Aerohive Networks 10-Q 1 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2017	Oct. 27, 2017
Entity [Abstract]
Entity Registrant Name	Aerohive Networks, Inc.
Entity Central Index Key	1,372,414
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		53,598,569

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 33,949	$ 34,346
Short-term investments	49,064	42,408
Accounts receivable, net of allowance for doubtful accounts of $21 and $61 as of September 30, 2017 and December 31, 2016, respectively	17,186	26,190
Inventories	13,206	12,629
Prepaid expenses and other current assets	7,864	6,289
Total current assets	121,269	121,862
Property and equipment, net	7,005	9,008
Goodwill	513	513
Other assets	5,362	5,100
Total assets	134,149	136,483
CURRENT LIABILITIES:
Accounts payable	9,709	10,762
Accrued liabilities	8,976	9,300
Debt, current	0	20,000
Deferred revenue, current	36,761	31,727
Total current liabilities	55,446	71,789
Debt, non-current	20,000	0
Deferred revenue, non-current	35,732	34,177
Other liabilities	1,791	1,829
Total liabilities	112,969	107,795
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, par value of $0.001 per share - 25,000,000 shares authorized as of September 30, 2017 and December 31, 2016; no shares issued and outstanding as of September 30, 2017 and December 31, 2016	0	0
Common stock, par value of $0.001 per share - 500,000,000 shares authorized as of September 30, 2017 and December 31, 2016; 53,598,569 and 52,245,252 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	55	52
Additional paid–in capital	273,287	258,063
Treasury stock - 1,161,243 and 364,627 shares as of September 30, 2017 and December 31, 2016, respectively	(5,169)	(2,139)
Accumulated other comprehensive loss	(9)	(31)
Accumulated deficit	(246,984)	(227,257)
Total stockholders’ equity	21,180	28,688
Total liabilities and stockholders’ equity	$ 134,149	$ 136,483

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 21	$ 61
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	53,598,569	52,245,252
Common stock, shares outstanding	53,598,569	52,245,252
Treasury stock, shares outstanding	1,161,243	364,627

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Product	$ 26,750	$ 31,691	$ 85,666	$ 103,683
Subscription and support	10,318	8,678	30,053	24,445
Total revenue	37,068	40,369	115,719	128,128
Cost of revenue
Product	9,408	10,070	28,760	32,922
Subscription and support	3,244	3,095	9,573	9,048
Total cost of revenue	12,652	13,165	38,333	41,970
Gross profit	24,416	27,204	77,386	86,158
Operating expenses:
Research and development	9,260	10,685	28,032	31,457
Sales and marketing	15,948	19,647	50,807	62,037
General and administrative	5,700	6,515	17,486	22,135
Total operating expenses	30,908	36,847	96,325	115,629
Operating loss	(6,492)	(9,643)	(18,939)	(29,471)
Interest income	180	109	484	345
Interest expense	(135)	(115)	(412)	(351)
Other income (expense), net	(90)	22	(268)	128
Loss before income taxes	(6,537)	(9,627)	(19,135)	(29,349)
Provision for income taxes	75	85	369	298
Net loss	$ (6,612)	$ (9,712)	$ (19,504)	$ (29,647)
Net loss per share allocable to common stockholders, basic and diluted (USD per share)	$ (0.12)	$ (0.19)	$ (0.37)	$ (0.59)
Weighted-average shares used in computing net loss per share, basic and diluted	53,683,727	50,818,710	53,070,863	49,920,630
Stock-based compensation	$ 4,964	$ 6,415	$ 12,961	$ 16,765
Cost of Sales
Operating expenses:
Stock-based compensation	313	431	860	1,024
Research and development
Operating expenses:
Stock-based compensation	1,329	1,576	3,082	4,287
Sales and marketing
Operating expenses:
Stock-based compensation	1,566	2,505	4,361	6,336
General and administrative
Operating expenses:
Stock-based compensation	$ 1,756	$ 1,903	$ 4,658	$ 5,118

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,612)	$ (9,712)	$ (19,504)	$ (29,647)
Unrealized gain (loss) on available-for-sale investments, net of tax	29	(18)	22	63
Comprehensive loss	$ (6,583)	$ (9,730)	$ (19,482)	$ (29,584)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (19,504)	$ (29,647)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,371	2,665
Stock-based compensation	12,961	16,765
Other	(45)	280
Changes in operating assets and liabilities:
Accounts receivable, net	9,004	352
Inventories	(577)	(4,916)
Prepaid expenses and other current assets	(1,575)	901
Other assets	(262)	(93)
Accounts payable	(911)	(1,956)
Accrued liabilities	(329)	(1,239)
Other liabilities	93	400
Deferred revenue	6,589	6,147
Net cash provided by (used in) operating activities	7,815	(10,341)
Cash flows from investing activities
Purchases of property and equipment	(510)	(1,737)
Maturities of short-term investments	29,600	25,600
Purchases of short-term investments	(36,189)	(14,488)
Investment in privately held company	0	(1,500)
Net cash provided by (used in) investing activities	(7,099)	7,875
Cash flows from financing activities
Proceeds from exercise of vested stock options	723	815
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	2,390	2,890
Payment for shares withheld for tax withholdings on vesting of restricted stock units	(1,070)	(941)
Payment to repurchase common stock	(3,030)	(2,139)
Repayments of Long-term Capital Lease Obligations	(126)	0
Net cash provided by (used in) financing activities	(1,113)	625
Net decrease in cash and cash equivalents	(397)	(1,841)
Cash and cash equivalents at beginning of period	34,346	45,741
Cash and cash equivalents at end of period	33,949	43,900
Supplemental disclosure of cash flow information
Income taxes paid	295	535
Interest paid	424	364
Supplemental disclosure of noncash investing and financing activities
Unpaid property and equipment purchases	$ 62	$ 1,529

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Aerohive Networks, Inc. was incorporated in Delaware on March 15, 2006, and, together with its subsidiaries (the "Company"), has designed and developed a leading cloud and enterprise Wi-Fi solution that enables the Company's customers to use the power of the Wi-Fi, cloud, analytics and applications to transform how they serve their customers. The Company's products include Wi-Fi access points, routers and switches required to build an edge-access network; a cloud services platform for centralized management; data collection and analytics; and applications that leverage the network to provide additional capabilities to the business and IT organizations. Together, these products, service platforms and applications create a simple, scalable, and secure solution to deliver a better-connected experience. The Company has offices in North America, Europe and Asia Pacific and employs staff around the world. Basis of Presentation and Consolidation The Company prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"), which includes the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts the Company reported in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the best estimate of selling price ("BESP") of product, software and support services, determination of fair value of stock-based awards, inventory valuation, accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions, allowance for sales reserves, allowance for doubtful accounts, and warranty costs. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. As the Company, cannot determine future events and their effects with precision, actual results could differ from these estimates and assumptions, and those differences could be material to the consolidated financial statements. Foreign Currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company remeasures the transactions denominated in currencies other than the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, the Company remeasures its subsidiaries’ monetary assets and liabilities to the U.S. dollar using exchange rates in effect at the end of the reporting period. The Company remeasures its non-monetary assets and liabilities at historical exchange rates. The Company records gains and losses related to remeasurement in other income(expense), net in the consolidated statements of operations. Foreign currency exchange losses have not been significant in any period presented and the Company has not undertaken any hedging transactions related to foreign currency exposure. Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-11, Simplifying the Measurement of Inventory, which replaced the lower of cost or market test with the lower of cost or net realizable value test. The Company adopted this standard in the first quarter of fiscal year 2017, with January 1, 2017 being the effective date of adoption. The adoption of this standard had no impact on the Company's consolidated financial statements for the periods presented and any prior periods. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted this standard in the first quarter of fiscal year 2017, with January 1, 2017 being the effective date of adoption. This standard eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. However, as of January 1, 2017, this had no impact on our accumulated deficit as the related U.S. deferred tax assets were fully offset by a valuation allowance. Additionally, the Company elected to account for forfeitures as they occur rather than estimate expected forfeitures using a modified retrospective transition method. Accordingly, the Company recorded a cumulative-effect adjustment of $0.2 million to accumulated deficit as of January 1, 2017. Further, ASU 2016-09 requires excess tax benefits to be presented as a component of operating cash flows rather than financing cash flows. We elected to adopt this requirement prospectively and accordingly, prior periods have not been adjusted. Excess tax benefits were not material for all periods presented. The adoption of this standard did not have a material impact on the condensed consolidated financial statements for the three and nine months ended September 30, 2017. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from contracts with customers (Topic 606), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and most industry-specific guidance. This standard requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 deferring the effective date of this standard by one year to December 15, 2017, and, thus, the new standard will be effective for the Company on January 1, 2018. This standard may be adopted using either the full or modified retrospective methods. In April 2016 and May 2016, the FASB issued ASU 2016-10 and ASU 2016-12, respectively, which clarify guidance on identifying performance obligations, collectability criterion and noncash consideration. The Company preliminarily plans to adopt these standards on a full retrospective basis; however, the Company has not yet made a final decision on the adoption methodology and is currently in the process of determining the potential impact that these standards will have on the Company's consolidated financial statements. The Company has also identified and is in the process of implementing, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. While the Company cannot reasonably estimate the expected financial statement impact at this time, the Company believes the adoption of this new standard will have the most material impact on the way the Company accounts for arrangements with its stocking value-added distributors, or VADs. The Company currently defers the recognition of revenue and the cost of revenue from sales to these stocking VADs until the VADs have sold the products to their customers (known as “sell-through” revenue recognition). Under the new standard, the Company expects to recognize all revenue on sales to distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition until VADs report that they have sold the products to their customers (known as “sell-through” revenue recognition), provided that all other revenue recognition criteria have been met. The Company continues to assess all potential impacts of this ASU. Accordingly, its preliminary conclusions may change. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. This standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The standard also requires qualitative and quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including the Company's significant judgments and changes in judgments. This standard is effective beginning in fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , which provides guidance to decrease the 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, with early adoption permitted. The Company does not currently anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company plans to adopt this standard in 2021 when it becomes effective. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. The Company maintains cash equivalents in money market funds. The Company maintains short-term investments in U.S. treasuries, corporate securities, agency securities and commercial paper. The Company sells its products primarily to channel partners, which include value-added resellers, or VARs, value-added distributors, or VADs, and Managed Service Providers, or MSPs. The Company’s accounts receivable are typically unsecured and are derived from revenue earned from customers located in the Americas, Europe, the Middle East and Africa, and Asia Pacific. The Company performs ongoing credit evaluations to determine customer credit, but generally does not require collateral from its customers. The Company maintains reserves for estimated credit losses and these losses have historically been within management’s expectations. The Company has entered into separate agreements with certain individual VADs that are part of a consolidated group of entities which collectively constitutes greater than 10% of the Company’s total revenue or gross accounts receivable balance for certain periods, as presented in the tables below. The percentages of revenue from a consolidated group of entities (VAD A and VAD B) greater than 10% of total consolidated revenue were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 VAD A 17.3 % 14.0 % 15.4 % 13.8 % VAD B 36.9 % 19.2 % 24.6 % 11.0 % The percentages of receivables from VAD A, VAD B and an individual entity VAD C greater than 10% of total consolidated accounts receivable were as follows: September 30, December 31, 2017 2016 VAD A 23.5 % 22.4 % VAD B 27.5 % 14.4 % VAD C — % 15.3 % * Less than 10%

FAIR VALUE DISCLOSURE

FAIR VALUE DISCLOSURE	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURE	FAIR VALUE MEASUREMENTS The Company records its financial assets and liabilities at fair value. The Company categorizes these assets and liabilities based upon the level of judgment associated with inputs used to measure the fair value. The categories are as follows: Level 1 Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 Unobservable inputs are used when little or no market data is available. The Company classified its cash equivalents and short-term marketable investments within Level 1 and Level 2 in the fair value hierarchy as of September 30, 2017 and December 31, 2016, respectively. Level 1 assets include highly liquid money market funds that are included in cash equivalents. The Company classifies these instruments within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. Level 2 assets include U.S. treasuries, corporate securities, agency securities and commercial paper. The Company classifies these instruments within Level 2 of the fair value hierarchy because they are valued based on pricing obtained from an independent pricing service, which may use quoted market prices for identical or comparable instruments or model driven valuations using observable market date or inputs corroborated by observable market data. The Company classifies these instruments as short-term investments unless their maturities are three months or less when purchased, in which case the Company includes them in cash and cash equivalents. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency, which the Company obtains from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets. As of September 30, 2017 , the Company held an investment in a privately held company, which the Company classified as a Level 3 investment in the fair value hierarchy (Note 3). The components of the Company’s Level 1 and Level 2 assets are as follows: September 30, 2017 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 9,911 — 9,911 9,911 — $ 9,911 $ — $ 9,911 $ 9,911 $ — Level 2: U.S. treasuries 29,974 (5 ) 29,969 5,997 23,972 Corporate securities 11,151 (4 ) 11,147 — 11,147 Commercial paper 13,945 — 13,945 — 13,945 $ 55,070 $ (9 ) $ 55,061 $ 5,997 $ 49,064 Total $ 64,981 $ (9 ) $ 64,972 $ 15,908 $ 49,064 December 31, 2016 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 25,244 — 25,244 25,244 — $ 25,244 $ — $ 25,244 $ 25,244 — Level 2: U.S. treasuries 22,516 (19 ) 22,497 — 22,497 Corporate securities 7,353 (12 ) 7,341 — 7,341 Commercial paper 12,570 — 12,570 — 12,570 $ 42,439 $ (31 ) $ 42,408 $ — 42,408 Total $ 67,683 $ (31 ) $ 67,652 $ 25,244 $ 42,408 All short-term investments the Company held as of September 30, 2017 and December 31, 2016, contractually mature within one year from these respective dates. Unrealized gains and losses related to these investments are due to interest rate fluctuations as opposed to credit quality. In addition, the Company does not intend to sell, and it is not more likely than not that the Company would be required to sell, these investments before recovery of their cost basis. As a result, there was no other-than-temporary impairment for these investments as of September 30, 2017 and December 31, 2016.

CONSOLIDATED BALANCE SHEET COMP

CONSOLIDATED BALANCE SHEET COMPONENTS	9 Months Ended
	Sep. 30, 2017
Balance Sheet Related Disclosures [Abstract]
CONSOLIDATED BALANCE SHEET COMPONENTS	CONSOLIDATED BALANCE SHEET COMPONENTS Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: September 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, current portion $ 3,489 2,932 Prepaid expenses 3,113 2,032 Other 1,262 1,325 Total prepaid expenses and other current assets $ 7,864 $ 6,289 Property and Equipment, net Property and equipment, net consists of the following: September 30, December 31, Estimated Useful Lives 2017 2016 (in thousands) Computer and other equipment 3 years $ 1,902 $ 1,920 Manufacturing, research and development laboratory equipment 3 years 4,543 4,314 Software 2 to 5 years 8,217 8,217 Office furniture and equipment 3 to 7 years 2,065 2,070 Leasehold improvements shorter of useful life or lease term 1,008 1,008 Construction in progress 78 — Property and equipment, gross 17,813 17,529 Less: Accumulated depreciation and amortization (10,808 ) (8,521 ) Property and equipment, net $ 7,005 $ 9,008 The software category includes the capitalized internal-use software for the Company's cloud service platform. In April 2015, the Company completed and launched the next generation of its cloud services platform, and began to amortize these capitalized costs to cost of subscription and support revenue on a straight-line basis over an estimated useful life of the software of five years. Depreciation and amortization expense was $0.7 million and $0.9 million for the three months ended September 30, 2017 and 2016, respectively, and $2.4 million and $2.7 million for the nine months ended September 30, 2017 and 2016, respectively. Office furniture and equipment classified under capital lease was $1.2 million at September 30, 2017 and December 31, 2016 respectively, and the related accumulated depreciation was $0.4 million and $0.2 million at September 30, 2017 and December 31, 2016 respectively. Other assets Other assets consist of the following: September 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, non-current portion $ 3,332 $ 3,115 Investment in privately held company 1,500 1,500 Other 530 485 Total other assets $ 5,362 $ 5,100 In January 2016, the Company paid $1.5 million in cash to purchase a convertible note issued by a privately held company, which provides Wi-Fi application and analytics. In June 2017, the convertible note and accrued interest on the note converted into shares of preferred stock of the privately held company and the note was cancelled. The accrued interest on the note was immaterial for any period. The Company currently has no significant voting rights, investor rights or influence over the privately held company. Since the investment has no readily determinable market value, the Company has categorized it as a Level 3 asset in the fair value hierarchy. As of September 30, 2017 , the investment is carried at the value of original principal and the Company reviews such carried value quarterly for indicators of other-than-temporary impairment. The Company did not recognize an impairment for the three months ended September 30, 2017 and 2016, respectively, as there were no identified events or changes in circumstances that might have a significant adverse impact on the carrying values of the investment. Since the Company does not intend to liquidate this investment in the next 12 months , the Company has classified the investment as other assets on the condensed consolidated balance sheet. Accrued Liabilities Accrued liabilities consist of the following: September 30, December 31, 2017 2016 (in thousands) Accrued compensation $ 7,423 $ 7,230 Accrued expenses and other liabilities 1,073 1,445 Warranty liability, current portion 480 625 Total accrued liabilities $ 8,976 $ 9,300 Deferred Revenue Deferred revenue consists of the following: September 30, December 31, 2017 2016 (in thousands) Products $ 4,207 $ 1,220 Subscription and support 68,286 64,684 Total deferred revenue 72,493 65,904 Less: current portion of deferred revenue 36,761 31,727 Non-current portion of deferred revenue $ 35,732 $ 34,177 Warranty Liability The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 930 $ 1,034 $ 975 $ 978 Charges to operations 141 142 492 515 Obligations fulfilled (247 ) (124 ) (586 ) (331 ) Changes in existing warranty (11 ) (53 ) (68 ) (163 ) Total product warranties $ 813 $ 999 $ 813 $ 999 Current portion $ 480 $ 660 $ 480 $ 660 Non-current portion $ 333 $ 339 $ 333 $ 339 Changes in existing warranty reflect a combination of changes in expected warranty claims and changes in the related costs to service such claims.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
DEBT	DEBT Financing Agreements In June 2012, the Company entered into a revolving credit facility with Silicon Valley Bank (the "Revolving Credit Facility"). The Revolving Credit Facility is collateralized by substantially all of the Company’s property, other than intellectual property. Since January 1, 2016, the Revolving Credit Facility bears interest rate at the lesser of (i) LIBOR rate plus 1.75% or (ii) prime rate minus 1.0% . In March 2017, the Company further amended the Revolving Credit Facility to extend the maturity date by two years and reduce the minimum cash requirements. The weighted-average interest rate of the Revolving Credit Facility was 3.09% and 2.35% for the three months ended September 30, 2017 and 2016, respectively, and 2.85% and 2.36% for the nine months ended September 30, 2017 and 2016, respectively. The Revolving Credit Facility contains customary negative covenants which, unless waived by the bank, limit the Company’s ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets or engage in merger and acquisition activity, including merge or consolidate with a third party. The Revolving Credit Facility also requires the Company to maintain a minimum adjusted quick ratio of 1.25 to 1.00 and a minimum cash balance with the bank as of the last day of each month of $35.0 million and to demonstrate the absence of defined events of default in order to assure full access to the available borrowing. The Revolving Credit Facility also contains customary events of default, subject to customary cure periods for certain defaults, that include, among other things, non-payment defaults, covenant defaults, material judgment defaults, bankruptcy and insolvency defaults, cross-defaults to certain other material indebtedness, and defaults due to inaccuracy of representation and warranties. Upon an event of default, the lender may declare all or a portion of the outstanding obligations payable by the Company to be immediately due and payable and exercise other rights and remedies provided for under the Revolving Credit Facility. During the existence of an event of default, interest on the obligations under the Revolving Credit Facility could be increased by 5.0% . As of September 30, 2017 , the Company was in compliance with these covenants. The Revolving Credit facility currently provides, among other things, (i) a maturity date of March 31, 2019; and (ii) a revolving line up to $20.0 million , subject to certain conditions. As of September 30, 2017 , $20.0 million remains outstanding under the Revolving Credit Facility, and is classified as non-current liabilities in the condensed consolidated balance sheet.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Lease Commitments The Company currently leases its main office facility in Milpitas, California, which lease is set to expire in June 2023. In addition, the Company leases office space for its subsidiaries in the United Kingdom, the Netherlands, Korea and China under non-cancelable operating leases that expire at various times through August 2021. The Company has also entered into various lease agreements in other locations in the United States and globally to support its sales and research and development functions. The Company recognizes rent expense on a straight-line basis over the respective lease period. Future minimum lease payments by year under operating leases as of September 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining three months) $ 364 2018 1,809 2019 1,417 2020 1,084 2021 1,081 Thereafter 1,438 Total $ 7,193 Rent expense was $0.5 million and $0.5 million for the three months ended September 30, 2017 and 2016, respectively, and was $1.5 million and $1.9 million for the nine months ended September 30, 2017 and 2016, respectively. Capital Lease Obligations The Company has certain office furniture and equipment that are classified under capital leases. The terms of the capital leases range from three years to seven years. The interest expense is immaterial in any particular period. Future minimum lease payments by year under capital lease obligations as of September 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining three months) $ 47 2018 185 2019 176 2020 172 2021 169 Thereafter 245 Total $ 994 Less: current portion of capital lease obligations 185 Non-current portion of capital lease obligations $ 809 Manufacturing Commitments The Company subcontracts with manufacturing companies to manufacture its hardware products. The contract manufacturers procure components based on non-cancelable orders the Company places with them. If the Company cancels all or part of an order, the Company is liable to the contract manufacturers for the cost of the related components they purchased under such orders. As of September 30, 2017 and December 31, 2016, the Company had manufacturing commitments with contract manufacturers for inventory totaling approximately $5.4 million and $9.5 million , respectively. Contingencies The Company may be subject to legal proceedings and litigation arising from time to time. The Company will record a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. The Company expects periodically to evaluate developments in its legal matters that could affect the amount of liability that it has previously accrued, if any, and make adjustments as appropriate. The Company exercises significant judgment to determine both likelihood of there being, and the estimated amount of, a loss related to such matters, and the Company’s judgment may be incorrect. The Company cannot reasonably determine in advance the outcome of any litigation proceeding. Until the final resolution of any such matter for which the Company may be required to accrue, the Company may have an exposure to loss in excess of the amount the Company has accrued, and such excess amount could be significant. The Company is currently engaged in the following separate litigations which allege that the Company’s products infringe certain patents. • Linex Technologies, or Linex, filed on March 19, 2013 a complaint in the U.S. District Court, Southern District of Florida, asserting that some or all of the Company’s products infringe U.S. Patents Nos. #6,493,377, or the ‘377 Patent, and #7,167,503, or the ’503 Patent. The Company filed an answer and counterclaims for declaratory judgment against Linex asserting that the Company’s products do not infringe the ‘377 and ‘503 Patents, and that the ‘377 and ‘503 Patents are, in any case, invalid and not enforceable. The Company separately filed with the U.S. Patent and Trademark Office, or the PTO, petitions to initiate reexamination of the ‘377 and ‘503 Patents, which petitions the PTO granted. In the PTO reexaminations, all claims under the ‘377 and '503 Patents have been rejected and Linex has appealed the final rejections of the claims. This case is currently stayed pending the reexaminations. • Chrimar Systems, or Chrimar, filed in July 2015 a complaint in the U.S. District Court, Eastern District of Texas, asserting that certain of the Company’s products which utilize Power over Ethernet ("POE") functionality infringe United States Patent Nos. 8,155,012, or the '012 Patent, 8,902,760, or the '760 Patent, 8,942,107, or the '107 Patent and 9,019,838, or the '838 Patent. A jury trial was conducted in January 2017, following which the court entered an order finding non-infringement as to the Company's products under all patents in suit. The court subsequently entered a final judgment as to non-infringement under the patents in suit, which neither party challenged or appealed prior to the lapsing of the period for any such timely challenges or appeals. The Company separately filed with the PTO petitions to initiate reexamination of the '012 Patent and the '760 Patent, which petitions the PTO granted. The PTO has rejected all claims of the '012 Patent and is considering the Company's petition regarding the '760 Patent. • Mobile Telecommunications Technologies LLC, or Mobile, filed in May 2016 a complaint in the U.S. District Court, Eastern District of Texas, asserting that certain of the Company’s products which utilize MIMO systems or frequency structures and functionality infringe United States Patent Nos. 5,590,403, 5,659,891, and 5,915,210. The case was consolidated with several other cases involving the same patents and transferred to U.S. District Court, Delaware, for pretrial purposes. The Company is also currently engaged in separate litigation by a former employee, who has asserted claims that Company, in conjunction with his termination (a) discriminated against him on the basis of his race and national origin, (b) retaliated against him for complaints about discrimination, and (c) retaliated against him for complaints in connection with a vendor contract. Aerohive has denied all liability. The case is proceeding to binding arbitration, and the arbitration hearing is currently scheduled for November 2017. If the former employee prevails, he may be awarded his attorney fees and may recover punitive damages against the Company. The parties have agreed to participate in mediation prior to the arbitration. If the case does not settle in mediation, Aerohive intends to defend itself vigorously at the arbitration. The Company intends to defend these lawsuits vigorously, and is not able to predict or estimate any range of reasonably possible loss related to these lawsuits. If these matters have an adverse outcome, they may have a material impact on the Company’s financial position, results of operations or cash flows. Guarantees The Company typically enters into agreements with its customers that contain indemnification provisions in the event of claims alleging that the Company’s products infringe the intellectual property rights of a third party. The Company has at its option and expense, the ability to resolve any infringement, replace product with a non-infringing product that is equivalent-in-function, or refund to the customers the total product price. These agreements also typically include guarantees of product and service performance. The Company has not recorded a liability related to these indemnification and guarantee provisions and the Company’s indemnification and guarantee provisions have not had any impact on the consolidated financial statements to date.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY Common Stock reserved for Future Issuance As of September 30, 2017 , the Company had the following reserved shares of common stock for future issuance: September 30, 2017 Common stock reserved for future grant under the 2014 Equity Incentive Plan 7,473,429 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 2,012,431 Options and Restricted Stock Units issued and outstanding 9,254,272 Total reserved shares of common stock for future issuance 18,740,132

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION 2014 Equity Incentive Plan On March 26, 2014, the Company's 2014 Equity Incentive Plan ("2014 Plan") became effective. On March 27, 2014, the Company terminated its earlier 2006 Global Share Plan ("2006 Plan"), added all reserved-but-unissued shares under the 2006 Plan to the 2014 Plan and rolled into the 2014 Plan all shares underlying stock awards granted under the 2006 Plan that otherwise would return to the 2006 Plan. The Company may not grant additional awards under the 2006 Plan, but the 2006 Plan will continue to govern outstanding awards previously granted under the 2006 Plan. The 2014 Plan provides for the grant of incentive stock options within the meaning of Section 422 of the Internal Revenue Code, only to employees of the Company or any parent or subsidiary of the Company, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to employees, directors and consultants of the Company, and the employees and consultants of any parent or subsidiary of the Company. In January 2017, the Company effected an increase of 2,612,263 shares reserved under the 2014 Plan. As of September 30, 2017 , the Company had 7,473,429 total shares of common stock reserved and available for grant under the 2014 Plan. The following table summarizes the total number of shares available for grant under the 2014 Plan as of September 30, 2017 : Shares Available for Grant Balance, December 31, 2016 5,116,753 Authorized 2,612,263 Options granted — Options canceled 1,436,112 Awards granted (3,287,665 ) Awards canceled 1,595,966 Balance, September 30, 2017 7,473,429 Stock Options The following table summarizes the information about outstanding stock option activity: Options Outstanding Number of Underlying Outstanding Options Weighted Price Weighted Aggregate (in thousands) Balance, December 31, 2016 6,219,774 $ 6.15 6.42 $ 6,056 Options granted — — Options exercised (409,065 ) 1.73 Options canceled (1,436,112 ) 7.74 Balance, September 30, 2017 4,374,597 $ 6.04 6.07 $ 2,732 Options exercisable, September 30, 2017 3,439,751 $ 5.81 5.57 $ 2,732 The weighted-average grant-date fair value of options granted during the three and nine months ended September 30, 2016 was $3.03 and $3.15 per share, respectively, and the aggregate grant-date fair value of the Company's stock options granted during the three and nine months ended September 30, 2016 was $0.1 million and $3.0 million , respectively. There were no options granted during the three and nine months ended September 30, 2017. The aggregate intrinsic value of stock options exercised during the three months ended September 30, 2017 and 2016, was $0.03 million and $0.9 million , respectively, and during the nine months ended September 30, 2017 and 2016 was $1.2 million and $1.6 million , respectively. The intrinsic value for each share underlying an option represents the difference between the option exercise price per share and the closing stock price of a share of the Company’s common stock. The total grant-date fair value of the options vested during the three months ended September 30, 2017 and 2016 was $0.7 million and $1.4 million , respectively, and during the nine months ended September 30, 2017 and 2016 was $2.6 million and $5.9 million , respectively. Restricted Stock Units The Company currently grants Restricted Stock Units ("RSUs") to certain employees and directors. The RSUs typically vest over a period of time, generally one to three years , and are subject to the participant’s continuing service to the Company over that period. Until vested, RSUs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding. The following is a summary of the Company’s RSU activity and related information for the three months ended September 30, 2017 : Restricted Stock Units Outstanding Shares Weighted-Average Fair Value Per Share Balance, December 31, 2016 4,365,670 $ 6.23 Awards granted 3,287,665 4.96 Awards vested (1,453,616 ) 5.92 Awards canceled (1,320,044 ) 6.14 Balance, September 30, 2017 4,879,675 $ 5.49 The weighted-average grant-date fair value of RSUs granted during the three months ended September 30, 2017 and 2016 was $4.66 and $6.09 per share, respectively, and during the nine months ended September 30, 2017 and 2016 was $4.96 and $6.23 , respectively. The aggregate grant-date fair value of RSUs granted during the three months ended September 30, 2017 and 2016 was $0.4 million and $1.0 million , respectively, and during the nine months ended September 30, 2017 and 2016 was $16.3 million and $19.9 million , respectively. The aggregate fair value of shares vested as of the respective vesting dates during the three months ended September 30, 2017 and 2016 was $1.7 million and $4.1 million , respectively, and during the nine months ended September 30, 2017 and 2016 was $6.3 million and $10.0 million , respectively. The number of RSUs vested during a particular period includes shares that the Company withheld during the period on behalf of certain employees to satisfy the minimum statutory tax withholding requirements, as determined by the Company. During the three months ended September 30, 2017 and 2016, the Company withheld 180,345 and 60,638 shares of stock, respectively, for an aggregate value of $0.6 million and $0.4 million , respectively. During the nine months ended September 30, 2017 and 2016, the Company withheld 275,922 and 156,186 shares of stock, respectively, for an aggregate value of $1.1 million and $0.9 million , respectively. The Company returned such withheld shares to the 2014 Plan, which were then available under the plan terms for future issuance. The number of RSUs granted includes 378,644 shares of performance-based restricted stock units ("PBRSUs") that the Company granted to certain executives in the first quarter of fiscal year 2017 pursuant to the 2014 Plan. Each PBRSU represents the right to receive one share of the Company's common stock upon vesting, subject to the Company's achievement of certain performance conditions. At each reporting period, the Company assesses the probability of the number of these PBRSUs expected to vest based on its achievement of the performance condition. The number of RSUs granted also includes 358,000 shares of market-based restricted stock units (MBRSUs) that the Company granted to certain executives in June 2017 pursuant to the 2014 Plan. Each MBRSU represents the right to receive one share of the Company's common stock upon vesting subject to the Company's achievement of certain stock price targets. The Company estimated the fair value of the MBRSUs using the Monte Carlo option-pricing model as of the date of grant as the MBRSUs contain both market and service conditions. The weighted-average grant-date fair value of these MBRSU's was $4.18 per share. The Company will record the total expense related to all of the MBRSUs on a graded-vesting method over the estimated term. 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan ("ESPP") is a ten-year plan, effective in March 2014. The ESPP authorizes the Company to issue shares of common stock pursuant to purchase rights it grants to its employees and those of its designated subsidiaries. In January 2017, the Company effected an increase of 1,000,000 shares reserved under the ESPP. As of September 30, 2017 , the Company had 2,012,431 total shares of common stock reserved and available for issuance under the ESPP. Under the ESPP, the Company grants stock purchase rights to all eligible employees, currently covering a one -year offering period ending December 1, 2017, with purchase dates at the end of each interim six-month purchase period. Employees purchase shares using employee payroll deductions at purchase prices equal to 85% of the lesser of the fair market value of the Company’s common stock at either the first day of each offering period or the date of purchase. The ESPP currently has a reset provision: If the closing price of the Company’s common stock on the last day of any purchase period during an offering period is lower than the closing sales price on the first day of the related offering period, that offering period will terminate upon the purchase of shares for such purchase period and participants will be automatically re-enrolled in the immediately following offering period. As a result, the reference price for purposes of determining the purchase price of shares for subsequent purchase periods for all participants of the new offering period resets to such lower price. No participant may purchase more than $25,000 worth of common stock in any calendar year, or 5,000 shares of common stock in any six-month purchase period. For the nine months ended September 30, 2017 and 2016, the Company issued 563,174 and 646,278 shares under the ESPP plan, respectively. The Company did not issue any shares under the ESPP during the three months ended September 30, 2017 and 2016 respectively. Stock Repurchase Program In February 2016, the Company's board of directors authorized a stock repurchase program of up to $10.0 million , with stock purchases made from time to time in compliance with applicable securities laws in the open market or in privately negotiated transactions. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability. The authorization does not require the purchase of any minimum number of shares, and the Company may suspend, modify or discontinue the program at any time without prior notice. In August 2017, our board of directors extended this program to June 30, 2018 . During the nine months ended September 30, 2017 , the Company repurchased a total of 796,616 shares of its common stock on the open market at a total cost of $3.0 million with an average price per share of $3.80 . During the nine months ended September 30, 2016, the Company repurchased a total of 364,627 shares at a total cost of $2.1 million with an average price per share of $5.87 . As of September 30, 2017, we had repurchased under this program 1,161,243 shares of our common stock at a total price $5.2 million with an average purchase price $4.45 per share of our common stock. Approximately $4.8 million remains available as of September 30, 2017 for repurchases under this program. Determination of Fair Values Weighted-average assumptions for the Company's stock options granted were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock options: Expected term (in years) N/A 5.85 N/A 5.78 Expected volatility N/A 53.18 % N/A 55.09 % Risk free interest rate N/A 1.15 % N/A 1.49 % Weighted-average assumptions to value MBRSUs under the Monte Carlo model were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 MBRSUs: Expected volatility N/A N/A 46 % 53 % Risk free interest rate N/A N/A 1.45 % 1.07 % Weighted-average assumptions to value employee stock purchase rights under the Black-Scholes model were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 2.00 0.50 - 1.00 0.50 - 2.00 Expected volatility 34% - 39% 35% - 55% 34% - 39% 35% - 55% Risk free interest rate 0.60% - 1.07% 0.07% - 0.51% 0.60% - 1.07% 0.07% - 0.51% Stock-based Compensation Expense The total stock-based compensation the Company recognized for stock-based awards in the consolidated statements of operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Cost of revenue $ 313 $ 431 $ 860 $ 1,024 Research and development 1,329 1,576 3,082 4,287 Sales and marketing 1,566 2,505 4,361 6,336 General and administrative 1,756 1,903 4,658 5,118 Total stock-based compensation $ 4,964 $ 6,415 $ 12,961 $ 16,765 The following table presents stock-based compensation expense by award-type: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Stock Options $ 652 $ 1,336 $ 2,355 $ 3,667 Restricted Stock Units 3,945 4,353 9,408 11,044 Employee Stock Purchase Plan 367 726 1,198 2,054 Total stock-based compensation $ 4,964 $ 6,415 $ 12,961 $ 16,765 As of September 30, 2017 , unrecognized stock-based compensation related to outstanding stock options, RSUs and ESPP purchase rights, was $3.1 million , $22.1 million and $0.3 million , respectively, which the Company expects to recognize over weighted-average periods of 1.61 years , 2.01 years and 0.17 years , respectively.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE The Company calculates basic and diluted net loss per share by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive. The following table presents the computation of basic and diluted net loss per share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except for share and per share data) Numerator: Net loss $ (6,612 ) $ (9,712 ) $ (19,504 ) $ (29,647 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 53,683,727 50,818,710 53,070,863 49,920,630 Net loss per share: Basic and diluted $ (0.12 ) $ (0.19 ) $ (0.37 ) $ (0.59 ) The Company excluded the following period-end outstanding common stock equivalents from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of September 30, 2017 2016 Shares of common stock issuable under the Equity Incentive Plan 9,254,272 11,557,330 Employee Stock Purchase Plan 431,153 392,029 Total 9,685,425 11,949,359

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The provision for income taxes was approximately $0.1 million and $0.1 million , respectively, for the three months ended September 30, 2017 and 2016 and was $0.4 million and $0.3 million , respectively, for the nine months ended September 30, 2017 and 2016. The provision for income taxes consisted primarily of state taxes and foreign income taxes. For the three and nine months ended September 30, 2017 and 2016, the provision for income taxes differed from the statutory amount primarily due to the Company's maintaining a full valuation allowance against the U.S. net deferred tax assets, partially offset by foreign and state taxes. The Company has intercompany services agreements with its subsidiaries located in the United Kingdom, the Netherlands, New Zealand, Australia, Canada and China, which require payment for services rendered by these subsidiaries at an arm’s-length transaction price. The foreign tax expense represents foreign income tax payable by these subsidiaries on profit generated on intercompany services agreements. The Company's realization of deferred tax assets depends on future taxable income, the existence and timing of which is uncertain. Based on the Company’s history of losses, management has determined it cannot conclude that it is more likely than not that the deferred tax assets will be realized and, accordingly, management has placed a full valuation allowance against its domestic deferred tax assets, including net operating loss carryforwards and research and development and other tax credits, as of September 30, 2017 and December 31, 2016, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company’s chief operating decision maker ("CODM") is its Chief Executive Officer. The Company derives its revenue primarily from sales of products and subscription and support services. The Company’s CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company determined that it operates as one reportable and operating segment. The following table represents the Company's revenue based on the billing address of the respective channel partners: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Americas $ 22,613 $ 25,732 $ 75,672 $ 78,777 Europe, Middle East and Africa 11,141 10,538 31,371 34,695 Asia Pacific 3,314 4,099 8,676 14,656 Total revenues $ 37,068 $ 40,369 $ 115,719 $ 128,128 Included within Americas in the above table is revenue from sales in the United States of $21.0 million and $24.0 million , respectively, for the three months ended September 30, 2017 and 2016, and $70.1 million and $74.2 million , respectively, for the nine months ended September 30, 2017 and 2016. Aside from the United States, no country comprised 10% or more of the Company's total revenue for each of the three months ended September 30, 2017 and 2016, respectively. Property and equipment, net by location is summarized as follows: September 30, December 31, 2017 2016 (in thousands) United States $ 5,929 $ 7,685 People's Republic of China 901 1,096 United Kingdom 175 227 Total property and equipment, net $ 7,005 $ 9,008

DESCRIPTION OF BUSINESS AND S17

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Nature of Operations Aerohive Networks, Inc. was incorporated in Delaware on March 15, 2006, and, together with its subsidiaries (the "Company"), has designed and developed a leading cloud and enterprise Wi-Fi solution that enables the Company's customers to use the power of the Wi-Fi, cloud, analytics and applications to transform how they serve their customers. The Company's products include Wi-Fi access points, routers and switches required to build an edge-access network; a cloud services platform for centralized management; data collection and analytics; and applications that leverage the network to provide additional capabilities to the business and IT organizations. Together, these products, service platforms and applications create a simple, scalable, and secure solution to deliver a better-connected experience. The Company has offices in North America, Europe and Asia Pacific and employs staff around the world.
Basis of Presentation	The Company prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"), which includes the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries.
Consolidation	All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts the Company reported in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the best estimate of selling price ("BESP") of product, software and support services, determination of fair value of stock-based awards, inventory valuation, accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions, allowance for sales reserves, allowance for doubtful accounts, and warranty costs. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. As the Company, cannot determine future events and their effects with precision, actual results could differ from these estimates and assumptions, and those differences could be material to the consolidated financial statements
Foreign Currency	Foreign Currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company remeasures the transactions denominated in currencies other than the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, the Company remeasures its subsidiaries’ monetary assets and liabilities to the U.S. dollar using exchange rates in effect at the end of the reporting period. The Company remeasures its non-monetary assets and liabilities at historical exchange rates. The Company records gains and losses related to remeasurement in other income(expense), net in the consolidated statements of operations. Foreign currency exchange losses have not been significant in any period presented and the Company has not undertaken any hedging transactions related to foreign currency exposure.
New Accounting Pronouncements	Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-11, Simplifying the Measurement of Inventory, which replaced the lower of cost or market test with the lower of cost or net realizable value test. The Company adopted this standard in the first quarter of fiscal year 2017, with January 1, 2017 being the effective date of adoption. The adoption of this standard had no impact on the Company's consolidated financial statements for the periods presented and any prior periods. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted this standard in the first quarter of fiscal year 2017, with January 1, 2017 being the effective date of adoption. This standard eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. However, as of January 1, 2017, this had no impact on our accumulated deficit as the related U.S. deferred tax assets were fully offset by a valuation allowance. Additionally, the Company elected to account for forfeitures as they occur rather than estimate expected forfeitures using a modified retrospective transition method. Accordingly, the Company recorded a cumulative-effect adjustment of $0.2 million to accumulated deficit as of January 1, 2017. Further, ASU 2016-09 requires excess tax benefits to be presented as a component of operating cash flows rather than financing cash flows. We elected to adopt this requirement prospectively and accordingly, prior periods have not been adjusted. Excess tax benefits were not material for all periods presented. The adoption of this standard did not have a material impact on the condensed consolidated financial statements for the three and nine months ended September 30, 2017. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from contracts with customers (Topic 606), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and most industry-specific guidance. This standard requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 deferring the effective date of this standard by one year to December 15, 2017, and, thus, the new standard will be effective for the Company on January 1, 2018. This standard may be adopted using either the full or modified retrospective methods. In April 2016 and May 2016, the FASB issued ASU 2016-10 and ASU 2016-12, respectively, which clarify guidance on identifying performance obligations, collectability criterion and noncash consideration. The Company preliminarily plans to adopt these standards on a full retrospective basis; however, the Company has not yet made a final decision on the adoption methodology and is currently in the process of determining the potential impact that these standards will have on the Company's consolidated financial statements. The Company has also identified and is in the process of implementing, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. While the Company cannot reasonably estimate the expected financial statement impact at this time, the Company believes the adoption of this new standard will have the most material impact on the way the Company accounts for arrangements with its stocking value-added distributors, or VADs. The Company currently defers the recognition of revenue and the cost of revenue from sales to these stocking VADs until the VADs have sold the products to their customers (known as “sell-through” revenue recognition). Under the new standard, the Company expects to recognize all revenue on sales to distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition until VADs report that they have sold the products to their customers (known as “sell-through” revenue recognition), provided that all other revenue recognition criteria have been met. The Company continues to assess all potential impacts of this ASU. Accordingly, its preliminary conclusions may change. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. This standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The standard also requires qualitative and quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including the Company's significant judgments and changes in judgments. This standard is effective beginning in fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , which provides guidance to decrease the 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, with early adoption permitted. The Company does not currently anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company plans to adopt this standard in 2021 when it becomes effective.
Concentrations of Credit Risk and Significant Customers	Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. The Company maintains cash equivalents in money market funds. The Company maintains short-term investments in U.S. treasuries, corporate securities, agency securities and commercial paper. The Company sells its products primarily to channel partners, which include value-added resellers, or VARs, value-added distributors, or VADs, and Managed Service Providers, or MSPs. The Company’s accounts receivable are typically unsecured and are derived from revenue earned from customers located in the Americas, Europe, the Middle East and Africa, and Asia Pacific. The Company performs ongoing credit evaluations to determine customer credit, but generally does not require collateral from its customers. The Company maintains reserves for estimated credit losses and these losses have historically been within management’s expectations.

DESCRIPTION OF BUSINESS AND S18

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of Revenue from Individual Customers	The percentages of revenue from a consolidated group of entities (VAD A and VAD B) greater than 10% of total consolidated revenue were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 VAD A 17.3 % 14.0 % 15.4 % 13.8 % VAD B 36.9 % 19.2 % 24.6 % 11.0 % The percentages of receivables from VAD A, VAD B and an individual entity VAD C greater than 10% of total consolidated accounts receivable were as follows: September 30, December 31, 2017 2016 VAD A 23.5 % 22.4 % VAD B 27.5 % 14.4 % VAD C — % 15.3 % * Less than 10%

FAIR VALUE DISCLOSURE (Tables)

FAIR VALUE DISCLOSURE (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities measured at fair value on a recurring basis	The components of the Company’s Level 1 and Level 2 assets are as follows: September 30, 2017 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 9,911 — 9,911 9,911 — $ 9,911 $ — $ 9,911 $ 9,911 $ — Level 2: U.S. treasuries 29,974 (5 ) 29,969 5,997 23,972 Corporate securities 11,151 (4 ) 11,147 — 11,147 Commercial paper 13,945 — 13,945 — 13,945 $ 55,070 $ (9 ) $ 55,061 $ 5,997 $ 49,064 Total $ 64,981 $ (9 ) $ 64,972 $ 15,908 $ 49,064 December 31, 2016 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 25,244 — 25,244 25,244 — $ 25,244 $ — $ 25,244 $ 25,244 — Level 2: U.S. treasuries 22,516 (19 ) 22,497 — 22,497 Corporate securities 7,353 (12 ) 7,341 — 7,341 Commercial paper 12,570 — 12,570 — 12,570 $ 42,439 $ (31 ) $ 42,408 $ — 42,408 Total $ 67,683 $ (31 ) $ 67,652 $ 25,244 $ 42,408

CONSOLIDATED BALANCE SHEET CO20

CONSOLIDATED BALANCE SHEET COMPONENTS (Tables)	9 Months Ended
	Sep. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following: September 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, current portion $ 3,489 2,932 Prepaid expenses 3,113 2,032 Other 1,262 1,325 Total prepaid expenses and other current assets $ 7,864 $ 6,289
Schedule of Property and Equipment	Property and equipment, net consists of the following: September 30, December 31, Estimated Useful Lives 2017 2016 (in thousands) Computer and other equipment 3 years $ 1,902 $ 1,920 Manufacturing, research and development laboratory equipment 3 years 4,543 4,314 Software 2 to 5 years 8,217 8,217 Office furniture and equipment 3 to 7 years 2,065 2,070 Leasehold improvements shorter of useful life or lease term 1,008 1,008 Construction in progress 78 — Property and equipment, gross 17,813 17,529 Less: Accumulated depreciation and amortization (10,808 ) (8,521 ) Property and equipment, net $ 7,005 $ 9,008
Schedule of Other Assets	Other assets consist of the following: September 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, non-current portion $ 3,332 $ 3,115 Investment in privately held company 1,500 1,500 Other 530 485 Total other assets $ 5,362 $ 5,100
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: September 30, December 31, 2017 2016 (in thousands) Accrued compensation $ 7,423 $ 7,230 Accrued expenses and other liabilities 1,073 1,445 Warranty liability, current portion 480 625 Total accrued liabilities $ 8,976 $ 9,300
Summary of Deferred Revenue	Deferred revenue consists of the following: September 30, December 31, 2017 2016 (in thousands) Products $ 4,207 $ 1,220 Subscription and support 68,286 64,684 Total deferred revenue 72,493 65,904 Less: current portion of deferred revenue 36,761 31,727 Non-current portion of deferred revenue $ 35,732 $ 34,177
Schedule of Product Warranty Liability	The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 930 $ 1,034 $ 975 $ 978 Charges to operations 141 142 492 515 Obligations fulfilled (247 ) (124 ) (586 ) (331 ) Changes in existing warranty (11 ) (53 ) (68 ) (163 ) Total product warranties $ 813 $ 999 $ 813 $ 999 Current portion $ 480 $ 660 $ 480 $ 660 Non-current portion $ 333 $ 339 $ 333 $ 339

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payment by Year Under Operating Leases	Future minimum lease payments by year under operating leases as of September 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining three months) $ 364 2018 1,809 2019 1,417 2020 1,084 2021 1,081 Thereafter 1,438 Total $ 7,193
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum lease payments by year under capital lease obligations as of September 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining three months) $ 47 2018 185 2019 176 2020 172 2021 169 Thereafter 245 Total $ 994 Less: current portion of capital lease obligations 185 Non-current portion of capital lease obligations $ 809

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Schedule of shares reserved for future issuance	As of September 30, 2017 , the Company had the following reserved shares of common stock for future issuance: September 30, 2017 Common stock reserved for future grant under the 2014 Equity Incentive Plan 7,473,429 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 2,012,431 Options and Restricted Stock Units issued and outstanding 9,254,272 Total reserved shares of common stock for future issuance 18,740,132

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of total shares available for grant	The following table summarizes the total number of shares available for grant under the 2014 Plan as of September 30, 2017 : Shares Available for Grant Balance, December 31, 2016 5,116,753 Authorized 2,612,263 Options granted — Options canceled 1,436,112 Awards granted (3,287,665 ) Awards canceled 1,595,966 Balance, September 30, 2017 7,473,429
Summary of shares available for grant and outstanding stock option activity	The following table summarizes the information about outstanding stock option activity: Options Outstanding Number of Underlying Outstanding Options Weighted Price Weighted Aggregate (in thousands) Balance, December 31, 2016 6,219,774 $ 6.15 6.42 $ 6,056 Options granted — — Options exercised (409,065 ) 1.73 Options canceled (1,436,112 ) 7.74 Balance, September 30, 2017 4,374,597 $ 6.04 6.07 $ 2,732 Options exercisable, September 30, 2017 3,439,751 $ 5.81 5.57 $ 2,732
Summary of RSU activity and related information	summary of the Company’s RSU activity and related information for the three months ended September 30, 2017 : Restricted Stock Units Outstanding Shares Weighted-Average Fair Value Per Share Balance, December 31, 2016 4,365,670 $ 6.23 Awards granted 3,287,665 4.96 Awards vested (1,453,616 ) 5.92 Awards canceled (1,320,044 ) 6.14 Balance, September 30, 2017 4,879,675 $ 5.49
Summary of the assumptions related to stock options	Weighted-average assumptions for the Company's stock options granted were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock options: Expected term (in years) N/A 5.85 N/A 5.78 Expected volatility N/A 53.18 % N/A 55.09 % Risk free interest rate N/A 1.15 % N/A 1.49 %
Schedule of share based payment award, equity other than options, valuation [Table Text Block]	Weighted-average assumptions to value MBRSUs under the Monte Carlo model were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 MBRSUs: Expected volatility N/A N/A 46 % 53 % Risk free interest rate N/A N/A 1.45 % 1.07 %
Weighted average assumptions used to value employee stock purchase rights	Weighted-average assumptions to value employee stock purchase rights under the Black-Scholes model were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 2.00 0.50 - 1.00 0.50 - 2.00 Expected volatility 34% - 39% 35% - 55% 34% - 39% 35% - 55% Risk free interest rate 0.60% - 1.07% 0.07% - 0.51% 0.60% - 1.07% 0.07% - 0.51%
Schedule of stock-based awards granted in the consolidated statements of operations	The total stock-based compensation the Company recognized for stock-based awards in the consolidated statements of operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Cost of revenue $ 313 $ 431 $ 860 $ 1,024 Research and development 1,329 1,576 3,082 4,287 Sales and marketing 1,566 2,505 4,361 6,336 General and administrative 1,756 1,903 4,658 5,118 Total stock-based compensation $ 4,964 $ 6,415 $ 12,961 $ 16,765 The following table presents stock-based compensation expense by award-type: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Stock Options $ 652 $ 1,336 $ 2,355 $ 3,667 Restricted Stock Units 3,945 4,353 9,408 11,044 Employee Stock Purchase Plan 367 726 1,198 2,054 Total stock-based compensation $ 4,964 $ 6,415 $ 12,961 $ 16,765

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net Income (Loss) per Share	The following table presents the computation of basic and diluted net loss per share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except for share and per share data) Numerator: Net loss $ (6,612 ) $ (9,712 ) $ (19,504 ) $ (29,647 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 53,683,727 50,818,710 53,070,863 49,920,630 Net loss per share: Basic and diluted $ (0.12 ) $ (0.19 ) $ (0.37 ) $ (0.59 )
Schedule of Antidilutive Securities Excluded from the Computation of Diluted Net Loss Per Share	The Company excluded the following period-end outstanding common stock equivalents from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of September 30, 2017 2016 Shares of common stock issuable under the Equity Incentive Plan 9,254,272 11,557,330 Employee Stock Purchase Plan 431,153 392,029 Total 9,685,425 11,949,359

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of total revenue by geographic region	The following table represents the Company's revenue based on the billing address of the respective channel partners: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Americas $ 22,613 $ 25,732 $ 75,672 $ 78,777 Europe, Middle East and Africa 11,141 10,538 31,371 34,695 Asia Pacific 3,314 4,099 8,676 14,656 Total revenues $ 37,068 $ 40,369 $ 115,719 $ 128,128
Schedule of property and equipment, net, by location	Property and equipment, net by location is summarized as follows: September 30, December 31, 2017 2016 (in thousands) United States $ 5,929 $ 7,685 People's Republic of China 901 1,096 United Kingdom 175 227 Total property and equipment, net $ 7,005 $ 9,008

DESCRIPTION OF BUSINESS AND S26

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of New Accounting Pronouncements (Details) $ in Millions	Jan. 01, 2017USD ($)
Accounting Standards Update 2016-09 | Accumulated Deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption	$ 0.2

DESCRIPTION OF BUSINESS AND S27

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
VAD A | Sales
Revenue, Major Customer [Line Items]
Significant customer, as a percentage	17.30%	14.00%	15.40%	13.80%
VAD A | Accounts Receivable
Revenue, Major Customer [Line Items]
Significant customer, as a percentage			23.50%		22.40%
VAD B | Sales
Revenue, Major Customer [Line Items]
Significant customer, as a percentage	36.90%	19.20%	24.60%	11.00%
VAD B | Accounts Receivable
Revenue, Major Customer [Line Items]
Significant customer, as a percentage			27.50%		14.40%
VAD C [Member] | Accounts Receivable
Revenue, Major Customer [Line Items]
Significant customer, as a percentage			0.00%		15.30%

FAIR VALUE DISCLOSURE (Details)

FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 15,908	$ 25,244
Total cash equivalents and short-term investments, Amortized Cost	64,981	67,683
Total cash equivalents and short-term investments, Gross Unrealized Gain (Loss)	(9)	(31)
Total cash equivalents and short-term investments, Fair Value	64,972	67,652
Short-term Investments	49,064	42,408
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, Amortized Cost	9,911	25,244
Cash equivalents	9,911	25,244
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, Amortized Cost	9,911	25,244
Cash equivalents	9,911	25,244
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,997	0
Short-term investments	55,061	42,408
Securities, Amortized cost	55,070	42,439
Securities, Gross Unrealized Gain (Loss)	(9)	(31)
Short-term Investments	49,064	42,408
Level 2 | Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Level 2 | U.S. treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,997
Level 2 | U.S. treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	29,969	22,497
Securities, Amortized cost	29,974	22,516
Securities, Gross Unrealized Gain (Loss)	(5)	(19)
Short-term Investments	23,972	22,497
Level 2 | Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	11,147	7,341
Securities, Amortized cost	11,151	7,353
Securities, Gross Unrealized Gain (Loss)	(4)	(12)
Short-term Investments	11,147	7,341
Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	13,945	12,570
Securities, Amortized cost	13,945	12,570
Securities, Gross Unrealized Gain (Loss)	0	0
Short-term Investments	$ 13,945	$ 12,570

CONSOLIDATED BALANCE SHEET CO29

CONSOLIDATED BALANCE SHEET COMPONENTS - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Prepaid expenses and other current assets [Abstract]
Deferred Sales Commission	$ 3,489	$ 2,932
Prepaid expenses	3,113	2,032
Other	1,262	1,325
Prepaid expenses and other current assets	$ 7,864	$ 6,289

CONSOLIDATED BALANCE SHEET CO30

CONSOLIDATED BALANCE SHEET COMPONENTS - Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property and Equipment [Line Items]
Property and equipment, gross	$ 17,813		$ 17,813		$ 17,529
Less: Accumulated depreciation and amortization	(10,808)		(10,808)		(8,521)
Property and equipment, net	7,005		7,005		9,008
Capital Leased Assets, Gross	1,200		1,200		1,200
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	400		400		200
Depreciation and amortization expense	700	$ 900	2,400	$ 2,700
Computer and other equipment
Property and Equipment [Line Items]
Property and equipment, gross	1,902		$ 1,902		1,920
Estimated useful lives			3 years
Manufacturing, research and development laboratory equipment
Property and Equipment [Line Items]
Property and equipment, gross	4,543		$ 4,543		4,314
Estimated useful lives			3 years
Software and Software Development Costs [Member]
Property and Equipment [Line Items]
Property and equipment, gross	8,217		$ 8,217		8,217
Estimated useful lives			5 years
Software and Software Development Costs [Member] | Minimum
Property and Equipment [Line Items]
Estimated useful lives			2 years
Software and Software Development Costs [Member] | Maximum
Property and Equipment [Line Items]
Estimated useful lives			5 years
Office furniture and equipment
Property and Equipment [Line Items]
Property and equipment, gross	2,065		$ 2,065		2,070
Office furniture and equipment | Minimum
Property and Equipment [Line Items]
Estimated useful lives			3 years
Office furniture and equipment | Maximum
Property and Equipment [Line Items]
Estimated useful lives			7 years
Leasehold improvements
Property and Equipment [Line Items]
Property and equipment, gross	1,008		$ 1,008		$ 1,008
Construction in Progress [Member]
Property and Equipment [Line Items]
Property and equipment, gross	$ 78		$ 78

CONSOLIDATED BALANCE SHEET CO31

CONSOLIDATED BALANCE SHEET COMPONENTS Other assets (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jan. 31, 2016	Sep. 30, 2017	Dec. 31, 2016
Investment [Line Items]
Deferred sales commissions, non-current portion		$ 3,332	$ 3,115
Investment in privately held company		1,500	1,500
Other		530	485
Total other assets		$ 5,362	$ 5,100
Convertible Note [Member]
Investment [Line Items]
Convertible note	$ 1,500
Minimum holding period		12 months

CONSOLIDATED BALANCE SHEET CO32

CONSOLIDATED BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Accrued Liabilities, Current [Abstract]
Accrued compensation	$ 7,423	$ 7,230
Accrued expenses and other liabilities	1,073	1,445
Warranty liability, current portion	480	625	$ 660
Total accrued liabilities	$ 8,976	$ 9,300

CONSOLIDATED BALANCE SHEET CO33

CONSOLIDATED BALANCE SHEET COMPONENTS - Components of Deferred Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred Revenue, Reported As: [Line Items]
Deferred revenue	$ 72,493	$ 65,904
Less: current portion of deferred revenue	36,761	31,727
Non-current portion of deferred revenue	35,732	34,177
Products
Deferred Revenue, Reported As: [Line Items]
Deferred revenue	4,207	1,220
Subscription and support
Deferred Revenue, Reported As: [Line Items]
Deferred revenue	$ 68,286	$ 64,684

CONSOLIDATED BALANCE SHEET CO34

CONSOLIDATED BALANCE SHEET COMPONENTS - Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning balance	$ 930	$ 1,034	$ 975	$ 978
Charges to operations	141	142	492	515
Obligations fulfilled	(247)	(124)	(586)	(331)
Changes in existing warranty	(11)	(53)	(68)	(163)
Total product warranties	813	999	813	999
Current portion	480	660	480	660	$ 625
Non-current portion	$ 333	$ 339	$ 333	$ 339

DEBT (Details)

DEBT (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2016	Sep. 30, 2017USD ($)	Sep. 30, 2016	Sep. 30, 2017USD ($)	Sep. 30, 2016	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Line of Credit Facility, Expiration Period		2 years
Debt, non-current		$ 20,000,000		$ 20,000,000		$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		20,000,000		$ 20,000,000
Required liquidity ratio				1.25
Requitred minimum cash balance as of the last day of each month		35,000,000		$ 35,000,000
Potential increase in interest rate				5.00%
Debt, non-current		$ 20,000,000		$ 20,000,000
Revolving Credit Facility | Weighted Average
Debt Instrument [Line Items]
Interest rate during the period		3.09%	2.35%	2.85%	2.36%
Revolving Credit Facility | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Operating Leases and Purchase Commitments (Details) $ in Thousands	Sep. 30, 2017USD ($)
Operating Leases, Future Minimum Payments [Abstract]
2017 (remaining three months)	$ 364
2,018	1,809
2,019	1,417
2,020	1,084
2,021	1,081
Thereafter	1,438
Total future minimum lease payments	$ 7,193

COMMITMENTS AND CONTINGENCIES C

COMMITMENTS AND CONTINGENCIES Capital Lease Obligations (Details) $ in Thousands	Sep. 30, 2017USD ($)
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2017 (remaining three months)	$ 47
2,018	185
2,019	176
2,020	172
2,021	169
Thereafter	245
Total	994
Less: current portion of capital lease obligations	185
Non-current portion of capital lease obligations	$ 809

COMMITMENTS AND CONTINGENCIES38

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Rent Expense	$ 0.5	$ 0.5	$ 1.5	$ 1.9
Inventories
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Amount of manufacturing commitment			$ 5.4		$ 9.5

STOCKHOLDERS' EQUITY - Common S

STOCKHOLDERS' EQUITY - Common Stock Reserved for Future Issuance (Details) - shares	Sep. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Total reserved shares of common stock for future issuance	18,740,132
Employee Stock Options and Restricted Stock Units
Class of Stock [Line Items]
Options and Restricted Stock Units issued and outstanding	9,254,272
2014 Equity Incentive Plan
Class of Stock [Line Items]
Shares reserved for issuance under share-based compensation plan	7,473,429	5,116,753
Employee Stock Purchase Plan
Class of Stock [Line Items]
Shares reserved for issuance under share-based compensation plan	2,012,431

STOCK-BASED COMPENSATION - Equi

STOCK-BASED COMPENSATION - Equity Incentive Plan (Details) - 2014 Equity Incentive Plan - shares	Jan. 01, 2017	Sep. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase to shares of common stock reserved for issuance	2,612,263	2,612,263
Shares reserved for issuance under share-based compensation plan		7,473,429	5,116,753

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payments Related to Tax Withholding for Share-based Compensation		$ 600	$ 400	$ 1,070	$ 941
Shares Available for Grant
Options granted (shares)				0
Options canceled (shares)				1,436,112
Number of Shares
Beginning balance (shares)	6,219,774			6,219,774
Options granted (shares)				0
Options exercised (shares)				(409,065)
Options forfeited (shares)				(1,436,112)
Ending balance (shares)		4,374,597		4,374,597		6,219,774
Options Exercisable (shares)		3,439,751		3,439,751
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 6.15			$ 6.15
Options granted (in dollars per share)				0
Options exercised (in dollars per share)				1.73
Options forfeited (in dollars per share)				7.74
Ending balance (in dollars per share)		$ 6.04		6.04		$ 6.15
Options exercisable (in dollars per share)		$ 5.81		$ 5.81
Weighted Average Remaining Contractual Life
Weighted average remaining contractual life, period start				6 years 26 days		6 years 5 months 1 day
Weighted average remaining contractual life, period end				6 years 26 days		6 years 5 months 1 day
Weighted average life, options exercisable				5 years 6 months 26 days
Aggregate Intrinsic Value
Aggregate intrinsic value, period start	$ 6,056			$ 6,056
Aggregate intrinsic value, period end		$ 2,732		2,732		$ 6,056
Aggregate intrinsic value, options exercisable		2,732		2,732
Weighted average grant date fair value per share of stock options (in dollars per share)			$ 3.03		$ 3.15
Aggregate grant date fair value			$ 100		$ 3,000
Total intrinsic value of options exercised		0	900	1,200	1,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value		$ 700	$ 1,400	$ 2,600	$ 5,900
2014 Equity Incentive Plan
Shares Available for Grant
Beginning balance (shares)	5,116,753			5,116,753
Authorized (shares)	2,612,263			2,612,263
Options granted (shares)				0
Options canceled (shares)				1,436,112
Awards granted (shares)				(3,287,665)
Awards canceled (shares)				1,595,966
Ending balance (shares)		7,473,429		7,473,429		5,116,753
Number of Shares
Options granted (shares)				0
Options forfeited (shares)				(1,436,112)

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Aggregate grant date fair value		$ 100		$ 3,000
Payment for shares withheld for tax withholdings on vesting of restricted stock units	$ (600)	$ (400)	$ (1,070)	$ (941)
PBRSU to common stock, conversion ratio	100.00%		100.00%
Market-Based Restricted Stock Unit, Conversion Ratio	100.00%		100.00%
Common Stock
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Shares repurchased for tax withholdings on vesting of RSUs	180,345	60,638	275,922	156,186
2014 Equity Incentive Plan
Restricted Stock Units, Number of Shares [Roll Forward]
Awards granted			3,287,665
Awards canceled			(1,595,966)
Restricted Stock Units (RSUs)
Restricted Stock Units, Number of Shares [Roll Forward]
Beginning balance			4,365,670
Awards granted			3,287,665
Awards vested			(1,453,616)
Awards canceled			(1,320,044)
Ending balance	4,879,675		4,879,675
Restricted Stock Units (RSUs) | 2014 Equity Incentive Plan
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Beginning balance (in dollars per share)			$ 6.23
Awards granted (in dollars per share)	$ 4.66	$ 6.09	4.96	$ 6.23
Awards vested (in dollars per share)			5.92
Awards canceled (in dollars per share)			6.14
Ending balance (in dollars per share)	$ 5.49		$ 5.49
Aggregate grant date fair value	$ 400	$ 1,000	$ 16,300	$ 19,900
Fair value of shares vested	$ 1,700	$ 4,100	$ 6,300	$ 10,000
Restricted Stock Units (RSUs) | Vesting period, one year
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Restricted Stock Units (RSUs) | Vesting period, three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
PBRSUs
Restricted Stock Units, Number of Shares [Roll Forward]
Awards granted			378,644
Market-Based Restricted Stock Unit [Member]
Restricted Stock Units, Number of Shares [Roll Forward]
Awards granted			358,000
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract]
Awards granted (in dollars per share)			$ 4.18

STOCK-BASED COMPENSATION - Empl

STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($)	Jan. 01, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum		34.00%	35.00%	34.00%	35.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum		39.00%	55.30%	39.00%	55.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum		0.60%	0.07%	0.60%	0.07%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum		1.07%	0.51%	1.07%	0.51%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance under share-based compensation plan		2,012,431		2,012,431
Employee Stock Purchase Plan | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase to shares of common stock reserved for issuance	1,000,000
Shares reserved for issuance under share-based compensation plan		2,012,431		2,012,431
Offering period, term				1 year
Percent of fair market value of common stock the price at which common stock is purchased				85.00%
Maximum amount any participant may purchase per calendar year				$ 25,000
Maximum number of shares to be purchased per employee in any six-month period				5,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans				563,174	646,278
Minimum | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		6 months	6 months	6 months	6 months
Maximum | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		1 year	2 years	1 year	2 years

STOCK-BASED COMPENSATION - St44

STOCK-BASED COMPENSATION - Stock Repurchase Program (Details) - USD ($)	1 Months Ended	9 Months Ended		21 Months Ended
	Feb. 29, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Amount authorized under stock repurchase program	$ 10,000,000
Stock repurchase program expiration date	Jun. 30, 2018
Number of shares repurchased in period		796,616	364,627	1,161,243
Value of shares repurchased in period		$ 3,000,000	$ 2,100,000	$ 5,200,000
Average cost of repurchased shares (in usd per share)		$ 3.80	$ 5.87	$ 4.45
Remaining amount available for repurchases under the program		$ 4,800,000		$ 4,800,000

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation Assumptions (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		5 years 10 months 6 days		5 years 9 months 11 days
Expected volatility		53.18%		55.09%
Risk free interest rate		1.15%		1.49%
Market-Based Restricted Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			46.36%	53.00%
Risk free interest rate			1.45%	1.07%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	34.00%	35.00%	34.00%	35.00%
Expected volatility, maximum	39.00%	55.30%	39.00%	55.30%
Risk free interest rate, minimum	0.60%	0.07%	0.60%	0.07%
Risk free interest rate, maximum	1.07%	0.51%	1.07%	0.51%
ESPP | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months	6 months	6 months
ESPP | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	1 year	2 years	1 year	2 years

STOCK-BASED COMPENSATION - St46

STOCK-BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 4,964	$ 6,415	$ 12,961	$ 16,765
Employee Stock Option
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	652	1,336	2,355	3,667
Unrecognized stock-based compensation expense	3,100		$ 3,100
Period of recognition of unrecognized stock-based compensation expense			1 year 7 months 10 days
Restricted Stock Units (RSUs)
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	3,945	4,353	$ 9,408	11,044
Unrecognized stock-based compensation expense	22,100		$ 22,100
Period of recognition of unrecognized stock-based compensation expense			2 years 4 days
ESPP
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	367	726	$ 1,198	2,054
Unrecognized stock-based compensation expense	300		$ 300
Period of recognition of unrecognized stock-based compensation expense			2 months 1 day
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	313	431	$ 860	1,024
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,329	1,576	3,082	4,287
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,566	2,505	4,361	6,336
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,756	$ 1,903	$ 4,658	$ 5,118

NET LOSS PER SHARE - Calculatio

NET LOSS PER SHARE - Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net loss	$ (6,612)	$ (9,712)	$ (19,504)	$ (29,647)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted	53,683,727	50,818,710	53,070,863	49,920,630
Basic (in dollars per share)	$ (0.12)	$ (0.19)	$ (0.37)	$ (0.59)

NET LOSS PER SHARE - Antidiluti

NET LOSS PER SHARE - Antidilutive Securities (Details) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the diluted per share calculation	9,685,425	11,949,359
Shares of common stock issuable under the Equity Incentive Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the diluted per share calculation	9,254,272	11,557,330
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the diluted per share calculation	431,153	392,029

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax provision	$ (75)	$ (85)	$ (369)	$ (298)

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			1
Number of Reportable Segments | segment			1
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net revenues	$ 37,068	$ 40,369	$ 115,719	$ 128,128
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net revenues	22,613	25,732	75,672	78,777
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net revenues	11,141	10,538	31,371	34,695
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net revenues	3,314	4,099	8,676	14,656
Geographic Concentration Risk | United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from sales	$ 21,000	$ 24,000	$ 70,100	$ 74,200

SEGMENT INFORMATION - Property,

SEGMENT INFORMATION - Property, Plant, and Equipment by Geographic Region (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Property and equipment, net	$ 7,005	$ 9,008
United States
Segment Reporting Information [Line Items]
Property and equipment, net	5,929	7,685
People's Republic of China
Segment Reporting Information [Line Items]
Property and equipment, net	901	1,096
United Kingdom
Segment Reporting Information [Line Items]
Property and equipment, net	$ 175	$ 227

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Nov. 01, 2017	Sep. 30, 2017	Feb. 29, 2016
Subsequent Event [Line Items]
Amount authorized under stock repurchase program			$ 10,000,000
Remaining amount available for repurchases under the program		$ 4,800,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Amount authorized under stock repurchase program	$ 20,000,000
Remaining amount available for repurchases under the program	$ 14,800,000