Quantenna Communications (QTNA) 10-Q 30 Apr 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 25, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	QUANTENNA COMMUNICATIONS INC
Entity Central Index Key	0001370702
Current Fiscal Year End Date	--12-29
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity common stock, shares outstanding		38,547,504
Entity Emerging Growth Company	true
Entity Small Business	false
Entity Ex Transition Period	true

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 30, 2018
Current assets
Cash and cash equivalents	$ 40,750	$ 38,881
Marketable securities	95,729	97,268
Accounts receivable	35,096	28,326
Inventory	18,203	20,218
Prepaid expenses and other current assets	2,465	5,325
Total current assets	192,243	190,018
Deferred tax assets	37,425	35,563
Property and equipment, net	21,610	13,691
Intangible and other assets, net	6,681	6,384
Total assets	257,959	245,656
Current liabilities
Accounts payable	8,962	9,852
Accrued liabilities and other current liabilities	28,193	25,946
Total current liabilities	37,155	35,798
Other long-term liabilities	8,642	3,371
Total liabilities	45,797	39,169
Commitments and contingencies (see Note 8)
Stockholders’ equity
Common stock: $0.0001 par value, 1,000,000,000 shares authorized at March 31, 2019 and December 30, 2018, 38,473,343 and 37,695,109 shares issued and outstanding at March 31, 2019 and December 30, 2018, respectively	4	4
Additional paid-in capital	337,813	331,551
Accumulated other comprehensive loss	(417)	(935)
Accumulated deficit	(125,238)	(124,133)
Total stockholders’ equity	212,162	206,487
Total liabilities and stockholders’ equity	$ 257,959	$ 245,656

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 30, 2018
Statement of Financial Position [Abstract]
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)	38,473,343	37,695,109
Common stock, shares outstanding (in shares)	38,473,343	37,695,109

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Income Statement [Abstract]
Revenue	$ 57,678	$ 45,117
Cost of revenue	28,170	22,352
Gross profit	29,508	22,765
Operating expenses:
Research and development	19,059	17,601
Sales and marketing	4,357	4,495
General and administrative	9,275	4,198
Total operating expenses	32,691	26,294
Loss from operations	(3,183)	(3,529)
Other income, net	697	334
Loss before income taxes	(2,486)	(3,195)
Benefit (provision) for income taxes	1,381	(52)
Net loss	$ (1,105)	$ (3,247)
Net loss per share - basic and diluted (usd per share)	$ (0.03)	$ (0.09)
Weighted average shares used to compute basic and diluted net loss per share (in shares)	38,080	35,848

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,105)	$ (3,247)
Other comprehensive gain (loss), net of tax:
Unrealized gains (losses) on available-for-sale marketable securities	215	(231)
Unrealized gains on derivative instruments	303	0
Other comprehensive gain (loss), net of tax	518	(231)
Comprehensive loss	$ (587)	$ (3,478)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2017		35,529,000
Beginning, stockholders' equity at Dec. 31, 2017	$ 180,603	$ 3	$ 308,023	$ (207)	$ (127,216)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of options and awards, net of shares withheld for taxes (in shares)		656,000
Issuance of common stock for exercise of options and awards, net of shares withheld for taxes	888		888
Stock-based compensation expense	4,592		4,592
Change in unrealized gain on marketable securities, net of tax	(231)			(231)
Change in unrealized gain on derivative instruments, net of tax	0
Net loss	(3,247)				(3,247)
Ending balance (in shares) at Apr. 01, 2018		36,185,000
Ending, stockholders' equity at Apr. 01, 2018	182,605	$ 3	313,503	(438)	(130,463)
Beginning balance (in shares) at Dec. 30, 2018		37,695
Beginning, stockholders' equity at Dec. 30, 2018	206,487	$ 4	331,551	(935)	(124,133)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of options and awards, net of shares withheld for taxes (in shares)		778
Issuance of common stock for exercise of options and awards, net of shares withheld for taxes	1,032		1,032
Stock-based compensation expense	5,230		5,230
Change in unrealized gain on marketable securities, net of tax	215			215
Change in unrealized gain on derivative instruments, net of tax	303			303
Net loss	(1,105)				(1,105)
Ending balance (in shares) at Mar. 31, 2019		38,473
Ending, stockholders' equity at Mar. 31, 2019	$ 212,162	$ 4	$ 337,813	$ (417)	$ (125,238)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Cash flows from operating activities
Net loss	$ (1,105)	$ (3,247)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,995	1,125
Stock-based compensation expense	5,230	4,592
Deferred income taxes	(2,009)	0
Other	136	(50)
Changes in assets and liabilities:
Accounts receivable	(6,770)	476
Inventory	2,015	(5,758)
Prepaid expenses and other assets	2,294	(147)
Accounts payable	(910)	8,725
Accrued liabilities and other current liabilities	(6)	1,053
Non-current liabilities	(635)	0
Net cash provided by operating activities	235	6,769
Cash flows from investing activities
Purchase of property and equipment	(941)	(924)
Purchase of long-term investment	0	(590)
Purchase of marketable securities	(21,480)	(13,211)
Proceeds from sales and maturities of marketable securities	23,211	11,515
Net cash provided by (used in) investing activities	790	(3,210)
Cash flows from financing activities
Proceeds from issuance of common stock	2,964	1,438
Payments of taxes withheld for vested stock awards	(1,932)	(601)
Payments related to intangible asset purchase	(272)	(272)
Repayments of long-term debt	0	(3,943)
Net cash provided by (used in) financing activities	760	(3,378)
Effect of exchange rates on cash and cash equivalents	84	0
Net increase in cash and cash equivalents	1,869	181
Beginning of period	38,881	24,432
End of period	$ 40,750	$ 24,613

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
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 solutions are designed to deliver leading-edge Wi-Fi performance to support an increasing number of connected devices accessing a rapidly growing pool of digital content. The Company applies its wireless systems and software expertise with high-performance radio frequency, mixed-signal and digital semiconductor design skills to provide highly integrated Wi-Fi solutions to its customers. On March 27, 2019, we entered into a definitive agreement and plan of merger with ON Semiconductor Corporation to be acquired by ON Semiconductor Corporation for $24.50 per share in an all cash transaction. Refer to Note 13 to condensed consolidated financial statements, Merger Agreement, for further details of the merger. 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 2019 will have 52 weeks and fiscal 2018 had 52 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks. Fiscal 2019 will end on December 29, 2019 . Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements and related disclosures are unaudited 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 March 31, 2019 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 December 30, 2018 filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2019 (“ 2018 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. Among the significant estimates affecting the financial statements are those related to inventories, revenue recognition, stock-based compensation and income taxes. 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 March 31, 2019 , there have been no changes in our significant accounting policies as described in the 2018 Annual Report on Form 10-K except for the adoption of the new lease standard issued by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update (“ASU”) 2016-02, Leases (“ASC 842”). Refer to Note 2 to condensed consolidated financial statements , Operating Leases, for further details.

Operating Leases

Operating Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Operating Leases	Operating leases Adoption of New Accounting Standards In February 2016, the FASB issued 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 Company adopted ASC 842 on December 31, 2018 using the modified retrospective method of adoption and therefore did not restate prior year comparative amounts which are presented in accordance with ASC 840 prior to December 31, 2018. ASC 842 provides a number of optional practical expedients in transition.The Company has elected the “package of practical expedients”, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. All of our leases at the adoption date were operating leases for facilities and did not include any non-lease components. ASC 842 had a material effect on the Company’s financial statements.The most significant effects of adoption relate to (1) the recognition of new Right-of-Use (“ROU”) assets and lease liabilities on its balance sheet for real estate operating leases; and (2) providing significant new disclosures about its leasing activities. Upon adoption, the Company recognized additional operating lease liabilities, net of deferred rent, of approximately $8.5 million based on the present value of the remaining minimum rental payments using an estimated incremental borrowing rate of 4.47% . The Company also recognized corresponding ROU assets of approximately $8.5 million which is classified as part of Property and Equipment, Net, in its condensed consolidated balance sheet. These ROU assets relate to office space leased under non-cancelable operating leases under arrangements expiring through 2026 including for our corporate headquarters in San Jose, California as well as other regional and international corporate office locations and their associated lease component related to the fixed payments payable under these leases which are integral to the right to use the ROU assets. Non-lease components such as common area maintenance costs are considered as variable costs and are expensed as incurred. Lease expense is not expected to change materially as a result of the adoption of ASC 842. ASC 842 also provides practical expedients for an entity’s ongoing accounting.The Company elected the short-term lease recognition exemption for all leases that qualify all lease that qualify, which means that the Company will not recognize ROU assets or lease liabilities for new or existing short–term leases. During the three months ended March 31, 2019 , the Company recorded $0.8 million as lease expense. Lease expense relating to short-term leases were insignificant. Operating lease liabilities as of March 31, 2019 are reconciled to ROU assets as below (in thousands): Operating lease liabilities, short-term portion $ 2,678 Operating lease liabilities, long-term portion* 6,743 Total operating lease liabilities 9,421 Less deferred rent eliminated upon adoption of ASC 842 (1,419 ) Total ROU assets classified as Property and Equipment, Net $ 8,002 *included in “Other long-term liabilities” in the condensed consolidated balance sheet as of March 31, 2019 . Maturities of our operating lease liabilities are as follows as of March 31, 2019 (in thousands): 2019 $ 2,116 2020 2,333 2021 1,895 2022 1,920 2023 1,808 2024 and beyond 322 Total payments $ 10,394 Less: Future interest (973 ) Present value of operating lease liabilities $ 9,421 As of March 31, 2019 , the weighted average remaining lease term was 4.4 years and the weighted average discount rate was 4.47% .

Revenue by Geographic Area

Revenue by Geographic Area	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Revenue by Geographic Area	Revenue by Geographic Area The following table sets forth the Company’s revenue by geographic region, based on ship-to destinations (in thousands): Three Months Ended Three Months Ended March 31, 2019 April 1, 2018 Amount % of revenue Amount % of revenue Asia-Pacific $ 52,805 92 % $ 40,737 90 % Europe, Middle East and Africa 4,757 8 4,366 10 Americas 116 — 14 — Total $ 57,678 100 % $ 45,117 100 %

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table summarizes the Company’s computation of basic and diluted net loss per share: Three Months Ended March 31, April 1, (in thousands, except per share data) Net loss $ (1,105 ) $ (3,247 ) Weighted-average shares outstanding - basic and diluted 38,080 35,848 Net loss per share - basic and diluted $ (0.03 ) $ (0.09 ) 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 March 31, April 1, (in thousands) Warrants to purchase common stock — 58 Shares available for Employee Stock Purchase Plan (ESPP) 321 374 Restricted Stock Units (RSUs) 2,860 2,147 Options to purchase common stock 3,774 5,398 Total 6,955 7,977

Balance Sheets Components

Balance Sheets Components	3 Months Ended
	Mar. 31, 2019
Balance Sheets Components [Abstract]
Balance Sheets Components	Balance Sheets Components Marketable Securities Marketable securities at March 31, 2019 consisted of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt securities $ 79,801 $ 128 $ (85 ) $ 79,844 Government debt securities 15,878 12 (5 ) 15,885 $ 95,679 $ 140 $ (90 ) $ 95,729 The contractual maturities of marketable securities as of March 31, 2019 were as follows: Amortized Cost Fair Value (in thousands) Due in one year or less $ 74,382 $ 74,314 Due after one year to five years 21,297 21,415 $ 95,679 $ 95,729 Marketable securities as of December 30, 2018 consisted of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt securities $ 85,353 $ 24 $ (242 ) $ 85,135 Government debt securities 12,141 2 (10 ) 12,133 $ 97,494 $ 26 $ (252 ) $ 97,268 The contractual maturities of marketable securities as of December 30, 2018 were as follows: Amortized Cost Fair Value (in thousands) Due in one year or less $ 80,041 $ 79,840 Due after one year to five years 17,453 17,428 $ 97,494 $ 97,268 Property and Equipment, Net Property and equipment, net consisted of the following: March 31, December 30, (in thousands) Computer and lab equipment $ 18,537 $ 17,858 Operating lease ROU assets 8,002 — Computer software 1,177 1,047 Furniture and fixtures 1,739 1,739 Leasehold improvements 4,631 4,579 Sub-total 34,086 25,223 Accumulated depreciation and amortization (12,476 ) (11,532 ) Property and equipment, net $ 21,610 $ 13,691 Depreciation and amortization expense related to property and equipment was $0.9 million and $0.9 million , respectively, for the three months ended March 31, 2019 and April 1, 2018 . Inventory Inventory consisted of the following: March 31, December 30, (in thousands) Raw materials $ 8,693 $ 9,069 Work in progress 2,328 1,093 Finished goods 7,182 10,056 $ 18,203 $ 20,218 Intangible Assets Definite long-lived intangible assets consist of software, intellectual property and design win assets for the Company’s Wi-Fi solutions which are recorded based on the total contractual price. Such assets are amortized over their contractual lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that such assets are not recoverable, an impairment charge is recognized for the amount by which the carrying amount of such assets exceeds their fair values. There was no impairment of definite long-lived intangible assets for the periods presented. As of March 31, 2019 , the Company’s definite long-lived intangible assets amounted to approximately $4.9 million , net of accumulated amortization of $1.7 million . Accrued Liabilities and Other Current Liabilities Accrued liabilities and other current liabilities consisted of the following: March 31, December 30, (in thousands) Accrual for inventory purchases $ 6,920 $ 1,214 Accrued customer rebates 5,985 10,705 Accrued payroll and related benefits 5,178 6,424 ESPP Contributions 2,704 1,043 Accrued expenses 1,907 3,004 Operating lease liabilities, short-term portion 2,678 — Other 2,821 3,556 $ 28,193 $ 25,946

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
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. The Company obtains the fair value of our Level 1 investments in money market funds, at the expected market price. These investments are expected to maintain a net asset value of $1 per share. The Company determines the fair value of our Level 2 financial instruments from third-party asset managers, custodian banks, and the accounting service providers. 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. There were no assets or liabilities in Level 3 of the fair value hierarchy and there were no transfers between Level 1 and Level 2 categories during the year ended any of the periods presented. The Company utilizes the market approach to measure the fair value of our fixed income securities. The market approach is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of our fixed income securities is obtained using readily-available market prices from a variety of industry standard data providers, large financial institutions and other third-party sources for the identical underlying securities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company measures and reports certain assets at fair value on a recurring basis as shown below except for cash held at banks that are measured at historical cost and which are therefore not included in the tables below. Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total Assets: (in thousands) Cash equivalents: Money market funds $ 3,145 $ — $ — $ 3,145 Commercial paper — 2,490 — 2,490 Government debt securities — 1,994 — 1,994 Total cash equivalents 3,145 4,484 — 7,629 Marketable Securities: — Corporate debt securities — 79,843 — 79,843 Government debt securities — 15,886 — 15,886 Total marketable securities — 95,729 — 95,729 Total cash equivalents and marketable securities $ 3,145 $ 100,213 $ — $ 103,358 Fair Value as of December 30, 2018 Level 1 Level 2 Level 3 Total Assets: (in thousands) Cash equivalents: Money market funds $ 3,170 $ — $ — $ 3,170 Corporate debt securities — 2,044 — 2,044 Total cash equivalents 3,170 2,044 — 5,214 Marketable Securities: — Corporate debt securities — 85,136 — 85,136 Government debt securities — 12,132 — 12,132 Total marketable securities — 97,268 — 97,268 Total cash equivalents and marketable securities $ 3,170 $ 99,312 $ — $ 102,482 The Level 1 assets consist of money market funds. The Level 2 assets consist of available-for-sale investment portfolio, which are valued utilizing a market approach. Foreign currency derivative forward contracts are measured at fair value based on market-based observable inputs including currency exchange spot and forward rates, interest rates, and credit-risk spreads, and are classified at Level 2 of the fair value hierarchy. Total notional and net fair values for foreign exchange derivative contracts designated as hedging instruments as of March 31, 2019 were as follows: Derivative Assets* Derivative Liabilities* Notional Amount Fair Value Notional Amount Fair Value (in thousands) Current assets $ 4,419 $ 83 Current liabilities $ 14,359 $ 619 Non-current assets** 689 20 Non-current liabilities** 5,034 54 Total foreign exchange contracts $ 5,108 $ 103 Total foreign exchange contracts $ 19,393 $ 673 * The Company recorded a net derivative liability of $0.6 million as of March 31, 2019. There were no derivative assets or liabilities recorded for the comparative periods in fiscal 2018. ** Non-current derivative assets and liabilities were discounted at the prevailing risk-free interest rate.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. For accounting purposes, foreign currency forward contracts are designated as hedging instruments and, accordingly, the Company will record the fair value of the effective portion of these contracts as of the end of its’ reporting period in its’ condensed consolidated balance sheets (as an asset or a liability) with changes in fair value recorded within “ Accumulated other comprehensive loss ” under “Total stockholders’ equity”. The fair values of the derivative financial instruments are combined together on the balance sheet whenever there is a master netting arrangement in place. The changes in fair value will remain in “ Accumulated other comprehensive loss ” until the costs are recognized, at which time the Company will reclassify the cumulative change of fair value relating to the hedges proportionately into the respective line items on the condensed consolidated income statements. Any changes in fair value of the ineffective portion of the forward contracts will be recognized immediately in the Company’s consolidated income statement under “ Other income, net ”. The effects of derivative instruments and hedging activities on the condensed consolidated statement of operations and its effect on the condensed consolidated statement of comprehensive loss from changes in fair value for the three months ended March 31, 2019 was as follows: Location and Amount of Loss Recognized for Hedging Activities: Condensed Consolidated Statement of Operations Condensed Consolidated Statement of Comprehensive Loss (pre-tax) Research and Development Sales and Marketing General and Administrative Total (in thousands) Total expense (income) from foreign currency hedging $ 133 $ 63 $ 14 $ 210 $ (389 ) Effects of foreign currency cashflow hedging: Loss reclassified from condensed consolidated statement of comprehensive loss $ (133 ) (63 ) (14 ) (210 ) $ 210 Gain recognized in condensed consolidated statement of comprehensive loss $ — $ — $ — $ — $ (179 ) The Company did not enter into any hedging activities for the comparative periods in fiscal 2018.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments The Company has purchase obligations of $19.9 million that are based on outstanding purchase orders as of March 31, 2019 , related to the fabrication of certain wafers for which production has started. These purchase orders are cancellable at any time, provided that the Company pays 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 March 31, 2019 . 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 March 31, 2019 . Commitments In April 2012, an agreement was entered into with Joint Stock Company “RUSNANO” (“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 March 31, 2019 , the Company had met the minimum funding requirements and no penalty had been incurred. As of March 31, 2019 , the Company’s non-cancellable obligations for its definite long-lived intangible assets which are comprised of software licenses were approximately $2.2 million , of which $1.5 million is due payable within one year and $0.7 million is due payable within two years. In addition, as of March 31, 2019 , the Company also had a non-cancellable commitment with a vendor to purchase additional intellectual property licenses up to $2.5 million upon the successful integration of the vendor’s existing software licenses with the Company’s products. Design Win Commitments In order to further promote its Wi-Fi solutions and secure additional design wins with service providers (“SPs”), the Company enters into arrangements with some of its OEMs and ODMs to incentivize the promotion of its design win solutions with SPs. Once a design win is secured through this arrangement, the Company is obligated to compensate the OEM or ODM a success fee. The resulting liability is expected to be settled through the shipment of its Wi-Fi chips. As of March 31, 2019 , the Company had open commitments to its OEMs and ODMs under these arrangements amounting to $4.0 million . There is no guarantee that the Company will secure some or all of these design wins (including the time frame when such design wins may be realized) in future reporting periods. 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.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2019
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. The Company has never declared any dividends. The Company had reserved shares of common stock for issuance, on an as-converted basis, as follows: March 31, 2019 Options issued and outstanding 3,773,768 RSUs issued and outstanding 2,860,325 Shares available for ESPP 1,233,490 Shares available for future stock awards 3,198,960 11,066,543 During the three months ended March 31, 2019 , the Company granted 1,451,564 restricted stock units (“RSUs”) to employees. During the three months ended April 1, 2018 , the Company granted 1,254,398 RSUs and 666,250 options to employees.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2019
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 March 31, April 1, (in thousands) Cost of revenue $ 85 $ 34 Research and development 2,890 2,393 Sales and marketing 749 984 General and administrative 1,506 1,181 Total stock-based compensation expense $ 5,230 $ 4,592 The above stock-based compensation expense related to the following equity-based awards: Three Months Ended March 31, April 1, (in thousands) Stock options $ — $ 1,168 RSU awards 4,686 2,803 ESPP shares 544 621 Total stock-based compensation expense $ 5,230 $ 4,592

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded an income tax benefit of $1.4 million and a provision of $0.1 million , for the three months ended March 31, 2019 and April 1, 2018 , respectively. The tax benefit consisted primarily of foreign expenses which is offset with domestic discrete windfall benefits associated with stock options. The provision for income taxes consists primarily of income taxes in the foreign jurisdictions in which we conduct business. As of March 31, 2019 , based on the available objective evidence, management still believes it is more likely than not that the net deferred tax assets will be realized for federal and state purposes. We will continue to maintain a valuation allowance in certain foreign jurisdictions deemed necessary until sufficient positive evidence exists to support reversal. Such assessment may change in the future as further evidence becomes available. Under Internal Revenue Code (“IRC”) Section 382, our ability to utilize net operating loss (“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. We have completed an IRC Section 382 analysis through December 31, 2018 and determined that there was no significant limitation to the utilization of NOL or tax credit carryforwards before they expire. We are in the process of updating the study through the current year and will update for any significant limitations to the utilization of NOL or tax credit carryforwards in the current year upon completion of the study.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2019
Retirement Benefits [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 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 $0.2 million and $0.1 million for the three months ended March 31, 2019

Merger Agreement

Merger Agreement	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Merger Agreement	Merger Agreement On March 27, 2019, ON Semiconductor Corporation, a Delaware corporation (“ON Semiconductor”), and the Company entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”). The acquisition consideration represents equity value of approximately $1.07 billion and enterprise value of approximately $936 million , after accounting for the Company’s net cash of approximately $136 million at the end of fourth quarter of fiscal 2018. Subject to the terms and conditions set forth in the Merger Agreement, each share of the Company’s common stock outstanding immediately prior to the merger (other than shares held by (a) ON Semiconductor or its subsidiaries immediately prior to the merger, (b) the Company as treasury stock and (c) stockholders of the Company who properly exercised their appraisal rights under the Delaware General Corporation Law) will automatically be canceled and converted into the right to receive $24.50 per share in cash, without interest (the “Merger Consideration”). In addition, at or immediately prior to the merger, (i) each option to purchase shares that has an exercise price per share that is less than the Merger Consideration will be canceled and converted into the right to receive the Merger Consideration, net of the applicable exercise price, and in the case of each unvested option, payable at the times and subject to the contingencies specified in the Merger Agreement (but in no event later than the end of the calendar year in which the merger occurs), (ii) each option to purchase shares that has an exercise price per Share that is equal to or greater than the Merger Consideration will be canceled without payment, (iii) each vested RSU award will be canceled and converted into the right to receive the Merger Consideration, and (iv) each unvested RSU award will be canceled and converted into the right to receive the Merger Consideration, payable on the same vesting schedule that applied to such award, subject to certain conditions specified in the Merger Agreement. Completion of the merger is subject to the satisfaction of several conditions, including: (i) adoption of the Merger Agreement by the requisite vote of the Company’s stockholders; (ii) the expiration or termination of any applicable waiting period relating to the merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and approval under the applicable antitrust laws of China; and (iii) certain other customary conditions. The Merger Agreement contains certain termination rights for each of ON Semiconductor and the Company ,and further provides that, upon termination of the Merger Agreement, under specified circumstances, the Company may be required to pay ON Semiconductor a termination fee of $32.2 million . The Merger Agreement has been adopted by the boards of directors of each of ON Semiconductor and the Company, and the board of directors of the Company has recommended that the stockholders of the Company adopt the Merger Agreement. The merger is expected to close in the second half of fiscal 2019.

The Company and Summary of Si_2

The Company and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
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 2019 will have 52 weeks and fiscal 2018 had 52 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks. Fiscal 2019 will end on December 29, 2019 .
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. Among the significant estimates affecting the financial statements are those related to inventories, revenue recognition, stock-based compensation and income taxes. 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.
Leases	In February 2016, the FASB issued 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 Company adopted ASC 842 on December 31, 2018 using the modified retrospective method of adoption and therefore did not restate prior year comparative amounts which are presented in accordance with ASC 840 prior to December 31, 2018. ASC 842 provides a number of optional practical expedients in transition.The Company has elected the “package of practical expedients”, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. All of our leases at the adoption date were operating leases for facilities and did not include any non-lease components. ASC 842 had a material effect on the Company’s financial statements.The most significant effects of adoption relate to (1) the recognition of new Right-of-Use (“ROU”) assets and lease liabilities on its balance sheet for real estate operating leases; and (2) providing significant new disclosures about its leasing activities.
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. The Company obtains the fair value of our Level 1 investments in money market funds, at the expected market price. These investments are expected to maintain a net asset value of $1 per share. The Company determines the fair value of our Level 2 financial instruments from third-party asset managers, custodian banks, and the accounting service providers. 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. There were no assets or liabilities in Level 3 of the fair value hierarchy and there were no transfers between Level 1 and Level 2 categories during the year ended any of the periods presented. The Company utilizes the market approach to measure the fair value of our fixed income securities. The market approach is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of our fixed income securities is obtained using readily-available market prices from a variety of industry standard data providers, large financial institutions and other third-party sources for the identical underlying securities.

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Operating Lease Liabilities	Operating lease liabilities as of March 31, 2019 are reconciled to ROU assets as below (in thousands): Operating lease liabilities, short-term portion $ 2,678 Operating lease liabilities, long-term portion* 6,743 Total operating lease liabilities 9,421 Less deferred rent eliminated upon adoption of ASC 842 (1,419 ) Total ROU assets classified as Property and Equipment, Net $ 8,002 *included in “Other long-term liabilities” in the condensed consolidated balance sheet as of March 31, 2019 .
Lessee, Operating Lease	Maturities of our operating lease liabilities are as follows as of March 31, 2019 (in thousands): 2019 $ 2,116 2020 2,333 2021 1,895 2022 1,920 2023 1,808 2024 and beyond 322 Total payments $ 10,394 Less: Future interest (973 ) Present value of operating lease liabilities $ 9,421

Revenue by Geographic Area (Tab

Revenue by Geographic Area (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of Revenue from External Customers by Geographical Areas	The following table sets forth the Company’s revenue by geographic region, based on ship-to destinations (in thousands): Three Months Ended Three Months Ended March 31, 2019 April 1, 2018 Amount % of revenue Amount % of revenue Asia-Pacific $ 52,805 92 % $ 40,737 90 % Europe, Middle East and Africa 4,757 8 4,366 10 Americas 116 — 14 — Total $ 57,678 100 % $ 45,117 100 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes the Company’s computation of basic and diluted net loss per share: Three Months Ended March 31, April 1, (in thousands, except per share data) Net loss $ (1,105 ) $ (3,247 ) Weighted-average shares outstanding - basic and diluted 38,080 35,848 Net loss per share - basic and diluted $ (0.03 ) $ (0.09 )
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 March 31, April 1, (in thousands) Warrants to purchase common stock — 58 Shares available for Employee Stock Purchase Plan (ESPP) 321 374 Restricted Stock Units (RSUs) 2,860 2,147 Options to purchase common stock 3,774 5,398 Total 6,955 7,977

Balance Sheets Components (Tabl

Balance Sheets Components (Tables)	3 Months Ended
	Mar. 31, 2019
Balance Sheets Components [Abstract]
Marketable Securities	Marketable securities at March 31, 2019 consisted of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt securities $ 79,801 $ 128 $ (85 ) $ 79,844 Government debt securities 15,878 12 (5 ) 15,885 $ 95,679 $ 140 $ (90 ) $ 95,729 The contractual maturities of marketable securities as of March 31, 2019 were as follows: Amortized Cost Fair Value (in thousands) Due in one year or less $ 74,382 $ 74,314 Due after one year to five years 21,297 21,415 $ 95,679 $ 95,729 Marketable securities as of December 30, 2018 consisted of the following: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt securities $ 85,353 $ 24 $ (242 ) $ 85,135 Government debt securities 12,141 2 (10 ) 12,133 $ 97,494 $ 26 $ (252 ) $ 97,268 The contractual maturities of marketable securities as of December 30, 2018 were as follows: Amortized Cost Fair Value (in thousands) Due in one year or less $ 80,041 $ 79,840 Due after one year to five years 17,453 17,428 $ 97,494 $ 97,268
Schedule of Property and Equipment	Property and equipment, net consisted of the following: March 31, December 30, (in thousands) Computer and lab equipment $ 18,537 $ 17,858 Operating lease ROU assets 8,002 — Computer software 1,177 1,047 Furniture and fixtures 1,739 1,739 Leasehold improvements 4,631 4,579 Sub-total 34,086 25,223 Accumulated depreciation and amortization (12,476 ) (11,532 ) Property and equipment, net $ 21,610 $ 13,691
Schedule of Inventory	Inventory consisted of the following: March 31, December 30, (in thousands) Raw materials $ 8,693 $ 9,069 Work in progress 2,328 1,093 Finished goods 7,182 10,056 $ 18,203 $ 20,218
Other Current Liabilities	Accrued liabilities and other current liabilities consisted of the following: March 31, December 30, (in thousands) Accrual for inventory purchases $ 6,920 $ 1,214 Accrued customer rebates 5,985 10,705 Accrued payroll and related benefits 5,178 6,424 ESPP Contributions 2,704 1,043 Accrued expenses 1,907 3,004 Operating lease liabilities, short-term portion 2,678 — Other 2,821 3,556 $ 28,193 $ 25,946
Schedule of Accrued Liabilities	Accrued liabilities and other current liabilities consisted of the following: March 31, December 30, (in thousands) Accrual for inventory purchases $ 6,920 $ 1,214 Accrued customer rebates 5,985 10,705 Accrued payroll and related benefits 5,178 6,424 ESPP Contributions 2,704 1,043 Accrued expenses 1,907 3,004 Operating lease liabilities, short-term portion 2,678 — Other 2,821 3,556 $ 28,193 $ 25,946

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The Company measures and reports certain assets at fair value on a recurring basis as shown below except for cash held at banks that are measured at historical cost and which are therefore not included in the tables below. Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total Assets: (in thousands) Cash equivalents: Money market funds $ 3,145 $ — $ — $ 3,145 Commercial paper — 2,490 — 2,490 Government debt securities — 1,994 — 1,994 Total cash equivalents 3,145 4,484 — 7,629 Marketable Securities: — Corporate debt securities — 79,843 — 79,843 Government debt securities — 15,886 — 15,886 Total marketable securities — 95,729 — 95,729 Total cash equivalents and marketable securities $ 3,145 $ 100,213 $ — $ 103,358 Fair Value as of December 30, 2018 Level 1 Level 2 Level 3 Total Assets: (in thousands) Cash equivalents: Money market funds $ 3,170 $ — $ — $ 3,170 Corporate debt securities — 2,044 — 2,044 Total cash equivalents 3,170 2,044 — 5,214 Marketable Securities: — Corporate debt securities — 85,136 — 85,136 Government debt securities — 12,132 — 12,132 Total marketable securities — 97,268 — 97,268 Total cash equivalents and marketable securities $ 3,170 $ 99,312 $ — $ 102,482
Schedule of derivative instruments in statement of financial position	Total notional and net fair values for foreign exchange derivative contracts designated as hedging instruments as of March 31, 2019 were as follows: Derivative Assets* Derivative Liabilities* Notional Amount Fair Value Notional Amount Fair Value (in thousands) Current assets $ 4,419 $ 83 Current liabilities $ 14,359 $ 619 Non-current assets** 689 20 Non-current liabilities** 5,034 54 Total foreign exchange contracts $ 5,108 $ 103 Total foreign exchange contracts $ 19,393 $ 673 * The Company recorded a net derivative liability of $0.6 million as of March 31, 2019. There were no derivative assets or liabilities recorded for the comparative periods in fiscal 2018. ** Non-current derivative assets and liabilities were discounted at the prevailing risk-free interest rate.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative gain (loss)	The effects of derivative instruments and hedging activities on the condensed consolidated statement of operations and its effect on the condensed consolidated statement of comprehensive loss from changes in fair value for the three months ended March 31, 2019 was as follows: Location and Amount of Loss Recognized for Hedging Activities: Condensed Consolidated Statement of Operations Condensed Consolidated Statement of Comprehensive Loss (pre-tax) Research and Development Sales and Marketing General and Administrative Total (in thousands) Total expense (income) from foreign currency hedging $ 133 $ 63 $ 14 $ 210 $ (389 ) Effects of foreign currency cashflow hedging: Loss reclassified from condensed consolidated statement of comprehensive loss $ (133 ) (63 ) (14 ) (210 ) $ 210 Gain recognized in condensed consolidated statement of comprehensive loss $ — $ — $ — $ — $ (179 )

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Schedule of Stock by Class	The Company had reserved shares of common stock for issuance, on an as-converted basis, as follows: March 31, 2019 Options issued and outstanding 3,773,768 RSUs issued and outstanding 2,860,325 Shares available for ESPP 1,233,490 Shares available for future stock awards 3,198,960 11,066,543

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, April 1, (in thousands) Cost of revenue $ 85 $ 34 Research and development 2,890 2,393 Sales and marketing 749 984 General and administrative 1,506 1,181 Total stock-based compensation expense $ 5,230 $ 4,592 The above stock-based compensation expense related to the following equity-based awards: Three Months Ended March 31, April 1, (in thousands) Stock options $ — $ 1,168 RSU awards 4,686 2,803 ESPP shares 544 621 Total stock-based compensation expense $ 5,230 $ 4,592

The Company and Summary of Si_3

The Company and Summary of Significant Accounting Policies (Narrative) (Details)	Mar. 27, 2019$ / shares
ON Semiconductor
Subsidiary, Sale of Stock [Line Items]
Sale of stock price (USD per share)	$ 24.50

Operating Leases (Narrative) (D

Operating Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Operating lease liability	$ 9,421	$ 8,500
Weighted average discount rate	4.47%
Lease cost	$ 800
Remaining lease term	4 years 4 months 24 days

Operating Leases (Operating Lea

Operating Leases (Operating Lease Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 30, 2018
Leases [Abstract]
Operating lease liabilities, short-term portion	$ 2,678		$ 0
Operating lease liabilities, long-term portion	6,743
Total operating lease liabilities	9,421
Less deferred rent eliminated upon adoption of ASC 842	(1,419)
Total ROU assets classified as Property and Equipment, Net	$ 8,002	$ 8,500

Operating Leases (Lease Maturit

Operating Leases (Lease Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
2019	$ 2,116
2020	2,333
2021	1,895
2022	1,920
2023	1,808
Lessee, Operating Lease, Liability, Payments, Due after Year Five	322
Total payments	10,394
Less: Future interest	(973)
Present value of operating lease liabilities	$ 9,421	$ 8,500

Revenue by Geographic Area (Sch

Revenue by Geographic Area (Schedule of Revenue by Geographical Area) (Details) - Geographic Concentration Risk - Sales Revenue, Services, Net - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 57,678	$ 45,117
Percentage of revenue	100.00%	100.00%
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 52,805	$ 40,737
Percentage of revenue	92.00%	90.00%
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 4,757	$ 4,366
Percentage of revenue	8.00%	10.00%
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 116	$ 14
Percentage of revenue	0.00%	0.00%

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of Eanings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Earnings Per Share [Abstract]
Net loss	$ (1,105)	$ (3,247)
Weighted average shares used to compute basic and diluted net loss per share (in shares)	38,080	35,848
Net loss per share - basic and diluted (usd per share)	$ (0.03)	$ (0.09)

Earnings Per Share (Schedule _2

Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	6,955	7,977
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	0	58
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)	321	374
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	2,860	2,147
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	3,774	5,398

Balance Sheets Components (Mark

Balance Sheets Components (Marketable Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 30, 2018
Schedule of Investments [Line Items]
Amortized Cost	$ 95,679	$ 97,494
Gross Unrealized Gains	140	26
Gross Unrealized Losses	(90)	(252)
Fair Value	95,729	97,268
Commercial paper
Schedule of Investments [Line Items]
Amortized Cost	79,801	85,353
Gross Unrealized Gains	128	24
Gross Unrealized Losses	(85)	(242)
Fair Value	79,844	85,135
Government debt securities
Schedule of Investments [Line Items]
Amortized Cost	15,878	12,141
Gross Unrealized Gains	12	2
Gross Unrealized Losses	(5)	(10)
Fair Value	$ 15,885	$ 12,133

Balance Sheets Components (Amor

Balance Sheets Components (Amortized Cost and Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 30, 2018
Amortized Cost
Due in one year or less	$ 74,382	$ 80,041
Due after one year to five years	21,297	17,453
Amortized Cost	95,679	97,494
Fair Value
Due in one year or less	74,314	79,840
Due after one year to five years	21,415	17,428
Total, fair value	$ 95,729	$ 97,268

Balance Sheets Components (Sche

Balance Sheets Components (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Dec. 30, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 34,086		$ 25,223
Accumulated depreciation and amortization	(12,476)		(11,532)
Property and equipment, net	21,610		13,691
Depreciation and amortization	1,995	$ 1,125
Computer and lab equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	18,537		17,858
Operating lease ROU assets
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,002		0
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,177		1,047
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,739		1,739
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,631		$ 4,579
Tangible Assets
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 900	$ 900

Balance Sheets Components (Sc_2

Balance Sheets Components (Schedule of Inventory) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 30, 2018
Balance Sheets Components [Abstract]
Raw materials	$ 8,693	$ 9,069
Work in progress	2,328	1,093
Finished goods	7,182	10,056
Inventory, gross	$ 18,203	$ 20,218

Balance Sheets Components (Narr

Balance Sheets Components (Narrative) (Details) $ in Millions	Mar. 31, 2019USD ($)
Balance Sheets Components [Abstract]
Finite-lived intangible assets, net	$ 4.9
Accumulated amortization	$ 1.7

Balance Sheets Components (Accr

Balance Sheets Components (Accrued Liabilities and Other Current Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 30, 2018
Balance Sheets Components [Abstract]
Accrual for inventory purchases	$ 6,920	$ 1,214
Accrued customer rebates	5,985	10,705
Accrued payroll and related benefits	5,178	6,424
ESPP Contributions	2,704	1,043
Accrued expenses	1,907	3,004
Operating lease liabilities, short-term portion	2,678	0
Other	2,821	3,556
Accrued liabilities and other current liabilities	$ 28,193	$ 25,946

Fair Value Measurements (Assets

Fair Value Measurements (Assets, Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 7,629	$ 5,214
Marketable securities	95,729	97,268
Total cash equivalents and marketable securities	103,358	102,482
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	3,145	3,170
Marketable securities	0	0
Total cash equivalents and marketable securities	3,145	3,170
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	4,484	2,044
Marketable securities	95,729	97,268
Total cash equivalents and marketable securities	100,213	99,312
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0	0
Total cash equivalents and marketable securities	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	3,145	3,170
Money market funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	3,145	3,170
Money market funds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Money market funds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,490	2,044
Marketable securities	79,843	85,136
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0	0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,490	2,044
Marketable securities	79,843	85,136
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0	0
Government debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,994
Marketable securities	15,886	12,132
Government debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Marketable securities	0	0
Government debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,994
Marketable securities	15,886	12,132
Government debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Marketable securities	$ 0	$ 0

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value of Derivatives) (Details) - USD ($)	Mar. 31, 2019	Apr. 02, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 600,000	$ 0
Designated as Hedging Instrument | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, notional amount	5,108,000
Derivative asset, fair value	103,000
Derivative liability, notional amount	19,393,000
Derivative liability, fair value	673,000
Current assets | Designated as Hedging Instrument | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, notional amount	4,419,000
Derivative asset, fair value	83,000
Non-current assets | Designated as Hedging Instrument | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, notional amount	689,000
Derivative asset, fair value	20,000
Current liabilities | Designated as Hedging Instrument | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, notional amount	14,359,000
Derivative liability, fair value	619,000
Non-current liabilities | Designated as Hedging Instrument | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, notional amount	5,034,000
Derivative liability, fair value	$ 54,000

Derivative Financial Instrume_3

Derivative Financial Instruments (Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Loss reclassified from condensed consolidated statement of comprehensive loss	$ 303	$ 0
Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain recognized in condensed consolidated statement of comprehensive loss	0
Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Loss reclassified from condensed consolidated statement of comprehensive loss	(210)
Condensed Consolidated Statement of Comprehensive Loss (pre-tax) | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain recognized in condensed consolidated statement of comprehensive loss	(179)
Condensed Consolidated Statement of Comprehensive Loss (pre-tax) | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Loss reclassified from condensed consolidated statement of comprehensive loss	210
Research and development | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain recognized in condensed consolidated statement of comprehensive loss	0
Research and development | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Loss reclassified from condensed consolidated statement of comprehensive loss	(133)
Sales and marketing | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain recognized in condensed consolidated statement of comprehensive loss	0
Sales and marketing | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Loss reclassified from condensed consolidated statement of comprehensive loss	(63)
General and administrative | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain recognized in condensed consolidated statement of comprehensive loss	0
General and administrative | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Loss reclassified from condensed consolidated statement of comprehensive loss	(14)
Foreign Exchange Forward | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Total expense (income) from foreign currency hedging	210
Foreign Exchange Forward | Condensed Consolidated Statement of Comprehensive Loss (pre-tax) | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Total expense (income) from foreign currency hedging	(389)
Foreign Exchange Forward | Research and development | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Total expense (income) from foreign currency hedging	133
Foreign Exchange Forward | Sales and marketing | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Total expense (income) from foreign currency hedging	63
Foreign Exchange Forward | General and administrative | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Total expense (income) from foreign currency hedging	$ 14

Commitments and Contingencies (

Commitments and Contingencies (Purchase Commitments and Indemnification) (Details)	Mar. 31, 2019USD ($)
Other Commitments [Line Items]
Purchase obligation	$ 19,900,000
Indemnification Agreement
Other Commitments [Line Items]
Guarantor obligations	$ 0

Commitments and Contingencies_2

Commitments and Contingencies (RUSNANO) (Details) - Investor - Agreement with RUSNANO	Mar. 31, 2019USD ($)	Jul. 31, 2014USD ($)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

Commitments and Contingencies_3

Commitments and Contingencies (Commitments) (Details) - USD ($)	Mar. 31, 2019	Mar. 27, 2019
License
Other Commitments [Line Items]
Contractual obligation	$ 2,500,000
License | Noncancellable Obligations
Other Commitments [Line Items]
Contractual obligation	2,200,000
Payable in fiscal 2019	1,500,000
Contractual obligation, year 2	700,000
Design Win Solutions
Other Commitments [Line Items]
Contractual obligation	$ 4,000,000
Pending Acquisition by ON Semiconductor Corporation
Other Commitments [Line Items]
Acquisition fee payable		1.85%
Acquisition fee payable amount		$ 1,000,000,000
Acquisition consideration payable		1.90%
Acquisition consideration payable amount		$ 1,000,000,000

Stockholders_ Equity (Details)

Stockholders’ Equity (Details)	Mar. 31, 2019vote$ / sharesshares	Dec. 30, 2018$ / 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)	3,773,768
RSUs issued and outstanding (in shares)	2,860,325
Shares available for ESPP (in shares)	1,233,490
Shares available for future stock awards (in shares)	3,198,960
Shares reserved for future issuance (in shares)	11,066,543

Stockholders_ Equity (Narrative

Stockholders’ Equity (Narrative 1) (Details) - shares	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	1,451,564	1,254,398
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		666,250

Stock-based Compensation (Detai

Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 5,230	$ 4,592
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	85	34
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,890	2,393
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	749	984
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 1,506	$ 1,181

Stock-based Compensation (Equit

Stock-based Compensation (Equity Based Awards Compensation Costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 5,230	$ 4,592
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	0	1,168
RSU awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	4,686	2,803
ESPP shares
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 544	$ 621

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Income Tax Disclosure [Abstract]
Provision for income taxes	$ (1,381)	$ 52

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Retirement Benefits [Abstract]
Contribution amount by Company	$ 0.2	$ 0.1

Merger Agreement (Details)

Merger Agreement (Details) - ON Semiconductor - USD ($) $ / shares in Units, $ in Millions	Mar. 27, 2019	Dec. 30, 2018
Subsidiary, Sale of Stock [Line Items]
Equity value	$ 1,070
Enterprise value	$ 936
Cash		$ 136
Sale of stock price (USD per share)	$ 24.50
Termination fee	$ 32.2