749 | $ | 24,526 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, at the end of the period, as well as the activity during the period were as follows: | ||||||||||||||||
(in thousands) | Unrealized gain (loss) on investments, net of tax | Foreign currency translation adjustment | Derivative instruments gain (loss), net of tax | Total | ||||||||||||
Balance as of December 31, 2013 | $ | (30 | ) | $ | (59 | ) | $ | 505 | $ | 416 | ||||||
Other comprehensive income (loss) before reclassifications | 54 | 31 | (655 | ) | (570 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | — | 390 | 391 | ||||||||||||
Net current-period other comprehensive income (loss) | 55 | 31 | (265 | ) | (179 | ) | ||||||||||
Balance as of March 31, 2014 | $ | 25 | $ | (28 | ) | $ | 240 | $ | 237 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||
Revenue by Product Line | |||||||||
We have two product lines: Application Acceleration and Performance Management. Application Acceleration includes our wide area network (WAN) optimization products, including Steelhead and SteelFusion (formerly Granite), our Stingray virtual application delivery controllers (ADCs), and our Whitewater cloud storage delivery products. Performance Management includes application-aware network performance management (NPM) and application performance management (APM) products. The Performance Management product line combines our former Cascade products and the products acquired from OPNET Technologies, Inc. | |||||||||
The following table presents revenue by product line: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Revenue: | |||||||||
Application Acceleration | $ | 204,456 | $ | 184,962 | |||||
Performance Management | 60,960 | 61,177 | |||||||
Total revenue | $ | 265,416 | $ | 246,139 | |||||
Schedule of Segment Information by Geographic Area | ' | ||||||||
Revenue by Geography | |||||||||
Revenue by geography is based on the billing address of the customer. The following table sets forth revenue by geographic area: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Americas | |||||||||
United States | $ | 152,962 | $ | 150,597 | |||||
Other Americas | 7,856 | 7,545 | |||||||
Total Americas | 160,818 | 158,142 | |||||||
Europe, Middle East and Africa | |||||||||
United Kingdom | 34,679 | 28,176 | |||||||
Other Europe, Middle East and Africa | 34,351 | 29,658 | |||||||
Total Europe, Middle East and Africa | 69,030 | 57,834 | |||||||
Asia Pacific | 35,568 | 30,163 | |||||||
Total revenue | $ | 265,416 | $ | 246,139 | |||||
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share (Computation Of Net Income Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income (loss) | $3,288 | ($8,110) |
Weighted average common shares outstanding - basic | 160,190 | 163,367 |
Dilutive effect of employee stock plans | 5,123 | 0 |
Weighted average common shares outstanding - diluted | 165,313 | 163,367 |
Basic net income (loss) per share (in usd per share) | $0.02 | ($0.05) |
Diluted net income (loss) per share (in usd per share) | $0.02 | ($0.05) |
Net_Income_Loss_Per_Common_Sha3
Net Income (Loss) Per Common Share (Antidilutive Securities Excluded From Computation Of Diluted Net Income Per Common Share) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Total potential anti-dilutive shares of common stock | 7,370 | 17,355 |
Fair_Value_Of_Assets_Narrative
Fair Value Of Assets (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' |
Investments other than temporarily impaired | $0 | ' | ' | ' |
Investments in continuous unrealized loss position, 12 months or longer | 0 | ' | ' | ' |
Cash and cash equivalents | $244,899,000 | $208,022,000 | $227,347,000 | $280,509,000 |
Fair_Value_Of_Assets_Fair_Valu
Fair Value Of Assets (Fair Value Measurements Of Cash, Cash Equivalents, Investments, Derivative assets and liabilities, and Borrowings) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | $244,900 | $208,022 |
Total investments | 314,753 | 324,014 |
Derivative asset | 134 | 331 |
Assets, Fair Value Disclosure, Recurring | 559,787 | 532,367 |
Derivative liabilities | 18 | 103 |
Borrowings | 521,250 | 525,000 |
Liabilities, Fair Value Disclosure, Recurring | 521,268 | 525,103 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 38,680 | 30,009 |
Total investments | 34,740 | 23,210 |
Derivative asset | ' | ' |
Assets, Fair Value Disclosure, Recurring | 73,420 | 53,219 |
Derivative liabilities | ' | ' |
Borrowings | ' | ' |
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 83,128 | 47,320 |
Total investments | 280,013 | 300,804 |
Derivative asset | 134 | 331 |
Assets, Fair Value Disclosure, Recurring | 363,275 | 348,455 |
Derivative liabilities | 18 | 103 |
Borrowings | 521,250 | 525,000 |
Liabilities, Fair Value Disclosure, Recurring | 521,268 | 525,103 |
Corporate Bonds And Notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 39,383 | 28,545 |
Total investments | 68,955 | 74,648 |
Corporate Bonds And Notes [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | ' | ' |
Total investments | ' | ' |
Corporate Bonds And Notes [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 39,383 | 28,545 |
Total investments | 68,955 | 74,648 |
U.S. Government Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total investments | 34,740 | 23,210 |
U.S. Government Backed Securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total investments | 34,740 | 23,210 |
U.S. Government Backed Securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total investments | ' | ' |
U.S. Government-Sponsored Enterprise Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 43,745 | 18,775 |
Total investments | 195,035 | 211,094 |
U.S. Government-Sponsored Enterprise Obligations [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | ' | ' |
Total investments | ' | ' |
U.S. Government-Sponsored Enterprise Obligations [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 43,745 | 18,775 |
Total investments | 195,035 | 211,094 |
Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 38,680 | 30,009 |
Money Market Funds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 38,680 | 30,009 |
Money Market Funds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | ' | ' |
FDIC-Backed Certificates Of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total investments | 16,023 | 15,062 |
FDIC-Backed Certificates Of Deposit [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total investments | ' | ' |
FDIC-Backed Certificates Of Deposit [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total investments | 16,023 | 15,062 |
Cash [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | 123,092 | 130,693 |
Cash [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | ' | ' |
Cash [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash and cash equivalents | ' | ' |
Fair_Value_Of_Assets_Gross_Unr
Fair Value Of Assets (Gross Unrealized Gains And Gross Unrealized Losses) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | $244,899 | $227,347 | $208,022 | $280,509 |
Fair Value | 397,881 | ' | 371,334 | ' |
Unrealized Gains | 95 | 64 | ' | ' |
Unrealized Losses | -60 | -56 | ' | ' |
Short-term Investments | 229,292 | ' | 251,339 | ' |
Long-term Investments | 85,461 | ' | 72,675 | ' |
Unrealized Gains [Member] | Corporate Bonds And Notes [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Fair Value | 108,338 | ' | 103,193 | ' |
Unrealized Gains | 3 | 1 | ' | ' |
Unrealized Gains [Member] | U.S. Government Backed Securities [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Fair Value | 34,740 | ' | 23,210 | ' |
Unrealized Gains | 21 | 7 | ' | ' |
Unrealized Gains [Member] | U.S. Government-Sponsored Enterprise Obligations [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Fair Value | 238,780 | ' | 229,869 | ' |
Unrealized Gains | 71 | 55 | ' | ' |
Unrealized Gains [Member] | FDIC-Backed Certificates Of Deposit [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Fair Value | 16,023 | ' | 15,062 | ' |
Unrealized Gains | 0 | 1 | ' | ' |
Unrealized Losses [Member] | Corporate Bonds And Notes [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Unrealized Losses | -13 | -24 | ' | ' |
Unrealized Losses [Member] | U.S. Government Backed Securities [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Unrealized Losses | -3 | -2 | ' | ' |
Unrealized Losses [Member] | U.S. Government-Sponsored Enterprise Obligations [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Unrealized Losses | -44 | -30 | ' | ' |
Unrealized Losses [Member] | FDIC-Backed Certificates Of Deposit [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Unrealized Losses | 0 | 0 | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 161,772 | ' | 160,702 | ' |
Cash Equivalents [Member] | ' | ' | ' | ' |
Gross Unrealized Gains (Losses) [Line Items] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | $83,128 | ' | $47,320 | ' |
Inventory_Components_Of_Invent
Inventory (Components Of Inventory) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Gross [Abstract] | ' | ' |
Raw materials | $3,997 | $5,069 |
Finished goods | 14,388 | 15,430 |
Evaluation units | 2,833 | 4,526 |
Total inventory | $21,218 | $25,025 |
Lease_Commitments_Details
Lease Commitments (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Leases [Abstract] | ' | ' |
2014 (the nine months ending December 31) | $17,646,000 | ' |
2015 | 28,585,000 | ' |
2016 | 27,105,000 | ' |
2017 | 25,157,000 | ' |
2018 | 23,411,000 | ' |
Thereafter | 93,658,000 | ' |
Total | 215,562,000 | ' |
Rent expense under operating leases | $7,700,000 | $5,100,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Accumulated other comprehensive income | $237,000 | $416,000 |
Derivative, Notional Amount | 54,200,000 | 49,000,000 |
Foreign currency derivative instruments not designated as hedging instruments at fair value, net | 11,100,000 | 11,700,000 |
Accumulated Net Unrealized Derivative Gains (Losses) [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $240,000 | $505,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Fair Value of Derivative Instruments, Balance Sheet) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Derivative Assets | $134 | $331 |
Derivative Liabilities | 18 | 103 |
Foreign currency contracts designated as cash flow hedges | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets | 74 | 162 |
Derivative Liabilities | 11 | 57 |
Derivatives not designated as hedging instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets | 60 | 169 |
Derivative Liabilities | $7 | $46 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Fair Value of Derivative Instruments, Statement of Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion) | $111 | ($959) |
Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -390 | 208 |
Cost of support and services | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -57 | 37 |
Sales and Marketing | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -259 | 127 |
Research and Development | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -59 | 33 |
General and Administrative | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -15 | 11 |
Other Income (expense), net | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount and Location of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $31 | $15 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Effects of Derivatives not Designated as Hedges) (Details) (Derivatives not designated as hedging instruments, Other Income [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivatives not designated as hedging instruments | Other Income [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Interest and other expense, net | $76 | ($229) |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $11,250,000 | ' | ' |
Debt, Long-term and Short-term, Combined Amount | 521,250,000 | ' | 600,000,000 |
Debt instrument, loan term | '5 years | ' | ' |
Debt Issuance Cost | ' | 4,200,000 | ' |
Debt instrument, current interest rate | 2.00% | ' | ' |
Debt instrument, periodic payment, percentage of initial loan value | '0.05 | ' | ' |
Interest expense | 2,900,000 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 15,000,000 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 30,000,000 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 30,000,000 | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 435,000,000 | ' | ' |
Credit Facility [Domain] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | 225,000,000 | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 300,000,000 | ' | ' |
Credit Facility [Domain] | Minimum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ' | ' |
Credit Facility [Domain] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate | 1.25% | ' | ' |
Credit Facility [Domain] | Minimum [Member] | Prime Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate | 0.25% | ' | ' |
Credit Facility [Domain] | Maximum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ' | ' |
Credit Facility [Domain] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate | 2.00% | ' | ' |
Credit Facility [Domain] | Maximum [Member] | Prime Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate | 1.00% | ' | ' |
Secured Debt [Member] | Credit Facility [Domain] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt, Long-term and Short-term, Combined Amount | 300,000,000 | ' | ' |
Debt instrument, face amount | $300,000,000 | ' | ' |
London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate | 1.75% | ' | ' |
Common_Stock_Narrative_Details
Common Stock (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 05, 2014 | Aug. 19, 2013 | 17-May-12 | Aug. 19, 2011 | Mar. 31, 2014 |
Share Repurchase Program [Member] | Share Repurchase Program [Member] | Share Repurchase Program [Member] | Share Repurchase Program [Member] | Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, authorized amount | ' | ' | ' | ' | ' | $150 | ' |
Stock repurchase program, increased authorized amount | ' | ' | 250 | 200 | 150 | ' | ' |
Number of common stock shares repurchased | 1,236,078 | 1,613,064 | ' | ' | ' | ' | ' |
Value of common stock repurchased | 25 | 25 | ' | ' | ' | ' | ' |
Weighted average purchase price per share | 20.23 | 15.52 | ' | ' | ' | ' | ' |
Stock repurchase program, remaining authorized repurchase amount | ' | ' | ' | ' | ' | ' | $362.70 |
Common_Stock_Summary_Of_StockB
Common Stock (Summary Of Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation expense | $21,749 | $24,526 |
General and Administrative Expense [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation expense | 3,001 | 4,031 |
Research and Development Expense [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation expense | 6,787 | 7,547 |
Selling and Marketing Expense [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation expense | 9,503 | 10,864 |
Cost Of Support And Services [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation expense | 2,127 | 1,828 |
Cost of Goods, Total [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation expense | $331 | $256 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' |
Effective tax rate | 41.30% | 52.60% |
Income tax expense (benefit) | $2,318,000 | ($8,989,000) |
Income tax reconciliation, tax credits, research | ' | $4,300,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $237 | ' | $416 |
Other comprehensive income before reclassifications | -570 | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 391 | ' | ' |
Unrealized gain (loss) on investments, net of tax | ' | -159 | ' |
Foreign currency translation adjustment | ' | -633 | ' |
Derivative instruments gain (loss), net of tax | ' | -713 | ' |
Other Comprehensive Income (Loss), Net of Tax | -179 | ' | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Other comprehensive income before reclassifications | 54 | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | ' | ' |
Unrealized gain (loss) on investments, net of tax | 55 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 25 | ' | -30 |
Accumulated Net Unrealized Foreign Currency Gains (Losses) [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Other comprehensive income before reclassifications | 31 | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ' | ' |
Foreign currency translation adjustment | 31 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | -28 | ' | -59 |
Accumulated Net Unrealized Derivative Gains (Losses) [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Other comprehensive income before reclassifications | -655 | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 390 | ' | ' |
Derivative instruments gain (loss), net of tax | -265 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $240 | ' | $505 |
Segment_Information_Segment_In
Segment Information (Segment Information, by Product Line) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Revenue | $265,416 | $246,139 |
Application Acceleration [Member] | ' | ' |
Revenue: | ' | ' |
Revenue | 204,456 | 184,962 |
Performance Management [Member] | ' | ' |
Revenue: | ' | ' |
Revenue | $60,960 | $61,177 |
Segment_Information_Segment_In1
Segment Information (Segment Information, Revenue By Geographic Area) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | $265,416 | $246,139 |
United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | 152,962 | 150,597 |
Other Americas [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | 7,856 | 7,545 |
Total Americas [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | 160,818 | 158,142 |
United Kingdom [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | 34,679 | 28,176 |
Other Europe Middle East And Africa [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | 34,351 | 29,658 |
Total Europe, Middle East And Africa [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | 69,030 | 57,834 |
Asia Pacific [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenue | $35,568 | $30,163 |
Legal_Matters_Details
Legal Matters (Details) (USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2012 | Nov. 30, 2012 | Jul. 31, 2012 | Jul. 31, 2012 |
Zeus Technology, Ltd. [Member] | Zeus Technology, Ltd. [Member] | Zeus Incentive Bonus [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Maximum potential incentive bonus paid to former employees of Zeus | ' | ' | ' | $3 |
Contingent consideration disputed amount | ' | 27 | 27 | ' |
Transaction with agency of federal government, amount | $19 | ' | ' | ' |