Quantenna Communications (QTNA) 10-Q 9 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 02, 2017	May 02, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	QUANTENNA COMMUNICATIONS INC
Entity Central Index Key	1,370,702
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 2, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity common stock, shares outstanding		33,698,512

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 02, 2017	Jan. 01, 2017
Current assets
Cash and cash equivalents	$ 114,401	$ 117,045
Accounts receivable	17,812	14,480
Inventory	13,361	15,820
Prepaid expenses and other current assets	3,745	2,470
Total current assets	149,319	149,815
Property and equipment, net	6,025	4,742
Other long-term assets	743	232
Total assets	156,087	154,789
Current liabilities
Accounts payable	1,896	7,776
Accrued liabilities and other current liabilities	18,163	11,801
Long-term debt, current portion	2,288	2,257
Total current liabilities	22,347	21,834
Long-term debt	3,063	3,680
Other long-term liabilities	476	527
Total liabilities	25,886	26,041
Commitments and contingencies (see Note 6)
Stockholders’ equity
Common stock, $0.0001 par value 1,000,000,000 and 1,000,000,000, shares authorized at April 2, 2017 and January 1, 2017, respectively; 33,230,450 and 33,076,150 shares issued and outstanding at April 2, 2017 and January 1, 2017, respectively	3	3
Additional paid-in capital	292,710	290,319
Accumulated deficit	(162,512)	(161,574)
Total stockholders’ equity	130,201	128,748
Total liabilities, and stockholders’ equity	$ 156,087	$ 154,789

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 02, 2017	Jan. 01, 2017
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	33,230,450	33,076,150
Common stock, shares outstanding (in shares)	33,230,450	33,076,150

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Income Statement [Abstract]
Revenue	$ 37,891	$ 24,437
Cost of revenue	19,307	12,534
Gross profit	18,584	11,903
Operating expenses:
Research and development	12,633	10,227
Sales and marketing	2,914	1,630
General and administrative	3,389	1,562
Total operating expenses	18,936	13,419
Loss from operations	(352)	(1,516)
Interest expense	(197)	(114)
Other income (expense), net	200	(68)
Loss before income taxes	(349)	(1,698)
Provision for income taxes	(535)	(17)
Net loss and comprehensive loss	$ (884)	$ (1,715)
Net loss per share, basic and diluted (USD per share)	$ (0.03)	$ (1.63)
Weighted average shares used to compute basic and diluted net loss per share (in shares)	33,106,518	1,050,798

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Cash flows from operating activities
Net loss	$ (884)	$ (1,715)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	479	269
Stock-based compensation expense	2,104	304
Non-cash interest expense	135	34
Change in fair value of convertible preferred stock warrants liability	0	10
Changes in assets and liabilities
Accounts receivable	(3,332)	2,148
Inventory	2,459	148
Prepaid expenses and other current assets	(1,324)	(315)
Other assets	(511)	4
Accounts payable	(5,870)	10
Accrued liabilities and other current liabilities	6,309	1,900
Net cash provided by (used) in operating activities	(435)	2,797
Cash flows from investing activities
Purchase of property and equipment	(1,700)	(14)
Net cash used in investing activities	(1,700)	(14)
Cash flows from financing activities
Proceeds from issuance of common stock	194	53
Payments of deferred offering costs	(31)	0
Repayments of long-term debt	(672)	(942)
Net cash used in financing activities	(509)	(889)
Net increase (decrease) in cash and cash equivalents	(2,644)	1,894
Beginning of period	117,045	18,850
End of period	114,401	20,744
Supplemental disclosure of cash flow information
Interest paid during the period	182	79
Income taxes paid during the period	62	32
Supplemental disclosure of non-cash investing and financing activities
Unpaid deferred offering costs	33	0
Purchases of property and equipment included in accounts payable and accrued liabilities and other current liabilities	$ 276	$ 0

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 02, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Summary of Significant Accounting Policies	The Company and Summary of Significant Accounting Policies Quantenna Communications, Inc. (the “Company”) was incorporated in the State of Delaware on November 28, 2005. The Company designs, develops and markets advanced high-speed wireless communication solutions enabling wireless local area networking. The Company’s wireless communication solutions deliver high performance, speed, and reliability for wireless networks and devices. Reporting Calendar The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Sunday closest to December 31. Fiscal 2017 will have 52 weeks and fiscal 2016 had 53 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks. Initial Public Offering On October 27, 2016, the Company’s registration statement on Form S-1 relating to its initial public offering (“IPO”) of its common stock was declared effective by the U.S. Securities and Exchange Commission (“SEC”) and the shares of its common stock began trading on The NASDAQ Global Select Market on October 28, 2016. The public offering price of the shares sold in the IPO was $16.00 per share. The IPO closed on November 2, 2016 and a second close occurred on November 25, 2016 , pursuant to which the Company sold 6,775,466 shares of common stock, including the sale of 75,466 shares of common stock to the underwriters upon their exercise of their option to purchase additional shares. The Company received net proceeds of approximately $97.4 million , after underwriting discounts, commissions and offering expenses. Immediately prior to the consummation of the IPO, all outstanding shares of convertible preferred stock and preferred stock warrants were converted into common stock and common stock warrants, respectively. Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements and related disclosures are unaudited, have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“US GAAP”). The condensed consolidated results of operations for the three months ended April 2, 2017 are not necessarily indicative of the results to be expected for the full year or for any other future year or interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 1, 2017 filed with the SEC on March 1, 2017 (“2016 Annual Report on Form 10-K”). Use of Estimates Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting periods covered by the financial statements and accompanying notes. Actual results could differ from those estimates. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Significant Accounting Policies During the three months ended April 2, 2017 , there have been no changes in our significant accounting policies as described in the Company’s 2016 Annual Report on Form 10-K, except for stock-based compensation as discussed below: The Company measures and recognizes compensation expense for all stock-based awards made to employees, directors and non-employees, based on estimated fair values recognized using the straight-line method over the requisite service period. On January 1, 2017, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-09 , Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Under this guidance, the Company elected the option to no longer apply a forfeiture rate to the stock-based compensation expense, but to record forfeitures when they occur, and, as a result, under the modified retrospective method of adoption the Company recorded an immaterial cumulative effect adjustment of $54,000 to the opening accumulated deficit on January 2, 2017.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Apr. 02, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flow. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, but any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The new standard must be adopted retrospectively. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on its consolidated statements of cash flows. In October 2016, the FASB issued ASU No. 2016-17, Consolidation - Interests Held through Related Parties That Are under Common Control , to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in the entity held through related parties that are under common control within the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial position and results of operations. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted as of the beginning of a fiscal year. The new standard must be adopted using a modified retrospective transition method which is a cumulative-effective adjustment to retained earnings as of the beginning of the first effective reporting period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , ASU No. 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated statements of cash flow. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC 842”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases today. ASC 842 supersedes the previous leases standard, ASC 840 Leases . The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes to simplify the presentation of deferred income taxes. The amendments in this update require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The standard is effective on January 1, 2017, with early adoption permitted. The Company adopted ASU No. 2015-17 as of January 1, 2017 and the adoption of this guidance did not have a material effect on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which permits companies to measure inventory at the lower of cost and realizable value. ASU No. 2015-11 applies to all business entities and is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. The Company adopted ASU No. 2015-11 as of January 2, 2017 and the adoption of this guidance did not have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance for a customer’s accounting for cloud computing costs. Under ASU 2015-05, if a software cloud computing arrangement contains a software license, customers should account for the license element of the arrangement in a manner consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, customers should account for the arrangement as a service contract. This standard may be applied either prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. ASU No. 2015-05 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, and early adoption is permitted. The adoption of ASU 2015-05 did not have a material effect on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest–Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Under ASU No. 2015-03, debt issuance costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The adoption of ASU No. 2015-03 has been applied retrospectively to the Company’s Consolidated Balance Sheet and resulted in an immaterial impact on the outstanding carrying value of the debt as of January 1, 2017 . In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for the Company in its first quarter of 2016 with early adoption permitted. The adoption of ASU 2014-12 did not have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This ASU No. 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU No. 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which effectively delayed the adoption date by one year, to an effective date for public entities for annual and interim periods beginning after December 15, 2017. In March, April, May and December 2016, the FASB issued additional updates to the new revenue standard relating to reporting revenue on a gross versus net basis, identifying performance obligations and licensing arrangements, and narrow-scope improvements and practical expedients, respectively. The effective date of this additional update is the same as that of ASU No. 2014-09. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method. The Company is still finalizing the analysis to quantify the adoption impact of the provisions of the new standard, but it does not currently expect to have a material impact on its consolidated financial position or results of operations. Based on the evaluation of its current contracts and revenue streams, most of the revenue will be recorded consistently under both the current and new standard. The FASB has issued, and may issue in the future, interpretive guidance which may cause the Company’s evaluation to change. The Company believes it is following an appropriate timeline to allow for proper recognition, presentation and disclosure upon adoption effective the beginning of fiscal year 2018.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 02, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company: Three Months Ended April 2, March 27, (in thousands, except share and per share data) Net loss $ (884 ) $ (1,715 ) Weighted-average shares outstanding 33,165,023 1,137,408 Less: weighted average shares subject to repurchase due to early exercise (58,505 ) (86,610 ) Weighted average shares used to compute basic and diluted net loss per share 33,106,518 1,050,798 Net loss per share, basic and diluted $ (0.03 ) $ (1.63 ) The following potentially dilutive securities outstanding at the end of the periods have been excluded from the computation of diluted shares outstanding as the effect would have been anti-dilutive: Three Months Ended April 2, March 27, Convertible preferred stock (as-converted) — 24,790,650 Warrants to purchase convertible preferred stock — 38,748 Warrants to purchase common stock 422,856 312,256 Shares available for Employee Stock Purchase Plan (“ESPP”) 286,171 — Restricted Stock Units (“RSUs”) 826,715 — Options to purchase common stock 6,826,964 5,016,250 Total 8,362,706 30,157,904

Balance Sheets Components

Balance Sheets Components	3 Months Ended
	Apr. 02, 2017
Balance Sheets Components [Abstract]
Balance Sheets Components	Balance Sheets Components Property and equipment, net consisted of the following: April 2, January 1, (in thousands) Computer and lab equipment $ 11,479 $ 9,748 Computer software 625 625 Furniture and fixtures 168 136 Leasehold improvements 218 218 12,490 10,727 Accumulated depreciation and amortization (6,465 ) (5,985 ) Property and equipment, net $ 6,025 $ 4,742 Depreciation and amortization expense related to property and equipment was $0.5 million and $0.3 million for the three months ended April 2, 2017 and March 27, 2016 , respectively. Inventory Inventory consisted of the following: April 2, January 1, (in thousands) Raw materials $ 5,254 $ 9,067 Work in progress 1,809 1,128 Finished goods 6,298 5,625 $ 13,361 $ 15,820 Accrued Liabilities and Other Current Liabilities Accrued liabilities and other current liabilities consisted of the following: April 2, January 1, (in thousands) Accrued payroll and related benefits $ 3,194 $ 2,842 Accrued customer rebates 5,333 3,026 Accrual for inventory purchases 2,543 1,353 Accrued expenses 3,863 2,952 ESPP employee contributions 1,757 665 Other 1,473 963 $ 18,163 $ 11,801

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 02, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company determines fair value measurements used in its consolidated financial statements based upon the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 3 Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At April 2, 2017 and January 1, 2017 , highly liquid money market funds of $101.0 million and $100.9 million , respectively, were valued using Level 1 of the fair value hierarchy, quoted prices in active markets for identical assets and are included in cash equivalents. There were no assets or liabilities in Level 2 and Level 3 of the fair value hierarchy and there were no transfers between Level 1 and Level 2 categories during any of the periods presented. The Company classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. Common Stock Warrants As of April 2, 2017 , warrants issued and outstanding were as follows: Date of Issuance Number of Warrants Exercise Price Expiration Date Common stock warrants September 2015 283,005 2.50 February 2019 Common stock warrants February 2016 20,251 4.00 February 2019 Common stock warrants February 2016 9,000 0.05 January 2018 Common stock warrants May 2016 110,600 4.00 May 2026 As of January 1, 2017 , warrants issued and outstanding were as follows: Date of Issuance Number of Warrants Exercise Price Expiration Date Common stock warrants October 2013 38,748 $ 7.74 October 2023 Common stock warrants September 2015 283,005 $ 2.50 February 2019 Common stock warrants February 2016 20,251 $ 4.00 February 2019 Common stock warrants February 2016 9,000 $ 0.05 January 2018 Common stock warrants May 2016 126,400 $ 4.00 May 2026 During the three months ended April 2, 2017 , common stock warrants issued in May 2016, to a lender of the Company, were partially exercised at $4.00 per share. During the three months ended April 2, 2017 , common stock warrants issued in October 2013, to another lender of the Company were exercised at $7.74 per share.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 02, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company conducts its operations using leased office facilities in various locations. The following is a schedule of future minimum lease payments under operating leases as of April 2, 2017 (in thousands): 2017 (remaining nine months) $ 604 2018 1,753 2019 1,567 2020 1,576 2021 1,627 2022 and beyond 3,645 Total minimum lease payments $ 10,772 The Company leases office space under arrangements expiring through 2026. Rent expense for the three months ended April 2, 2017 and March 27, 2016 was $0.3 million . In February 2017, the Company entered into a new lease agreement for its corporate headquarters located in San Jose, California consisting of approximately 84,000 square feet. The lease term is 76 months commencing on October 1, 2017 and expiring in 2024. Purchase Commitments The Company has purchase obligations of $23.4 million that are based on outstanding purchase orders as of April 2, 2017 , related to the fabrication of certain wafers for which production has started. These purchase orders are cancellable at any time, provided that the Company is required to pay all costs incurred through the cancellation date. Historically, the Company has rarely canceled these agreements once production has started. The Company did not otherwise have any outstanding non-cancellable purchase obligations as of April 2, 2017 . Indemnification In connection with the sale of its semiconductor products, the Company executes standard software license agreements allowing customers to use its firmware. Under the indemnification clauses of these license agreements, the Company agrees to defend the licensee against third-party claims asserting infringement by the Company’s products of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and to pay any judgments entered on such claims against the licensee, subject to certain restrictions and limitations. The Company has never incurred significant expense defending its licensees against third-party claims. Further, the Company has never incurred significant expense under its standard product or services performance warranties. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements at April 2, 2017 . Commitments In April 2012, an agreement was entered into with Joint Stock Company “RUSNANO” (formerly Open Joint Stock Company “RUSNANO”), which required the Company to form a wholly-owned subsidiary in the Russian Federation and to provide funding to the subsidiary in the three years following April 16, 2012. This wholly-owned subsidiary performs research and development activities for the Company. Funding means cash transfers to the subsidiary for equity investments, reimbursements of subsidiary operating expenses and Company expenses related to the subsidiary. RUSNANO also requires participation in subsidiary financial decisions. In July 2014, the Company entered into an amended and restated letter agreement with RUSNANO pursuant to which the Company agreed, among other matters, to operate and fund its Russian operations in an aggregate amount of $13.0 million over six annual periods beginning on December 31, 2014. The annual funding requirements in period one to period six are $2.2 million , $1.7 million , $2.0 million , $2.2 million , $2.4 million , and $2.5 million , respectively. In the event that the Company fails to meet its funding obligations for any period, it will be required to pay RUSNANO a penalty fee of 10% on 80% of the difference between the funding obligation and the actual funding for that period, subject to a cure period of one calendar quarter after the applicable period funding deadline. As of April 2, 2017 , no penalty had been incurred, as the Company had met the minimum funding requirements. Legal Matters From time to time, the Company is a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, breach of contract claims, and other matters. Significant judgment is required when we assess the likelihood of any adverse judgments or outcomes to a potential claim or legal proceeding, as well as potential ranges of probable losses, and when the outcomes of the claims or proceedings are probable and reasonably estimable. Because of uncertainties related to these matters, we base our estimates on the information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation, and may revise our estimates. Any revisions in the estimates of potential liabilities could have a material impact on the Company’s results of operations, financial position, and cash flows. In October 2016, Innovatio IP Ventures, LLC filed suit in the United States District Court for the Northern District of Illinois alleging infringement by the Company of nine expired U.S. patents. The complaint seeks unspecified damages. The lawsuit is in the early stages and the Company has not accrued for a loss or range of loss contingency relating to such matter because the Company believes that, although an unfavorable outcome may be possible, it is not considered at this time to be probable and reasonably estimable.

Long-term Debt

Long-term Debt	3 Months Ended
	Apr. 02, 2017
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Loan and Security Agreement The Company’s Loan and Security Agreement with SVB includes (i) term loans (ii) revolving line of credit and (iii) Mezzanine loan. The term loans have interest at a floating rate per annum equal to prime plus 0.75% . The revolving line of credit has interest between 4.25% to 5.00% depending on the Company’s consolidated leverage ratio, and the Mezzanine Loan has interest at a fixed rate per annum equal to 10.5% . The outstanding balance on the term loans was $5.4 million as of April 2, 2017 . The Company has an undrawn balance on the revolving line of credit of $20.0 million and no t drawn down on the Mezzanine Loan as of April 2, 2017 . The agreement contains usual and customary events of default upon the occurrence of certain events, such as nonpayment of amounts due under the revolving line of credit or the term loans, violation of the restrictive covenants, violation of other contractual provisions, or a material adverse change in its business. The agreement includes customary administrative covenants, including a prohibition on declaring dividends, but does not include any financial maintenance or operating related covenants. The amended and restated Loan and Security Agreement (the “SVB Loan and Security Agreement”) are collateralized by certain of the Company’s assets, including pledges of certain of the Company’s equity interests in its subsidiaries, receivables and inventory, subject to customary exceptions and limits. The SVB Loan and Security Agreement and the Mezzanine Loan contain customary events of default upon the occurrence of certain events, such as nonpayment of amounts due under the revolving line of credit or the term loans, violation of restrictive covenants, violation of other contractual provisions, or a material adverse change in the Company’s business. In addition, the credit facilities prohibit the payment of cash dividends on the Company’s capital stock and also place restrictions on mergers, sales of assets, investments, incurrence of liens, incurrence of indebtedness and transactions with affiliates. The amended and restated Loan and Security Agreement has certain prepayment premium upon repayment before the maturity date. As of April 2, 2017 , future minimum payments for the long-term debt are as follows (in thousands): Long-term debt 2017 $ 1,838 2018 2,383 2019 1,618 Total minimum payments 5,839 Less: Amount representing interest (295 ) Less: Amount representing closing and repayment fees (210 ) Present value of minimum payments 5,334 Less: Unamortized debt discounts (103 ) Plus: Accretion of closing and repayment fees 120 Long-term debt, net 5,351 Less: Long-term debt, current portion 2,288 Non-current portion of long-term debt 3,063

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Apr. 02, 2017
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock The Company’s Certificate of Incorporation, as amended, authorizes the Company to issue 1,000,000,000 shares of $0.0001 par value common stock. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors, subject to the prior rights of holders of all classes of preferred stock outstanding. The Company has never declared any dividends. The Company had reserved shares of common stock for issuance, on an as-converted basis, as follows: April 2, 2017 Options issued and outstanding 6,826,964 RSUs issued and outstanding 826,715 Common stock warrants 422,856 Shares available for ESPP 2,000,000 Shares available for future stock awards 3,079,983 13,156,518 Options Subject to Repurchase The Company has a right of repurchase with respect to unvested shares issued upon early exercise of options at an amount equal to the lower of (i) the exercise price of each restricted share being repurchased and (ii) the fair market value of such restricted share at the time the Company’s right of repurchase is exercised. The Company’s right to repurchase these shares lapses as to 1/36 of the total number of shares originally granted per month for 36 months . At April 2, 2017 , 56,000 shares remained subject to the Company’s right of repurchase. The shares purchased by employees pursuant to the early exercise of stock options are not deemed, for accounting purposes, to be issued until those shares vest according to their respective vesting schedules. The cash received in exchange for unvested shares of early exercised stock options is recorded as an early exercise liability on the balance sheets and will be transferred to common stock and additional paid-in capital as such shares vest.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Apr. 02, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation Total stock-based compensation expense for employees and non-employees recognized in the condensed consolidated statements of operations was as follows: Three Months Ended (in thousands) April 2, March 27, Cost of revenue $ 43 $ 3 Research and development 1,205 101 Sales and marketing 353 30 General and administrative 503 170 Total stock-based compensation expense $ 2,104 $ 304 Stock-based compensation expense in the three months ended April 2, 2017 was $2.1 million (comprising approximately $0.8 million related to stock options, $0.7 million related to RSU awards and $0.6 million related to the Company’s employee stock purchase plan). Stock-based compensation expense in the three months ended March 27, 2016 was $0.3 million comprising of stock options. During the three months ended April 2, 2017, the Company granted 822,435 RSUs to employees. There were no RSU grants during the three months ended March 27, 2016.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 02, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded an income tax expense of $0.5 million for the three months ended April 2, 2017 . The Company’s quarterly income taxes reflect an estimate of the corresponding fiscal year’s annual effective tax rate and include, when applicable, adjustments from discrete tax items. As of April 2, 2017 , based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be realized for federal and state purposes. Accordingly, management has applied a full valuation allowance against its federal and state net deferred tax assets at April 2, 2017 . Due to improvements in the United States operating results over the past three years, the Company believes a reasonable possibility exists that, within the next 12 months, sufficient positive evidence may become available to reach a conclusion that the valuation allowance against its federal and state net deferred tax assets will no longer be needed. Under Internal Revenue Code Section 382, our ability to utilize NOL carry-forwards or other tax attributes such as research tax credits, in any taxable year may be limited if we experience, or have experienced, an “ownership change.” A Section 382 “ownership change” generally occurs if one or more stockholders or groups of stockholders, who own at least 5% of our stock, increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. No deferred tax assets have been recognized on the Company’s balance sheet related to its NOLs and tax credits, as they are fully reserved by a valuation allowance. The Company may have previously experienced, and may in the future experience, one or more Section 382 “ownership changes,” including in connection with its initial public offering. If so, or if the Company does not generate sufficient taxable income, it may not be able to utilize a material portion of its NOLs and tax credits even if it achieves profitability. If the Company is limited in its ability to use its NOLs and tax credits in future years in which it has taxable income, it will pay more taxes than if it were able to fully utilize its NOLs and tax credits. This could adversely affect the Company’s results of operations.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Apr. 02, 2017
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans Defined Contribution Plan The Company adopted a 401(k) Plan that qualifies as a deferred compensation arrangement under Section 401 of the Internal Revenue Code. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings not to exceed the maximum amount allowable. The 401(k) Plan permits the Company to make matching contributions and profit sharing contributions to eligible participants. The Company has made matching contributions of $0.1 million as of April 2, 2017 .

Related Party transactions

Related Party transactions	3 Months Ended
	Apr. 02, 2017
Related Party Transactions [Abstract]
Related Party transactions	Related Party transactions Purchases from Cadence Design Systems, Inc. Lip-Bu Tan, a member of the Company’s board of directors since June 2015, is the President and Chief Executive Officer of Cadence Design Systems, Inc. (“Cadence”), an electronic design automation software and engineering services company. Since 2012, the Company has paid licensing fees for digital and analog layout tools and simulation tools from Cadence in the ordinary course of business. The Company incurred fees of approximately $1.0 million and $0.3 million under the terms of this arrangement in fiscal the three months ended April 2, 2017 and March 27, 2016 , respectively.

The Company and Summary of Si18

The Company and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 02, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reporting Calendar	Reporting Calendar The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Sunday closest to December 31. Fiscal 2017 will have 52 weeks and fiscal 2016 had 53 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks.
Use of Estimates	Use of Estimates Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting periods covered by the financial statements and accompanying notes. Actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
New Accounting Pronouncements	Recent Accounting Pronouncements In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flow. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, but any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The new standard must be adopted retrospectively. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on its consolidated statements of cash flows. In October 2016, the FASB issued ASU No. 2016-17, Consolidation - Interests Held through Related Parties That Are under Common Control , to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in the entity held through related parties that are under common control within the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial position and results of operations. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted as of the beginning of a fiscal year. The new standard must be adopted using a modified retrospective transition method which is a cumulative-effective adjustment to retained earnings as of the beginning of the first effective reporting period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , ASU No. 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated statements of cash flow. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC 842”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases today. ASC 842 supersedes the previous leases standard, ASC 840 Leases . The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes to simplify the presentation of deferred income taxes. The amendments in this update require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The standard is effective on January 1, 2017, with early adoption permitted. The Company adopted ASU No. 2015-17 as of January 1, 2017 and the adoption of this guidance did not have a material effect on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which permits companies to measure inventory at the lower of cost and realizable value. ASU No. 2015-11 applies to all business entities and is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. The Company adopted ASU No. 2015-11 as of January 2, 2017 and the adoption of this guidance did not have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance for a customer’s accounting for cloud computing costs. Under ASU 2015-05, if a software cloud computing arrangement contains a software license, customers should account for the license element of the arrangement in a manner consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, customers should account for the arrangement as a service contract. This standard may be applied either prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. ASU No. 2015-05 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, and early adoption is permitted. The adoption of ASU 2015-05 did not have a material effect on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest–Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Under ASU No. 2015-03, debt issuance costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The adoption of ASU No. 2015-03 has been applied retrospectively to the Company’s Consolidated Balance Sheet and resulted in an immaterial impact on the outstanding carrying value of the debt as of January 1, 2017 . In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for the Company in its first quarter of 2016 with early adoption permitted. The adoption of ASU 2014-12 did not have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This ASU No. 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU No. 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which effectively delayed the adoption date by one year, to an effective date for public entities for annual and interim periods beginning after December 15, 2017. In March, April, May and December 2016, the FASB issued additional updates to the new revenue standard relating to reporting revenue on a gross versus net basis, identifying performance obligations and licensing arrangements, and narrow-scope improvements and practical expedients, respectively. The effective date of this additional update is the same as that of ASU No. 2014-09. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method. The Company is still finalizing the analysis to quantify the adoption impact of the provisions of the new standard, but it does not currently expect to have a material impact on its consolidated financial position or results of operations. Based on the evaluation of its current contracts and revenue streams, most of the revenue will be recorded consistently under both the current and new standard. The FASB has issued, and may issue in the future, interpretive guidance which may cause the Company’s evaluation to change. The Company believes it is following an appropriate timeline to allow for proper recognition, presentation and disclosure upon adoption effective the beginning of fiscal year 2018.
Fair Value Measurement	The Company determines fair value measurements used in its consolidated financial statements based upon the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 3 Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Apr. 02, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company: Three Months Ended April 2, March 27, (in thousands, except share and per share data) Net loss $ (884 ) $ (1,715 ) Weighted-average shares outstanding 33,165,023 1,137,408 Less: weighted average shares subject to repurchase due to early exercise (58,505 ) (86,610 ) Weighted average shares used to compute basic and diluted net loss per share 33,106,518 1,050,798 Net loss per share, basic and diluted $ (0.03 ) $ (1.63 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potentially dilutive securities outstanding at the end of the periods have been excluded from the computation of diluted shares outstanding as the effect would have been anti-dilutive: Three Months Ended April 2, March 27, Convertible preferred stock (as-converted) — 24,790,650 Warrants to purchase convertible preferred stock — 38,748 Warrants to purchase common stock 422,856 312,256 Shares available for Employee Stock Purchase Plan (“ESPP”) 286,171 — Restricted Stock Units (“RSUs”) 826,715 — Options to purchase common stock 6,826,964 5,016,250 Total 8,362,706 30,157,904

Balance Sheets Components (Tabl

Balance Sheets Components (Tables)	3 Months Ended
	Apr. 02, 2017
Balance Sheets Components [Abstract]
Schedule of Property and Equipment	Property and equipment, net consisted of the following: April 2, January 1, (in thousands) Computer and lab equipment $ 11,479 $ 9,748 Computer software 625 625 Furniture and fixtures 168 136 Leasehold improvements 218 218 12,490 10,727 Accumulated depreciation and amortization (6,465 ) (5,985 ) Property and equipment, net $ 6,025 $ 4,742
Schedule of Inventory	Inventory consisted of the following: April 2, January 1, (in thousands) Raw materials $ 5,254 $ 9,067 Work in progress 1,809 1,128 Finished goods 6,298 5,625 $ 13,361 $ 15,820
Balance Sheets Components	Balance Sheets Components Property and equipment, net consisted of the following: April 2, January 1, (in thousands) Computer and lab equipment $ 11,479 $ 9,748 Computer software 625 625 Furniture and fixtures 168 136 Leasehold improvements 218 218 12,490 10,727 Accumulated depreciation and amortization (6,465 ) (5,985 ) Property and equipment, net $ 6,025 $ 4,742 Depreciation and amortization expense related to property and equipment was $0.5 million and $0.3 million for the three months ended April 2, 2017 and March 27, 2016 , respectively. Inventory Inventory consisted of the following: April 2, January 1, (in thousands) Raw materials $ 5,254 $ 9,067 Work in progress 1,809 1,128 Finished goods 6,298 5,625 $ 13,361 $ 15,820 Accrued Liabilities and Other Current Liabilities Accrued liabilities and other current liabilities consisted of the following: April 2, January 1, (in thousands) Accrued payroll and related benefits $ 3,194 $ 2,842 Accrued customer rebates 5,333 3,026 Accrual for inventory purchases 2,543 1,353 Accrued expenses 3,863 2,952 ESPP employee contributions 1,757 665 Other 1,473 963 $ 18,163 $ 11,801
Other Current Liabilities	Accrued liabilities and other current liabilities consisted of the following: April 2, January 1, (in thousands) Accrued payroll and related benefits $ 3,194 $ 2,842 Accrued customer rebates 5,333 3,026 Accrual for inventory purchases 2,543 1,353 Accrued expenses 3,863 2,952 ESPP employee contributions 1,757 665 Other 1,473 963 $ 18,163 $ 11,801
Schedule of Accrued Liabilities	Accrued liabilities and other current liabilities consisted of the following: April 2, January 1, (in thousands) Accrued payroll and related benefits $ 3,194 $ 2,842 Accrued customer rebates 5,333 3,026 Accrual for inventory purchases 2,543 1,353 Accrued expenses 3,863 2,952 ESPP employee contributions 1,757 665 Other 1,473 963 $ 18,163 $ 11,801

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 02, 2017
Fair Value Disclosures [Abstract]
Schedule of Warrants	As of April 2, 2017 , warrants issued and outstanding were as follows: Date of Issuance Number of Warrants Exercise Price Expiration Date Common stock warrants September 2015 283,005 2.50 February 2019 Common stock warrants February 2016 20,251 4.00 February 2019 Common stock warrants February 2016 9,000 0.05 January 2018 Common stock warrants May 2016 110,600 4.00 May 2026 As of January 1, 2017 , warrants issued and outstanding were as follows: Date of Issuance Number of Warrants Exercise Price Expiration Date Common stock warrants October 2013 38,748 $ 7.74 October 2023 Common stock warrants September 2015 283,005 $ 2.50 February 2019 Common stock warrants February 2016 20,251 $ 4.00 February 2019 Common stock warrants February 2016 9,000 $ 0.05 January 2018 Common stock warrants May 2016 126,400 $ 4.00 May 2026

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Apr. 02, 2017
Commitments and Contingencies Disclosure [Abstract]
Operating Leases	The following is a schedule of future minimum lease payments under operating leases as of April 2, 2017 (in thousands): 2017 (remaining nine months) $ 604 2018 1,753 2019 1,567 2020 1,576 2021 1,627 2022 and beyond 3,645 Total minimum lease payments $ 10,772

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Apr. 02, 2017
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	As of April 2, 2017 , future minimum payments for the long-term debt are as follows (in thousands): Long-term debt 2017 $ 1,838 2018 2,383 2019 1,618 Total minimum payments 5,839 Less: Amount representing interest (295 ) Less: Amount representing closing and repayment fees (210 ) Present value of minimum payments 5,334 Less: Unamortized debt discounts (103 ) Plus: Accretion of closing and repayment fees 120 Long-term debt, net 5,351 Less: Long-term debt, current portion 2,288 Non-current portion of long-term debt 3,063

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Apr. 02, 2017
Equity [Abstract]
Schedule of Stock by Class	The Company had reserved shares of common stock for issuance, on an as-converted basis, as follows: April 2, 2017 Options issued and outstanding 6,826,964 RSUs issued and outstanding 826,715 Common stock warrants 422,856 Shares available for ESPP 2,000,000 Shares available for future stock awards 3,079,983 13,156,518

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Apr. 02, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	Total stock-based compensation expense for employees and non-employees recognized in the condensed consolidated statements of operations was as follows: Three Months Ended (in thousands) April 2, March 27, Cost of revenue $ 43 $ 3 Research and development 1,205 101 Sales and marketing 353 30 General and administrative 503 170 Total stock-based compensation expense $ 2,104 $ 304

The Company and Summary of Si26

The Company and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Nov. 25, 2016	Jan. 01, 2017	Oct. 27, 2016
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock price (USD per share)			$ 16
Number of shares issued (in shares)	6,775,466
Consideration received	$ 97,400
IPO | Underwriters
Subsidiary, Sale of Stock [Line Items]
Number of shares issued (in shares)	75,466
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09
Subsidiary, Sale of Stock [Line Items]
Deferred income tax liabilities, net		$ 54,000
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 | Accumulated Deficit
Subsidiary, Sale of Stock [Line Items]
Cumulative effect of new accounting principle in period of adoption		$ 54,000

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of Eanings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Earnings Per Share [Abstract]
Net loss	$ (884)	$ (1,715)
Weighted-average shares outstanding (in shares)	33,165,023	1,137,408
Less: weighted average shares subject to repurchase due to early exercise (in shares)	(58,505)	(86,610)
Weighted average shares used to compute basic and diluted net loss per share (in shares)	33,106,518	1,050,798
Net loss per share, basic and diluted (USD per share)	$ (0.03)	$ (1.63)

Earnings Per Share (Schedule 28

Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	8,362,706	30,157,904
Convertible preferred stock (as-converted)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	0	24,790,650
Warrants to purchase convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	0	38,748
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	422,856	312,256
Shares available for Employee Stock Purchase Plan (“ESPP”)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	286,171	0
Restricted Stock Units (“RSUs”)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	826,715	0
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	6,826,964	5,016,250

Balance Sheets Components (Sche

Balance Sheets Components (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Jan. 01, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 12,490		$ 10,727
Accumulated depreciation and amortization	(6,465)		(5,985)
Property and equipment, net	6,025		4,742
Depreciation and amortization	479	$ 269
Computer and lab equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,479		9,748
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	625		625
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	168		136
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 218		$ 218

Balance Sheets Components (Sc30

Balance Sheets Components (Schedule of Inventory) (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Jan. 01, 2017
Balance Sheets Components [Abstract]
Raw materials	$ 5,254	$ 9,067
Work in progress	1,809	1,128
Finished goods	6,298	5,625
Inventory, gross	$ 13,361	$ 15,820

Balance Sheets Components (Accr

Balance Sheets Components (Accrued Liabilities and Other Current Liabilities) (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Jan. 01, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued payroll and related benefits	$ 3,194	$ 2,842
Accrued customer rebates	5,333	3,026
Accrual for inventory purchases	2,543	1,353
Accrued expenses	3,863	2,952
ESPP employee contributions	1,757	665
Other	1,473	963
Accrued liabilities and other current liabilities	$ 18,163	$ 11,801

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 02, 2017	Jan. 01, 2017
Level 1 | Fair Value, Measurements, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 101	$ 100.9
Common Stock Warrants - Issued May 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Exercise price (USD per share)	$ 4	$ 4
Common Stock Warrants - Issued October 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Exercise price (USD per share)	7.74	$ 7.74
Warrant | Common Stock Warrants - Issued May 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Exercise price (USD per share)	$ 4

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of Warrants) (Details) - $ / shares	Apr. 02, 2017	Jan. 01, 2017
Class of Warrant or Right [Line Items]
Number of warrants outstanding (in shares)	422,856
Common Stock Warrants - Issued September 2015
Class of Warrant or Right [Line Items]
Number of warrants outstanding (in shares)	283,004.52	283,004.52
Number of warrants issued (in shares)	283,004.52	283,004.52
Exercise price (USD per share)	$ 2.50	$ 2.50
Common Stock Warrants - Issued October 2013
Class of Warrant or Right [Line Items]
Number of warrants outstanding (in shares)		38,747.5
Number of warrants issued (in shares)		38,747.5
Exercise price (USD per share)	$ 7.74	$ 7.74
Common Stock Warrants - Issued February 2016
Class of Warrant or Right [Line Items]
Number of warrants outstanding (in shares)	20,251	20,251
Number of warrants issued (in shares)	20,251	20,251
Exercise price (USD per share)	$ 4	$ 4
Common Stock Warrants - Issued February 2016
Class of Warrant or Right [Line Items]
Number of warrants outstanding (in shares)	9,000	9,000
Number of warrants issued (in shares)	9,000	9,000
Exercise price (USD per share)	$ 0.05	$ 0.05
Common Stock Warrants - Issued May 2016
Class of Warrant or Right [Line Items]
Number of warrants outstanding (in shares)	110,600	126,400
Number of warrants issued (in shares)	126,400	126,400
Exercise price (USD per share)	$ 4	$ 4

Commitments and Contingencies34

Commitments and Contingencies (Details) $ in Thousands	Apr. 02, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017 (remaining nine months)	$ 604
2,018	1,753
2,019	1,567
2,020	1,576
2,021	1,627
2022 and beyond	3,645
Total minimum lease payments	$ 10,772

Commitments and Contingencies35

Commitments and Contingencies (Narrative) (Details) ft² in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2017ft²	Apr. 02, 2017USD ($)	Mar. 27, 2016USD ($)	Dec. 31, 2014USD ($)
Other Commitments [Line Items]
Rent expense		$ 300,000	$ 300,000
Area of real estate property | ft²	84
Term of lease	76 months
Purchase obligation		23,400,000
Indemnification Agreement
Other Commitments [Line Items]
Guarantor obligations		$ 0
Investor | Agreement with RUSNANO
Other Commitments [Line Items]
Contractual obligation, year 1				$ 2,200,000
Contractual obligation, year 2				1,700,000
Contractual obligation, year 3				2,000,000
Contractual obligation, year 4				2,200,000
Contractual obligation, year 5				2,400,000
Contractual obligation, year 6				2,500,000
Contractual obligation				$ 13,000,000

Commitments and Contingencies36

Commitments and Contingencies (RUSNANO) (Details) - Investor - Agreement with RUSNANO	Dec. 31, 2014USD ($)period
Related Party Transaction [Line Items]
Contractual obligation	$ 13,000,000
Annual periods | period	6
Contractual obligation, year 1	$ 2,200,000
Contractual obligation, year 2	1,700,000
Contractual obligation, year 3	2,000,000
Contractual obligation, year 4	2,200,000
Contractual obligation, year 5	2,400,000
Contractual obligation, year 6	$ 2,500,000
Funding obligation penalty	10.00%
Difference between the funding obligation and the actual funding	80.00%
Funding obligation incurred	$ 0

Long-term Debt (Details)

Long-term Debt (Details)	3 Months Ended
	Apr. 02, 2017USD ($)
Debt Instrument [Line Items]
Long-term debt, gross	$ 5,839,000
Loans Payable
Debt Instrument [Line Items]
Basis spread on variable rate	0.75%
Long-term debt, gross	$ 5,400,000
Subordinated Debt
Debt Instrument [Line Items]
Stated interest rate	10.50%
Long-term line of credit	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 20,000,000
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Line of credit interest rate during period	4.25%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Line of credit interest rate during period	5.00%

Long-term Debt (Schedule of Mat

Long-term Debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Jan. 01, 2017
Debt Disclosure [Abstract]
2,017	$ 1,838
2,018	2,383
2,019	1,618
Total minimum payments	5,839
Less: Amount representing interest	(295)
Less: Amount representing closing and repayment fees	(210)
Present value of minimum payments	5,334
Less: Unamortized debt discounts	(103)
Plus: Accretion of closing and repayment fees	120
Long-term debt, net	5,351
Less: Long-term debt, current portion	2,288	$ 2,257
Non-current portion of long-term debt	$ 3,063	$ 3,680

Stockholders_ Equity (Details)

Stockholders’ Equity (Details)	Apr. 02, 2017vote$ / sharesshares	Jan. 01, 2017$ / sharesshares
Equity [Abstract]
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, par value (usd per share) | $ / shares	$ 0.0001	$ 0.0001
Votes per share | vote	1
Options issued and outstanding (in shares)	6,826,964
Restricted Stock Units Issued and Outstanding	826,715
Common stock warrants (in shares)	422,856
Shares available for ESPP (in shares)	2,000,000
Shares available for future stock awards (in shares)	3,079,983
Shares reserved for future issuance (in shares)	13,156,518

Stockholders_ Equity (Narrative

Stockholders’ Equity (Narrative 2) (Details)	3 Months Ended
	Apr. 02, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchase rights expiration per month of shares	0.0278
Expiration period of repurchase program	36 months
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining number of shares authorized to be repurchased	56,000

Stock-based Compensation (Detai

Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 2,104	$ 304
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	43	3
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,205	101
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	353	30
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 503	$ 170

Stock-based Compensation (Narra

Stock-based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 2,104	$ 304
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	800
Restricted Stock Units (“RSUs”)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 700
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	822,435	0
ESPP
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 600

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 535	$ 17

Employee Benefit Plans (Details

Employee Benefit Plans (Details) $ in Millions	3 Months Ended
	Apr. 02, 2017USD ($)
Compensation and Retirement Disclosure [Abstract]
Contribution amount by Company	$ 0.1

Related Party transactions (Nar

Related Party transactions (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Lip-Bu Tan
Related Party Transaction [Line Items]
Purchases from related party	$ 1	$ 0.3